Semler Scientific® Announces Select Preliminary Unaudited Fourth Quarter 2024 Financial Results and Significant Unrealized Gain from Change in Fair Value of Bitcoin Holdings

Rhea-AI Summary

Semler Scientific (SMLR) released preliminary unaudited Q4 2024 financial results, highlighting revenues between $12.1-12.5 million and operating income of $3.4-3.7 million. The company reported a significant unrealized gain of approximately $28.9 million from changes in bitcoin holdings' fair value.

As of January 17, 2025, Semler holds 2,321 bitcoins, acquired for $191.9 million at an average price of $82,689 per bitcoin, including fees. The company's cash, restricted cash, and cash equivalents stood at approximately $9.0 million as of December 31, 2024.

Complete Q4 and full-year 2024 financial results will be announced after market close on February 18, 2025, followed by a conference call with management.

Positive

• Significant unrealized gain of $28.9M from bitcoin holdings
• Q4 2024 revenue projected at $12.1-12.5M
• Operating income of $3.4-3.7M in Q4 2024
• Substantial bitcoin position of 2,321 BTC

Negative

• Large bitcoin exposure ($191.9M) creates significant cryptocurrency market risk
• Relatively low cash position ($9.0M) compared to bitcoin investment

Insights

Financial Analyst

The preliminary Q4 2024 results reveal a complex financial picture for Semler Scientific. The core business shows revenues of $12.1-12.5M and operating income of $3.4-3.7M, representing healthy operating margins of approximately 28-30%. However, the most striking aspect is their substantial bitcoin treasury strategy.

The company's 2,321 BTC holdings, acquired for $191.9M, represent a remarkable 32% of their market capitalization. This significant allocation to cryptocurrency introduces both opportunities and risks. The unrealized gain of $28.9M demonstrates the potential upside, but it's important to note that this volatility works both ways.

The cash position of $9.0M appears relatively modest given their operational scale, suggesting an aggressive approach to treasury management. This strategy represents a departure from traditional medical technology company practices, where maintaining substantial cash reserves for R&D and operational flexibility is common.

From a risk management perspective, the concentration of assets in bitcoin warrants careful consideration. While the unrealized gains are significant, they're subject to high volatility and regulatory uncertainties. The company's core business fundamentals remain solid, but the bitcoin position has effectively transformed Semler into a hybrid entity - part medical technology company and part bitcoin investment vehicle.

SANTA CLARA, Calif., Jan. 23, 2025 /PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases, today announced select preliminary unaudited fourth quarter 2024 financial results and BTC holdings. Semler Scientific will report full financial results for the fourth quarter and full year ended December 31, 2024, as well as provide an update on its Bitcoin holdings after the close of U.S. financial markets on Tuesday, February 18, 2025.

Select Preliminary Unaudited Fourth Quarter 2024 Results

• Revenues of $12.1 million to $12.5 million
• Income from operations of $3.4 million to $3.7 million
• Unrealized gain from change in fair value of bitcoin holdings of approximately $28.9 million
• Cash, restricted cash and cash equivalents at December 31, 2024 of approximately $9.0 million

"We are pleased to report these preliminary unaudited numbers and significant unrealized gain from our bitcoin holdings," said Doug Murphy-Chutorian, M.D., chief executive officer of Semler Scientific. "We are excited to continue executing on our bitcoin treasury strategy."

The preliminary unaudited financial information presented in this press release is based on Semler Scientific's current expectations and may be adjusted as a result of, among other things, completion of customary annual audit procedures. It is possible that the final results may differ from the preliminary results between now and when results are finalized.

BTC Holdings

As of January 17, 2025, Semler Scientific held 2,321 bitcoins, which were acquired for an aggregate purchase price of $191.9 million at an average purchase price of $82,689 per bitcoin, inclusive of fees and expenses.

Fourth Quarter and Full Year Financial Results Conference Call

Semler Scientific will report full financial results for the fourth quarter and full year ended December 31, 2024, as well as provide an update on its Bitcoin holdings after the close of U.S. financial markets on Tuesday, February 18, 2025. Dr. Murphy-Chutorian will host a conference call at 4:30 pm ET the same day. Eric Semler, chairman, Renae Cormier, chief financial officer, and Jennifer Oliva-Herrington, chief operating officer, will join him on the call.

Please submit questions prior to the start of the call to ir@semlerscientific.com. 

Semler Scientific encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10196221/fe5ab5166e. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.

Those without internet access or unable to pre-register may dial in by calling:
Domestic callers: 833-816-1161
International callers: 412-317-0717

Please specify to the operator that you would like to join the "Semler Scientific Call." The conference call will be archived on Semler Scientific's website at www.semlerscientific.com. 

Forward-Looking Statements

This press release contains "forward-looking" statements. Such statements can be identified by, among other things, the use of forward-looking language such as the words "believe," "goal," "may," "will," "intend," "expect," "anticipate," "estimate," "project," "would," "could" or words with similar meaning or the negatives of these terms or by the discussion of strategy or intentions. The forward-looking statements in this release include express or implied statements about Semler Scientific's select preliminary unaudited fourth quarter 2024 financial results; acquiring and holding Bitcoin; and its healthcare business, among others. Such forward-looking statements are subject to a number of risks and uncertainties that could cause Semler Scientific's actual results to differ materially from those discussed here, such as risks related to completion of Semler Scientific's financial close and/or the annual audit process; investing in Bitcoin, including Bitcoin's volatility; implementing a Bitcoin treasury strategy; along with those other risks related to Bitcoin, its healthcare business and the other risk factors detailed in Semler Scientific's filings with the Securities and Exchange Commission. These forward-looking statements involve assumptions, estimates, and uncertainties that reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this press release are qualified in their entirety by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date of this press release and Semler Scientific assumes no obligation to update or revise these statements unless otherwise required by law.

About Semler Scientific, Inc.:

Semler Scientific, Inc. is a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases. Its flagship product, QuantaFlo®, which is patented and cleared by the U.S. Food and Drug Administration (FDA), is a rapid point-of-care test that measures arterial blood flow in the extremities. The QuantaFlo test aids in the diagnosis of cardiovascular diseases, such as peripheral arterial disease (PAD), and Semler Scientific is seeking a new 510(k) clearance for expanded indications. QuantaFlo is used by healthcare providers to evaluate their patient's risk of mortality and major adverse cardiovascular events (MACE). Semler Scientific also invests in Bitcoin and has adopted Bitcoin as its primary treasury asset.

INVESTOR CONTACT:

Renae Cormier
Chief Financial Officer
ir@semlerscientific.com 

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SOURCE Semler Scientific, Inc.

FAQ

What is Semler Scientific's (SMLR) unrealized gain from Bitcoin holdings in Q4 2024?

Semler Scientific reported an unrealized gain of approximately $28.9 million from changes in the fair value of its bitcoin holdings in Q4 2024.

How many bitcoins does SMLR own as of January 2025?

As of January 17, 2025, Semler Scientific holds 2,321 bitcoins, purchased at an average price of $82,689 per bitcoin.

What are SMLR's preliminary Q4 2024 revenue figures?

Semler Scientific's preliminary Q4 2024 revenues are between $12.1 million and $12.5 million.

What is SMLR's total investment in Bitcoin as of January 2025?

Semler Scientific's total investment in Bitcoin is $191.9 million, including fees and expenses.

What is SMLR's cash position as of December 31, 2024?

Semler Scientific reported approximately $9.0 million in cash, restricted cash and cash equivalents as of December 31, 2024.

When will SMLR release full Q4 2024 financial results?

Semler Scientific will release full Q4 and full-year 2024 financial results after market close on February 18, 2025.