SOPHiA GENETICS SA (Nasdaq: SOPH), a cloud-native software company
and a leader in data-driven medicine, today reported financial
results for the third quarter ended September 30, 2023.
Recent Highlights
- Revenue for the
third quarter of 2023 was $16.3 million, representing
year-over-year growth of 40% on a reported basis over the
corresponding period of 2022; Constant currency year-over-year
revenue growth excluding COVID-19-related revenues was 37%.
- Gross margins
were 69% on a reported basis and 73% on an adjusted basis for the
third quarter of 2023.
- Operating loss
in the third quarter of 2023 was $16.5 million on a reported basis
and $11.8 million on an adjusted basis, representing an improvement
from the third quarter of 2022 of 30% year-over-year on a reported
basis and 39% year-over-year on an adjusted basis. Cash burn for
the third quarter of 2023 was $15.8 million, compared to
$27.4 million in the third quarter of 2022.
- Continued
adoption of SOPHiA DDM™ in clinical markets globally has enabled
our analysis volume in the third quarter of 2023 to grow to a
record 79,784 analyses representing year-over-year growth of 28%,
while volume excluding COVID-19-related analyses grew 36%
year-over-year.
- Reiterated
full-year guidance including reported revenue growth expected to be
at or above 30%, constant currency revenue growth excluding
COVID-19-related revenue to be between 30% and 35%, and 2023
operating losses to be below 2022 levels.
CEO Commentary
“We delivered an outstanding third quarter,
highlighted by 37% year-over-year constant currency ex. COVID-19
revenue growth. Our growth came across the breadth of our portfolio
areas and geographies, despite the currently challenging macro
environment. Our strong performance was complemented by continued
improvements to gross margins and operating expenses, including a
marked 39% improvement in year-over-year adjusted operating loss
and a significant reduction in our cash burn.” said Jurgi Camblong,
PhD., Chief Executive Officer and Co-founder of SOPHiA GENETICS.
“The team at SOPHiA GENETICS continues to drive innovation and
growth in the area of technology-agnostic artificial intelligence
(AI) software for genomic and multimodal analysis, and the
recurring nature of our revenues positions us well to weather
economic uncertainty, as we finish this year and look ahead to
2024.”
Ecosystem Update
In October, SOPHiA GENETICS announced that
Memorial Sloan Kettering (MSK) and AstraZeneca would be
collaborating jointly with SOPHiA GENETICS to bring high quality,
comprehensive cancer testing to a global scale. With this
collaboration, the three leading organizations will further their
shared goal to advance health equity on a global scale by providing
inclusive access to comprehensive cancer testing worldwide.
The partnership will provide MSK’s proprietary
liquid biopsy and solid tumor cancer tests – MSK-ACCESS® and
MSK-IMPACT® – to organizations worldwide via our decentralized,
technology agnostic SOPHiA DDM™ Platform. This offering will be
rapidly deployed by SOPHiA GENETICS with support from AstraZeneca’s
global footprint. Through SOPHiA GENETICS’ cloud-based platform,
which provides highly accurate and reliable data and insights,
institutions around the world – and in traditionally
under-resourced and under-served areas – will have the power to
make data-driven decisions.
We are also pleased to announce that
BioReference®, a reference laboratory based outside of New York
City which processes over 12 million tests annually, primarily
through community oncologists, will be among the first to add
circulating tumor (ct)DNA testing via liquid biopsy to its
offerings with MSK-ACCESS® powered with SOPHiA DDM™.
Beyond MSK-ACCESS®, SOPHiA GENETICS has also
seen increased demand for decentralized liquid biopsy testing and
is pleased to announce today that Centre Léon-Bérard (CLB), part of
the CLCC network, consisting of 19 regional-cancer centers in
France, will use a liquid biopsy application on SOPHiA DDM™ by
leveraging SOPHiA GENETICS’ proprietary CUMIN technology.
Third Quarter Financial
Results
Total revenue for the third quarter of 2023 was
$16.3 million compared to $11.6 million for the third quarter of
2022, representing year-over-year growth of 40%. Constant currency
revenue growth was 33%, and constant currency revenue growth
excluding COVID-19-related revenue was 37%.
Platform analysis volume, including volume from
Integrated access, increased to 79,784 analyses for the third
quarter of 2023 compared to 62,276 analyses for the third quarter
of 2022. The year-over-year growth of 28% was attributable to
growth in Core Platform analysis volume, partially offset by the
continued decline of COVID-19-related analysis volume. Excluding
COVID-related volume, Platform analysis volume was 78,709 for the
third quarter of 2023 compared to 57,707 in the third quarter of
2022, representing 36% year-over-year growth.
