Q1 2024 Semler Scientific Inc Earnings Call
Unknown Executive: Good afternoon, and welcome to the Semler Scientific 2024 First Quarter Financial Results Conference Call. All participants will be in a listen-only mode.
Good afternoon, and welcome to the similar scientific 'twenty 'twenty four first quarter financial results Conference call.
Unknown Executive: All participants will be in a listen only mode.
Unknown Executive: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2.
Unknown Executive: Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
Unknown Executive: After todays presentation, there will be an opportunity to ask questions.
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Unknown Executive: Please note this event is being recorded. Before we begin, Semler Scientific needs to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. These include statements regarding the expectations for expansion of the business and the development and marketing of additional products, including receipt and time of an additional 501k clearance for Quantaflow and investment in emerging growth opportunities.
Unknown Executive: Please note this event is being recorded.
Unknown Executive: Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed. Those risks and uncertainties are described in the press release and in our SEC filings. The forward-looking statements made today are as of the date of this call, and the company does not undertake any obligation to update the forward-looking statements. If you do not have a copy of today's release, you may obtain one by visiting the Investor Relations page of the website SemlerScientific.com. Now I would like to introduce Doug Murphy, tutor, and CEO of Semler Scientific. Please go ahead. Smith.
Unknown Executive: Before we begin similar scientific needs to remind you that certain comments made during this call may constitute forward looking statements and are made pursuant to and within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 as amended.
Douglas Murphy: These include statements regarding the expectations for expansion of the business and the development and marketing of additional products, including receipt and time of an additional 501 K clearance for quanta flow and it and investment in emerging growth opportunities.
Unknown Executive: Such forward looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements.
Douglas Murphy: These risks and uncertainties are described in the press release and our SEC filings. The forward looking statements made today are as of the date of this call and the company does not undertake any obligation to update the forward looking statements.
Douglas Murphy: If you do not have a copy of today's release you may obtain one by visiting the Investor Relations page of the website similar scientific dot com.
Unknown Executive: Now I would like to introduce Doug Murphy Tutorial C E O of similar scientific please go ahead.
Douglas Murphy: Good afternoon, everyone.
Douglas Murphy: Good afternoon, everybody. And thank you for joining us on our first quarter 2024 results call. We achieved year-over-year earnings growth and ended the quarter with our highest cash flow in the history of this company. Now I'm pleased to introduce our CFO, Renae Cormier, to provide further details. Renae? Thank you, guys.
Douglas Murphy: Thank you for joining us today.
Renae Cormier: And our first quarter 2024 results.
Renae Cormier: We achieved it.
Renae Cormier: Year over year earnings growth and ended the quarter with.
Renae Cormier: Got it.
Renae Cormier: The history other than some companies now.
Renae Cormier: Pleased to introduce our CFO Rene.
Renae Cormier: Rene format to our cause.
Renae Cormier: So we don't think Rene.
Renae Cormier: Thank you, Doug. Good afternoon, everyone.
Renae Cormier: Thank you, Doug and good afternoon, everyone and thank you for being part of today's conference call.
Renae Cormier: And thank you for being part of today's conference call. Today, I'll be presenting an overview of our first quarter 2024 financial results and discussing recent corporate developments. Jennifer Oliva Herrington, our COO, will be providing information about our market developments and opportunities. Following our remarks, Doug, Jennifer, and I will be available to address any questions you may have.
Renae Cormier: I'll be presenting an overview of our first quarter 2024 financial results and discussing recent corporate development.
Renae Cormier: The first lever Harrington our C O O will be providing information about our market developments and opportunity falling all remarks, Doug Jennifer and I will be available to address any questions you may have.
