SOPHiA GENETICS SA

Thank you for standing by, and welcome to the Sophia Genetics first quarter fiscal 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's call may be recorded. Should you require any further assistance, please press star 0. I would now like to hand the call over to Jennifer Potich, Head of Investor Relations.

Good morning and thank you for joining us on SOFIA Genetics Q1 Fiscal 2022 Earnings Call. My name is Jennifer Potich and I'm the Head of Investor Relations at SOFIA. Joining me today are Dr. Yergi Kamblong, our co-founder and chief executive officer, and Ross Meekin, our chief financial officer. Before we get started, I would like to remind you that management will make statements during the call that are forward-looking within the scope of U.S. federal securities laws. These statements are based on management's current views and assumptions, which are subject to material risk and uncertainties that could cause actual results or events to differ materially 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 filed with the SEC. Except as required by law, Sophia Genetics disclaims any intention or obligation to update or revise any 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, May 10, 2022. Please note, both the replay of this call as well as the earnings release and associated slides will be available on our website in the investor section. And now I'll turn the call over to Yergi.

Thank you, Jen. Good morning, everyone. I'm happy to be here with you today to share the excellent performance SOFIA delivered during Q1. As announced last month, we reached an incredible milestone. We now have over 1 million genomic profiles analyzed on the SOFIA DDM platform, further strengthening our position as a leading cloud-native knowledge-sharing platform connecting thousands of healthcare professionals worldwide. As one of the founders of Sophia, it brings me immense joy to reflect on the progress we have made. We have come a long way since 2011, from just a handful of people in a 10-square-meter room with a vision to democratize data-driven medicine. While we're proud of this milestone, we're just getting started. To that end, I want to recognize the Sophia employees who continue to fuel our success every day. Because without them, none of this would have been possible. It is a privilege to be able to work with such talented individuals who care so deeply about what we are building and share mutual passion for using the power of data analytics and predictive AI to transform the world of healthcare. On today's call, I will walk through our first quarter business highlights. And following, Ross will review the period's financial results and business outlook. But before I go on, let me remind you of the six key pillars that continue to guide our long-term growth. They are accelerating the expansion of our network through new customer adoption, increasing utilization within our existing customer base, expanding our menu of offerings, developing key partnerships and collaborations, leveraging our platform to drive further growth with BioPharma, and excelling operationally within Sophia. Now, let's begin with the first pillar. We have had a solid start to 2022 with customer adoption and network expansion. Healthcare institutions all over the world are continuing to recognize the importance of using data and analytics to drive decision making more than ever. It bears reiterating that SOFIA is a leading cloud native platform of significant global size and scale that enables healthcare institutions to turn complex raw data into deep insights that can improve patient diagnosis and outcomes. The Sophia DDM platform is unmatched in the market, and we are the first movers in this unique category of software, which has resonated deeply with the healthcare industry at large. Furthermore, our platform is optimally designed to support rapid growth and benefit from network effects. As we aggressively onboard more healthcare and license institutions to the SOFIA network, more data is generated on the SOFIA DDM platform, which ultimately leads to richer insights that can be generated and democratized to new institutions, incentivizing them to join our network as well. The platform improves and scales as more data is analyzed, which importantly translates to more patients benefiting from the practice of data-driven medicine over time. We continue to build long lasting relationship with new customers to increase and diversify the platform's network. Looking at Q1's customer growth and global scale, we added nine net new logos. The strong momentum onboarding new customers globally across North America, Europe, Asia Pacific, and Latin America demonstrates our strong execution and the universal nature of our compelling offering. Moving to the next pillar of increasing utilization within our existing customer base. Broadening and dipping our existing customer relationship is crucial. As customers continue to benefit from the value of the Sophia DBM platform, their utilization increases. And how do we know we are providing real value to our customers? This is evidenced by our exceptional net dollar retention rate. which is a percentage