Gross profit for the third quarter of 2023 was
$11.3 million compared to gross profit of $7.3 million in the third
quarter of 2022, representing year-over-year growth of 55%. Gross
margin was 69% for the third quarter of 2023 compared with 63% for
the third quarter of 2022. Adjusted gross profit was $11.8 million,
an increase of 56% compared to adjusted gross profit of $7.6
million in the third quarter of 2022. Adjusted gross margin was 73%
for the third quarter of 2023 compared to 67% for the third quarter
of 2022.
Total operating expenses for the third quarter
of 2023 were $27.8 million compared to $30.9 million for the third
quarter of 2022.
R&D expenses for the third quarter of 2023
were $9.0 million compared to $10.1 million for the third quarter
of 2022.
Sales and marketing expenses for the third
quarter of 2023 were $6.8 million compared to $7.9 million for the
third quarter of 2022.
General and administrative expenses for the
third quarter of 2023 were $12.7 million compared to $12.8 million
for the third quarter of 2022.
Operating loss for the third quarter of 2023 was
$16.5 million compared to $23.6 million in the third quarter of
2022. Adjusted operating loss for the third quarter of 2023 was
$11.8 million compared to $19.3 million for the third quarter of
2022. Cash burn for the third quarter of 2023 was
$15.8 million, compared to $27.4 million in the third
quarter of 2022.
Net loss for the third quarter of 2023 was $13.8
million or $0.21 per share compared to $23.3 million or $0.36 per
share in the third quarter of 2022.
Cash and cash equivalents were $132.8 million as
of September 30, 2023.
2023 Outlook
The company is reaffirming its previously
provided guidance of:
- full-year
reported revenue growth expected to be at or above 30%;
- full-year
constant currency revenue growth excluding COVID-19-related revenue
expected to be between 30% and 35%; and
- 2023 operating
losses expected to be below 2022 levels.
Constant currency revenue growth excluding
COVID-19-related revenue is a non-IFRS measure. See “Presentation
of Constant Currency Revenue and Excluding COVID-19-Related
Revenue” below for a description of its calculation. The company is
unable to provide a reconciliation of forward-looking constant
currency revenue growth excluding COVID-19-related revenue to
revenue, the most comparable IFRS financial measure, due to the
inherent difficulty in forecasting and quantifying the impact of
foreign currency translation.
Webcast and Conference Call
Information
SOPHiA GENETICS will host a conference call and
live webcast to discuss the third quarter of 2023 financial results
as well as business outlook on Tuesday, November 7, 2023, at
8:00 a.m. (08:00) Eastern Time / 2:00 p.m. (14:00) Central European
Time. The call will be webcast live on the SOPHiA GENETICS Investor
Relations website. The conference call can also be accessed live
over the phone by dialing 1-800-715-9871 (United States) or
1-646-307-1963 (outside of the United States). Additionally, an
audio replay of the conference call will be available on the SOPHiA
GENETICS website after its completion.
About SOPHiA GENETICS
SOPHiA GENETICS SA (Nasdaq: SOPH) is a software
company dedicated to establishing the practice of data-driven
medicine as the standard of care and for life sciences research. It
is the creator of the SOPHiA DDM™ Platform, a cloud-native platform
capable of analyzing data and generating insights from complex
multimodal data sets and different diagnostic modalities. The
SOPHiA DDM™ Platform and related solutions, products and services
are currently used by a broad network of hospital, laboratory, and
biopharma institutions globally. For more information, visit
SOPHiAGENETICS.COM or connect on Twitter, Facebook, LinkedIn, and
Instagram. Where others see data, we see answers.
Non-IFRS Financial Measures
To provide investors with additional information
regarding the company’s financial results, SOPHiA GENETICS has
disclosed here and elsewhere in this earnings release the following
non-IFRS measures:
- Adjusted gross
profit, which the company calculates as revenue minus cost of
revenue adjusted to exclude amortization of capitalized research
and development expenses;
- Adjusted gross
profit margin, which the company calculates as adjusted gross
profit as a percentage of revenue;
- Adjusted
operating loss, which the company calculates as operating loss
adjusted to exclude amortization of capitalized research and
development expenses, amortization of intangible assets,
share-based compensation expense, and non-cash portion of pensions
expense paid in excess of actual contributions to match the
actuarial expense.
