SOPHiA GENETICS SA (Nasdaq: SOPH), today reported financial results
for the third quarter ended September 30, 2021.
Recent Highlights
- Revenue was $10.4 million for the
third quarter, representing a 45% increase over the corresponding
period of 2020
- Following a previous letter of
intent with GE Healthcare, executed a final Master Alliance
Agreement under which we will be working together with GE on a
variety of oncology opportunities in the healthcare market and will
collaborate on different initiatives and projects
- Total recurring platform customers
grew from 367 in the second quarter of this year to 375 customers
in the third quarter. Net dollar retention for the rolling
twelve-month period improved to 137%, indicating that we are
growing our revenue generated from existing customers net of
churn
- Continued to see momentum in
customer adoption with both clinical customers, such as City of
Hope and Institut Gustave Roussy, and biopharma customers, such as
AstraZeneca
“I am proud of our solid execution across our
organization this quarter, as year-over-year revenue again grew
significantly and as we continue to make progress in entering into
exciting new relationships and expanding on existing ones,” said
Jurgi Camblong, Co-Founder and CEO of SOPHiA GENETICS. “There is
much to look forward to at SOPHiA, including our exciting progress
in HRD, growing penetration in North America, expanding
opportunities with biopharma partners, and potential inorganic
growth opportunities. I am immensely proud of what we have
accomplished at SOPHiA and continue to be even more optimistic
about what lies ahead of us. 2021 has been and continues to be a
momentous year for our organization, and we remain confident in our
objectives and mission going forward.”
Third Quarter 2021 Financial
Results
Total revenue for the third quarter of 2021 was $10.4 million
compared to $7.2 million for the third quarter of 2020,
representing a 45% increase. The increase in revenue for the third
quarter 2021 was primarily driven by new customers onboarded onto
our platform and improved usage rates across our existing
customers.
Gross profit in the third quarter of 2021 was $6.5 million, an
increase of 53% compared to a gross profit of $4.3 million in the
third quarter of 2020. Gross profit margin was 63% in the third
quarter of 2021 as compared to 60% in the third quarter of 2020.
Adjusted gross margin was 65% in the third quarter of 2021 after
adjusting for the capitalization of our software development
expenses. Gross margins improved year-over-year as a result of
continued improvements in managing computational and
storage-related costs, while adjusted gross margins were in line
with the same period last year.
Total operating expenses for the third quarter of 2021 were
$27.0 million compared to $13.7 million in the third quarter of
2020.
R&D expenses for the third quarter of 2021 were $7.7
million, compared to $5.0 million in the third quarter of 2020.
This was primarily due to an increase in employee-related expenses
for R&D initiatives related to the development of new products
and applications.
Sales and marketing expenses for the third quarter of 2021 were
$7.7 million, compared to $4.1 million in the third quarter of
2020. The increase was primarily due to an increase in headcount
related expenses, commissions and sales related costs and higher
variable expenses, including marketing and travel-related expenses,
as COVID-19 restrictions continue to be lifted.
General and administrative expenses for the third quarter of
2021 were $11.7 million, compared to $4.6 million in the third
quarter of 2020. This increase was primarily driven by the
continued scale-up of the organization, the development of
quality-related initiatives to support a potential expansion of the
business into more regulated markets, increased share-based
compensation expenses related to the IPO, and IPO and new public
company-related expenses.
Operating loss in the third quarter of 2021 was $20.5 million,
compared to $9.4 million in the third quarter of 2020.
Net loss in the third quarter of 2021 was $21.2 million or 35
cents per share, compared to $10.5 million or 24 cents per share in
the third quarter of 2020.
Adjusted net loss in the third quarter of 2021 was $18.0 million
or 30 cents per share, compared to $9.0 million or 20 cents per
share in the third quarter of 2020.
Cash and cash equivalents and term deposits and short-term
investments were $280.6 million as of September 30, 2021.
2021 OutlookSOPHiA Genetics now
expects full year revenue for 2021 to be greater than $40 million,
representing growth of at least 41% over the prior year.
Agreement with GE HealthcareIn
July, SOPHiA entered into a letter of intent with GE Healthcare,
and we have now executed a final Master Alliance Agreement. Under
this agreement, we will be working together with GE on a variety of
opportunities in the healthcare market and will collaborate on
different initiatives and projects in the fields of digital
oncology and radiogenomic analysis. The first projects SOPHiA and
GE Healthcare are working on together relate to the creation of
infrastructure to integrate data between GE’s Edison platform and
the SOPHiA DDM platform, as well as a commercial collaboration
focused on co-marketing and pilot site recruitment in the digital
oncology and radiogenomic analysis space.
