Science 37 Holdings, Inc. (Nasdaq: SNCE), (“Science 37”) the
Operating System for today’s more agile clinical trials, today
reported its financial results for the quarter ended September 30,
2021.
“We are pleased to have delivered another quarter of strong
financial performance, marked by the early achievement of our
previously communicated full year net bookings projections in
September,” said David Coman, Chief Executive Officer of Science
37. “These results reflect the rapidly expanding market and the
adoption of our Operating System as the industry standard. We
expect this strong momentum to continue as more pharmaceutical
sponsors strive to accelerate clinical trials by enabling universal
access to patients and providers, anywhere.”
Quarterly Financial Highlights
- Revenue was $14.2 million for the quarter ended September 30,
2021, a 116% increase compared to the same period in 2020.
- Net bookings were $35.9 million for the quarter ended September
30, 2021, a 342% increase compared to the same period in 2020.
- Adjusted Gross Profit was $4.0 million for the quarter ended
September 30, 2021, compared to $(0.5) million for the same period
in 2020. Adjusted Gross Margin was 28.4% for the quarter ended
September 30, 2021, compared to (7.0%) percent for the same period
in the prior year.
- Net loss was $14.7 million for the quarter ended September 30,
2021, resulting in diluted earnings per share of $(3.23), compared
to a net loss of $7.7 million in the same period in 2020, or
diluted earnings per share of $(0.90).
- Adjusted Net Loss was $13.9 million for the quarter ended
September 30, 2021, compared to an Adjusted Net Loss of $7.8
million in the same period in 2020.
- Adjusted EBITDA was $(12.0) million for the quarter end
September 30, 2021, compared to $(6.7) million in the same period
in 2020.
2021 Financial Outlook
Science 37 is providing guidance for the calendar year ending
December 31, 2021 as follows:
- Total revenues between $53.7 and $54.2 million.
- Adjusted EBITDA between $(43.7) and $(45.7) million.
- Basic shares outstanding are expected to be approximately 114.7
million.
The foregoing 2021 Financial Outlook statements represent
management's current estimates as of the date of this release.
Actual results may differ materially depending on a number of
factors. Investors are urged to read the Cautionary Note Regarding
Forward-Looking Statements included in this release. Management
does not assume any obligation to update these estimates.
Webcast and Conference Call Details
Science 37 will host a conference call today, November 15, 2021,
at 8:00 a.m. ET to discuss its quarter ended September 30, 2021
financial results. The conference call can be accessed live by
dialing (844) 467-7754 for domestic callers or (270) 215-9366 for
international callers and referring to Conference ID: 3157111. A
live webcast of the conference call will be available on the
“Investor Relations” section of the Company's website at
https://investors.science37.com/. An archived copy of the webcast
will be available on the website after the call.
