Q4 2022 Earnings Conference Call


spk_0: good morning and welcome to soviet you next candidates his work quarter fiscal twenty twenty two earnings call all participants will be in listen only mode should you need assistance please signal a conference specialist by pressing star than zero on your telephone keypad after today's presentation there will be an opportunity to ask questions to ask the question you may press star than one on your cell phone keypad to draw your question please press star than to please note this event is being recorded i would now like to turn the comforts over to catherine fail on head of investor relations that severe genetics please go ahead
spk_1: good morning and thank you for joining us as the a genetic cure for fiscal y twenty two earnings call my name is catherine bail on and i am head of investor relations at soviet genetic joining me today are doctor year the can on our code founder and chief executive officer and ross you can or chief financial officer before we get started i'd like to remind you that the management team will make statements during this call that are forward looking within the meaning of us federal security lot these statements involved material risks and uncertainties that could cause actual results for events to materially different from that was anticipated additional information regarding these risks and uncertainties appear in the section entitled cautionary statement regarding forward looking statements inform twenty f on file with the fcc except as required by law though feel genetics disclaims any intention or obligation to update or revise any financial a product pipeline projections are other forward looking statements weather because of new information future events or otherwise this conflict all content time sensitive information and an accurate only as of it's broadcast march seventh twenty twenty three this presentation includes non i f r us financial measures these measures are calculated by management and do not have any standardized meaning under i frs far as leave non i as far as measures supplement i as far as measures but should not be viewed as substitute for i have or as measures we have included a reconciliation of i have or as measures to non i have r s measures in our press release issued this morning which is available on our website please note both the replay of this call and the earnings release will be available on our website in the investors section and with that i'll turn it over to your do
spk_2: thank you catch him and good morning everyone
spk_1: twenty twenty two was a tremendous he reports of your genetic and they mp to share with you today the movement on that repealed in the period
spk_2: including a strong finish twenty fourth quarter onto the school i we read your twenty twenty two year as a wall and the organic growth actually russian we experience to go to year and he took you for next i will share my thoughts about the key deliverables we agree cupid upon as a companion twenty twenty two and powerful do sorry us back to a discussion with you about fiscal definitely not so fortunate have demonstrated by or third consecutive quarter of an approved or breaking the bridge then i will touch on our partnership that fuel our ecosystem and wrapped up with our six strategic pillars guiding sophia long term trajectory towards being the preferred don't know if software analogy that from for elster participants globally i will then turn it over to our chief financial officer lost my can we provide a mod to look into financial results for the period and our outlook for twenty twenty three and or with and by taking your questions please join me in congratulating ross who in addition to being of ever a capable chief what is being promoted as of march fifteenth twenty twenty three two chief operating officer congratulations for us
spk_1: let me start by reminding you that when so kitchen at the from public investors had one expectation and three questions for us as a company
spk_2: the major expectation was for sophia to deliver on only top playing growth commitment by the three questions were one was successful so far in europe is of your genetics decentralized model compatible with the us market to would sophia genetics be able to demonstrate that they're anonymous you know me profile data collected in the crew of their a clinical business he doesn't value beyond to rico specially to buy your partner three good pledge antique showed that they're a and machine learning algorithm would be applicable across many people modalities beyond just genomic i would suggest today that even the momentum we have demonstrated this year we have not only delivered on our growth commitments but can also after them answer yes to all three question always adding to overcome the unexpected challenges associated with boss a bullet a macro environment and a constraint capital market place so we're sophia have taken on this lofty expectations and challenges in stride and are committed both on finding efficiency and to achieving our growth in a sustainable fashion without incurring significant incremental costs let me start by your knowledge in the strongest evidence of our success in twenty twenty two we delivered rather full gear revenue growth of thirty nine percent on a constant currency bages after adjusting for copied related edwin i i'm incredibly proud of this achievement
spk_1: four year twenty twenty two cost concurrency revenue growth was thirty two percent in line with a long term constant drinking growth guidance of thirty two thirty five percent
spk_2: i should remind you that we introduce our recovery nineteen solution and for twenty twenty he responds to the global pandemic impacting our customers even the score be done allergies or the region of an impact on our twenty twenty one results at some of our customers shifted airports within their laboratory to address global to finish at it which we were able to out accomodate their by demonstrating the versatility of for a platform thirty twenty twenty two we decided to shift our focus back towards a record of from and right is applications so we are quite pleased that adjusting for the impact of course ninety related when you twenty twenty two how growth in twenty twenty two was ice i stated a brothers thirty nine percent why are we having such a strong market adoption during a period many would consider challenging as care institutions continue to choose of your genetics of their trusted code base analytics platform for establishing data driven medicine others their of care
spk_0: he twenty twenty two we served more than seven hundred fifty customers across seventy two countries
spk_2: both are more than seven hundred fifty customers cringe nine p a recurring he didn't add some customers
spk_1: i am also thrilled to announce that we sign teach a few customers in twenty twenty two
spk_2: during the year we continue to improve positioning of disappeared splash from in the markets to where it can have the greatest impact helping he from clinicians in their determination of cancer and radishes this happens to our ability to handle complex for datasets produced from next generation sequencers
spk_1: i will customers are producing locally what are incredibly large noisy raw data said that can be up to two the rebates and site
spk_0: the production love that our customers is often an utter a generous berman using multiple types of sequencers and potentially using chemistry from many different players from their laps our customers upload to spice from the sequencer onto our a decentralized soviet union for
spk_2: we then apply already to specific machine learning and artificial intelligence faith algorithms which innocence he spoke at the records that we have built up and trend meticulously over the twelve year since our funding it is with this code or a secret so if we are we that we find an arm armani a signals the huge and noises you know me try and dumped you fight and uno de driven by marchers which the pathologist or the geneticist will have access to food soviet leader
spk_1: with each to know me for fight we analyze over one point two million as of december thirty first twenty twenty two or algorithms becoming couldn't mentally more brothers and because our global network is code base the benefits to concern and disease patients are realizable nearly instantaneous
spk_2: i worked out design was fun deschanel decision it underpins our platforms ability to become the network to democratize constrictor because in real time he provides that each incremental learning for a community of customer
spk_1: please direct network effect was intentional a lowering the value of the softly up that from to increase as a number of users will leverage it does
spk_2: a cancer patient in brazil can benefit from learning extracted from the cancer journey of efficient in australia learning to blood for music for the full year twenty twenty two analogies volume across proxy for patients was two hundred sixty four thousand and all time high and up nine percent year over year when extruding our copied related volumes analogies volume was two hundred forty six thousand at eighteen percent year over year importantly i want to i late for you that to date the soviet it implied from a supported the analysis of more than one point two million genomics profiles recently growing by more than twenty four thousand new profile per month this we think makes us the industry either
