SOPHiA GENETICS (SOPH) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw record analysis volume of 91,000, up 16% year-over-year, with 20 new customers and major wins in the U.S., U.K., Brazil, and Canada.

• Temporary headwinds in France, Italy, and Spain subsided, normalizing growth in key regions, though BioPharma revenue remained soft.

• MSK-ACCESS and MSK-IMPACT launches are driving global adoption, with 18 new MSK-ACCESS customers since Q2 and ramp-up expected into 2025.

• Leadership changes include Ross Muken promoted to President and George Cardoza joining as CFO.

• Commitment to adjusted operating profitability within two years, supported by strong new business momentum.

Financial highlights

• Q3 2024 revenue was $15.9 million, down 2.8% year-over-year from $16.3 million, primarily due to BioPharma weakness.

• Adjusted gross margin improved to 73.1% (up from 72.5%); reported gross margin was 67.2%.

• Operating loss improved to $15.4 million (from $16.5 million); adjusted operating loss improved 10.4% to $10.6 million.

• Cash burn reduced by 39% year-over-year to $9.6 million; cash and equivalents stood at $95.8 million as of September 30, 2024.

• Net loss was $18.4 million in Q3 2024, with basic and diluted loss per share of $0.28.

Outlook and guidance

• Reaffirmed full-year 2024 revenue guidance of $65–$67 million (4–7% year-over-year growth).

• Adjusted gross margin guidance maintained at 72–72.5%; adjusted operating loss guidance at $45–$50 million.

• Commitment to achieve adjusted operating profitability within two years; current capital resources expected to be sufficient.

• Q4 revenue range is wider than usual due to variability in BioPharma contract delivery.

• Focus on accelerating new customer adoption, expanding U.S. market presence, and leveraging demand for new applications.