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SOPHiA GENETICS (SOPH)
NASDAQ:SOPH
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SOPHiA GENETICS
(NASDAQ:SOPH)
48Neutral
Positive Factors
Customer Expansion
SOPH added 35 new genomics customers to Sophia DDM in Q4, which was solid, partially offset by a ~4% smaller customer churn.
Market Potential
Analyst maintains a positive view on SOPH shares due to the company's differentiated business model, large under-penetrated market, and solid balance sheet.
Revenue Growth
SOPH guided for a return to double-digit revenue growth in 2025 as the company is confident in its ability to turn on customers new to SOPH's DDM platform, particularly for the newer MSK-Access liquid biopsy application.
Volume Growth
SOPH reported a total analysis volume of 91K, which was a 16% increase year-over-year, outperforming expectations.
Negative Factors
Revenue Challenges
The company faced several headwinds in 2024 resulting in below long-term trend growth, notably from a lower biopharma revenue ramp and disruptions in LATAM.
Revenue Per Analysis
Sophia turned in a relatively challenging 2024 as they drove 4% revenue growth while growing their volumes by 11%, which implies a 6-7% decline in revenue per analysis, which declined in part due to headwinds with biopharma customers.
SOPHiA GENETICS (SOPH) vs. S&P 500 (SPY)
Market Cap
$217.87M
Dividend YieldN/A
Average Volume (3M)67.90K
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth4.49%
EPS Growth22.49%
CountryUS
Employees423
SectorHealthcare
Sector Strength72
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)-0.94
Shares Outstanding66,831,070
10 Day Avg. Volume32,052
30 Day Avg. Volume67,900
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.10
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.67Price Target Upside73.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
SOPHiA GENETICS Business Overview & Revenue Model
Company DescriptionSOPHiA GENETICS is a global healthcare technology company specializing in data-driven medicine. The company leverages artificial intelligence and machine learning to provide a cloud-based software platform for clinical genomics, helping healthcare institutions to analyze and interpret genomic data. Their cutting-edge solutions assist in advancing precision medicine by enabling more personalized and effective treatments in oncology, rare diseases, and other critical health areas.
How the Company Makes MoneySOPHiA GENETICS generates revenue primarily through its software-as-a-service (SaaS) model. The company licenses its SOPHiA DDM (Data-Driven Medicine) platform to hospitals, labs, and research institutions, charging subscription fees for access to its genomic analysis capabilities. Additional revenue streams include fees for various add-on services and data analytics solutions provided through the platform. Strategic partnerships with biotech and pharmaceutical companies also contribute to its earnings, as these collaborations often involve joint efforts in research and development, sharing of proprietary data insights, and co-marketing activities.
SOPHiA GENETICS Financial Statement Overview
Summary
SOPHiA GENETICS displays strong revenue growth in the healthcare sector, with a 31.10% increase from 2022 to 2023, but faces significant profitability challenges with sustained net losses and negative cash flows. The balance sheet highlights a concerning trend of increasing leverage and declining equity. While revenue growth is promising, the company's financial health is challenged by operational inefficiencies and cash flow issues.Income Statement
The company shows consistent revenue growth, with a 4.49% increase from 2023 to 2024 and a 31.10% increase from 2022 to 2023. However, the company has been posting significant net losses, with the net profit margin standing at -95.88% in 2024, indicating profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet shows a decreasing trend in stockholders' equity, from $275.4 million in 2021 to $96.49 million in 2024, which is concerning. The debt-to-equity ratio has increased, suggesting rising leverage. However, the equity ratio remains relatively healthy at 62.11% in 2024, indicating that a majority of the company’s assets are financed by equity.55
Neutral
Cash Flow
Free cash flow has been negative, though it improved by 11.76% from 2023 to 2024. The operating cash flow to net income ratio is negative, indicating challenges in converting sales into cash. The company also relies heavily on financing activities, evident from the positive financing cash flow.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 65.17M | 62.37M | 47.56M | 40.45M | 28.40M | Gross Profit |
| 43.94M | 42.91M | 31.25M | 25.22M | 17.69M | EBIT |
| -66.57M | -74.83M | -87.82M | -71.49M | -37.16M | EBITDA |
| -50.76M | -70.70M | -82.67M | -70.84M | -38.76M | Net Income Common Stockholders |
| -62.49M | -78.98M | -87.45M | -73.67M | -39.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 80.23M | 123.25M | 178.61M | 265.32M | 97.34M | Total Assets |
| 155.31M | 206.16M | 243.84M | 320.17M | 132.12M | Total Debt |
| 30.03M | 18.60M | 16.74M | 13.06M | 7.25M | Net Debt |
| -50.20M | -104.65M | -144.56M | -179.90M | -67.38M | Total Liabilities |
| 58.82M | 54.71M | 43.71M | 44.77M | 31.61M | Stockholders Equity |
| 96.49M | 151.44M | 200.13M | 275.40M | 100.51M |
| Cash Flow | Free Cash Flow | |||
| -51.00M | -57.80M | -80.47M | -64.61M | -34.93M | Operating Cash Flow |
| -42.82M | -48.58M | -70.09M | -57.94M | -31.73M | Investing Cash Flow |
| -8.18M | 8.32M | 41.97M | -56.93M | -24.32M | Financing Cash Flow |
| 11.59M | -2.82M | -1.57M | 237.77M | 107.05M |
SOPHiA GENETICS Technical Analysis
Negative
3.26
Price Trends
3.59
Negative
3.46
Negative
3.73
Negative
Market Momentum
-0.06
Negative
48.85
Neutral
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SOPH, the sentiment is Negative. The current price of 3.26 is above the 20-day moving average (MA) of 3.21, below the 50-day MA of 3.59, and below the 200-day MA of 3.73, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 48.85 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SOPH.
