Fourth Quarter Revenue Growth Accelerates;
Operating Losses Notably Moderate
SOPHiA GENETICS SA (Nasdaq: SOPH), a cloud-native software
company in the healthcare space, today announced financial results
for its fourth quarter and full fiscal year ended December 31,
2022.
Recent Highlights
- Revenue for the full-year 2022 was $47.6 million, representing
year-over-year growth of 18% on a reported basis. 2022 constant
currency revenue growth excluding COVID-19-related revenues was
39%
- Revenue was $13.4 million for the fourth quarter, representing
a 22% increase on a reported basis over the corresponding period of
2021. Constant currency revenue growth excluding COVID-19-related
revenues was 44%
- Gross margins reached a record 72% on a reported basis and 75%
on adjusted basis for the fourth quarter of 2022
- Operating losses moderated in the fourth quarter to $15.1
million on a reported basis and $12.1 million on an adjusted basis,
marking the third consecutive quarter of improvement
- 2023 reported revenue growth guided to at or above 30%; 2023
constant currency revenue growth guidance excluding COVID-19
related revenues initiated at 30% to 35% vs. prior year comparable
levels
- Expanded strategic partnership with AstraZeneca to apply
multimodal technology and expertise to the AstraZeneca oncology
portfolio
- Entered into an expanded agreement with Memorial Sloan
Kettering Cancer Center (“MSK”), which allows SOPHiA GENETICS’
global network of healthcare providers access to MSK’s proprietary
comprehensive liquid biopsy and tumor sequencing tests such as
MSK-ACCESS® and MSK-IMPACT®, powered with SOPHiA DDMTM (“Data
Driven Medicine”)
- Entered into agreement with Qiagen to pair QIAseq reagent
technology with the universal SOPHiA DDMTM platform to enhance
cancer and rare disease analysis for next-generation sequencing
(“NGS”) applications
CEO Commentary
“SOPHiA GENETICS delivered an acceleration of constant currency
ex COVID revenue growth in each subsequent quarter of 2022,
finishing the year with 44% year-over-year growth in the fourth
quarter. Full year 2022 constant currency revenue growth was 32%,
within our long-term growth guidance of 30-35%, however excluding
the impact of expected COVID revenue declines, growth was a robust
39% driven by continued execution of our land and expand strategy
across our clinical base, particularly the strong adoption of HRD,
at triple-digit growth, and increased traction in our BioPharma
business. This performance reflects the relevance of our unique
market offering,” said Jurgi Camblong, PhD., Chief Executive
Officer and co-founder of SOPHiA GENETICS. “To be able to deliver
in a time of global uncertainty speaks to the strength of our
platform and our operating expense reductions are a demonstration
of our fiscal discipline. Looking into 2023, on the heels of recent
announcements with AstraZeneca, MSK, and Qiagen I could not be more
excited about the opportunities that lie ahead and SOPHiA GENETICS’
ability to capitalize.”
Ecosystem Update
In February, SOPHiA GENETICS announced an important expansion of
its AstraZeneca partnership. SOPHiA GENETICS and AstraZeneca’s
initial focus was targeting expanding worldwide access to
homologous recombination deficiency (“HRD”) testing. Now the
companies will build on this by collaborating on how SOPHiA
GENETICS’ multimodal approach might help AstraZeneca further their
capabilities and elevate precision oncology, currently driven by
genomic-based biomarkers, into a truly multimodal connected health
ecosystem, specifically around discovery, by accelerating clinical
trials.
Memorial Sloan Kettering Cancer Center, considered one of the
most prominent cancer centers in the United States, entered into an
agreement with SOPHiA GENETICS in January. The collaboration allows
SOPHiA GENETICS’ global network of healthcare providers access to
MSK’s proprietary comprehensive liquid biopsy and tumor sequencing
tests such as MSK-ACCESS® and MSK-IMPACT®, powered with SOPHIA
DDMTM. Additionally, the collaboration agreements will combine
MSK’s rich precision oncology data with the SOPHiA CarePathTM
module to enable the acceleration of actionable insights from data
to improve patient outcomes.
