Jurgi Camblong; Co-Founder, CEO & Director; SOPHiA GENETICS SA
Ross Jordan Muken; Senior VP & CFO; SOPHiA GENETICS SA
Mark Anthony Massaro; MD & Life Science & Diagnostic Tools Analyst; BTIG, LLC, Research Division
Richard Myron Hilliker; Research Analyst; Crédit Suisse AG, Research Division
Tejas Rajeev Savant; Equity Analyst; Morgan Stanley, Research Division
Good morning, and welcome to SOPHiA GENETICS’ Fourth Quarter Fiscal 2022 Earnings Call. (Operator Instructions)I would now like to turn the conference over to Katherine Belong, Head of Investor Relations at Sofia Genetics. Please go ahead.
Good morning, and thank you for joining us on SOPHiA GENETICS Q4 Fiscal 2022 Earnings Call. My name is Katherine Bailon, and I am Head of Investor Relations at SOPHiA GENETICS. Joining me today are Dr. Jurgi Camblong, our Co-Founder and Chief Executive Officer; and Ross Muken, our Chief Financial Officer. Before we get started, I’d like to remind you that the management team will make statements during this call that are forward-looking within the meaning of U.S. federal securities laws. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated. Additional information regarding these risks and uncertainties appear in the section entitled Cautionary Statement — regarding — forward-looking statements in Form 20-F on file with the SEC. Except as required by law, SOPHiA GENETICS disclaims any intention or obligation to update or revise any financial or product pipeline projections or other forward-looking statements, whether because of new information, future events or otherwise.
This conference call contains time-sensitive information and is accurate only as of its broadcast, March 7, 2023. This presentation includes non-IFRS financial measures. These measures are calculated by management and do not have any standardized meaning under IFRS. These non-IFRS measures supplement IFRS measures, which should not be viewed as substitutes for IFRS measures. We have included a reconciliation of IFRS measures to non-IFRS measures in our press release issued this morning, which is available on our website. Please note, both the replay of this call and the earnings release will be available on our website in the Investors section. And with that, I’ll now turn it over to Jurgi.
Thank you, Katherine, and good morning, everyone. 22 was a tremendous year for SOPHiA GENETICS. And I am pleased to share with you today the momentum that we build in the period, including a strong finish to our fourth quarter. On today’s call, I will review our 2022 year as well and the organic growth acceleration we experienced throughout the year and into Q4. Next, I will share my thoughts about the key deliverables we executed upon as a company in 2022 and tier focus areas back to a discussion with you about fiscal discipline at SOPHiA GENETICS as demonstrated by our third consecutive quarter of improved operating leverage.
Then I will touch on our partnership that fuel our ecosystem and wrap up with our 6 strategic pillars, guiding Sofia’s long-term trajectory towards being the preferred cloud native software analytics platform for health care participants globally. I will then turn it over to our Chief Financial Officer, Ross Muken, who will provide a more detailed look into financial results for the period and our outlook for 2023, and we will end by taking your questions. Please join me in congratulating Ross who, in addition to being our ever capable CFO is being promoted as of March 15, 2023, to Chief Operating Officer. Congratulations to us.
Let me start by reminding you that when SOPHiA GENETICS went public, investors had on expectation and 3 questions for us as a company. The major expectation was for SOPHiA to deliver on its top line growth commitment. While the 3 questions were, one, while successful so far in Europe, is Sofia genetics decentralized model compatible with the U.S. market. Two, wood SOPHiA GENETICS be able to demonstrate that their anonymize genomic profile data collected in the course of their clinical business would have value beyond clinical, especially to biopharma. Three, good SOPHiA GENETICS show that their AI and machine learning algorithms would be applicable across multiple modalities beyond just genomics.
I would suggest today that given the momentum we have demonstrated this year, we have not only delivered on our growth commitments but can also confidently answer yes to all 3 questions, all while having to overcome the unexpected challenges associated with both a volatile macro environment and a constrained capital marketplace. So, we at SOPHiA have taken on these lofty expectations and challenges in stride and are committed both on finding efficiencies and to achieving our growth in a sustainable fashion without incurring significant incremental costs. Let me start by acknowledging the strongest evidence of our success.
In 2022, we delivered robust full year revenue growth of 39% on a constant currency basis after adjusting for COVID-related headwinds. I am incredibly proud of this achievement. Full year 2022 constant currency revenue growth was 32%, in line with our long-term constant currency growth guidance of 30% to 35%. I should remind you that we introduced our COVID-19 solution in Q4 2020 in response to the global pandemic impacting our customers. Given this, COVID analysis had a reasonable impact on our 2021 results as some of our customers shifted efforts within their laboratories to address global testing initiatives, which we were able to help accommodate, thereby demonstrating the versatility of our platform. Only in 2022, we decided to shift our focus back towards our core of oncology and rare disease applications. So, we are quite pleased that adjusting for the impact of COVID-19 related headwinds in 2022, our growth in 2022 was, as I stated, a robust 39%.
