In This Article:
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Revenue: $15.9 million for Q3 2024, a decline of approximately 2.5% year over year.
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Gross Margin: 67.2% for Q3 2024, compared to 69.1% in Q3 2023.
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Adjusted Gross Margin: 73.1% for Q3 2024, up from 72.5% in Q3 2023.
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Operating Expenses: $26 million for Q3 2024, down from $27.8 million in Q3 2023.
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Operating Loss: $15.4 million for Q3 2024, an improvement of 7% from Q3 2023.
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Adjusted Operating Loss: $10.6 million for Q3 2024, an improvement of 10% from Q3 2023.
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Cash Burn: $9.6 million for Q3 2024, a 39% improvement from the prior year quarter.
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Cash and Cash Equivalents: Approximately $95.8 million as of September 30, 2024.
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Customer Count: 462 as of September 30, 2024, up from 431 in the prior year period.
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Net Dollar Retention: 109% for Q3 2024, compared to 127% in Q3 2023.
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Annualized Revenue Churn Rate: Less than 4% for Q3 2024.
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Clinical Volume: Approximately 91,000 analyses for Q3 2024, a 16% year over year growth.
Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sophia Genetics SA (NASDAQ:SOPH) reported a re-acceleration in clinical volume growth, with a 17% year-over-year increase in analysis volume, excluding COVID-related volumes.
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The company achieved an adjusted gross margin of 73.1% in Q3 2024, reflecting continued improvement in cost management and operational efficiency.
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Sophia Genetics SA (NASDAQ:SOPH) successfully reduced its cash burn by 39% year-over-year, demonstrating strong financial discipline.
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The launch of MSK Access on Sophia DDM has been well-received, with 18 customers adopting the application across five continents, indicating strong market interest.
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The company reaffirmed its full-year revenue guidance for 2024, projecting 4% to 7% year-over-year growth, showcasing confidence in its growth trajectory.
Negative Points
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BioPharma revenue declined significantly, contributing to an overall year-over-year revenue decline of approximately 2.5% for Q3 2024.
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The company faced temporary headwinds in key European markets, including France, Italy, and Spain, impacting growth in those regions.
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Gross profit for Q3 2024 decreased by 5% year-over-year, with a gross margin decline from 69.1% to 67.2%.
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Sophia Genetics SA (NASDAQ:SOPH) experienced a churn of a large account in Latin America, affecting growth in that region.
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The challenging macro environment and budget constraints in the BioPharma sector have elongated sales cycles and made signing large contracts difficult.
Q & A Highlights
Q: Could you provide an overview of what Sophia Genetics is enabling with MSK Impact and Access, and what financial impact this could have in the coming years? A: Jurgi Camblong, Co-Founder and CEO, explained that MSK Access is a decentralized liquid biopsy testing application that has gained traction globally, with 18 customers across five continents. Ross Muken, President, added that the application could ramp to about $100,000 per logo, with higher ASPs than the company average, indicating significant growth potential. The pipeline includes nearly 50 additional customers, suggesting strong future contributions to growth.