In March, SOPHiA GENETICS announced a partnership with Qiagen
N.V. to enhance the analysis of data generated from QIAseq reagent
technology in cancers and rare diseases on the SOPHiA DDMTM
platform. The partnership will allow customers to order combined
QIAseq panels with the SOPHiA DDMTM platform from Qiagen directly.
The goal is to allow customers to use SOPHiA GENETICS’ Set-Up
Program, an efficient and reliable process that establishes and
demonstrates the analytical performance of any test prior to it
being carried out. This will enable customers to better and more
efficiently design new workflows using QIAseq technologies.
Fourth Quarter 2022 Financial Results
Total revenue for the fourth quarter of 2022 was $13.4 million
compared to $10.9 million for the fourth quarter of 2021,
representing year-over-year growth of 22% on a reported basis.
Constant currency revenue growth was 36%, and constant currency
revenue growth excluding COVID-19-related revenue was 44%.
Platform analysis volumes were 71,066 for the fourth quarter of
2022 compared to 65,595 for the fourth quarter of 2021. The 8%
year-over-year growth was attributable to strength in our core
platform analysis volume, offset by the continued decline of our
COVID-19-related analysis volume. Excluding COVID-19-related
volumes, platform analysis volumes were 67,679 for the fourth
quarter of 2022 compared to 57,204 in the fourth quarter of 2021,
representing growth of 18% year-over-year in the period.
Gross profit for the fourth quarter of 2022 was $9.6 million
compared to gross profit of $6.8 million in the fourth quarter of
2021, representing year-over-year growth of 41%. Gross margin was
72% for the fourth quarter of 2022 compared with 62% for the fourth
quarter of 2021. Adjusted gross profit was $10.0 million, an
increase of 42% compared to adjusted gross profit of $7.1 million
in the fourth quarter of 2021. Adjusted gross margin was 75% for
the fourth quarter of 2022 compared to 65% for the fourth quarter
of 2021.
Total operating expenses for the fourth quarter of 2022 were
$24.7 million compared to $27.8 million for the fourth quarter of
2021. Total adjusted operating expenses were $22.1 million compared
to $24.6 million in the fourth quarter of 2021.
R&D expenses for the fourth quarter of 2022 were $6.8
million compared to $6.4 million for the fourth quarter of
2021.
Sales and marketing expenses for the fourth quarter of 2022 were
$4.2 million compared to $8.6 million for the fourth quarter of
2021. The reduction in expenses was attributable in part to
reallocation of headcount and related expenses to R&D and
general and administrative.
General and administrative expenses for the fourth quarter of
2022 were $13.9 million dollars compared to $13.0 million for the
fourth quarter of 2021.
Operating loss for the fourth quarter of 2022 was $15.1 million,
compared to $21.0 million in the fourth quarter of 2021. Adjusted
operating loss for the fourth quarter of 2022 was $12.1 million,
compared to $17.6 million for the fourth quarter of 2021.
Net loss for the fourth quarter of 2022 was $14.0 million or
$0.22 per share compared to $21.4 million or $0.33 per share in the
fourth quarter of 2021. Adjusted net loss for the fourth quarter of
2022 was $11.0 million or $0.17 per share, compared to $17.9
million or $0.28 per share for the fourth quarter of 2021.
Full Year Fiscal 2022 Financial Results
Total revenue for full year 2022 was $47.6 million compared to
$40.5 million for full year 2021, representing growth of 18% on a
reported basis. The growth in revenue was primarily driven by
increased usage rates across our existing customers, favorable mix
shift to higher priced applications, and strength in HRD and our
BioPharma offerings. Constant currency revenue growth was 32%, and
constant currency revenue growth excluding COVID-19-related revenue
was 39%.
Annualized revenue churn rate was 4% of total full year revenue
for 2022, as compared to the historic low of 3% seen in 2021 as a
result of pent-up demand due to the pandemic. Average revenue per
platform customer for the full year was approximately $93,700
compared to approximately $92,000 for the prior year period,
despite negative impact from significant currency headwinds. Net
dollar retention for the year decreased to 102% from 142% in 2021,
also negatively impacted by significant currency headwinds.
