Artificial Intelligence
SOPHiA GENETICS Reports Financial Results for the Second Quarter of Fiscal 2023
BOSTON and ROLLE, Switzerland, Aug. 08, 2023 (GLOBE NEWSWIRE) — SOPHiA GENETICS SA (Nasdaq: SOPH), a cloud-native software company and a leader in data-driven medicine, today reported financial results for the second quarter ended June 30, 2023.
Recent Highlights
- Revenue for the second quarter of 2023 was $15.1 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 30%.
- Gross margins were 67% on a reported basis and 70% on an adjusted basis for the second quarter of 2023.
- Operating loss in the second quarter of 2023 on a reported basis was $20.0 million and a $14.6 million loss on an adjusted basis, representing an improvement from the second quarter of 2022 of 17% year-over-year on an IFRS basis and 25% year-over-year on an adjusted basis.
- Continued adoption of SOPHiA DDM™ in clinical markets globally has enabled our analysis volume in the second quarter of 2023 to grow to a record 78,146 analyses representing year-over-year growth of 18%, while volume excluding COVID-19-related analysis grew 27% year-over-year.
- 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 year-over-year constant currency ex. COVID-19 revenue growth of 30% in the second quarter of 2023 as we performed over 78,000 analyses and continued to demonstrate our leadership in the area of technology agnostic artificial intelligence (AI) software for genomic and multimodal analysis. We signed 16 new logos in the quarter, further expanding the size of our network, and today I am excited to share with you two prominent new logos; the Peter MacCallum Cancer Center (Peter Mac), a leading cancer center in Australia, and Tulane University School of Medicine, one of the oldest medical schools in the United States, are each joining our cloud-based bioinformatics network,” said Jurgi Camblong, PhD., Chief Executive Officer and Co-founder of SOPHiA GENETICS. “I am proud of our second quarter new customer wins, our robust analyses and revenue growth. Our team delivered this strong performance while again maintaining outstanding fiscal discipline, resulting in meaningful improvement in cash utilization from the prior year period.”
Ecosystem Update
Today, SOPHiA GENETICS announced that Tulane University School of Medicine based in New Orleans went live on SOPHiA DDM™ technology. Tulane, one of the oldest medical schools in the United States, has a longstanding history of medical research and education and is looking to scale its hematologic (blood) testing program and advance blood cancer research. They chose SOPHiA DDM™ at the time of the upgrade of their heme panel sequencing platform because of the analytical performance and faster turnaround time that SOPHiA DDM™ offers. The SOPHiA DDM™ Platform will enable Tulane University School of Medicine to quickly sort and analyze NGS data, identify key biomarkers, and aid in stratification so that researchers can share data-based recommendations with clinical researchers who are fighting the over 100 types of often quickly progressing blood cancers.
During the quarter, SOPHiA GENETICS announced that it had joined CancerX as a founding member to help accelerate cancer research. CancerX was announced by the White House in February 2023 as part of the reignited national Cancer Moonshot initiative. SOPHiA GENETICS joins alongside other founding members such as the Moffitt Cancer Center and Memorial Sloan Kettering and looks forward to contributing to the inaugural project of improving equity and reducing cost in cancer treatments.
Annual General Meeting Update
On June 26th, at the company’s Annual General Meeting of shareholders at its headquarters in Rolle, Switzerland, the shareholders approved the re-election of the Board members who were up for re-election as well as the new appointment of Lila Tretikov. Lila is Deputy Chief Technology Officer at Microsoft, where she previously served as Corporate Vice President in artificial intelligence (AI). Before joining Microsoft, Tretikov was CEO and Vice Chair of Terrawatt for two years and served as CEO of Wikipedia and Wikimedia.
Second Quarter Financial Results
Total revenue for the second quarter of 2023 was $15.1 million compared to $11.7 million for the second quarter of 2022, representing year-over-year growth of 29%. Constant currency revenue growth was 27%, and constant currency revenue growth excluding COVID-19-related revenue was 30%.