We also intend to work together to combine
SOPHiA’s and GE’s existing capabilities to jointly develop and
provide multimodal analytics.
Webcast and Conference Call
InformationSOPHiA GENETICS will host a conference call to
discuss the third quarter 2021 financial results, business
developments and outlook before market open on Wednesday, November
10, 2021 at 8:30 AM Eastern Time / 2:30 PM Central European Time.
Live audio of the webcast will be available on the “Investors”
section of the company website at: ir.sophiagenetics.com.
About SOPHiA GENETICSSOPHiA GENETICS is a
healthcare technology 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-based SaaS 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 more than
780 hospital, laboratory, and biopharma institutions globally.
More info: SOPHiAGENETICS.COM;
follow @SOPHiAGENETICS on Twitter.
Non-IFRS Financial Measures
To provide investors with additional information regarding our
financial results, we have disclosed here and elsewhere in this
earnings release the following non-IFRS measures:
- Adjusted cost of revenue, which we calculate as cost of revenue
adjusted to exclude amortization of capitalized research and
development expenses and expenses associated with the write-off of
custom inventory related to the cancellation of a contract due to
the acquisition of the customer;
- Adjusted gross profit, which we calculate as revenue minus
adjusted cost of revenue;
- Adjusted gross profit margin, which we calculated as adjusted
gross profit as a percentage of revenue;
- Adjusted operating loss, which we calculate as operating loss
adjusted to exclude those adjustments made to calculate adjusted
cost of revenue, amortization of intangible assets, share-based
compensation expense, non-cash portion of pensions expense paid in
excess of actual contributions to match the actuarial expense, and
non-recurring expenses related to the IPO that were not
capitalized;
- Adjusted finance income (expense), net, which we calculate as
finance income (expense), net adjusted to exclude changes in the
fair valuation of the derivative tied to the success fee we paid to
TriplePoint Capital LLC upon completion of our initial public
offering;
- Adjusted loss for the period, which we calculate as loss for
the period adjusted to exclude those adjustments made to calculate
adjusted cost of revenue, adjusted operating loss and adjusted
finance income (expense); and
- Adjusted loss per share, which we calculate as adjusted net
loss divided by the weighted-average number of shares.
These non-IFRS measures are key measures used by our management
and board of directors to evaluate our 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, we believe that these non-IFRS
measures provide useful information to investors and others in
understanding and evaluating our operating results in the same
manner as our 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 our 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 expenses
associated with the write-off of custom inventory related to the
cancellation of a customer contract due to the acquisition of the
customer. Although we do not expect custom inventory write-offs to
be a recurring event, such write-offs may occur from time to
time;
- 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
our business and an important part of our 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 our
business;
- These non-IFRS measures exclude the impact of non-recurring
expenses related to our IPO, which are cash expenditures, and we
expect to incur financing expenses from time to time;
- These non-IFRS measures exclude the impact of changes in fair
value of the derivative associated with the fee paid to TriplePoint
Capital LLC in connection with the completion of our IPO; and
- Other companies, including companies in our 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 our other IFRS
results.
The tables below provide the reconciliation of the most
comparable IFRS measures to the non-IFRS measures for the periods
presented.
Forward-Looking StatementsThis 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 our 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
our management’s beliefs and assumptions and on information
currently available to our 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 our
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 document speak
only as of the date of this press release. We expressly disclaim
any obligation or undertaking to update these forward-looking
statements contained in this press release to reflect any change in
our 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.