These non-IFRS measures are key measures used by
SOPHiA GENETICS management and board of directors to evaluate its
operating performance and generate future operating plans. The
exclusion of certain expenses facilitates operating performance
comparability across reporting periods by removing the effect of
non-cash expenses and certain variable charges. Accordingly, the
company believes that these non-IFRS measures provide useful
information to investors and others in understanding and evaluating
its operating results in the same manner as its management and
board of directors.
These non-IFRS measures have limitations as
financial measures, and you should not consider them in isolation
or as a substitute for analysis of SOPHiA GENETICS’ results as
reported under IFRS. Some of these limitations are:
- These non-IFRS
measures exclude the impact of amortization of capitalized research
and development expenses and intangible assets. Although
amortization is a non-cash charge, the assets being amortized may
need to be replaced in the future and these non-IFRS measures do
not reflect capital expenditure requirements for such replacements
or for new capital expenditures;
- These non-IFRS
measures exclude the impact of share-based compensation expenses.
Share-based compensation has been, and will continue to be for the
foreseeable future, a recurring expense in the company’s business
and an important part of its compensation strategy;
- These non-IFRS
measures exclude the impact of the non-cash portion of pensions
paid in excess of actual contributions to match actuarial expenses.
Pension expenses have been, and will continue to be for the
foreseeable future, a recurring expense in the business; and
- Other
companies, including companies in the company’s industry, may
calculate these non-IFRS measures differently, which reduces their
usefulness as comparative measures.
Because of these limitations, you should
consider these non-IFRS measures alongside other financial
performance measures, including various cash flow metrics, net
income and other IFRS results.
The tables below provide the reconciliation of
the most comparable IFRS measures to the non-IFRS measures for the
periods presented.
Presentation of Constant Currency
Revenue and Excluding COVID-19-Related Revenue
SOPHiA GENETICS operates internationally, and
its revenues are generated primarily in the U.S. dollar, the euro
and Swiss franc and, to a lesser extent, British pound, Australian
dollar, Brazilian real, Turkish lira and Canadian dollar depending
on the company’s customers’ geographic locations. Changes in
revenue include the impact of changes in foreign currency exchange
rates. We present the non-IFRS financial measure “constant currency
revenue” (or similar terms such as constant currency revenue
growth) to show changes in revenue without giving effect to
period-to-period currency fluctuations. Under IFRS, revenues
received in local (non-U.S. dollar) currencies are translated into
U.S. dollars at the average monthly exchange rate for the month in
which the transaction occurred. When the company uses the term
“constant currency”, it means that it has translated local currency
revenues for the current reporting period into U.S. dollars using
the same average foreign currency exchange rates for the conversion
of revenues into U.S. dollars that we used to translate local
currency revenues for the comparable reporting period of the prior
year. The company then calculates the difference between the IFRS
revenue and the constant currency revenue to yield the “constant
currency impact” for the current period.
The company’s management and board of directors
use constant currency revenue growth to evaluate growth and
generate future operating plans. The exclusion of the impact of
exchange rate fluctuations provides comparability across reporting
periods and reflects the effects of customer acquisition efforts
and land-and-expand strategy. Accordingly, it believes that this
non-IFRS measure provides useful information to investors and
others in understanding and evaluating revenue growth in the same
manner as the management and board of directors. However, this
non-IFRS measure has limitations, particularly as the exchange rate
effects that are eliminated could constitute a significant element
of its revenue and could significantly impact performance and
prospects. Because of these limitations, you should consider this
non-IFRS measure alongside other financial performance measures,
including revenue and revenue growth presented in accordance with
IFRS and other IFRS results.
In addition to constant currency revenue, the
company presents constant currency revenue excluding
COVID-19-related revenue to further remove the effects of revenues
that are derived from sales of COVID-19-related offerings,
including a NGS assay for COVID-19 that leverages the SOPHiA DDMTM
Platform and related products and solutions analytical capabilities
and COVID-19 bundled access products. SOPHiA GENETICS do not
believe that these revenues reflect its core business of
commercializing its platform because the company’s COVID-19
solution was offered to address specific market demand by its
customers for analytical capabilities to assist with their testing
operations. The company does not anticipate additional development
of its COVID-19-related solution as the pandemic transitions into a
more endemic phase and as customer demand continues to decline.