Renae Cormier: As mentioned in today's earnings release, we had a very strong quarter of cash generation despite the regulatory-driven year-over-year revenue decline from our PAD products. Even with the decline in year-over-year quarterly revenues, we achieved year-over-year earnings growth in the first quarter of 2024 compared to the first quarter of 2023. This achievement is a testament to the hard work of our employees, who adjusted spending accordingly to changes in market conditions. We expect that our revenues will reaccelerate if we are successful in our efforts to obtain a new 510K clearance from the FDA that would allow us to market our heart dysfunction products. Now for the details of our first quarter results.
Renae Cormier: As mentioned in today's earnings release, we had a very strong quarter of cash generation. Despite the regulatory driven year over year revenue decline from our PD product.
Renae Cormier: Even with the decline in year over year quarterly revenues, we achieved year over year earnings growth in the first quarter 2024 compared to the first quarter of 2023.
Renae Cormier: This achievement is a testament to the hard work of our team who adjusted spending accordingly to changes in market conditions, we expect that our revenues will reaccelerate. If we are successful in our efforts to obtain a new five 10-K clearance from the FDA that would allow us to market.
Renae Cormier: Our heart dysfunction product.
Renae Cormier: Total revenues in Q1 2024 were $15.9 million, a decrease of 13% compared to the first quarter of 2023. Our revenues are driven by continued sales of QuantiFlow to existing and new customers to test for peripheral arterial disease, or PAD. Six fee revenues were $7.1 million, a decrease of 24% year over year. Variable fee revenues were $8 million, a decrease of 6% year over year. Equipment and other revenues were $0.8 million, an increase of 140% year-over-year.
Renae Cormier: Now for the details of our first quarter result.
Renae Cormier: Total revenues in Q1, 2024 were $15 $9 million, a decrease of 13% compared to the first quarter of 2023 or.
Renae Cormier: Our revenues are driven by continued sale of quanta flow to existing and new customers to test for peripheral arterial disease or P. E D.
Renae Cormier: Fee revenues were $7 1 million, a decrease of 24% year over year.
Renae Cormier: Variable fee revenues were 8 million a decrease of 6% year over year.
Renae Cormier: Equipment and other revenues were 0.8 million, an increase of 140% year over year.
Renae Cormier: Equipment revenues are primarily sales to variable fee customers, and they remain strong versus historical levels. In March 2023, the Centers for Medicare and Medicaid Services, or CMS, announced the three-year phase-in of the removal of the HCC code relating to PAD without complications from the Medicare Advantage risk adjustment model.
Renae Cormier: Equipment revenues are primarily held to variable fee customers and they remain strong versus historical level.
Renae Cormier: In March 2023, the centers for Medicare and Medicaid services, or CMS announced the three year phase in of the removal of the H P. C code relating to P. E D without complication from the Medicare advantage risk adjustment model.
Renae Cormier: 2024 marks the first year of the three-year phase-in of the decreased economics to our managed care customers. For the remainder of 2024, we anticipate our revenues could follow a similar cadence that we saw in 2023, with H1 more heavily weighted versus H2. We are encouraged by the continued testing for PAD, given the importance of early diagnosis and treatment that can lead to improved long-term clinical outcomes for patients.
Renae Cormier: 2024 marks the first year of the three year phase in of the decreased economics to our managed care customers.
Renae Cormier: For the remainder of 2024, we anticipate our revenues could follow a similar cadence that we saw in 2023 with H, one more heavily weighted versus H two.
Renae Cormier: We are encouraged by the continued testing for P. D. Given the importance of early diagnosis and treatment that can lead to improve long term clinical outcome for patients.
Renae Cormier: In the first quarter of 2024, our three largest customers, including their related affiliates, comprised 45%, 25%, and 11% of quarterly revenue. Operating expenses in Q1 2024, which includes cost of revenue, were $8.9 million, a decrease of 25% year-over-year. As a percentage of revenue, operating expenses decreased to 56% compared to 66% in 2023 due to continued expense control after our strategic corporate streamlining announced in July last year. We have an outstanding group of leaders and employees here at Semler that remain diligent in ensuring we're focused on cost discipline without sacrificing the high service our customers have come to expect.