Why are we having such a strong market adoption during a period, many would consider challenging. Health care institutions continue to choose SOPHiA GENETICS as their trusted cloud-based analytics platform for establishing data-driven medicine as their standard of care. In 2022, we served more than 750 customers across 72 countries. Of our more than 750 customers, 390 are recurring SOPHiA DDM platform customers. I am also thrilled to announce that we signed 58 new customers in 2022. During the year, we continued to improve positioning of the SOPHiA platform in the market to where it can have the greatest impact, helping inform clinicians in their determination of cancer and Radisys. This happens through our ability to handle complex for data sets produced from next generation frequencies.
Our customers are producing locally what are increasingly large noisy row data assets that can be up to 2 terabytes in size. The production lab at our customers is often an heterogeneous environment using multiple types of sequencers and potentially using chemistry for many different suppliers. From their labs, our customers upload files from the sequencer onto our decentralized SOPHiA DDM platform. We then apply our disease-specific machine learning and artificial intelligence-based algorithms, which, in essence, is proprietary code that we have built up and trend meticulously over the 12 years since our funding. It is with this case our secret sauce, if we will, that we find and harmonized signals in the huge and noisy genomic file and identify and anatase the relevant biomarkers, which the pathology store, the geneticist will have access to true SOPHiA idea.
With each genomic profile we analyze over 1.2 million as of December 31, 2022, our algorithms become incrementally more robust. And because our global network is cloud-based, the benefits to cater in rare disease patients are realizable nearly instantaneously. Our cloud design was foundational decision. It underpins our platform’s ability to become the network to democratize can structure because in real time, it provides back each incremental learning to our community of customers. This direct network effect was intentional, allowing the value of the SOPHiA platform to increase as the number of users who leverage it does. The cancer patient in Brazil can benefit from earnings extracted from the cancer journey of a patient in Australia.
Turning to platform usage. For the full year 2022, analysis volume, a close proxy for patients was 264,000, an all-time high and up 9% year-over-year. When excluding our COVID-related volumes, analytics volume was $246,000, up 18% year-over-year. Importantly, I want to highlight for you that to date, the SOPHiA DDM platform has supported the analysis of more than 1.2 million genomics profiles recently growing by more than 24,000 new profiles per month. This, we think, makes us the industry leader. We’re excited with the momentum we see as users continue to increase their utilization after experiencing the value of the Sofia DDM platform. As our focus shifts towards more complex case areas where the benefits from our technology are high, it’s no surprise that in 2022, we saw an expected and desired lift in overall ASPs. This is above and beyond the expected price increase we took midyear in 2022. HRD is one example of a product that is helping mix with a notably higher ASP.
So, to carry this idea through the strategic focus on oncology and rare diseases is evident in our reported revenue growth outpacing our analysis volume growth. This is an important phenomenon as we expect mix or the value of each analysis patient to increase at a healthy cadence over time. While I discussed how we delivered on our guidance for 2022, I want to also draw for you the picture of how that played out over the year. We are pleased to share that constant currency COVID revenue growth accelerated each quarter in 2020, finishing the year with 44% year-over-year growth in the fourth quarter. And adjusted gross margin ended the year at a high of 75% for the fourth quarter of 2022 compared with 65% for the fourth quarter of 2021, bringing our full year result increasingly closer to our long-term target of 70%. These figures analyze volume, gross margin and accelerating revenue growth suggest to us that our strategic path is strong.
While our top line performance has, of course, been a keen focus of equality in focus as being our desire to solve the new challenge of optimizing capital efficiency. Reducing operating expenses is a muscle we learn to flag in 2022. We reduced our operating expenses in each of the last 3 quarters of the year and intend to continue to advance our fiscal discipline and ability to make the best use of our cash balance. We have been very precise intending to control our indirect costs. We also targeted projects, maintaining sponsorship of key programs, but not all.
So, in summary, I am proud to say we have delivered on our commitment of revenue execution with a material added benefit of cost discipline. So, as I suggested in my opening remarks, when we went public, there were several outstanding questions. With respect to the first question, let me expand on the compatibility of SOPHiA GENETICS decentralized model in the U.S. market. The major proof point in 2022 and one that we are super proud of is our new relationship with memories on Kettering MSK Cancer Center. — considered one of the most prominent cancer centers in the United States, we entered into an agreement where we will commercialize the first comprehensive liquid biopsy test powered by the SOPHiA DDM platform.
