Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $18.3 million, representing a year-over-year growth of 16% compared to $15.8 million in Q2 2024 [35] - Cash burn decreased to $8.7 million in Q2 2025, a 35% year-over-year improvement [42] - Adjusted gross margin improved to 74.4%, up 120 basis points from 73.2% in Q2 2024 [38] Business Line Data and Key Metrics Changes - Revenue excluding biopharma grew 20% year-over-year in Q2 2025, while overall revenue growth was 16% due to modest headwinds from biopharma [19][20] - HemOnc analysis grew 19% year-over-year in Q2 2025, indicating strong performance in hematology testing [21] - Liquid biopsy revenue increased by approximately 900% year-over-year, with 50 customers now using the MSK Access application [72] Market Data and Key Metrics Changes - In North America, revenue excluding biopharma grew more than 19% year-over-year in Q2 2025 [9] - Asia Pacific saw almost 100% year-over-year revenue growth, with significant new business momentum [27] - EMEA growth remained solid, particularly in the UK, which saw over 50% year-over-year volume growth [20] Company Strategy and Development Direction - The company is focused on expanding its customer base, having signed a record 35 new customers in Q2 2025, bringing the total to 63 new customers for the year [8][22] - A major new multi-year partnership with AstraZeneca was announced, focusing on AI-driven predictive models for breast cancer treatment [13][34] - The company aims to optimize cloud compute and storage costs while expanding gross margins beyond 2024 levels [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, with strong forward-looking indicators such as new business bookings and a robust pipeline [44][48] - The company anticipates that Q4 will be the strongest quarter seasonally, reaffirming full-year revenue guidance of $72 million to $76 million [44] - Management remains focused on achieving adjusted EBITDA breakeven by 2026 and positive adjusted EBITDA by 2027 [42] Other Important Information - The company reported a net dollar retention rate of 107% for the quarter, indicating strong performance in Europe and North America [37] - Total operating expenses for Q2 2025 were $30.8 million, a 19% year-over-year increase primarily due to higher sales and marketing expenses [39][40] - The company has drawn $35 million in debt financing to strengthen its cash position, finishing the quarter with cash and cash equivalents of $94.8 million [43] Q&A Session Summary Question: Can you provide additional details on the AstraZeneca partnership milestones? - Management confirmed that the AstraZeneca deal includes a series of deliverables over several quarters, with confidence in achieving the full value of the contract [52][55] Question: What is the competitive landscape for rare disease applications outside the US? - Management noted that they are seeing strong growth in rare inherited disorders, with a 20% year-over-year increase, and emphasized their competitive positioning in this area [58][61] Question: What prompted the decision to draw the $35 million revolver? - The decision was made to strengthen the cash position in light of accelerating growth across clinical and pharma sides [67][70] Question: What are the adoption trends for MSK Access in the US? - Management reported that liquid biopsy is gaining clinical relevance, with 11 new customers signed for MSK Access in Q2, bringing the total to 50 [72][73] Question: Can you provide insights on the size and structure of the AstraZeneca contract? - Management indicated that the contract includes a mix of base payments and milestone payments, with confidence in recognizing the full value [94][95]

Company Overview - SOPHiA GENETICS' Ai platform SOPHiA DDM™ is used by over 800 healthcare institutions globally to analyze complex health data for cancer and rare disorders[7] - The platform analyzes over 350,000 patients annually and has analyzed over 2 million profiles since its inception[8, 21] - The company has invested over $450 million since its inception in its Ai platform[21, 57] Market Trends - The incidence of cancer and rare disorders is increasing worldwide, driving demand for targeted therapies[13] - Healthcare data is rapidly expanding, with 30% of all data generated globally being healthcare-related[16] - The Total Addressable Market (TAM) for Liquid Biopsy is estimated to be over $5 billion[56] Financial Performance - SOPHiA GENETICS' revenue for 2024 was $65.2 million[60] - The company projects revenue between $72 million and $76 million for 2025, representing a year-over-year growth of approximately 10% to 17%[60, 63] - Adjusted EBITDA loss is projected to be between $35 million and $39 million in 2025, compared to $40.2 million in 2024[63] - The company's adjusted gross margin was 72.8% in 2024 and is expected to expand slightly in 2025[63]

