Revenues Grew 40% for the Fourth Quarter and 42% for Full Year 2021
2022 Guidance Reaffirmed

BOSTON, United States and LAUSANNE, Switzerland, March 15, 2022 — SOPHiA GENETICS SA (Nasdaq: SOPH), a leader in data-driven medicine, today reported financial results for the fourth quarter and full year ended December 31, 2021.

Recent Highlights

• Revenue for full year 2021 was $40.5 million, representing year-over-year growth of 42%, and revenue for the fourth quarter of 2021 was $10.9 million, representing year-over-year growth of 40%
• Total recurring platform customers grew to 382 as of December 31, 2021 up from 314 as of December 31, 2020, and 375 as of September 31, 2021, while net dollar retention for the year was 142%
• Continued expansion of our product offerings, including:
  • launch of our Homologous Recombination Deficiency (HRD) solution to support detection efforts and collaboration with AstraZeneca to expand access to in-house HRD testing across Europe
  • unveiling of CarePath, a new module on our SOPHiA DDM platform that leverages multimodal data powered by robust machine learning algorithms to help clinicians make more informed treatment decisions for their patients by better predicting disease progression, which we plan to deploy later this year

“I am proud of our solid execution across our organization this quarter, as year-over-year revenue again grew significantly and as we continue to make progress in entering into exciting new relationships and expanding on existing ones,” said Jurgi Camblong, Co-Founder and CEO of SOPHiA GENETICS. “There is much to look forward to at SOPHiA GENETICS, including our exciting progress in HRD, growing penetration in North America expanding opportunities with biopharma partners, and other strategic opportunities. I am immensely proud of what we have accomplished at SOPHiA GENETICS and continue to be even more optimistic about what lies ahead of us. 2021 has been and continues to be a momentous year for our organization, and we remain confident in our objectives and mission going forward.”

Fourth Quarter Financial Results

Total revenue for the fourth quarter of 2021 was $10.9 million compared to $7.8 million for the fourth quarter of 2020, representing growth of 40%.

Platform analysis volumes increased to approximately 66,000 analyses for the fourth quarter of 2021, compared to approximately 44,000 analyses for the fourth quarter of 2020.

Gross profit for the fourth quarter of 2021 was $6.8 million, an increase of 40% compared to a gross profit of $4.9 million in the fourth quarter of 2020. Gross margin was 62% for the fourth quarter of 2021 in line with 62% for the fourth quarter of 2020. Adjusted gross margin was 65% for the fourth quarter of 2021. 

Total operating expenses for the fourth quarter of 2021 were $27.8 million compared to $16.2 million for the fourth quarter of 2020.  

R&D expenses for the fourth quarter of 2021 were $6.4 million, compared to $5.2 million for the fourth quarter of 2020.  

Sales and marketing expenses for the fourth quarter of 2021 were $8.6 million, compared to $4.2 million for the fourth quarter of 2020.  

General and administrative expenses for the fourth quarter of 2021 were $13.0 million dollars, compared to $6.8 million for the fourth quarter of 2020.  

Operating loss for the fourth quarter of 2021 was $21.0 million, compared to $11.3 million in the fourth quarter of 2020. Adjusted operating loss for the fourth quarter of 2021 was $17.6 million, compared to $10.9 million for the fourth quarter of 2020. 

Net loss for the fourth quarter of 2021 was $21.4 million or $0.33 per share, compared to $10.5 million or $0.22 per share for the fourth quarter of 2020. Adjusted net loss for the fourth quarter of 2021 was $17.9 million or $0.28 per share, compared to $9.9 million or $0.21 per share for the fourth quarter of 2020.  

Full Year 2021 Financial Results

Total revenue for full year 2021 was $40.5 million compared to $28.4 million for 2020, representing growth of 42%. The growth in revenue was primarily driven by new customers added to our platform coupled with increased usage rates across our existing customers.

Annualized revenue churn rate has remained at a historical low of approximately 3% of total full year revenue for 2021. Average revenue per platform customer for the full year increased to approximately $92,000 compared to approximately $70,000 for the prior year period. Net dollar retention for the year increased to 142%.

Gross profit for full year 2021 was $25.2 million, an increase of 43% compared to a gross profit of $17.7 million for full year 2020. Gross margin was 62% for full year 2021 in line with 62% for full year 2020. Adjusted gross margin was 64% for full year 2021.

Total operating expenses for full year 2021 were $96.7 million compared to $55.1 million for full year 2020.

