Sema4 Holdings Corp.

Good afternoon. Thank you for standing by, and welcome to the SEMA 4 Second Quarter 2021 Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star 1 on your telephone. To withdraw a question, press the pound key. Please be advised that today's conference is being recorded. If you require any operator assistance, press star 0. I would now like to hand the conference over to Vice President of Finance and Corporate Development, Joel Kaufman. Sir, give it to you.

Good afternoon, everyone. Thank you for participating in today's conference call. Participating for the company today will be Eric Schott, Founder and Chief Executive Officer, Isaac Rode, Chief Financial Officer, and Jamie Coffin, President and Chief Operating Officer. Earlier today, Semaphore released financial results for the second quarter ended June 30, 2021. A copy of the press release is available on the company's website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. Actual results may vary materially from those expressed or implied in the forward-looking statements due to a variety of factors. Additionally, these forward-looking statements, particularly our target volume for 2021 and our target revenue for 2023, involve a number of risks and uncertainties and assumptions. For a list and descriptions of the risks and uncertainties associated with Semaphore's business, please refer to the risk factors section of our definitive proxy statement filed with the Securities and Exchange Commission on July 2, 2021. We urge you to consider these factors, and you should be aware that these statements should be considered estimates only and are not a guarantee of future performance. During the call, we may discuss certain non-GAAP financial measures. For reconciliations of non-GAAP measures to GAAP financial measures, as well as other information regarding these measures, please refer to our earnings release and other materials in the investor relations section of our website. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 16, 2021. Semaphore disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I'll turn the call over to Eric.