Platform analysis volume, including volume from integrated access customers, increased to 78,146 analyses for the second quarter of 2023 compared to 66,165 analyses for the second quarter of 2022. The year-over-year growth of 18% was attributable to growth in the core platform analysis volume, partially offset by the continued decline of COVID-19-related analysis volume. Excluding COVID-related volumes, platform analysis volumes were 77,125 for the second quarter of 2023 compared to 60,636 in the second quarter of 2022, representing 27% year-over-year growth.
Gross profit for the second quarter of 2023 was $10.0 million compared to gross profit of $7.6 million in the second quarter of 2022, representing year-over-year growth of 32%. Gross margin was 67% for the second quarter of 2023 compared with 65% for the second quarter of 2022. Adjusted gross profit was $10.5 million, an increase of 34% compared to adjusted gross profit of $7.9 million in the second quarter of 2022. Adjusted gross margin was 70% for the second quarter of 2023 compared to 67% for the second quarter of 2022.
Total operating expenses for the second quarter of 2023 were $30.1 million compared to $31.7 million for the second quarter of 2022.
R&D expenses for the second quarter of 2023 were $8.9 million compared to $9.0 million for the second quarter of 2022.
Sales and marketing expenses for the second quarter of 2023 were $7.2 million compared to $8.2 million for the second quarter of 2022.
General and administrative expenses for the second quarter of 2023 were $14.0 million dollars compared to $14.7 million for the second quarter of 2022.
Operating loss for the second quarter of 2023 was $20.0 million compared to $24.1 million in the second quarter of 2022. Adjusted operating loss for the second quarter of 2023 was $14.6 million compared to $19.6 million for the second quarter of 2022.
Net loss for the second quarter of 2023 was $21.4 million or $0.33 per share compared to $24.7 million or $0.39 per share in the second quarter of 2022.
Cash and cash equivalents were $148.6 million as of June 30, 2023.
2023 Outlook
The company is reaffirming its previously provided guidance of:
- full-year reported revenue growth expected to be at or above 30%;
- full-year constant currency revenue growth excluding COVID-19-related revenue expected to be between 30% and 35%; and
- 2023 operating losses expected 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 second quarter of 2023 financial results as well as business outlook on Tuesday, August 8, 2023, at 8:00 a.m. (08:00) Eastern Time / 2:00 p.m. (14:00) 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 1-800-715-9871 (United States) or 1-646-307-1963 (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 SA (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 DDM™ Platform, a cloud-native 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 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 DDMTM 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.
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.
Investor Contact
Katherine Bailon
VP, Investor Relations
[email protected]
Media Contact
Kelly Katapodis
Senior Manager, Media & Communications
[email protected]
| SOPHiA GENETICS SA | ||||||||||||||||
| Interim Condensed Consolidated Statements of Loss | ||||||||||||||||
| (Amounts in USD thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 15,054 | $ | 11,667 | $ | 29,020 | $ | 22,528 | ||||||||
| Cost of revenue | (5,007 | ) | (4,047 | ) | (9,279 | ) | (8,197 | ) | ||||||||
| Gross profit | 10,047 | 7,620 | 19,741 | 14,331 | ||||||||||||
| Research and development costs | (8,891 | ) | (8,990 | ) | (18,225 | ) | (18,465 | ) | ||||||||
| Selling and marketing costs | (7,203 | ) | (8,235 | ) | (13,627 | ) | (16,099 | ) | ||||||||
