SOPHiA GENETICS (Nasdaq: SOPH), a cloud-native software company and
leader in data-driven medicine, today reported financial results
for the first quarter ended March 31, 2024.
First Quarter
2024 Financial
Highlights
- Revenue grew
13% year-over-year to $15.8 million; Constant currency revenue
excluding COVID-related revenue grew 12% year-over-year
- Gross margins
were 65.9% on a reported basis and 70.5% on an adjusted basis
- Operating loss
was $18.8 million on a reported basis and $14.1 million on an
adjusted basis, representing year-over-year improvements of 3% and
13%, respectively
- Reiterated
full-year guidance, including revenue growth of 25% to 30%,
adjusted gross margin of 72.5% to 72.7%, and adjusted operating
loss between $45 million and $50 million
- Entered into an agreement with
Perceptive Advisors for up to $50 million in debt financing to
provide additional capital flexibility to accelerate our growth and
buttress our already strong balance sheet
"We delivered solid achievements in Q1 to fuel
future growth, including the signing of 27 new core genomics
customers, the official launch of MSK-ACCESS® powered with SOPHiA
DDM™, which has already gained remarkable traction worldwide, and
new milestones working with BioPharma partners to diversify and
expand the SOPHiA DDM™ network into locations such as Africa
for the first time," said Jurgi Camblong, PhD., Chief Executive
Officer and Co-founder. "Beyond those achievements, I am especially
proud of our ability to continue to grow sustainably as we recorded
yet another quarter of notable bottom-line improvements with
adjusted operating loss improving 13% year-over year.”
Camblong added, "Looking forward to the rest of
2024, our team will remain laser-focused on onboarding the influx
of new customers who have adopted SOPHiA DDM™ over the past
two quarters, while also continuing to build off of the significant
momentum of our new Liquid Biopsy offering with the launch of
MSK-ACCESS® powered with SOPHiA DDM™.”
Business Highlights
Expanding usage of SOPHiA DDM™ worldwide
- Reached 463 core genomics customers as
of March 31, 2024, who use SOPHiA DDM™ regularly to analyze
cases of cancer and rare disease, up from 437 customers at the end
of Q1 2023
- Performed approximately 84,000
analyses on SOPHiA DDM™ in Q1 2024, representing 9%
year-over-year analysis volume growth or 11% growth when excluding
COVID-related analyses
- Officially launched the Liquid Biopsy
application, MSK-ACCESS® powered with SOPHiA DDM™, at the end of
April; Capitalized on strong market demand and signed 9 customers
pre-launch
Accelerating adoption of SOPHiA DDM™ by landing new
Clinical customers
- Landed 27 new core genomic customers
in Q1 2024 who will implement SOPHiA DDM™ over the next several
months, representing the second consecutive quarter of strong new
business growth
- Continued building momentum in the
U.S. market with 34% year-over-year analysis volume growth in Q1
2024, 27% year-over-year revenue growth, and the signing of major,
new U.S. healthcare institutions such as Mayo Clinic, one of the
top-ranked academic medical centers in the world, who is adopting
SOPHIA DDM™’s capabilities in Oncology starting with HemOnc
applications
- Added 3 new countries to the SOPHiA
DDM™ network with the signing of new customers in Romania,
Norway, and Nigeria
- Signed our first SOPHiA
DDM™ customer in Africa, with the addition of Syndicate Bio, a
precision medicine lab in Nigeria that aims to provide cancer
diagnosis and treatment to the over 1 million cancer patients in
Africa each year; Syndicate Bio is the first lab in Africa to adopt
MSK-ACCESS® powered with SOPHiA DDM™ as part of our monumental
collaboration with MSK and AstraZeneca, which aims to advance
health equity on a global scale by expanding access to
comprehensive cancer testing
- Continued gaining traction with the
U.K.’s National Health Service (“NHS”) with the signing of
Synnovis, a London-based lab providing services to the NHS, who
will be adopting SOPHiA DDM™’s new Liquid Biopsy applications
Leveraging SOPHiA DDM™ to deliver value to
BioPharma partners
- Finalized agreement with AstraZeneca
to sponsor the deployment of MSK-ACCESS® powered with SOPHiA
DDM™ to numerous institutions across the globe in 2024
