SOPHiA GENETICS Shares Impressive Q1 Results and Future Plans
SOPHiA GENETICS Reports First Quarter 2025 Financial Highlights
SOPHiA GENETICS (NASDAQ: SOPH), a leader in data-driven medicine, recently revealed their financial results for the first quarter of 2025. The company showcased impressive achievements, including year-over-year revenue growth and enhanced operational efficiencies in its cloud-native solutions.
Key Financial Figures for Q1 2025
In the first quarter, SOPHiA GENETICS reported:
- Revenue of $17.8 million, representing a 13% year-over-year increase, and a 15% rise on a constant currency basis.
- Gross margin improved to 68.7% on a reported basis, and 75.7% on an adjusted basis, up from 65.9% and 70.5% respectively in the previous year.
- While IFRS net loss increased by 27% to $17.4 million, the adjusted EBITDA loss improved considerably by 24%, reaching $9.8 million.
- The full-year revenue guidance remains optimistic, expecting between $72 million and $76 million, with adjusted EBITDA loss projected between $35 million and $39 million.
Jurgi Camblong, PhD., the Chief Executive Officer and Co-founder, expressed confidence in the company’s trajectory, citing strong initial contracts from 2024 and an innovative approach to enhancing SOPHiA DDM™s data processing capabilities. This strategic focus is aimed at optimizing costs and facilitating growth toward profitability.
Business Highlights of Q1 2025
During the quarter, notable progress was made in expanding the usage of SOPHiA DDM™:
- Conducted 93,000 analyses through SOPHiA DDM™, marking an 11% increase in analysis volume year-over-year.
- Welcomed 490 core genomics customers, a rise from 463 at the end of Q1 2024.
- Implemented SOPHiA DDM™ for 33 additional core genomics customers, exceeding the previous quarterly average.
- Achieved significant growth in analysis volume across North America and Asia-Pacific, with increases of 32% and 40% respectively.
- Surpassed a cumulative total of 2 million genomic profiles analyzed since the platform's launch.
Customer Engagement and Market Growth
SOPHiA GENETICS has intensified its focus on securing new partnerships, highlighted by:
- Acquisition of 28 new core genomics customers during Q1 2025, set to implement SOPHiA DDM™ within the next year.
- Signing key partnerships with institutions across various regions, including notable hospitals and labs, which will implement advanced testing applications.
- Expansion of the collaboration with AstraZeneca to globally scale the MSK-ACCESS™ application across additional institutes.
- Continued support for major customers in the U.S., underscoring robust growth through enhanced partnerships and technologies.
Sustainable Growth Strategy and Financial Outlook
SOPHiA GENETICS remains steadfast in its approach to sustainable growth by focusing on operational excellence.
- Delivered a record adjusted gross margin of 75.7%, a 520 basis points increase from the previous year.
- Implemented stringent cost management practices, resulting in a significant reduction in adjusted EBITDA loss.
- The company anticipates approaching adjusted EBITDA breakeven by late 2026, aiming for positive adjustments in 2027.
The future appears bright for SOPHiA GENETICS as it continues to champion data-driven solutions for patients across the globe affected by critical health conditions.
Frequently Asked Questions
What were the main financial results for Q1 2025?
SOPHiA GENETICS reported $17.8 million in revenue, with a 13% increase year-over-year and a gross margin of 68.7%.
How did the customer base change?
As of now, SOPHiA GENETICS has 490 core genomics customers, with new implementations increasing from 23 in 2024 to 33 this quarter.
What is the guidance for the full year?
The company maintains a revenue outlook between $72 million and $76 million for the full year, alongside an adjusted EBITDA loss forecast of $35 million to $39 million.
How is SOPHiA GENETICS driving growth in new markets?
The firm is expanding partnerships and leveraging advanced applications to attract new customers, particularly in the U.S.
What is the expected timeline for profitability?
SOPHiA GENETICS forecasts approaching adjusted EBITDA breakeven by the end of 2026, with positive EBITDA expected in the second half of 2027.
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