| General and administrative costs | (14,041 | ) | (14,697 | ) | (27,283 | ) | (29,078 | ) | ||||||||
| Other operating income, net | 41 | 223 | 60 | 211 | ||||||||||||
| Operating loss | (20,047 | ) | (24,079 | ) | (39,334 | ) | (49,100 | ) | ||||||||
| Finance expense, net | (1,276 | ) | (608 | ) | (1,582 | ) | (841 | ) | ||||||||
| Loss before income taxes | (21,323 | ) | (24,687 | ) | (40,916 | ) | (49,941 | ) | ||||||||
| Income tax (expense) benefit | (73 | ) | 6 | (180 | ) | (227 | ) | |||||||||
| Loss for the period | (21,396 | ) | (24,681 | ) | (41,096 | ) | (50,168 | ) | ||||||||
| Attributable to the owners of the parent | (21,396 | ) | (24,681 | ) | (41,096 | ) | (50,168 | ) | ||||||||
| Basic and diluted loss per share | $ | (0.33 | ) | $ | (0.39 | ) | $ | (0.64 | ) | $ | (0.78 | ) | ||||
| SOPHiA GENETICS SA | ||||||||||||||||
| Interim Condensed Consolidated Statements of Comprehensive Loss | ||||||||||||||||
| (Amounts in USD thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Loss for the period | $ | (21,396 | ) | $ | (24,681 | ) | $ | (41,096 | ) | $ | (50,168 | ) | ||||
| Other comprehensive income (loss): | ||||||||||||||||
| Items that may be reclassified to statement of loss (net of tax) | ||||||||||||||||
| Currency translation differences | 3,680 | (5,028 | ) | 5,651 | (6,989 | ) | ||||||||||
| Total items that may be reclassified to statement of loss | 3,680 | (5,028 | ) | 5,651 | (6,989 | ) | ||||||||||
| Items that will not be reclassified to statement of loss (net of tax) | ||||||||||||||||
| Remeasurement of defined benefit plans | (226 | ) | 1,336 | (296 | ) | 1,764 | ||||||||||
| Total items that will not be reclassified to statement of loss | (226 | ) | 1,336 | (296 | ) | 1,764 | ||||||||||
| Other comprehensive income (loss) for the period | $ | 3,454 | $ | (3,692 | ) | $ | 5,355 | $ | (5,225 | ) | ||||||
| Total comprehensive loss for the period | $ | (17,942 | ) | $ | (28,373 | ) | $ | (35,741 | ) | $ | (55,393 | ) | ||||
| Attributable to owners of the parent | $ | (17,942 | ) | $ | (28,373 | ) | $ | (35,741 | ) | $ | (55,393 | ) | ||||
| SOPHiA GENETICS SA | ||||||||
| Interim Condensed Consolidated Balance Sheets | ||||||||
| (Amounts in USD thousands) | ||||||||
| (Unaudited) | ||||||||
| June 30, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 148,552 | $ | 161,305 | ||||
| Term deposits | — | 17,307 | ||||||
| Accounts receivable | 9,847 | 6,649 | ||||||
| Inventory | 5,458 | 5,156 | ||||||
| Prepaids and other current assets | 4,708 | 5,838 | ||||||
| Total current assets | 168,565 | 196,255 | ||||||
| Non-current assets | ||||||||
| Property and equipment | 7,685 | 7,129 | ||||||
| Intangible assets | 22,818 | 19,963 | ||||||
| Right-of-use assets | 16,347 | 14,268 | ||||||
| Deferred tax assets | 1,964 | 1,940 | ||||||
| Other non-current assets | 5,824 | 4,283 | ||||||
| Total non-current assets | 54,638 | 47,583 | ||||||
| Total assets | $ | 223,203 | $ | 243,838 | ||||
| Liabilities and equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 6,553 | $ | 6,181 | ||||
| Accrued expenses | 13,795 | 14,505 | ||||||
| Deferred contract revenue | 7,734 | 3,434 | ||||||
| Lease liabilities, current portion | 3,466 | 2,690 | ||||||
| Total current liabilities | 31,548 | 26,810 | ||||||
| Non-current liabilities | ||||||||
| Lease liabilities, net of current portion | 16,358 | 14,053 | ||||||
| Defined benefit pension liabilities | 3,420 | 2,675 | ||||||
| Other non-current liabilities | 175 | 170 | ||||||
| Total non-current liabilities | 19,953 | 16,898 | ||||||
| Total liabilities | 51,501 | 43,708 | ||||||
| Equity | ||||||||
| Share capital | 4,048 | 3,464 | ||||||
| Share premium | 471,827 | 471,623 | ||||||
| Treasury shares | (657 | ) | (117 | ) | ||||