- Signed our first ever Breast Cancer
Pilot project leveraging SOPHiA DDM™’s multimodal algorithms and
factories to identify predictive signatures of response to therapy
which could lead to better, more personalized treatment of patients
with advanced hormone-positive breast cancer
Growing sustainably by maintaining an obsession on
operational excellence
- Remained laser-focused on operational
excellence by improving adjusted operating loss 13% year-over-year
in Q1 2024 and maintaining adjusted gross margin above 70%
- Reaffirmed commitment to grow
sustainably and achieve adjusted operating profitability in the
next 2+ years
Strengthening our capital position to support
future growth initiatives
- Entered into a new, five-year senior
secured credit facility with Perceptive Advisors on May 2, 2024;
the agreement provides access of up to $50 million in debt
financing, consisting of an initial tranche of $15 million, and an
additional tranche of $35 million available for draw through March
2026
- Interest is payable in cash on the
outstanding principal amount at a per annual rate equal to the sum
of the higher of the applicable secured overnight financing rate
(“SOFR”) or the minimum floor rate of 4.00% plus 6.25%
- Under the terms of the agreement,
Perceptive has been issued warrants to purchase 400,000 shares of
the Company’s stock as of the closing date, with an exercise price
equal to the 10-day volume weighted average price (“VWAP”)
preceding the closing date. Warrants to purchase 200,000 shares
will be issued immediately, and warrants to purchase an additional
200,000 will be issued upon drawing of the subsequent tranche
2024 Financial Outlook
Based on information as of today, SOPHiA GENETICS
is reaffirming our previously provided guidance of:
- Revenue between $78 million and $81
million, representing growth of 25% to 30% compared to full year
2023 revenue
- Adjusted gross margin between 72.5%
and 72.7%, compared to 72.2% in FY 2023
- Adjusted operating loss between $45
million and $50 million, compared to $55.9 million in FY 2023
Other than with respect to revenue, the Company
only provides guidance on a non-IFRS basis. The Company does not
provide a reconciliation of forward-looking adjusted gross margin
(non-IFRS measure) to gross margin (the most comparable IFRS
financial measure), due to the inherent difficulty in forecasting
and quantifying amortization of capitalized research &
development expenses that are necessary for such reconciliation. In
addition, the Company does not provide a reconciliation of
forward-looking adjusted operating loss (non-IFRS measure) to
operating loss (the most comparable IFRS financial measure), due to
the inherent difficulty in forecasting and quantifying amortization
of capitalized research & development expenses and intangible
assets, share-based compensation expenses, and non-cash portion of
pensions paid in excess of actual contributions, that are necessary
for such reconciliation.
Earnings Call and Webcast
Information
SOPHiA GENETICS will host a conference call and
live webcast to discuss the first quarter 2024 results on Tuesday,
May 7, 2024, at 8:00 a.m. (08:00) Eastern Time / 2:00 p.m.
(14:00) Central European Time. The call will be webcast live on the
SOPHiA GENETICS Investor Relations website, ir.sophiagenetics.com.
Additionally, an audio replay of the conference call will be
available on the SOPHiA GENETICS website after its
completion.
Non-IFRS Financial Measures
To provide investors with additional information
regarding the company’s financial results, SOPHiA GENETICS has
disclosed here and elsewhere in this earnings release the following
non-IFRS measures:
- Adjusted gross profit, which the company calculates as revenue
minus cost of revenue adjusted to exclude amortization of
capitalized research and development expenses;
- Adjusted gross profit margin, which the company calculates as
adjusted gross profit as a percentage of revenue;
- Adjusted
operating loss, which the company calculates as operating loss
adjusted to exclude amortization of capitalized research and
development expenses, amortization of intangible assets,
share-based compensation expense, and non-cash portion of pensions
expense paid in excess of actual contributions to match the
actuarial expense.