Summary of Sofia Genetics Conference Call Company Overview - **Company**: Sofia Genetics - **Event**: RBC Capital Markets Global Healthcare Conference 2025 - **Key Speakers**: CFO George Cardoza, Head of Strategy Kellen Sanger Financial Performance - **Q1 Gross Margin**: Achieved nearly 76%, with expectations for continued year-over-year expansion despite some one-off items affecting this figure [3][4] - **EBITDA Conversion**: The company aims to convert over 60% of incremental revenue to EBITDA, with recent performance exceeding this target [3] Revenue Growth Strategy - **Customer Acquisition**: Added 92 new customers in the past year, with 28 in Q1 alone, focusing on a "land and expand" strategy [6][7] - **Customer Utilization**: Average customer uses 2.6 applications, with efforts to increase routine usage among new customers [8][9] - **Geographic Focus**: Significant growth in the U.S. market, with a reported 30% growth rate, while European growth is expected to be slower [10][17] Market Dynamics - **Liquid Biopsy Testing**: The company has established a strong presence in liquid biopsy testing, collaborating with institutions like Memorial Sloan Kettering [20][21] - **Regulatory Environment**: Recent clarity on LDT regulations has positively impacted customer adoption rates [23][24] Long-Term Growth Projections - **Growth Targets**: The company expects to achieve over 20% growth by the end of the year, with historical CAGR of 23% as a benchmark [25][17] - **Pharma Business Outlook**: Anticipated recovery in the pharma sector, which faced challenges in the previous year, is expected to contribute to growth in 2026 and 2027 [17][30] Data and Technology - **Patient Sample Data**: Over 2 million patient samples collected, which is seen as a valuable asset, especially with advancements in AI technology [26][29] - **Data Ownership**: Hospitals retain ownership of patient data, while Sofia Genetics processes the data for insights [55][56] Path to Profitability - **EBITDA Guidance**: The company aims for adjusted EBITDA profitability by 2027, with a significant reduction in losses expected by the end of 2026 [59][60] Additional Insights - **Market Positioning**: Sofia Genetics is well-positioned to capitalize on increasing demand for sophisticated sequencing and liquid biopsy applications [13][14] - **Customer Economics**: The pricing model for liquid biopsy tests is higher than traditional offerings, providing hospitals with a new revenue stream [45][48] This summary encapsulates the key points discussed during the conference call, highlighting Sofia Genetics' financial performance, growth strategies, market dynamics, and future outlook.

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $17.8 million, up from $15.8 million in Q1 2024, representing a year-over-year growth of 13% [31] - On a constant currency basis, revenue growth was 15%, with foreign exchange headwinds negatively impacting reported revenue by approximately $0.4 million [31] - Adjusted EBITDA loss improved by 24% year-over-year to $9.8 million in Q1 2025 [35] - Adjusted gross margin reached a record high of 75.7%, up from 70.6% in Q1 2024 [33] Business Line Data and Key Metrics Changes - Core genomic customers increased to 490 as of March 31, 2025, up from 463 in the prior year [31] - The company implemented 33 new customers in Q1 2025, compared to an average of 23 per quarter in 2024 [8][47] - Hematology-oncology (HemOnc) volumes grew 34% year-over-year in Q1 2025, with over 180 HemOnc customers globally [20] Market Data and Key Metrics Changes - Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year [9] - UK analysis volume grew over 60% year-over-year, with UK revenue up approximately 80% [19] - In Asia Pacific, North America and Asia Pacific outperformed with 3240% year-over-year volume growth [18] Company Strategy and Development Direction - The company aims to capitalize on new customer signings by expediting implementation times and expanding across those accounts [8] - Focus areas for growth in 2025 include the