By combining our predictive algorithms and the power of global Sofia genetics network with a chemical expertise of MSK in cancer genomics — we jointly envision that advanced precision oncology tools will reach a more diverse global population of cancer patients. Next, turning to U.S. customer momentum, I would like to highlight a recent win at the University of Arkansas. They will be implementing Sofia DDM to gain deeper insights into hematological malignancies. University of Arkansas for Medical Sciences, UMS, is a state’s only health science university. SOPHiA DDM will enable them to synthesize NGS data in-house, building on local expertise and allowing for materially improved data turnaround time, which is crucial given the fast-moving nature of hematological malignancies such as leukemia, lymphoma or multiple melon. — cancers that together as a group, are the fourth most frequent type of cancer globally.
Beyond University of Arkansas, I would also highlight synergy Labs, a U.S. full-service diagnostic lab based in Mobile, Alabama, which we signed in the fourth quarter. They will be using SOPHiA DDM for hereditary cancer solution. They decided to use our platform because they felt we could help them accelerate their menu offering to the forefront of reditory cancer patient outcome. Synergy is also typical of many of our central lab clients as they have NGS sequencers from multiple leading suppliers in the lab. The NGS data coming off each machine is a bit unique. Normally, a lab would either use of the shelf software sold by each manufacturer specialized for that specific machine or homegrown solutions that are expensive to scale and difficult to maintain. The code for the software programs typically struggled in such a heterogeneous environment has often times this software has limited compatibility with respect to the output file of various competitors’ regions, automation or library prep tools.
We at SOPHiA sold this heterogeneous environment challenge in the customer’s lab through our platform’s innovative and unique capability to harmonize signals in the data regardless of the source of the region sequencer. This is a key differentiator for SOPHiA DDM. So. if I may tie this back to the U.S. market and synergy after 12 years of co-development and refinement, we are able to confidently digest genomic data from heterogeneous environments like at synergy and in doing so, help synergy deliver the most accurate results in a secure manner at the lowest cost. This is a winning solution for both us and them.
In total, I am pleased with our progress in North America and look forward to updating you in 2023 on our continued progress. And for our second question, could we show that our animal genomic profile data produced locally at the source and not purchase as some of our competition do have value beyond clinical, especially to biopharma customers. When we talked about this, we felt that pharmaceutical companies face similar challenges to the clinical space regarding data and silo when reconciling their chemical trail data with disparate real-world data reside. These challenges result in high variability in the quality of insight. We serve our biopharma customers by helping them solve bottlenecks across the biopharma value chain, allowing our products, services and applications to address the drug development continuum from discovery to development and ultimately deployment. We call this the 3Ds all of which are powered by SOPHiA DDM data generated in real time and in the real world. We launched our initial applications for the biopharma market in 2019, and we currently have 4 branded applications for biopharma customers.
So back to the question, is SOPHiA able to show value to Biopharma. I would tell you my opinion on this is a resounding yes, and the proof points that demonstrate that is our February announcement expanding our AstraZeneca partnership. We started working with AZ in the deployment phase. This was taking HRD testing worldwide with AstraZeneca’s support. Then from there, we built on our relationship and are now working with them on discovery. Now we will be collaborating on our SOPHiA multimodal technology and expertise could be applied to AstraZeneca’s global leading oncology portfolio. Beyond Astra, we are today in conversation with over half of the top 20 pharma companies in the world as well as many leading CROs because we would argue they understand the benefit of our network, our platform and the data we have. With new biopharma customers, we expect they may have different start points with SOPHiA , but they will follow the same land-and-expand behavior we see in the clinical space.
Beyond those traditional biopharma players, we announced in September that we are working with Boundless Bio regarding a very exciting technology in ECB (inaudible). Boundless Bio is a next-generation precision oncology biotech company developing innovative therapeutics directed against extra chromosomal DNA or CBN in oncogene amplified cancer. Extra promotional DNA involves release of DNA outside of the chromosome and is found in around 40% of metastatic cancer. Boundless Bio is developing the first therapies along with the precision diagnostic method to detect iCDN from the patients routine to more sequencing data. Our partnership will further develop this diagnostic method for use in clinical trials. Our decentralized global genomic solution combines with bounded by our drug development capabilities to unlock value by breaking the barriers in amend to a traditional central lab approach. This should lead to optimized patient selection and clinical trial design and enable our global collective network of major hospitals and academic centers to effectively deliver new treatment options to patients with oncogene amplified calcine.