Constant currency net dollar retention excluding COVID-19-related
revenue was 123% as compared to 132% in 2021. Total recurring
platform customers grew to 390 as of December 31, 2022, up from 382
as of December 31, 2021, and 383 as of September 30, 2022.
Gross profit for the full year 2022 was $31.3 million, an
increase of 24% compared to a gross profit of $25.2 million for
full year 2021. Gross margin was 66% for full year 2022 as compared
with 62% for full year 2021. Adjusted gross margin was 68% as
compared with 64% for the full year 2021.
Total operating expenses for full year 2022 were $119.1 million
compared to $96.7 million for full year 2021. Total adjusted
operating expenses for the full year 2022 were $104.3 million
compared to $87.3 million for 2021.
R&D expenses for full year 2022 were $35.4 million, compared
to $26.6 million for full year 2021.
Sales and marketing expenses for full year 2022 were $28.3
million, compared to $28.7 million for full year 2021.
General and administrative expenses for full year 2022 were
$55.8 million, compared to $41.5 million for full year 2021.
Operating loss for full year 2022 was $87.8 million, compared to
$71.5 million for full year 2021. Adjusted operating loss for full
year 2022 was $72.0 million, compared to $61.5 million for full
year 2021.
Net loss for full year 2022 was $87.4 million or $1.36 per
share, compared to $73.7 million or $1.33 per share for full year
2021. Adjusted net loss for the full year 2022 was $71.6 million or
$1.12 per share, compared to $62.3 million or $1.13 per share for
full year 2021.
Cash and cash equivalents were $178.6 million as of December 31,
2022.
Full Year 2023 Outlook
Based on current business conditions, business trends and other
factors, for the full year ending December 31, 2023, the Company
initiates guidance of:
- reported revenue growth expected to be at or above 30%;
- full year constant currency revenue growth excluding
COVID-19-related revenue to be between 30% and 35%; and
- 2023 operating losses 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 fourth quarter and full year 2022 financial results as
well as business outlook on Tuesday, March 7, 2023, at 8:00 a.m.
Eastern Time / 2:00 p.m. 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
1-866-652-5200 (United States) or 1-412-317-6060 (outside of the
United States). Additionally, an audio replay of the conference
call and webcast will be available on the SOPHiA GENETICS website
after completion.
About SOPHiA GENETICS
SOPHiA GENETICS (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 DDMTM Platform, a cloud-native platform capable of
analyzing data and generating insights from complex multimodal data
sets and different diagnostic modalities. The SOPHiA DDMTM Platform
and related solutions, products and services are currently used by
a broad network of hospital, laboratory, and biopharma institutions
globally. For more information, SOPHiAGENETICS.COM, or connect on
Twitter, LinkedIn, Facebook, and Instagram. Where others see
data, we see answers.
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
inventory that were damaged as a result of a refrigeration
equipment malfunction;
- 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 expenses, which we calculate as operating
expenses adjusted to exclude 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 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 inventory damaged by a
refrigeration equipment malfunction. 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.
Presentation of Constant Currency Revenue and Excluding
COVID-19-Related Revenue
We operate internationally, and our 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 our 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 our
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 we use the term “constant currency”, it means that
we have 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. We then calculate
the difference between the IFRS revenue and the constant currency
revenue to yield the “constant currency impact” for the current
period.
Our management and board of directors use constant currency
revenue growth to evaluate our 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 our customer acquisition efforts and land-and-expand
strategy. Accordingly, we believe that this non-IFRS measure
provides useful information to investors and others in
understanding and evaluating our revenue growth in the same manner
as our 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 our
revenue and could significantly impact our 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 our other IFRS results.
