Strong SOPHiA DDM™ adoption and analysis
volume contributes to continued revenue growth
Liquid biopsy and HRD on SOPHiA DDM™ Platform
continue to grow year-over-year, with Tennessee Oncology, Dasa and
The Royal Marsden announced today
BOSTON and ROLLE, Switzerland, Jan. 10,
2024 /PRNewswire/ -- SOPHiA GENETICS (Nasdaq: SOPH),
a cloud-native software company and a leader in data-driven
medicine, will share an overview of its near-term growth strategy,
fueled by strong adoption and opportunity for the SOPHiA DDM™
Platform, in a presentation at the 42nd annual J.P. Morgan
Healthcare Conference on Thursday, January
11, 2024 at 9:00 a.m. PST.
Highlights include:
- Continued adoption of SOPHiA DDM™ in clinical markets
globally has enabled analysis volume for the full year of 2023 to
grow to a record 315,000+ analyses globally1.
- Since inception, the Platform has analyzed over 1.5 million
genomic profiles worldwide.
- New customer count for 2023 includes 87 core genomics
customers globally2, resulting in a current network of
750+ customers using SOPHiA DDM™ globally3.
- New U.S.-based customer Tennessee Oncology
exploring MSK-ACCESS® powered with SOPHiA DDM™, as well as
Latin American healthcare network Dasa expanding to incorporate the
liquid biopsy application.
- The Royal Marsden, a world leader in cancer care based in the
U.K., is live on the SOPHiA DDM™ Platform to support HRD testing
and research.
CEO Commentary
"We have witnessed the market demand
for a global, decentralized technology platform that
will power the precision medicine space at-scale – a $40 billion total addressable market between
clinical and biopharma markets. The continued adoption of SOPHiA
DDM™ and the record number of analyses performed on the platform,
increasing year-over-year, reflects how SOPHiA DDM™ is positioned
to fulfill that need for those markets. We are especially
positioned for growth with our HRD and Liquid Biopsy applications,
which have both grown significantly year-over-year. I could not be
more excited about the opportunities that lie ahead and SOPHiA
GENETICS' ability to capitalize," said Jurgi Camblong, PhD., Chief
Executive Officer and Co-founder of SOPHiA GENETICS. "With our
commitment to financial discipline and our strategic vision that
will help us continue on the path to democratizing data-driven
medicine, we expect to continue to grow sustainably and achieve
profitability in the next two plus years."
Webcast Information
Jurgi Camblong, PhD., CEO and
Co-founder, will present at the J.P. Morgan 2024 Healthcare
Conference on Thursday, January 11,
2024, at 9:00 a.m. PST at the
Westin St. Francis in San
Francisco.
Live, listen-only webcasts of this presentation can be accessed
by visiting the Investors section of the SOPHiA GENETICS website at
ir.sophiagenetics.com. A replay of the webcast will be available
shortly after the conclusion of the presentation.
New Additions to the SOPHiA DDM™ Network
MSK-ACCESS®
powered with SOPHiA DDM™, the new liquid biopsy offering from
SOPHiA GENETICS, combines the sophisticated analytics,
state-of-the-art algorithms and global network of the SOPHiA DDM™
Platform, with the scientific and clinical expertise of Memorial
Sloan Kettering in cancer genomics.
MSK-ACCESS® powered with SOPHiA DDM™ will be tested at Tennessee
Oncology, a U.S.-based patient-centered community oncology practice
with over 35 locations. Tennessee Oncology, which is part
of OneOncology, a network of leading oncology practices and
experts driving the future of community-based cancer care, provides
access to high-quality, innovative cancer care for its patients and
increases access to advanced cancer testing in underserved
areas.
Additionally, Dasa, the largest integrated healthcare network in
Latin America that serves more
than 20 million patients per year – including approximately 10% of
the Brazilian population – also expanded its use of the SOPHiA
DDM™ Platform to offer liquid biopsy via MSK-ACCESS® powered with
SOPHiA DDM™.
The SOPHiA DDM™ Homologous Recombination Deficiency (HRD)
Solution continues to be a strong driver of growth just two years
after launch. Today, SOPHiA GENETICS announced that The Royal
Marsden, a world leader in cancer care, pioneering treatment and
ground-breaking research, is live on the SOPHiA DDM™ Platform to
support HRD testing and research in the United Kingdom.
Full Year 2023 Preliminary Estimated Results
Based on
information currently available, for the full year
ending December 31, 2023, the Company expects to report FY
results in line with guidance provided at Q3 earnings:
- Full-year reported revenue growth expected to be at or above
30%;
- Full year constant currency revenue growth excluding
COVID-19-related revenue to be between 30% and 35%; and
- 2023 operating losses to be below 2022 levels.
The foregoing figures are preliminary and unaudited and reflect
the Company's estimated financial results. In preparing this
information, management made a number of complex and subjective
judgments and estimates about the appropriateness of certain
reported amounts and disclosures. The Company's actual financial
results for the year ended December 31,
2023 have not yet been finalized by management or audited by
the Company's independent auditors. The preliminary financial
information is not a comprehensive statement of all financial
results for the year ended December 31,
2023. Subsequent information or events may lead to material
differences between the foregoing preliminary financial results and
those reported in the Company's subsequent SEC filings.
