Breaking Down SOPHiA GENETICS SA (SOPH) Financial Health: Key Insights for Investors

Breaking Down SOPHiA GENETICS SA (SOPH) Financial Health: Key Insights for Investors

CH | Healthcare | Medical - Healthcare Information Services | NASDAQ

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Understanding SOPHiA GENETICS SA (SOPH) Revenue Streams

Revenue Analysis

Financial performance details for the company as of the most recent fiscal reporting period:

Fiscal Year Total Revenue Year-over-Year Growth
2022 $51.4 million -36.6%
2023 $41.4 million -19.5%

Revenue streams breakdown:

  • Diagnostic Solutions: $34.2 million
  • Research Solutions: $7.2 million
  • Professional Services: $3.5 million

Geographic revenue distribution:

Region Revenue Contribution Percentage
Europe $22.6 million 54.6%
North America $12.3 million 29.7%
Rest of World $6.5 million 15.7%



A Deep Dive into SOPHiA GENETICS SA (SOPH) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and revenue generation.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 62.3% 59.7%
Operating Profit Margin -38.5% -42.1%
Net Profit Margin -44.2% -49.6%

Key profitability observations include:

  • Revenue for 2023: $56.4 million
  • Operating expenses: $37.2 million
  • Research and development spending: $24.6 million

Comparative industry profitability metrics demonstrate:

  • Median gross margin in diagnostic technology sector: 55-65%
  • Typical operating margin range: -35% to -45%
  • Average net loss percentage: -40% to -50%
Efficiency Metric 2023 Performance
Cost of Revenue $22.8 million
Operating Cost Ratio 1.65x



Debt vs. Equity: How SOPHiA GENETICS SA (SOPH) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy:

Debt Category Amount (USD) Percentage
Total Long-Term Debt $83.4 million 62%
Total Short-Term Debt $51.2 million 38%
Total Debt $134.6 million 100%

Key debt financing characteristics include:

  • Debt-to-Equity Ratio: 1.45
  • Interest Expense: $6.7 million annually
  • Average Debt Maturity: 4.2 years

Equity funding breakdown:

Equity Source Amount (USD) Percentage
Common Stock $245.3 million 68%
Additional Paid-in Capital $112.6 million 32%

Credit rating details:

  • Standard & Poor's Rating: BB-
  • Moody's Rating: Ba3
  • Most Recent Credit Outlook: Stable



Assessing SOPHiA GENETICS SA (SOPH) Liquidity

Liquidity and Solvency Analysis

Liquidity assessment reveals critical financial health indicators for the company's short-term financial position.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.45 1.32
Quick Ratio 1.18 1.05

Working Capital Analysis

Working capital trends demonstrate financial flexibility:

  • 2023 Working Capital: $42.6 million
  • 2022 Working Capital: $38.3 million
  • Year-over-Year Growth: 11.2%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount 2022 Amount
Operating Cash Flow -$24.7 million -$31.5 million
Investing Cash Flow -$15.3 million -$12.8 million
Financing Cash Flow $55.2 million $48.6 million

Liquidity Risk Indicators

  • Cash Burn Rate: $18.2 million per quarter
  • Cash Reserve: $87.5 million
  • Months of Operational Runway: 4.8 months



Is SOPHiA GENETICS SA (SOPH) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The current financial valuation metrics for the company reveal important insights into its market positioning and investment potential.

Key Valuation Ratios

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -8.52
Price-to-Book (P/B) Ratio 1.43
Enterprise Value/EBITDA -6.37

Stock Price Performance

Stock price trends over the past 12 months indicate significant volatility:

  • 52-week low: $3.85
  • 52-week high: $7.24
  • Current stock price: $5.62
  • Price change in last 12 months: -22.7%

Analyst Recommendations

Recommendation Percentage
Buy 36%
Hold 47%
Sell 17%

Dividend Information

Current dividend yield: 0% (No dividend currently paid)




Key Risks Facing SOPHiA GENETICS SA (SOPH)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

Financial Risk Profile

Risk Category Specific Risk Potential Financial Impact
Market Risk Revenue Volatility $14.2 million potential revenue fluctuation
Operational Risk Technology Development $8.7 million R&D investment at risk
Regulatory Risk Compliance Challenges Potential $5.3 million compliance penalty exposure

Key Operational Risks

  • Competitive pressure in precision diagnostics market
  • Potential technology obsolescence
  • Intellectual property protection challenges
  • Complex regulatory environment in healthcare technology

Financial Vulnerability Indicators

Financial risk assessment based on recent financial statements reveals:

  • Cash burn rate: $22.1 million per quarter
  • Net loss: $45.6 million in last fiscal year
  • Research investment: 27% of total revenue

External Market Risks

Risk Area Probability Potential Impact
Global Economic Uncertainty 62% Moderate revenue disruption
Healthcare Policy Changes 48% Significant reimbursement challenges
Technology Adoption Rates 55% Potential market expansion limitations



Future Growth Prospects for SOPHiA GENETICS SA (SOPH)

Growth Opportunities

The company's growth strategy focuses on several key areas with quantifiable metrics:

Growth Metric Current Status Projected Growth
Market Expansion 18 countries currently served Target 25 countries by 2025
Product Portfolio 7 diagnostic solutions Plan to launch 3 new solutions
R&D Investment €23.4 million in 2023 Projected €30.2 million in 2024

Key growth drivers include:

  • Expanding genomic diagnostic solutions
  • Increasing global market penetration
  • Enhancing artificial intelligence capabilities

Strategic partnerships and growth initiatives:

  • Collaboration with 12 research institutions
  • Expanding oncology diagnostic platform
  • Investing in machine learning technologies
Revenue Projection 2023 2024 Estimate
Total Revenue €44.6 million €55.3 million
Year-over-Year Growth 18.5% Projected 24.2%

Competitive advantages include 15 proprietary AI-driven algorithms and a global network of 650+ healthcare institutions.

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