R&D expenses for full year 2021 were $26.6 million, compared to $18.6 million for full year 2020.

Sales and marketing expenses for full year 2021 were $28.7 million, compared to $17.4 million for full year 2020.

General and administrative expenses for full year 2021 were $41.5 million dollars, compared to $19.0 million for full year 2020.

Operating loss for full year 2021 was $71.5 million, compared to $37.4 million for full year 2020. Adjusted operating loss for full year 2021 was $61.5 million, compared to $34.2 million for full year 2020. 

Net loss for full year 2021 was $73.7 million or $1.33 per share, compared to $39.3 million or $0.93 per share for full year 2020. Adjusted net loss full year 2021 was $62.3 million or $1.13 per share, compared to $35.7 million or $0.84 per share for full year 2020.

Cash and cash equivalents were approximately $265 million as of December 31, 2021. 

2022 Outlook

SOPHiA GENETICS expects full year revenue for 2022 to be in the range of $51.5 million to $54 million, representing growth of 27% to 33% over full year revenue for 2021.

Webcast and Conference Call Information

SOPHiA GENETICS will host a conference call and live webcast to discuss the fourth quarter and full year 2021 financial results as well as business outlook on Tuesday, March 15, 2022 at 8:30 a.m. Eastern Time / 2:30 p.m. Central European Time. The call will be webcast live on the SOPHiA GENETICS Investor Relations website. Additionally, an audio replay of the conference call and webcast will be available on the website after its completion.

About SOPHiA GENETICS

SOPHiA GENETICS (Nasdaq: SOPH) is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™ Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. The SOPHiA DDM™ Platform and related solutions, products and services are currently used by more than 790 hospital, laboratory, and biopharma institutions globally. For more information, visit SOPHiAGENETICS.COM, or connect on Twitter, LinkedIn and Instagram. Where others see data, we see answers.

Non-IFRS Financial Measures

To provide investors with additional information regarding our financial results, we have disclosed here and elsewhere in this earnings release the following non-IFRS measures:

• Adjusted cost of revenue, which we calculate as cost of revenue adjusted to exclude amortization of capitalized research and development expenses, expenses associated with the write-off of custom inventory related to the cancellation of a contract due to the acquisition of the customer, and expenses associated with the write-off of inventory that were damaged as a result of a refrigeration equipment malfunction; 
• Adjusted gross profit, which we calculate as revenue minus adjusted cost of revenue;
• Adjusted gross profit margin, which we calculated as adjusted gross profit as a percentage of revenue;
• Adjusted operating loss, which we calculate as operating loss adjusted to exclude those adjustments made to calculate adjusted cost of revenue, amortization of intangible assets, share-based compensation expense, non-cash portion of pensions expense paid in excess of actual contributions to match the actuarial expense, and non-recurring expenses related to the IPO that were not capitalized;
• Adjusted finance income (expense), net, which we calculate as finance income (expense), net adjusted to exclude changes in the fair valuation of the derivative tied to the success fee we paid to TriplePoint Capital LLC upon completion of our initial public offering;
• Adjusted loss for the period, which we calculate as loss for the period adjusted to exclude those adjustments made to calculate adjusted cost of revenue, adjusted operating loss and adjusted finance income (expense); and
• Adjusted loss per share, which we calculate as adjusted net loss divided by the weighted-average number of shares.

These non-IFRS measures are key measures used by our management and board of directors to evaluate our operating performance and generate future operating plans. The exclusion of certain expenses facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, we believe that these non-IFRS measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

These non-IFRS measures have limitations as financial measures, and you should not consider them in isolation or as a substitute for analysis of our results as reported under IFRS. Some of these limitations are:

• These non-IFRS measures exclude the impact of amortization of capitalized research and development expenses and intangible assets. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures;
• These non-IFRS measures exclude the impact of expenses associated with the write-off of custom inventory related to the cancellation of a customer contract due to the acquisition of the customer. Although we do not expect custom inventory write-offs to be a recurring event, such write-offs may occur from time to time;
• These non-IFRS measures exclude the impact of expenses associated with the write-off of inventory that were damaged as a result of a refrigeration equipment malfunction. Although we do not expect damaged inventory write-offs to be a recurring event, such write-offs may occur from time to time;
• These non-IFRS measures exclude the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy;
• These non-IFRS measures exclude the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in our business; 
• These non-IFRS measures exclude the impact of non-recurring expenses related to our IPO, which are cash expenditures, and we expect to incur financing expenses from time to time;
• These non-IFRS measures exclude the impact of changes in fair value of the derivative associated with the fee paid to TriplePoint Capital LLC in connection with the completion of our IPO; and
• Other companies, including companies in our industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider these non-IFRS measures alongside other financial performance measures, including various cash flow metrics, net income and our other IFRS results.

