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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Akuvox S567G Smart Indoor Monitor Has Received Google Mobile Service Certification
XIAMEN, China, Sept. 13, 2024 /PRNewswire/ — Akuvox has announced its S567G, an indoor monitor powered by Android™, to have received Google GMS certification. This certification ensures full support for Google Services, allowing users to download and update apps directly from the Google Play Store, including smart home control apps. It also enhances system security, protecting against malware and unauthorized access.
GMS certification involves comprehensive testing and approval by Google or a designated 3PL lab, validating security and compatibility to ensure seamless integration within the Android ecosystem. Receiving GMS certification underscores Akuvox’s leadership in the smart intercom industry. Building on its legacy as the pioneer of Android smart intercoms, Akuvox continues to elevate its Android systems with Google’s rigorous certification, offering clients flexible and sophisticated smart intercom solutions.
The S567G’s GMS certification ensures flawless operation with key Google apps like Chrome, Gmail, YouTube, Maps, and the Play Store. Edward Shi, Product Manager of the S567G, notes, “The positive feedback we’ve received from clients, even during testing, confirms that this device is transforming daily life. It’s more than just an intercom — it’s a versatile tool, even capable of functioning as a small TV. Our team has worked tirelessly to meet the highest standards, and I’m excited to see how it enhances smart living for our users.”
The S567G’s features extend beyond intercom functionality. With four HD speakers and a 1280 x 800 IPS LCD screen, it offers an exceptional audio-visual experience, redefining the concept of an indoor monitor. Whether for entertainment or smart home control, the S567G stands out as a versatile wall-mounted tablet, bringing innovation to every interaction.
About Akuvox
Akuvox is a global leading provider of smart intercom and smart home products and solutions. It is committed to unleashing the power of technology to improve people’s lives with better communication, greater security, and more convenience. Encompassing artificial intelligence, SIP, Android, cloud, security, and other advanced technologies, Akuvox continuously drives breakthrough changes in the industry and creatively delivers an unrivaled portfolio of smart intercom and smart home products and solutions. It has been deployed and used daily in more than 110 countries and regions, meeting customer needs in various vertical markets that range from residential to commercial, from healthcare to public safety.
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View original content:https://www.prnewswire.co.uk/news-releases/akuvox-s567g-smart-indoor-monitor-has-received-google-mobile-service-certification-302248219.html
Artificial Intelligence
SeaBubbles Accelerates Sustainable Maritime Mobility with SmartBubble and Strategic Acquisition
SAINT JORIOZ, France, Sept. 13, 2024 /PRNewswire/ — SeaBubbles, French pioneer in zero-emission hydrofoils, strengthens its commitment to ecological transition with the launch of SmartBubble, new flying boat model combining cutting-edge technology with iconic design. This innovative vessel, designed to carry up to eight people at a speed of 16 knots (30 km/h), takes its passengers on a silent and environmentally friendly flight, ideal for water taxi services and urban transportation.
SmartBubble: Concentration of Technology and Design
Following the success of its first public line on Lake Annecy, where hundreds of passengers experienced the unique sensation of flying aboard The Bubble (4-seater model), SeaBubbles reaches a new milestone with the homologation of the SmartBubble (8-seater model) and its four patents, including retractable foils.
SmartBubble technology is geared towards energy efficiency. The submerged wings (foils) equipped with automatic flaps allow to fly at low speeds, saving 40% of energy required. This unique boat has just been presented afloat for the first time at the Cannes Yachting Festival.
SeaBubbles Strengthens Flight Control Expertise with Neocean Acquisition
SeaBubbles also announces the acquisition of Neocean technology, to accelerate the development of flight control expertise, specifically on “inverted T” foils. Neocean is renowned for developing the Overboat, foiling catamaran with proven stability and maneuverability.
SeaBubbles is a key player in hydrofoil navigation, technology that improves energy efficiency of boats, particularly electric ones. The flight control system is a central element of the flight experience: it is designed to ensure stable flight by dynamically and autonomously managing the mechanical inclination of the flaps on the trailing edges of the foils.
SeaBubbles: Vision for the Future
SeaBubbles’ ambition is to revolutionize urban and suburban maritime transport with more efficient and environmentally friendly boats. Examples such as the Calanques National Park, Norwegian fjords, alpine lakes or the canals of Amsterdam demonstrate a committed initiative towards the preservation of aquatic ecosystems by gradually banning the circulation of thermal boats.