In addition to constant currency revenue, we present constant
currency revenue excluding COVID-19-related revenue to further
remove the effects of revenues that we derived from sales of
COVID-19-related offerings, including a NGS assay for COVID-19 that
leverages our SOPHiA DDMTM Platform and related products and
solutions analytical capabilities and COVID-19 bundled access
products. We do not believe that these revenues reflect our core
business of commercializing our platform because our COVID-19
solution was offered to address specific market demand by our
customers for analytical capabilities to assist with their testing
operations. We do not anticipate additional development of our
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 we do not expect
COVID-19-related revenues to constitute in the future, a
significant part of our revenue. Accordingly, we believe that this
non-IFRS measure provides useful information to investors and
others in understanding and evaluating our revenue growth. However,
this non-IFRS measure has limitations, including that
COVID-19-related revenues contributed to our 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
our 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 2023
guidance and 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.
SOPHiA GENETICS SA
Consolidated Statement of
Loss
(Amounts in USD thousands,
except per share data)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Revenue
$
13,384
$
10,937
$
47,560
$
40,450
Cost of revenue
(3,753
)
(4,107
)
(16,306
)
(15,229
)
Gross profit
9,631
6,830
31,254
25,221
Research and development costs
(6,790
)
(6,358
)
(35,371
)
(26,578
)
Selling and marketing costs
(4,247
)
(8,574
)
(28,267
)
(28,735
)
General and administrative costs
(13,929
)
(12,959
)
(55,816
)
(41,505
)
Other operating (expense) income, net
252
52
377
108
Operating loss
(15,083
)
(21,009
)
(87,823
)
(71,489
)
Finance income (expense), net
855
(890
)
238
(2,018
)
Loss before income taxes
(14,228
)
(21,899
)
(87,585
)
(73,507
)
Income tax benefit (expense)
257
525
136
(168
)
Loss for the year
(13,971
)
(21,374
)
(87,449
)
(73,675
)
Attributable to the owners of the
parent
(13,971
)
(21,374
)
(87,449
)
(73,675
)
Basic and diluted loss per
share
$
(0.22
)
$
(0.33
)
$
(1.36
)
$
(1.33
)
SOPHiA GENETICS SA
Consolidated Statement of
Comprehensive Loss
(Amounts in USD
thousands)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Loss for the year
$
(13,971
)
$
(21,374
)
$
(87,449
)
$
(73,675
)
Other comprehensive (loss)
income:
Items that may be reclassified to
statement of loss (net of tax)
Currency translation differences
5,913
2,978
(4,336
)
(4,736
)
Total items that may be reclassified to
statement of loss
5,913
2,978
(4,336
)
(4,736
)
Items that will not be reclassified to
statement of loss (net of tax)
Remeasurement of defined benefit plans
(299
)
461
2,154
461
Total items that will not be
reclassified to statement of loss
(299
)
461
2,154
461
Other comprehensive (loss) income for
the period
$
5,614
$
3,439
$
(2,182
)
$
(4,275
)
Total comprehensive loss for the
period
$
(8,357
)
$
(17,935
)
$
(89,631
)
$
(77,950
)
Attributable to owners of the
parent
$
(8,357
)
$
(17,935
)
$
(89,631
)
$
(77,950
)
SOPHiA GENETICS SA
Consolidated Balance
Sheet
(Amounts in USD
thousands)
(Audited)
December 31, 2022
December 31, 2021
Assets
Current assets
Cash and cash equivalents
$
161,305
$
192,962
Term deposits
17,307
72,357
Accounts receivable
6,649
6,278
Inventory
5,156
5,729
Prepaids and other current assets
5,838
5,529
Total current assets
196,255
282,855
Non-current assets
Property and equipment
7,129
4,663
Intangible assets
19,963
15,673
Right-of-use assets
14,268
11,292
Deferred tax assets
1,940
1,990
Other non-current assets
4,283
3,700
Total non-current assets
47,583
37,318
Total assets
$
243,838