| Other reserves | 36,383 | 23,963 | ||||||
| Accumulated deficit | (339,899 | ) | (298,803 | ) | ||||
| Total equity | 171,702 | 200,130 | ||||||
| Total liabilities and equity | $ | 223,203 | $ | 243,838 | ||||
| SOPHiA GENETICS SA | ||||||||
| Interim Condensed Consolidated Statements of Cash Flows | ||||||||
| (Amounts in USD thousands) | ||||||||
| (Unaudited) | ||||||||
| Six months ended June 30, | ||||||||
| 2023 | 2022 | |||||||
| Operating activities | ||||||||
| Loss before tax | $ | (40,916 | ) | $ | (49,941 | ) | ||
| Adjustments for non-monetary items | ||||||||
| Depreciation | 2,873 | 1,778 | ||||||
| Amortization | 1,281 | 797 | ||||||
| Finance expense, net | 1,394 | 219 | ||||||
| Expected credit loss allowance | 123 | 158 | ||||||
| Share-based compensation | 7,106 | 7,360 | ||||||
| Movements in provisions and pensions | 478 | 386 | ||||||
| Research tax credit | (600 | ) | (732 | ) | ||||
| Working capital changes | ||||||||
| Increase in accounts receivable | (834 | ) | (791 | ) | ||||
| (Increase) Decrease in prepaids and other assets | (1,061 | ) | 474 | |||||
| Increase in inventory | (268 | ) | (284 | ) | ||||
| Increase in accounts payables, accrued expenses, deferred contract revenue, and other liabilities | 3,749 | 3,543 | ||||||
| Cash used in operating activities | (26,675 | ) | (37,033 | ) | ||||
| Income tax paid | (676 | ) | — | |||||
| Interest paid | (5 | ) | (67 | ) | ||||
| Interest received | 2,243 | 155 | ||||||
| Net cash flows used in operating activities | (25,113 | ) | (36,945 | ) | ||||
| Investing activities | ||||||||
| Purchase of property and equipment | (1,246 | ) | (1,266 | ) | ||||
| Acquisition of intangible assets | (788 | ) | (1,009 | ) | ||||
| Capitalized development costs | (2,842 | ) | (2,774 | ) | ||||
| Proceeds upon maturity of term deposits | 17,546 | 42,337 | ||||||
| Purchase of term deposits | — | (10,585 | ) | |||||
| Net cash flow provided from investing activities | 12,670 | 26,703 | ||||||
| Financing activities | ||||||||
| Proceeds from exercise of share options | 207 | 759 | ||||||
| Payments of principal portion of lease liabilities | (1,761 | ) | (938 | ) | ||||
| Net cash flow used in financing activities | (1,554 | ) | (179 | ) | ||||
| Decrease in cash and cash equivalents | (13,997 | ) | (10,421 | ) | ||||
| Effect of exchange differences on cash balances | 1,244 | (3,640 | ) | |||||
| Cash and cash equivalents at beginning of the year | 161,305 | 192,962 | ||||||
| Cash and cash equivalents at end of the period | $ | 148,552 | $ | 178,901 | ||||
| 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, except for %) | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
| 2023 | 2022 | Growth | 2023 | 2022 | Growth | |||||||||||||||||
| IFRS revenue | $ | 15,054 | $ | 11,667 | 29 | % | $ | 29,020 | $ | 22,528 | 29 | % | ||||||||||
| Current period constant currency impact | (202 | ) | — | 416 | — | |||||||||||||||||
| Constant currency revenue | $ | 14,852 | $ | 11,667 | 27 | % | $ | 29,436 | $ | 22,528 | 31 | % | ||||||||||
| COVID-19-related revenue | (72 | ) | (292 | ) | (197 | ) | (623 | ) | ||||||||||||||
| Constant currency impact on COVID-19-related revenue | (8 | ) | — | (3 | ) | — | ||||||||||||||||
| Constant currency revenue excluding COVID-19-related revenue | $ | 14,772 | $ | 11,375 | 30 | % | $ | 29,236 | $ | 21,905 | 33 | % | ||||||||||
| SOPHiA GENETICS SA | |||||||||||||||||
| Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin | |||||||||||||||||
| (Amounts in USD thousands, except percentages) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||
| Revenue | $ | 15,054 | $ | 11,667 | $ | 29,020 | $ | 22,528 | |||||||||
| Cost of revenue | (5,007 | ) | (4,047 | ) | (9,279 | ) | (8,197 | ) | |||||||||