The tables below provide the reconciliation of the most comparable IFRS measures to the non-IFRS measures for the periods presented.

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy, products and technology, partnerships and collaborations, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in our filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this document speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in our expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Investor Contact:
Jennifer Pottage
Head of Investor Relations
[email protected]

Media Contact:
Eliza Bamonti
Director of Public Relations
[email protected]

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Notes to the Reconciliation of IFRS to Adjusted Financial Measures Tables

1. Amortization of capitalized research and development expenses consists of software development costs amortized using the straight-line method over an estimated life of five years. These expenses do not have a cash impact but remain a recurring expense generated over the course of our research and development initiatives.
2. Custom inventory write-off consists of expenses associated with the write-off of inventory related to the cancellation of a customer contract due to the acquisition of the customer. The inventory was specifically procured to satisfy a contract and could not be liquidated, sold, or otherwise marketed to other customers due to the nature of the contract. Given the unusual nature of the cancellation, and overall scarcity of contract cancellations, these expenses are not expected to be a recurring event in our business.
3. Damaged inventory write-off consists of expenses associated with the write-off of inventory that were damaged as a result of a refrigeration equipment malfunction. These expenses are not expected to be a recurring event in our business, but we expect such expenses could still be incurred from time to time.
4. Amortization of intangible assets consists of costs related to intangible assets amortized over the course of their useful lives. These expenses do not have a cash impact, but we could continue to generate such expenses through future capital investments.
5. Share-based compensation expense represents the cost of equity awards issued to our directors, officers, and employees. The fair value of awards is computed at the time the award is granted and is recognized over the vesting period of the award by a charge to the income statement and a corresponding increase in other reserves within equity. These expenses do not have a cash impact but remain a recurring expense for our business and represent an important part of our overall compensation strategy.
6. Non-cash pension expense consists of the amount recognized in excess of actual contributions made to our defined pension plans to match actuarial expenses calculated for IFRS purposes. The difference represents a non-cash expense but remain a recurring expense for our business as we continue to make contributions to our plans for the foreseeable future.
7. Non-recurring IPO-related expenses represent expenses incurred for our initial public offering that were not capitalized and are not expected to be recurring during the ordinary course of our business.
8. Change in fair value of derivative consists of changes in the fair valuation of the derivative related to the success fee owed to TriplePoint Capital LLC upon the completion of our initial public offering. We paid the fee in September 2021 and, as a result, we ceased to incur expenses resulting from the change in fair value of such derivative.   

Study leverages deep learning-enabled analysis of the aggregation of real-world multimodal data to validate predictive signatures associated with response to immunotherapy and prognosis of patients with stage IV non-small cell lung cancer

Since study launch, 12 sites across 5 countries have already signed up for participation

BOSTON and LAUSANNE, Switzerland, January 11, 2021 — SOPHiA GENETICS SA (Nasdaq: SOPH), the creator of a global data pooling and knowledge sharing platform that advances data-driven medicine, announced today strong traction in the launch phase of their DEEP-Lung-IV clinical study (NCT04994795). Since officially launching last month, 12 sites across 5 countries have already signed up for participation in the study.

Despite the clinical promise of immunotherapy, significant challenges remain as the majority of non-small cell lung cancer (NSCLC) patients fail to respond to immune checkpoint inhibitors. Today, PD-L1 is the only standard predictive biomarker for immune checkpoint inhibitor efficacy, however it remains a very suboptimal biomarker with several well-characterized issues limiting its clinical utility. Thus, there is an urgent need to discover new predictive biomarkers of response to immunotherapy. SOPHiA GENETICS’ DEEP-Lung-IV clinical study leverages deep learning-enabled analysis of the aggregation of real-world multimodal data (including genomics, radiomics and clinical data) to identify and validate predictive signatures associated with response to immunotherapy and prognosis of patients with metastatic (stage IV) NSCLC. Such signatures could help identify patients that are likely to benefit from immunotherapy versus those that are not, as well as stratify patients according to risk, helping clinicians make more informed therapeutic decisions for their patients and supporting biopharma to ensure the right patients are selected for clinical trials.