Further, COVID-19-related revenues did not constitute, and the
company does not expect COVID-19-related revenues to constitute in
the future, a significant part of its revenue. Accordingly, the
company believes that this non-IFRS measure provides useful
information to investors and others in understanding and evaluating
its revenue growth. However, this non-IFRS measure has limitations,
including that COVID-19-related revenues contributed to the
company’s cash position, and other companies may define
COVID-19-related revenues differently. Because of these
limitations, you should consider this non-IFRS measure alongside
other financial performance measures, including revenue and revenue
growth presented in accordance with IFRS and other IFRS
results.
The table below provides the reconciliation of
the most comparable IFRS growth measures to the non-IFRS growth
measures for the current period.
Forward-Looking Statements
This press release contains statements that
constitute forward-looking statements. All statements other than
statements of historical facts contained in this press release,
including statements regarding SOPHiA GENETICS future results of
operations and financial position, business strategy, products and
technology, partnerships and collaborations, as well as plans and
objectives of management for future operations, are forward-looking
statements. Forward-looking statements are based on SOPHiA
GENETICS’ management’s beliefs and assumptions and on information
currently available to the company’s management. Such statements
are subject to risks and uncertainties, and actual results may
differ materially from those expressed or implied in the
forward-looking statements due to various factors, including those
described in the company’s filings with the U.S. Securities and
Exchange Commission. No assurance can be given that such future
results will be achieved. Such forward-looking statements contained
in this press release speak only as of its date. We expressly
disclaim any obligation or undertaking to update these
forward-looking statements contained in this press release to
reflect any change in the company’s expectations or any change in
events, conditions, or circumstances on which such statements are
based, unless required to do so by applicable law. No
representations or warranties (expressed or implied) are made about
the accuracy of any such forward-looking statements.
SOPHiA GENETICS SAInterim Condensed
Consolidated Statements of Loss(Amounts in USD
thousands, except per share
data)(Unaudited) |
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
16,303 |
|
|
$ |
11,648 |
|
|
$ |
45,323 |
|
|
$ |
34,176 |
|
Cost of revenue |
|
|
(5,030 |
) |
|
|
(4,355 |
) |
|
|
(14,309 |
) |
|
|
(12,552 |
) |
Gross
profit |
|
|
11,273 |
|
|
|
7,293 |
|
|
|
31,014 |
|
|
|
21,624 |
|
Research and development
costs |
|
|
(8,984 |
) |
|
|
(10,116 |
) |
|
|
(27,209 |
) |
|
|
(28,581 |
) |
Selling and marketing
costs |
|
|
(6,830 |
) |
|
|
(7,921 |
) |
|
|
(20,457 |
) |
|
|
(24,020 |
) |
General and administrative
costs |
|
|
(12,749 |
) |
|
|
(12,809 |
) |
|
|
(40,032 |
) |
|
|
(41,887 |
) |
Other operating income
(expense), net |
|
|
746 |
|
|
|
(86 |
) |
|
|
805 |
|
|
|
125 |
|
Operating
loss |
|
|
(16,544 |
) |
|
|
(23,639 |
) |
|
|
(55,879 |
) |
|
|
(72,739 |
) |
Finance income (expense),
net |
|
|
3,019 |
|
|
|
224 |
|
|
|
1,437 |
|
|
|
(617 |
) |
Loss before income
taxes |
|
|
(13,525 |
) |
|
|
(23,415 |
) |
|
|
(54,442 |
) |
|
|
(73,356 |
) |