Renae Cormier: In the first quarter of 2020 for our three largest customers, including their related affiliate comprised 45%, 25% and 11% of quarterly revenue.
Renae Cormier: Operating expenses in Q1, 2024, which includes cost of revenue were $8 $9 million, a decrease of 25% year over year.
Renae Cormier: As a percentage of revenues operating expenses decreased to 56% compared to 66% in 2023 due to continued expense control after our strategic corporate streamlining announced in July last year.
Renae Cormier: We have an outstanding group of leaders and employees here at Daimler, but remain diligent in ensuring we're focused on cost discipline without sacrificing the high service our customers have come to expect.
Renae Cormier: We anticipate we could experience a slight uptick in expenses throughout the year as we prepare for the next phase of launching QuantaFlow with expanded use as an aid in the diagnosis of other cardiovascular diseases, which is subject to FDA clearance, which we hope to achieve in the second half of 2024. Pre-tax net income was $7.8 million compared to $6.6 million in the prior year. Net income was $6.1 million, or $0.88 per basic share and $0.78 per fully diluted share compared to $5 million, or $0.74 per basic share and $0.63 per fully diluted share, in Q1 2023. We had a record high cash balance at March 31st, 2024 of $62.9 million. Now, I'd like to turn the call over to Jennifer to provide a more in-depth discussion of our market developments and opportunities.
Renae Cormier: We anticipate we could experience a slight uptick in expenses throughout the year as we prepare for the next phase of watching quite the flow with expanded use as an aid in the diagnostic a diagnosis of other cardiovascular diseases, but it's subject to FDA clearance, which.
Jennifer: Which we hope to achieve in the second half of 2024.
Renae Cormier: Pre tax net income was $7 $8 million.
Jennifer: <unk> $6.6 million in the prior year.
Jennifer: Net income was $6 $1 million or 88 cents per basic share <unk> 78 per fully diluted share compared to $5 million or 74 cents per basic share and 63 cents per fully diluted share in Q1 2023.
Jennifer: We had a record high cash balance at March 31, 2024 of $62 9 million.
Renae Cormier: Now I'd like to turn the call over to Jennifer to provide a more in depth discussion of our market developments and opportunities.
Jennifer Oliva Herrington: Looking ahead, I'm enthusiastic about Semler's potential to support the identification of chronic diseases by our customers, which continues to burden our healthcare system. Cardiovascular disease ranks as a top concern in healthcare expenditures and global mortality, underscoring the imperative need for early identification of cardiac conditions. Our recent announcement in January marked our intent to pursue an additional 510k clearance from the FDA for Quantaflow, seeking to broaden its utility to encompass a wider array of cardiovascular diseases. We anticipate we may receive clearance with the expanded label in the second half of 2024.
Jennifer: Thank you Renee.
Jennifer: Looking ahead I'm enthusiastic about sandler has potential to support the identification of chronic diseases by our customers, which continues to burden our health care system.
Jennifer Oliva Herrington: Cardiovascular disease ranks as a top concern in health care expenditures and global mortality underscoring the imperative need for early identification of cardiac conditions.
Jennifer Oliva Herrington: Our recent announcement in January marked or intend to pursue an additional five 10-K clearance from the FDA for quantified.
Jennifer Oliva Herrington: To broaden its utility to encompass a wider array of cardiovascular diseases.
Jennifer Oliva Herrington: We anticipate we may receive clearance with the expanded label in the second half of 2024.
Jennifer Oliva Herrington: Upon achieving this regulatory milestone, our strategic focus will expand to effectively showcase this enhanced offering to our existing customer base. In the interim, our commitment remains dedicated to the promotion and selling of Quantaflow as a valuable aid in the diagnosis of PAD. This proactive approach ensures continuity, providing our customers with a trusted solution while positioning us for potential future success in the broader cardiovascular diagnostic market. Through enabling early detection of peripheral arterial disease, we are hopeful that health care providers will continue to initiate preventative management programs for chronic cardiovascular disease.
