#USA #Boston #SOPHiA GENETICS #data-driven medicine #SOPHiA DDM

SOPHiA GENETICS Reports Strong First Quarter 2025 Results

SOPHiA GENETICS (NASDAQ: SOPH), a pioneering company in data-driven medicine, recently reported remarkable financial performance for the first quarter of 2025, which ended on March 31. The company, headquartered in Boston and Rolle, Switzerland, has shown impressive year-over-year growth, signaling a robust demand for its innovative solutions.

Financial Highlights

In the first quarter of 2025, SOPHiA GENETICS reported revenues of $17.8 million, marking a 13% increase compared to the same period last year. When adjusted for constant currency, the growth rate stands at 15%.

The gross margin has seen a significant boost, reported at 68.7% overall, with an adjusted margin reaching 75.7%, reflecting a strong enhancement from 65.9% (reported) and 70.5% (adjusted) in Q1 2024. However, the company faced a net loss of $17.4 million, a 27% increase year-over-year, impacted by a foreign exchange loss of $5.2 million. On a positive note, the adjusted EBITDA loss improved by 24%, reducing to $9.8 million.

Jurgi Camblong, the CEO and co-founder of SOPHiA, emphasized the significance of these results, asserting, "We started the year strong with year-over-year revenue growth as the substantial contracts signed last year begin to materialize. Moreover, our efforts in optimizing SOPHiA DDM™'s capabilities have led to a record gross margin, reflecting our focus on cost-effective management across all areas."

Business Developments and Strategic Initiatives

SOPHiA GENETICS has seen tremendous engagement with its platform. In Q1 2025, the company conducted 93,000 analyses using SOPHiA DDM™, achieving an 11% increase in volume compared to the previous year. Their clientele base has also expanded, reaching 490 core genomics customers, which is an increase from 463 at the end of Q1 2024. The company welcomed 33 new core genomics customers in the latest quarter, compared to an average of 23 per quarter in 2024.

The demand for their services has surged particularly in North America (NORAM) and Asia Pacific (APAC), achieving 32% and 40% year-over-year growth, respectively. Moreover, SOPHiA has crossed a monumental milestone, having analyzed a cumulative 2 million genomic profiles since inception.

In terms of customer acquisition, SOPHiA secured 28 new core genomics clients in the first quarter, a notable increase from 20 in the same period last year. Illustrative of their geographic diversification, significant new affiliations include hospitals in Belgium, Canada, and Malaysia, adopting various applications within SOPHiA DDM™.

Outlook and Future Prospects

Looking forward, SOPHiA remains confident in long-term growth, buoyed by strong business momentum and innovations like the new Liquid Biopsy application, MSK-ACCESS®. The company maintains its guidance for full-year revenue between $72 million and $76 million, alongside an expected adjusted EBITDA loss between $35 million and $39 million. Camblong expressed optimism about the upcoming opportunities in the U.S. market and plans for further partnerships with top-ranked hospitals.

In conclusion, SOPHiA GENETICS stands at a pivotal moment, with its revenues growing steadily alongside solid customer engagement and technological advancements. The company's commitment to operational excellence and its ability to navigate the complexities of the healthcare landscape positions it well for future successes. Investors and stakeholders will be keen to observe the further developments from this innovative firm as they continue to solidify their role in the realm of data-driven medicine.