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Sophia Genetics Q2 Revenue Grows 72 Percent

NEW YORK – Sophia Genetics said Thursday before market opening that its second quarter revenue grew 72 percent year over year to $10.2 million from $5.9 million a year ago when the company was privately held.

For the quarter ended June 30, net loss more than doubled year over year to $18.4 million, or $.38 per share, from $7.9 million, or $.20 per share. CFO Ross Muken partially attributed the greater loss to expenses related to preparing for the initial public offering the company executed in July.

This is Sophia's first quarterly financial release as a public company.

In a conference call Thursday morning, Muken said that much of the revenue growth came from the addition of new customers and more use of Sophia technology from existing customers as COVID-19 restrictions eased in Q2. The company counted 780 customers at the end of Q2, up from 750 in Q1. Average revenue per platform customer grew to $84,000 from $63,000 a year earlier, according to Muken.

R&D expenses totaled nearly $6.4 million for the quarter, up 61 percent from $3.8 million in Q2 2020. Sophia reported SG&A costs of $15.8 million, a 116 percent increase from the prior year's $7.3 million.

Sophia had $42.5 million in cash and equivalents as of June 30.

The company said that it expects full-year revenues of $39 million for 2021, which would represent 37 percent growth from 2020.

Sophia stock opened at $18.83 in Nasdaq trading Thursday, up 6 percent from Wednesday's close at $17.76.

Sophia, which has twin headquarters in Saint-Sulpice, Switzerland, and Boston, said Thursday that it netted $217 million from the IPO. The firm raised an additional $20 million from a private placement by GE Healthcare in July.

The company also announced an agreement with Agilent Technologies to comarket technology to automate library prep and analytics processes for next-generation sequencing.

CEO and founder Jurgi Camblong said that Sophia users are now analyzing more than 20,000 genomic profiles per month.

Camblong said that the company is making a particular push in the US market and is in the process of tripling its office space in Boston. He also alluded to a partnership with Weill Cornell Medicine that the company has not widely publicized.

In July, Sophia signed a letter of intent with GE Healthcare to codevelop new artificial intelligence-driven analytics and workflow technologies to improve the matching of treatments based on genetic and tumor profiles of cancer patients. Camblong said Thursday that a formal deal should be finalized by the end of the year.

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