Sema4 Reports Third Quarter 2022 Financial Results and New Strategic Direction

GlobeNewswire2022-11-14

Company will focus on its high growth, high margin pediatric and rare disease business, powered by whole exome/genome diagnostic testing and analysis and data-driven insights from Centrellis® 19% pro ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSema4 Reports Third Quarter 2022 Financial Results and New Strategic Direction\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-14 21:02 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/sema4-reports-third-quarter-2022-130200256.html><strong>GlobeNewswire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Company will focus on its high growth, high margin pediatric and rare disease business, powered by whole exome/genome diagnostic testing and analysis and data-driven insights from Centrellis®\n19% pro ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sema4-reports-third-quarter-2022-130200256.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4196","symbol_name":"保健护理服务","start_time":0,"source_url":"https://finance.yahoo.com/news/sema4-reports-third-quarter-2022-130200256.html","article_id":"2283257401","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/OaE0y8MPqE6eoaC99updYA--~B/aD00NDI7dz0xNDM1O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/globenewswire.com/0f65b94c5da8106c1dc88d3133a7d6ee"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2283257401","pubTimestamp":1668430920,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Company will focus on its high growth, high margin pediatric and rare disease business, powered by w","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4196":"保健护理服务","BK4570":"地缘局势概念股","BK4167":"医疗保健技术","BK4017":"黄金","NGD":"New Gold"},"translate_title":"Sema4报告2022年第三季度财务业绩和新的战略方向","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NGD":1,"SMFR":0.9,"SMFRW":0.6},"content_text":"Company will focus on its high growth, high margin pediatric and rare disease business, powered by whole exome/genome diagnostic testing and analysis and data-driven insights from Centrellis®\n19% pro forma1 volume growth vs. 3Q 2021 and 21% pro forma1 revenue growth vs. 3Q 2021\nSema4 to host a conference call today at 8:30 a.m. ET\nSTAMFORD, Conn., Nov. 14, 2022 (GLOBE NEWSWIRE) --  Sema4 Holdings Corp. (Nasdaq: SMFR) (“Sema4”), a health insights company, today announced business highlights and financial results for the third quarter ended September 30, 2022.\nAdditionally, Sema4 announced its decision to pursue a new strategic direction focused on a $30 billion market opportunity to generate more complete understanding of complex diseases and how to treat them, fueled by its industry-leading genomic and data platforms. As a result, the company has determined that it will exit the reproductive health testing market, which it expects to complete by the end of the first quarter of 2023. The company believes the competitive advantages and differentiated offerings of its GeneDx and Centrellis platforms will enable the company to scale to profitability. The business moving forward is on a path to provide:\n\nAnnual revenue growth in excess of 20% over the next several years\nAn adjusted gross margin profile in excess of 50% in the near-term\nA turn to profitability in 2025\n\nThe foundation for this growth is strengthened by the GeneDx exome and whole genome sequencing and interpretation services and the Centrellis data platform. The company will be focused on delivering personalized, actionable health insights that help clinicians, researchers, health systems, pharmaceutical companies, and payors improve the patient experience and advance population health. Sema4 will enhance the healthcare experience and improve patients’ quality of life for generations by sequencing once and analyzing for a lifetime.\n“As we look ahead, I am excited by the performance of the business representing our future. Our pediatric and rare disease franchise is setting new internal records, generating over 50% revenue growth in the third quarter and delivering over 40% in adjusted gross margin,” said Katherine Stueland, President and CEO of Sema4. “We believe that our focused commercial and R&D efforts provide the right foundation for us to target higher growth areas of the genomics market and optimize our data and health insights go-to-market strategy. We expect the combination of these efforts will help us grow revenue in excess of 20% over the next several years. We also expect the actions we have undertaken will enable us to more than double our run rate gross margin profile exiting the third quarter and reduce our annual cash burn by greater than 50% in 2023.”