And beyond that, as we always say, data is important. Now with memories and Kettering, SOPHiA DDM will have incremental access to over 75,000 curated clinical genomic profiles across cancer types. Together, we are going to democratize the use of precision medicine applications around the globe. Now let me address the third question the viability of our platform when applied to other modalities beyond Genomix. From early on, we have felt that over time, our insights should be generated not just from genomic data, but also from imaging, chemical and laboratory data. Intuitively, we have felt that data gathered from data modalities beyond genomics out to further improve the predictive capabilities of our algorithms for the benefit of patients. I would tell you, for us, multimodality has delivered strong proof of concept across a range of cancer types. The flagship example of the promise of such multimodal approaches is our deep lung multimodal clinical study, which we launched in December 2021. We — the deep lung for study focuses on the treatment of metastatic non-small then lung cancer patients with immunotherapy. And in this context, we aggregate real-world multimodal data, including genomic data, radiomic data, clinical data and biological data.
Our technology that leverages deep learning enabled analysis of the aggregation of this real-world multimodal data to identify and validate predictive signatures of response to therapy, profusion free survival or overall survival. These predictive signatures are being validated at the individual patient level with full transparency on the drivers of the prediction with the aim of ultimately supporting clinicians to make informed decisions for their patients and supporting biopharma to ensure the right patients are selected for clinical trials. We reported at ASCO 2022 a third set of preliminary results suggesting a predictive power of around 80%, which for us validates the potential of our multi-model approach in an international, multicentric and decentralized setting. This is highly important as similar multimodal studies are typically done at a single center level today with strong limitations regarding the applicability and scalability of these models outside of that particular institution.
In this context, we are very happy to report that we continue to expand our Deep-Lung-IV footprint with our multimodal algorithms now also being exposed to data from Latin America through our collaboration with data in Brazil, with in the process of activating several sites. There are currently 25 participating sites across the U.S., France, Italy, Spain, Germany, Canada, Israel and now Brazil that have already signed up for participation in the study with around 1,500 patients recruited to date.
Through this intentional global footprint, we aim to maximize exposure of our machine learning algorithms to a wide range of diverse real-world data. Additionally, this footprint exposes us to a diverse set of technologies that produce past data. For example, in the imaging data modality, our SOPHiA DDM platform is exposed to thousands of medical images generated through different city, MRI and PET scanners from different manufacturers. This gives us the unique capability to offer harmonized and standardized analytics in imaging as well in a decentralized setting, further demonstrating our technology agnostic market positioning as a data analytics platform. We are notably working with our partner, Gelder, in the context of the DEEP-Lung study where (inaudible) fabric services are used to visualize segment and analytic lung lesions for medical imaging visualization and annotation proposal.
This allows SOPHiA GENETICS to further accelerate proprietary radiomic analytics workflows in the context of the study, in particular, to move towards automatic or body tumor identification, segmentation and quantification. Insight from the Deep-Lung-IV study, we power one of the applications of our multimodal Care Pass module of the SOPHiA DDM platform, offering advanced multimodal data visualization, quoting and predictive capabilities in a single solution. We feel that the Deep=Lung-IV study has the potential to usher in a new generation of precision medicine that would enable predictions at the individual patient level. We look forward to further validating our vision of building a multi-model decentralized collective intelligence, leveraging on real-world data to generate novel insights at the individual patient level.
So, in total, I am happy to share that we continue to deliver on our commitments and make progress across all of our key growth drivers. As I touched on earlier, reducing operating expenses is a key muscle we learned to flex in 2022. What became apparent to us as the global environment deteriorated since our IPO is how parliament our fiscal discipline. With the intention to minimize any impact on our growth, we set a the challenge of operating expense reduction with a precision mindset. I am pleased to report that in each subsequent quarter of 2022, we were able to reduce our operating expenses, accumulating in the most significant improvement in the fourth quarter. Our headcount stands at 466 as of December 31, 2022, down from a high of over 530 million.
This reduction has occurred primarily through planned attrition and selective actions aimed at improving productivity. We intend to continue furthering our fiscal discipline and related abilities regarding making the best use of our cash balance. Based on our current trajectory, we remain confident in our capital position and continue to see sufficient runway to execute our ambitious growth plan. We continue to be responsive to the current operating and macro environment and remain laser focused on delivering sustainable growth. Layered into our thinking on capital efficiency has been capitalizing on the commercial leverage of partners. Our mindset was rather than doing everything ourselves with this partnership now in place, we felt we could leverage others to help us grow. I already spoke about MSK, and you can understand how thrilled we are to have a cancer center of their caliber trusting us with our technology and intellectual property.
