Sophia Genetics(SOPH) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for 2024 was $65.2 million, representing a year-over-year growth of 4% [50] - Adjusted gross margin improved to 72.8%, up 60 basis points from the previous year [55] - Adjusted operating loss for 2024 was$ 44.8 million, improving by 20% year-over-year [56] - Total cash burn for 2024 was $58 million, up 5% from the previous year [57] Business Line Data and Key Metrics Changes - Clinical revenue grew 23% in the U.S. in 2024, with analysis volume increasing by 26% [16] - The company signed a record 92 new core genomic customers in 2024, with 35 new customers implemented in Q4 alone [13][14] - Hematology was the top-performing application in 2024, followed by Solid Tumors and rare disease applications [29] Market Data and Key Metrics Changes - North America and Asia Pacific saw significant growth, with volume growth of 33% and 40% year-over-year, respectively [27] - Latin America experienced a decline due to the acquisition of a top customer, but the company has since regained this business [28] Company Strategy and Development Direction - The company aims to expedite implementation times for new customers and expand usage across accounts as a key growth driver [12] - Focus on growing new applications, MSK-ACCESS and MSK-IMPACT, which are expected to significantly impact clinical and BioPharma businesses [20][21] - Continued investment in product upgrades and launches, including Enhanced Exomes and improvements to Liquid Biopsy offerings [31][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the BioPharma sector due to tightened budgets but expressed optimism for recovery [8][76] - The company expects to report full-year revenue between$ 72 million and $76 million for 2025, representing 10% to 17% growth [59] - Management is confident in achieving adjusted EBITDA breakeven by the end of 2026 [67] Other Important Information - The company analyzed a record 352,000 patients on SOPHiA DDM in 2024, benefiting from a global reach of nearly 800 healthcare institutions [10] - The company has access to an additional$ 35 million of capital through a financing line with Perceptive Advisors [67] Q&A Session Summary Question: What are you seeing in terms of BioPharma funding and recovery trends? - Management noted that the BioPharma environment has been challenging, but they are seeing improved momentum in the pipeline and activity rates with pharma [75][80] Question: What indicators give you line of sight into customer volumes? - Management highlighted the backlog of signed contracts and the strong expansion of existing accounts as indicators of future customer volumes [87][89] Question: What is embedded in your ASP assumptions for 2025? - Management indicated that while volume growth is expected to be strong, ASPs may be impacted by the loss of certain pharma-linked business, but new products are expected to help pull ASPs back up [100][101]