spk_0: we're excited with the momentum we see a user's continue to increase their you to be session after experiencing the value of the soviet union platform
spk_2: as our focus shifts was more complex these areas where the benefits from or effect yeah hi it's no surprise that in twenty twenty two we saw an expected and desired least in overall a a speech this is above and beyond the expected price increase with to commit year in twenty twenty two hiv is one example of a product that is helping me with a knockout to be higher a sb but to carry this idea through the strategic focus on oncology and read it is is is evident in our reported revenue growth outpacing or analysis for him this is an important phenomenon as we expect me or the value of each analyses patients tween trees at a healthy kittens over time
spk_0: while i discussed how we delivered on our guidance for twenty twenty two i want to also go for you the picture of how would that played out over the years
spk_2: where piece to sure that constant currency excavate revenue growth accelerated each quarter and twenty twenty two finishing the year which forty four percent year over year growth in the fourth quarter
spk_0: and adjusted gross margin ended the year at a high of seventy five percent for the fourth quarter of twenty twenty to confer with sixty five percent for the fourth quarter of twenty twenty one bringing our a full year result increasingly closer to our long term target of seventy prison these figures and any volume gross margin and accelerating revenue growth to suggest to us that our strategic past his trunk
spk_2: while our top lane performance as of course being a team the focus of equally people use as being or a desire to solve the new challenge of optimizing capital efficiency
spk_1: reducing operating expenses some muscled we learn to flesh and twenty twenty two
spk_2: we've reduced our operating expenses in each of the last three quarters of the year and intend to continue to advance or a peaceful discipline and ability to make the best use of our cash ballot we have been very precise intending to control or indirect costs we also targeted projects maintaining sponsorship of key program but not all thanks summary i am proud to say we have deliberate on our commitment of revenue execution with the material added benefit of cost the city top or they suggested in my opening remarks when we were too bleak there were several outstanding questions with respect to the first question let me expand on the compatibility of so kitchen and sixty central model in the us market a major both points in twenty twenty two and one that we are super powder is our new relationship with memory some catherine msk cancer center
spk_0: considered one of the most prominent cancer centers in the united states we entered into an agreement where we we've commercialized the first comprehensive liquid by your teeth dust powered by the soviet the template for i combining our predictive algorithm send the power of robots with yeah genetics network with a chemical it's pretty help him escape and cancer genomic regions he envisioned that advance british an oncology tools we reach a more diverse global population of cancer patient
spk_2: next turning to us customer momentum i would like to i like the recent when at the university of arkansas they will be implementing sophia the dm to gain deeper insights into a mythology called malignancy university of arkansas for medical sciences you am at the states only out science university of your dm with enable them to synthesize and she has the in aus building on local expertise and allowing for of matter really improved data turn around time which is crucial given the fast moving nature of a metallurgical malignancies the shuttle the kenya lymphoma are many people me the annulment cancer that together as a group or the fourth most frequent type of cancer nobody young university of arkansas if i would also i like energy labs a us food service get gnostic lab club beijing in mobile alabama which we sign in the fourth quarter there will be using soviet the game for every retiree concerts recent they decided to use our platform because they felt we could help them accelerate their money offering to the forefront of redditors cancer patient outcomes synergy is also typical of many of our central lab clients as the yup and she has sequencers from the people eating she players similar the engine data coming off each machine is a between it normally i love with a jury use off the shelf softer sold by each manufacturer fisher late for that specific machine for hum grown solution that are expensive to skin and difficult to maintain
spk_0: the code for the software programs typically struggles in such a at the region which environment as often times the software at limited compatibility with respect to the output file of various competitors regions automation or library prep tools
spk_2: we have yes all this it there are generous and bremen challenge in the customer lab through our platforms you know that unique ability to are more nice signals in the data regardless of the of sorts of the region sequencer it is a key differentiator of course of yet idiom so if i may take this back to the us market and synergy after twelve years of codevelopment and refinement we are able to confidently digestion homage beat up from it's original temperaments like at synergy and in doing so out synergy deliver the most tax rate reduction
spk_0: in a secure manner at the lowest cost
spk_2: this is a winning solution for both us and them in total i am pleased with our progress in north america and look forward to a dating him in twenty twenty three on our computer program and for our second question could we sure that our i don't you might you know me profile data produced locally or the truth and not for chase at some of our a competition do as value beyond clinical specially to buy your former customers when we thought about these we felt that pharmaceutical companies face similar are challenges to the clinical space regarding data and silo when reconciling their a clinical trial data we are it be awarded us with this challenges resulting the high variability in the quality of insect we serve our by your from our customers by helping them for bottlenecks across the by your form i do chain allowing our products services and applications to address the drug development continuum from discovery to develop and an intimate v deployment we call this the treaties all of which are powered by sophia the dm data generated in real time and in the real work
spk_1: we launched our initial applications for the by your from the market in twenty nine team and we currently up for branded applications for by your from our customers
spk_2: so back to the question is sophia able to show by you to buy your partner i would tell you my opinion on this is a resounding yes and the proof point that demonstrates that is our february announcement expanding our as for the make a partnership we started working with a easy in the deployment said this was taking hiv testing worthwhile with estrogenic you put then from there we built on a relationship and are now working with them on discovery now we will be collaborating on out sofia's multimode out
spk_1: technology and expertise could be applied to astrazeneca global leading oncology portfolio
spk_0: beer industry where to today income recession with over out of the top twenty former company in the world as well as many leading heroes because we would argue the understand the benefits of or network or platform and the data we up
spk_2: we new by your from our customers we expect they may have different start points we'd sophia but they will follow the same london expand the aber we see in the clinic space the and boost traditional by you're probably years we announced in september that we are working with abandoned by your regarding a very exciting technology in he said he didn't bonded by your is a next generation precision oncology biotech companies developing innovative threat up takes directed against extra chromosome the in it or should be enough in oncogene amplified cancer extra chromosome of the in a in both really look good outside of the chromosome and is found in the run forty percent of metastatic cancer and as a you're developing the first europeans along with precision get not click method to detect a cdn it from the patience with game to more sequencing data our partnership with further develop these get gnostic my dog for use in clinical trial our decentralized global genomic solution combined with bounded by your drug development capabilities to unlock can buy you a breaking the barrier the normans to a traditional central about punch this should lead to optimise fission selection and clinical trial design and the label our global collective network of major off beatles and academic centers to effectively delivered new treatment options to patients with oncogene amplified cultures and viewed that as we always say data is important now with memories on kettering sophia the dm we love the incremental access to over seventy five thousand two baited guinea coach nami profiles across cancer that