$
320,173
Liabilities and equity
Current liabilities
Accounts payable
$
6,181
$
6,737
Accrued expenses
14,505
15,972
Deferred contract revenue
3,434
4,069
Lease liabilities, current portion
2,690
1,813
Other current liabilities
—
12
Total current liabilities
26,810
28,603
Non-current liabilities
Lease liabilities, net of current
portion
14,053
11,246
Defined benefit pension liabilities
2,675
4,453
Other non-current liabilities
170
471
Total non-current liabilities
16,898
16,170
Total liabilities
43,708
44,773
Equity
Share capital
3,464
3,328
Share premium
471,623
470,887
Treasury shares
(117
)
—
Other reserves
23,963
12,539
Accumulated deficit
(298,803
)
(211,354
)
Total equity
200,130
275,400
Total liabilities and equity
$
243,838
$
320,173
SOPHiA GENETICS SA
Consolidated Statement of Cash Flows (Amounts in USD
thousands) (Audited)
Year ended December
31,
2022
2021
Operating activities
Loss before income tax
$
(87,585
)
$
(73,507
)
Adjustments for non-monetary
items
Depreciation
3,791
2,517
Amortization
1,780
1,092
Interest expense
639
658
Interest income
(1,324
)
(20
)
Gain on TriplePoint success fee
—
(430
)
Expected credit loss allowance
(467
)
(988
)
Share-based compensation
13,613
8,514
Intangible assets write-off
73
30
Movements in provisions, pensions, and
government grants
953
(23
)
Research tax credit
(1,292
)
(1,597
)
Loss on disposal of property and
equipment
—
22
Working capital changes
(Increase) decrease in accounts
receivable
1,332
1,806
(Increase) decrease in prepaids and other
assets
(977
)
(2,330
)
(Increase) decrease in inventory
(200
)
(2,336
)
Increase (decrease) in accounts payables,
accrued expenses, deferred contract revenue, and other
liabilities
(1,428
)
8,980
Cash used in operating
activities
Income tax received (paid)
—
(55
)
Interest paid
(266
)
(286
)
Interest received
1,265
14
Net cash flows used in operating
activities
(70,093
)
(57,939
)
Investing activities
Purchase of property and equipment
(4,097
)
(2,683
)
Acquisition of intangible assets
(464
)
(130
)
Capitalized development costs
(5,820
)
(3,858
)
Proceeds upon maturity of term deposits
and short-term investments
78,533
21,878
Purchase of term deposits and short-term
investments
(26,179
)
(72,141
)
Net cash flow provided from (used in)
investing activities
41,973
(56,934
)
Financing activities
Proceeds from exercise of share
options
748
4,527
Proceeds from initial public offering, net
of transaction costs
—
211,663
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
—
—
Repayments of borrowings
—
(3,167
)
Payments of principal portion of lease
liabilities
(2,316
)
(918
)
Net cash flow (used in) provided from
financing activities
(1,568
)
237,773
Increase (decrease) in cash and cash
equivalents
(29,688
)
122,900
Effect of exchange differences on cash
balances
(1,969
)
(4,563
)
Cash and cash equivalents at beginning of
the year
192,962
74,625
Cash and cash equivalents at end of the
year
$
161,305
$
192,962
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,
expect for %)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
Growth
2022
2021
Growth
IFRS revenue
$
13,384
$
10,937
22
%
$
47,560
$
40,450
18
%
Current period constant currency
impact
1,497
—
5,931
—
Constant currency revenue
$
14,881
$
10,937
36
%
$
53,491
$
40,450
32
%
COVID-19-related revenue
(167
)
(704
)
(1,080
)
(2,642
)
Constant currency impact on
COVID-19-related revenue
15
—
123
—
Constant currency revenue excluding
COVID-19-related revenue
$
14,729
$
10,233
44
%
$
52,534
$
37,808
39
%
SOPHiA GENETICS SA
Reconciliation of IFRS to
Adjusted Cost of Revenue
(Amounts in USD
thousands)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Cost of revenue
$
(3,753
)
$
(4,107
)
$
(16,306
)
$
(15,229
)
Amortization of capitalized research &
development expenses(1)
378
154
1,133
483
Damaged inventory write-off(2)