Accordingly, investors should not place undue reliance on these
preliminary financial results.
Constant currency revenue growth excluding COVID-19-related
revenue is a non-IFRS measure. See "Presentation of Constant
Currency Excluding COVID-19-Related Revenue" below for a
description of its calculation. The Company is unable to provide a
reconciliation of forward-looking Constant currency revenue growth
excluding COVID-19-related revenue to Revenue, the most comparable
IFRS financial measure, due to the inherent difficulty in
forecasting and quantifying the impact of foreign currency
translation.
About SOPHiA GENETICS
SOPHiA GENETICS (Nasdaq:
SOPH) is a software company dedicated to establishing the practice
of data-driven medicine as the standard of care and for life
sciences research. It is the creator of the SOPHiA DDM™ Platform, a
cloud-native platform capable of analyzing data and generating
insights from complex multimodal data sets and different diagnostic
modalities. The SOPHiA DDM™ Platform and related solutions,
products and services are currently used by a broad network of
hospital, laboratory, and biopharma institutions globally. For more
information, visit SOPHiAGENETICS.COM, or connect on
X, LinkedIn, Facebook, and Instagram. Where
others see data, we see answers.
Presentation of Constant Currency Excluding COVID-19-Related
Revenue
We present constant currency revenue excluding
COVID-19-related revenue to remove the effects of changes in
foreign currency exchange rates on revenue as well as revenues that
we derived from sales of COVID-19-related offerings. We believe
that this non-IFRS measure provides useful information to investors
and others in understanding and evaluating our revenue
growth.
We operate internationally, and our revenues are generated
primarily in the U.S. dollar, the euro and Swiss franc
and, to a lesser extent, British pound, Australian dollar,
Brazilian real, Turkish lira and Canadian dollar depending on our
customers' geographic locations. Changes in revenue include the
impact of changes in foreign currency exchange rates. Under IFRS,
revenues received in local (non-U.S. dollar) currencies are
translated into U.S. dollars at the average monthly
exchange rate for the month in which the transaction occurred. When
we use the term "constant currency", it means that we have
translated local currency revenues for the current reporting period
into U.S. dollars using the same average foreign currency
exchange rates for the conversion of revenues
into U.S. dollars that we used to translate local
currency revenues for the comparable reporting period of the prior
year. We then calculate the difference between the IFRS revenue and
the constant currency revenue to yield the "constant currency
impact" for the current period. The exclusion of the impact of
exchange rate fluctuations provides comparability across reporting
periods and reflects the effects of our customer acquisition
efforts and land-and-expand strategy.
We derive certain revenue from sales of COVID-19-related
offerings, including a NGS assay for COVID-19 that leverages our
SOPHiA DDMTM Platform and related products and solutions
analytical capabilities and COVID-19 bundled access products. We do
not believe that these revenues reflect our core business of
commercializing our platform because our COVID-19 solution was
offered to address specific market demand by our customers for
analytical capabilities to assist with their testing operations. We
do not anticipate additional development of our COVID-19-related
solution as the pandemic transitions into a more endemic phase and
as customer demand continues to decline. Further, COVID-19-related
revenues did not constitute, and we do not expect COVID-19-related
revenues to constitute in the future, a significant part of our
revenue.
Our management and board of directors use constant currency
revenue excluding COVID-19-related revenue growth to evaluate our
growth and generate future operating plans. Accordingly, we believe
that this non-IFRS measure provides useful information to investors
and others in understanding and evaluating our revenue growth in
the same manner as our management and board of directors. However,
this non-IFRS measure has limitations, particularly as the exchange
rate effects that are eliminated could constitute a significant
element of our revenue and could significantly impact our
performance and prospects. Because of these limitations, you should
consider this non-IFRS measure alongside other financial
performance measures, including revenue and revenue growth
presented in accordance with IFRS and our other IFRS
results.
Forward-Looking Statements
This press release
contains statements that constitute forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including FY 2023 expected financial results
and statements regarding our future results of operations and
financial position, business strategy, products and technology,
partnerships, and collaborations, as well as plans and objectives
of management for future operations, are forward-looking
statements. Forward-looking statements are based on our
management's beliefs and assumptions and on information currently
available to our management. Such statements are subject to risks
and uncertainties, and actual results may differ materially from
those expressed or implied in the forward-looking statements due to
various factors, including those described in our filings with
the U.S. Securities and Exchange Commission. No assurance can
be given that such future results will be achieved. Such
forward-looking statements contained in this document speak only as
of the date of this press release. We expressly disclaim any
obligation or undertaking to update these forward-looking
statements contained in this press release to reflect any change in
our expectations or any change in events, conditions, or
circumstances on which such statements are based, unless required
to do so by applicable law. No representations or warranties
(expressed or implied) are made about the accuracy of any such
forward-looking statements.
1 Analysis volume reported as of December 31, 2023. Figure includes volumes
related to COVID-19.
2 New signed core genomics customers as of
December 31, 2023.
3 Total customer count reported from the 12-month
period ending November 30, 2023.
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SOURCE SOPHiA GENETICS