spk_0: together we are going to democratize the use of precision medicine application around the globe
spk_2: now let me address the third question the viability of our platform when applied to other more that it is beyond you know me from early on we have felt that overtime or inside should be generated not just from genomic data but also from emerging chemical and laboratory data intuitively we have felt that data gathered from beat them with it is beyond you know meeks out to further improve the predictive cup abilities of our algorithm for the benefit of patient i would tell you for us making more that leaky a deliberate strunk proof of concept aquatic wrench of cancer types the flagship example of the promise of such meeting with all approaches is our deep love for meeting with lt col study which we launched in december twenty twenty one the deep long for study focuses on the treatment of metastatic and lung cancer patients with immunotherapy and in this context we aggregate real world mean with the data including genomic data or dooming data clinical data and biological data our technology than leverage is deep learning enabled analogy of the aggregation of each we'll watch meeting with all data to a dumpy fight and validate predictive signatures of response to therapy probation for issued by evil or of roll through bible
spk_1: this predicted signatures are being validated of the individual titian level with full transparency on the drivers of the prediction with the aim of intimate he's supporting clinicians to make informed decisions for their patience and supporting bio pharma to ensure the right fission are selected for
spk_2: clinical trial we reported or school twenty twenty two a spirit set of primary rattle suggesting a predictive power of around eighty percent which for us by the dates the potential of our wiki model approach in an international realty centric and decentralized setting this is highly important a similar ridicule those studies i typically don't at a single center level today
spk_1: we're struggling with actions regarding the applicability and scale ability of these models outside of that particular institution
spk_2: in this context we are very happy to report that we continue to expand our deep lumped for footprint we that were making more the algorithm now also being exposed to data from latin america through our club russian we'd rather that inbred you with in the process of activating several site there are currently twenty five participating sites across the us friend italy spain germany canada is israel and no brasil that have already signed up for participation in the study with around one thousand five hundred patients for cookies today do these him tension old go about footprint we aim to maximize exposure or for machine learning algorithms to a wide range of the day birds real world data
spk_1: additionally this footprint exposes us to a diverse set of technology that could use that data
spk_2: for example in the imaging beat them with that eighty or a soviet union that from is exposed to thousands of medically mages generated for different city em right and pets kennard from different manufacturers these kids does the unique ability to offer are more nice and tender data analytics in emerging as well in a decentralized sitting further demonstrating or ethical technology agnostic market for the shunning or the data analytics but
spk_0: we are not w working with our partner g oscar in the context of the diplomat posted were just making fabric services are used to be realized sick man and or not they lend lesions for medical imaging ble deshon and annotation proposal this a lot of kitchen addicts to further accelerate proprietary read your mix analytics workflows in the context of the study he particular to move towards automatic were body to it and duplication segmentation and quantification
spk_2: in fact from the deep long forced to do with power one of the applications of are linking without her but more do of this of yeah did impact from offering a bench making without i'll you any duchesne quoting and predictive capabilities in a single solution
spk_0: we feel that the diplomat for study as a potential to usher in a new generation of precision medicine that would enable prediction at the individual patient level
spk_2: we look forward to further buddy dating or a vision of building a meeting without decentralized collective intelligence leveraging on real world data to generate nobody inside at the individual patients or not don't into interpol i am happy to sure that we continue to deliver on our commitments and make progress across all of our t growth drivers are they touch on or year reducing operating expenses he the king was so we learn to flexion twenty twenty two what became apparent to us as the go global environment the period it teams our i feel with how far a month or a fiscal discipline with the intention to minimize any impact on our gross we set at big challenge of operating expense rejection with a precision mindset
spk_1: i am pleased to report that limits subsequent quarter of twenty twenty two we were able to reduce our operating expenses humiliating in the most significant improvements in the fourth quarter
spk_2: our head headcount ends at four hundred sixty six as of december thirty first twenty twenty two down from the high of over five hundred thirty this reduction as a group primarily through planned attrition and selected actions him at improving productivity we intend to continue for the ring or a fiscal discipline and related abilities regarding make me the best use of our cash balance based on our current trajectory we remain confident in our capital position and continue to see sufficient runway to execute our ambitious coastline we continue to be responsive to the grenfell breaking and macro environment and remain laser focused on delivering sustainable growth layered into our thinking on capital efficiency as being capitalizing on the commercial leverage of partners our mindset was rather than doing everything ourselves with this partnership knowing place we felt we could leverage others to help us grow i already spoke about them escape and you can understand how thrilled we are two other cancer center or their caliber trusting us with our technology and intellectual property
spk_0: in two twenty twenty two we continue to strengthening our partnership with astra zeneca just her karajan and other existing collaborators from a strategic to of russians we spark innovation more quickly increase the size and scale of our network connect with a large volume of data and offer more ability then we could provide individually i would like to take a moment to highlight one of these partnership for you in detail microsoft
spk_2: microsoft brings to of yes several intersecting points of leverage we'll understand that scaling the cloud is very important and on that concept microsoft we serve us well as we demonstrate making without a cabinet jailing the capture of miki model data is no small feat but with microsoft has a partner we will enjoy their as you put and significant infrastructure and capability let me walk you through our first four months since announcing it in november
spk_1: we uphold strategique alignment meetings at high levels between the two companies including oppression or steering committee meeting on commercial and innovation work stream
spk_2: this meetings and included microsoft general manager of ulster and strategy
spk_0: microsoft industry did are poor health care in the us
spk_2: as well as the microsoft senior vice president for strategy and this message you bash him
spk_0: the focus of our strategy collaboration with microsoft is twenty three fold and into scarpa killed by noon microsoft to accelerate our deep diploma for program expanding or a commercial reach and supporting our scaling the amber i'm and program
spk_2: am pleased to report of of fourteen microsoft philip person have been trained on sophia tdm and intimate he will be selling to our target market this is meaningful of microsoft says forth will help amplify or pregnant in the market i would like to wrapped up by reminding you of our six strategic pillar sweet remain our focus for driving long term growth and value creation of for our customers partner and shoulders of kitchen it
spk_0: they are as follows one accelerating custom reduction and network expansion with new clinical customers with a focus on the us market on this measure we have discussed to they are attraction i lighting weekend twins we've seen rg and university of arkansas
spk_2: i would also note of our deep them for study six of twenty five two and participating site being in the us
spk_0: to increasing utilisation within our existing customer base twenty fifty percent of our customers use only ones of trp gotcha
spk_2: thirty seven percent us two or three application and only thirteen percent use for or more applications regarding utilisation i would also sure that our top customers she grows faster than are a smaller customers it appears to have that adopting our technology a neighbor our customers to take sure in their respective market three further innovating or platform to increase our capabilities and house of growing portfolio of application and modules