—
88
—
88
Adjusted cost of revenue
$
(3,375
)
$
(3,865
)
$
(15,173
)
$
(14,658
)
SOPHiA GENETICS SA
Reconciliation of IFRS to
Adjusted Gross Profit and Gross Profit Margin
(Amounts in USD thousands,
except percentages)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Revenue
$
13,384
$
10,937
$
47,560
$
40,450
Cost of revenue
(3,753
)
(4,107
)
(16,306
)
(15,229
)
Gross profit
$
9,631
$
6,830
$
31,254
$
25,221
Amortization of capitalized research &
development expenses(1)
378
154
1,133
483
Damaged inventory write-off(2)
—
88
—
88
Adjusted gross profit
$
10,009
$
7,072
$
—
$
32,387
$
25,792
Gross profit margin
72
%
62
%
66
%
62
%
Amortization of capitalized research &
development expenses(1)
3
%
2
%
2
%
2
%
Damaged inventory write-off(2)
—
%
1
%
—
%
—
%
Adjusted gross profit margin
75
%
65
%
68
%
64
%
SOPHiA GENETICS SA
Reconciliation of IFRS to
Adjusted Operating Expense
(Amounts in USD
thousands)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Operating expenses
$
(24,714
)
$
(27,839
)
$
(119,077
)
$
(96,710
)
Amortization of intangible assets(3)
110
153
647
609
Share-based compensation expense(4)
2,596
3,640
13,613
8,514
Non-cash pension expense(5)
(77
)
(595
)
468
(73
)
Non-recurring IPO-related expenses(6)
—
—
—
323
Adjusted operating expenses
$
(22,085
)
$
(24,641
)
$
(104,349
)
$
(87,337
)
SOPHiA GENETICS SA
Reconciliation of IFRS to
Adjusted Operating Loss
(Amounts in USD
thousands)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Operating loss
$
(15,083
)
$
(21,009
)
$
(87,823
)
$
(71,489
)
Amortization of capitalized research &
development expenses(1)
378
154
1,133
483
Damaged inventory write-off(2)
—
88
—
88
Amortization of intangible assets(3)
110
153
647
609
Share-based compensation expense(4)
2,596
3,640
13,613
8,514
Non-cash pension expense(5)
(77
)
(595
)
468
(73
)
Non-recurring IPO-related expenses(6)
—
—
—
323
Adjusted operating loss
$
(12,076
)
$
(17,569
)
$
(71,962
)
$
(61,545
)
SOPHiA GENETICS SA
Reconciliation of IFRS to
Finance Expense, Net
(Amounts in USD
thousands)
(Unaudited)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Finance expense
$
855
$
(890
)
$
238
$
(2,018
)
Change in fair value on derivative(7)
—
—
—
1,444
Adjusted finance expense
$
855
$
(890
)
$
238
$
(574
)
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)
Three months ended December
31,
Year ended December
31,
2022
2021
2022
2021
Loss for the period
$
(13,971
)
$
(21,374
)
$
(87,449
)
$
(73,675
)
Amortization of capitalized research &
development expenses(1)
378
154
1,133
483
Damaged inventory write-off(2)
—
88
—
88
Amortization of intangible assets(3)
110
153
647
609
Share-based compensation expense(4)
2,596
3,640
13,613
8,514
Non-cash pension expense(5)
(77
)
(595
)
468
(73
)
Non-recurring IPO-related expenses(6)
—
—
—
323
Change in fair value on derivative(7)
—
—
—
1,444
Adjusted loss for the period
$
(10,964
)
$
(17,934
)
$
(71,588
)
$
(62,287
)
Basic and diluted loss per share
$
(0.22
)
$
(0.33
)
$
(1.36
)
$
(1.33
)
Adjusted basic and diluted loss per
share
$
(0.17
)
$
(0.28
)
$
(1.12
)
$
(1.13
)
Number of shares used in computing basic
and diluted loss per share
64,218,959
63,857,604
64,099,213
55,299,863
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)
Damaged inventory write-off consists of
expenses associated with the write-off of inventory that were
damaged as a result of a refrigeration equipment malfunction. We
expect such expenses could still be incurred from time to time.
(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
remains 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230307005272/en/
Investor: Katherine Bailon VP, Investor Relations
IR@sophiagenetics.com Media: Kelly Katapodis Sr Manager,
Media & Communications media@sophiagenetics.com
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