NEW YORK – Sophia Genetics said today that its third quarter revenues fell 3 percent year over year as expected softness in its biopharma customer segment was buoyed by record analysis volume for its Sophia DDM genomic analysis software platform.
For the three months ended Sept. 30, the Swiss-American bioinformatics company tallied $15.9 million in revenues compared to $16.3 million a year ago and in line with analysts' average estimate.
The company performed a record 91,000 analyses on Sophia DDM in the quarter, representing 16 percent year-over-year analysis volume growth or 17 percent growth when excluding COVID-related analyses.
Sophia said that as of the end of the quarter it had reached 462 core genomics customers over the past 12 months to analyze patients with cancer or rare diseases, up from 431 customers at the end of Q3 2023.
"Record analysis volume drove a reacceleration of clinical growth across most key geographies in Q3, with volume increasing 16 percent year over year, offset by expected softness in biopharma," Sophia CEO and Cofounder Jurgi Camblong said in a statement. "We also delivered another quarter of strong forward-looking indicators with 20 new customer signings, including major wins in the US, the UK, and Brazil."
Camblong further noted that the company foresees "major growth catalysts" on the horizon such as its new liquid biopsy application MSK ACCESS powered by Sophia DDM, which already has 18 new customers since its launch in Q2, and its recently launched solid tumor testing counterpart, MSK-IMPACT.
"These applications, which enable any institution across the globe to launch best-in-class liquid biopsy and solid tumor testing, are also igniting strong interest from biopharma companies who can leverage the decentralized, global network to improve deployment and development of their therapies," Camblong said.
Sophia's Q3 net loss swelled to $18.4 million, or $.28 per share, from a year-ago net loss of $13.8 million, or $.21 per share. On average, analysts had expected a loss of $.21 per share.
The company's Q3 R&D spending dipped 12 percent to $7.9 million from $9.0 million, while its SG&A costs shrank 7 percent to $18.1 million from $19.5 million.
Sophia finished Q3 with $95.8 million in cash and cash equivalents.
The company reaffirmed its full-year 2024 revenue guidance of $65 million to $67 million, representing 4 percent to 7 percent year-over-year growth.
Sophia also separately announced that Ross Muken, previously the company's CFO and chief operating officer, has been promoted to company president effective Nov. 5. In addition, George Cardoza has been appointed as the new CFO.