| Gross profit | $ | 10,047 | $ | 7,620 | $ | 19,741 | $ | 14,331 | |||||||||
| Amortization of capitalized research and development expenses(1) | 496 | 253 | 928 | 451 | |||||||||||||
| Adjusted gross profit | $ | 10,543 | $ | 7,873 | $ | 20,669 | $ | 14,782 | |||||||||
| Gross profit margin | 67 | % | 65 | % | 68 | % | 64 | % | |||||||||
| Amortization of capitalized research and development expenses(1) | 3 | % | 2 | % | 3 | % | 2 | % | |||||||||
| Adjusted gross profit margin | 70 | % | 67 | % | 71 | % | 66 | % | |||||||||
| SOPHiA GENETICS SA | ||||||||||||||||
| Reconciliation of IFRS to Adjusted Operating Loss for the Period | ||||||||||||||||
| (Amounts in USD thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating loss | $ | (20,047 | ) | $ | (24,079 | ) | $ | (39,334 | ) | $ | (49,100 | ) | ||||
| Amortization of capitalized research & development expenses (1) | 496 | 253 | 928 | 451 | ||||||||||||
| Amortization of intangible assets(2) | 179 | 188 | 352 | 346 | ||||||||||||
| Share-based compensation expense(3) | 4,676 | 3,889 | 7,106 | 7,360 | ||||||||||||
| Non-cash pension expense(4) | 84 | 178 | 162 | 372 | ||||||||||||
| Adjusted operating loss | $ | (14,612 | ) | $ | (19,571 | ) | $ | (30,786 | ) | $ | (40,571 | ) | ||||
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.
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ComplyCube Unveils No-ID Age Estimation to Address Growing Global Age-Restriction Regulations
SAN FRANCISCO, Oct. 2, 2023 /PRNewswire/ — ComplyCube, the global Identity Verification (IDV) platform, has launched a new Age Estimation feature to safeguard minors online and protect the vulnerable. The new capability complements its existing IDV-based Age Verification solution, offering an alternative to businesses that require a lower level of identity assurance.
The AI company says the new solution leverages advanced biometric technology to derive dependable age estimations from a single selfie in seconds. The bias-tested algorithm also examines the selfie for liveness signals to prevent presentation attacks, including screen replays, 3D masks, and deepfakes.
Furthermore, the new service boasts privacy-by-design capabilities, such as configurable automatic redaction for selfies customizable per jurisdictional regulations or use cases. This makes the service ideal for seamless age-gating across the globe while adding an extra layer of protection against spoofing.
“Our multi-step pipeline and data-centric approach have enabled us to tackle ethnic, genetic, age, and gender variance to provide our clients with a fair and robust age estimation,” explains Harry Varatharasan, Chief Data Scientist of ComplyCube.
The introduction of the new features comes as concerns mount over the ease with which minors can access inappropriate digital content. While some age-verification measures have been put in place, they are disturbingly simple to evade, especially when they are based solely on entering a birth date or are vulnerable to Virtual Private Network (VPN) manipulation. A UK-based study reports that 23% of minors say they can easily sidestep such VPN limitations, while another study highlights that a staggering 56% of children aged 11 to 16 have encountered explicit material online.
In response to these growing concerns, various jurisdictions are introducing robust regulatory frameworks aimed at mandating more rigorous age-verification procedures to enhance the safety of minors online. Key legislative efforts include the UK’s Online Safety Bill, the European Union’s Digital Services Act, and California’s Age-Appropriate Design Code Act. These laws aim to establish stricter guidelines and obligations for digital platforms, thereby creating a safer online environment for younger users.
