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; strong U.S. and Canada growth offset BioPharma and EMEA headwinds.

• Adjusted operating loss improved 32% to $9.9M; disciplined cost management maintained the path to profitability.

• 20 new core genomics customers added in Q2, with robust pipelines and new product launches expected to drive future growth.

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

• Actions included restructuring BioPharma, focusing on smaller, repeatable deals, and reallocating resources to high-growth regions.

Financial highlights

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

• Platform analysis volume grew 12% year-over-year to 87,000; oncology outperformed rare and inherited disorders.

• Gross profit was $10.8M (up 7% YoY); gross margin improved to 68.2%. Adjusted gross margin reached 73.2%.

• Operating loss improved 25% to $15M; adjusted operating loss improved 32% to $9.9M.

• Cash and equivalents stood at $105.4M as of June 30, 2024; cash burn was $12.3M–$13.3M, a 7%–8% improvement YoY.

Outlook and guidance

• FY 2024 revenue expected between $65M and $67M, representing 4%–7% growth over FY 2023.

• Adjusted gross margin guidance set at 72%–72.5%.

• Adjusted operating loss guidance reaffirmed at $45M–$50M; path to adjusted operating profitability within two years remains on track.

• Q4 expected to be stronger than Q3 as new business comes online and delayed BioPharma revenue is recognized.

• Current cash resources expected to be sufficient to reach profitability milestone.