SOPHiA GENETICS SA

Ladies and gentlemen, thank you for standing by and welcome to the Sophia Genetics fourth quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to turn the call over to your host, Jennifer Pottage, head of Investor Relations. You may begin.

Good morning, and thank you for joining us on Sophia Genetics Q4 fiscal 2021 earnings call. My name is Jennifer Potich, and I am the head of investor relations at Sophia. Joining me today are Dr. Yurki Kamblong, our co-founder and chief executive officer, Peter Casasanto, our chief biopharma officer, and Ross Muecken, our chief financial officer. Before we get started, I would like to remind you that management will make statements during this call, that are forward-looking within the scope of US federal security laws. These statements are based on management's current views and assumptions, which are subject to material risks and uncertainties that could cause actual results or events to materially differ from those projected. Additional information regarding these risks and uncertainties are included in the section entitled Cautionary Statement Regarding Forward-Looking Statements in Exhibit 99.2, of the report on Form 6-K on file with the SEC. Except as required by law, Sophia Genetics disclaims any intention or obligation to update or revise any financial or product pipeline projections or other forward-looking statements, whether because of new information, future events, or otherwise. This conference call contains time-sensitive information and is accurate only as of its broadcast, March 15, 2022. Please note, both the replay of this call and earnings release will be available on our website in the investor section. And with that, I will now turn the call over to Yorgi.