U.S. market, new applications like MSK Access and MSK Impact, and partnerships with biopharma [10][11] - The company is positioned to leverage its scalable cloud-based platform to support medical innovations and expand its offerings in liquid biopsy and solid tumor applications [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, citing a strong start to 2025 and a solid pipeline of new business [43] - The company reaffirmed its full-year revenue guidance for 2025 of $70 million to $76 million, representing 10% to 17% growth [37] - Management noted that while Q1 results were strong, they expect the year to be back half weighted due to new business coming online [37][93] Other Important Information - The company finished Q1 2025 with cash and cash equivalents of approximately $68.5 million, with access to an additional $35 million through a financing line [36][88] - Total cash burn improved to $11.7 million in Q1 2025, down from $19.5 million in the prior year [36] Q&A Session Summary Question: Actions taken to accelerate implementation times - Management highlighted that they implemented 33 new customers in Q1 2025, up from an average of 23 in 2024, due to scaling up team capabilities and creating tooling and automation to speed up processes [47][49] Question: Average contract value increase and enterprise sales - Management confirmed that 58% of customers are using two or more applications, indicating room for expansion. The increase in average contract value is attributed to more complex solutions and enterprise-level sales [53][55] Question: Sustainability of gross margins above 75% - Management acknowledged that while Q1 gross margins were higher than expected due to a favorable mix, they anticipate continued year-over-year improvement but not at the same level in subsequent quarters [62][63] Question: Biopharma side opportunities and guidance - Management indicated that while they expect the biopharma segment to be flat in 2025, they are seeing good momentum and opportunities in the pipeline, particularly in companion diagnostics [68] Question: Impact of macro environment on capital investments - Management noted that while there is a trend of constraints on capital investments, their model operates on an OpEx basis, which may present opportunities for growth as labs seek to avoid large capital expenditures [71][73]

Company Performance - SOPHiA GENETICS reported a quarterly loss of $0.26 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, representing an earnings surprise of -23.81% [1] - The company posted revenues of $17.78 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 7.30% and showing an increase from $15.78 million in the same quarter last year [2] - Over the last four quarters, SOPHiA GENETICS has surpassed consensus EPS estimates two times and topped consensus revenue estimates twice [2] Market Outlook - SOPHiA GENETICS shares have increased by approximately 2.3% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.20 on revenues of $17.85 million, and for the current fiscal year, it is -$0.80 on revenues of $74.18 million [7] Industry Context - The Medical Info Systems industry, to which SOPHiA GENETICS belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for SOPHiA GENETICS is currently favorable, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $17.8 million, up from $15.8 million in Q1 2024, representing a year-over-year growth of 13% [32] - On a constant currency basis, revenue growth was 15%, with foreign exchange headwinds negatively impacting reported revenue by approximately $0.4 million [32] - Adjusted EBITDA loss improved by 24% year-over-year, reaching $9.8 million in Q1 2025 compared to $12.9 million in Q1 2024 [36] - Adjusted gross margin reached a record high of 75.7%, up from 70.6% in the prior year [34] Business Line Data and Key Metrics Changes - Core genomic customers increased to 490 as of March 31, 2025, up from 463 in the prior year [32] - The company implemented 33 new customers in Q1 2025, compared to an average of 23 per quarter in 2024 [8][32] - Hematology-oncology (HemOnc) volumes grew 34% year-over-year in Q1 2025, with over 180 HemOnc customers globally [21] Market Data and Key Metrics Changes - Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year [9] - UK analysis volume grew over 60% year-over-year, with UK revenue up approximately 80% [20] - North America and Asia Pacific outperformed with 3240% year-over-year volume growth respectively [19] Company Strategy and Development Direction - The company aims to capitalize on new customer signings by expediting implementation times and expanding across those accounts over time [8] - Focus areas for growth in 2025 include the U.S. market, new applications like MSK Access and MSK Impact, and partnerships with biopharma [9][11] - The company is positioned to leverage its scalable cloud-based platform to support medical innovations and drive future growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, citing the increasing demand for data-driven medicine and the company's unique AI capabilities [44] - The company reaffirmed its full-year revenue guidance for 2025 of $70 million to $76 million, representing 10% to 17% growth [38] - Management noted that while Q1 results were strong, they expect the year to be back-half weighted due to the timing of new business coming online [38][94] Other Important Information - The company finished Q1 2025 with approximately $68.5 million in cash and cash equivalents, plus access to an additional $35 million in capital [37] - The company is focused on maintaining operational efficiencies while continuing to invest in high ROI projects [36] Q&A Session Summary Question: Actions taken to accelerate implementation times - Management highlighted that they have scaled up team capabilities, created tooling and automation, and increased headcount in wet lab and field application scientists to speed up the implementation process [48][50] Question: Average contract value increase and enterprise sales - Management confirmed that 58% of customers are using two or more applications, indicating room for expansion. They noted that enterprise sales involve signing for a majority of applications, which is driving the increase in average contract value [55][56] Question: Sustainability of gross margins above 75% - Management acknowledged that while Q1 gross margins were higher than expected due to a favorable mix, they still anticipate year-over-year improvements in gross margins moving forward [66] Question: Biopharma side opportunities and guidance - Management indicated that while they expect the biopharma segment to be flat in 2025, they are seeing good momentum and opportunities in the pipeline, particularly in companion diagnostics and sponsored testing [70] Question: Balance sheet sufficiency for adjusted EBITDA breakeven target - Management confirmed that with over $100 million in available liquidity, they are well-positioned to reach their adjusted EBITDA breakeven target by 2027 [90]

[Unaudited Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section encompasses the company's interim financial performance, position, cash flows, equity changes, and detailed notes for the period ended March 31, 2025 [Interim Condensed Consolidated Statements of Loss](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Loss) For the three months ended March 31, 2025, SOPHiA GENETICS reported revenue of $17.8 million, a 12.7% increase year-over-year, with net loss widening to $17.4 million despite improved operating loss Consolidated Statement of Loss (Q1 2025 vs Q1 2024) | Financial Metric | Three months ended March 31, 2025 (USD thousands) | Three months ended March 31, 2024 (USD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | **$17,779** | **$15,779** | **+12.7%** | | Gross Profit | $12,208 | $10,405 | +17.3% | | Operating Loss | ($16,036) | ($18,756) | -14.5% | | Foreign exchange (losses) gains, net | ($599) | $4,610 | N/A | | **Loss for the period** | **($17,385)** | **($13,704)** | **+26.9%** | | Basic and diluted loss per share | ($0.26) | ($0.21) | +23.8% | [Interim Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) The total comprehensive loss for Q1 2025 was $14.8 million, a significant improvement compared to a total comprehensive loss of $23.1 million in Q1 2024, primarily due to a positive currency translation adjustment Consolidated Statement of Comprehensive Loss (Q1 2025 vs Q1 2024) | Metric | Three months ended March 31, 2025 (USD thousands) | Three months ended March 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Loss for the period | ($17,385) | ($13,704) | | Currency translation adjustments | $2,586 | ($9,393) | | **Total comprehensive loss for the period** | **($14,752)** | **($23,112)** | [Interim Condensed Consolidated Balance Sheets](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $146.7 million from $155.3 million at year-end 