SOPHiA GENETICS Reveals Impressive Financial Growth in 2024
Overview of Financial Results
SOPHiA GENETICS, a leader in cloud-native software for data-driven medicine, announced its financial performance for the fourth quarter and full year 2024. The company recorded impressive revenue growth, reinforcing its position in the healthcare technology industry.
Fourth Quarter Financial Highlights
During the fourth quarter of 2024, SOPHiA GENETICS achieved remarkable revenue of $17.7 million, marking a year-over-year increase of 4%. When adjusting for foreign exchange rates and excluding COVID-19-related revenue, this growth stands at 6%, highlighting the underlying strength of the business.
Gross Margin Performance
The company reported a gross margin of 68.2% on a reported basis and a significantly higher 74.2% on an adjusted basis. Although there was a slight decrease compared to the previous year (69.8% reported and 73.4% adjusted), the margins indicate strong operational efficiency.
Operational Loss
SOPHiA GENETICS posted an operating loss of $17.4 million, an improvement of 8% from the prior period. The adjusted operating loss improved even more sharply by 23%, bringing it down to $10.2 million.
Full-Year Financial Highlights
For the full year 2024, revenue reached an impressive $65.2 million, again reflecting a 4% growth year-over-year. This increase was further magnified by a 5% growth rate when assessed on a constant currency basis, excluding COVID-19-related revenue.
Annual Gross Margin and Loss
Throughout the year, the gross margin slightly decreased to 67.4% on a reported basis but remained relatively stable at 72.8% when adjusted. An operational loss of $66.6 million was reported, signifying an 11% improvement compared to the prior year, while the adjusted operating loss was recorded at $44.8 million, reflecting a 20% year-over-year enhancement.
Strategic Business Highlights
Remarkable strides were made in expanding the usage of SOPHiA DDM™ globally. The company conducted a record 352,000 analyses, representing an 11% year-over-year growth in volume, and an impressive 40% and 33% growth in APAC and NORAM regions, respectively.
Client Acquisition and Business Development
SOPHiA secured a record 92 new customers in 2024, including significant wins during the fourth quarter, positioning it well for future revenue growth. Notable client acquisitions include major organizations adopting innovative applications like MSK-ACCESS® and collaborations aimed at enhancing access to genomic testing.
Financial Outlook for 2025
Looking ahead to 2025, SOPHiA GENETICS projects full-year revenue between $72 million and $76 million, which translates to a growth rate of approximately 10% to 17% compared to 2024. They are optimistic about achieving adjusted EBITDA loss between $35 million and $39 million, an improvement from the previous fiscal year.
Conclusion
With a solid financial foundation and a clear focus on product innovation, SOPHiA GENETICS is poised to continue its growth trajectory in the coming years. The company remains committed to its mission of democratizing access to data-driven medicine globally.
Frequently Asked Questions
What were SOPHiA GENETICS’ key financial highlights for Q4 2024?
The company reported a revenue of $17.7 million for Q4 2024, with an operating loss improvement of 8% compared to the previous year.
How did the full-year results for SOPHiA GENETICS in 2024 compare to last year?
For the full year, SOPHiA GENETICS achieved revenues of $65.2 million, reflecting a 4% growth year-over-year, and reported an operational improvement in loss metrics.
What strategic developments occurred during 2024?
The company executed numerous strategic initiatives, including launching new applications and acquiring 92 new clients, significantly enhancing its market presence.
What is SOPHiA GENETICS’ revenue outlook for 2025?
The company is projecting a full-year revenue between $72 million and $76 million, indicating solid growth expectations for the new fiscal year.
What are SOPHiA GENETICS’ key operational metrics?
The company conducted 352,000 analyses in the fiscal year 2024, showing an 11% year-over-year volume increase.
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