\nBusiness Highlights\n\nSigned 2 data partnerships with biopharma companies utilizing the company’s proprietary clinical and genomic database\nAnnounced partnership in the recently launched GUARDIAN genomic newborn screening study, the largest of its kind in North America, to improve population health by identifying more than 250 preventable and treatable conditions, many of which are not covered today by standard newborn screening\nAnnounced results from Phase 1 of SeqFirst Study, demonstrating broad utility of rapid whole genome sequencing for critically ill newborns\nPresented research on autism spectrum disorders (ASD) at the Child Neurology Society (CNS) annual meeting, underscoring the positive outcomes of exome analysis for individuals with ASD\nAnnounced an exit from reproductive health testing, including closing down its Stamford, CT laboratory and a reduction in force of approximately 500 employees. Customers will be notified that the company is accepting samples through December 14, 2022\nCombining its prior year-to-date restructuring efforts and the exit from its reproductive health testing business announced today, the company expects total headcount of 1,100 compared to approximately 1,700 exiting the third quarter of 2022\nAppointed industry veteran, Kevin Feeley, as Chief Financial Officer\n\nThird Quarter & Recent Highlights\n“We are pleased with our third quarter results, especially the volume growth and gross margins in our GeneDx pediatrics and rare disease business. We have seen consistent double-digit volume growth in this business throughout this year and efforts across revenue cycle management and menu optimization have helped drive favorable pricing trends in key areas of focus. Efforts implemented by our commercial team late last year are driving results,” continued Ms. Stueland. “Additionally, with the exit of our reproductive health businesses, we are very excited to enter the next chapter at Sema4 enabled by Centrellis as a health intelligence platform fueled by GeneDx’s genomic services and clinical data.”\nHighlights include:\n\nTesting volumes on a pro forma basis were up 19% in the third quarter of 2022 compared to the same period of 2021, with 128,262 tests resulted (excluding COVID-19 tests)1\nTesting volumes in pediatric and rare disease were up 20% on a pro forma basis\nGross margin of 16% and adjusted gross margin of 20% in the third quarter of 2022, with our pediatric and rare disease franchise generating an adjusted gross margin in excess of 40% in the quarter\n\nTotal revenue for the third quarter of 2022 was $83.2 million compared to $43.2 million in the third quarter of 2021. Pro forma revenue in the third quarter of 2022, assuming GeneDx’s results were included for the full applicable quarter, excluding COVID-19 related revenue, was up 21%.\nGross margin in the third quarter of 2022 was 16%. Adjusted gross margin in the third quarter of 2022 was 20%, with the pediatric and rare disease franchise generating an adjusted gross margin in excess of 40% in the quarter.\nNet loss in the third quarter of 2022 was ($77.6) million. Adjusted net loss for the third quarter of 2022 was ($76.8) million compared to an adjusted net loss of ($71.0) million in the same period of 2021.\nTotal cash and cash equivalents and restricted cash were $205.7 million as of September 30, 2022. As of November 4, 2022, Sema4 had 386,795,130 outstanding shares of Class A common stock.\n“During the third quarter, we experienced encouraging growth in test volumes across the total company, especially in the pediatric and rare disease business of GeneDx, where we experienced 20% growth in volumes with an associated growth in revenue of greater than 50%. Our concerted work to improve lab efficiency and revenue cycle management has helped drive a meaningful uptick in our gross margins. Following the announced exit of our reproductive health testing business, we believe our financial profile positions the company for long term success,” said Kevin Feeley, Chief Financial Officer of Sema4.