Jennifer Oliva Herrington: Achieving this regulatory milestone our strategic focus will expand to effectively showcase this enhanced offering to our existing customer base.
Jennifer Oliva Herrington: In the interim our commitment remains dedicated to the promotion and selling of quantifiable as a valuable aid in the diagnosis of P. This proactive approach ensures continuity, providing our customers with a trusted solution, while positioning us for potential future success and the broader cardiovascular diagnostic market.
Jennifer Oliva Herrington: Through enabling early detection of peripheral arterial disease, we are hopeful that health care providers will continue to initiate preventative management programs.
Jennifer Oliva Herrington: Chronic cardiovascular disease, we believe that this approach holds the potential to not only save lives, but also lower healthcare expenditures.
Jennifer Oliva Herrington: We believe that this approach holds the potential to not only save lives but also lower health care expenditure. We continue to envision a healthcare landscape where our technology assumes a central role in delivering healthier outcomes for patients while concurrently delivering substantial economic value to our customers. Our sales and marketing goals remain focused on further establishing QuantiFlow as the standard of care for PAD diagnosis, leveraging the demonstrated clinical benefits of early detection and preventative care, and to continue diversifying our customer base by adding new medical centers, expanding our reach within value-based care providers, fortifying our presence in the VA system, and growing opportunities within additional markets that will benefit from PAD testing. Now, Renae will conclude with remarks.
Renae Cormier: We continue to envision a health care landscape, where our technology. It seems the central role in delivering healthier outcomes for patients, while concurrently delivering substantial economic value to our customers.
Jennifer Oliva Herrington: Our sales and marketing goals remain focused on further establishing quantified as the standard of care for ph D diagnosis, leveraging the demonstrated clinical benefits of early detection and preventative care.
Renae Cormier: And to continue diversifying our customer base by adding new medical centers, expanding our reach within value based care providers.
Jennifer Oliva Herrington: Fortifying our presence in the VA system and growing opportunities within additional markets that will benefit from ph D. S D.
Renae Cormier: And now Renee will conclude with remarks.
Renae Cormier: To achieve this plan, we are reinvesting in emerging growth opportunities with a focus on expanding our customer base for PAD. We believe that these opportunities may hold promise and represent an exciting aspect of our company's future. Additionally, our commitment to research and development remains unwavering, as we prioritize the enhancement of existing products and data services to stay in the forefront of innovation and consistently deliver cutting-edge solutions to our customers. Our long-term vision includes extending our reach to encompass additional cardiovascular applications, reflecting our dedication to continuous expansion.
Renae Cormier: To achieve this plan, we are reinvesting in emerging growth opportunity with a focus on expanding our customer base for P. D. We believe that these opportunities may hold promise and represent an exciting aspect of our company's future. Additionally, our commitment to research and development remains unwavering as we prioritize.
Renae Cormier: Tyson enhancement of existing products and data services.
Renae Cormier: Hey in the forefront of innovation and consistently deliver cutting edge solutions to our customers.
Renae Cormier: Our long term vision includes extending our reach to encompass additional cardiovascular application, reflecting our dedication to continuous expansion.
Renae Cormier: A key strength of our technology lies in its portability and accessibility, allowing us to actively contribute to addressing health inequities prevalent in cardiovascular disease. By providing tools that can be utilized in diverse settings, we play a role in breaking down barriers, ensuring that more individuals have access to early detection and intervention. As part of our growth strategy, we are exploring inorganic growth initiatives to further diversify our product portfolio. Through strategic partnerships and exploring new opportunities, we aim to broaden our impact on the market and expand our offering.
Renae Cormier: A key strength of our technology lies in its affordability and accessibility, allowing us to actively contribute to addressing health and equity prevalent in cardiovascular disease.