The 12 initial sites that have signed up for participation in the study include Carbone Comprehensive Cancer Center at University of Wisconsin and Holden Comprehensive Cancer Center at University of Iowa Health Care in the US, Assistance Publique-Hôpitaux de Paris and Hospices Civils de Lyon in France, Leipzig University in Germany, Sunnybrook Health Sciences Center in Toronto, Canada, and Shaare Zedek Medical Center in Jerusalem, Israel, among others. Together, these sites are projected to contribute over 2,000 of the 4,000 total patients targeted for enrollment over the course of the study. An additional 10 sites are lined up for onboarding in the first quarter of 2022, with more expected candidates to follow.

“We are very pleased with the strong traction since launching our DEEP-Lung-IV multimodal clinical study. The positive reception from the participating sites highlights the high interest in unlocking the predictive potential of multimodal health data sets through large-scale real-world studies” said Dr. Jurgi Camblong, Co-founder and Chief Executive Officer at SOPHiA GENETICS. “We very much look forward to further accelerating this momentum in the first months of 2022.”

To learn more about the DEEP-Lung-IV clinical study, visit https://clinicaltrials.gov/ct2/show/NCT04994795.

About SOPHiA GENETICS

SOPHiA GENETICS (Nasdaq: SOPH) is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™ Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. The SOPHiA DDM™ Platform and related solutions, products and services are currently used by more than 790 hospital, laboratory, and biopharma institutions globally. For more information, visit SOPHiAGENETICS.COM, or connect on Twitter, LinkedIn and Instagram. Where others see data, we see answers.

SOPHiA GENETICS Forward-Looking Statements:

This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy, products and technology, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in our filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this document speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in our expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Media Contact:
Eliza Bamonti
[email protected]

BOSTON (MA), United States and LAUSANNE, Switzerland, Dec 29, 2021 — SOPHiA GENETICS SA (Nasdaq: SOPH), announced today Chief Executive Officer and Co-Founder Dr. Jurgi Camblong and Chief Financial Officer Ross Muken, will participate in the upcoming 40^th Annual J.P. Morgan Healthcare Conference. The virtual presentation will begin at 8:15 a.m. ET/2:15 p.m. CET on Tuesday, January 11, 2022 and will be available live and archived on SOPHiAGENETICS.COM, in the Investor Relations section.

About SOPHiA GENETICS

SOPHiA GENETICS (Nasdaq: SOPH) is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™ Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. The SOPHiA DDM™ Platform and related solutions, products and services are currently used by more than 780 hospital, laboratory, and biopharma institutions globally. For more information, visit SOPHiAGENETICS.COM, or connect on Twitter, LinkedIn and Instagram. Where others see data, we see answers.

Investor Contact:
Jennifer Pottage
Head of Investor Relations
[email protected]

Media Contact:

Eliza Bamonti
Director of Public Relations
[email protected]

Study to leverage deep learning-enabled analysis of the aggregation of real-world multimodal data to validate predictive signatures associated with response to immunotherapy and prognosis of patients with stage IV non-small cell lung cancer

Large-scale, multicentric real-world study aims to enroll 4,000 patients from approximately 30 sites across North America, Europe, and Latin America

BOSTON and LAUSANNE, Switzerland, December 1, 2021 — SOPHiA GENETICS SA (Nasdaq: SOPH), the creator of a global data pooling and knowledge sharing platform that advances data-driven medicine, announced today the launch of their DEEP-Lung-IV clinical study (NCT04994795). The study leverages deep learning-enabled analysis of the aggregation of multimodal clinical, biological, genomic and radiomics data to identify and validate predictive signatures associated with response to immunotherapy and prognosis of patients with metastatic non-small cell lung cancer (NSCLC).

Over the last decade, immunotherapy has revolutionized the treatment landscape for patients diagnosed with stage IV NSCLC and has become the standard of care in the frontline setting for patients without oncogene-activating mutations. Despite the clinical promise of immunotherapy, significant challenges remain as the majority of NSCLC patients fail to respond to immune checkpoint inhibitors. Today, PD-L1 is the only standard predictive biomarker for immune checkpoint inhibitor efficacy.  However, it remains a very suboptimal biomarker with several well-characterized issues limiting its clinical utility. Thus, an urgent need exists to discover new predictive biomarkers of response to immunotherapy.