SOPHiA GENETICS Risk Analysis
SOPHiA GENETICS disclosed 85 risk factors in its most recent earnings report. SOPHiA GENETICS reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SOPHiA GENETICS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $8.67B | 107.27 | 2.27% | ― | 0.66% | ― | |
53 Neutral | $8.11B | ― | -37.09% | ― | 10.37% | -389.98% | |
51 Neutral | $810.82M | ― | -17.15% | ― | 12.15% | 61.33% | |
49 Neutral | $12.67B | ― | -30.11% | ― | -2.93% | -4.69% | |
49 Neutral | $5.32B | ― | -4584.47% | ― | 31.04% | 16.91% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% | |
48 Neutral | $217.87M | ― | -50.41% | ― | 4.49% | 22.49% |
* Healthcare Sector Average
Performance Comparison
SOPH
SOPHiA GENETICS
3.32
-1.50
-31.12%
EXAS
Exact Sciences
43.29
-27.12
-38.52%
ILMN
Illumina
79.34
-49.64
-38.49%
MYGN
Myriad Genetics
8.87
-12.57
-58.63%
QGEN
Qiagen
40.15
-2.33
-5.48%
GH
Guardant Health
42.60
22.35
110.37%
SOPHiA GENETICS Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: -8.68% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several significant achievements, including strong new customer acquisition and improvements in cost management. However, these positives were offset by challenges in the BioPharma sector, a decline in Latin America, and overall flat revenue growth. The company is optimistic about future growth, particularly in the U.S. and with new applications like MSK-ACCESS and MSK-IMPACT.Highlights
Record Number of New Customers
SOPHiA GENETICS signed 92 new core genomic customers in 2024, including 31 in Q4, a record for the company.
Improvement in Adjusted Operating Loss
The company improved its adjusted operating loss by 20% year-over-year and achieved a 60 basis point increase in adjusted gross margin.
Strong U.S. Market Performance
Clinical revenue in the U.S. grew by 23% in 2024, with analysis volume increasing by 26%.
MSK-ACCESS and MSK-IMPACT Applications Launch
The company launched MSK-ACCESS and MSK-IMPACT applications, with MSK-ACCESS being adopted by 34 customers across 20 countries.
Expansion into Japanese Market
SOPHiA GENETICS expanded into the Japanese market, collaborating with Genesis Healthcare to accelerate genomic testing access.
Lowlights
BioPharma Revenue Decline
Total revenue was impacted by a $4 million decline in BioPharma-related revenue in 2024.
Challenges in Latin America
Latin America experienced a notable decline in performance due to the acquisition of a top customer by another lab.
Flat Revenue Growth
Total revenue for the full year 2024 grew by only 4%, which was below long-term growth expectations.
Cash Burn Increase
Total cash burn for the full year 2024 was $58 million, up 5% from the prior year, largely due to exchange rate differences.
Company Guidance
During the SOPHiA GENETICS Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided guidance for 2025, projecting full-year revenue between $72 million and $76 million, representing a growth rate of 10% to 17%. This growth is primarily expected to be volume-driven, as the company anticipates a flat ASP for the year. The guidance reflects strong momentum from a record 92 new core genomic customers signed in 2024, with a focus on expediting implementation and expanding usage within these accounts. In 2024, SOPHiA GENETICS achieved a revenue of $65.2 million, within the guidance range, with an adjusted gross margin of 72.8%, up by 60 basis points, and an adjusted operating loss improved by 20% year-over-year. The company also highlighted its record analysis volume of 352,000 patients in 2024 and the expansion of its global reach to nearly 800 healthcare institutions across more than 70 countries. Looking forward, SOPHiA GENETICS aims to leverage its three key growth drivers: accelerating customer implementations, capitalizing on U.S. market momentum, and expanding groundbreaking applications like MSK-ACCESS and MSK-IMPACT.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.