These non-IFRS measures are key measures used by
SOPHiA GENETICS management and board of directors to evaluate its
operating performance and generate future operating plans. The
exclusion of certain expenses facilitates operating performance
comparability across reporting periods by removing the effect of
non-cash expenses and certain variable charges. Accordingly, the
company believes that these non-IFRS measures provide useful
information to investors and others in understanding and evaluating
its operating results in the same manner as its management and
board of directors.
These non-IFRS measures have limitations as
financial measures, and you should not consider them in isolation
or as a substitute for analysis of SOPHiA GENETICS’ results as
reported under IFRS. Some of these limitations are:
- These non-IFRS measures exclude the impact of amortization of
capitalized research and development expenses and intangible
assets. Although amortization is a non-cash charge, the assets
being amortized may need to be replaced in the future and these
non-IFRS measures do not reflect capital expenditure requirements
for such replacements or for new capital expenditures;
- These non-IFRS measures exclude the impact of share-based
compensation expenses. Share-based compensation has been, and will
continue to be for the foreseeable future, a recurring expense in
the company’s business and an important part of its compensation
strategy;
- These non-IFRS measures exclude the impact of the non-cash
portion of pensions paid in excess of actual contributions to match
actuarial expenses. Pension expenses have been, and will continue
to be for the foreseeable future, a recurring expense in the
business; and
- Other companies, including companies in the company’s industry,
may calculate these non-IFRS measures differently, which reduces
their usefulness as comparative measures.
Because of these limitations, you should
consider these non-IFRS measures alongside other financial
performance measures, including various cash flow metrics, net
income and other IFRS results.
The tables below provide the reconciliation of
the most comparable IFRS measures to the non-IFRS measures for the
periods presented.
Presentation of Constant Currency
Revenue and Excluding COVID-19-Related Revenue
SOPHiA GENETICS operates internationally, and
its revenues are generated primarily in the U.S. dollar, the euro
and Swiss franc and, to a lesser extent, British pound, Australian
dollar, Brazilian real, Turkish lira and Canadian dollar depending
on the company’s customers’ geographic locations. Changes in
revenue include the impact of changes in foreign currency exchange
rates. We present the non-IFRS financial measure “constant currency
revenue” (or similar terms such as constant currency revenue
growth) to show changes in revenue without giving effect to
period-to-period currency fluctuations. Under IFRS, revenues
received in local (non-U.S. dollar) currencies are translated into
U.S. dollars at the average monthly exchange rate for the month in
which the transaction occurred. When the company uses the term
“constant currency”, it means that it has translated local currency
revenues for the current reporting period into U.S. dollars using
the same average foreign currency exchange rates for the conversion
of revenues into U.S. dollars that we used to translate local
currency revenues for the comparable reporting period of the prior
year. The company then calculates the difference between the IFRS
revenue and the constant currency revenue to yield the “constant
currency impact” for the current period.
The company’s management and board of directors
use constant currency revenue growth to evaluate growth and
generate future operating plans. The exclusion of the impact of
exchange rate fluctuations provides comparability across reporting
periods and reflects the effects of customer acquisition efforts
and land-and-expand strategy. Accordingly, it believes that this
non-IFRS measure provides useful information to investors and
others in understanding and evaluating revenue growth in the same
manner as the management and board of directors. However, this
non-IFRS measure has limitations, particularly as the exchange rate
effects that are eliminated could constitute a significant element
of its revenue and could significantly impact performance and
prospects. Because of these limitations, you should consider this
non-IFRS measure alongside other financial performance measures,
including revenue and revenue growth presented in accordance with
IFRS and other IFRS results.