Great. Thanks, Joel, and thanks to everyone joining us this afternoon. Of course, this is a big day for Semaphore with our first earnings call as a public and independent company, a company that I conceived of in 2012 inside the Mount Sinai Health System. What inspired the company's formation was a foundational view that rapid advances in genomics and artificial intelligence, along with the exponentially growing oceans of molecular imaging and clinical data, could and should be integrated into an information platform able to deliver a broad array of algorithms that, when appropriately wired into physician workflows, provide state-of-the-art, clinically actionable insights to patients and physicians, allowing them to more efficiently diagnose, treat, and even prevent disease and maintain wellness. This vision became my and the company's main mission, and today we are powered by more than 1,000 professionals focused on advancing the use of big data advanced artificial intelligence developments in machine learning and probabilistic causal reasoning to deliver better patient outcomes and transform the practice of medicine. Our success is underpinned by our access to data and by Semaphore's proprietary health intelligence platform, Centralis, one of the largest, most comprehensive, and fastest-growing integrated health information platforms in existence. Similarly, the software and the machine learning and other artificial advanced artificial intelligence learning capabilities built into this software are among the most sophisticated in the world. At the end of Q2, the platform had access to roughly 20 million patients with de-identified deep longitudinal clinical records across 12 million of these patients, hundreds of thousands of matched genomic profiles, and more general data assets comprised of more than 35 petabytes of genomic tests, comprehensive medical record, and among the most relevant life and biomedical science data in the digital universe. These data are organized, structured, and annotated and curated in a manner that provides easy access and facilitates analysis and reporting by artificial intelligence methods that reside within the Centralis platform. Standing today as an independent company, we are in a strong position, having completed a strategic merger with CM Life Sciences on July 22nd. which brought just over $500 million in cash onto the company's balance sheet and transformed our board of directors, adding top active and former life sciences CEOs, CFOs, and industry experts. With the right scale of capital and strategic talent, 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. We can also now significantly accelerate the pace of investment in people, technology, and infrastructure required to extend our market leadership position in pursuit of our mission, helping physicians deliver better health outcomes for patients. From where we sit today and incorporating future investments that Isaac will discuss in a moment, we see a path to $500 million in revenue by 2023. with each sample process adding clinically relevant data to our platform and further informing insights to help physicians and patients make better clinically actionable choices. Continually feeding the database is what powers our business and the long-term earnings potential of Semaphore. In the last three months alone, we've processed more than 70,000 non-COVID samples and cataloged close to 4.5 petabytes of data generating a number of new clinically relevant insights, some of which have recently come out in high-impact journals such as Clinical Cancer Research, Nature Digital Medicine, and the Journal of the American Medical Informatics Association, some of which detail our digital phenotyping algorithms and applications to predicting risks of complications from common health course journeys such as pregnancy, where predictions significantly outperform current standard of care assessments. Already, we have demonstrated patients' willingness to partner with us with over 80% of patients using our diagnostic solutions and patient portal, giving us their IRB-approved informed consent to retrieve, organize, and manage their health records and data in partnership with them. We have grown the number of patient records to which we have access by roughly 100% in the last year, and we believe that our robust, battle-tested platform is ready to scale across an even broader network of partners in the ecosystem. In fact, Amazon even recently acknowledged Centralis as a game changer in terms of its robustness, completeness, and ability to secure and manage large stores of data while scaling to execute increasingly complex clinical and research workloads on Amazon Web Services. Of course, our success to date is just the beginning. As we grow our already massive data resources, our competitive moat grows stronger, increasing the volume of tests, patient engagement, and system partnerships in a more integrated and holistic way to facilitate delivery of precision medicine as a standard of care. This all operates like a virtuous cycle, improving the available insights, powering better health outcomes, and in turn driving more volumes. which, of course, we expect to lead to more revenues and more profits for our business. With a new influx of capital, we are able to build out our solutions organically and inorganically and extend our footprint. Importantly and critically, our business model is one of partnership with patients, physicians, and health systems, positioning us to not only help expand the information and data available in the Semaphore platform, but to deliver differentiated, clinically actionable insights to patients in the context of their care at these health systems. In fact, today we are highlighting the three new partners we have brought into the Semaphore network this year, North Shore University Health System, AdventHealth, and Avera Health. These deals have expanded our reach to an additional estimated 10 million lives and given us the opportunity to deliver better care at lower cost, which is the realization of precision medicine impacting the standard of care across a broad range of practices. Over the next few years, we expect to partner closely with an increasing number of health systems and to adapt our health intelligence platform to enable these health systems to deliver precision medicine across a broad range of disease categories as the standard of care. While there are many companies that seek to address various components of our solution, none have been able to wire these components together at scale and in a way that fully engages health systems as a health delivery partner. We have been at this for nearly a decade and did so within one of the leading health systems in the U.S., allowing us to design a holistic delivery of precision medicine that produces results. We believe that's what makes us a partner of choice. Our sophisticated platform draws upon information from many sources, from advanced genomic testing solutions to patient electronic medical records and physician notes to hospital records and population health, Among many other large-scale sets of data available in the digital universe of data, Semaphore enables patients and providers to drive differentiated insights in real time that can dramatically improve the standard of care. It is an incredibly exciting time at Semaphore as we scale up our commercial activities, invest in strategic collaborations, and actively explore opportunities for inorganic growth. We envision a future where doctors and patients routinely query our platform of algorithms to help determine the most optimal health course journey personalized to each individual. Before I pass this over to Isaac to review our second quarter financial results, I'd like to take a couple of minutes to share some examples of Semaphore's impact on patients that demonstrate the power of the Semaphore platform and the new emerging standard of care. After being diagnosed with stage 4 lung cancer, one of our patients, a 76-year-old woman, was offered the current standard of care for this type of cancer, platinum-based chemotherapy and palliative radiation treatment. However, after the patient's family sought a second opinion, they locked on to a medical oncologist plugged into the semaphore oncology platform, and our whole exome, whole transcriptome sequencing solution was carried out and identified that the PD-L1 pathway was activated in the patient's tumor, a pathway that had not been identified as being in play from the initial characterization carried out on her tumor. As a result of the insights delivered by the Centralis platform in conjunction with a multidisciplinary team, the tumor was reclassified as a stage 3B tumor, and with PD-L1 activated, a precision oncology combination treatment approach consisting of Keytruda Primextra and Carboplatin was undertaken, and after six cycles, the patient achieved a solid response with the tumor shrinking by 85%. No cancer growth or metastases observed elsewhere with regular CT monitoring, and the patient is, again, active and living a full life and planning for the next 5 to 10 years plus. We are excited to deliver these more advanced solutions in partnership with HealthSystems like Avera Health and our new precision oncology program we announced with them last week. Beyond this type of individual patient story, our genomic testing and information platforms demonstrate dramatic advances in patient outcomes at population scale. Consider that with our expanded carrier screening genomic solution, we now routinely identify a greater than five-fold increased rate of carrier couples compared to today's standard of care advocated by professional organizations and large national payers out of all couples tested, where these carrier couples are at a 25 percent or greater risk of transmitting a very severe genetic disorder to their offspring. The impact of using a reproductive health genomic solution is a dramatic increase in reproductive health choices, reduced incidence of children born with rare genetic disorders, and lower overall healthcare burden. That's the power of our platform and the potential ahead. Now I'm going to turn it over to our CFO, Isaac Rowe.