\nFull Year 2022 Guidance Sema4 is maintaining the previously issued full year and second half 2022 reported revenue guidance of $245-255 million and $154-164 million, respectively.\nSema4 is also maintaining the previously issued full-year and second-half 2022 adjusted gross margin guidance of 4-9% and 15-20%, respectively.\nWebcast and Conference Call Details\nSema4 will host a conference call today, November 14, 2022, at 8:30 a.m. Eastern Time. Interested parties may access the live teleconference by dialing (866) 374-5140, followed by PIN 44463501#. A live and archived webcast of the event will be available on the “Events” section of the Sema4 investor relations website at https://ir.sema4.com\n1 Pro forma metrics consolidate GeneDx operating results for the entirety of the compared periods and excludes COVID-19 revenue. Pro forma metrics are presented for illustrative purposes only and are not necessarily indicative of the results that would have occurred had the GeneDx acquisition been completed prior to January 1, 2021 or that may occur in the future. See Appendix for Historical Sema4 & GeneDx Resulted Volumes & Revenue.\nForward-Looking Statements\nThis press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our future performance and our market opportunity, including our expected full year and second half 2022 reported revenue and adjusted gross margin guidance, our expectations regarding our annual revenue growth rates over the next several years, our gross margin profile in the near-term and our path to profitability in 2025, our expectations regarding our annual cash burn in 2023, our expectations for our growth and future investment in our business, our expectations regarding our plans to pursue new strategic direction, exit our reproductive health testing business and our ability to scale to profitability, our other restructuring plans and the associated cost savings and impact on our gross margins, and our expectations of the anticipated benefits and synergies of the recently completed GeneDx acquisition. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the ability to implement business plans, goals and forecasts, and identify and realize additional opportunities, (ii) the risk of downturns and a changing regulatory landscape in the highly competitive healthcare industry, (iii) the size and growth of the market in which we operate, and (iv) our ability to pursue our new strategic direction, exit our reproductive health testing business, implement our other restructuring plans and achieve the associated cost savings and impact on our gross margins, (v) the risk that the anticipated benefits of the GeneDx acquisition may not be fully realized, if at all. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 14, 2022 and other documents filed by us from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.\nAbout Sema4\nSema4 is a patient-centered health intelligence company dedicated to advancing healthcare through data-driven insights. Sema4 is transforming healthcare by applying AI and machine learning to multidimensional, longitudinal clinical and genomic data to build dynamic models of human health and defining optimal, individualized health trajectories. Centrellis®, our innovative health intelligence platform, is enabling us to generate a more complete understanding of disease and wellness and to provide science-driven solutions to the most pressing medical needs. Sema4 believes that patients should be treated as partners, and that data should be shared for the benefit of all.\nFor more information, please visit sema4.com and connect with us on LinkedIn, Twitter, Facebook, and Instagram.