In 2022, we continued strengthening our partnership with AstraZeneca, Glare, Cogen and other existing collaborators. Through strategic collaborations, we spark innovation more quickly, increase the size and scale of our network, connect with a large volume of data and offer more capabilities than we could provide individually. I would like to take a moment to highlight one of these partnerships for you in detail, Microsoft. Microsoft brings to SOPHiA several intersecting points of leverage. We all understand that scale in the cloud is very important. And on that concept, Microsoft will serve us well as we demonstrate multimodal capabilities. Scaling the capture of multimodal data is no small fit. But with Microsoft as a partner, we will enjoy their support and significant infrastructure and capability. Let me walk you through our first 4 months since announcing it in November. We have held strategic alignment meetings at high levels between the 2 companies, including operational steering committee meetings on commercial and innovation work stream.
These meetings included Microsoft General Manager of Healthcare and Strategy lead. Microsoft industry lead for health care in the U.S. as well as the Microsoft Senior Vice President for Strategy and Business incubation. The focus of our strategic collaboration with Microsoft is currently threefold and includes carat scaled by Nuance Microsoft to accelerate our Deep-Lung-IV program, expanding our commercial reach and supporting our scaling the environment program. I am pleased to report over 40 Microsoft salesperson have been trained on SOPHiA DDM and ultimately will be selling to our target market. This is meaningful as Microsoft sales force will help amplify our presence in the market.
I would like to wrap up by reminding you of our 6 strategic pillars, which remain our focus for driving long-term growth and value creation for our customers, partners and shareholders at SOPHiA GENETICS. They are as follows: one, accelerating customer adoption and network expansion with new clinical customers with a focus on the U.S. market. On this measure, we have discussed today our traction, highlighting recent wins with synergy and university of our countries. I would also note of our Deep-Lung study, 6 of 25 current participating sites being in the U.S. two, increasing utilization within our existing customer base. Currently, 50% of our customers use only one Sofia application. 37% use 2 or 3 applications and only 13% use 4 or more applications.
Regarding utilization, I would also share that our top customers see growth faster than our smaller customers. It apples to us that adopting our technology enables our customers to take share in their respective markets; three, further innovating our platform to increase our capabilities and house a growing portfolio of applications and modules. We highlighted Numeration catering for you in today’s call. four, developing key partnerships and collaborations to foster our ecosystem. On the topic of getting leverage from our ecosystem, we have highlighted to you our burgeoning Microsoft relationship. — five, leveraging our platform to further drive adoption with biopharmaceutical companies. Here, we have highlighted our existing development with AstraZeneca.
Fixed and lastly, excelling operationally within SOPHiA , which we displayed through our improved operating loss trajectory despite hitting our top line goals. Regarding our execution against pillars, part with the momentum building with our partners, be that Microsoft, MSK, QIAGEN and AstraZeneca I feel more than excited today that these are the elements that will enable SOPHiA to do what we set out to do 11 years ago to harness data from the global community to generate actionable insights that contribute meaningfully to patient care and patient outcomes that contribute meaningfully towards our customer success and that deliver outstanding performance for SOPHiA GENETICS in 2023 and beyond. With that, I will now turn the call over to Ross to discuss our financial performance in more detail.
Ross Jordan Muken
Thank you, Jurgi. We saw continued momentum across the board in Q4 with superior execution and consistent operational discipline, setting us up for a strong end of the year. I was particularly pleased with our revenue performance in the face of significant loss and cash flow improvement, delivering on our commitments highlighted earlier in the year. Total revenue for the fourth quarter of 2022 was $13.4 million compared to $10.9 million for the fourth quarter of 2021, representing year-over-year growth of 22%. Constant currency revenue growth was 36%, and constant currency revenue growth, excluding COVID-19 related revenue was 44% and Platform analysis volumes were $71,000 for the fourth quarter of 2022 compared to $66,000 for the fourth quarter of 2021. The 8% year-over-year growth was attributable to strength in our core platform analysis volume, offset by the continued decline of our COVID-19-related analysis volume.
Excluding COVID-related volumes, platform analyses grew a healthy 18% year-over-year in the period. Gross profit for the fourth quarter of 2022 was $9.6 million compared to gross profit of $6.8 million in the fourth quarter of 2021, representing year-over-year growth of 41%. We — gross margin was 72% for the fourth quarter of 2022 compared with 62% for the fourth quarter of 2021. Adjusted gross profit was $10 million, an increase of 42% compared to adjusted gross profit of $7.1 million in the fourth quarter of 2021. Adjusted gross margin was a record 75% for the fourth quarter of 2022 compared to 65% for the fourth quarter of 2021. Of note, while I’m pleased with our efficiency gains in the period, particularly on the hosting side, I will highlight a benefit of $1 million we recognized in the period related to the previously announced cloud optimization efforts.
