Semler Scientific Reports 17% Revenue Decline, Net Income Increase in Q3 2024

Semler Scientific, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, revenues were $13.5 million, down 17% from $16.3 million in Q3 2023. The decrease in revenue was attributed to the introduction of volume pricing tiers for large customers and changes in the Centers for Medicare & Medicaid Services (CMS) rate announcements. For the nine months ended September 30, 2024, total revenues reached $43.9 million, a decrease of 17% from $53.1 million in the same period in 2023.

Despite the revenue decline, Semler reported a slight increase in net income for Q3 2024, which was $5.6 million, compared to $5.5 million in Q3 2023. This resulted in earnings per share (EPS) of $0.80 for the third quarter of 2024, down from $0.82 in the prior year. However, for the nine months ended September 30, 2024, net income fell to $11.7 million, down 29% from $16.4 million in the same period in 2023, leading to an EPS of $1.68, compared to $2.44 in the previous year.

Operating expenses for Q3 2024 totaled $8.4 million, a decrease of 16% from $10.0 million in Q3 2023. The reduction in expenses was primarily due to lower sales and marketing costs, which decreased by 13% to $3.0 million. General and administrative expenses also fell by 15% to $3.1 million. For the nine-month period, total operating expenses decreased by 21% to $26.5 million.

As of September 30, 2024, Semler reported total current assets of $21.5 million, a significant decrease from $65.9 million at the end of 2023. However, total assets increased to $92.2 million, up from $78.1 million at the end of 2023, while stockholders' equity rose to $85.4 million from $71.8 million.

In terms of strategic developments, Semler has adopted a bitcoin treasury strategy, holding 1,018 bitcoins valued at approximately $64.5 million as of September 30, 2024. The company plans to continue purchasing bitcoin, viewing it as a long-term capital asset. This strategy has introduced volatility to the company's financial results, with unrealized gains and losses impacting reported earnings.

The company also announced a shelf registration statement for offering up to $150 million in various securities and an "at the market" offering prospectus for the sale of up to $50 million of common stock. During the third quarter, Semler sold 86,734 shares of common stock, generating net proceeds of $2.5 million.