\nInvestor Relations Contact:Joel Kaufmaninvestors@sema4.com\nMedia Contact:Radley Mossradley.moss@sema4.com\nHistorical Pro Forma Resulted Volume and Revenue1\n\n\n\n \n1Q21\n2Q21\n3Q21\n4Q21\n1Q22\n2Q22\n3Q22\n\n\nVolumes2\n \n \n \n \n \n \n \n\n\nComplex Reproductive Health\n \n46,052\n \n50,155\n \n49,475\n \n61,741\n \n67,907\n \n73,288\n \n \n68,109\n\n\nWhole Exome, Whole Genome & NICU\n \n3,344\n \n6,698\n \n6,162\n \n6,619\n \n7,395\n \n7,572\n \n \n7,480\n\n\nOther Diagnostic Testing (Excluding COVID)\n \n49,230\n \n54,412\n \n51,780\n \n53,387\n \n51,057\n \n51,802\n \n \n52,673\n\n\nTotal\n \n98,626\n \n111,265\n \n107,417\n \n121,747\n \n126,359\n \n132,662\n \n \n128,262\n\n\n \n \n \n \n \n \n \n \n\n\nSema4 (Excluding COVID)\n \n66,945\n \n72,083\n \n69,895\n \n82,966\n \n84,925\n \n87,094\n \n \n83,348\n\n\nGeneDx\n \n31,681\n \n39,182\n \n37,522\n \n38,781\n \n41,434\n \n45,568\n \n \n44,914\n\n\nTotal1\n \n98,626\n \n111,265\n \n107,417\n \n121,747\n \n126,359\n \n132,662\n \n \n128,262\n\n\n \n \n \n \n \n \n \n \n\n\nRevenue2\n \n \n \n \n \n \n \n\n\nComplex Reproductive Health\n$\n46.5\n$\n41.3\n$\n37.6\n$\n46.2\n$\n48.3\n$\n8.2\n \n$\n36.8\n\n\nWhole Exome, Whole Genome & NICU\n$\n8.4\n$\n13.5\n$\n14.2\n$\n15.3\n$\n18.4\n$\n21.1\n \n$\n26.9\n\n\nOther Diagnostic Testing (Excluding COVID)\n$\n14.8\n$\n15.7\n$\n15.2\n$\n15.7\n$\n17.9\n$\n16.5\n \n$\n17.7\n\n\nCOVID\n$\n15.9\n$\n3.8\n$\n4.2\n$\n10.5\n$\n3.8\n$\n0.3\n \n$\n0.0\n\n\nPharma\n$\n1.4\n$\n2.2\n$\n1.8\n$\n2.4\n$\n1.6\n$\n2.3\n \n$\n1.7\n\n\nTotal2\n$\n87.0\n$\n76.7\n$\n73.0\n$\n90.1\n$\n90.1\n$\n48.3\n \n$\n83.2\n\n\n2Q 2022 Prior Period Revenue Adjustment3\n \n-\n \n-\n \n-\n \n-\n \n-\n($\n30.1\n)\n \n-\n\n\nAdjusted Total\n$\n87.0\n$\n76.7\n$\n73.0\n$\n90.1\n$\n90.1\n$\n78.4\n \n$\n83.2\n\n\nAdjusted Total Excluding COVID\n$\n71.1 \n$\n72.8 \n$\n68.8 \n$\n79.6 \n$\n86.3 \n$\n78.1 \n \n$\n83.2 \n\n\n \n \n \n \n \n \n \n \n\n\nSema4\n$\n64.2\n$\n47.0\n$\n43.2\n$\n57.8\n$\n53.9\n$\n10.0\n \n$\n37.7\n\n\nSema4 Diagnostic Testing (Excluding COVID)\n$\n46.9\n$\n41.0\n$\n37.3\n$\n45.9\n$\n48.7\n$\n8.1\n \n$\n36.1\n\n\nSema4 COVID Testing\n$\n15.9\n$\n3.8\n$\n4.2\n$\n10.5\n$\n3.8\n$\n0.3\n \n$\n0.0\n\n\nSema4 Pharma\n$\n1.4\n$\n2.2\n$\n1.7\n$\n1.4\n$\n1.4\n$\n1.7\n \n$\n1.6\n\n\nGeneDx\n$\n22.8\n$\n29.6\n$\n29.8\n$\n32.3\n$\n36.1\n$\n38.3\n \n$\n45.6\n\n\nTotal2\n$\n87.0\n$\n76.7\n$\n73.0\n$\n90.1\n$\n90.1\n$\n48.3\n \n$\n83.2\n\n\n2Q 2022 Prior Period Revenue Adjustment3\n \n-\n \n-\n \n-\n \n-\n \n-\n($\n30.1\n)\n \n-\n\n\nAdjusted Total\n$\n87.0\n$\n76.7\n$\n73.0\n$\n90.1\n$\n90.1\n$\n78.4\n \n$\n83.2\n\n\nAdjusted Total excluding COVID\n$\n71.1 \n$\n72.8 \n$\n68.8 \n$\n79.6 \n$\n86.3 \n$\n78.1 \n \n$\n83.2 \n\n\n\nHistorical Pro forma GeneDx Revenue & Volume + Combined Company Pharma1\n\n\n\n \n1Q21\n2Q21\n3Q21\n4Q21\n1Q22\n2Q22\n3Q22\n\n\nVolumes\n \n \n \n \n \n \n \n\n\nWhole Exome, Whole Genome & NICU\n \n3,344\n \n6,698\n \n6,162\n \n6,619\n \n7,395\n \n7,572\n \n7,480\n\n\nOther Diagnostic Tests\n \n28,337\n \n32,484\n \n31,360\n \n32,162\n \n34,039\n \n37,996\n \n37,434\n\n\nTotal\n \n31,681\n \n39,182\n \n37,522\n \n38,781\n \n41,434\n \n45,568\n \n44,914\n\n\n \n \n \n \n \n \n \n \n\n\nRevenue\n \n \n \n \n \n \n \n\n\nWhole Exome, Whole Genome & NICU\n$\n8.4\n$\n13.5\n$\n14.2\n$\n15.3\n$\n18.4\n$\n21.1\n$\n26.9\n\n\nOther Diagnostic Tests\n$\n14.4\n$\n16.1\n$\n15.5\n$\n17.0\n$\n17.7\n$\n17.2\n$\n18.6\n\n\nPharma\n$\n1.4\n$\n2.2\n$\n1.8\n$\n2.4\n$\n1.6\n$\n2.3\n$\n1.7\n\n\nTotal Revenue\n$\n24.2 \n$\n31.8 \n$\n31.5 \n$\n34.7 \n$\n37.8 \n$\n40.6 \n$\n47.3 \n\n\n\n1 Pro forma volume and revenue metrics assume GeneDx was owned for the entirety of the applicable quarter and are calculated based on the sum of each of Sema4’s and GeneDx’s historical volumes or revenues, as applicable. Pro forma metrics are presented for illustrative purposes only and are not necessarily indicative of the results that would have occurred had the GeneDx acquisition been completed on such dates or that may occur in the future.2 Represents aggregated Resulted Volume and Revenue from GeneDx and Sema4.3 $30.1 million of revenue adjustments recorded related to prior periods due to our change in estimate.\nSema4 Holdings Corp.Condensed Consolidated Balance Sheets(in thousands, except share amounts)\n\n\n\n \nSeptember 30,2022(unaudited)\n \nDecember 31,2021\n\n\nAssets\n \n \n \n\n\nCurrent assets:\n \n \n \n\n\nCash and cash equivalents\n$\n191,360\n \n \n$\n400,569\n \n\n\nAccounts receivable, net\n \n42,669\n \n \n \n26,509\n \n\n\nDue from related parties\n \n1,194\n \n \n \n54\n \n\n\nInventory, net\n \n44,173\n \n \n \n33,456\n \n\n\nPrepaid expenses\n \n17,516\n \n \n \n19,154\n \n\n\nOther current assets\n \n9,698\n \n \n \n3,802\n \n\n\nTotal current assets\n$\n306,610\n \n \n$\n483,544\n \n\n\nOperating lease right-of-use assets\n \n44,033\n \n \n \n—\n \n\n\nProperty and equipment, net\n \n84,369\n \n \n \n62,719\n \n\n\nIntangible