SOPHiA GENETICS : Reports Second Quarter 2021 Financial Results and Issues 2021 Guidance

SOPH

BOSTON and LAUSANNE, Switzerland, Sept. 09, 2021 (GLOBE NEWSWIRE) -- SOPHiA GENETICS SA (NASDAQ: SOPH), today reported financial results for the three months ended June 30, 2021.

Recent Highlights

“We had solid execution across our business during the second quarter, growing top line revenue more than 70% over the prior year period,” said Jurgi Camblong, Co-Founder and CEO of SOPHiA GENETICS. “I am encouraged by our growing customer base as well as the increasing enthusiasm around for the impacts data driven medicine can have on patient outcomes. Overall, I am so proud of what we have achieved at SOPHiA and even more excited for what lies ahead. We are committed to unlocking data siloes, leveraging AI to generate actionable insights from data, and helping healthcare professionals work together as a community and deploy their collective expertise for the benefit of patients around the world.”

Second Quarter 2021 Financial Results

Total revenue for the second quarter of 2021 was $10.2 million compared to $5.9 million for the second quarter of 2020, representing a 72% increase. This increase was primarily driven by new customers onboarded onto the platform and improved usage rates across existing customers as COVID-19 related restrictions loosened.

Gross profit in the second quarter of 2021 was $6.2 million, an increase of 57% compared to a gross profit of $4.0 million in the second quarter of 2020. Gross profit margin was 61% in the second quarter of 2021 as compared to 67% in the second quarter of 2020. The decline in gross margin was primarily attributable to increased computational and storage-related costs and negative FX movement. Adjusted gross profit was $6.3 million, and adjusted gross margin was 62% in the second quarter of 2021 after adjusting for the amortization of capitalized research and development expenses, which is expected to grow over time as SOPHiA expands its research and development efforts.

Total operating expenses for the second quarter of 2021 were $22.2 million compared to $11.0 million dollars in the second quarter of 2020. This increase in operating expenses was primarily attributable to increases in employee-related expenses for R&D initiatives related to the development of new products, increased sales momentum as COVID-19 restrictions loosened, and continued scale-up of the Company. Other contributing factors include increased commissions and sales-related costs, development of quality-related initiatives to support a potential expansion into more regulated markets, and IPO-related expenses.

Operating loss in the second quarter of 2021 was $15.9 million, compared to $7.0 million in the second quarter of 2020. Adjusted operating loss in the second quarter of 2021 was $14.3 million, compared to $6.4 million in the second quarter of 2020.

Net loss in the second quarter of 2021 was $18.4 million, compared to $7.9 million in the second quarter of 2020. Net loss per share was $0.38 in the second quarter of 2021, as compared to $0.20 in the second quarter of 2020. Adjusted net loss in the second quarter of 2021 was 15.0 million compared to $7.0 million in the second quarter of 2020. Adjusted net loss per share was $0.31 in the second quarter of 2021, as compared to $0.18 in the second quarter of 2020.

Cash and cash equivalents, including term deposits, were approximately $64 million as of June 30, 2021. After quarter end, the Company priced its IPO and began trading on July 23, 2021, raising approximately $243 million of gross proceeds, yielding approximately $217 million in net proceeds. Concurrent with the IPO, the Company raised an additional $20 million in gross proceeds upon the completion of a private placement investment from an affiliate of GE Healthcare.

2021 Outlook

SOPHiA Genetics expects full year revenue for 2021 to be greater than $39 million, representing growth of over 37% compared to the prior year period.

Webcast and Conference Call Information

SOPHiA GENETICS will host a conference call to discuss the second quarter 2021 financial results, business developments and outlook before market open on Thursday, September 9, 2021 at 8:30 AM Eastern Time / 5:30 AM Pacific Time. Live audio of the webcast will be available on the “Investors” section of the Company website at: ir.sophiagenetics.com.

About SOPHiA GENETICS

SOPHiA GENETICS is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™ Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. The SOPHiA DDM™ Platform and related solutions, products and services are currently used by more than 780 hospital, laboratory, and biopharma institutions globally.

More info: SOPHiAGENETICS.COM; follow @SOPHiAGENETICS on Twitter.

Non-IFRS Financial Measures

To provide investors with additional information regarding our financial results, we have disclosed here and elsewhere in this earnings release the following non-IFRS measures:

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:

Because of these limitations, you should consider these non-IFRS measures alongside other financial performance measures, including various cash flow metrics, net income and our other IFRS results.

The tables below provide the reconciliation of the most comparable IFRS measures to the non-IFRS measures for the periods presented.

Forward-Looking 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, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in our filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this document speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in our expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Media Contact:[email protected]

Investor Contact:[email protected]

SOPHiA GENETICS SAInterim Condensed Consolidated Statement of Loss(Amounts in USD thousands, except per share data)(Unaudited)

SOPHiA GENETICS SAInterim Condensed Consolidated Statement of Comprehensive Loss(Amounts in USD thousands)(Unaudited)

SOPHiA GENETICS SAInterim Condensed Consolidated Balance Sheet(Amounts in USD thousands)

SOPHiA GENETICS SAInterim Condensed Consolidated Statement of Cash Flows(Amounts in USD thousands)(Unaudited)

SOPHiA GENETICS SA

Reconciliation of IFRS to Adjusted Cost of Revenue(Amounts in USD thousands)(Unaudited)

Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin(Amounts in USD thousands, except percentages)(Unaudited)

SOPHiA GENETICS SA

Reconciliation of IFRS to Adjusted Operating Loss(Amounts in USD thousands)(Unaudited)

Reconciliation of IFRS to Adjusted Finance Income (Expense), Net(Amounts in USD thousands)(Unaudited)

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)

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 remain a recurring expense for our business as we continue to make contributions to our plans for the foreseeable future.

(5) 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.

(6) 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 are obligated to pay the fee in cash but upon payment, we will cease to incur the associated expenses.

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