What happened

Shares of Semler Scientific (SMLR 1.66%) are skyrocketing today, up by 19.1% as of 10:50 a.m. ET. The big gain came after the healthcare technology company announced its second-quarter results following the market close on Tuesday.

Semler reported Q2 revenue of $14.8 million, up 4% year over year and slightly above Wall Street estimates. The company posted earnings of $4.1 million, or $0.51 per diluted share. While this was lower than Semler's results from the prior-year period, it easily topped the consensus earnings estimate of $0.40 per share.

So what

Investors needed some good news from Semler. The healthcare stock had plunged 64% year to date prior to today's jump. But Semler's Q2 update was just what the doctor ordered.

The company's Q2 revenue was the highest quarterly revenue in its history. Even though earnings fell year over year, Semler has been profitable in every quarter since Q4 2017. The company also reported its biggest cash stockpile ever, with cash and cash equivalents totaling $40 million as of June 30, 2022.

This success was driven by Semler's QuantaFlo point-of-care test that's used in the diagnosis of cardiovascular diseases. CEO Doug Murphy-Chutorian said that the company had increased QuantaFlo orders from existing and new customers during Q2.

Now what

The second half of 2022 should be even better for Semler than the first. The company expects revenue growth in the second half will be between 14% and 21%. As a result, Semler projects full-year revenue will increase by between 9% and 14% year over year to $58 million to $60 million. The company's operations expenses should also be lower than previously anticipated because of increased sales organization efficiencies in the first half of the year.