Media Contact:Eliza
Bamontiebamonti@sophiagenetics.com
Investor Contact:ir@sophiagenetics.com
SOPHiA GENETICS
SAInterim Condensed Consolidated Statement of
Loss(Amounts in USD thousands, except per share
data)(Unaudited)
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
$ |
10,359 |
|
|
$ |
7,168 |
|
|
$ |
29,513 |
|
|
$ |
20,565 |
|
Cost of revenue |
|
(3,815 |
) |
|
|
(2,901 |
) |
|
|
(11,122 |
) |
|
|
(7,764 |
) |
Gross
profit |
|
6,544 |
|
|
|
4,267 |
|
|
|
18,391 |
|
|
|
12,801 |
|
Research and development
costs |
|
(7,655 |
) |
|
|
(5,021 |
) |
|
|
(20,220 |
) |
|
|
(13,417 |
) |
Selling and marketing
costs |
|
(7,706 |
) |
|
|
(4,066 |
) |
|
|
(20,161 |
) |
|
|
(13,204 |
) |
General and administrative
costs |
|
(11,689 |
) |
|
|
(4,617 |
) |
|
|
(28,546 |
) |
|
|
(12,141 |
) |
Other operating income
(expense), net |
|
4 |
|
|
|
6 |
|
|
|
56 |
|
|
|
(139 |
) |
Operating
loss |
|
(20,502 |
) |
|
|
(9,431 |
) |
|
|
(50,480 |
) |
|
|
(26,100 |
) |
Finance income (expense),
net |
|
(263 |
) |
|
|
(1,039 |
) |
|
|
(1,128 |
) |
|
|
(2,726 |
) |
Loss before income
taxes |
|
(20,765 |
) |
|
|
(10,470 |
) |
|
|
(51,608 |
) |
|
|
(28,826 |
) |
Income tax (expense) |
|
(478 |
) |
|
|
4 |
|
|
|
(693 |
) |
|
|
(32 |
) |
Loss for the
period |
|
(21,243 |
) |
|
|
(10,466 |
) |
|
|
(52,301 |
) |
|
|
(28,858 |
) |
Attributable to the
owners of the parent |
$ |
(21,243 |
) |
|
$ |
(10,466 |
) |
|
$ |
(52,301 |
) |
|
$ |
(28,858 |
) |
Loss per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
share |
$ |
(0.35 |
) |
|
$ |
(0.24 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.71 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOPHiA GENETICS
SAInterim Condensed Consolidated Statement of
Comprehensive Loss(Amounts in USD
thousands)(Unaudited)
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Loss for the period |
$ |
(21,243 |
) |
|
$ |
(10,466 |
) |
|
$ |
(52,301 |
) |
|
$ |
(28,858 |
) |
Other comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified
to loss (net of tax) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation
differences |
|
(2,993 |
) |
|
|
2,305 |
|
|
|
(7,714 |
) |
|
|
2,505 |
|
Total items that may
be reclassified to loss |
$ |
(2,993 |
) |
|
$ |
2,305 |
|
|
$ |
(7,714 |
) |
|
$ |
2,505 |
|
Other comprehensive
income (loss) for the period |
$ |
(2,993 |
) |
|
$ |
2,305 |
|
|
$ |
(7,714 |
) |
|
$ |
2,505 |
|
Total comprehensive
loss for the period |
$ |
(24,236 |
) |
|
$ |
(8,161 |
) |
|
$ |
(60,015 |
) |
|
$ |
(26,353 |
) |
Attributable to owners
of the parent |
$ |
(24,236 |
) |
|
$ |
(8,161 |
) |
|
$ |
(60,015 |
) |
|
$ |
(26,353 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOPHiA GENETICS
SAInterim Condensed Consolidated Balance
Sheet(Amounts in USD thousands)
|
(Unaudited) |
|
|
|
|
|
|
September 30, 2021 |
|
|
December 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
209,990 |
|
|
$ |
74,625 |
|
Term deposits and short-term
investments |
|
70,566 |
|
|
|
22,720 |
|
Accounts receivable, net |
|
7,948 |
|
|
|
6,363 |
|
Inventory |
|
4,502 |
|
|
|
3,384 |
|
Prepaids and other current
assets |
|
7,819 |
|
|
|
2,602 |
|
Total current
assets |
|
300,825 |
|
|
|
109,694 |
|
Non-current
assets |
|
|
|
|
|
|
|
Property and equipment,
net |
|
4,045 |
|
|
|
1,772 |
|
Intangible assets, net |
|
14,331 |
|
|
|
13,282 |
|
Right-of-use assets |
|
11,536 |
|
|
|
3,767 |
|
Deferred tax asset |
|
1,623 |
|
|
|
2,114 |
|
Other non-current assets |
|
2,558 |
|
|
|
1,486 |
|
Total non-current
assets |
|
34,093 |
|
|
|
22,421 |