assets, net\n \n190,156\n \n \n \n—\n \n\n\nGoodwill\n \n181,468\n \n \n \n—\n \n\n\nRestricted cash\n \n14,370\n \n \n \n900\n \n\n\nOther assets\n \n7,968\n \n \n \n6,930\n \n\n\nTotal assets\n$\n828,974\n \n \n$\n554,093\n \n\n\nLiabilities and Stockholders’ Equity\n \n \n\n\nCurrent liabilities:\n \n \n \n\n\nAccounts payable and accrued expenses\n$\n86,884\n \n \n$\n64,801\n \n\n\nDue to related parties\n \n1,828\n \n \n \n2,623\n \n\n\nContract liabilities\n \n—\n \n \n \n473\n \n\n\nShort-term lease liabilities\n \n4,996\n \n \n \n—\n \n\n\nOther current liabilities\n \n68,623\n \n \n \n33,387\n \n\n\nTotal current liabilities\n$\n162,331\n \n \n$\n101,284\n \n\n\nLong-term debt, net of current portion\n \n10,651\n \n \n \n11,000\n \n\n\nLong-term lease liabilities\n \n62,336\n \n \n \n—\n \n\n\nOther liabilities\n \n20,200\n \n \n \n21,907\n \n\n\nDeferred taxes\n \n2,603\n \n \n \n—\n \n\n\nWarrant liability\n \n5,059\n \n \n \n21,555\n \n\n\nEarn-out contingent liabilities\n \n4,500\n \n \n \n10,244\n \n\n\nTotal liabilities\n$\n267,680\n \n \n$\n165,990\n \n\n\nCommitments and contingencies (Note 10)\n \n \n \n\n\nStockholders’ equity:\n \n \n \n\n\nPreferred Stock\n \n—\n \n \n \n—\n \n\n\nClass A common stock\n \n38\n \n \n \n24\n \n\n\nAdditional paid-in capital\n \n1,376,916\n \n \n \n963,520\n \n\n\nAccumulated deficit\n \n(815,660\n)\n \n \n(575,441\n)\n\n\nTotal stockholders’ equity\n \n561,294\n \n \n \n388,103\n \n\n\nTotal liabilities and stockholders’ equity\n$\n828,974\n \n \n$\n554,093\n \n\n\n\nSema4 Holdings Corp.Condensed Consolidated Statements of Operations and Comprehensive Loss(in thousands, except share and per share amounts)(unaudited)\n\n\n\n \nThree months ended September 30,\n \nNine months ended September 30,\n\n\n \n \n2022\n \n \n2021 (1)\n \n \n2022\n \n \n2021 (1)\n\n\nRevenue:\n \n \n \n \n \n \n \n\n\nDiagnostic test revenue\n$\n81,490\n \n \n$\n41,410\n \n \n$\n167,989\n \n \n$\n148,973\n \n\n\nOther revenue\n \n1,744\n \n \n \n1,768\n \n \n \n5,355\n \n \n \n5,421\n \n\n\nTotal revenue\n \n83,234\n \n \n \n43,178\n \n \n \n173,344\n \n \n \n154,394\n \n\n\nCost of services\n \n69,685\n \n \n \n51,487\n \n \n \n183,768\n \n \n \n168,190\n \n\n\nGross profit (loss)\n \n13,549\n \n \n \n(8,309\n)\n \n \n(10,424\n)\n \n \n(13,796\n)\n\n\nResearch and development\n \n13,354\n \n \n \n17,831\n \n \n \n61,837\n \n \n \n82,916\n \n\n\nSelling and marketing\n \n37,451\n \n \n \n28,152\n \n \n \n103,116\n \n \n \n82,092\n \n\n\nGeneral and administrative\n \n51,863\n \n \n \n33,125\n \n \n \n162,681\n \n \n \n148,033\n \n\n\nRelated party expenses\n \n1,697\n \n \n \n847\n \n \n \n4,712\n \n \n \n3,532\n \n\n\nLoss from operations\n \n(90,816\n)\n \n \n(88,264\n)\n \n \n(342,770\n)\n \n \n(330,369\n)\n\n\n \n \n \n \n \n \n \n \n\n\nOther income (expense), net:\n \n \n \n \n \n \n \n\n\nChange in fair market value of warrant and earn-out contingent liabilities\n \n12,978\n \n \n \n122,171\n \n \n \n54,350\n \n \n \n122,171\n \n\n\nInterest income\n \n996\n \n \n \n27\n \n \n \n1,405\n \n \n \n57\n \n\n\nInterest expense\n \n(806\n)\n \n \n(683\n)\n \n \n(2,404\n)\n \n \n(2,128\n)\n\n\nOther income\n \n2\n \n \n \n(520\n)\n \n \n58\n \n \n \n5,064\n \n\n\nTotal other income\n \n13,170\n \n \n \n120,995\n \n \n \n53,409\n \n \n \n125,164\n \n\n\n(Loss) Income before income taxes\n$\n(77,646\n)\n \n$\n32,731\n \n \n$\n(289,361\n)\n \n \n(205,205\n)\n\n\nIncome tax benefit\n \n65\n \n \n \n—\n \n \n \n49,142\n \n \n \n—\n \n\n\nNet (loss) income and comprehensive (loss) income\n$\n(77,581\n)\n \n$\n32,731\n \n \n$\n(240,219\n)\n \n$\n(205,205\n)\n\n\nWeighted average shares outstanding of Class A common stock\n \n380,764,176\n \n \n \n185,680,394\n \n \n \n321,461,266\n \n \n \n63,121,738\n \n\n\nWeighted average shares outstanding of Class A common stock for diluted earnings\n \n380,764,176\n \n \n \n210,330,946\n \n \n \n321,461,266\n \n \n \n63,121,738\n \n\n\nBasic net (loss) income per share, Class A common stock\n$\n(0.20\n)\n \n$\n0.18\n \n \n$\n(0.75\n)\n \n$\n(3.25\n)\n\n\nDiluted net (loss) income per share, Class A common stock\n$\n(0.20\n)\n \n$\n0.16\n \n \n$\n(0.75\n)\n \n$\n(3.25\n)\n\n\n\n(1) As previously disclosed in Note 2, “Summary of Significant Accounting Policies” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, certain adjustments were made to reclassify certain expenses between cost of services and operating expenses. The adjustments are reflected as disclosed.