SOPHiA GENETICS Reports Positive Growth in 2024 Quarterly Financial Results

SOPHiA GENETICS Announces Fourth Quarter 2024 Financial Results

Introduction
SOPHiA GENETICS, listed on NASDAQ as SOPH, has emerged as a leader in data-driven medicine, leveraging cloud-native technologies to enhance patient care globally. On March 4, 2025, the company released its financial results for the fourth quarter and the full year of 2024, showcasing a blend of growth and challenges that painted a comprehensive picture of its operational standing.

Financial Highlights

In the fourth quarter of 2024, SOPHiA GENETICS reported revenues of $17.7 million, marking a 4% increase year-over-year. This growth is a positive indicator for the company, especially when excluding revenue linked to COVID-19, which showed a 6% increase on a constant currency basis. The gross margin was reported at 68.2%, with an adjusted gross margin of 74.2%, both of which indicate a significant capacity for revenue generation despite some operational hurdles. Moreover, the operating loss stood at $17.4 million but showed year-over-year improvement, with losses narrowing by 8% on reported measures and 23% on an adjusted basis.

For the entire fiscal year 2024, SOPHiA GENETICS achieved total revenues of $65.2 million, representing a 4% increase from the prior year. Gross margins similarly reflected positive growth trends, coming in at 67.4% with adjusted measures at 72.8%. The operating loss for the year totaled $66.6 million, which marked an 11% improvement year-over-year. These figures emphasize the company's ability to streamline operations while pushing for growth, despite experiencing some headwinds in the biopharma sector.

Strategic Developments

Jurgi Camblong, CEO and co-founder of SOPHiA GENETICS, expressed optimism about the company's trajectory, stating, "We continued driving widespread adoption of SOPHiA DDM™ in 2024, achieving a record number of analyses... despite BioPharma headwinds which impacted overall performance." The company achieved an impressive 352,000 analyses in FY 2024, reflecting an 11% growth in volume from the previous year. Notably, both North America and the Asia-Pacific regions showed substantial gains in terms of growth rates, indicative of expanding market share which bodes well for future performance.

Customer Growth and Product Expansion

In a strategic move, SOPHiA GENETICS added 92 new customers across the year, with a record 35 implementations occurring in Q4 alone. This customer acquisition is crucial for fueling SOPHiA’s platform growth and expanding its reach in the clinical sector.
Recent partnerships, including collaborations with major health institutions like Mount Sinai in the United States and Fundación Jiménez Díaz in Spain, highlight the confidence that these organizations place in SOPHiA DDM™. Additionally, the launch of the Liquid Biopsy application MSK-ACCESS® has attracted immediate interest, having signed 34 new customers since its launch in Q2 2024. This product launch should impact revenue positively as these clients begin to utilize it more extensively in the clinical workflow.

Performance Outlook for 2025

As SOPHiA GENETICS looks ahead into 2025, the company has projected revenues to be between $72 million and $76 million, showcasing anticipated growth rates of approximately 10% to 17% compared to 2024. In conjunction with this revenue forecast, an adjusted EBITDA loss is expected to range from $35 million to $39 million, which is an improvement over the previous year’s loss of $40.2 million.

The company remains committed to enhancing operational efficiencies. The focus on sustainable growth is evident in its plans to reach near break-even adjusted EBITDA by the end of 2026.

Conclusion

Overall, SOPHiA GENETICS' Q4 and full-year 2024 results highlight a resilient company that, while encountering sector challenges, continues to drive innovation and capitalize on market opportunities. The progress made in advancing its technology and establishing valuable partnerships positions it well for continued success in the evolving landscape of healthcare technology. As it transitions into 2025, the emphasis on robust customer growth alongside operational excellence is bound to define its future trajectory in the increasingly competitive field of data-driven medicine.