Thank you, Jen, and good morning, everyone. 2021 was a transformative year for Sophia, and I'm pleased to share with you today how strong finish and momentum we experienced closing out our first fiscal year as a publicly traded company. I want to take this opportunity to express my sincere appreciation to the 500 Sophie employees for their extraordinary efforts and dedication. Our talented team drives our success, and I am thrilled to announce that we were recently recognized as one of Boston's best places of work for 2022, a fantastic achievement to start the year. I am immensely proud of the success we have achieved so far. and I am eagerly looking forward to what lies ahead in our ambitious journey to democratize data-driven medicine. On today's call, I will touch on the impressive progress we have made in the fourth quarter and 2021 fiscal year as it relates to the six strategic pillars guiding our long-term growth trajectory. Our new chief biopharma officer, Peter Casasanto, will then offer a more detailed look into our biopharma pillars and the massive but underpenetrated opportunity that exists in this market. And finally, Ross will review Sophia's financial results for the period and outlook. We remain fixated on six key pillars to drive long-term growth and value creation. First, accelerating the expansion of our network through new customers' adoption. Second, increasing utilization within our existing customer base. Third, driving further innovation on our platform to broaden the applications we support. Fourth, developing key partnerships and collaborations. Fifth, leveraging our platform to drive further growth with biopharmaceutical companies. And lastly, the sixth strategic pillar is excelling operationally within Sophia. Before diving further in, I would like to remind those less familiar with Sophia's story What a powerful business model we offer as a technology player in the healthcare space. Over the last decade, there has been a dramatic increase in the amount of digital data being generated within the healthcare industry. The ability to create insights from this data has led to an acceleration in our understanding of biology. However, much of this data is siloed, preventing it from being fully leveraged for the benefit of patients. Sophia, which also means wisdom in Greek, has built a unique business model to address this untapped opportunity. We developed the Sophia DDM platform to take the data of patients today to inform on how to diagnose and treat the patients of tomorrow. Sophia DDM is a platform that lives in the cloud and uses AI and machine learning to analyze complex multimodal digital health data to generate insights. Sophia represents a new category of software companies. and locking data silos and helping healthcare professionals work together as a community and deploy their collective expertise. Through SOFIA DDM, we can enable the practice of data-driven medicine in any hospital, laboratory, or pharmaceutical company around the world. We sit at the center of a virtuous cycle and benefit from powerful network effects. This means as the number of SOFIA DDM users increase, the volume of raw data input increases which then leads to a further increase in actionable insights continuously being generated. The platform improves and scales as more data is analyzed, which ultimately snowballs into more and more patients benefiting from data-driven medicine. Our software model was optimally designed to support rapid growth, which further strengthens our position for the future growth. And now onto our six key pillars. starting off with our first pillar of customer adoption and network expansion. Healthcare institutions continue to choose Sophia as their trusted cloud-based analytics platform. We had a strong finish on the first quarter with a total of 791 customers across more than 70 countries. The company's priority has remained on the growth of the platform in the U.S. market, which we view as Sophia's largest addressable market, at an estimated $8 billion for clinical oncology and rare diseases. We are continuing to invest in our U.S. opportunity and firmly believe there is significant runway ahead of us. We are pleased with our progress of onboarding clinical customers in this region and are expecting several signed agreements with Tier 1 institutions in the coming months. In the NORAM region, we added seven new logos in 2021. Additionally, we are seeing solid growth with our clinical customer base in the EMEA, LATAM, and APAC regions. On a global level, we are matching our momentum in the RAM. In the APAC region, we recently announced onboarding a leading Taiwanese genetic testing company called Sofiva Genomics. This is important to highlight as it is the first clinical institution in this region to offer SOFIA's newly launched HRD solution which is one of our most exciting product offerings. The validation of our solution by this important customer is already underway. So, FIVA Genomics found great success while implementing our solution in a clinical setting for advanced HRD detection powered by the deep learning algorithms embedded in our platform. Beyond HRD, we are seeing substantial demand in APAC for oncology applications, and we recently signed new customers in Japan South Korea, Singapore, and Hong Kong. Our continued success in landing customers across a broad geographic landscape is a testament of our talented team and execution. We recently appointed Ken Friedman as our Chief Revenue Officer to lead our global clinical sales efforts. Ken has more than 25 years of experience serving some of the most innovative providers of technologies. His expertise in go-to-market strategy and execution will be a fantastic addition as we continue our U.S. and global footprint expansion plans. Moving on to our second pillar of increasing utilization within our existing clinical customer base. As communicated on our last quarterly call, we employ a land and expand strategy that concentrates on winning new customers and then driving greater utilization of our solution by those customers. We are encouraged with the momentum we see with users continuing to increase their consumption after experiencing the value of Sophia's platform. Total recurring platform customers grew to 382 in the fourth quarter of this year, up from 375 customers in the third quarter. Total number of analysis increased to 66,000 in the first quarter, up from 62,000 analysis in the third quarter, representing a growth rate of 6% quarter over quarter. For us, one way of growing is continuously delivering new content, which leads to our next pillar of expanding money offering. This is an instrumental part of Sophia's stories, and we are laser-focused on driving innovation across our offerings. We continue to provide platform users with frequent updates incorporating new features, new applications, new data modalities, and new services. In addition to our newly launched HRD capabilities, we expect to unveil several exciting new products later this year, one being CurePath, which was recently introduced at the J.P. Morgan Health Care Conference in January. CurePath is a model of the platform within our oncology applications. CurePath will guide clinicians along the care continuum by better predicting an individual patient's disease progression and treatment options. It provides user and indication-specific comprehensive use of patient molecular, clinical, and imaging data powered by robust machine learning algorithms. We are extremely excited about this product and believe it will further differentiate SOFIA as a tech company. SOFIA's observational clinical study called DIPLON4, which was announced at RSNA in November, validates a predictive model fueling Kirpa. The study leverages machine learning-enabled analysis of the aggregation of real-world green T-modal data to identify and validate predictive signatures associated with response to immunotherapy and prognosis of patients with metastatic stage 4 non-small cell lung cancer. Such signatures could help identify patients that are likely to benefit from immunotherapy versus that are not, as well as stratify patients according to risk. Ultimately, this will empower clinicians to make more informed therapeutic decisions for their patients and accelerate the recruitment of the right patients for clinical trials run by the biopharma companies. Since launching the study in November, 16 sites across six countries have signed up to participate. This should contribute to over half of the 4,000 total patients targeted for enrollment over the course of the study. The demand and appetite we have seen from institutions, including prominent academic centers and hospitals, to join this study has been tremendous, and 13 centers, including UMass, have already been activated. We are pleased with the strong traction of the study, and we view the positive reception from the participating sites as a testament to the high level of interest in unlocking the predictive potential of multimodal health data sets through large-scale real-world study. From an operational perspective, we have already enrolled hundreds of patients into the study, and we will provide an update on preliminary findings at ASCO this year. And now on to our fourth pillar of developing key partnerships and collaborations. Our robust partner ecosystem is united by a common and noble goal, to better the lives of patients. We are achieving great momentum with our partners in enabling our shared customer base to generate actionable insights. We announced last July that we entered an alliance with GE Healthcare to integrate data between GE's Edison platform and Sofia DDM platform, as well as commercial collaboration focused on co-marketing and pilot site recruitment in the digital oncology and radiogenomic analysis space. We are currently working together on a new statement of work to begin developing the software infrastructure and architecture that will enable the bidirectional exchange of data between GE's Edison platform and the Sophia DDM platform. Our partnership has been going well, and we have already seen significant commercial traction in lead sharing. This collaboration integrates well with the developments mentioned earlier, including CurePath and the DeepLung4 study. In additional collaboration news, we announced this month that we signed a letter of intent with Ambre Genetics, which is a genetic testing and clinical diagnostic company. Our collaboration will be centered around our shared long-term focus of leveraging multimodal data to accelerate research and the understanding of human diseases. Of the many opportunities in this collaboration, our focus will start on HRD. Shifting over to the next pillar, which is further strengthening our biopharma strategy. This represents a massive opportunity for us. While we have made excellent strides in enhancing our business in the pharmaceutical industry, we believe there is still significant market share to be captured. It bears reiterating that in this important market, we currently serve pharmaceutical and biotechnology companies, as well as clinical research organizations. We continue to promote our current products and services, which we believe will strengthen collaborations with biopharmaceutical companies. To head our dedicated efforts in biopharma, we recently brought on Peter Casasanto as chief biopharma officer. The executive team is thrilled to have Peter, who has a high degree of expertise and deep relationship in this area, with more than 15 years of industry experience. He joined us in January from Selcarta, a global leader in precision medicine. Prior to Selcarta, Peter was in a senior corporate development role at Tempus and previously held leadership roles at Neogenomics and LabCorp, where he scaled pharmaceutical strategies. I am delighted to welcome Peter to the team and look forward to his contribution. Later on the call, Peter will walk through our plans and positioning to further strengthen Sophia's presence in this space. And now shifting to our sixth and final pillar, excelling operationally within the organizations. We remain well positioned from a capital perspective to execute our near-term operating and strategic plans while retaining a level of flexibility to pursue select strategic initiatives. As Ross will discuss later, we are monitoring market conditions and remain focused with our capital to continue excelling operationally as a company. With that, I will now turn the call over to Peter.