Income tax (expense)
benefit |
|
|
(299 |
) |
|
|
105 |
|
|
|
(478 |
) |
|
|
(122 |
) |
Loss for the
period |
|
|
(13,824 |
) |
|
|
(23,310 |
) |
|
|
(54,920 |
) |
|
|
(73,478 |
) |
Attributable to the
owners of the parent |
|
|
(13,824 |
) |
|
|
(23,310 |
) |
|
|
(54,920 |
) |
|
|
(73,478 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share |
|
$ |
(0.21 |
) |
|
$ |
(0.36 |
) |
|
$ |
(0.85 |
) |
|
$ |
(1.15 |
) |
SOPHiA GENETICS SAInterim Condensed
Consolidated Statements of Comprehensive
Loss(Amounts in USD
thousands)(Unaudited) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Loss for the
period |
|
$ |
(13,824 |
) |
|
$ |
(23,310 |
) |
|
$ |
(54,920 |
) |
|
$ |
(73,478 |
) |
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
Items that may be reclassified to statement of loss (net of
tax) |
|
|
|
|
|
|
|
|
Currency translation differences |
|
|
(3,382 |
) |
|
|
(3,260 |
) |
|
|
2,269 |
|
|
|
(10,249 |
) |
Total items that may
be reclassified to statement of loss |
|
|
(3,382 |
) |
|
|
(3,260 |
) |
|
|
2,269 |
|
|
|
(10,249 |
) |
Items that will not be reclassified to statement of loss (net of
tax) |
|
|
|
|
|
|
|
|
Remeasurement of defined benefit plans |
|
|
13 |
|
|
|
689 |
|
|
|
(283 |
) |
|
|
2,453 |
|
Total items that will
not be reclassified to statement of loss |
|
|
13 |
|
|
|
689 |
|
|
|
(283 |
) |
|
|
2,453 |
|
Other comprehensive
income (loss) for the period |
|
$ |
(3,369 |
) |
|
$ |
(2,571 |
) |
|
$ |
1,986 |
|
|
$ |
(7,796 |
) |
Total comprehensive
loss for the period |
|
$ |
(17,193 |
) |
|
$ |
(25,881 |
) |
|
$ |
(52,934 |
) |
|
$ |
(81,274 |
) |
Attributable to owners
of the parent |
|
$ |
(17,193 |
) |
|
$ |
(25,881 |
) |
|
$ |
(52,934 |
) |
|
$ |
(81,274 |
) |
SOPHiA GENETICS SAInterim Condensed
Consolidated Balance Sheets(Amounts in USD
thousands)(Unaudited) |
|
|
September 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
132,767 |
|
|
$ |
161,305 |
|
Term deposits |
|
|
— |
|
|
|
17,307 |
|
Accounts receivable |
|
|
9,781 |
|
|
|
6,649 |
|
Inventory |
|
|
5,194 |
|
|
|
5,156 |
|
Prepaids and other current assets |
|
|
5,314 |
|
|
|
5,838 |
|
Total current
assets |
|
|
153,056 |
|
|
|
196,255 |
|
Non-current assets |
|
|
|
|
Property and equipment |
|
|
7,092 |
|
|
|
7,129 |
|
Intangible assets |
|
|
23,521 |
|
|
|
19,963 |
|
Right-of-use assets |
|
|
15,047 |
|
|
|
14,268 |
|
Deferred tax assets |
|
|
1,945 |
|
|
|
1,940 |
|
Other non-current assets |
|
|
5,191 |
|
|
|
4,283 |
|
Total non-current
assets |
|
|
52,796 |
|
|
|
47,583 |
|
Total
assets |
|
$ |
205,852 |
|
|
$ |
243,838 |
|
Liabilities and
equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
6,037 |
|
|
$ |
6,181 |
|
Accrued expenses |
|
|
12,857 |
|
|
|
14,505 |
|
Deferred contract revenue |
|
|
7,066 |
|
|
|
3,434 |
|
Lease liabilities, current portion |
|
|
2,908 |
|
|
|
2,690 |
|
Total current
liabilities |
|
|
28,868 |
|
|
|
26,810 |
|
Non-current liabilities |
|
|
|
|
Lease liabilities, net of current portion |
|
|
14,960 |
|
|
|
14,053 |
|
Defined benefit pension liabilities |
|
|
3,415 |
|
|
|
2,675 |
|
Other non-current liabilities |
|
|
170 |
|
|
|
170 |
|
Total non-current
liabilities |
|
|
18,545 |
|
|
|
16,898 |
|
Total
liabilities |
|
|
47,413 |
|
|
|
43,708 |
|
Equity |
|
|
|
|
Share capital |
|
|
4,048 |
|
|
|
3,464 |
|
Share premium |
|
|
471,827 |
|
|
|
471,623 |
|
Treasury shares |
|
|
(652 |
) |
|
|
(117 |
) |
Other reserves |
|
|
36,939 |
|
|
|
23,963 |
|
Accumulated deficit |
|
|
(353,723 |
) |
|
|
(298,803 |
) |
Total
equity |
|
|
