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Sophia Genetics Q4 Revenues Grow 23 Percent on Strong Data Analysis Sales

NEW YORK – Sophia Genetics said Tuesday before market opening that its 2022 fourth quarter revenues grew 23 percent to $13.4 million from $10.9 million a year earlier, beating analysts' average estimate of $12.9 million.

On a constant currency basis, revenues grew 36 percent, while constant currency revenue growth excluding COVID-19-related revenue was 44 percent.

The Swiss bioinformatics company said that analyses performed on its flagship Data Driven Medicine (DDM) data analysis platform grew 8 percent year over year in Q4 to 71,066 from 65,595, with growth in core analysis volume more than offsetting a decline in COVID-19-related analysis volume. Excluding COVID-19, platform analyses were up 18 percent from Q4 2021.

Sophia's net loss for the fourth quarter narrowed to $14.0 million, or $.22 per share, from $21.4 million, or $.33 per share, in the same period a year earlier. Wall Street analysts, on average, had expected a loss of $.36 per share.

Its R&D spending in the quarter edged up 6 percent to $6.8 million from $6.4 million, while SG&A costs declined 16 percent to $18.1 million from $21.6 million.

For the full year, revenues totaled $47.6 million, up nearly 18 percent from $40.5 million in 2021 and surpassing the consensus estimate of $47.1 million.

Its full-year net loss was $87.4 million, or $1.36 per share, up from $73.7 million, or $1.33 per share, in 2021.

The firm's full-year R&D expenses totaled $35.4 million, 33 percent higher than the $26.6 million recorded in the previous year. Its SG&A costs for the year soared 20 percent to $84.1 million from $70.2 million.

Sophia closed out 2022 with $161.3 million in cash and cash equivalents.

The company also issued its first guidance for FY 2023, saying that it expects revenue growth of no less than 30 percent for the year. That equates to expected 2023 revenues of $59.3 million or more.

In Tuesday morning trading on the Nasdaq, Sophia shares were up more than 4 percent to about $2.69.