In addition to constant currency revenue, the
company presents constant currency revenue excluding
COVID-19-related revenue to further remove the effects of revenues
that are derived from sales of COVID-19-related offerings,
including a NGS assay for COVID-19 that leverages the SOPHiA DDM™
Platform and related products and solutions analytical capabilities
and COVID-19 bundled access products. SOPHiA GENETICS do not
believe that these revenues reflect its core business of
commercializing its platform because the company’s COVID-19
solution was offered to address specific market demand by its
customers for analytical capabilities to assist with their testing
operations. The company does not anticipate additional development
of its COVID-19-related solution as the pandemic transitions into a
more endemic phase and as customer demand continues to decline.
Further, COVID-19-related revenues did not constitute, and the
company does not expect COVID-19-related revenues to constitute in
the future, a significant part of its revenue. Accordingly, the
company believes that this non-IFRS measure provides useful
information to investors and others in understanding and evaluating
its revenue growth. However, this non-IFRS measure has limitations,
including that COVID-19-related revenues contributed to the
company’s cash position, and other companies may define
COVID-19-related revenues differently. Because of these
limitations, you should consider this non-IFRS measure alongside
other financial performance measures, including revenue and revenue
growth presented in accordance with IFRS and other IFRS
results.
The table below provides the reconciliation of
the most comparable IFRS growth measures to the non-IFRS growth
measures for the current period.
About SOPHiA GENETICS
SOPHiA GENETICS (Nasdaq: SOPH) is a cloud-native
healthcare technology company on a mission to expand access to
data-driven medicine by using AI to deliver world-class care to
patients with cancer and rare disorders across the globe. It is the
creator of SOPHiA DDM™, a platform that analyzes complex genomic
and multimodal data and generates real-time, actionable insights
for a broad global network of hospital, laboratory, and biopharma
institutions. For more information, visit
SOPHiAGENETICS.COM and connect with us on LinkedIn.
Forward-Looking Statements
This press release contains statements that
constitute forward-looking statements. All statements other than
statements of historical facts contained in this press release,
including statements regarding SOPHiA GENETICS future results of
operations and financial position, business strategy, products and
technology, partnerships and collaborations, as well as plans and
objectives of management for future operations, are forward-looking
statements. Forward-looking statements are based on SOPHiA
GENETICS’ management’s beliefs and assumptions and on information
currently available to the company’s management. Such statements
are subject to risks and uncertainties, and actual results may
differ materially from those expressed or implied in the
forward-looking statements due to various factors, including those
described in the company’s filings with the U.S. Securities and
Exchange Commission. No assurance can be given that such future
results will be achieved. Such forward-looking statements contained
in this press release speak only as of its date. We expressly
disclaim any obligation or undertaking to update these
forward-looking statements contained in this press release to
reflect any change in the company’s expectations or any change in
events, conditions, or circumstances on which such statements are
