Semler Reports 3rd Quarter and Year-to-Date 2022 Financial Results.

SANTA CLARA, Calif: Semler Scientific, Inc. (Nasdaq: SMLR), a company that provides technology solutions to improve the clinical effectiveness and efficiency of healthcare providers, today reported financial results for the three and nine months ended September 30, 2022.

"We achieved a record cash position during the third quarter of 2022 due to continued profitability," said Doug Murphy-Chutorian, M.D., chief executive officer of Semler Scientific. "Our guidance has been updated for both revenues and operating expenses, such that the net result is to raise expected income from operations, compared to our previous guidance of revenues and operating expenses."

FINANCIAL RESULTS

For the quarter ended September 30, 2022, compared to the corresponding period of 2021, Semler Scientific reported:

Revenue of $14.0 million was unchanged

Fixed fee software license revenues were $8.6 million, an increase of $0.8 million, or 10%, compared to $7.8 million

Variable fee software license revenues were $4.9 million, a decrease of $1.0 million, or 16%, compared to $5.9 million

Sales of other products were $0.5 million, an increase of $0.2 million, or 79%, compared to $0.3 million

Cost of revenues of $1.1 million, a decrease of $0.3 million or 18%, compared to $1.4 million. As a percentage of revenues, cost of revenues decreased to 8%, compared to 10%

Total operating expenses, which includes cost of revenues, of $9.6 million, an increase of $0.9 million, or 10%, compared to $8.7 million. As a percentage of revenues, operating expenses increased to 68%, compared to 63%

Pre-tax net income of $4.6 million, a decrease of $0.7 million, or 12%, compared to $5.3 million

Income tax expense of $0.9 million, or an effective tax rate of 20%, compared to $1.1 million, or an effective tax rate of 21%

Net income of $3.7 million, or $0.55 per basic share and $0.46 per diluted share, a decrease of $0.5 million, or 11%, compared to $4.2 million, or $0.61 per basic share and $0.51 per diluted share

Semler Scientific's two largest customers (including their affiliates) comprised 41% and 26% of quarterly revenues.

For the nine months ended September 30, 2022, compared to the corresponding period of 2021, Semler Scientific reported:

Revenue of $42.9 million, an increase of $1.4 million, or 3%, compared to $41.5 million

Fixed fee software license revenues were $25.1 million, an increase of $2.4 million, or 11%, compared to $22.7 million

Variable fee software license revenues were...