2024, mainly due to lower cash, resulting in a decrease in total equity to $85.6 million Balance Sheet Summary | Account | March 31, 2025 (USD thousands) | December 31, 2024 (USD thousands) | | :--- | :--- | :--- | | **Total Assets** | **$146,719** | **$155,309** | | Cash and cash equivalents | $68,528 | $80,226 | | Total current assets | $90,051 | $99,405 | | **Total Liabilities** | **$61,106** | **$58,819** | | Total current liabilities | $28,944 | $26,803 | | **Total Equity** | **$85,613** | **$96,490** | [Interim Condensed Consolidated Statements of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased by $10.9 million during Q1 2025, primarily due to a net loss of $17.4 million, partially offset by other comprehensive income and share-based compensation - The company's total equity fell from **$96.5 million** on January 1, 2025, to **$85.6 million** on March 31, 2025[11](index=11&type=chunk) - The main drivers of the equity change were the net loss for the period (-**$17.4 million**), other comprehensive income (+**$2.6 million**), and share-based compensation (+**$3.8 million**)[11](index=11&type=chunk) [Interim Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2025, net cash used in operating activities improved to $10.8 million from $14.6 million in Q1 2024, with cash and cash equivalents decreasing by $12.8 million to $68.5 million, following a retrospective reclassification of interest payments and receipts Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Three months ended March 31, 2025 (USD thousands) | Three months ended March 31, 2024 (USD thousands) | | :--- | :--- | :--- | | Net cash flows used in operating activities | ($10,750) | ($14,645) | | Net cash flow used in investing activities | ($1,039) | ($1,005) | | Net cash flow used in financing activities | ($990) | ($743) | | **Decrease in cash and cash equivalents** | **($12,779)** | **($16,393)** | | **Cash and cash equivalents at end of the period** | **$68,528** | **$103,735** | - Effective January 1, 2025, the company changed its accounting policy to reclassify interest paid from operating to financing activities and interest received from operating to investing activities, with prior periods recast for comparability[13](index=13&type=chunk)[23](index=23&type=chunk)[27](index=27&type=chunk) [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on the company's operations, accounting policies, financial instruments, and other key items, including revenue disaggregation, a new credit agreement, and key management compensation [Company Information and Accounting Policies](index=8&type=section&id=1.%20Company%20information) SOPHiA GENETICS is a Swiss-based, cloud-native software company focused on data-driven medicine, with financial statements prepared under IAS 34, including a significant accounting policy change for interest classification and the elimination of a designated cash requirement - The company is a cloud-native software company dedicated to data-driven medicine, commercializing its SOPHiA DDM™ Platform[15](index=15&type=chunk) - Effective January 1, 2025, interest paid was reclassified from operating to financing cash flows, and interest received was reclassified from operating to investing cash flows[23](index=23&type=chunk)[24](index=24&type=chunk) - In July 2024, the company eliminated the requirement to maintain a **$15 million** designated cash account for its D&O insurance policy[22](index=22&type=chunk) [Fair Value](index=11&type=section&id=2.%20Fair%20Value) The company's financial instruments measured at fair value include Level 1 money market funds valued at $27.5 million and a Level 2 warrant obligation valued at $0.5 million as of March 31, 2025 Fair Value Hierarchy (March 31, 2025) | Financial Instrument | Level 1 (USD thousands) | Level 2 (USD thousands) | Level 3 (USD thousands) | | :--- | :--- | :--- | :--- | | Money market funds | $27,477 | $— | $— | | Warrant obligation | $— | $482 | $— | [Financial Risk Management](index=12&type=section&id=3.%20Financial%20Risk%20Management) The company is exposed to various financial risks, including credit, liquidity, and market risks, with no significant changes in its risk management approach since the end of 2024 - The company's exposure to financial risks and its risk management policies have not changed significantly since December 31, 2024[39](index=39&type=chunk) [Segment Reporting](index=12&type=section&id=4.