based, unless required to do so by applicable law. No
representations or warranties (expressed or implied) are made about
the accuracy of any such forward-looking statements.
SOPHiA GENETICS SAInterim Condensed
Consolidated Statements of Loss(Amounts in USD
thousands, except per share
data)(Unaudited) |
|
|
Three months ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
15,779 |
|
|
$ |
13,966 |
|
Cost of revenue |
|
(5,374 |
) |
|
|
(4,272 |
) |
Gross profit |
|
10,405 |
|
|
|
9,694 |
|
Research and development costs |
|
(9,391 |
) |
|
|
(9,334 |
) |
Selling and marketing costs |
|
(6,951 |
) |
|
|
(6,424 |
) |
General and administrative costs |
|
(12,825 |
) |
|
|
(13,242 |
) |
Other operating income, net |
|
6 |
|
|
|
19 |
|
Operating loss |
|
(18,756 |
) |
|
|
(19,287 |
) |
Interest income, net |
|
758 |
|
|
|
862 |
|
Foreign exchange gains (losses) |
|
4,610 |
|
|
|
(1,168 |
) |
Loss before income taxes |
|
(13,388 |
) |
|
|
(19,593 |
) |
Income tax expense |
|
(316 |
) |
|
|
(107 |
) |
Loss for the period |
|
(13,704 |
) |
|
|
(19,700 |
) |
Attributable to the owners of the parent |
|
(13,704 |
) |
|
|
(19,700 |
) |
|
|
|
|
Basic and diluted loss per share |
$ |
(0.21 |
) |
|
$ |
(0.31 |
) |
SOPHiA GENETICS SAInterim Condensed
Consolidated Statements of Comprehensive
Loss(Amounts in USD
thousands)(Unaudited) |
|
|
Three months ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Loss for the period |
$ |
(13,704 |
) |
|
$ |
(19,700 |
) |
Other comprehensive (loss) income: |
|
|
|
Items that may be reclassified to statement of loss (net of
tax) |
|
|
|
Currency translation differences |
|
(9,393 |
) |
|
|
1,971 |
|
Total items that may be reclassified to statement of
loss |
|
(9,393 |
) |
|
|
1,971 |
|
Items that will not be reclassified to statement of loss (net of
tax) |
|
|
|
Remeasurement of defined benefit plans |
|
(15 |
) |
|
|
(70 |
) |
Total items that will not be reclassified to statement of
loss |
|
(15 |
) |
|
|
(70 |
) |
Other comprehensive (loss) income for the
period |
$ |
(9,408 |
) |
|
$ |
1,901 |
|
Total comprehensive loss for the period |
$ |
(23,112 |
) |
|
$ |
(17,799 |
) |
Attributable to owners of the parent |
$ |
(23,112 |
) |
|
$ |
(17,799 |
) |
SOPHiA GENETICS SAInterim Condensed
Consolidated Balance Sheets(Amounts in USD
thousands)(Unaudited) |
|
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
103,735 |
|
|
$ |
123,251 |
|
Accounts receivable |
|
10,890 |
|
|
|
13,557 |
|
Inventory |
|
6,016 |
|
|
|
6,482 |
|
Prepaids and other current assets |
|
4,486 |
|
|
|
4,757 |
|
Total current assets |
|
125,127 |
|
|
|
148,047 |
|
Non-current assets |
|
|
|
Property and equipment |
|
6,583 |
|
|
|
7,469 |
|
Intangible assets |
|
26,294 |
|
|
|
27,185 |
|
Right-of-use assets |
|
14,714 |
|
|
|
15,635 |
|
Deferred tax assets |
|
1,716 |
|
|
|
1,720 |
|
Other non-current assets |
|
5,824 |
|
|
|
6,100 |
|
Total non-current assets |
|
55,131 |
|
|
|
58,109 |
|
Total assets |
$ |
180,258 |
|
|
$ |
206,156 |
|
Liabilities and equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
6,245 |
|
|
$ |
5,391 |
|
Accrued expenses |
|
12,908 |
|
|
|
17,808 |
|
Deferred contract revenue |
|
8,336 |
|
|
|
9,494 |
|
Lease liabilities, current portion |
|
2,704 |
|
|
|
2,928 |
|
Total current liabilities |
|
30,193 |
|
|
|
35,621 |
|
Non-current liabilities |
|
|
|
Lease liabilities, net of current portion |
|
14,738 |
|
|
|
15,673 |
|
Defined benefit pension liabilities |
|
2,971 |
|
|
|
3,086 |
|
Other non-current liabilities |
|
124 |
|
|
|
334 |
|
Total non-current liabilities |
|
17,833 |
|
|
|
19,093 |
|
Total liabilities |
|
48,026 |
|
|
|
54,714 |
|
Equity |
|
|
|
Share capital |
|
4,048 |
|
|
|
4,048 |
