Semler Scientific plunges after first quarterly contraction in over a year
CharlieAJA/iStock via Getty Images
Semler Scientific (SMLR -27.4%) has shed over a fifth on Tuesday to record the biggest intraday loss in nearly four months after the healthcare equipment maker reported worse than expected results for Q4 2021.
Marking the first revenue contraction in five quarters, the Q4 2021 revenue fell ~4% YoY to reach $11.5M. However, full-year revenue climbed ~37% YoY to $53.0M from ~8% YoY decline recorded in 2020.
Net income, for the quarter, fell ~72% YoY to $1.5M and for the full year, surged ~23% YoY to $17.2M, while cash at the end of the year stood at $37.3M compared to $22.1M a year ago.
In Q4 2021, the fixed-fee license revenues rose ~13% YoY to ~$7.9M, while variable-fee license revenues dropped ~23% YoY to $3.5M.
Ahead of the earnings call, chief executive Doug Murphy-Chutorian explained the reasons for the underperformance. "In 2021 as compared to 2020, we experienced a timing shift in the home-testing market (fee-per-test), which led to first half revenue being greater than the second half of 2021," he said.
While the company would not issue a formal guidance, the management cited preliminary unaudited data to indicate that the monthly fixed-fee license revenues and variable-fee license revenues for January 2022 rose ~13% YoY and ~6% YoY, respectively.
“Overall, we believe annual revenue will continue to grow in 2022, because of increased numbers of installations of our product, more usage of our product and recurring revenue from the licensing businesses,” Dennis Rosenberg, Semler’s (NASDAQ:SMLR) Chief Marketing Officer noted at the earnings call.