SOPHiA GENETICS SA (Nasdaq: SOPH), a cloud-native software
company in the healthcare space, today reported financial results
for the first quarter ended March 31, 2023.
Recent Highlights
- Revenue for the first quarter of
2023 was $14.0 million, representing year-over-year growth of 29%
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 first quarter
of 2023.
- Operating loss in the first quarter
of 2023 on a reported basis was $19.3 million and a $16.2 million
loss on an adjusted basis, representing an improvement of 23%
year-over-year from the first quarter of 2022 on an adjusted
basis.
- Continued adoption of SOPHiA DDM™
in clinical markets globally has enabled our analysis volume in the
first quarter of 2023 to grow to a record 77,819 analyses
representing year-over-year growth of 18%, while volume excluding
COVID-19-related analysis grew 25% year-over-year, and 12%
sequentially.
- 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
“SOPHiA GENETICS delivered constant currency ex
COVID-19 revenue growth of 37% in the first quarter of 2023, above
the high end of our initial guidance range. We performed over
77,000 analyses, and ended the quarter at nearly 30,000 analyses a
month. We have demonstrated again to be a leader for technology
agnostic software for genomic and multimodal analysis. Our recent
announcements with DASA, Krsnaa Diagnostics, and the University of
Maryland Medical Center demonstrate our ability to land and expand
at some of the world’s most prestigious clinical and research
centers. This would not be possible without our versatile platform
and a large menu of applications that provide meaningful insights
to the world class oncologists and researchers these institutions
employ.” said Jurgi Camblong, PhD., Chief Executive Officer and
Co-founder of SOPHiA GENETICS. “I am proud of our robust first
quarter growth and moreover that we could deliver it while
maintaining our fiscal discipline, resulting in meaningful expense
reductions from the prior year period.”
Ecosystem Update
In April, SOPHiA GENETICS announced that Krsnaa
Diagnostics, India’s largest diagnostic services provider in
radiology and pathology, went live on SOPHiA DDM™ technology.
Krsnaa Diagnostics is using SOPHiA DDMTM for Hereditary Cancers to
expand their current next-generation sequencing (NGS) offerings. In
May, we announced that Unipath Specialty Laboratory Limited, a
leading laboratory group in India, is now live using our Homologous
Recombination Deficiency (HRD) solution.
Also in April, SOPHiA GENETICS announced that
the University of Maryland Medical Center (UMMC) selected SOPHiA
GENETICS’ technology to enhance their research capabilities around
rare disease detection and treatment. UMMC will use SOPHiA
GENETICS’ solutions for whole exome to streamline their end-to-end
workflow for Rare Disorders and to accelerate their clinical
research turn-around times.
This quarter, SOPHiA GENETICS celebrated with
its longstanding customer and partner DASA, the largest integrated
healthcare network in Brazil, which serves approximately 10% of
Brazil’s population, the milestone of 2,000 samples analyzed by
DASA on SOPHiA DDMTM for Homologous Recombination Deficiency. This
milestone was reached just one year after implementation, a
testament to the momentum of the democratization of data-driven
medicine.
During the quarter, two honors were bestowed on
the company. In March, SOPHiA GENETICS was named to Fast Company’s
prestigious annual list of the World’s Most Innovative Companies
for 2023, and in April, SOPHiA GENETICS joined the ranks of
Actelion and Lonza in accepting the Swiss Biotech Success Stories
Award for outstanding contribution as a leader in data-driven
medicine.
First Quarter Financial
Results
Total revenue for the first quarter of 2023 was
$14.0 million compared to $10.9 million for the first quarter of
2022, representing year-over-year growth of 29%. Constant currency
revenue growth was 34%, and constant currency revenue growth
excluding COVID-19-related revenue was 37%.
Platform analysis volume, including volume from
integrated access customers, increased to 77,819 analyses for the
first quarter of 2023 compared to 65,694 analyses for the first
quarter of 2022. The year-over-year growth of 18% was attributable
to growth in our core platform analysis volume offset by the
continued decline of our COVID-19-related analysis volume.
Excluding COVID-related volumes, platform analysis volumes were
75,868 for the first quarter of 2023 compared to 60,456 in the
first quarter of 2022, representing 25% year-over-year growth.
Gross profit for the first quarter of 2023 was
$9.7 million compared to gross profit of $6.7 million in the first
quarter of 2022, representing year-over-year growth of 44%. Gross
margin was 69% for the first quarter of 2023 compared with 62% for
the first quarter of 2022. Adjusted gross profit was $10.1 million,
an increase of 47% compared to adjusted gross profit of $6.9
million in the first quarter of 2022. Adjusted gross margin was 73%
for the first quarter of 2023 compared to 64% for the first quarter
of 2022.