|
Share premium |
|
472,031 |
|
|
|
471,846 |
|
Treasury share |
|
(638 |
) |
|
|
(646 |
) |
Other reserves |
|
48,279 |
|
|
|
53,978 |
|
Accumulated deficit |
|
(391,488 |
) |
|
|
(377,784 |
) |
Total equity |
|
132,232 |
|
|
|
151,442 |
|
Total liabilities and equity |
$ |
180,258 |
|
|
$ |
206,156 |
|
SOPHiA GENETICS SAInterim Condensed
Consolidated Statements of Cash Flows(Amounts in
USD thousands)(Unaudited) |
|
|
Three months ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
Loss before tax |
$ |
(13,388 |
) |
|
$ |
(19,593 |
) |
Adjustments for non-monetary items |
|
|
|
Depreciation |
|
1,158 |
|
|
|
1,284 |
|
Amortization |
|
901 |
|
|
|
606 |
|
Finance (income) expense, net |
|
(5,046 |
) |
|
|
169 |
|
Expected credit loss allowance |
|
(48 |
) |
|
|
638 |
|
Share-based compensation |
|
3,714 |
|
|
|
2,430 |
|
Movements in provisions and pensions |
|
(135 |
) |
|
|
349 |
|
Research tax credit |
|
(104 |
) |
|
|
(451 |
) |
Working capital changes |
|
|
|
Decrease (Increase) in accounts receivable |
|
2,168 |
|
|
|
(3,169 |
) |
Increase in prepaids and other assets |
|
(182 |
) |
|
|
(859 |
) |
Decrease in inventory |
|
376 |
|
|
|
876 |
|
(Decrease) Increase in accounts payables, accrued expenses,
deferred contract revenue, and other liabilities |
|
(4,058 |
) |
|
|
2,062 |
|
Cash used in operating activities |
|
(14,644 |
) |
|
|
(15,658 |
) |
Income tax paid |
|
(1 |
) |
|
|
(121 |
) |
Interest paid |
|
(147 |
) |
|
|
(5 |
) |
Interest received |
|
953 |
|
|
|
995 |
|
Net cash flows used in operating activities |
|
(13,839 |
) |
|
|
(14,789 |
) |
Investing activities |
|
|
|
Purchase of property and equipment |
|
(99 |
) |
|
|
(508 |
) |
Acquisition of intangible assets |
|
(50 |
) |
|
|
(284 |
) |
Capitalized development costs |
|
(1,809 |
) |
|
|
(935 |
) |
Proceeds upon maturity of term deposits |
|
— |
|
|
|
16,213 |
|
Net cash flow (used in) provided from investing
activities |
|
(1,958 |
) |
|
|
14,486 |
|
Financing activities |
|
|
|
Proceeds from exercise of share options |
|
188 |
|
|
|
151 |
|
Capitalized borrowing transaction costs |
|
(49 |
) |
|
|
— |
|
Payments of principal portion of lease liabilities |
|
(735 |
) |
|
|
(1,086 |
) |
Net cash flow used in financing activities |
|
(596 |
) |
|
|
(935 |
) |
Decrease in cash and cash equivalents |
|
(16,393 |
) |
|
|
(1,238 |
) |
Effect of exchange differences on cash balances |
|
(3,123 |
) |
|
|
695 |
|
Cash and cash equivalents at beginning of the year |
|
123,251 |
|
|
|
161,305 |
|
Cash and cash equivalents at end of the
period |
$ |
103,735 |
|
|
$ |
160,762 |
|
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, |
|
|
2024 |
|
|
|
2023 |
|
|
Growth |
IFRS revenue |
$ |
15,779 |
|
|
$ |
13,966 |
|
|
|
13 |
% |
Current period constant currency impact |
|
(184 |
) |
|
|
— |
|
|
|
Constant currency revenue |
$ |
15,595 |
|
|
$ |
13,966 |
|
|
|
12 |
% |
COVID-19-related revenue |
|
(35 |
) |
|
|
(125 |
) |
|
|
Constant currency impact on COVID-19-related revenue |
|
2 |
|
|
|
— |
|
|
|
Constant currency revenue excluding COVID-19-related
revenue |
$ |
15,562 |
|
|
$ |
13,841 |
|
|
|
12 |
% |
SOPHiA GENETICS SAReconciliation of IFRS
to Adjusted Gross Profit and Gross Profit
Margin(Amounts in USD thousands, except
percentages)(Unaudited) |
|
|
Three months ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
15,779 |
|
|
$ |
13,966 |
|
Cost of revenue |
|
(5,374 |
) |
|
|
(4,272 |
) |
Gross profit |
$ |
10,405 |
|
|
$ |
9,694 |
|
Amortization of capitalized research and development
expenses(1) |
|
727 |
|
|
|
432 |
|
Adjusted gross profit |
$ |
11,132 |
|
|
$ |
10,126 |
|
|
|
|
|
Gross profit margin |
|
66 |
% |
|
|
69 |
% |