Renae Cormier: By providing tools that can be utilized and diverse settings, we play a role in breaking down barriers, ensuring that more individuals have access to early detection and intervention.
Renae Cormier: As part of our growth strategy, we are exploring inorganic growth initiatives to further diversify our product portfolio through.
Renae Cormier: Through strategic partnerships and exploring new opportunities, we aim to broaden our impact on the market and expand our offerings.
Renae Cormier: We extend our appreciation for your interest in our company and for your continued support as we embark on this journey of innovation. Now, Operator, if you could please open the line, Doug, Jen, and I will be happy to address your questions.
Renae Cormier: We extend our appreciation for your interest in our company and for your continued support as we embark on this journey of innovation now operator, if you could please open the line, Doug Jen and I will be happy to address your questions.
Operator: We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble the roster. And our first question comes from Brooks O'Neill of Lake Street Capital Markets. Please go ahead.
Speaker Change: We will now begin the question and answer session.
Brooks O'Neill: To ask a question you May press Star then one on your telephone keypad.
Brooks O'Neill: If you are using a speakerphone please pick up your handset before pressing the keys.
Operator: To withdraw your question. Please press Star then two.
Operator: At this time, we will pause momentarily to assemble the roster.
Brooks O'Neill: And our first question comes from Brooks O'neil of Lake Street Capital markets. Please go ahead.
Aaron Wukmir: Hi, good afternoon, guys. This is Aaron on the line for Brooks.
Operator: Hi, Good afternoon, guys. This is Aaron on the line for Brooks, Thanks for taking our questions.
Aaron Wukmir: I'm interested in the timing and sort of the process to receive the five 10-K clearance and obviously you guys mentioned the second half of this year, but.
Aaron Wukmir: Assuming approval what are what are the sort of the next steps taken after that process.
Unknown Executive: Sure. Hi Aaron.
Aaron Wukmir: Thanks for taking our questions. You know, I'm interested in the timing and sort of the process to receive the 510k clearance. Obviously, you guys mentioned the second half of this year, but, you know, assuming approval, what are the next steps taken after that process? Sure. Hi Aaron.
Aaron Wukmir: Sure Hi, Erinn. Thanks for the question and so as we had released earlier in the year in January we did announce our intention to file for the five 10-K clearance.
Unknown Executive: Thanks for the question. And so, as we had announced earlier in the year, in January, we did announce our intention to file for 510k clearance. At this point, it's kind of out of our hands on timing. So, it's up to, you know, the FDA and their approval process. As we said, we do anticipate that we will receive approval in the second half of this year, and once we do that, we can start marketing it to our customers.
Unknown Executive: At this point, it's kind of out of our hands on timing. So it's up to you know the F. D. A N. Their approval process as he said, we do anticipate that we will receive approval in the second half of this year and once we do that we can start marketing it to our customers we can't.
Unknown Executive: We can't market it before then, and we do anticipate that it will take time for the product to gain traction and that we don't anticipate significant revenues in 2024. And we will start to market this to our existing customers, so they're already familiar with our product. It's the same unit. It's just a software push and upgrade to the unit. And our customers have worked with us for many years, so they're familiar with us.
Unknown Executive: Marketed before then.
Unknown Executive: And we do anticipate that it will take time for the product to gain traction.
Unknown Executive: And that we don't anticipate a significant revenues in 2024, and we will start to market. This to our existing customers. So they've already are familiar with our product. It's the same unit. It's just the software portion upgrades to the unit and our customers.
Unknown Executive: Worked with us for many years and they are familiar with that.
Unknown Executive: Okay, that makes sense. And then, do you have any additional color regarding, you know, what specific conditions the quantifiable might identify, you know, in reference to the five things clearance? Or is it still a little bit too early to speak on that?
Speaker Change: Okay that makes sense and then do you have any additional color regarding you know what what specific conditions quantify might identify referenced 510 clearance or is it is it still a little bit too early to speak on that.
