SOPHiA GENETICS SA

Good morning, ladies and gentlemen, and welcome to the Sophia Genetics Q1 2025 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, May 6, 2025. I would now like to turn the conference over to Kellen Sanger, Sophia Genetics, Head of the Strategy and Investment Relations. Please go ahead.

Thank you, and good morning, everyone. Welcome to the Sophia Genetics First Quarter 2025 Earnings Conference Call. Joining me today to discuss the results are Dr. Yuri Yurikov, our Co-Founder and Chief Executive Officer, Ross Mukin, our Company President, and George Cardosa, our Chief Financial Officer. I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place under-reliance on forward-looking statements. Additional information regarding these risks, uncertainties, and factors that could cause results to differ appears in the press release issued by Sophie Genetics today and in the documents and reports filed by Sophie Genetics from time to time to the Securities and Exchange Commission. During this call, we will present both IFRS and non-IFRS financial measures. a reconciliation of IFRS and non-IFRS measures to include in today's press release, which is available on our website. With that, I'll now turn the call over to Yergi.

Thanks, Kellen, and good morning, everyone. I will start today's call with a brief recap of Q1 performance, which came in slightly ahead of our expectations, as growth reaccelerated and cost management continued to improve. I will then turn the call over to Ross, who will give a more detailed update on the business, George will close with a review of our Q1 financial performance before we take your questions. Last quarter, we highlighted that 2024 was a foundational year for Sophia. We laid the groundwork for accelerated growth in 2025 by signing an impressive cohort of new customers, continuing to penetrate the U.S. market, and launching new and exciting applications such as MSK Access and MSK Impact. In Q1, these efforts began to materialize. Revenue grew 15% on a constant currency basis and 13% on a reported basis, representing a solid movement toward near-historical growth levels. Going forward, we expect to deliver accelerating revenue growth along the three drivers we outlined at the beginning of the year. First, we will capitalize on new customer signings by expediting implementation time and expanding across those new accounts over time. In 2024, we signed an impressive 92 new core genomic customers. And in Q1 2025, we added 28 new customers to that total. Our focus continues to be on implementing these new customers as quickly as possible so that they begin generating revenue faster. We implemented 33 new customers in the first quarter, up from an average of 23 per quarter last year. I look forward to these customers ramping up usage over the next few months and adopting additional applications over time. The second growth driver we will continue to focus on is the U.S. market. In Q1, revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year. The impressive growth was delivered off an ever-expanding revenue base, as the country is becoming one of our largest markets globally. On the new business side, we also announced major expense at two of the leading hospitals in the U.S., with Henry Ford Hospital adopting additional solid tumor and IMOG applications, and the Mayo Clinic adopting additional applications in IMOG. Congrats to the team for this impressive Q1 achievement. Our third focus area for 2025 is MSK Access and Impact, our new liquid biopsy and solid tumor application. While clinical adoption continues at impressive rates, I'm happy to highlight that these applications are also attracting material interest from biopharmac partners. Last week, we expanded our 2024 partnership with AstraZeneca to accelerate the deployment of MSK Access globally. The expansion extends the scope of the partnership to 30 total sponsored institutions worldwide. The agreement also highlights the growing demand for somatic testing, as applications like MSK Access are becoming invaluable to biopharma for purposes of drug deployment and market access. In addition, the data generated from these tests and the diverse patient populations they reach offer immense value to biopharma for drug development and commercialization. In Q1, it was great to see the clinical and biopharma flywheel spinning again as our growing networks began attracting new interest from biopharma. I'm excited to keep you updated over the course of the year as our flywheel gains speed and revenue growth continues to accelerate. Beyond starting the year strong on the revenue side, I'm also proud of the team for continuing to excel at cost management. In Q1, we delivered an impressive 24% year-over-year improvement to adjusted EBITDA loss, bringing the figure down to 9.8 million in the quarter. As we continue on our path to profitability, we believe this achievement serves as a proof point for a scalable nature of our business and our ability to drop incremental revenue growth down to the bottom line. In many ways, scalability was a theme this quarter. In Q1, we delivered a record 75.7% adjusted growth margin, up 520 basis points year-over-year. The achievement was made possible by innovations from our tech and data science teams, who continue to discover new ways to optimize the data compute and processing power of our platform. These improvements are especially impressive because they were delivered despite massive increases in the amount of data processed by Sofia DGM over the years. Total process by the platform increased at a CAGR of over 50% from 21 to 24. While analysis volumes continue to grow, so does the complexity of data. Gene panels are becoming larger, additional modalities are becoming more useful, and more sophisticated tests are being deployed each day. Our scalable cloud-based platform is designed to support the medical innovations of today and tomorrow, deploying new innovations with accuracy and efficiency. Whether it is liquid IOC testing, HRD, whole genome sequencing, or MRD, The scalable nature of our platform and its AI factories enable us to bring bioinformatics breakthroughs from the research lab to the clinical market with relative ease. In this way, we are perfectly positioned to push waves of innovation in healthcare for years to come. However, this ability and the AI that enables it has not been achieved by chance. In Q1, we reached an impressive milestone for our platform. As of March, SOFIA DDM has now analyzed over 2 million genomic patient profiles since inception. This means that the AI-powering SOFIA DDM is uniquely trained on one of the most diverse and globally representative data sets available, learning from a constant flow of real-world data from over 800 institutions in 70 countries worldwide. Technology companies across the space are increasingly recognizing the breadth and diversity of our data set and how our network and AI capabilities are nearly impossible to replicate. In March, I spoke at NVIDIA GTC's conference in San Jose, California, about how Sophia is pioneering the practical use of AI in healthcare. The conference reinforced what we are already seeing in the market. AI is no longer a future promise. but a present force reshaping how we diagnose, treat, and understand disease. It also reinforced that Sophia is a leader in this space. Our platform, AI factories, and global network places us soundly at the center of the future of healthcare. With that, I will now turn the call over to Ross, who will provide a more detailed update on what we're seeing in the market and our business performance to start the year. Thanks, Yorgi.