“Foils significantly reduce the drag of our boats, allowing our hydrofoils to move more easily and with less energy than a conventional boat: a considerable gain in cost and energy,” explains Virginie Seurat, CEO of SeaBubbles. “The acquisition of Neocean marks a decisive turning point and prepares us for our industrialization phase. We are ready to redefine the pleasure of boating and offer boats that comply with increasingly stringent environmental standards, while offering unique sailing comfort – zero noise, zero waves, zero emissions.”
AxiCom for SeaBubbles, [email protected]
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Artificial Intelligence
Amagi and BuyDRM Partner to Secure Streaming Video on PlayMedia’s FAST Platform GoPlay
NEW YORK, Sept. 13, 2024 /PRNewswire/ — Amagi, the global leader in cloud-based SaaS technology for broadcast and connected TV (CTV), today announced a partnership with BuyDRM, a leading content security services and solutions provider offering cloud-based content security for the streaming video platform GoPlay by PlayMedia. This successful collaboration with BuyDRM’s KeyOS Content Security Platform provides robust safeguards for valuable video content while allowing PlayMedia to focus on delivering high-quality video experiences to its audience without compromising security.
This partnership marks a significant step forward in addressing the evolving challenges of content security in today’s digital landscape. By combining BuyDRM’s expertise in DRM solutions with Amagi’s scalable cloud infrastructure, PlayMedia can ensure comprehensive protection for its content library against piracy and unauthorized access.
BuyDRM’s KeyOS Content Security Platform is an award-winning, studio-approved multi-DRM and watermarking content security platform for video. The KeyOS platform protects the assets of copyright holders and distributors with robust security services and solutions for high-value video content and is trusted by many of the most prominent names in media and entertainment across the globe.
Srinivasan KA, Co-Founder and Chief Revenue Officer at Amagi, said, “Our partnership with BuyDRM aligns perfectly with our endeavor to empower content creators and distributors with innovative technology. Integrating BuyDRM’s KeyOS platform into our cloud-based platform offers our customers like PlayMedia the peace of mind they need to focus on delivering exceptional content.”
“The alliance with Amagi made it possible for our mutual customer, PlayMedia, to utilize our content security offering in a cloud-based environment without sacrificing their security standards and the user experience,” said Christopher Levy, BuyDRM CEO and Co-Founder. “Both companies worked hard to empower PlayMedia with the technology needed to thrive in today’s streaming market.”
Amagi provides a complete suite of channel creation, distribution, and monetization solutions. The company’s clients include some of the world’s biggest names, including A+E Networks UK, ABS-CBN, Astro, Cox Media Group, DAZN, Globo, Lionsgate Studio, NBCUniversal, Tastemade, and VIZIO.
Amagi is exhibiting at IBC2024. Attendees can join Amagi and experience its innovative media cloud platform, which addresses unified broadcast and streaming TV workflows. Click here to book a meeting with Amagi executives.
About Amagi
Amagi is a next-generation media technology company that provides cloud broadcast and targeted advertising solutions to broadcast TV and streaming TV platforms. Amagi enables content owners to launch, distribute, and monetize live, linear channels on Free Ad-supported Streaming TV and video services platforms. Amagi also offers 24×7 cloud-managed services, bringing simplicity, advanced automation, and transparency to all broadcast operations. Overall, Amagi supports 800+ content brands, 800+ playout chains, and 5,000+ channel deliveries on its platform in over 150 countries. Amagi has a presence in New York, Los Angeles, Toronto, Mexico City, London, Paris, Sydney, Seoul, and Singapore, broadcast operations in New Delhi, and innovation centers in Bengaluru, Zagreb, and Łódź.
About BuyDRM
BuyDRM™ is a leading global provider of content security services for the entertainment, education, enterprise, and hospitality industries. BuyDRM’s KeyOS content security platform powers many of the largest brands in media and technology. With decades of market-leading experience implementing commercial content security solutions and media technologies, BuyDRM has amassed substantial success stories for many of today’s largest brands such as ABC (Australian Broadcasting Corporation), Daily Rounds, Deluxe Digital, EPIX, FuboTV, POPS Singapore, Rakuten Viki, Redbox, Roku, Samsung TV+, SBS Australia, Showtime, Sinclair Digital, Soundcloud, Sportradar, TubiTV and ViaPlay.
For more information, please visit www.buydrm.com.
Amagi Contact:
Aashish WashikarDirector – Corporate Communications Email: [email protected]
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View original content:https://www.prnewswire.co.uk/news-releases/amagi-and-buydrm-partner-to-secure-streaming-video-on-playmedias-fast-platform-goplay-302247802.html
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