PORTLAND, Ore., Feb. 19, 2016 /PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), an emerging growth company providing technology solutions to improve the clinical effectiveness and efficiency of healthcare insurers and physician groups, today reported financial results for the fourth quarter and year ended December 31, 2015.
“Semler reported outstanding year over year revenue growth of 93% and sequential quarter over quarter revenue growth of 88%, albeit with a net loss and low cash position,” said Doug Murphy-Chutorian, M.D., chief executive officer of Semler. “At the end of 2015, we implemented additional steps to further reduce our future fixed operating expenses and in early 2016, we issued promissory notes to obtain additional capital of $1,500,000,” he added. “The combination of reasonably priced capital, expense reduction and continued annual revenue growth of our QuantaFlo business are intended to help Semler achieve profitability and cash flow from operations as soon as possible with minimal shareholder dilution,” he concluded.
FINANCIAL RESULTS
Of note, WellChec, Semler’s new multi-test service offering saw increased customer contracts, both initiated and fulfilled, in the fourth quarter of 2015. It was responsible for substantial revenue growth and associated start-up costs, which impact comparisons of both cost of revenue and operating expense from corresponding periods as such service was not offered in the prior year period.
In the three months ended December 31, 2015, compared to the corresponding period of 2014, Semler had:
- Revenue of $2,934,000, an increase of $1,879,000, compared to $1,055,000
- Cost of revenue of $1,960,000, an increase of $1,772,000, from $188,000
- Total operating expense, which includes cost of revenue, of $7,140,000, an increase of $4,908,000 compared to $2,232,000
- Net loss of $4,208,000, or $0.84 per share, an increase of $3,008,000, compared to a net loss of $1,200,000, or $0.25 per share
In the year ended December 31, 2015, compared to the corresponding period of 2014, Semler had:
- Revenue of $7,001,000, an increase of $3,366,000, compared to $3,635,000
- Cost of revenue of $2,847,000, an increase of $2,155,000, compared to $692,000
- Total operating expense, which includes cost of revenue, of $15,420,000, an increase of $7,444,000, compared to $7,976,000
- Net loss of $8,501,000, or $1.72 per share, an increase of $3,986,000, compared to a net loss of $4,515,000, or $1.10 per share
- Stock compensation expense of $2,605,000 was responsible for $0.53 per share, or 86% of the year over year increase in net loss per share
- During 2015, we issued and sold an aggregate of 400,500 shares of our common stock for an aggregate cash purchase price of $1,374,000
In the three months ended December 31, 2015, compared to the three months ended September 30, 2015, Semler had:
- Revenue of $2,934,000, an increase of $1,372,000, compared to $1,562,000
- Cost of revenue of $1,960,000, an increase of $1,575,000 from $385,000
- Total operating expense, which includes cost of revenue, of $7,140,000, an increase of $4,027,000, compared to $3,113,000
- Net loss of $4,208,000, or $0.84 per share, an increase of $2,628,000, compared to a net loss of $1,580,000, or $0.32 per share
- Cash of $405,000, a decrease of $1,520,000, compared to $1,925,000
As noted above, in 2016 Semler issued promissory notes to obtain $1,500,000 of additional capital.
2015 Highlights
In 2015, Semler achieved its major goal of revenue expansion. Other highlights included:
- The launch of QuantaFlo, the next generation product for testing for vascular disease. Semler believes that customers are attracted to its enhanced performance features, capabilities and expanded marketing labeling.
- The launch of WellChec, Semler’s new multi-test service offering.
- Expansion of Semler’s established base of clients among the 25 largest health insurance companies in the country.
- At year end, reductions in operating expense were put in place in order to help drive towards the goal of profitability and positive cash flow from operations as soon as practicable.
In 2016, revenue from QuantaFlo is expected to continue to grow on a quarterly basis due to number of installations, average pricing and the recurring revenue business model. Semler also plans to limit WellChec business until later in the year, which should lessen current operating expenses and improve cash flow until that time. Because Semler does not give financial guidance, the magnitude of these changes and progress towards such an operating plan will be reported during the quarterly earnings releases.
“We have enhanced the rate of our revenue trajectory largely as a result of the investment made to create and launch our WellChec service,” said Dr. Murphy-Chutorian. “We have furthered our goal to aid physicians and insurance plans to evaluate their patients earlier and more comprehensibly, which may in turn lead to more disease prevention and lower healthcare costs,” he added.
Notice of Conference Call
Semler will host a conference call at 11 a.m. EST, Friday, February 19, 2016. The call will address year-end and fourth quarter results and will provide a business update on Semler’s market outlook and strategies for the near-term future.
The conference call may be accessed by dialing (877) 359-9508 for domestic callers and (224) 357-2393 for international callers.
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