158,439 |
|
|
|
200,130 |
|
Total liabilities and
equity |
|
$ |
205,852 |
|
|
$ |
243,838 |
|
SOPHiA GENETICS SAInterim Condensed
Consolidated Statements of Cash Flows(Amounts in
USD thousands)(Unaudited) |
|
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
Operating
activities |
|
|
|
|
Loss before tax |
|
$ |
(54,442 |
) |
|
$ |
(73,356 |
) |
Adjustments for
non-monetary items |
|
|
|
|
Depreciation |
|
|
4,339 |
|
|
|
2,728 |
|
Amortization |
|
|
2,016 |
|
|
|
1,292 |
|
Finance expense (income),
net |
|
|
1,641 |
|
|
|
(35 |
) |
Expected credit loss
allowance |
|
|
54 |
|
|
|
47 |
|
Share-based compensation |
|
|
11,036 |
|
|
|
11,017 |
|
Intangible assets
write-off |
|
|
— |
|
|
|
74 |
|
Movements in provisions and
pensions |
|
|
764 |
|
|
|
555 |
|
Research tax credit |
|
|
(785 |
) |
|
|
(1,158 |
) |
Loss on disposal of property
and equipment |
|
|
28 |
|
|
|
— |
|
Gain on disposal of lease
liability |
|
|
(730 |
) |
|
|
— |
|
Working capital
changes |
|
|
|
|
Increase in accounts
receivable |
|
|
(2,880 |
) |
|
|
(693 |
) |
Increase in prepaids and other
assets |
|
|
(2,869 |
) |
|
|
(1,001 |
) |
Increase in inventory |
|
|
(328 |
) |
|
|
(554 |
) |
Increase in accounts payables,
accrued expenses, deferred contract revenue, and other
liabilities |
|
|
2,284 |
|
|
|
963 |
|
Cash used in operating
activities |
|
|
(39,872 |
) |
|
|
(60,121 |
) |
Income tax paid |
|
|
(759 |
) |
|
|
— |
|
Interest paid |
|
|
(6 |
) |
|
|
(195 |
) |
Interest received |
|
|
3,354 |
|
|
|
552 |
|
Net cash flows used in
operating activities |
|
|
(37,283 |
) |
|
|
(59,764 |
) |
Investing
activities |
|
|
|
|
Purchase of property and
equipment |
|
|
(1,369 |
) |
|
|
(2,176 |
) |
Acquisition of intangible
assets |
|
|
(1,033 |
) |
|
|
(1,497 |
) |
Capitalized development
costs |
|
|
(4,575 |
) |
|
|
(3,535 |
) |
Proceeds upon maturity of term
deposits |
|
|
17,546 |
|
|
|
63,505 |
|
Purchase of term deposits |
|
|
— |
|
|
|
(26,462 |
) |
Net cash flow provided
from investing activities |
|
|
10,569 |
|
|
|
29,835 |
|
Financing
activities |
|
|
|
|
Proceeds from exercise of
share options |
|
|
207 |
|
|
|
748 |
|
Payments of principal portion
of lease liabilities |
|
|
(2,518 |
) |
|
|
(1,736 |
) |
Net cash flow used in
financing activities |
|
|
(2,311 |
) |
|
|
(988 |
) |
Decrease in cash and
cash equivalents |
|
|
(29,025 |
) |
|
|
(30,917 |
) |
Effect of exchange differences
on cash balances |
|
|
487 |
|
|
|
(4,218 |
) |
Cash and cash equivalents at
beginning of the year |
|
|
161,305 |
|
|
|
192,962 |
|
Cash and cash
equivalents at end of the period |
|
$ |
132,767 |
|
|
$ |
157,827 |
|
SOPHiA GENETICS SA Reconciliation of IFRS
Revenue Growth to Constant Currency Revenue Growth
and Constant Currency Revenue Growth Excluding
COVID-19-Related Revenue (Amounts in USD
thousands, except for %) (Unaudited) |
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Growth |
|
|
2023 |
|
|
|
2022 |
|
|
Growth |
IFRS revenue |
|
$ |
16,303 |
|
|
$ |
11,648 |
|
|
40 |
% |
|
$ |
45,323 |
|
|
$ |
34,176 |
|
|
33 |
% |
Current period constant currency impact |
|
|
(766 |
) |
|
|
— |
|
|
|
|
|
(350 |
) |
|
|
— |
|
|
|
Constant currency
revenue |
|
$ |
15,537 |
|
|
$ |
11,648 |
|
|
33 |
% |
|
$ |
44,973 |
|
|
$ |
34,176 |
|
|
32 |
% |
COVID-19-related revenue |
|
|
(16 |
) |
|
|
(290 |
) |
|
|
|
|
(213 |
) |
|
|
(913 |
) |
|
|
Constant currency impact on COVID-19-related revenue |
|
|
— |
|
|
|
— |
|
|
|
|
|
(3 |
) |
|
|
— |
|
|
|
Constant currency
revenue excluding COVID-19-related revenue |