spk_0: we are united in the marines on kettering for you into they call for developing keep partnerships and collaborations to bolster our ecosystem on the topic of getting leverage from our ecosystem we have a lately to you our burgeoning microsoft relationship
spk_2: by leveraging or a platform to further drive adoption with biopharmaceutical company here we have i like either registering developments we after them again takes and lastly extending oppression in winning sofia which we displayed through our improved operating loss trajectory despite hitting our top lane gods regarding or execution against the spiller bird with the momentum gilding without partners be that microsoft image game cage and and that was in a i feel more than excited today that these are the elements that will enable of yeah the do what we set out to do eleven years ago to are no data from the global community to generate actionable insights that contribute meaningfully to patient care and patient outcomes
spk_1: contribute meaningfully towards our customers success
spk_0: and that deliver outstanding performance was for kitchen and six in twenty twenty three and beyond
spk_3: we that
spk_2: i we louder and the call over to us to discuss our financial performance in more detail
spk_4: thank you you're the we saw continued momentum across the board and queue for which the pure execution and consistent operational discipline setting us up for a strong and to the year i was particularly pleased with our revenue performance in the face of significant loss and cash flow and rodman delivering on our commitments highlighted earlier in the year total revenue for the fourth quarter of twenty twenty two was thirteen point four million compared to ten point nine million for the fourth quarter of twenty twenty one representing year over year growth of twenty two percent constant currency revenue growth with thirty six percent and constant currency revenue growth excluding
spk_0: coburn nineteen related revenue with forty four percent platform analysis volumes were seventy one thousand for the fourth quarter of twenty twenty two compared to sixty six thousand for the fourth quarter twenty twenty one the eight percent year over year growth with attributed to strengthen our core platform analysis volume on
spk_4: offset by the continue to decline of are covered nineteen related analysis volume excluding coded related volumes platform analyses great healthy eighteen percent year over year in the period
spk_0: gross profit for the fourth quarter of twenty twenty two was nine point six million dollars compared to gross profit and six point eight million dollars in the fourth quarter of twenty twenty one representing year over year growth of forty one percent gross margin was seventy two percent for the fourth quarter of twenty twenty two compared with sixty two percent for the fourth quarter of twenty twenty one adjusted gross profit was ten million dollars an increase of forty two percent compared to adjusted gross profit and seven point one million dollars in the fourth quarter of twenty twenty one adjusted
spk_4: gross margin was a record seventy five percent for the fourth quarter of twenty twenty two compared to sixty five percent for the fourth quarter of twenty twenty one of note while i'm pleased with our efficiency gains in the period particularly on the hosting side i will highlight a benefit of one million dollars we recognize in the period related to the
spk_0: previously announced cloud optimization efforts
spk_4: total operating expenses for the fourth quarter of twenty twenty two were twenty four point seven million dollars compared to twenty seven point eight million dollars for the fourth quarter twenty twenty one total adjusted operating expenses were twenty two point one million dollars compared to twenty four point six million dollars in the fourth quarter of two
spk_0: many twenty one are in the expenses for the fourth quarter of twenty twenty two or six point eight million dollars compared to six point four million dollars for the fourth quarter of twenty twenty one
spk_4: sales and marketing expenses for the fourth quarter of twenty twenty two were four point two million dollars compared to eight point six million dollars for the fourth quarter of twenty twenty one general and administrative expenses for the fourth quarter of twenty twenty two were thirteen point nine million dollars compared to thirteen million dollars for the fourth quarter of twenty twenty one overall i am quite pleased with the progress me exhibited with respect to operate a expense leverage in the period however i would like to highlight a few items that impacted reporting in the period with respect our in the expenditures we did benefit from a credit related to our ongoing cloud optimization efforts which was
spk_0: recognized in the period additionally the with a modest reclassification of certain expected from already to gnh that shifted certain expenses in the period last lead the was a slight adjustment to employ related expenses and a quarter which resulted in a modest benefit cumulatively the impact on operating expenses was roughly about
spk_4: effects of nine hundred thousand dollars in the period
spk_0: turning to operating loss for the fourth quarter of twenty twenty two it was fifteen point one million dollars compared to twenty one million dollars in the fourth quarter twenty twenty one adjusted operating loss for the fourth quarter of twenty twenty two was twelve point one million dollars compared to seventeen point six million dollars for the fourth quarter of twenty twenty one net loss for the fourth quarter of twenty twenty two which fourteen million dollars or a lot of twenty two cents per share compared to twenty one point four million dollars or a lot of thirty three percent per share in the fourth quarter of twenty twenty one adjusted net loss in the fourth quarter of twenty twenty two with eleven million dollars as are a lot of seventeen cents per share compared to seventeen point nine million dollars or a loss and twenty eight cents per share for the fourth quarter of twenty twenty one turning the full year fiscal twenty twenty two financial results
spk_4: total revenue for the full year twenty twenty two was forty seven point six million dollars compared to forty point five million dollars for twenty twenty one representing growth of eighteen percent the growth in revenue was primarily driven by increase usage rates across our existing customers favorable makeshift a higher price analysis
spk_0: strengthen hrt and bio a pharma offering constant currency revenue growth with thirty two percent a constant currency revenue growth excluded covered nineteen related revenue with thirty nine percent annualized revenue churn rate was four percent of total revenue for twenty twenty two as there to be a stork low of three percent seen in twenty twenty one at the result that pent up demand due to the pandemic average revenue per platform customer for the full year with approximately ninety three thousand seven hundred dollars compared to approximately ninety two thousand dollars for the karate or year period of note this metric with significantly impacted by currently related headwinds over the balance of twenty twenty two next dollar retention for the year decreased or hundred and two percent from one hundred and forty two percent it and twenty twenty one constant currency that dollar attention excluding coburn related revenue was one hundred and twenty three percent as compared to one hundred and thirty two percent in twenty twenty one total recurring platform customers greek at three hundred ninety and of december thirty one twenty twenty two up from three hundred and eighty two as of the end of december thirty one twenty twenty one and three hundred eighty three as of september thirty twenty twenty two with the respect of land momentum i am encouraged by the sixty three new customers we have converted into our routine recurring bait and twenty twenty two however on a net as recurring platform customer additions were modest than the prior year as we strategically decided to turn to smaller more price sensitive accounts in certain regions we expect this metric on a net basis to return to more historical levels of increase in twenty twenty three looking into our expand momentum we are quite happy with our ndr performance and it provides us with a high degree of that revenue visibility for twenty twenty three gross profit for the full year twenty twenty one was thirty one point three million dollars an increase of twenty four percent compared to a gross profit a twenty five point two million dollars for the full year twenty twenty one gross margin with sixty six percent for the full year twenty twenty two as compared with sixty two percent for the full your twenty twenty one adjusted gross margin with sixty eight percent as compared with sixty four percent for the full year twenty twenty one total operating expenses for for year twenty twenty two were one hundred and nineteen point one million dollars compared to ninety six point seven million dollars for the full year twenty twenty one total adjusted operate expenses for the full your twenty twenty two were one hundred and four point three million dollars compared to eighty seven point three million dollars or twenty twenty one are in the expenses for the full year twenty twenty two were thirty five point four million dollars compared to twenty six point six million dollars for the full year twenty twenty one sales and marketing
