8-K: Semler Scientific Announces Preliminary Q4 2024 Results and Significant Bitcoin Gains

Semler Scientific reports preliminary unaudited Q4 2024 financial results, including revenue between $12.1 million and $12.5 million, and a significant unrealized gain from Bitcoin holdings of approximately $28.9 million.

Summary

• Semler Scientific has released preliminary unaudited financial results for the fourth quarter of 2024.
• Revenues are estimated to be between $12.1 million and $12.5 million.
• Income from operations is projected to be between $3.4 million and $3.7 million.
• The company reported an unrealized gain of approximately $28.9 million from the change in fair value of its Bitcoin holdings.
• As of December 31, 2024, Semler Scientific had approximately $9.0 million in cash, restricted cash, and cash equivalents.
• As of January 17, 2025, Semler Scientific held 2,321 bitcoins, acquired for $191.9 million at an average price of $82,689 per bitcoin, including fees and expenses.
• Full financial results for Q4 and the year ended December 31, 2024, along with an update on Bitcoin holdings, will be released on February 18, 2025.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the reported revenue and significant unrealized gain from Bitcoin holdings. However, the preliminary nature of the results and the inherent risks associated with Bitcoin temper the overall sentiment.

Positives

• The company anticipates income from operations between $3.4 million and $3.7 million for Q4 2024.
• A significant unrealized gain of approximately $28.9 million is attributed to the change in fair value of Bitcoin holdings.

Negatives

• The financial results are preliminary and unaudited, subject to change upon completion of the audit.
• Final results may differ from the preliminary estimates due to the completion of financial closing procedures, the annual audit process, and changes in facts, circumstances, or assumptions.

Risks

• The final financial results may differ from the preliminary unaudited information.
• Investing in Bitcoin carries risks, including Bitcoin's price volatility.
• The company's Bitcoin treasury strategy may be subject to risks detailed in Semler Scientific's filings with the SEC.

Future Outlook

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.

Management Comments

• 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.

Industry Context

Semler Scientific's investment in Bitcoin as a treasury asset is a notable strategy, differentiating it from many healthcare technology companies. The success of this strategy is closely tied to the performance of Bitcoin, adding a layer of financial risk and potential reward beyond its core healthcare business.

Comparison to Industry Standards

• It's difficult to directly compare Semler Scientific's Bitcoin strategy to industry standards as it is not a common practice among healthcare technology companies.
• However, companies like MicroStrategy have adopted similar Bitcoin treasury strategies, and their performance could be a benchmark for Semler Scientific's approach.
• In terms of revenue and income from operations, Semler Scientific's performance can be compared to other small-cap healthcare technology companies with similar product offerings, such as those focused on diagnostic testing and cardiovascular health.

Stakeholder Impact

• Shareholders will be interested in the final financial results and the performance of the Bitcoin treasury strategy.
• Employees may be affected by the company's financial performance and strategic decisions.
• Healthcare providers using Semler Scientific's products will be interested in the company's continued innovation and financial stability.

Next Steps

• Semler Scientific will release full financial results for Q4 and the year ended December 31, 2024, on February 18, 2025.
• A conference call will be hosted by Dr. Murphy-Chutorian on February 18, 2025, at 4:30 pm ET.

Key Dates