SOPHiA GENETICS (SOPH) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw record analysis volume of 91,000, up 16% year-over-year, with clinical growth offset by BioPharma revenue softness.

• 20 new customers were signed in Q3, including major wins in the U.S., U.K., and Brazil; 18 new customers for MSK-ACCESS since Q2 launch.

• MSK-ACCESS and MSK-IMPACT launches are driving global adoption and strong new business momentum.

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

• Commitment to adjusted operating profitability within two years and reaffirmed full-year guidance.

Financial highlights

• Q3 2024 revenue was $15.9M, down 2.8% year-over-year; adjusted gross margin improved to 73.1% from 72.5%.

• Gross profit was $10.7M (down 5% year-over-year), with a gross margin of 67.2%.

• Adjusted operating loss improved to $10.6M, a 10.4% year-over-year improvement.

• Cash burn was $9.6M, a 39% year-over-year improvement; cash and equivalents stood at $95.8M as of September 30, 2024.

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

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at $65M–$67M (4–7% year-over-year growth).

• Adjusted gross margin guidance remains at 72.0%–72.5%; adjusted operating loss guidance at $45M–$50M.

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