Total operating expenses for the fourth quarter of 2022 were $24.7 million compared to $27.8 million for the fourth quarter of 2021. We Total adjusted operating expenses were $22.1 million compared to $24.6 million in the fourth quarter of 2021. R&D expenses for the fourth quarter of 2022 were $6.8 million compared to $6.4 million for the fourth quarter of 2021. Sales and marketing expenses for the fourth quarter of 2022 were $4.2 million compared to $8.6 million for the fourth quarter of 2021. General and administrative expenses for the fourth quarter of 2022 were $13.9 million compared to $13 million for the fourth quarter of 2021.
The Overall, I am quite pleased with the progress we exhibited with respect to operating expense leverage in the period. However, I would like to highlight a few items that impacted reporting in the period. With respect to R&D expenditures, we did benefit from a credit related to our ongoing cloud optimization efforts, which was recognized in the period. Additionally, there was a modest reclassification of certain expenses from R&D to G&A that shifted certain expenses in the period. Lastly, there was a slight adjustment to employee-related expenses in the quarter, which resulted in a modest benefit.
Cumulatively, the impact on operating expenses was roughly a benefit of $900,000 in the period. Turning to operating loss for the fourth quarter of 2022, it was $15.1 million compared to $21 million in the fourth quarter of 2021. — adjusted operating loss for the fourth quarter of 2022 was $12.1 million compared to $17.6 million for the fourth quarter of 2021. Net loss for the fourth quarter of 2022 was $14 million or a loss of $0.22 per share compared to $21.4 million or a loss of $0.33 per share in the fourth quarter of 2021. Adjusted net loss in the fourth quarter of 2022 was $11 million or a loss of $0.17 per share compared to $17.9 million or a loss of $0.28 per share for the fourth quarter of 2021. Turning to full year fiscal 2022 financial results.
Total revenue for the full year 2022 was $47.6 million compared to $40.5 million for 2021, representing growth of 18%. And — the growth in revenue was primarily driven by increased usage rates across our existing customers, favorable mix shift to higher price analysis, strength in HRD and our biopharma offering. Constant currency revenue growth was 32% and constant currency revenue growth excluding COVID-19-related revenue was 39%. Annualized revenue churn rate was 4% of total revenue for 2022 as compared to the historic low of 3% seen in 2021 as a result of pent-up demand due to the pandemic. Average revenue per platform customer for the full year was approximately $93,700 compared to approximately $92,000 for the prior year period. Of note, this metric was significantly impacted by currency-related headwinds over the balance of 2022. Net dollar retention for the year decreased to 102% from 142% in 2021. Constant currency net dollar retention, excluding COVID-related revenue, was 123% as compared to 132% in 2021. Total recurring platform customers grew to 390 as of December 31, 2022, up from 382 as of the end of December 31, 2021 and 383 as of September 30, 2022. The — with respect to land momentum, I am encouraged by the 63 new customers we have converted into our routine recurring base in 2022. However, on a net basis, recurring platform customer additions were modest than the prior year as we strategically decided to churn smaller, more price-sensitive accounts in certain regions. We expect this metric on a net basis to return to more historical levels of increase in 2023.
Looking to our expand momentum, we are quite happy with our NDR performance, and it provides us with a high degree of revenue visibility for 2023. We — gross profit for the full year 2021 was $31.3 million, an increase of 24% compared to a gross profit of $25.2 million for the full year 2021. Gross margin was 66% for the full year 2022 as compared with 62% for the full year 2021. Adjusted gross margin was 68% as compared with 64% for the full year 2021. Total operating expenses for full year 2022 were $119.1 million compared to $96.7 million for the full year 2021. Total adjusted operating expenses for the full year 2022 were $104.3 million compared to $87.3 million for 2021. We R&D expenses for the full year 2022 were $35.4 million compared to $26.6 million for the full year 2021. Sales and marketing expenses for the full year 2022 were $28.3 million compared to $28.7 million for the full year 2021.
