Semler Scientific Reports Fourth Quarter and Full Year 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 months and year ended December 31, 2022.

"Our QuantaFlo(r) product continues to expand its penetration due to the clinical benefits of earlier recognition of vascular disease," said Doug Murphy-Chutorian, M.D., chief executive officer of Semler Scientific. "In 2022, two pivotal studies using our QuantaFlo(r) test for peripheral arterial disease under real world conditions appeared in peer-reviewed journals illustrating the benefits of both in-home and outpatient screening."

Semler Scientific announced that Doug Murphy-Chutorian, M.D. has informed the board of directors of his intention to step down from his position as chief executive officer of Semler Scientific and assist for a transition period. He will continue to serve as a member of the board of directors at least through the remainder of his 2024 term.

Semler Scientific's board of directors is pleased to announce the appointment of Wayne T. Pan, M.D., Ph.D., M.B.A. as CEO to succeed Dr. Murphy-Chutorian. Dr. Pan's appointment as CEO will be effective from April 3, 2023 and Dr. Pan will remain a member of our board of directors.

FINANCIAL RESULTS

For the year ended December 31, 2022, compared to the corresponding period of 2021, Semler Scientific reported:

Revenue of $56.7 million, an increase of $3.7 million, or 7%, compared to $53.0 million.

Fixed fee software license revenues were $34.0 million, an increase of $3.5 million, or 11%, compared to $30.5 million.

Variable fee software license revenues were $21.3 million, a decrease of $0.2 million, or 1%, compared to $21.5 million.

Sales of other products were $1.4 million, an increase of $0.4 million, or 42%, compared to $1.0 million.

Cost of revenues of $4.2 million, a decrease of $1.9 million, or 31%, compared to $6.1 million. As a percentage of revenues, cost of revenues decreased to 8%, compared to 12%.

Total operating expenses of $39.5 million, which includes cost of revenues, an increase of $5.9 million, or 18%, compared to $33.6 million. As a percentage of revenues, operating expenses increased to 70% compared to 63%.

Pre-tax net income of $17.7 million, a decrease of $1.8 million, or 9%, compared to $19.5 million.

Income tax expense of $3.4 million, or an effective tax rate of 19%, compared to $2.2...