Dr. Tarek Nechma, CEO of ComplyCube, adds that “the launch of our Age Estimation feature emphasizes our pledge to ensure that minors are shielded from content beyond their years while streamlining user experience for all and building trust at scale.”
Beyond its primary goal of safeguarding children online, the feature provides additional benefits to companies operating in regulated industries that fall under a lower level of scrutiny than financial institutions. Dating apps, e-commerce, gambling, gaming, and similar businesses can now:
Enhance User Experience: Age estimation streamlines age checks, promoting faster onboarding and better retention.Simplify Regulatory Adherence: Industries can effortlessly meet age-specific regulations, safeguarding their reputation and reducing legal risks.Ensure Data Minimization and Privacy: Estimating age masks or limits sensitive data collection, aligning with top-tier data protection standards.ComplyCube’s new Age Estimation solution offers a more streamlined approach to age verification. By reducing obstacles for users and enhancing conversion rates, it brings a balance of efficiency and trust. The one-stop-shop IDV platform also underscores its commitment to responsible digital interactions, especially when it comes to safeguarding minors.
About ComplyCube
ComplyCube is a top-tier SaaS platform specializing in Identity Verification (IDV), Anti-Money Laundering (AML), and Know Your Customer (KYC) compliance. It serves a diverse client range spanning financial services, telecommunications, transport, healthcare, e-commerce, cryptocurrency, FinTech, and more.
ComplyCube’s platform, which is ISO-certified and has received multiple awards, prides itself on offering the quickest omnichannel integration available in the market. Its Low/No-Code solutions, API, Mobile SDKs, Client Libraries, and CRM Integrations make this possible.
Visit www.complycube.com to learn more.
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Artificial Intelligence
UNLEASH World Returns to Showcase Fortune 500 Companies Transforming the Future of Work
From startups to the Fortune 500, the event will showcase the leaders and technologies changing the world of workSpeakers include senior HR and business leaders such as L’Oréal Deputy CEO, Barbara Lavernos, JB Academy Founder, Josh Bersin, Spotify CHRO, Katarina Berg, and Sodexo CHRO, Annick de Vanssay, as well as England Rugby legend, Jonny Wilkinson CBEImagine a future where the boundaries of HR are redefined, and business is transformed. That future becomes a reality this year at UNLEASH World 2023, as 5000+ HR leaders from 100+ countries will arrive for the industry gathering of the yearLONDON, Oct. 2, 2023 /PRNewswire/ — UNLEASH, the fastest-growing HR events across Europe and the US, returns to Paris for its 11th year on 17-18 October, 2023. Organised by UNLEASH, a global digital media and events business dedicated to HR, technology, learning and recruitment leaders, the flagship UNLEASH World conference has been the epicentre for HR, recruitment, learning expertise and tech influence for the last decade. This year, it returns to explore the transformative power of technologies such as AI in shaping the future of work.
Set across 12 theaters, UNLEASH World attendees will hear from visionary keynote speakers including CEOs from L’Oréal, Aliaxis and Roullier Group, CHROs from Airbus, Spotify and Sodexo, and Rugby legends, Jonny Wilkinson, CBE and Serge Betsen. With a diverse range of keynote speakers, interactive sessions, and networking opportunities, UNLEASH World provides cutting-edge insights and best practices for everyone – from CEOs to HR leaders and executives.
“UNLEASH is the most influential HR event in the world, where attendees are given the opportunity to meet the who’s who of the industry from some of the most exciting brands and employers in the world – under one roof, over two days of face-to-face meetings,” said Marc Coleman, CEO and Founder at UNLEASH. “Massive thanks too to our Headline Sponsors who are the heartbeat of the HR Industry and help ensure UNLEASH is the go-to global event for HR Leaders, including: AWS, Bob, Deloitte, Eightfold, Phenom, Qualtrics, SAP SuccessFactors, Visier, Workday, and Workhuman”.