About Science 37
Science 37’s mission is to enable universal access to clinical
research—making it easier for patients and providers to participate
from anywhere and helping to accelerate the development of
treatments that impact patient lives. As a pioneer of decentralized
clinical trials, the Science 37 Clinical Trial Operating System
(OS) supports today’s more agile clinical research designs with its
full stack, end-to-end technology platform and specialized networks
of patient communities, telemedicine investigators, mobile nurses,
remote coordinators and connected devices. Configurable to enable
any study type, the Science 37 OS enables up to 15x faster
enrollment, 28% better retention and 3x more people of color, as
compared to the traditional site-centric clinical trial model, with
industry-leading workflow orchestration, evidence generation and
data harmonization. For more information, visit
https://www.science37.com.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws, including
statements regarding the services offered by Science 37 and the
markets in which it operates, and Science 37’s projected future
results. These forward-looking statements generally are identified
by the words “believe,” “project,” “expect,” “anticipate,”
“estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,”
“may,” “should,” “will,” “would,” “will be,” “will continue,” “will
likely result” and similar expressions. Forward-looking statements
are predictions, projections and other statements about future
events that are based on current expectations and assumptions and,
as a result, are subject to risks and uncertainties. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) the ability to maintain the listing of Science 37’s
securities on Nasdaq, (ii) volatility in the price of Science 37’s
securities due to a variety of factors, including changes in the
competitive and highly regulated industries in which Science 37
plans to operate, variations in performance across competitors,
changes in laws and regulations affecting Science 37’s business and
changes in its capital structure, (iii) the ability to recognize
anticipated benefits of the business combination between Science
37, Inc. and LifeSci Acquisition II Corp. (“LifeSci”), (iv) the
ability to implement business plans, forecasts, and other
expectations, and to identify and realize additional opportunities,
(v) the risk that Science 37 may never achieve or sustain
profitability, (vi) the risk that Science 37 will need to raise
additional capital to execute its business plan, which may not be
available on acceptable terms or at all; and (vii) the potential
adverse effects of the ongoing global COVID-19 pandemic. The
foregoing list of factors is not exhaustive. You should carefully
consider the foregoing factors and the other risks and
uncertainties described in the “Risk Factors” section of LifeSci’s
definitive proxy statement/prospectus filed with the U.S.
Securities and Exchange Commission (the “SEC”) on September 24,
2021 and other documents filed by Science 37 from time to time with
the SEC. These filings identify and address other important risks
and uncertainties that could cause actual events and results to
differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Science 37 assumes no obligation
and does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise, except as required by law. Science 37 does not give
any assurance that Science 37 will achieve its expectations.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance
with U.S. Generally Accepted Accounting Principles ("GAAP"), this
press release contains certain non-GAAP financial measures,
including adjusted gross profit, adjusted EBITDA and adjusted net
income (loss). A “non-GAAP financial measure” is generally defined
as a numerical measure of a company’s financial performance that
excludes or includes amounts from the most directly comparable
measure calculated and presented in accordance with GAAP in the
statements of operations, balance sheets, or statements of cash
flows of the Company. Please refer to the reconciliations of the
non-GAAP financial measures to their most directly comparable GAAP
measures included in this press release and the accompanying tables
contained at the end of this release.
The Company defines Adjusted Gross Profit as Gross Profit
excluding share-based compensation expense.
The Company defines Adjusted Net Income (including adjusted
diluted earnings per share) as net income (including diluted
earnings per share) excluding transactions that the Company
believes are not representative of its core operations, namely:
restructuring and other costs; transaction and integration-related
expenses; share-based compensation expense; other income (expense),
net; and gain or loss on extinguishment of debt.
EBITDA represents earnings before interest, taxes, depreciation,
and amortization. The Company defines adjusted EBITDA as EBITDA,
further adjusted to exclude expenses and transactions that the
Company believes are not representative of its core operations,
namely: restructuring and other costs; transaction and
integration-related expenses; share-based compensation expense;
other income (expense), net; and gain or loss on extinguishment of
debt.
Each of the non-GAAP measures noted above are used by management
and the Board to evaluate the Company's core operating results
because they exclude certain items whose fluctuations from
period-to-period do not necessarily correspond to changes in the
core operations of the business.
Management believes that adjusted gross profit, adjusted EBITDA
and adjusted net income (Loss) are helpful to investors, analysts,
and other interested parties because they can assist in providing a
more consistent and comparable overview of our operations across
our historical periods. In addition, these measures are frequently
used by analysts, investors, and other interested parties to
evaluate and assess performance.
Non-GAAP measures have limitations in that they do not reflect
all of the amounts associated with the Company's results of
operations as determined in accordance with GAAP. Also, other
companies might calculate these measures differently.
