SOPHiA GENETICS S.A. Q1 FY2025 earnings call

• Jurgi Camblong noted Q1 performance was slightly ahead of expectations with revenue growth reaccelerating and cost management improving. Revenue grew 15% constant currency and 13% reported. Adjusted EBITDA loss improved 24% to $9.8 million.
• Ross Muken discussed strong new business across geographies, with North America and Asia Pacific showing growth. HemOnc testing volumes grew 34% year-over-year. New customer signings and expands were highlighted globally, including partnerships with Henry Ford Hospital, Mayo Clinic, and others.
• George Cardoza reviewed Q1 financial results, including revenue, platform analysis volume, gross margin, operating expenses, adjusted EBITDA, and cash burn. He also mentioned the company's commitment to approaching adjusted EBITDA breakeven by end of 2026 and positive adjusted EBITDA by second half of 2027.

No detailed breakdown by product segment was provided in the transcript. However, key financials included total revenue for Q1 2025 was $17.8 million, up 13% year-over-year. Platform analysis volume grew 11% year-over-year to approximately 93,000. Core genomic customers increased to 490 as of March 31, 2025. Gross profit was $12.2 million, with adjusted gross margin reaching a record high of 75.7%.

• Reaffirmed full-year revenue guidance for 2025 at $72 million to $76 million, representing 10% to 17% growth on a reported basis.
• Reaffirmed full-year adjusted EBITDA loss guidance of $35 million to $39 million.
• Stated the goal to approach adjusted EBITDA breakeven by end of 2026 and achieve positive adjusted EBITDA in the second half of 2027.

• Macro uncertainties affecting exchange rates may impact reported results.
• Fluid tariff situation, but minimal material impact expected as consumable shipments to U.S. were a small portion of revenue in 2024 and tariffs are manageable with raw materials sourced in U.S.
• Continued scrutiny of expenditures to maintain growth targets and operational efficiencies.

Q: William Bonello asked about accelerating implementation time and average contract value increase.

A: Jurgi Camblong and Ross Muken responded about tooling, process improvements, headcount in field application scientists, and enterprise sales where customers are adopting multiple applications. Ross noted deal size is increasing due to more complex implementations and industrialization of processes.

Q: Conor McNamara asked about gross margin sustainability and BioPharma business.

A: George Cardoza said first quarter gross margin was slightly higher due to favorable mix but expected to improve year-over-year. Jurgi and Ross discussed BioPharma pipeline progress, with pharma expected to be flat in 2025 and a significant benefit in 2026.

Q: Unidentified Analyst asked about AstraZeneca collaboration and balance sheet.

A: Jurgi and Ross discussed the successful partnership with AstraZeneca, expansion of collaboration, and George Cardoza mentioned the balance sheet had over $100 million in available liquidity with $68.5 million in cash and cash equivalents as of March 31, 2025.

Q: Subbu Nambi asked about customer churn and cross-selling MSK-ACCESS and MSK-IMPACT.

A: Ross Muken discussed customer mix and low churn percentage. Jurgi Camblong mentioned MSK-ACCESS had 30 adopters and both applications were early but expected to grow.