|
Total
assets |
$ |
334,918 |
|
|
$ |
132,115 |
|
Liabilities and
equity |
|
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
|
Accounts payable |
$ |
8,759 |
|
|
$ |
5,907 |
|
Accrued expenses |
|
12,641 |
|
|
|
9,081 |
|
Deferred contract revenue |
|
4,742 |
|
|
|
2,642 |
|
Current portion of
borrowings |
|
— |
|
|
|
2,873 |
|
Current portion of lease
liabilities |
|
1,388 |
|
|
|
1,036 |
|
Other current liabilities |
|
227 |
|
|
|
48 |
|
Total current
liabilities |
|
27,757 |
|
|
|
21,587 |
|
Non-current
liabilities |
|
|
|
|
|
|
|
Deferred contract revenue, net
of current portion |
|
134 |
|
|
|
142 |
|
Borrowings, net of current
portion |
|
— |
|
|
|
457 |
|
Lease liabilities, net of
current portion |
|
11,562 |
|
|
|
2,883 |
|
Defined benefit pension
liabilities |
|
5,293 |
|
|
|
5,158 |
|
Other non-current
liabilities |
|
477 |
|
|
|
1,378 |
|
Total non-current
liabilities |
|
17,466 |
|
|
|
10,018 |
|
Total
liabilities |
|
45,223 |
|
|
|
31,605 |
|
Equity |
|
|
|
|
|
|
|
Share capital |
|
3,328 |
|
|
|
2,460 |
|
Share premium |
|
470,887 |
|
|
|
227,429 |
|
Other reserves |
|
5,460 |
|
|
|
8,300 |
|
Accumulated deficit |
|
(189,980 |
) |
|
|
(137,679 |
) |
Total
equity |
|
289,695 |
|
|
|
100,510 |
|
Total liabilities and
equity |
$ |
334,918 |
|
|
$ |
132,115 |
|
|
|
|
|
|
|
|
|
SOPHiA GENETICS
SAInterim Condensed Consolidated Statement of Cash
Flows(Amounts in USD
thousands)(Unaudited)
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
Operating activities |
|
|
|
|
|
|
|
Loss before tax |
$ |
(51,608 |
) |
|
$ |
(28,826 |
) |
Adjustments for
non-monetary items |
|
|
|
|
|
|
|
Depreciation |
|
1,595 |
|
|
|
1,310 |
|
Amortization |
|
785 |
|
|
|
437 |
|
Interest expense |
|
2,297 |
|
|
|
901 |
|
Interest income |
|
(13 |
) |
|
|
(89 |
) |
Gain on TriplePoint success
fee |
|
(430 |
) |
|
|
— |
|
Expected credit loss
allowance |
|
(657 |
) |
|
|
546 |
|
Share-based compensation |
|
4,874 |
|
|
|
994 |
|
Intangible assets
write-off |
|
— |
|
|
|
218 |
|
Movements in provisions,
pensions, and government grants |
|
1,221 |
|
|
|
732 |
|
Research tax credit |
|
(413 |
) |
|
|
(565 |
) |
Working capital
changes |
|
|
|
|
|
|
|
(Increase) decrease in
accounts receivable |
|
(1,168 |
) |
|
|
1,904 |
|
(Increase) decrease in
prepaids and other current assets |
|
(5,519 |
) |
|
|
925 |
|
Increase in inventory |
|
(1,326 |
) |
|
|
(62 |
) |
Increase (decrease) in
accounts payables, accrued expenses, deferred contract revenue, and
other liabilities |
|
8,111 |
|
|
|
(322 |
) |
Cash used in operating
activities |
|
|
|
|
|
|
|
Income tax refund
received |
|
90 |
|
|
|
150 |
|
Interest paid |
|
(368 |
) |
|
|
(739 |
) |
Interest received |
|
9 |
|
|
|
88 |
|
Net cash flows used in
operating activities |
|
(42,520 |
) |
|
|
(22,398 |
) |
Investing
activities |
|
|
|
|
|
|
|
Purchase of property and
equipment |
|
(2,532 |
) |
|
|
(270 |
) |
Acquisition of intangible
assets |
|
(132 |
) |
|
|
(300 |
) |
Capitalized development
costs |
|
(2,530 |
) |
|
|
(1,830 |
) |
Proceeds upon maturity of term
deposits and short-term investments |
|
10,968 |
|
|
|
— |
|
Purchase of term deposits and
short-term investments |
|
(61,421 |
) |
|
|
— |
|
Net cash flow used in
investing activities |
|
(55,647 |
) |
|
|
(2,400 |
) |
Financing
activities |
|
|
|
|
|
|
|
Proceeds from exercise of
share options |
|
4,527 |
|
|
|
346 |
|
Proceeds from issuance of
share capital, net of transaction costs |
|
— |
|
|
|
107,643 |
|
Proceeds from initial public
