NEW YORK – Sema4 reported after the close of the market on Monday that its second quarter revenues rose 56 percent year over year, driven by an increase in women's health and oncology tests as well as in collaboration services.
The company recently completed its merger with special purpose acquisition company CM Life Sciences, raising $510 million in net cash proceeds.
"Of course this is a big day for Sema4, with our first earnings call as a public and independent company," Sema4 CEO Eric Schadt said in a conference call to discuss the financial results. "We are now able to catalyze our efforts organically and inorganically at a level that was simply not possible while a private company inside the Mount Sinai health system."
For the quarter ended June 30, the Stamford, Connecticut-based firm booked $46.9 million in revenues, up from $30.1 million in the year-ago quarter. Diagnostic test revenue was $44.8 million, up 50 percent from $29.8 million, while other revenue increased almost sevenfold to $2.1 million from $306,000 in Q2 2020.
Excluding COVID-19 tests, Sema4 processed 71,702 diagnostic tests during the quarter, a growth of 85 percent year over year.
According to CFO Isaac Ro, oncology tests currently represent less than 5 percent of the company's testing volume but this business grew more than 300 percent year over year in Q2.
COVID-19 testing revenue declined by $12 million sequentially in Q2 compared to Q1, he added, and only accounted for 8 percent of total revenues during the quarter.
At the end of the quarter, Sema4's health intelligence platform, Centrellis, had access to data from approximately 20 million patients, Schadt said, including de-identified longitudinal clinical records for 12 million patients and hundreds of thousands of genomic profiles.
Schadt also mentioned that the company recently had several publications in medical journals demonstrating how its data analysis was able to generate clinically relevant insights.
Sema4's Q2 net loss increased to $45.4 million from $32.1 million in the year-ago quarter.
R&D expenses for the quarter totaled $12.0 million, up 28 percent from $9.4 million a year ago, driven by an increase in depreciation costs and in expenses for reagents, lab supplies, and software.
SG&A expenses were $29.0 million, up 73 percent from $16.8 million last year, mainly because of increased personnel expenses and costs related to the merger.
As of June 30, Sema4 had $26.5 million in cash and cash equivalents, but the firm subsequently raised approximately $510 million in July through its merger with CM Life Sciences.
The company did not provide revenue guidance for 2021 but said that it is targeting $500 million in revenues for 2023. Ro also said that Sema4 is targeting 50 percent non-COVID-19 test volume growth in 2021.
In Tuesday morning trading on the Nasdaq, shares of Sema4 were down almost 14 percent at $9.79.