SOPHiA GENETICS (SOPH) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 5% year-over-year to $15.8M, with analysis volume up 12% to 87,000; U.S. and Canada saw over 40% analysis volume growth, offsetting BioPharma and EMEA headwinds.

• Adjusted operating loss improved 32% year-over-year to $9.9M, reflecting disciplined cost management and a path to profitability.

• 20 new core genomics customers added in Q2, with strong bookings momentum and robust pipelines in both clinical and biopharma businesses.

• Strategic actions included restructuring BioPharma, separating data and diagnostics, refocusing sales, and launching new applications.

• Launched new MRD application for Acute Myeloid Leukemia and announced collaborations with Microsoft and NVIDIA for whole genome sequencing.

Financial highlights

• Q2 2024 revenue was $15.8M, up 5% year-over-year; constant currency revenue growth, excluding COVID, was 7%.

• Adjusted gross margin was 73.2%, up from 70.0% in Q2 2023; IFRS gross margin was 68.2%.

• Adjusted operating loss was $9.9M, improving 32% year-over-year; operating loss was $15M, improving 25% year-over-year.

• Cash and cash equivalents at June 30, 2024, were $105.4M; cash burn was $12.3M–$13.3M, improved year-over-year.

• Net loss for Q2 was $15.2M, or $0.23 per share, compared to $21.4M, or $0.33 per share, in Q2 2023.

Outlook and guidance

• FY 2024 revenue guidance lowered to $65–67M (4–7% growth YoY), mainly due to BioPharma and EMEA headwinds.

• Adjusted gross margin guidance updated to 72–72.5%; adjusted operating loss guidance reaffirmed at $45–50M.

• Q4 expected to be stronger than Q3 as new business comes online; path to adjusted operating profitability within two years remains on track.

• Current cash and capital resources expected to be sufficient to reach adjusted operating profitability.