offering, net of transaction costs |
|
211,907 |
|
|
|
— |
|
Proceeds from greenshoe, net
of transaction costs |
|
8,488 |
|
|
|
— |
|
Proceeds from private
placement, net of transaction costs |
|
19,648 |
|
|
|
— |
|
Payment of TriplePoint success
fee |
|
(2,468 |
) |
|
|
— |
|
Proceeds from borrowings |
|
— |
|
|
|
15,646 |
|
Repayments of borrowings |
|
(3,167 |
) |
|
|
(14,183 |
) |
Payments of principal portion
of lease liabilities |
|
(715 |
) |
|
|
(728 |
) |
Net cash flow provided
in financing activities |
|
238,220 |
|
|
|
108,724 |
|
Increase in cash and
cash equivalents |
|
140,053 |
|
|
|
83,926 |
|
Effect of exchange differences
on cash balances |
|
(4,688 |
) |
|
|
2,539 |
|
Cash and cash equivalents at
beginning of the period |
|
74,625 |
|
|
|
18,069 |
|
Cash and cash
equivalents at end of the period |
$ |
209,990 |
|
|
$ |
104,534 |
|
|
|
|
|
|
|
|
|
SOPHiA GENETICS
SAReconciliation of IFRS to Adjusted Cost of
Revenue(Amounts in USD
thousands)(Unaudited)
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Cost of revenue |
$ |
(3,815 |
) |
|
$ |
(2,901 |
) |
|
$ |
(11,122 |
) |
|
$ |
(7,764 |
) |
Amortization of capitalized research and development expenses
(1) |
$ |
152 |
|
|
$ |
— |
|
|
$ |
329 |
|
|
$ |
— |
|
Custom inventory write-off (2) |
$ |
— |
|
|
$ |
419 |
|
|
$ |
— |
|
|
$ |
419 |
|
Adjusted cost of
revenue |
$ |
(3,663 |
) |
|
$ |
(2,482 |
) |
|
$ |
(10,793 |
) |
|
$ |
(7,345 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of IFRS to Adjusted Gross
Profit and Gross Profit Margin(Amounts in USD
thousands, except
percentages)(Unaudited)
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue |
$ |
10,359 |
|
|
$ |
7,168 |
|
|
$ |
29,513 |
|
|
$ |
20,565 |
|
Cost of revenue |
$ |
(3,815 |
) |
|
$ |
(2,901 |
) |
|
$ |
(11,122 |
) |
|
$ |
(7,764 |
) |
Gross
profit |
$ |
6,544 |
|
|
$ |
4,267 |
|
|
$ |
18,391 |
|
|
$ |
12,801 |
|
Amortization of capitalized research and development expenses
(1) |
$ |
152 |
|
|
$ |
— |
|
|
$ |
329 |
|
|
$ |
— |
|
Custom inventory write-off (2) |
$ |
— |
|
|
$ |
419 |
|
|
$ |
— |
|
|
$ |
419 |
|
Adjusted Gross
Profit |
$ |
6,696 |
|
|
$ |
4,686 |
|
|
$ |
18,720 |
|
|
$ |
13,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
margin |
|
63 |
% |
|
|
60 |
% |
|
|
62 |
% |
|
|
62 |
% |
Amortization of capitalized research and development expenses
(1) |
|
2 |
% |
|
|
— |
% |
|
|
1 |
% |
|
|
— |
% |
Custom inventory write-off (2) |
|
— |
% |
|
|
5 |
% |
|
|
— |
% |
|
|
2 |
% |
Adjusted gross profit
margin |
|
65 |
% |
|
|
65 |
% |
|
|
63 |
% |
|
|
64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted
Operating Loss(Amounts in USD
thousands)(Unaudited)
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Operating loss |
$ |
(20,502 |
) |
|
$ |
(9,431 |
) |
|
$ |
(50,480 |
) |
|
$ |
(26,100 |
) |
Amortization of capitalized research and development costs (1) |
$ |
152 |
|
|
$ |
— |
|
|
$ |
329 |
|
|
$ |
— |
|
Custom inventory write-off (2) |
$ |
— |
|
|
$ |
419 |
|
|
$ |
— |
|
|
$ |
419 |
|
Amortization of intangible assets (3) |
$ |
143 |
|
|
$ |
174 |
|
|
$ |
456 |
|
|
$ |
437 |
|
Share-based compensation expense (4) |
$ |
3,038 |
|
|
$ |
410 |
|
|
$ |
4,874 |
|
|
$ |
994 |
|
Non-cash pension expense (5) |
$ |
187 |
|
|
$ |
381 |
|
|
$ |
522 |
|
|
$ |
954 |
|
Non-recurring IPO-related expenses (6) |
$ |
— |
|
|
$ |
— |
|
|
$ |
323 |
|
|
$ |
— |
|
Adjusted operating
loss |
$ |
(16,982 |
) |
|
$ |
(8,047 |
) |
|
$ |
(43,976 |
) |
|
$ |
(23,296 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of IFRS to Adjusted Income