Unknown Executive: And so it will be surrounding heart dysfunction. The specific wording will come out once we get the actual clearance.
Unknown Executive: And so it will be surrounding a heart dysfunction. The specific wording will come out once we get the actual clearance.
Renae Cormier: Okay, gotcha. Understood. And then, Renae, how would you classify the current demand environment? And, I guess, as a follow-up to that. Have you lost customers, or do you expect to lose a significant amount of customers in relation to the PAD product?
Speaker Change: Okay got you understood.
Renae Cormier: And then Renee how would you classify the current demand environment and I guess is it just sort of a follow up to that.
Renae Cormier: Have you lost customers or expect to lose a significant amount of customers in relation to the PID product.
Renae Cormier: I would say that we still do have demand for our product, and so the reaction from our customers has been somewhat mixed. So, with 2023 being the first year of the phase-in, or sorry, with 2024 being the first year of the phase-in of the new CMS rate announcement, the economics have changed with some of our managed care customers. So, the extra reimbursement is being reduced not only for the asymptomatic PAD, but this reimbursement was cut in 2024 by about 33%.
Renae Cormier: I don't see that we still do have demand for our products. So the reaction from our customers.
Renae Cormier: It has been somewhat mixed so with 2023 being the first year of the phase in or sorry, with 2020 for being the first year of the phase in of the new CMS rate announcement, the economics have changed with some of our managed care customers. So the extra reimbursement is being reduced.
Renae Cormier: Do not only for the asymptomatic P D. But this reimbursement was cut in 2024 by about 33%.
Renae Cormier: And while our revenues are not directly linked to the CMS payments to our customers, some of the largest customers were offered additional volume pricing tiers. So, we are seeing continued testing, but we also did see some cleanup of underutilized units. We are still getting new customers, and the clinical value of testing remains the same. And we think it's unfortunate that CMS did not recognize this, that the clinical benefit of early detection by taking preventative measures really supports better outcomes.
Renae Cormier: And while our revenues are not directly linked to the CMS payments for our customers. Some of the largest customers were offered additional volume pricing tiers. So we are seeing continued testing, but we also did see some clean up of underlying underutilized units.
Renae Cormier: We are still getting new customers and the clinical value of testing remains the same and we think it's unfortunate but CMS did not recognize this that.
Renae Cormier: The clinical benefit of early detection by putting preventative measures really supports better outcomes.
Aaron Wukmir: Okay, understood. Appreciate all that caller said. And then, obviously, you guys have developed and maintained a healthy balance sheet, you know, with the record cash balance this quarter, and you might've mentioned this a little bit in your prepared remarks, but have you had any conversations about any inorganic opportunities? I'd just love to get some more thoughts on potential uses of cash as we move forward throughout the year here. Thanks for taking the questions. Sure.
Speaker Change: Okay understood I appreciate all that color and then you know obviously you guys have developed and maintained a healthy balance sheet with record cash balance this quarter.
Aaron Wukmir: And you might have mentioned this a little bit in your prepared remarks, but have you had any conversations on any inorganic opportunities now I'd just love to get some more thoughts on potential uses of cash as we move forward throughout the year here. Thanks for taking the question.
Renae Cormier: Sure. So really, when we're looking at our cash, there are kind of three areas that we're looking at. First and foremost is reinvesting back into our product. And so an example of this is the, you know, heart dysfunction 510K clearance that we're going after. The second, as you mentioned, is inorganic growth activities.
Speaker Change: Sure. So really when we're looking at our cash is kind of three areas that we're looking at them first and foremost is reinvesting back into our product and so it is an example of this is the hardest.
Renae Cormier: Dysfunction, five 10-K clearance that we're going after and the second as you mentioned is inorganic growth activities.
Renae Cormier: We do have a robust pipeline, but as you know, these things take time. So we are going to be very diligent in what we're doing and what we're looking at. Our board has a lot of experience in capital allocation, and they are closely aligned with management and shareholders in trying to make sure that we carefully approach any acquisition that we may have. And then the third piece with our cash could potentially be share buybacks.