Total operating expenses for the first quarter
of 2023 were $29.0 million compared to $31.7 million for the first
quarter of 2022. Adjusted operating expense for the first quarter
of 2023 was $26.3 million, compared to $27.9 million for the first
quarter of 2022.
R&D expenses for the first quarter of 2023
were $9.3 million compared to $9.5 million for the first quarter of
2022. Adjusted R&D expense for the first quarter of 2023 was
$8.8 million, compared to $9.1 million for the first quarter of
2022.
Sales and marketing expenses for the first
quarter of 2023 were $6.4 million compared to $7.9 million for the
first quarter of 2022. Adjusted sales and marketing expense for the
first quarter of 2023 was $6.5 million, compared to $7.5 million
for the first quarter of 2022.
General and administrative expenses for the
first quarter of 2023 were $13.2 million dollars compared to $14.4
million for the first quarter of 2022. Adjusted general and
administrative expense for the first quarter of 2023 was $11.0
million, compared to $11.3 million for the first quarter of
2022.
Operating loss for the first quarter of 2023 was
$19.3 million, compared to $25.0 million in the first quarter of
2022. Adjusted operating loss for the first quarter of 2023 was
$16.2 million, compared to $21.0 million for the first quarter of
2022.
Net loss for the first quarter of 2023 was $19.7
million or $0.31 per share compared to $25.5 million or $0.40 per
share in the first quarter of 2022. Adjusted net loss for the first
quarter of 2023 was $16.6 million or $0.26 per share, compared to
$21.5 million or $0.34 per share for the first quarter of 2022.
Cash and cash equivalents were $161.9 million as
of March 31, 2023.
2023 Outlook
We are reaffirming our previously provided
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 first quarter of 2023 financial results
as well as business outlook on Tuesday, May 9, 2023, at 8:00 a.m.
Eastern Time / 2:00 p.m. Central European Summer 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 1-833-636-1350 (United States) or 1-412-902-4261
(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 (Nasdaq: SOPH) is a cloud-native
software company in the healthcare space 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 software 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 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;
- Adjusted gross
profit, which we calculate as revenue minus adjusted cost of
revenue;
- Adjusted gross
profit margin, which we calculate as adjusted gross profit as a
percentage of revenue;
- Adjusted
research and development costs, which we calculate as research and
development costs adjusted to exclude share-based compensation
expense and non-cash portion of pensions expense paid in excess of
actual contributions to match the actuarial expense;
- Adjusted
selling and marketing costs, which we calculate as selling and
marketing costs adjusted to exclude share-based compensation
expense and non-cash portion of pensions expense paid in excess of
actual contributions to match the actuarial expense;
- Adjusted
general and administrative costs, which we calculate as general and
administrative costs adjusted to exclude 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;
- Adjusted
operating loss, which we calculate as operating loss adjusted to
exclude those adjustments made to calculate adjusted cost of
revenue, adjusted research and development costs, adjusted selling
and marketing costs, and adjusted general and administrative
costs;
- Adjusted net
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 research and development costs, adjusted
selling and marketing costs, adjusted general and administrative
costs, and adjusted operating loss; and
- Adjusted net
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 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; 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 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 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