Through keynotes on the main stage and further breakout stages, attendees will gain on some of the most pressing topics including:
Creating an Exponential Organization in the Modern EraThe Adaptive Enterprise – HR Technology in the Age of AITech & Human Harmony in a Hyper-Connected WorldHarnessing the Power of Resilience and ReinventionMastering Employee Connection and the Social Contract in Today’s Talent LandscapeThe speaker roster itself is star-studded with 200+ of the best in the HR industry with speakers including:
Jean-Claude Le Grand, CHRO, L’OréalKatarina Berg, CHRO, SpotifyJosh Bersin, Founder & CEO, The Josh Bersin CompanyNatalia Wallenberg, CHRO, Ahold DelhaizeSalim Ismail, Founder, OpenExOAnika Grant, CPO, UbisoftThierry Baril, CHRO, AirbusBeatriz Rodriguez, Chief Talent and DEIB Officer, BayerReza Moussavian, VP of People Products, ZalandoMaud Alvarez-Pereyre, Chief People & Transformation Officer, LVMHAndrew Elston, Global Head, Workforce Strategy Enablement, HSBCLaura Hingel, Global Head of Talent & Employer Branding, Christian DiorHenrik Hansen, VP Global Head of Integrated People Services, PhilipsDenise King, Vice President, Global Benefits and Payroll, MedtronicArtur Nejmark, Head of HRIS Operations, Volvo GroupIntroducing the UNLEASH World Startup Program: A veritable launchpad for trailblazing entrepreneurs in the HR and Future of Work. UNLEASH has been the launchpad for the future of HR Tech, this high-impact platform has already seen its network of startups raise an astounding €10 billion in funding. 2023 UNLEASH World Startup Award offers an unparalleled opportunity for early-stage companies to break through. Established in 2011, this accolade has proven to be more than just a trophy; it’s a gateway to funding and exponential growth. Our last four champions and runner-up’s secured game-changing funding within months. Those interested in entering the award can find out more here.
For more information, including the agenda and how to register for the event, visit https://www.unleash.ai/unleashworld.
About UNLEASH
UNLEASH is the go-to marketplace for human resources and breakthrough technologies that shape the future of work, and is an essential source of news, analysis and market trends that inspire and empower organisational leaders worldwide. UNLEASH is a platform to share ideas that work, network and do business, and its mission is to be the world’s number one destination and marketplace for human resources, recruitment and learning leaders globally. UNLEASH is headquartered in London, UK with operations across Europe and the United States.
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Artificial Intelligence
BACARDÍ® RUM TO LAUNCH THE FIRST A.I. POWERED ALBUM PRODUCED BY GRAMMY WINNER BOI-1DA
The latest evolution of the iconic rum brand’s Music Liberates Music programme will use cutting-edge generative A.I. software to give a global collective of artists including UK singer/songwriter Bellah access to Boi-1da’s best-in-class production talent.
HAMILTON, Bermuda, Oct. 2, 2023 /PRNewswire/ — Continuing its mission to support emerging talent, BACARDÍ and Grammy Award-winning producer Boi-1da are once again partnering to launch this year’s evolution of the longstanding ‘Music Liberates Music’ programme: The A.I. Powered Album. Dropping this November, The A.I. Powered Album will champion works by five global up-and-coming artists in a one-of-a-kind project exploring how A.I. can be positively leveraged to provide emerging talent unprecedented opportunities. For the first time since the campaign’s inception, each artist will have the opportunity to try out multiple demos with Boi-1da’s star-powered beats, using a generative A.I. trained on the award-winning producer’s sound, to ultimately finalise one incredible track. Together, the tracks will be offered to fans as the first-ever A.I. powered EP produced by Boi-1da.
The A.I. Powered Album will feature tracks from UK-based singer Bellah as well as Ghanian-raised rapper Blackway, American R&B singers Floyd Fuji and Kyle Dion, and Canadian R&B artist Savannah Ré. Over several weeks, each artist will feed their tracks into a state-of-the-art generative A.I. tool, which has been trained on a selection of beats from Boi-1da’s unreleased catalogue and will learn the sounds and cadence of his unique musical style. After submitting their demos to Boi-1da, each artist will work alongside him to refine their works, resulting in the EP’s final set of songs to be released this November.