\nSema4 Holdings Corp.Condensed Consolidated Statement of Cash Flows(unaudited, in thousands)\n\n\n\n \nNine months ended September 30,\n\n\n \n \n2022\n \n \n2021 (1)\n\n\nOperating activities\n \n \n \n\n\nNet loss\n$\n(240,219\n)\n \n$\n(205,205\n)\n\n\n \n \n \n \n\n\nAdjustments to reconcile net loss to net cash used in operating activities:\n \n \n \n\n\nDepreciation and amortization expense\n \n25,269\n \n \n \n16,012\n \n\n\nStock-based compensation expense\n \n41,553\n \n \n \n182,454\n \n\n\nChange in fair value of warrant and earn-out contingent liabilities\n \n(54,350\n)\n \n \n(122,171\n)\n\n\nIncome tax benefit\n \n(49,176\n)\n \n \n—\n \n\n\nLoss on debt extinguishment\n \n—\n \n \n \n301\n \n\n\nProvision for excess and obsolete inventory\n \n732\n \n \n \n1,122\n \n\n\nNon-cash lease expense\n \n1,112\n \n \n \n1,174\n \n\n\nAmortization of deferred debt issuance costs\n \n387\n \n \n \n—\n \n\n\nChange in operating assets and liabilities, net of effects from purchase ofbusiness:\n \n \n \n\n\nAccounts receivable\n \n5,491\n \n \n \n10,787\n \n\n\nInventory\n \n(5,239\n)\n \n \n(7,334\n)\n\n\nPrepaid expenses and other current assets\n \n5,153\n \n \n \n(15,710\n)\n\n\nDue to/from related parties\n \n(1,935\n)\n \n \n(124\n)\n\n\nOther assets\n \n(1,355\n)\n \n \n(17\n)\n\n\nAccounts payable and accrued expenses\n \n28,557\n \n \n \n4,927\n \n\n\nContract liabilities\n \n(473\n)\n \n \n(1,290\n)\n\n\nOther current liabilities\n \n(10,008\n)\n \n \n(3,375\n)\n\n\nNet cash used in operating activities\n \n(254,501\n)\n \n \n(138,449\n)\n\n\n \n \n \n \n\n\nInvesting activities\n \n \n \n\n\nPurchase of business, net of cash acquired\n \n(127,004\n)\n \n \n—\n \n\n\nPurchases of property and equipment\n \n(4,990\n)\n \n \n(4,344\n)\n\n\nDevelopment of internal-use software assets\n \n(6,494\n)\n \n \n(8,749\n)\n\n\nNet cash used in investing activities\n \n(138,488\n)\n \n \n(13,093\n)\n\n\n \n \n \n \n\n\nFinancing activities\n \n \n \n\n\nProceeds from Business Combination PIPE Investment\n \n—\n \n \n \n350,000\n \n\n\nProceeds from Acquisition PIPE Investment, net of issuance costs\n \n197,659\n \n \n \n—\n \n\n\nProceeds from equity infusion from the merger, net of redemptions\n \n—\n \n \n \n442,684\n \n\n\nLegacy Sema4 Shareholder payout\n \n—\n \n \n \n(230,665\n)\n\n\nPayment of deferred transaction costs\n \n—\n \n \n \n(51,760\n)\n\n\nStock Appreciation Rights payout\n \n—\n \n \n \n(3,795\n)\n\n\nRepayment of long-term debt\n \n—\n \n \n \n(8,741\n)\n\n\nFinance lease principal payments\n \n(2,632\n)\n \n \n(2,960\n)\n\n\nLong-term debt principal payments\n \n—\n \n \n \n(1,000\n)\n\n\nExercise of stock options\n \n2,223\n \n \n \n995\n \n\n\nNet cash provided by financing activities\n \n197,250\n \n \n \n494,758\n \n\n\n \n \n \n \n\n\n \n \n \n \n\n\nNet decrease in cash, cash equivalents and restricted cash\n \n(195,739\n)\n \n \n343,216\n \n\n\nCash, cash equivalents and restricted cash, at beginning of period\n \n401,469\n \n \n \n118,960\n \n\n\nCash, cash equivalents and restricted cash, at end of period\n$\n205,730\n \n \n$\n462,176\n \n\n\n \n \n \n \n\n\n\n(1) As previously disclosed in Note 2, “Summary of Significant Accounting Policies” to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, certain adjustments were made to certain liability accounts previously reported in the condensed balance sheets as of September 30, 2021. The adjustments are reflected accordingly as disclosed.\nSema4 Holdings Corp.Reconciliation of Revenue to our Adjusted Gross Profit & Adjusted EBITDA(unaudited, in thousands)\n\n\n\n \nThree months ended September 30,\n\n\n \n \n2022\n \n \n \n2021\n \n\n\n \n(in thousands)\n\n\nRevenue\n \n \n \n\n\nDiagnostic test revenue\n$\n81,490\n \n \n$\n41,410\n \n\n\nOther Revenue\n \n1,744\n \n \n \n1,768\n \n\n\nTotal Revenue\n \n83,234\n \n \n \n43,178\n \n\n\nCost of Service\n \n69,685\n \n \n \n51,487\n \n\n\nGross (Loss) Profit\n$\n13,549\n \n \n$\n(8,309\n)\n\n\nGross Margin\n \n16\n%\n \n \n(19\n)%\n\n\n \n \n \n \n\n\nStock-based compensation\n$\n1,477\n \n \n$\n1,779\n \n\n\nRestructuring costs\n \n1,497\n \n \n \n—\n \n\n\nAdjusted Gross (Loss) Profit\n \n16,759\n \n \n \n(6,530\n)\n\n\nAdjusted