SOPHiA GENETICS’ DEEP-Lung-IV clinical study aims to predict immunotherapy treatment response at first evaluation at the individual patient level using data across multiple modalities including genomics, radiomics, clinical and biological data. The study also aims to validate an algorithm that will allow the prediction of outcomes at the individual patient such as progression-free survival (PFS) and overall survival (OS). This predictive model will help identify patients that are likely to benefit from immunotherapy versus those that are not, as well as stratify patients according to risk, helping clinicians make more informed therapeutic decisions for their patients and supporting biopharma to ensure the right patients are selected for clinical trials.

“We are very excited about the opportunity to validate multimodal predictive models through such an innovative large-scale, multicentric, real-world clinical study. We aim to generate entirely novel actionable insights to improve clinical outcomes for patients with stage IV NSCLC treated with immunotherapy and develop next-generation patient stratification strategies to support the selection of the right patients for clinical trials” said Dr. Philippe Menu, Chief Medical Officer at SOPHiA GENETICS. “The analytical power of the multimodal SOPHiA GENETICS platform applied to this important clinical question illustrates the potential benefit for patients in embracing a future of Data-Driven Medicine.”

To learn more about the DEEP-Lung-IV clinical study, please visit https://clinicaltrials.gov/ct2/show/NCT04994795.

About SOPHiA GENETICS:

SOPHiA GENETICS is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™ Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. The SOPHiA DDM™ Platform and related solutions, products and services are currently used by more than 780 hospital, laboratory, and biopharma institutions globally.

More info: SOPHiAGENETICS.COM; follow @SOPHiAGENETICS on Twitter.

SOPHiA GENETICS products are for Research Use Only and not for use in diagnostic procedures, unless specified otherwise. The information included in this press release is about products that may or may not be available in different countries and, if applicable, may or may not have received approval or market clearance by a governmental regulatory body for different indications for use. Please contact [email protected] to obtain the appropriate product information for your country of residence.

SOPHiA GENETICS Forward-Looking Statements:

This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy, products and technology, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in our filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this document speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in our expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Media Contact:
Eliza Bamonti

[email protected]

Symposium to address how new AI-powered analytic and workflow solutions for clinical and biopharma markets are advancing data-driven medicine

Symposium encapsulates SOPHiA GENETICS and GE Healthcare alliance to provide joint solutions and multimodal analytics to healthcare providers and biopharma companies

CHICAGO, November 29, 2021 — SOPHiA GENETICS SA (Nasdaq: SOPH), the creator of a global data pooling and knowledge sharing platform that advances data-driven medicine, announced today they will be hosting a joint symposium with GE Healthcare titled “Advancing data-driven medicine: unlocking the potential of multimodal digital health data sets by combining longitudinal radiomics and genomics data with AI-powered analytics,” during the Radiological Society of North America 2021 Annual Meeting at 9:30am CT on Wednesday, December 1. The symposium will reflect on recent advances in multimodal clinical research and the role of the radiologist in this healthcare revolution.

This symposium follows the recent announcement of the signed Master Alliance Agreement and July 2021 letter of intent pursuant to which SOPHiA GENETICS and GE Healthcare will be collaborating on opportunities in the healthcare market, including various initiatives and projects in the fields of digital oncology and radiogenomic analysis. The companies will initially work together on the creation of infrastructure to integrate data between GE’s Edison platform and the SOPHiA DDM™ platform, as well as co-marketing and pilot site recruitment across oncology and radiogenomics.

“We are thrilled about our alliance with GE Healthcare to further accelerate the adoption of our platform worldwide,” said Jurgi Camblong, co-founder and CEO, SOPHiA GENETICS. “This alliance is a significant catalyst for SOPHiA GENETICS and will help us fast-track innovation, more quickly increase the size and scale of our network, and offer a greater expansion of capabilities to help clinicians and researchers ensure cancer patients worldwide will be able to receive equal access to better diagnosis and treatments.”

“This collaboration with SOPHiA GENETICS is a further step towards GE Healthcare’s vision of making precision health - more efficient and personalized care -  a reality,” said Jan Makela, President & CEO at GE Healthcare Imaging. “Integrating genomics data and artificial intelligence into oncology workflow solutions, beginning with the integration of data from GE’s Edison platform and the SOPHiA DDM platform will further our goal to help clinicians and researchers break down the data silos across instruments.”

About SOPHiA GENETICS:

SOPHiA GENETICS is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™ Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. The SOPHiA DDM™ Platform and related solutions, products and services are currently used by more than 780 hospital, laboratory, and biopharma institutions globally.

More info: SOPHiAGENETICS.COM; follow @SOPHiAGENETICS on Twitter.