(Expense), Net(Amounts in USD
thousands)(Unaudited)
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Finance income (expense), net |
$ |
(263 |
) |
|
$ |
(1,039 |
) |
|
$ |
(1,128 |
) |
|
$ |
(2,726 |
) |
Change in fair value of derivative (7) |
$ |
(254 |
) |
|
$ |
40 |
|
|
$ |
1,444 |
|
|
$ |
280 |
|
Adjusted finance
income (expense), net |
$ |
(517 |
) |
|
$ |
(999 |
) |
|
$ |
316 |
|
|
$ |
(2,446 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted Loss
for the Period and Loss per Share(Amounts in USD
thousands, except per share and share
data)(Unaudited)
|
For the three months ended September 30, |
|
|
For the nine months ended September 30, |
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Loss for the period |
$ |
(21,243 |
) |
|
$ |
(10,466 |
) |
|
$ |
(52,301 |
) |
|
$ |
(28,858 |
) |
Amortization of capitalized research and development costs (1) |
$ |
152 |
|
|
$ |
— |
|
|
$ |
329 |
|
|
$ |
— |
|
Custom inventory write-off (2) |
$ |
— |
|
|
$ |
419 |
|
|
$ |
— |
|
|
$ |
419 |
|
Amortization of intangible assets (3) |
$ |
143 |
|
|
$ |
174 |
|
|
$ |
456 |
|
|
$ |
437 |
|
Share-based compensation expense (4) |
$ |
3,038 |
|
|
$ |
410 |
|
|
$ |
4,874 |
|
|
$ |
994 |
|
Non-cash pension expense (5) |
$ |
188 |
|
|
$ |
381 |
|
|
$ |
523 |
|
|
$ |
954 |
|
Non-recurring IPO-related expenses (6) |
$ |
— |
|
|
$ |
— |
|
|
$ |
323 |
|
|
$ |
— |
|
Change in fair value of derivative (7) |
$ |
(254 |
) |
|
$ |
40 |
|
|
$ |
1,444 |
|
|
$ |
280 |
|
Adjusted loss for the
period |
$ |
(17,977 |
) |
|
$ |
(9,042 |
) |
|
$ |
(44,353 |
) |
|
$ |
(25,774 |
) |
Loss per
share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss per
share |
$ |
(0.35 |
) |
|
$ |
(0.24 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.71 |
) |
Adjusted basic and diluted
loss per share |
$ |
(0.30 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.85 |
) |
|
$ |
(0.64 |
) |
Number of shares used in
computing basic and diluted loss per share |
|
60,172,641 |
|
|
|
44,406,845 |
|
|
|
52,415,936 |
|
|
|
40,545,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
Custom inventory write-off consists of expenses associated with the
write-off of inventory related to the cancellation of a customer
contract due to the acquisition of the customer. The inventory was
specifically procured to satisfy a contract and could not be
liquidated, sold, or otherwise marketed to other customers due to
the nature of the contract. Given the unusual nature of the
cancellation, and overall scarcity of contract cancellations, these
expenses are not expected to be a recurring event in our
business. |
|
|
(3) |
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. |
|
|
(4) |
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. |
|
|
(5) |
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 remain a recurring
expense for our business as we continue to make contributions to
our plans for the foreseeable future. |
|
|
(6) |
Non-recurring IPO-related expenses represent expenses incurred for
our initial public offering that were not capitalized and are not
expected to be recurring during the ordinary course of our
business. |
|
|
(7) |
Change in fair value of derivative consists of changes in the fair
valuation of the derivative related to the success fee owed to
TriplePoint Capital LLC upon the completion of our initial public
offering. We paid the fee in cash in September and ceased to
continue to incur associated expenses. |
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