SAInterim Condensed Consolidated Statement of
Loss(Amounts in USD thousands, except per share
data)(Unaudited)
|
|
Three months ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
13,966 |
|
|
$ |
10,861 |
|
Cost of revenue |
|
|
(4,272 |
) |
|
|
(4,151 |
) |
Gross
profit |
|
|
9,694 |
|
|
|
6,710 |
|
Research and development
costs |
|
|
(9,334 |
) |
|
|
(9,475 |
) |
Selling and marketing
costs |
|
|
(6,424 |
) |
|
|
(7,864 |
) |
General and administrative
costs |
|
|
(13,242 |
) |
|
|
(14,380 |
) |
Other operating income
(expense), net |
|
|
19 |
|
|
|
(12 |
) |
Operating
loss |
|
|
(19,287 |
) |
|
|
(25,021 |
) |
Finance expense, net |
|
|
(306 |
) |
|
|
(233 |
) |
Loss before income
taxes |
|
|
(19,593 |
) |
|
|
(25,254 |
) |
Income tax expense |
|
|
(107 |
) |
|
|
(233 |
) |
Loss for the
period |
|
|
(19,700 |
) |
|
|
(25,487 |
) |
Attributable to the
owners of the parent |
|
|
(19,700 |
) |
|
|
(25,487 |
) |
|
|
|
|
|
Basic and diluted loss
per share |
|
$ |
(0.31 |
) |
|
$ |
(0.40 |
) |
SOPHiA GENETICS
SAInterim Condensed Consolidated Statement of
Comprehensive Loss(Amounts in USD
thousands)(Unaudited)
|
|
Three months ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Loss for the
period |
|
$ |
(19,700 |
) |
|
$ |
(25,487 |
) |
Other comprehensive
income (loss): |
|
|
|
|
Items that may be reclassified to statement of loss (net of
tax) |
|
|
|
|
Currency translation differences |
|
|
1,971 |
|
|
|
(1,961 |
) |
Total items that may
be reclassified to statement of loss |
|
|
1,971 |
|
|
|
(1,961 |
) |
Items that will not be reclassified to statement of loss (net of
tax) |
|
|
|
|
Remeasurement of defined benefit plans |
|
|
(70 |
) |
|
|
428 |
|
Total items that will
not be reclassified to statement of loss |
|
|
(70 |
) |
|
|
428 |
|
Other comprehensive
income (loss) for the period |
|
$ |
1,901 |
|
|
$ |
(1,533 |
) |
Total comprehensive
loss for the period |
|
$ |
(17,799 |
) |
|
$ |
(27,020 |
) |
Attributable to owners
of the parent |
|
$ |
(17,799 |
) |
|
$ |
(27,020 |
) |
SOPHiA GENETICS
SAInterim Condensed Consolidated Balance
Sheet(Amounts in USD thousands)
(Unaudited)
|
|
March 31, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
160,762 |
|
|
$ |
161,305 |
|
Term deposits |
|
|
1,094 |
|
|
|
17,307 |
|
Accounts receivable |
|
|
10,285 |
|
|
|
6,649 |
|
Inventory |
|
|
4,052 |
|
|
|
5,156 |
|
Prepaids and other current assets |
|
|
6,133 |
|
|
|
5,838 |
|
Total current
assets |
|
|
182,326 |
|
|
|
196,255 |
|
Non-current assets |
|
|
|
|
Property and equipment |
|
|
7,414 |
|
|
|
7,129 |
|
Intangible assets |
|
|
20,798 |
|
|
|
19,963 |
|
Right-of-use assets |
|
|
14,851 |
|
|
|
14,268 |
|
Deferred tax assets |
|
|
1,950 |
|
|
|
1,940 |
|
Other non-current assets |
|
|
4,719 |
|
|
|
4,283 |
|
Total non-current
assets |
|
|
49,732 |
|
|
|
47,583 |
|
Total
assets |
|
$ |
232,058 |
|
|
$ |
243,838 |
|
Liabilities and
equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
7,678 |
|
|
$ |
6,181 |
|
Accrued expenses |
|
|
10,452 |
|
|
|
14,505 |
|
Deferred contract revenue |
|
|
8,242 |
|
|
|
3,434 |
|
Lease liabilities, current portion |
|
|
2,977 |
|
|
|
2,690 |
|
Total current
liabilities |
|
|
29,349 |
|
|
|
26,810 |
|
Non-current liabilities |
|
|
|
|
Lease liabilities, net of current portion |
|
|
14,765 |
|
|
|
14,053 |
|
Defined benefit pension liabilities |
|
|
2,860 |
|
|
|
2,675 |
|
Other non-current liabilities |
|
|
172 |
|
|
|
170 |
|
Total non-current
liabilities |
|
|
17,797 |
|
|
|
16,898 |
|
Total
liabilities |
|
|
47,146 |
|
|
|
43,708 |
|
Equity |
|
|
|
|
Share capital |
|
|
3,464 |
|
|
|
3,464 |
|
Share premium |
|
|
471,771 |
|
|
|
471,623 |
|
Treasury shares |
|
|
(112 |
) |
|
|
(117 |
) |
Other reserves |
|
|
28,292 |
|
|
|
23,963 |
|
Accumulated deficit |
|
|
(318,503 |
) |
|
|
(298,803 |