|
$ |
15,521 |
|
|
$ |
11,358 |
|
|
37 |
% |
|
$ |
44,757 |
|
|
$ |
33,263 |
|
|
35 |
% |
SOPHiA GENETICS SA Reconciliation of IFRS
to Adjusted Gross Profit and Gross Profit Margin
(Amounts in USD thousands, except percentages)
(Unaudited) |
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
16,303 |
|
|
$ |
11,648 |
|
|
$ |
45,323 |
|
|
$ |
34,176 |
|
Cost of revenue |
|
|
(5,030 |
) |
|
|
(4,355 |
) |
|
|
(14,309 |
) |
|
|
(12,552 |
) |
Gross
profit |
|
$ |
11,273 |
|
|
$ |
7,293 |
|
|
$ |
31,014 |
|
|
$ |
21,624 |
|
Amortization of capitalized research and development
expenses(1) |
|
|
552 |
|
|
|
304 |
|
|
|
1,480 |
|
|
|
755 |
|
Adjusted gross
profit |
|
$ |
11,825 |
|
|
$ |
7,597 |
|
|
$ |
32,494 |
|
|
$ |
22,379 |
|
|
|
|
|
|
|
|
|
|
Gross profit
margin |
|
|
69 |
% |
|
|
63 |
% |
|
|
68 |
% |
|
|
63 |
% |
Amortization of capitalized research and development
expenses(1) |
|
|
4 |
% |
|
|
4 |
% |
|
|
4 |
% |
|
|
3 |
% |
Adjusted gross profit
margin |
|
|
73 |
% |
|
|
67 |
% |
|
|
72 |
% |
|
|
66 |
% |
SOPHiA GENETICS SA Reconciliation of IFRS
to Adjusted Operating Loss for the Period (Amounts
in USD thousands) (Unaudited) |
|
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating
loss |
|
$ |
(16,544 |
) |
|
$ |
(23,639 |
) |
|
$ |
(55,879 |
) |
|
$ |
(72,739 |
) |
Amortization of capitalized research & development expenses
(1) |
|
|
552 |
|
|
|
304 |
|
|
|
1,480 |
|
|
|
755 |
|
Amortization of intangible assets(2) |
|
|
184 |
|
|
|
191 |
|
|
|
536 |
|
|
|
537 |
|
Share-based compensation expense(3) |
|
|
3,930 |
|
|
|
3,657 |
|
|
|
11,036 |
|
|
|
11,017 |
|
Non-cash pension expense(4) |
|
|
69 |
|
|
|
173 |
|
|
|
231 |
|
|
|
545 |
|
Adjusted operating
loss |
|
$ |
(11,809 |
) |
|
$ |
(19,314 |
) |
|
$ |
(42,596 |
) |
|
$ |
(59,885 |
) |
Notes to the Reconciliation of IFRS to
Adjusted Financial Measures Tables
(1) Amortization of capitalized research and development
expenses consists of software development costs amortized using the
straight-line method over an estimated life of five years. These
expenses do not have a cash impact but remain a recurring expense
generated over the course of our research and development
initiatives.
(2) Amortization of intangible assets consists of costs related
to intangible assets amortized over the course of their useful
lives. These expenses do not have a cash impact, but we could
continue to generate such expenses through future capital
investments.
(3) Share-based compensation expense represents the cost of
equity awards issued to our directors, officers, and employees. The
fair value of awards is computed at the time the award is granted
and is recognized over the vesting period of the award by a charge
to the income statement and a corresponding increase in other
reserves within equity. These expenses do not have a cash impact
but remain a recurring expense for our business and represent an
important part of our overall compensation strategy.
(4) Non-cash pension expense consists of the amount recognized
in excess of actual contributions made to our defined pension plans
to match actuarial expenses calculated for IFRS purposes. The
difference represents a non-cash expense but remains a recurring
expense for our business as we continue to make contributions to
our plans for the foreseeable future.
Investor Contact
Investor Relations
IR@sophiagenetics.com
Media Contact
Kelly Katapodis
Senior Manager, Media & Communications
media@sophiagenetics.com
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