Contacts:
INVESTOR RELATIONS:Caroline PaulGilmartin
Groupinvestors@science37.com
MEDIA INQUIRIES:Margie KoomanScience 37Phone: (984)
377-3737Email: pr@science37.com
SCIENCE 37,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenues (including amounts
with related parties) |
|
$ |
14,235,697 |
|
|
$ |
6,583,413 |
|
|
$ |
39,221,524 |
|
|
$ |
12,541,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues (including
amounts with related parties) |
|
|
10,318,268 |
|
|
|
7,050,897 |
|
|
|
26,245,932 |
|
|
|
10,929,068 |
|
Selling, general and
administrative |
|
|
16,931,866 |
|
|
|
6,301,712 |
|
|
|
37,477,055 |
|
|
|
17,870,603 |
|
Depreciation and
amortization |
|
|
1,915,517 |
|
|
|
1,141,801 |
|
|
|
5,188,586 |
|
|
|
3,162,424 |
|
Restructuring Costs |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
699,473 |
|
Total operating expenses |
|
|
29,165,651 |
|
|
|
14,494,410 |
|
|
|
68,911,573 |
|
|
|
32,661,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(14,929,954 |
) |
|
|
(7,910,997 |
) |
|
|
(29,690,049 |
) |
|
|
(20,120,360 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
151 |
|
|
|
1,554 |
|
|
|
1,424 |
|
|
|
76,019 |
|
Sublease income (including
amounts with related parties) |
|
|
230,235 |
|
|
|
232,294 |
|
|
|
444,153 |
|
|
|
696,882 |
|
Other income |
|
|
7,697 |
|
|
|
(6,681 |
) |
|
|
11,954 |
|
|
|
(2,489 |
) |
Total other income |
|
|
238,083 |
|
|
|
227,167 |
|
|
|
457,531 |
|
|
|
770,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and other
comprehensive loss |
|
$ |
(14,691,871 |
) |
|
$ |
(7,683,830 |
) |
|
$ |
(29,232,518 |
) |
|
$ |
(19,349,948 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(3.23 |
) |
|
$ |
(0.90 |
) |
|
$ |
(7.66 |
) |
|
$ |
(2.29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares used
to compute basic and diluted net loss per share |
|
|
4,551,755 |
|
|
|
8,522,923 |
|
|
|
3,818,717 |
|
|
|
8,458,434 |
|
SCIENCE 37,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(unaudited) |
|
|
|
|
|
|
September 30, 2021 |
|
|
December 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
7,996,362 |
|
|
$ |
32,478,948 |
|
Restricted cash |
|
|
- |
|
|
|
1,004,142 |
|
Accounts receivable, net
(including amounts with related parties) |
|
|
6,998,708 |
|
|
|
11,200,252 |
|
Prepaid expenses and other
current assets |
|
|
4,226,079 |
|
|
|
1,364,162 |
|
Total current assets |
|
|
19,221,149 |
|
|
|
46,047,504 |
|
|
|
|
|
|
|
|
|
|
Property and equipment,
net |
|
|
1,157,818 |
|
|
|
535,384 |
|
Operating lease right-of-use
assets |
|
|
2,362,445 |
|
|
|
2,210,253 |
|
Capitalized software, net |
|
|
16,679,024 |
|
|
|
8,054,367 |
|
Other assets |
|
|
325,782 |
|
|
|
183,718 |
|
Total assets |
|
$ |
39,746,218 |
|
|
$ |
57,031,226 |
|
|
|
|
|
|
|
|
|
|
Liabilities,
redeemable convertible preferred stock and stockholders’
deficit |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
7,488,575 |
|
|
$ |
4,401,874 |
|
Accrued expenses and other
liabilities |
|
|
10,727,474 |
|
|
|
8,762,839 |
|
Deferred revenue |
|
|
6,571,281 |
|
|
|
5,136,457 |
|
Total current liabilities |
|
|
24,787,330 |
|
|
|