Amortization of capitalized research and development
expenses(1) |
|
5 |
% |
|
|
4 |
% |
Adjusted gross profit margin |
|
71 |
% |
|
|
73 |
% |
SOPHiA GENETICS SAReconciliation of IFRS
to Adjusted Operating Loss for the Period(Amounts
in USD thousands)(Unaudited) |
|
|
Three months ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Operating loss |
$ |
(18,756 |
) |
|
$ |
(19,287 |
) |
Amortization of capitalized research & development
expenses(1) |
|
727 |
|
|
|
432 |
|
Amortization of intangible assets(2) |
|
174 |
|
|
|
173 |
|
Share-based compensation expense(3) |
|
3,714 |
|
|
|
2,430 |
|
Non-cash pension expense(4) |
|
77 |
|
|
|
78 |
|
Adjusted operating loss |
$ |
(14,064 |
) |
|
$ |
(16,174 |
) |
SOPHiA GENETICS SAReconciliation of IFRS
to Adjusted Operating Lossfor the fourth quarter
and fiscal year 2023(Amounts in USD
thousands)(Unaudited) |
|
|
Three months ended |
|
Year ended |
|
December 31, 2023 |
Operating loss |
$ |
(18,946 |
) |
|
$ |
(74,826 |
) |
Amortization of capitalized research & development
expenses(1) |
|
619 |
|
|
|
2,099 |
|
Amortization of intangible assets(2) |
|
193 |
|
|
|
729 |
|
Share-based compensation expense(3) |
|
4,211 |
|
|
|
15,247 |
|
Non-cash pension expense(4) |
|
(625 |
) |
|
|
(394 |
) |
Costs associated with restructuring(5) |
|
1,232 |
|
|
|
1,232.00 |
|
Adjusted operating loss |
$ |
(13,316 |
) |
|
$ |
(55,913 |
) |
Notes to the
Reconciliation of IFRS to Adjusted Financial Measures
Tables |
|
|
(1) |
Amortization of capitalized research and development expenses
consists of software development costs amortized using the
straight-line method over an estimated life of five years. These
expenses do not have a cash impact but remain a recurring expense
generated over the course of our research and development
initiatives. |
|
|
(2) |
Amortization of intangible assets consists of costs related to
intangible assets amortized over the course of their useful lives.
These expenses do not have a cash impact, but we could continue to
generate such expenses through future capital investments. |
|
|
(3) |
Share-based compensation expense represents the cost of equity
awards issued to our directors, officers, and employees. The fair
value of awards is computed at the time the award is granted and is
recognized over the vesting period of the award by a charge to the
income statement and a corresponding increase in other reserves
within equity. These expenses do not have a cash impact but remain
a recurring expense for our business and represent an important
part of our overall compensation strategy. |
|
|
(4) |
Non-cash pension expense consists of the amount recognized in
excess of actual contributions made to our defined pension plans to
match actuarial expenses calculated for IFRS purposes. The
difference represents a non-cash expense but remains a recurring
expense for our business as we continue to make contributions to
our plans for the foreseeable future. |
|
|
(5) |
Costs associated with restructuring consists of compensation
paid to employees during their garden leave period, severance, and
any other amounts legally owed to the employees resulting from
their termination as part of a planned workforce reduction, which
we undertook to optimize our operations. Additionally, it includes
any legal fees incurred as part of the restructuring process. While
such actions are not planned going forward as part of our regular
operations, we expect such expenses could still be incurred from
time to time based on corporate needs. |
Investor Contact:
Kellen Sanger
IR@sophiagenetics.com
Media Contact:
Kelly Katapodis
media@sophiagenetics.com
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