Sophia Genetics Sa ((SOPH)) has held its Q1 earnings call. Read on for the main highlights of the call.
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SOPHiA GENETICS’ recent earnings call revealed a positive sentiment, driven by strong revenue growth and an expanding customer base, particularly in the U.S. market. The company showcased successful cost management and strategic partnerships, although it faced challenges in Latin America and the biopharma segment.
Revenue Growth
SOPHiA GENETICS reported a 15% revenue growth on a constant currency basis and a 13% increase on a reported basis, reaching $17.8 million in Q1 2025 compared to $15.8 million in Q1 2024. This growth underscores the company’s ability to capitalize on its expanding market presence.
Increased Customer Base
The company added 28 new customers in Q1 2025, bringing the total number of core genomic customers to 490. This expansion reflects SOPHiA GENETICS’ successful strategy in attracting new clients and strengthening its market position.
U.S. Market Expansion
Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year. Significant expansions were announced at Henry Ford Hospital and Mayo Clinic, highlighting the company’s strong foothold in the U.S. market.
Partnership Expansion with AstraZeneca
SOPHiA GENETICS expanded its partnership with AstraZeneca to deploy MSK-ACCES globally, extending the scope to 30 sponsored institutions. This collaboration is expected to enhance the company’s global reach and capabilities.
Improved Gross Margin
The company achieved a record 75.7% adjusted gross margin, up 520 basis points year-over-year. This improvement reflects SOPHiA GENETICS’ effective cost management and operational efficiency.
Cost Management Success
SOPHiA GENETICS delivered a 24% year-over-year improvement to adjusted EBITDA loss, reducing it to $9.8 million in Q1 2025. This achievement underscores the company’s commitment to financial discipline and profitability.
Technology and Innovation
The SOPHiA DDM platform analyzed over 2 million genomic patient profiles since inception, marking a significant milestone in the company’s technological advancement and innovation.
Latin America Revenue Decline
The company experienced a slight decline in volume in Latin America due to the acquisition of one of its top customers by another lab. This challenge highlights the competitive dynamics in the region.
Challenge with Biopharma
The biopharma segment presented some modest headwinds, with expectations of flat growth in 2025. This indicates potential challenges in this sector that the company needs to address.
Revenue Churn
While SOPHiA GENETICS added 33 new customers, some smaller accounts that had not generated revenue over the past 12 months were churned out, maintaining a revenue churn rate of approximately 4%.
Forward-Looking Guidance
SOPHiA GENETICS provided promising guidance, with revenue expected to increase by 10% to 17% on a reported basis for the full year 2025. The company remains optimistic about reaching adjusted EBITDA breakeven by the end of 2026, driven by new customer signings and U.S. market expansion.
In summary, SOPHiA GENETICS’ earnings call highlighted a positive outlook with strong growth in revenue and customer base, particularly in the U.S. market. Despite challenges in Latin America and the biopharma segment, the company’s strategic partnerships and cost management efforts position it well for future success.