SOPHiA GENETICS products are for Research Use Only and not for use in diagnostic procedures, unless specified otherwise. The information included in this press release is about products that may or may not be available in different countries and, if applicable, may or may not have received approval or market clearance by a governmental regulatory body for different indications for use. Please contact [email protected] to obtain the appropriate product information for your country of residence.

SOPHiA GENETICS Forward-Looking Statements:

This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy, products and technology, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in our filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this document speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in our expectations or any change in events, conditions, or circumstances on which such statements are based, unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Media Contact:
Eliza Bamonti

[email protected]

Third quarter year-over-year revenue growth of 45%; executed Master Alliance Agreement with GE Healthcare

BOSTON and LAUSANNE, Switzerland, November 10, 2021 — SOPHiA GENETICS SA (Nasdaq: SOPH), today reported financial results for the third quarter ended September 30, 2021.

Recent Highlights

• Revenue was $10.4 million for the third quarter, representing a 45% increase over the corresponding period of 2020
• Following a previous letter of intent with GE Healthcare, executed a final Master Alliance Agreement under which we will be working together with GE on a variety of oncology opportunities in the healthcare market and will collaborate on different initiatives and projects
• Total recurring platform customers grew from 367 in the second quarter of this year to 375 customers in the third quarter. Net dollar retention for the rolling twelve-month period improved to 137%, indicating that we are growing our revenue generated from existing customers net of churn
• Continued to see momentum in customer adoption with both clinical customers, such as City of Hope and Institut Gustave Roussy, and biopharma customers, such as AstraZeneca

“I am proud of our solid execution across our organization this quarter, as year-over-year revenue again grew significantly and as we continue to make progress in entering into exciting new relationships and expanding on existing ones,” said Jurgi Camblong, Co-Founder and CEO of SOPHiA GENETICS. “There is much to look forward to at SOPHiA, including our exciting progress in HRD, growing penetration in North America, expanding opportunities with biopharma partners, and potential inorganic growth opportunities. I am immensely proud of what we have accomplished at SOPHiA and continue to be even more optimistic about what lies ahead of us. 2021 has been and continues to be a momentous year for our organization, and we remain confident in our objectives and mission going forward.”

Third Quarter 2021 Financial Results

Total revenue for the third quarter of 2021 was $10.4 million compared to $7.2 million for the third quarter of 2020, representing a 45% increase. The increase in revenue for the third quarter 2021 was primarily driven by new customers onboarded onto our platform and improved usage rates across our existing customers.

Gross profit in the third quarter of 2021 was $6.5 million, an increase of 53% compared to a gross profit of $4.3 million in the third quarter of 2020. Gross profit margin was 63% in the third quarter of 2021 as compared to 60% in the third quarter of 2020. Adjusted gross margin was 65% in the third quarter of 2021 after adjusting for the capitalization of our software development expenses. Gross margins improved year-over-year as a result of continued improvements in managing computational and storage-related costs, while adjusted gross margins were in line with the same period last year.

Total operating expenses for the third quarter of 2021 were $27.0 million compared to $13.7 million in the third quarter of 2020.

R&D expenses for the third quarter of 2021 were $7.7 million, compared to $5.0 million in the third quarter of 2020. This was primarily due to an increase in employee-related expenses for R&D initiatives related to the development of new products and applications.

Sales and marketing expenses for the third quarter of 2021 were $7.7 million, compared to $4.1 million in the third quarter of 2020. The increase was primarily due to an increase in headcount related expenses, commissions and sales related costs and higher variable expenses, including marketing and travel-related expenses, as COVID-19 restrictions continue to be lifted.

General and administrative expenses for the third quarter of 2021 were $11.7 million, compared to $4.6 million in the third quarter of 2020. This increase was primarily driven by the continued scale-up of the organization, the development of quality-related initiatives to support a potential expansion of the business into more regulated markets, increased share-based compensation expenses related to the IPO, and IPO and new public company-related expenses.

Operating loss in the third quarter of 2021 was $20.5 million, compared to $9.4 million in the third quarter of 2020.

Net loss in the third quarter of 2021 was $21.2 million or 35 cents per share, compared to $10.5 million or 24 cents per share in the third quarter of 2020.

Adjusted net loss in the third quarter of 2021 was $18.0 million or 30 cents per share, compared to $9.0 million or 20 cents per share in the third quarter of 2020.

