Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Semler Scientific Inc (SMLR, Financial) has successfully acquired 3,808 bitcoins, valued at approximately $400 million, making it the fourth largest bitcoin treasury company in the US.
- The company achieved a 152.8% positive bitcoin yield since adopting bitcoin as its primary treasury reserve asset, resulting in significant gains.
- Semler Scientific Inc (SMLR) has ambitious plans to further increase its bitcoin holdings with a new $500 million ATM program.
- The company is diversifying its customer base and introducing additional FDA-cleared products in the cardiovascular space, which shows potential for future growth.
- Despite challenges, the company's stock has appreciated 64% in less than 12 months, outperforming the S&P 500's 9% increase.
Negative Points
- Total revenues in Q1 2025 were $8.8 million, down about 44% compared to the first quarter of 2024.
- Operating expenses in Q1 2025 increased significantly to $39.9 million, including a $29.8 million contingency reserve related to a DOJ settlement.
- The company reported a net loss of $64.7 million for Q1 2025, compared to a net income of $6.1 million in Q1 2024.
- There was a net unrealized loss of $41.8 million from the change in fair value of bitcoin holdings, introducing volatility to reported net income.
- The healthcare business faced pressure from CMS payment changes, impacting revenue and requiring strategic adjustments to maintain operations.
Q & A Highlights
Q: What are your plans this year for accumulating more bitcoin?
A: Eric Semler, Independent Chairman of the Board, stated that the company has extremely ambitious plans to accretively acquire more bitcoin. They aim to aggressively increase their bitcoin stockpile, currently valued at close to $400 million, and are utilizing a recently authorized $500 million ATM to achieve this. They are confident in accessing additional financing sources to buy more bitcoin, inspired by MicroStrategy's success in the market.
Q: What's driving the underlying trends in the business, and what do you expect for 2025?
A: Jennifer Herrington, Chief Operating Officer, explained that despite government decisions affecting payment for risk adjustment for PAD, the company continues to see ongoing testing and customer base additions, albeit at decreased volumes. The priority for 2025 is to minimize declines in QuantaFlo revenue while supporting and growing operations related to other cardiovascular disease states. They aim to diversify and expand their customer base and target new markets.
Q: How did the financial results for Q1 2025 compare to the previous year?
A: Renae Cormier, Chief Financial Officer, reported that total revenues in Q1 2025 were $8.8 million, down about 44% compared to Q1 2024. Operating expenses increased significantly due to unusual items, including a $29.8 million contingency reserve related to a DOJ settlement. The net loss for Q1 2025 was $64.7 million, compared to a net income of $6.1 million in Q1 2024.
Q: What impact did bitcoin holdings have on the financial results?
A: Renae Cormier noted that other expenses included a net unrealized loss of $41.8 million from the change in fair value of bitcoin holdings. This introduced volatility into reported net income but did not impact cash flow from operations. The net unrealized loss on bitcoin holdings was $17 million as of March 31, 2025, but could have been a gain if bitcoin prices were higher.
Q: What are the strategic priorities for Semler Scientific moving forward?
A: The company emphasized its ongoing commitment to executing its bitcoin treasury strategy and health care business. They plan to manage the health care business to generate cash for general corporate purposes, including purchasing more bitcoin. The focus remains on maintaining their position at the forefront of medical and financial freedom.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