%20Segment%20Reporting) SOPHiA GENETICS operates as a single operating segment, with the Chief Executive Officer assessing performance on a consolidated basis - The company operates in a single operating segment, with performance assessed as a whole by the CEO[40](index=40&type=chunk) [Revenue](index=13&type=section&id=5.%20Revenue) For Q1 2025, total revenue was $17.8 million, primarily from the SOPHiA DDM Platform, with EMEA contributing 70% and NORAM 17% of total revenue Revenue by Geographic Market (Q1 2025 vs Q1 2024) | Region | Q1 2025 Revenue (USD thousands) | Q1 2024 Revenue (USD thousands) | | :--- | :--- | :--- | | EMEA | $12,467 | $11,003 | | NORAM | $3,055 | $2,980 | | LATAM | $966 | $782 | | APAC | $1,291 | $1,014 | | **Total** | **$17,779** | **$15,779** | Revenue by Stream (Q1 2025 vs Q1 2024) | Revenue Stream | Q1 2025 Revenue (USD thousands) | Q1 2024 Revenue (USD thousands) | | :--- | :--- | :--- | | SOPHiA DDM Platform | $17,345 | $15,418 | | Workflow equipment and services | $434 | $361 | | **Total** | **$17,779** | **$15,779** | [Accounts Receivable](index=14&type=section&id=6.%20Accounts%20receivable) Net accounts receivable increased to $10.7 million as of March 31, 2025, from $7.4 million at year-end 2024, with the largest customer representing 16% of the total balance - Net accounts receivable stood at **$10.7 million** as of March 31, 2025, compared to **$7.4 million** as of December 31, 2024[44](index=44&type=chunk) - The company's largest customer accounted for **16%** of the accounts receivable balance as of March 31, 2025[44](index=44&type=chunk) [Loss Per Share](index=14&type=section&id=7.%20Loss%20per%20share) The basic and diluted loss per share for Q1 2025 was $(0.26), calculated from a net loss of $17.4 million and 66.8 million weighted average shares outstanding, an increase from $(0.21) in Q1 2024 Loss Per Share Calculation | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net loss attributed to shareholders (USD thousands) | $(17,385) | $(13,704) | | Weighted average number of shares in issue | 66,844,516 | 65,308,830 | | **Basic and diluted loss per share** | **$(0.26)** | **$(0.21)** | [Leases](index=15&type=section&id=8.%20Leases) In June 2024, the company entered into a 73-month office lease in Boston, recognizing a $2.0 million right-of-use asset and a $1.9 million lease liability in September 2024 - The company signed a 73-month lease for office space in Boston in June 2024, recording a right-of-use asset of **$2.0 million** and a lease liability of **$1.9 million**[46](index=46&type=chunk) [Borrowings](index=15&type=section&id=9.%20Borrowings) In May 2024, the company secured a $50.0 million credit agreement with Perceptive Credit Holdings, drawing $15.0 million and issuing warrants, while terminating an existing CHF 5.0 million credit facility - Entered into a credit agreement for up to **$50.0 million** with Perceptive Credit Holdings in May 2024, drawing an initial **$15.0 million**[47](index=47&type=chunk) - Issued warrants to purchase up to **400,000** ordinary shares at an exercise price of **$4.9992** per share in connection with the new credit agreement[48](index=48&type=chunk) - Terminated a **CHF 5.0 million** credit facility with Credit Suisse and entered into a new **CHF 0.1 million** facility in April 2024[53](index=53&type=chunk) [Share-Based Compensation](index=17&type=section&id=10.%20Share-based%20compensation) Share-based compensation expense for Q1 2025 totaled $3.8 million, a slight increase from $3.7 million in Q1 2024, with general and administrative functions accounting for the largest portion Share-Based Compensation Expense by Function (USD thousands) | Department | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Research and development | $1,005 | $905 | | Selling and marketing | $291 | $194 | | General and administrative | $2,539 | $2,615 | | **Total** | **$3,835** | **$3,714** | [Related Party Transactions](index=17&type=section&id=11.%20Related%20party%20transactions) Total compensation for key management personnel and non-executive directors increased to $4.8 million in Q1 2025 from $4.1 million in the prior-year period, driven by higher salaries and share-based compensation Key Management Compensation (USD thousands) | Compensation Type | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Salaries and other short-term benefits | $1,771 | $1,169 | | Pension costs | $71 | $70 | | Share-based compensation expense | $2,921 | $2,811 | | **Total** | **$4,763** | **$4,050** | [Events After the Reporting Date](index=17&type=section&id=12.%20Events%20after%20the%20reporting%20date) The company evaluated events occurring after the reporting period up to May 6, 2025, and identified no material subsequent events requiring recognition or disclosure - There were no material subsequent events to report after the March 31, 2025 reporting date[59](index=59&type=chunk)