General and administrative expenses for the full year 2022 were $55.8 million compared to $41.5 million for the full year 2021. Operating loss for full year 2022 was $87.8 million compared to $71.5 million for full year 2021. Adjusted operating loss for the full year was $72 million compared to $61.5 million for the full year 2021. We Net loss for the full year 2022 was $87.4 million or a loss of $1.36 per share compared to $73.7 million or a loss of $1.33 per share for the full year 2021. Adjusted net loss for the full year 2022 was $71.6 million or a loss of $1.12 per share compared to $62.3 million or a loss of $1.13 per share for the full year 2021. Cash and cash equivalents were $178.6 million as of December 31, 2022. Turning to our 2023 outlook. SOPHiA GENETICS expects reported revenue growth to be at or above 30% in 2023.
Constant currency revenue growth, excluding COVID-related revenue for 2023 is expected to be between 30% and 35%, in line with our previously highlighted long-term expectations. Of note, we currently expect a headwind to 2023 reported revenues of approximately $1 million related to a ceasing of COVID-19-related contribution. This will equate to a headwind of approximately 19,000 analysis to reported volumes. Furthermore, we would note that exchange rates remain highly volatile, but at the moment, we anticipate a modest impact to reported results. With respect to the quarterly cadence in 2023, we would note that our clinical analysis volumes tend to exhibit the typical seasonality of patient utilization with usage building over the course of the year, the third quarter typically exhibiting stabilization and the fourth quarter being the largest contributor.
With respect to our pharma business, we would note it remains in its nascent stages and in turn, it will be highly extensive to new business wins. Lastly, following on strong cost performance in the second half of 2022, SOPHiA GENETICS expects 2023 operating losses to be below 2022 levels. Finally, some closing thoughts on our current capital position. I remain encouraged by the progress our team has made over the balance of 2022, enabling us to deliver strong revenue growth while also making significant strides toward our long-term gross margin goal of 70% and our commitment to a path to profitability.
As a capital-light software business, we will remain vigilant with respect to our headcount and indirect expenses, balancing our long-term growth against the need to become self-sustaining, all with an eye on long-term value creation. — based on our current trajectory, we remain confident in our capital position and continue to see sufficient runway to execute against our ambitious growth plans. We will continue to be responsive to the current operating and macro environment and remain laser-focused on delivering sustainable growth. With that, I’d like to turn the call back over to Jurgi for the closing remarks before we take your questions.
Thank you, Ross. We’re extremely proud of our performance, which we believe reflects our continued ability to execute on our vision and the opportunity ahead. SOPHiA ‘s success stands on our ability to delight customers and continue driving more and more usage of our platform. Our 6 strategic pillars remain our foundation to drive growth and value creation for this year as well as the years to come. I am encouraged and as confident as ever about the long-term path that we are on. We have a fantastic opportunity to drive compelling returns and shareholder value. After a successful unforgettable 2022, our focus shifts to SOPHiA ‘s future. I will share just a few thoughts looking to the near future with 3 key priorities for 2023. One, in somatic oncology, we see both the chemical and biopharma market, increasingly focusing on rare patient population defined by molecular alterations that are more challenging to detect confidently. This includes alterations such as exon keeping events, fusions, partial copier variations or complex biomarkers such as HRD as well as new modalities to detect those [augeration], for example, through liquid biopsy. Through our algorithmic capabilities to detect the signal from the noise and our global scale, we’re uniquely positioned for growth in that segment, leveraging a wave of upcoming launches in the CGP and liquid biopsy space, notably through our collaboration with MSK as well as new features in our SOPHiA DDM platform. Two, in biopharma, we see accelerating traction across our offering as evidenced by the recent expansion of our existing partnership with AstraZeneca to now cover our multimodal algorithmic capabilities applied to their oncology portfolio.
This is a great example of how we leverage our land and expand model, not only in the clinical market, but also in the biopharma market. Three, in risky modality, we look forward to the official launch of
[Cura] module of our SOPHiA DDM platform with the first application in the context of static non-small fin-lung cancer and other applications to follow, notably leveraging several external collaborations. We see high interest from biopharma to engage with our Cura capability. In closing, thank you to our partners, customers and investors for joining us on this journey. Without you, none of this would be possible. Later today, we are presenting at the Cowen Healthcare Conference here in Boston. Feel free to join our webcast on that presentation from the link on the IR section of our website. And next week, we will be presenting at Barclays Healthcare Conference in Miami. I look forward to continuing to update you on Sofia’s future successes of democratizing data driven medicine. Operator, you may now open the line for questions.
Question and Answer Session
We will now begin the question-and-answer session. (Operator Instructions) The first question comes from Tejas Savant with Morgan Stanley.
Tejas Rajeev Savant
Maybe I’ll start with one for you, Ross, just on the guide. Help us frame that growth rate of above 30% here. How are you thinking about drivers of conservatism versus potentially upside levers that you’re not incorporating in the guide?