Cash and cash equivalents and term deposits and short-term investments were $280.6 million as of September 30, 2021.

2021 Outlook

SOPHiA Genetics now expects full year revenue for 2021 to be greater than $40 million, representing growth of at least 41% over the prior year.

Agreement with GE Healthcare

In July, SOPHiA entered into a letter of intent with GE Healthcare, and we have now executed a final Master Alliance Agreement. Under this agreement, we will be working together with GE on a variety of opportunities in the healthcare market and will collaborate on different initiatives and projects in the fields of digital oncology and radiogenomic analysis. The first projects SOPHiA and GE Healthcare are working on together relate to the creation of infrastructure to integrate data between GE’s Edison platform and the SOPHiA DDM platform, as well as a commercial collaboration focused on co-marketing and pilot site recruitment in the digital oncology and radiogenomic analysis space.

We also intend to work together to combine SOPHiA’s and GE’s existing capabilities to jointly develop and provide multimodal analytics.

Webcast and Conference Call Information

SOPHiA GENETICS will host a conference call to discuss the third quarter 2021 financial results, business developments and outlook before market open on Wednesday, November 10, 2021 at 8:30 AM Eastern Time / 2:30 PM Central European Time. Live audio of the webcast will be available on the “Investors” section of the company website at: ir.sophiagenetics.com.

About SOPHiA GENETICS

SOPHiA GENETICS is a healthcare technology company dedicated to establishing the practice of data-driven medicine as the standard of care and for life sciences research. It is the creator of the SOPHiA DDM™ Platform, a cloud-based SaaS platform capable of analyzing data and generating insights from complex multimodal data sets and different diagnostic modalities. The SOPHiA DDM™ Platform and related solutions, products and services are currently used by more than 780 hospital, laboratory, and biopharma institutions globally.

More info: SOPHiAGENETICS.COM; follow @SOPHiAGENETICS on Twitter.

Non-IFRS Financial Measures

To provide investors with additional information regarding our financial results, we have disclosed here and elsewhere in this earnings release the following non-IFRS measures:

• Adjusted cost of revenue, which we calculate as cost of revenue adjusted to exclude amortization of capitalized research and development expenses and expenses associated with the write-off of custom inventory related to the cancellation of a contract due to the acquisition of the customer; 
• Adjusted gross profit, which we calculate as revenue minus adjusted cost of revenue;
• Adjusted gross profit margin, which we calculated as adjusted gross profit as a percentage of revenue;
• Adjusted operating loss, which we calculate as operating loss adjusted to exclude those adjustments made to calculate adjusted cost of revenue, amortization of intangible assets, share-based compensation expense, non-cash portion of pensions expense paid in excess of actual contributions to match the actuarial expense, and non-recurring expenses related to the IPO that were not capitalized;
• Adjusted finance income (expense), net, which we calculate as finance income (expense), net adjusted to exclude changes in the fair valuation of the derivative tied to the success fee we paid to TriplePoint Capital LLC upon completion of our initial public offering;
• Adjusted loss for the period, which we calculate as loss for the period adjusted to exclude those adjustments made to calculate adjusted cost of revenue, adjusted operating loss and adjusted finance income (expense); and
• Adjusted loss per share, which we calculate as adjusted net loss divided by the weighted-average number of shares.

These non-IFRS measures are key measures used by our management and board of directors to evaluate our operating performance and generate future operating plans. The exclusion of certain expenses facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, we believe that these non-IFRS measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.

These non-IFRS measures have limitations as financial measures, and you should not consider them in isolation or as a substitute for analysis of our results as reported under IFRS. Some of these limitations are:

• These non-IFRS measures exclude the impact of amortization of capitalized research and development expenses and intangible assets. Although amortization is a non-cash charge, the assets being amortized may need to be replaced in the future and these non-IFRS measures do not reflect capital expenditure requirements for such replacements or for new capital expenditures;
• These non-IFRS measures exclude the impact of expenses associated with the write-off of custom inventory related to the cancellation of a customer contract due to the acquisition of the customer. Although we do not expect custom inventory write-offs to be a recurring event, such write-offs may occur from time to time;
• These non-IFRS measures exclude the impact of share-based compensation expenses. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy;
• These non-IFRS measures exclude the impact of the non-cash portion of pensions paid in excess of actual contributions to match actuarial expenses. Pension expenses have been, and will continue to be for the foreseeable future, a recurring expense in our business; 
• These non-IFRS measures exclude the impact of non-recurring expenses related to our IPO, which are cash expenditures, and we expect to incur financing expenses from time to time;
• These non-IFRS measures exclude the impact of changes in fair value of the derivative associated with the fee paid to TriplePoint Capital LLC in connection with the completion of our IPO; and
• Other companies, including companies in our industry, may calculate these non-IFRS measures differently, which reduces their usefulness as comparative measures.

