SOPHiA GENETICS SA (NASDAQ:SOPH) Q4 2023 Earnings Call Transcript

Conor McNamara: Hey, Ross. Thanks for taking the question. Just a quick follow-up on the new sequencing technology and how it impacts your customers that you talked about. Did your guidance — are you anticipating actually potentially losing customers as they switch vendors? Or is it more a function of as they implement and validate or just evaluate a new vendor that it slows down their overall volume?

Ross Muken: Yes, it’s really the second, Conor. I think, in general, and again, I want to be very clear, this is not something we’re actually seeing in practice. It’s more of an assumption as we’re seeing in our pipeline as well as in our bookings, a different sequencer mix than we did in the past. And so, our assumption is that the delivery of those sequencers, the installation of those sequencers and thus the onboarding of our platform may just take longer. And again, it’s not clear to us if that will be the case. We’ll obviously track it and report over the balance of the year. But given our lack of historical context with many of these businesses, right, again, you well know the market had been dominated by one or two players for the better part of the last decade.

And so, again, I’m not suggesting a significant shift, but I think at the margin, we are seeing, in the clinical market, more players pop up and we’re seeing more requests for new players in many different geographical markets. And so, we just want to be prepared in the case that there’s some change in the typical cadence of onboarding for us. And so, again, no loss. If anything longer term, this expands the market overall. And we think for us, the diversity plays into our strengths as a business.

Conor McNamara: Great. Thanks for clearing that up. That’s all I have, and thanks for the question.

Ross Muken: Thank you, Conor.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Ross Muken for any closing remarks.

Ross Muken: Thank you everyone for joining us. We are pleased to have an incredibly strong end to the year. I’m proud of all of the SOPHiAns that contributed to it. And we look forward to having Jurgi back with us here on the call very shortly. So, thank you everyone, and I send our best wishes to Jurgi, and we’ll talk to you all soon at conferences next week.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.