spk_4: expenses for the full year twenty twenty two were twenty eight point three million compared to twenty eight point seven billion to the full year twenty twenty one general administrative expenses for the full your twenty twenty two for fifty five point eight million dollars compared to forty one point five million dollars for the full your twenty twenty one ah
spk_0: operating loss for full year twenty twenty two with eighty seven point eight million dollars compared to seventy one point five billion dollars for full year twenty twenty one adjusted operating loss for the full year with seventy two million dollars compared to sixty one point five million dollars for the full year twenty twenty one net loss
spk_4: for the full year twenty twenty two with eighty seven point four million dollars or a lot of one dollar and thirty six cents per share compared to seventy three point seven million dollars are lots of one dollar thirty three cents per share the full your twenty twenty one adjusted net loss for the full year twenty twenty two with seventy one point six million dollars
spk_0: or lots of one dollar and twelve cents per share compared to sixty two point three million dollars or a lot of a dollar and thirteen cents per share for the full your twenty twenty one cash and cash equivalents run hundred and seventy eight point six million dollars as of december thirty first twenty twenty two turning to our twenty twenty three outlook
spk_4: sophia genetics expects reported revenue growth to be at or above thirty percent in twenty twenty three constant currency revenue growth excluding covered related
spk_0: revenue for twenty twenty three is expected to be between thirty and thirty five percent in line with our previously hide in lighted long term expectations of note we currently expect a headwind between twenty three reported revenues of approximately one million dollars related to a seizing of coven nineteen related contribution is will a clay to i headwind of approximately nineteen thousand analysis to reported volumes furthermore we would note that exchange rates remain highly volatile like the moment we anticipate a modest the impact or reported results with respect to the quarterly cadence and twenty twenty three we would note that are critical analysis volumes tend to exhibit the typical seasonality a patient utilization with usage building over the course of a year the third quarter typically exhibiting stabilization and the fourth quarter being the largest contributor with respect to our former business we would know that remains it's nascent stages and in turn it will be a highly sensitive to new business wins lastly following on strong cause performance in the second half of twenty twenty two be genetic six specs twenty twenty three operating losses to be below twenty twenty two levels by least and closing thoughts and our current capital position
spk_4: i remain encourage by the products or team has made over the balance and twenty twenty two enabling us to deliver strong revenue growth while also making significant strides toward our long term gross margin goal and seventy percent and our commitment to a path to profitability as a capital light software business will remain vigilant with respect or had counted indirect expenses balancing our long term growth against the need to become self sustaining all with an eye on long term value creation based at our current trajectory we remain calm in our capital position and continue to see sufficient runway to act acute against are ambitious growth plans we will continue to be responsive to the current operating and macro environment and remain laser focused on delivering sustainable growth with that i'd like to turn the call back over to your day for the closing remarks before we take your questions
spk_2: thanks to rough were extremely proud of our performance which we believe reflect our continue the ability to execute on our vision and the opportunity ahead
spk_0: of us success stand on our ability to delight customer and continue driving more and more usage of our platform our seeks strategic bill or to remain our foundation to gripe both and value creation of with each year as well as the years to come i am encouraged and as confident as ever about the long term path that we are on
spk_2: we have a fantastic opportunity to bright competing returns and shoulder value
spk_0: after a successful an unforgettable twenty twenty two our focus shifts to sophia picture
spk_1: i will should just a few thoughts looking to the near future
spk_2: with three key priorities for twenty twenty three
spk_0: one in so much you can call or g we see both the clinical and by your from market increasingly focusing on rarer patient populations defined by monica out the russians hacked are more challenging to detect confidently decent food aggression such as eggs on keeping you then visions partial cooking them are variations are complex biomarkers such as hiv as well as new modalities to detect was all directions for example to liquid biopsy
spk_2: to our algorithm recap ability to detect the signal from the noise and are a global scale were uniquely position for growth in that sigman leveraging a wave of upcoming launches in the city and liquid by your key stage notably twelve collaboration with them escape as well as new features in hours of yet the template from to in by your from our wiki accelerating traction across our offering as evidenced by the recent expansion of our existing partnership with astra zeneca to now cobra are kimmel della going to me cabbages obliged to their oncology portfolio this is a great example of how we leverage over land expand model not on the in the clinical market but also in the by your follow market three in with chemotherapy we look forward to the official launch of career path will do a former soviet union that from we the first guess any the context of mitch that non smoking lung cancer and other applications to follow notably leveraging several external call of russians
spk_0: we see high interest from by your from a to engage with our to but of in closing thank you to our partners customers and investors for joining us on this journey
spk_2: without you know nobody would be possible
spk_0: later today we are presenting of the cowan else to a conference here in boston
spk_2: feel free to join our webcast on that presentation from the link on the i r section of our website and next week we will be presenting a birdcage healthcare conference in miami
spk_0: i look forward to continuing to update you on soviets features successes
spk_2: of democratising data do and medicine
spk_0: operator you may know open the line for question we will now begin the question and answer session you ask a question you made press star than one on your telephone keypad if you're using a speaker phone please pick up your handset before pressing the keys if at any time your question has been addressed and you would like to withdraw your question please press star than to at this time we will pause momentarily to assemble our roster the first question comes from they have developed with morgan stanley
spk_5: please go ahead
spk_6: hey guys good morning and thanks for the time yeah ah maybe i'll start with one for your ross just just and the guide help us frame that that girl trade us us about thirty percent yeah i'm good how are you thinking about grab your drivers of conservatism were says potentially upside leavers that you're not incorporating and the guide
spk_0: the thank you for the question that just sounds rough and you're good that ah thanks to do so bad pages in our in terms of the record a guide obviously we we gave you up at the core guidance by which for the underlying businesses in line with that long term growth rates we share that the analyst
spk_4: hey and so for us ah that's that's where we have a high degree of visibility particularly relative to our clinical business if we think about it the other pieces they're obviously we talked a bit about that facts which has been popping around and today doesn't have a material impact and then obviously the the million dollars roughly of of kovac related revenue that will roll off but if we think about ah in or the ability for us to sort of achieve our age obviously as i shared the analysts day and a good kid is to be the case given our business model ah we have very high degree of visibility odd for twelve month wrapping is right that's quite true based on are contracting in our power consumption base model and so there i would say politically clinical in a ninety plus percent visibility and forward results in the the l a bed for us where you could see or continue to see upside is obscene the bio pharma business there are we take great momentum and and maybe i'll let your be a comment appeared on some of that that trends and trajectory and bio pharma that that's really where you see much more quick burn ah an immediate sort of revenue contribution where you'll see sort of a bigger sequential stepped up relative to add to result olsen and obviously in a relative to what's included or implied in the guidance it's what we have visibility out today