Bellah, from North London, has a special knack for gliding over classic R&B instrumentals and captivating audiences. With a handful of EPs under her belt, the burgeoning British/Nigerian singer/songwriter has proven why she is at the forefront of the UK R&B industry. In her third and most recent piece, Adultsville, Bellah explores what it means to evolve into a woman in the modern world. It’s the inner page of a journal that, in looking back on her life and work as a whole, she describes as the “most transforming, traumatic, eye-opening, beautiful, and awful chapter of my life.”
With a style that combines traditional R&B with an Afro influence, Bellah’s very likable and sincere lyricism shines just as brightly as her voice. Her British-Nigerian ancestry lends an Afro influence to that unfiltered R&B, a sound that has been praised by Complex and BBC 1Xtra, which named her first hit their Track Of The Week. As a rising star in the music and entertainment industry, she’s already garnered a MOBO nomination, cementing her status as one of the most promising talents in the UK music scene. With over 1 million monthly listeners on Spotify, Bellah has captivated a wide audience with her music.
As with each Music Liberates Music programme, all proceeds from the project will directly benefit the participating artists. All copyright and subsequent revenue from the tracks will remain with the artists and Boi-1da. Fans can enjoy The A.I. Powered Album available for purchase as a limited-edition vinyl as well as for free on streaming platforms, such as Spotify, this November.
“This is the fifth year we’re bringing Music Liberates Music back for artists and fans alike. We’re proud to continually support emerging talent with new resources that fuel creativity and collaboration,” said Laila Mignoni, Global Head of Brand Marketing Communications for BACARDÍ rum. “Ultimately, our goal is to provide opportunity and access to rising artists in the industry, so it’s been exciting to broaden Boi-1da’s capabilities, allowing him to work with multiple artists on multiple tracks, simultaneously as one producer. We know the conversation around AI has been a challenging one, so approaching this project with the utmost respect and protection for the artist was key in developing this new tool. The technology is, and always should be, complementary to each artist’s work and protective of all the creatives involved.”
“I’m thrilled to work with BACARDÍ on this ground-breaking new iteration of Music Liberates Music exploring AI as a tool to enrich human creativity,” says Boi-1da. “One of the most fulfilling responsibilities I have as a producer is to work with up-and-coming talent. Through the A.I. Powered Album, we’ve provided unprecedented access to my personal production style. I’m able to work with an international collective of artists simultaneously, while still honouring their creative autonomy. Music as an art has continually grown thanks to innovative technology, and with AI, I believe we can revolutionise the music industry for good if we view it as a way to provide opportunities that enhance music’s human element, rather than replace it.”
For more information and updates on the launch of The A.I. Powered Album follow @bacardi_uk on all social channels or visit Bacardi.com.
About BACARDÍ® Rum – The World’s Most Awarded Rum In 1862, in the city of Santiago de Cuba, founder Don Facundo Bacardi Massó revolutionized the spirits industry when he created a light-bodied rum with a particularly smooth taste – BACARDÍ. The unique taste of BACARDÍ rum inspired cocktail pioneers to invent some of the world’s most famous recipes including the BACARDÍ Mojito, the BACARDÍ Daiquiri, the BACARDÍ Cuba Libre, the BACARDÍ Piña Colada and the BACARDÍ El Presidente. BACARDÍ rum is the world’s most awarded spirit, with more than 1,000 awards for quality, taste and innovation. Today, BACARDÍ rum is made mainly in Puerto Rico where it is crafted to ensure the taste remains the same today as it did when it was first blended in 1862. http://www.BACARDÍ.com/
The BACARDÍ brand is part of the portfolio of Bacardi Limited, headquartered in Hamilton, Bermuda. Bacardi Limited refers to the Bacardi group of companies, including Bacardi International Limited.
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SOURCE BACARDÍ® Rum©2023. BACARDÍ AND THE BAT DEVICE ARE TRADEMARKS.
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