) |
Total
equity |
|
|
184,912 |
|
|
|
200,130 |
|
Total liabilities and
equity |
|
$ |
232,058 |
|
|
$ |
243,838 |
|
SOPHiA GENETICS
SAInterim Condensed Consolidated Statement of Cash
Flows(Amounts in USD
thousands)(Unaudited)
|
|
Three months ended March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
Operating
activities |
|
|
|
|
Loss before tax |
|
$ |
(19,593 |
) |
|
$ |
(25,254 |
) |
Adjustments for
non-monetary items |
|
|
|
|
Depreciation |
|
|
1,284 |
|
|
|
833 |
|
Amortization |
|
|
606 |
|
|
|
355 |
|
Finance expense, net |
|
|
169 |
|
|
|
166 |
|
Expected credit loss
allowance |
|
|
638 |
|
|
|
(59 |
) |
Share-based compensation |
|
|
2,430 |
|
|
|
3,471 |
|
Movements in provisions,
pensions, and government grants |
|
|
349 |
|
|
|
196 |
|
Research tax credit |
|
|
(451 |
) |
|
|
(405 |
) |
Working capital
changes |
|
|
|
|
Increase in accounts
receivable |
|
|
(3,169 |
) |
|
|
(2 |
) |
(Increase) Decrease in
prepaids and other assets |
|
|
(859 |
) |
|
|
596 |
|
Decrease in inventory |
|
|
876 |
|
|
|
617 |
|
Increase in accounts payables,
accrued expenses, deferred contract revenue, and other
liabilities |
|
|
2,062 |
|
|
|
2,140 |
|
Cash used in operating
activities |
|
|
(15,658 |
) |
|
|
(17,346 |
) |
Income tax paid |
|
|
(121 |
) |
|
|
— |
|
Interest paid |
|
|
(5 |
) |
|
|
(69 |
) |
Interest received |
|
|
995 |
|
|
|
16 |
|
Net cash flows used in
operating activities |
|
|
(14,789 |
) |
|
|
(17,399 |
) |
Investing
activities |
|
|
|
|
Purchase of property and
equipment |
|
|
(508 |
) |
|
|
(561 |
) |
Acquisition of intangible
assets |
|
|
(284 |
) |
|
|
(334 |
) |
Capitalized development
costs |
|
|
(935 |
) |
|
|
(1,213 |
) |
Proceeds upon maturity of term
deposits |
|
|
16,213 |
|
|
|
21,646 |
|
Purchase of term deposits |
|
|
— |
|
|
|
(10,824 |
) |
Net cash flow provided
from investing activities |
|
|
14,486 |
|
|
|
8,714 |
|
Financing
activities |
|
|
|
|
Proceeds from exercise of
share options |
|
|
151 |
|
|
|
59 |
|
Payments of principal portion
of lease liabilities |
|
|
(1,086 |
) |
|
|
(470 |
) |
Net cash flow used in
financing activities |
|
|
(935 |
) |
|
|
(411 |
) |
Decrease in cash and
cash equivalents |
|
|
(1,238 |
) |
|
|
(9,096 |
) |
Effect of exchange differences
on cash balances |
|
|
695 |
|
|
|
(953 |
) |
Cash and cash equivalents at
beginning of the year |
|
|
161,305 |
|
|
|
192,962 |
|
Cash and cash
equivalents at end of the period |
|
$ |
160,762 |
|
|
$ |
182,913 |
|
SOPHiA GENETICS
SAReconciliation 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 March 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Growth |
IFRS
revenue |
|
$ |
13,966 |
|
|
$ |
10,861 |
|
|
29 |
% |
Current period constant currency impact |
|
|
618 |
|
|
|
— |
|
|
|
Constant currency
revenue |
|
$ |
14,584 |
|
|
$ |
10,861 |
|
|
34 |
% |
COVID-19-related revenue |
|
|
(125 |
) |
|
|
(331 |
) |
|
|
Constant currency impact on COVID-19-related revenue |
|
|
5 |
|
|
|
— |
|
|
|
Constant currency
revenue excluding COVID-19-related revenue |
|
$ |
14,464 |
|
|
$ |
10,530 |
|
|
37 |
% |
SOPHiA GENETICS
SAReconciliation of IFRS to Adjusted IFRS
Statement of Profit and Loss(Amounts in USD
thousands, except for %)(Unaudited)
Three months ended March 31, 2023 |
In USD thousands except per share data |
|
IFRS basis |
|
Amortization of capitalized research & development
expenses(1) |
|
Amortization of intangible
assets(2) |
|
Share-based compensation
expense(3) |
|
Non-cash pension expenses(4) |
|
Adjusted basis |
Revenue |
|
$ |
13,966 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
13,966 |
|
Cost of revenue |
|
|
(4,272 |
) |
|
|
432 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,840 |
) |
Gross
profit |
|
|
9,694 |
|
|
|
432 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,126 |
|
Gross margin |
|
|
69 |
% |
|
|
4 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
73 |
% |
Research and