spk_0: obviously we intended to be able to sell more bio pharma business over the balance of of twenty twenty three ah but but that visited today still quite nascent in so in terms of how we think about it relative to the guidance we've been down pretty pretty conservative i would say that you're deeply as that maybe just gibson color their on bio pharma as i think that the the key one is we think about upside driver know things are rough said the jets and did write about this set of the to me that that less no other businesses and the way lecture with the be either with over three is of the bullets really related but distinct customers who are consuming of that form and given the launcher and we're in the back from we can from there are a good idea of our going to grow prosper
spk_7: contract is like a job opportunities that the now are going to move into with you on that one we have a lot of it on the bio pharma sides are we have any does it from some contact we are signs but as you can imagine some of them can be quite decent and saw this may be an ad donald or revenue but will depend on one day or when their contract eat and how quickly we can execute them by and south to give you some perspective that to just right now the really of being able to demonstrate the value proposition of sophia in terms of network from and data sets for the former around the strategy that we got to d which is from a discovery to
spk_2: development to the thought you meant we mention astra zeneca being an important partner with when we started on the deployment sites of but market approval of work any better than that we are working with them on the discovery aspects leveraging on the data we've gathered in particular in the context of the the people on the for study but as well the algorithms we devil
spk_7: in that context and just give you some ten minutes she's right now the just the former we're engaging with the top twenty former ah in in the word and the trance we he and be a good day for sophia arbor mich related to our decentralized approach the model our milky model type of it it is and
spk_2: and that one things that we have not yet disclose the i would say get intensively but on which were working witcher liquid biopsy kappa need it is such as what we are doing with msk access but that well mrg testing saw on top of what we did i like to do in terms of guidance indeed we may yet or the good news from the former site that good
spk_7: jonathan our or increase our it's revenue growth that in twenty two anything and be on
spk_8: got it that's helpful
spk_6: and then behind a called out to fx and and some pandemic normalization on the children and the net dollar attention metrics are put out a dumb ltv add the cat block for twenty twenty two still trending about three x or so and then ross i think you mentioned something about of a strategic decision to let smaller price sensitive ago concern is that now largely done or to expect to do more that over the course of twenty three
spk_2: yes said thank you for are these questions they just beat me for a letter that ross answer to you on the specific a metric he didn't he opportunity for me as well remains that we the as film goes into for for our despite actually challenges we with fact even that most of our revenue is being own
spk_0: in currencies which are not dollar and that we report that were resolution bowler saw on cue for twenty twenty two on the reported base we grow twenty two percent versus and you for twenty twenty one extruding corby the analogy sir and excluding cost center and see we actually got forty four percent
spk_2: in that you for twenty twenty two virtues or queue for twenty toiling one rights a strong growth and to give fines right beasts
spk_7: ethics had wings are as well in directly affecting some of our intrigued like and the and song because the are being done on current good actor and as journey on reported business and not on cost and a grandson else do one for come for yeah suits you on the other two are metrics rights or ltv the cat or that was around four times for the years is still
spk_4: well above you know that signaling to us is well that diet pills were obviously i am keeping our customers were growing them effectively and are are at cost of acquisition which is obviously and important day as we think about half the profitability remains quite attractive do we actually recently added a new head of marketing from from outside actually from the technology space and and i'm pretty excited about what he could bring to the table as well have to be able to accelerate particularly on the land i think there are you know obviously there's still a lot of places to play loran but also in other parts of the world where there's quite a lot of opportunity south i get more really looking for sustainable growth and that's a sign that we're we're still doing that in in quite a healthy ah a healthy
spk_6: way
spk_0: got it em and the custom mature not you know deliberate custom much on rough any thoughts on that is that just done now though i would stay up for the most part right so so some of that is related to kobe rights if you think about some of the small customers that started the next and sequencing to the used to grant to get his sequencer they began and kobe at it and had hoped to transition to a a rare disease or others some of that didn't make it right i would say or stuff of that and weren't able to shift
spk_4: and so ultimately they are we obviously allowed some of them to leave and then you can also think of areas like turkey which we've called out which is obviously been up a pretty challenge specific country and region for us where there was pricing and in that country that that just for us but the badly didn't didn't make sense relative to ah i'm in the long term love of the business and so we we allowed some of those accounts to churn but again they're they're quite small said nothing notable in there and so we feel quite good of were ultimately we shook out any four percent still on the churn rate for a software business is incredibly impressive and so despite some of that noise i'm still quite happy with the delivery and we're going to continue to balance this overtime and regions where we see pricing that that doesn't make long term sense as you can seek right it's it's very hard to sustain a profitable model
spk_6: if you continue to priced at levels that are are unsustainably low right in some knock doctor we're not getting chased that and i think it will be we've looked at the competitive landscape and in a you know some of the businesses and so that that's not a trap we're going to fall into got it and then one final answer big picture strategic question for you your gay i mean we've had some in total disruption had some of these clear labs are we've also had the situation where i mean other than the cheapest sort of ngs costs are only acceptable to the highest throughput settings to there's a strong incentive at play for it you know consolidate
spk_2: he should have volume said that that these large jobs or doesn't mean i'm facilities how does that impact your go to market strategy i am and and does the fact that he notes our vendors like illuminati now focused on mean informatics on board with their new instruments are impact the value proposition forty dm
spk_7: oh thanks for the question to just so for his dad to to remind where we stand today right remember that our strategy that london expand model we were ready in three and judge ninety recurring customers of sophia into television network is seven hundred fifty plus the summer already today are being equipped with sequencers out of each three hundred and ninety are using and soviet the dm every every month and deuce seven hundred fifty and three hundred and ninety using sophie every month or already equipped with sequencers right and sides you may remember we were thick meaty gotta pee wee be expanded
spk_2: of good customers and in the expand we grow by adding more aptly cash and more menu right to there are getting his ass and they made about of us a break them both moving from so saudi you more towards every cancer and then for liquid biopsy a mental impairment today only fifty percent of our three hundred ninety recurring that from
spk_7: i'm customers are using one application that sophia thirty seven percent are using two or three application and thirteen percent are using
spk_2: only four or more applications of what i'm trying to tell you is that despite what you observe or what you have heard about we are ready there in place and we can grow we this existing customers does it say that i would say that we don't see the thing dynamic actually the chest we see more and more decentralization
spk_0: and even the where you got this message is butter in that context we just say of synergy which is a reference loving the us which we signed a university of arkansas right which is another academics and through that we announcer the network earnings to they they've told this is a friend that we continue seeing i was traveling last week in columbia in
spk_7: read the i can tell you that sort of audience are ongoing up because sequencing is getting cheaper and cheaper and we'll get cheaper and cheaper because of competition i was in a sides were actually in brazil to they they have four seven sequencers out of reach for me now out two three more fisher and one energy i thought id