Because of these limitations, you should consider these non-IFRS measures alongside other financial performance measures, including various cash flow metrics, net income and our other IFRS results.

The tables below provide the reconciliation of the most comparable IFRS measures to the non-IFRS measures for the periods presented.

Forward-Looking Statements

This press release contains statements that constitute forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy, products and technology, partnerships and collaborations, as well as plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including those described in our filings with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Such forward-looking statements contained in this document speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to update these forward-looking statements contained in this press release to reflect any change in our expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.

Media Contact:
Eliza Bamonti

[email protected]

Investor Contact:

[email protected]

SOPHiA GENETICS SA
Interim Condensed Consolidated Statement of Cash Flows
(Amounts in USD thousands)
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SOPHiA GENETICS SA
Reconciliation of IFRS to Adjusted Cost of Revenue
(Amounts in USD thousands)
(Unaudited)

Reconciliation of IFRS to Adjusted Gross Profit and Gross Profit Margin
(Amounts in USD thousands, except percentages)
(Unaudited)

SOPHiA GENETICS SA

Reconciliation of IFRS to Adjusted Operating Loss
(Amounts in USD thousands)
(Unaudited)

Reconciliation of IFRS to Adjusted Income (Expense), Net
(Amounts in USD thousands)
(Unaudited)

SOPHiA GENETICS SA

Reconciliation of IFRS to Adjusted Loss for the Period and Loss per Share
(Amounts in USD thousands, except per share and share data)
(Unaudited)

Notes to the Reconciliation of IFRS to Adjusted Financial Measures Tables

SOPHiA GENETICS products are for Research Use Only and not for use in diagnostic procedures unless specified otherwise.

SOPHiA DDM™ Dx Hereditary Cancer Solution, SOPHiA DDM™ Dx RNAtarget Oncology Solution and SOPHiA DDM™ Dx Homologous Recombination Deficiency Solution are available as CE-IVD products for In Vitro Diagnostic Use in the European Economic Area (EEA), the United Kingdom and Switzerland. SOPHiA DDM™ Dx Myeloid Solution and SOPHiA DDM™ Dx Solid Tumor Solution are available as CE-IVD products for In Vitro Diagnostic Use in the EEA, the United Kingdom, Switzerland, and Israel. Information about products that may or may not be available in different countries and if applicable, may or may not have received approval or market clearance by a governmental regulatory body for different indications for use. Please contact us at [email protected] to obtain the appropriate product information for your country of residence.

All third-party trademarks listed by SOPHiA GENETICS remain the property of their respective owners. Unless specifically identified as such, SOPHiA GENETICS’ use of third-party trademarks does not indicate any relationship, sponsorship, or endorsement between SOPHiA GENETICS and the owners of these trademarks. Any references by SOPHiA GENETICS to third-party trademarks is to identify the corresponding third-party goods and/or services and shall be considered nominative fair use under the trademark law.

SOPHiA DDM™ Overview

SOPHiA DDM™ for Genomics

SOPHiA DDM™ for Radiomics

SOPHiA DDM™ for Multimodal

Professional Services

SOPHiA DDM™ Overview

Unlocking Insights, Transforming Healthcare

Learn About SOPHiA DDM™ 

SOPHiA DDM™ for Genomics

Oncology 

• Solid Tumors
• Hereditary Cancers
• Blood Cancers
• Liquid Biopsy

Rare and Inherited Disorders

• Rare Disorders
• Inherited Disorders

Add-On Modules

• Alamut™ Visual Plus
• OncoPortal™

SOPHiA DDM™ for Radiomics

Unlock entirely novel insights from your radiology images

Learn About SOPHiA DDM™ for Radiomics 

SOPHiA DDM™ for Multimodal

Explore new frontiers in biology and disease through novel insights

Learn About SOPHiA DDM™ for Multimodal

Professional Services

Accelerate breakthroughs with our tailored enablement services

Learn About our Professional Services

Providers

• Oncologists
• Radiologists
• Pathologists
• Geneticists
• Lab Technicians
• Bioinformaticians

BioPharma

• Diagnostics
• Data Analytics

Patients

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