development costs |
|
|
(9,334 |
) |
|
|
— |
|
|
|
— |
|
|
|
547 |
|
|
|
— |
|
|
|
(8,787 |
) |
Selling and marketing
costs |
|
|
(6,424 |
) |
|
|
— |
|
|
|
— |
|
|
|
(117 |
) |
|
|
— |
|
|
|
(6,541 |
) |
General and administrative
costs |
|
|
(13,242 |
) |
|
|
— |
|
|
|
173 |
|
|
|
2,000 |
|
|
|
78 |
|
|
|
(10,991 |
) |
Other operating income
(expense), net |
|
|
19 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19 |
|
Operating
loss |
|
|
(19,287 |
) |
|
|
432 |
|
|
|
173 |
|
|
|
2,430 |
|
|
|
78 |
|
|
|
(16,174 |
) |
Finance expense, net |
|
|
(306 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(306 |
) |
Loss before income
taxes |
|
|
(19,593 |
) |
|
|
432 |
|
|
|
173 |
|
|
|
2,430 |
|
|
|
78 |
|
|
|
(16,480 |
) |
Income tax expense |
|
|
(107 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(107 |
) |
Loss for the
period |
|
|
(19,700 |
) |
|
|
432 |
|
|
|
173 |
|
|
|
2,430 |
|
|
|
78 |
|
|
|
(16,587 |
) |
Attributable to the
owners of the parent |
|
|
(19,700 |
) |
|
|
432 |
|
|
|
173 |
|
|
|
2,430 |
|
|
|
78 |
|
|
|
(16,587 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share |
|
$ |
(0.31 |
) |
|
$ |
0.01 |
|
|
$ |
— |
|
|
$ |
0.04 |
|
|
$ |
— |
|
|
$ |
(0.26 |
) |
Weighted Average Shares
Outstanding |
|
|
64,242,871 |
|
|
|
|
|
|
|
|
|
|
|
64,242,871 |
|
Three months ended March 31, 2022 |
In USD thousands except per share data |
|
IFRS basis |
|
Amortization of capitalized research & development
expenses(1) |
|
Amortization of intangible
assets(2) |
|
Share-based compensation
expense(3) |
|
Non-cash pension expenses(4) |
|
Adjusted basis |
Revenue |
|
$ |
10,861 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,861 |
|
Cost of revenue |
|
|
(4,151 |
) |
|
|
198 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,953 |
) |
Gross
profit |
|
|
6,710 |
|
|
|
198 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,908 |
|
Gross margin |
|
|
62 |
% |
|
|
2 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
|
|
64 |
% |
Research and
development costs |
|
|
(9,475 |
) |
|
|
— |
|
|
|
— |
|
|
|
385 |
|
|
|
— |
|
|
|
(9,090 |
) |
Selling and marketing
costs |
|
|
(7,864 |
) |
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
|
|
(7,474 |
) |
General and administrative
costs |
|
|
(14,380 |
) |
|
|
— |
|
|
|
158 |
|
|
|
2,696 |
|
|
|
194 |
|
|
|
(11,332 |
) |
Other operating income
(expense), net |
|
|
(12 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12 |
) |
Operating
loss |
|
|
(25,021 |
) |
|
|
198 |
|
|
|
158 |
|
|
|
3,471 |
|
|
|
194 |
|
|
|
(21,000 |
) |
Finance expense, net |
|
|
(233 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(233 |
) |
Loss before income
taxes |
|
|
(25,254 |
) |
|
|
198 |
|
|
|
158 |
|
|
|
3,471 |
|
|
|
194 |
|
|
|
(21,233 |
) |
Income tax expense |
|
|
(233 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(233 |
) |
Loss for the
period |
|
|
(25,487 |
) |
|
|
198 |
|
|
|
158 |
|
|
|
3,471 |
|
|
|
194 |
|
|
|
(21,466 |
) |
Attributable to the
owners of the parent |
|
|
(25,487 |
) |
|
|
198 |
|
|
|
158 |
|
|
|
3,471 |
|
|
|
194 |
|
|
|
(21,466 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share |
|
$ |
(0.40 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.06 |
|
|
$ |
— |
|
|
$ |
(0.34 |
) |
Weighted Average Shares
Outstanding |
|
|
63,891,630 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63,891,630 |
|
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 expenses represent
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 recurring expenses 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
pensions remain a recurring expense for our business as we continue
to make contributions to our plans for the foreseeable future.
Investor Contact
Katherine Bailon
VP, Investor Relations
IR@sophiagenetics.com
Media Contact
Kelly Katapodis
Senior Manager, Media & Communications
media@sophiagenetics.com
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