Gross Margin\n \n20\n%\n \n \n(15\n)%\n\n\n \n \n \n \n\n\nResearch & Development\n \n13,354\n \n \n \n17,831\n \n\n\nStock-based compensation\n \n8,164\n \n \n \n(3,160\n)\n\n\nRestructuring costs\n \n(1,362\n)\n \n \n—\n \n\n\nAdjusted Research & Development\n$\n20,156\n \n \n$\n14,671\n \n\n\n \n \n \n \n\n\nSelling & Marketing\n \n37,451\n \n \n \n28,152\n \n\n\nStock-based compensation\n \n(2,337\n)\n \n \n(4,183\n)\n\n\nAmortization of intangibles\n \n(1,067\n)\n \n \n—\n \n\n\nRestructuring costs\n \n(1,863\n)\n \n \n—\n \n\n\nAdjusted Selling & Marketing\n$\n32,184\n \n \n$\n23,969\n \n\n\n \n \n \n \n\n\nGeneral & Administrative & Related Party Expense\n \n53,560\n \n \n \n33,972\n \n\n\nStock-based compensation\n \n(5,623\n)\n \n \n(8,889\n)\n\n\nAmortization of intangibles\n \n(2,440\n)\n \n \n—\n \n\n\nTransaction, acquisition, and restructuring costs\n \n(4,271\n)\n \n \n(391\n)\n\n\nAdjusted General & Administrative & Related Party\n$\n41,226\n \n \n$\n24,692\n \n\n\n \n \n \n \n\n\nTotal Adjusted Operating Expenses\n \n93,566\n \n \n \n63,332\n \n\n\n \n \n \n \n\n\nLoss from Operations\n \n(90,816\n)\n \n \n(88,264\n)\n\n\nStock-based compensation\n \n1,273\n \n \n \n18,011\n \n\n\nAmortization of intangibles\n \n3,507\n \n \n \n—\n \n\n\nTransaction, acquisition, and restructuring costs\n \n8,993\n \n \n \n391\n \n\n\nAdjusted loss from operations\n$\n(77,043\n)\n \n$\n(69,862\n)\n\n\n \n \n \n \n\n\n\nSema4 Holdings Corp.Reconciliation of Revenue to our Adjusted Gross Profit & Adjusted EBITDA(unaudited, in thousands)\n\n\n\n \nNine months ended September 30,\n\n\n \n \n2022\n \n \n \n2021\n \n\n\n \n(in thousands)\n\n\nRevenue\n \n \n \n\n\nDiagnostic test revenue\n$\n167,989\n \n \n$\n148,973\n \n\n\nOther Revenue\n \n5,355\n \n \n \n5,421\n \n\n\nTotal Revenue\n \n173,344\n \n \n \n154,394\n \n\n\nCost of Service\n \n183,768\n \n \n \n168,190\n \n\n\nGross (Loss) Profit\n$\n(10,424\n)\n \n$\n(13,796\n)\n\n\nGross Margin\n \n(6\n)%\n \n \n(9\n)%\n\n\n \n \n \n \n\n\nStock-based compensation\n \n4,668\n \n \n \n19,948\n \n\n\nRestructuring costs\n \n1,808\n \n \n \n—\n \n\n\nAdjusted Gross (Loss) Profit\n \n(3,948\n)\n \n \n6,152\n \n\n\nAdjusted Gross Margin\n \n(2\n)%\n \n \n4\n%\n\n\n \n \n \n \n\n\nResearch & Development\n \n61,837\n \n \n \n82,916\n \n\n\nStock-based compensation\n \n(2,692\n)\n \n \n(40,977\n)\n\n\nRestructuring costs\n \n(2,368\n)\n \n \n—\n \n\n\nAdjusted Research & Development\n$\n56,777\n \n \n$\n41,939\n \n\n\n \n \n \n \n\n\nSelling & Marketing\n \n103,116\n \n \n \n82,092\n \n\n\nStock-based compensation\n \n(6,647\n)\n \n \n(23,936\n)\n\n\nAmortization of intangibles\n \n(1,884\n)\n \n \n—\n \n\n\nRestructuring costs\n \n(4,503\n)\n \n \n—\n \n\n\nAdjusted Selling & Marketing\n$\n90,082\n \n \n$\n58,156\n \n\n\n \n \n \n \n\n\nGeneral & Administrative & Related Party Expense\n \n167,393\n \n \n \n151,565\n \n\n\nStock-based compensation\n \n(27,546\n)\n \n \n(97,593\n)\n\n\nAmortization of intangibles\n \n(3,960\n)\n \n \n—\n \n\n\nTransaction, acquisition, and restructuring costs\n \n(23,311\n)\n \n \n(5,496\n)\n\n\nAdjusted General & Administrative & Related Party\n$\n112,576\n \n \n$\n48,476\n \n\n\n \n \n \n \n\n\nTotal Adjusted Operating Expenses\n \n259,435\n \n \n \n148,571\n \n\n\n \n \n \n \n\n\nLoss from Operations\n \n(342,770\n)\n \n \n(330,369\n)\n\n\nStock-based compensation\n \n41,553\n \n \n \n182,454\n \n\n\nAmortization of intangibles\n \n5,844\n \n \n \n—\n \n\n\nTransaction, acquisition, and restructuring costs\n \n31,990\n \n \n \n5,496\n \n\n\nAdjusted loss from operations\n$\n(263,383\n)\n \n$\n(142,419\n)\n\n\n \n \n \n \n\n\n\n\n\n\n \nThree months ended September 30,\n\n\n \n \n2022\n \n \n \n2021\n \n\n\n \n(in thousands)\n\n\nNet (loss) income\n$\n(77,581\n)\n \n$\n32,731\n \n\n\nInterest expense, net (1)\n \n(190\n)\n \n \n656\n \n\n\nIncome tax benefit\n \n(65\n)\n \n \n—\n \n\n\nDepreciation and amortization\n \n10,502\n \n \n \n5,491\n \n\n\nStock-based compensation expense\n \n1,273\n \n \n \n18,011\n \n\n\nTransaction, acquisition costs, and business integration costs (2)\n \n—\n \n \n \n391\n \n\n\nRestructuring (3)\n \n8,993\n \n \n \n—\n \n\n\nChange in fair market value of financial liabilities (4)\n \n(12,978\n)\n \n \n(122,171\n)\n\n\nOther income\n \n—\n \n \n \n343\n \n\n\nAdjusted