Renae Cormier: We do have a robust pipeline, but as you know these things take time and so we are going to be very diligent and what what we're doing and what where we're looking at our board has a lot of experience in capital allocation and the.
Renae Cormier: We are closely aligned with management and shareholders and trying to make sure that we carefully approach any acquisition that we may have and then the third piece with our cash could potentially be share buybacks. So we do have a 20 million dollar share buybacks.
Renae Cormier: So we do have a $20 million share buyback that's authorized by the board. We have bought back $5 million already, so we do have $15 million authorized for share repurchases. So that's something else that the board will look at with capital allocation and, you know, depending on the market circumstances.
Renae Cormier: Its authorized by the board we have bought back 5 million already so we do have 15 million authorized in share repurchases. So that's something else that the board will obsess, well excess I'm looking at with capital allocation.
Renae Cormier: And you know depending on the market circumstances.
Aaron Wukmir: Okay, understood. Super helpful. And then just a quick one for modeling purposes. I think that I caught this correctly. But you mentioned in terms of revenue cadence that it should follow a sort of similar cadence to 2023. Did I catch that correctly? Yes.
Speaker Change: Okay understood Super helpful. And then just a quick one for modeling purposes, I think I caught this correctly, but you mentioned in terms of revenue cadence. It should fall a sort of similar cadence to 2023 did I catch that correctly.
Renae Cormier: Yes, we think it'll follow a similar cadence where H1 will be more heavily weighted than H2.
Aaron Wukmir: Yes, we think it will follow a similar cadence where H one will be more heavily weighted than H two.
Aaron Wukmir: Gotcha. Okay. I'm very helpful. Thanks for taking the questions again.
Speaker Change: Got you Okay very helpful. Thanks for taking the questions again sure. Thank you.
Aaron Wukmir: Yeah.
Renae Cormier: This concludes our question and answer session. I'd like to turn the call back over to Renae Cormier for any closing remarks.
Aaron Wukmir: This concludes our question and answer session I'd like to turn the call back over to Rene <unk> for any closing remarks.
Renae Cormier: Thank you as we wrap up this conference call, we want to emphasize our ongoing commitment to delivering clinical benefit through earlier diagnosis of chronic cardiovascular conditions.
Renae Cormier: Thank you. As we wrap up this conference call, we want to emphasize our ongoing commitment to delivering clinical benefits through earlier diagnosis of chronic cardiovascular conditions. The continued recognition of the value of this approach by our customers underscores the crucial role our technology plays for patients, physicians, facilities, and payers in an evolving healthcare landscape. Moving forward, our primary objective remains to preserve and strengthen our current revenue opportunities and profitability within the chronic disease space, with a focus on cardiovascular diseases.
Renae Cormier: The continued recognition of the value of this approach by our customers underscore the crucial role our technology plays per patient visit physicians facilities and Payors.
Renae Cormier: Bobbing health care landscape.
Renae Cormier: Moving forward our primary objective remains to preserve and strengthen our current revenue opportunities and profitability within the chronic disease state.
Renae Cormier: With a focus on cardiovascular diseases. We appreciate your participation in today's discussion and thank you for your ongoing support.
Renae Cormier: We appreciate your participation in today's discussion, and thank you for your ongoing support. The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect. Aaron Wukmir, Dennis Rosenberg, Aaron Wukmir, Dennis Rosenberg,
Operator: The conference is now concluded. Thank you for attending today's presentation, and you may now disconnect.
Renae Cormier: The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
Operator: Yeah.
Operator: [music].
Operator: Okay.
Operator: Yeah.
Operator: [music].
Unknown Executive: Ava DuVernay, Renee Cormier, Dennis Rosenberg, Aaron Wukmir, Jennifer Herrington, and Semler