spk_2: we are self in a very good position to be able to leverage or not i be more and more people are adopting sequencers and are being actually odium five years and sequencing price cheaper is better for us right because it means that people are going to produce more data and by producing more than that it means they're going to consumer of the soviet
spk_4: he himself were very encourage me the current friends within the market
spk_0: and not a little by up public paid yeah i'm illuminated terms of on board right obviously that's been a trend for them for up for some time how to see there are a formidable company and and one that you know frankly and in the context of the universe we we we are quite synergistic with right in terms of growing ngs cocoa volumes which is one of their main goals as well i would say it or with the by putting it on hoard it is certainly a strategy for that matter i'm sure that makes
spk_4: sense but the reality is what we're trying to animate in the industry in terms of a detour decentralized network across many different player sharing information across all technology is all either tied to the brain injured a providers excel or up and across all of the alleys it's just the fundamentally different strategy rights or the in know on the result or side i understand why someone they were ah you know something is as simple as and onboard up island for matic with their sequencer but i think in their clinical space where the again and this idea of data sharing and collective into
spk_9: allergens globally is really gaining momentum for us we feel quite comfortable with our position and i think all of these players frankly can can coexist in our in our in our a nice way and frankly just continue to grow the market overall quite effectively
spk_7: thanks guys appreciated times
spk_0: they cute the just a good day
spk_10: the next question come from bridge will occur with credit suisse please go ahead
spk_7: i've seen thanks for taking my question be minute the topic right renounce wondering if you can give us a sense of how you imagine gen vi enhancing a platform as we interact from here
spk_2: so thank you for the question which so i understand your question was about junior rather yeah make that and room more often a now germany i am i'm a does allow refuse to death and development good good twice yeah good question so look in in our story a guy has been there at the hard since beginning by
spk_7: right because as i was just explaining to they just seen our customers sites there is a lot of it there were in a city that use different sequencer that you would be different consumable cents on and so one of to beulah agree them some debate eat off partner recognition deep learning and machine learning to be able to bend the data and correct normalized and able to here now and by doing so when iterate they thought so that was the does to put take more informed decisions we see that trend as well in order the or that it is as now we are going and that milky model and in that aspect i would say a i related afford to be extremely important in my opinion on on anything which is key got data any particular any they thought that are being to they gathered into documents or any hrc sense where i've been to a i have picnics and okay i think makes me to be applied to basically gathered was data in a more sophisticated more i would say precise
spk_11: reform and be able to bring this comprehensive information to an individual so far as a pathologist virginity his without slumping if you like of these people with too many information right but really bringing them the precise information that is consistent than that is importance to take actions on this patient in the context of many other
spk_12: patience
spk_10: okay got it
spk_4: thanks and and mm just quickly rock and drop on on the the feel of promotion of wondering if he can share me be a couple of your top priority obviously a very familiar with the in the confidence that media few things that will be focused and honestly and then that from and thanks guys i thank you rich so i would say and in general right are you know my my priorities set in in terms of my new function functional role as it's not too different from what we've been focused on his organization over all right so obvious that would get a very large market opportunity in front of us and we got to execute against it and we've got to execute it it it against it in a sustainable way right with the the cow capital that we have and so in that you know i'm personally very focused on had we accelerate our land particularly in north america and how do we get ultimately this market to the the place where we think it can be ah and and again we're seeing a lot of really good green shoots and momentum there but there's still a lot more to be done in in north america i also think it's well on the bio pharma side we're just scratching the surface noticed at us about upside drivers there's a lot of momentum their patio at the jail neurons a business for us we've had him on the called the boys to the tremendous job and and i think we can really move the needle and and then lastly on the partnership side ah we've got fantastic momentum with microsoft in a year he also talked about agile an entire gym which are great partners for us we are the same spent a lot of time on msk hey and so making sure we get return and momentum added that it's crucial and then lastly either be able to do all of that with what we have right here are proud of what our team was able to do terms of operating in that last this quarter or we've made huge strides you know as a european and to the it takes some time obviously to sometimes displayed at
spk_10: sequential you know operating loss improvement some are looking for but certainly were getting more productive we're getting more efficient we're getting more focused and being able to execute on those items without adding head count and without adding significant indirect costs in of that's where we're really focused didn't and what i'm focused on
spk_7: thanks appreciate the color
spk_0: thank you reach of a good day
spk_13: the next question comes from mark massaro would be to id please go ahead
spk_10: hey guys thanks for the questions and can grab a strong twenty twenty two on my question is for your g
spk_13: the on the the the deep lung study i appreciate all of the i'm he knows the detail i believe even rolled fifteen hundred patients on how many more patient do you expect to enroll when do you think that study will wrap up and our wendy think we can see at another in
spk_0: from read out
spk_2: thank you for the question mark saw
spk_14: indeed just as a reminder right that the study we launch shot in twenty twentieth are sinner and the be the key in a year enough time that we being able to onboard twenty five sites around the word on this multi modal journey out of which he kinda us and we being able to follow launch the only one thousand and five and
spk_7: they sense
spk_2: adding more like learning from a sense for genomic data imaging data as well as two hundred a clinical data points off which is pretty awesome in terms of how quickly we are being able to operate that now that we're said that's when when we started the study that this would be a retrospective to the on four thousand patients so does gonna give you a sense of how many patient data were going to gather this year so should be around two thousand five hundred and and viewing that we are thinking saw this is getting very premature and but that's well at considering a prospective studies right
spk_0: but the we would for a staff to the stosur retrospect fifa data witcher i think we're going to do as well enough in the next the oncology conferences were participating that overall i would say mark we're very excited about it because when we gonna to public you know there was some expectation on as of good hitting the numbers and about
spk_7: the most fifty more compatible with those us market for it you know me not treating we could penetrate the former but that will demonstrate the market that we could go beyond you know it's right and with what we did we'd be planned building therapist now we are in this unique position where we can gather other that it that together we can on monday that we called is based on your finicky big data and i continue as a was commenting to put the just the way to travel the last weekend column get in brazil in any meeting i get people the ones be orleans at the genome is that it that to get access to cannabis to be able to follow the fish and the yard i never too in a there in cancer rowdies other so i think year old we have to be now very the hitting on executive the planned and beyond and
spk_10: is where we can to lock them our partners like g are we mention that what we're doing with them on day that fuck imaging fabric site as well as microsoft where we are working together on being able to gather clinical data upscale in a decentralized right it's really exciting marked by the way this is why we build sofia exactly yeah the great you keep of your multi modality of definitely look forward to the next i'd dated that the i've read up on my last question it's her roth i'm you know great to see the gross margins come in ah above seventy percent i think you've already exceeded your twenty twenty five go i'm hum how
spk_13: mark