Company Overview and Platform - SOPHiA GENETICS's AI platform SOPHiA DDM is used by over 800 healthcare institutions globally [7] - The platform analyzes over 350,000 patients per year and has analyzed over 2 million profiles since inception [8, 21] - The company has invested over $450 million since inception in its AI platform [21] Market Trends and Data Analysis - Healthcare data accounts for 30% of all data generated globally [17] - In 2024, SOPHiA DDM performed over 350,000 genomic analyses, with over 93,000 in Q1 2025 [33] - Total data processed on SOPHiA DDM has seen compounded growth of over 50% since 2021 [46] Financial Performance and Outlook - SOPHiA GENETICS' revenue for 2024 was $65.2 million [68] - The company projects revenue between $72 million and $76 million for 2025, representing approximately 10% to 17% year-over-year growth [71] - Adjusted gross margin was 72.8% in 2024 and is expected to expand slightly in 2025 [71] - The company had a cash balance of $68.5 million as of Q1 2025 [76]

Core Insights - SOPHiA GENETICS reported a strong start to 2025 with a year-over-year revenue growth of 13%, or 15% on a constant currency basis, driven by new business signed in 2024 [3][7] - The company achieved a record adjusted gross margin of 75.7%, up 520 basis points year-over-year, indicating effective cost management and operational efficiency [3][7] - The company continues to focus on long-term growth prospects, particularly in the U.S. market, where revenue from core genomics customers grew over 30% [3][13] Financial Performance - Revenue for Q1 2025 was $17.8 million, reflecting a 13% increase from $15.8 million in Q1 2024 [7][35] - Adjusted EBITDA loss improved by 24% year-over-year to $9.8 million, demonstrating progress towards profitability [7][33] - The company reaffirms its full-year revenue guidance of $72 million to $76 million, representing a growth of approximately 10% to 17% compared to FY 2024 [7][13] Business Highlights - SOPHiA DDM™ platform performed 93,000 analyses in Q1 2025, marking an 11% year-over-year volume growth [8] - The company onboarded 33 new core genomics customers in Q1 2025, up from an average of 23 customers per quarter in 2024 [8] - Significant demand for new applications, including the Liquid Biopsy application MSK-ACCESS®, has led to a healthy pipeline of over 60 identified opportunities [9][10] Market Expansion - The company expanded its collaboration with AstraZeneca to accelerate the deployment of MSK-ACCESS® globally, now involving 30 sponsored institutions [8] - New customers were signed across various geographies, including notable institutions in Belgium, Canada, and Malaysia [8][9] - The U.S. market continues to show strong business growth, with a focus on operational excellence and sustainable growth strategies [10][11]

Core Insights - SOPHiA GENETICS announced an expansion of its collaboration with AstraZeneca to enhance the global deployment of MSK-ACCESS® powered with SOPHiA DDM™, extending its reach to 30 clinical institutions in 2025 [1][3] Group 1: Collaboration and Expansion - The collaboration aims to accelerate the deployment of innovative liquid biopsy testing, which detects actionable genomic alterations from a single blood draw [2][3] - The expanded rollout will contribute to AstraZeneca's global real-world evidence initiatives and validate the clinical impact of decentralized liquid biopsy testing [3][4] Group 2: Technology and Performance - MSK-ACCESS® powered with SOPHiA DDM™ utilizes advanced algorithms to analyze circulating tumor DNA (ctDNA), supporting real-time cancer monitoring and treatment selection [2][4] - Data presented at AACR demonstrated the consistent accuracy and precision of the decentralized test across various laboratory settings, addressing historical site-to-site discordance issues [4][5] Group 3: Strategic Vision - The collaboration reflects a significant step toward scaling next-generation oncology diagnostics globally, with a shared ambition to enhance accessibility and impact of liquid biopsy technologies [5]