of dollars retained across customers. Our annualized net dollar retention rate has exceeded 140% for the past two quarters consecutively, indicating that our customer base has been consistently expanding their business with us. Ross will get more into this later on during the call. Our sales strategy revolves around ensuring that new and existing customers see the full range of use cases that the Sophia DDM platform can provide. Cross-application consumption is a key to deriving mutual benefits between us and our customers, expanding key customers' wins into transformative long-term business relationships. During the quarter, we saw several exciting expansion deals, one of which was with a key longstanding customer, Moffitt Cancer Center in the US, who nearly tripled their consumption. Combined with the additional momentum we have seen across other key customers in the US, our North America revenue has nearly doubled. Additionally, we are in the midst of signing an expansion deal with another longstanding customer, DASA, the largest medical diagnostic company in Latin America. Total recurring platform customers grew to 384 in the first quarter of this year, up from 345 customers in the first quarter of 2021. The total number of platform analysis increased to over 65,000 in the first quarter, up from 53,000 analysis in the first quarter of 2021, representing a growth rate of 23% year over year. It is clear consumption trends have continued to be strong despite challenging comparisons from the prior period due to COVID-related impacts. And now on to our third pillar of money expansion. Nothing is more core to our mission than innovating the platform. We consistently provide users with new content and we're combining and analyzing data in more ways than ever before. Having a robust ecosystem is essential for delivering our platform vision. and we currently have the most exciting product roadmap in our company's history. Last quarter, we spoke a lot about Sophia's newly launched HRD solution, as well as the soon-to-be-deployed CarePath. The HRD solution has already been adopted by an abundance of customers across the globe and is on track to be one of our best application launches in history. With respect to CarePath, We would note this key deployment is still on track for later this year. Diplunk 4, the observational clinical study that is validating predictive models fueling her path, has been progressing well as expected. Three additional sites, including Roswell Park Comprehensive Cancer Center in New York, have signed up to participate, bringing the total to 19 sites across seven countries. Nearly 500 patients have already been recruited for the study to date. which is tremendous. We expect to update you on our preliminary findings at ASCO next month during our symposium with GE Healthcare. We hope to see many of you there. Speaking of which, this leads me into Sofia's next pillar of developing key partnerships and collaborations. At Sofia, we do not work alone. At our core, we are an enabler and a partner, which is indicative of the versatility of our platform. We're achieving momentum with our partners in enabling our shared customer base to interpret complex data sets and generate novel insights. GS Care, for example, has been a fantastic partner so far. Our partnership has been going extremely well, and we continue to see significant commercial traction in joint customer engagement. We're proud of our partnership with them and the trust they have put in our team and SOFIA DDM platform to help accelerate future growth. We're excited about the opportunity to continue partnering with organizations leading the data transformation of healthcare as we leverage our combined capabilities to spark innovation. Next, I want to quickly touch on our pillar of strengthening SOFIA's presence in the biopharma space. We continue to promote our growing menu of offerings, which we believe will uniquely position us. CarePath, for example, is a product we expect to support BioPharma to ensure the right patients are selected for clinical trials. We're encouraged by recent discussions, and it is clear that our value proposition to BioPharma companies continues to grow with the expanding scale of our multimodal data and continuously improving predictive algorithms. Last quarter, we spoke about our partnership with AstraZeneca to expand access of in-house HRD testing across laboratories and institutions around the world. We're excited to collaborate with other BioPharma partners regarding our capability to develop and deploy highly impactful solutions with a focus on patients and technology forward approaches. And now on the final key pillar, which is exceeding operationally within Sophia. One of our core strengths is operating as a unified team in everything that we do. Sophia continues to review its organic growth initiatives and M&A pipeline, and is focused on opportunities that will enhance the capabilities of our robust platforms. Over the longer term, we are confident in our ability to execute a targeted focus on scaling the business to position it well into the future. And with that, I will turn the call over to Ross to get into the numbers. Ross?