18,301,170 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Long-term deferred
revenue |
|
|
1,055,624 |
|
|
|
427,667 |
|
Operating lease
liabilities |
|
|
1,485,288 |
|
|
|
1,127,837 |
|
Other long-term
liabilities |
|
|
1,541,313 |
|
|
|
223,619 |
|
Total liabilities |
|
|
28,869,555 |
|
|
|
20,080,293 |
|
|
|
|
|
|
|
|
|
|
Redeemable convertible
preferred stock: |
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par
value; 41,692,230 shares authorized, 41,587,368 issued and
outstanding at September 30, 2021 and December 31,
2020 |
|
|
143,086,271 |
|
|
|
143,086,271 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ deficit: |
|
|
|
|
|
|
|
|
Common stock, $0.0001 par
value; 74,666,115 shares authorized, 4,595,168 and 2,765,097 issued
and outstanding at September 30, 2021 and December 31,
2020, respectively |
|
|
1,039 |
|
|
|
856 |
|
Additional paid-in
capital |
|
|
4,769,114 |
|
|
|
1,611,049 |
|
Accumulated deficit |
|
|
(136,979,761 |
) |
|
|
(107,747,243 |
) |
Total stockholders’
deficit |
|
|
(132,209,608 |
) |
|
|
(106,135,338 |
) |
Total liabilities, redeemable
convertible preferred stock and stockholders’ deficit |
|
$ |
39,746,218 |
|
|
$ |
57,031,226 |
|
SCIENCE 37,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
Operating
activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(29,232,518 |
) |
|
$ |
(19,349,948 |
) |
Adjustments to reconcile net
loss to net cash used in |
|
|
|
|
|
|
|
|
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
5,188,586 |
|
|
|
3,162,424 |
|
Amortization of operating ROU
assets |
|
|
1,153,257 |
|
|
|
1,400,294 |
|
Stock based compensation |
|
|
1,913,096 |
|
|
|
1,789 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable (including
amounts with related parties) |
|
|
4,201,546 |
|
|
|
(3,265,235 |
) |
Prepaid expenses and other
current assets |
|
|
(2,861,917 |
) |
|
|
(1,265,844 |
) |
Other assets |
|
|
(142,065 |
) |
|
|
363,156 |
|
Accounts payable |
|
|
2,109,901 |
|
|
|
3,163,309 |
|
Accrued expenses and other
current liabilities |
|
|
577,494 |
|
|
|
3,158,333 |
|
Deferred revenue |
|
|
2,062,780 |
|
|
|
(976,377 |
) |
Operating lease
liabilities |
|
|
(947,997 |
) |
|
|
(3,399,177 |
) |
Other long-term
liabilities |
|
|
1,317,693 |
|
|
|
143,369 |
|
Net cash used in operating
activities |
|
|
(14,660,144 |
) |
|
|
(16,863,907 |
) |
|
|
|
|
|
|
|
|
|
Investing
activities |
|
|
|
|
|
|
|
|
Capitalized software
development costs |
|
|
(11,338,853 |
) |
|
|
(3,938,788 |
) |
Purchases of fixed assets |
|
|
(732,883 |
) |
|
|
(244,677 |
) |
Net cash used in investing
activities |
|
|
(12,071,736 |
) |
|
|
(4,183,465 |
) |
|
|
|
|
|
|
|
|
|
Financing
activities |
|
|
|
|
|
|
|
|
Proceeds from Series D-1
financing, net of issuance costs |
|
|
– |
|
|
|
39,923,805 |
|
Cash received from stock
option exercises |
|
|
1,245,152 |
|
|
|
116,240 |
|
Net cash provided by financing
activities |
|
|
1,245,152 |
|
|
|
40,040,045 |
|
|
|
|
|
|
|
|
|
|
Net decrease in cash, cash
equivalents, and restricted cash |
|
|
(25,486,728 |
) |
|
|
18,992,673 |
|
Cash, cash equivalents, and
restricted cash, beginning of period |
|
|
33,483,090 |
|
|
|