EBITDA\n$\n(70,046\n)\n \n$\n(64,548\n)\n\n\n \n \n \n \n\n\nNet (loss) income\n \n(77,581\n)\n \n \n32,731\n \n\n\nStock-based compensation expense\n \n1,273\n \n \n \n18,011\n \n\n\nAmortization of Acquisition Intangibles\n \n3,507\n \n \n \n—\n \n\n\nChange in fair market value of warrant and earn-out contingent liabilities\n \n(12,978\n)\n \n \n(122,171\n)\n\n\nTransaction, acquisition, and restructuring costs\n \n8,993\n \n \n \n391\n \n\n\nAdjusted Net loss\n \n(76,786\n)\n \n \n(71,038\n)\n\n\n \n \n \n \n\n\n\n(1)   Represents the total of interest expense related to our finance leases and interest-bearing loans and interest income earned on money market funds. This also includes the unused line fee and amortization of deferred transaction costs related to the loan and security agreement entered into with Silicon Valley Bank.(2)   Represents professional service costs incurred in connection with pursuing the business combination transaction that did not meet the requirement for capitalization in 2021.(3)   Represents costs incurred for restructuring activities, which include severance packages offered to impacted employees and third party consulting costs incurred in the third quarter of 2022.(4)   Represents the change primarily in fair market value of the liabilities associated with our Milestone Payments contingent liability based on the achievement of GeneDx revenue-based milestones of $10.6 million. Included in this amount is also public warrants and private placement warrants and the earn-out shares issuable under the terms of the merger agreement related to our business combination with CMLS.\n\n\n\n \nNine months ended September 30,\n\n\n \n \n2022\n \n \n \n2021\n \n\n\n \n(in thousands)\n\n\nNet loss\n$\n(240,219\n)\n \n$\n(205,205\n)\n\n\nInterest expense, net (1)\n \n999\n \n \n \n2,071\n \n\n\nIncome tax benefit\n \n(49,142\n)\n \n \n—\n \n\n\nDepreciation and amortization\n \n25,269\n \n \n \n16,012\n \n\n\nStock-based compensation expense\n \n41,553\n \n \n \n182,454\n \n\n\nTransaction, acquisition costs, and business integration costs (2)\n \n13,436\n \n \n \n5,496\n \n\n\nRestructuring (3)\n \n18,554\n \n \n \n—\n \n\n\nChange in fair market value of financial liabilities (4)\n \n(54,350\n)\n \n \n(122,171\n)\n\n\nOther income (5)\n \n(56\n)\n \n \n(5,241\n)\n\n\nAdjusted EBITDA\n$\n(243,956\n)\n \n$\n(126,584\n)\n\n\n \n \n \n \n\n\nNet loss\n \n(240,219\n)\n \n \n(205,205\n)\n\n\nStock-based compensation expense\n \n41,553\n \n \n \n182,454\n \n\n\nAmortization of Acquisition Intangibles\n \n5,844\n \n \n \n—\n \n\n\nChange in fair market value of warrant and earn-out contingent liabilities\n \n(54,350\n)\n \n \n(122,171\n)\n\n\nTransaction, acquisition, and restructuring costs\n \n31,990\n \n \n \n5,496\n \n\n\nAdjusted Net loss\n \n(215,182\n)\n \n \n(139,426\n)\n\n\n\n(1)   Represents the total of interest expense related to our finance leases and interest-bearing loans and interest income earned on money market funds. This also includes the unused line fee and amortization of deferred transaction costs related to the loan and security agreement entered into with Silicon Valley Bank.(2)   Represents professional service costs incurred in connection with pursuing the business combination transaction that did not meet the requirement for capitalization in 2021. For the period of 2022, this represents professional service costs incurred in connection with the Acquisition transaction, which include due diligence, legal and business integration costs.(3)   Represents costs incurred for restructuring activities, which include severance packages offered to impacted employees and third party consulting costs incurred in the period of 2022.(4)   Represents the change primarily in fair market value of the liabilities associated with our Milestone Payments contingent liability based on the achievement of GeneDx revenue-based milestones of $27.6 million. Included in this amount is also public warrants and private placement warrants and the earn-out shares issuable under the terms of the merger agreement related to our business combination with CMLS.(5)   For the nine months ended September 30, 2021, the amount represents funding received under the CARES Act Provider Relief Fund in the first quarter of 2021.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2283257401"}