spk_7: to what extent is that a level that you think you can maintain here and twenty twenty three ah i'm in or d c now perhaps potentially higher gross margins that as a long term goal and then my ah finally on the contribution between volume and price and mix ah how should we think about
spk_2: the levers ah to hit your thirty percent revenue growth this year
spk_7: thank you mark thank you for electing that the got these doesn't come with as you know a lot of the city in and a lot of for a can be for a letter roster you not give you some more color on what us i would like to a life that this not by chance right will be super addicted to sitting on at towns were being super if you'd been on an indirect
spk_4: expenses as says professional services to the company cost we have been working as well on major up that would saving not only by better negotiating but by improving as well our code so that the code would be running more efficient thing that that with and it's would cost us less and then our we have been focusing as well on pa jack you not maybe not doing some projects that were at interesting but really focusing on a higher impact projects with a higher our lives to mark first on the gross margin side ah i would say certainly relative to our performance and a quarter very proud of of the team right we're we had fantastic execution we did benefit in that period
spk_0: i did call our our a credit related to our ah to compute n n cloud spend that job that was recognized in the quarter so it did add a couple points to the gross margin line that being said even excluding that benefit the performance was was really strong right so obviously we're very focused on being able to drive best in class margins and and and that remains of focus and obviously i would say the work we've done on the cloud side continues to be ah either a huge focus now going forward in terms of ah you know how to think about sequential margins it
spk_4: i'm not going to give specific guidance but i think you can certainly look at that call out right in terms of benefit the period and and then adjust the as you think about your cadence into que one in that the rest of the year but certainly our goal is to be able to sustain margin certainly north of seventy percent ah you know yet we obviously and thought of it
spk_0: at the time without knowing all of the driver is by twenty twenty five certainly we we hope to get there sooner on our annual basis as recall for this year we ended at at sixty eight rides i would say in terms of going forward you know business mexico and also a bit of our strategy will will sort of dictate the yeah the pace but we're trying to have i would say more
spk_4: consistent expansion on the gross profit or gross margin line and and we're obviously in a week we benefited from price in this environment etc as well but ah but certainly stuff that the will also depend on next right and and and also our decisions of driving volume in some of our new areas and started say stay tuned our goal is certainly to be able to deliver for this either metric in terms of seventy percent in that near to medium term vs maybe twenty twenty five but certainly are are ambitious and is to also dried best in class overall margins for the business and it also i have a are reputable far it's it's maybe just quickly on revenue in are you install us in a lot of expert with days this year by grow this bit of the high teens and i think in that range maybe a touch higher make sense right as you think about the clinical business for for next year
spk_15: pricing in a week we did take another price increase in the beginning of the year or that allowed low single digits and then we also have that continued expansion of of r e s p is which this year i would say despite currency were obviously quite good ride and so so again and and here in terms of the drivers that the yeah the underlying lever
spk_4: as to us are quite visible and end you know the one piece we obviously couldn't solve for this year was that facts
spk_2: obviously we we hope that calms down but by the other than that that sort of the the next of it and then bio pharma obviously you'll see impacting the s p as in the way you will look at the model and and so forth and so to degree we do see upside are that's wearable converses the appear analysis volume and at i would that the mark that of is the growth margins are very important because
spk_16: reflect the sustainability of the business fight and sophia because he you with us are we done but not only there to be shitty nappy even if you're making sure that they have sufficient to they can be yourself these fish and but as well that leverage for that began further out vicious tomorrow but in that context of course bunch of youth as well and economy
spk_17: become more than that sustainable for the long run and enough sensei one point eight as well have a drug test position and off for december thirty first twenty twenty three we were standing with hundred seventy eight point six million dollars in cash and march
spk_0: excellent thanks for all the time
spk_18: and smart the next question comes and julia kin with katie morgan please go ahead
spk_7: oh and this is my time of them and on for julia and grandson the quarter and thanks for taking a question and answer the question sell compared to twenty twenty two on what are your expectations for the customer think in terms of geography and then own sunshine in a clinical launched by a farmer thank you martha saw as you may remember writer we are today in seventy country so we're ready to go we started in europe and sir our prisoners being on what dominant in europe the teams and we've been very nicely growing up everywhere and the i think our
spk_0: the that we have demonstrated that our more that what or thing and anytime she'd been so i just that mention some deal tv announcer
spk_4: and reset the way that see you again and nevada or by and being a one off bad examples of reference love that i can work with us are you mention as well universe your heart tennis i not or can assess sorry for that i learned that the of this is not how we were pronouncing arkansas so i hope i didn't offend anyone there and so the thing i think give you a color on we're we're we're trying to get my pockets fight for definitely need were going everywhere i bet we have been growing more quickly in average in northern yeah cattle we've been growing over a core great average in twenty twenty two and this he's a trend that which we think should accelerate in the next that quarters and and years yeah in terms of the mix of clerk on bopara so we don't separate as of yet been given just the nascent stage a bio pharma but but as i stated at status question either officer we've got very high degree of it's billion the clinical business right so ah in a you you can see our growth expectations for the year and and look back to when i i see the analysts day and so i don't think there's any shift in our view on of what comical cat and can deliver i think frankly could it could possibly accelerate from are but that will take us to continue to i would say i improve execution in the u s you know and for like i'm super proud and the team ah if this was really are a transformational year for us on the bio pharma sided i'm i'm very optimistic around what we will see in not in twenty three from that team just remember again you know those tend to be longer cell cycle just given the size of the business and then again the burden
spk_0: i'd be a bit quicker but but still ah
spk_19: it it takes some time to kind of contract and sign and so in terms of in a contribution i would say i'd certainly looked toward the the second half of the year in terms of the next level of inflection on the bio pharma business and then what it gets to size where it it makes sense from a disclosure perspective start sharing that revenue for you but it's
spk_20: day is not it at that size where that would make sense and maybe martha just went on the your question regarding the
spk_7: the wreath wreath as the a journalists have the best seller blow for partner so you're very powerful announced a partnership with advantage and add this quarter back to the edge anybody to combine them that there has to consume apple's we the soviet indiana and saw you know if you see where a cage and the present as well which is even broader than sophia these can give you a sense of where we expert
spk_21: well as well as partners and doing that microsoft flight so we have a decent it i would say cells team but obviously not an offense theme breaches asked what within that big either one of microsoft and so there car in particular in the us were making a a strong focus on expanding our market
spk_0: and it russian so the landing or sophia tdm together with microsoft fine thank you for taking a son
spk_7: this concludes are you gonna come in this concludes our question and answer session i would like to turn the conference by go to doctor yogi come long forty cause you a month
spk_0: yes thank you all for are joining us and during the call to they were actually yeah very excited we our what sophia of being able to achieving overall twenty twenty two and given the actually russian and que four or twenty twenty two so state you and we will be today at the cat one else can call friends next week

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