28,808,017 |
|
Cash, cash equivalents, and
restricted cash, end of period |
|
$ |
7,996,362 |
|
|
$ |
47,800,690 |
|
Supplemental
disclosures of non-cash activities: |
|
|
|
|
|
|
|
|
Net change in accounts payable
and accrued expenses and other current liabilities related to
capitalized software and fixed asset additions |
|
$ |
(2,363,941 |
) |
|
$ |
(208,363 |
) |
ROU asset obtained in exchange
for operating lease liabilities |
|
$ |
(1,305,448 |
) |
|
$ |
- |
|
SCIENCE 37, INC.NON-GAAP
FINANCIAL MEASURES(Unaudited)
The following table reconciles Gross Profit (loss) to Adjusted
Gross Profit:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Gross profit |
|
$ |
3,917,429 |
|
|
$ |
(467,485 |
) |
|
$ |
12,975,591 |
|
|
$ |
1,612,140 |
|
Stock-based compensation expense (direct) |
|
|
129,464 |
|
|
|
4,381 |
|
|
|
346,516 |
|
|
|
(70,058 |
) |
Adjusted gross profit |
|
$ |
4,046,894 |
|
|
$ |
(463,104 |
) |
|
$ |
13,322,108 |
|
|
$ |
1,542,082 |
|
The following table reconciles Net income (loss) to Adjusted
EBITDA:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$(14,691,871 |
) |
|
$(7,683,830 |
) |
|
$(29,232,518 |
) |
|
$(19,349,948 |
) |
Interest income |
|
|
(151 |
) |
|
|
(1,554 |
) |
|
|
(1,424 |
) |
|
|
(76,019 |
) |
Depreciation and
amortization |
|
|
1,915,517 |
|
|
|
1,141,801 |
|
|
|
5,188,586 |
|
|
|
3,162,424 |
|
Other income (1) |
|
|
(237,932 |
) |
|
|
(225,613 |
) |
|
|
(456,107 |
) |
|
|
(694,394 |
) |
Stock-based compensation
expense |
|
|
997,979 |
|
|
|
105,341 |
|
|
|
1,913,096 |
|
|
|
1,789 |
|
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
699,473 |
|
Adjusted
EBITDA |
|
$(12,016,458 |
) |
|
$(6,663,855 |
) |
|
$(22,588,367 |
) |
|
$(16,256,674 |
) |
(1 |
) |
For the three months ended September 30, 2021 and 2020, other
income includes $230,235 and $232,294, respectively, of sublease
income. For the nine months ended September 30, 2021 and 2020,
other income includes $444,153 and $696,882, respectively, of
sublease income. |
The following table reconciles Net Income (loss) to Adjusted Net
Loss:
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net loss |
|
$ |
(14,691,871 |
) |
|
$ |
(7,683,830 |
) |
|
$ |
(29,232,518 |
) |
|
$ |
(19,349,948 |
) |
Interest income |
|
|
(151 |
) |
|
|
(1,554 |
) |
|
|
(1,424 |
) |
|
|
(76,019 |
) |
Other income (1) |
|
|
(237,932 |
) |
|
|
(225,613 |
) |
|
|
(456,107 |
) |
|
|
(694,394 |
) |
Stock-based compensation
expense |
|
|
997,979 |
|
|
|
105,341 |
|
|
|
1,913,096 |
|
|
|
1,789 |
|
Restructuring costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
699,473 |
|
Adjusted net
loss |
|
$ |
(13,931,976 |
) |
|
$ |
(7,805,656 |
) |
|
$ |
(27,776,953 |
) |
|
$ |
(19,419,098 |
) |
(1 |
) |
For the three months ended September 30, 2021 and 2020, other
income includes $230,235 and $232,294, respectively, of sublease
income. For the nine months ended September 30, 2021 and 2020,
other income includes $444,153 and $696,882, respectively, of
sublease income. |
Science 37 (NASDAQ:SNCE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Science 37 (NASDAQ:SNCE)
Historical Stock Chart
From Jul 2023 to Jul 2024