Yes. Thank you for the question, just, Ross, can you address that?
Ross Jordan Muken
Thanks, Jurgi. So Tejas in terms of the reported guide, obviously, we gave you the core guidance, right, which for the underlying business is in line with our long-term growth rates we shared at the Analyst Day. And so for us, that’s where we have a high degree of visibility, particularly relative to our clinical business. If we think about the other pieces there, obviously, we talked a bit about FX, which has been bumping around and today doesn’t have a material impact. And then obviously, the $1 million roughly of Covid related revenue that will roll off. But as we think about the ability for us to sort of achieve our range, obviously, as I shared at the Analyst Day, and it continues to be the case, given our business model, we have a very high degree of visibility on forward 12-month revenues, right?
That’s quite true based on our contracting and our consumption-based model. And so there, I would say, particularly in clinical, 90-plus percent visibility on forward results. The element for us where you could see or continue to see upside is obviously in the biopharma business. there. We’ve had great momentum and maybe I’ll let Jurgi comment a bit on some of the trends in trajectory in biopharma. But that’s really where you see much more quick burn and immediate sort of revenue contribution where you’ll see sort of a bigger sequential step-up relative to results. And obviously, relative to what’s included or implied in the guidance, it’s what we have visibility on today. Obviously, we intend to be able to sell more biopharma business over the balance of 2023. But that business today is still quite nascent. And so in terms of how we think about it relative to the guidance, we’ve been pretty conservative, I would say, Jurgi, please maybe just give some color there on biopharma. I think that’s the key one as we think about upside driver.
Thank you, Ross. So right, as said, the comical business now on the business, it’s quite mature, but we have a lot of opportunities. So the growth is really related to existing customers who are consuming the platform, and given the long churn we have in the platform, we can from there, have a good idea of how we’re going to grow. — frac-contracted, if you like, opportunities that now we’re going to move into a team. So, on that one, we have a lot of visibility. On the biopharma side, we have visibility from some contracts we have signed. But as you can imagine, some of them can be quite decent. And so this might be an add-on into our revenue but will depend on when they are contracted and how quickly we can execute them, right? And so to give you some perspective, to just, right now, we really have been able to demonstrate the value proposition of SOPHiA in terms of network platform and data assets for the pharma around the strategy that we call 3D, which is from discovery to development to deployment.
We mentioned AstraZeneca being an important partner with when we started on the deployment side, so post-market approval of PARP inhibitors and now we are working with them on the discovery aspects, leveraging on the data. We’ve gathered in particular in the context of the deplane for study, but as well the algorithms we develop in that context. And just to give you some tendencies right now, easier, we are engaging with the top 20 pharma in the world. And the trends we see and the appetite for Sofia are very much related to our decentralized operating model, our multi-model capabilities. And now one thing that we have not yet disclosed, I would say, intensively, but on which we — Yes. So on the other 2 metrics, right?
So, in LTP to cap, that was around 4x for the year, so it’s still well above. That’s signaling to us as well that both we’re obviously keeping our customers, we’re growing them effectively and our cost of acquisition, which is obviously important as we think about path to profitability remains quite attractive. We actually recently added a new head of marketing from outside, actually from the technology space. And I’m pretty excited about what he could bring to the table as well to be able to accelerate, particularly on the land. I think there — obviously, there’s still a lot of places, particularly in Noram, but also in other parts of the world where there’s quite a lot of opportunity. So again, we’re really looking for sustainable growth, and that’s a sign that we’re still doing that in quite a healthy way.
Tejas Rajeev Savant
Got it. And the customer churn, the deliberate customer churn, Ross, any thoughts on that? Is that sort of done now?
Ross Jordan Muken
So I would say, for the most part, right? So some of that is related to COVID, right? So, if you think about some of the small customers that started in next-gen sequencing, so they used the grant to get a sequencer, they began in COVID and had hoped to transition to oncology or rare disease or others. Some of them didn’t make it, right, I would say, or some of them weren’t able to shift. And so ultimately, there, we obviously allowed some of them to leave. And then you can also think of areas like Turkey, which we’ve called out, which has obviously been a pretty challenged specific country and region for us, where there was pricing in that country that just for us fundamentally didn’t make sense relative to the long term of the business. And so we allowed some of those accounts churn.
But again, they’re quite small, so nothing notable in there. And so we feel quite good of where ultimately we shook out. I mean 4% still on the churn rate for a software business is incredibly impressive. And so despite some of that noise, I’m still quite happy with the delivery, and we’re going to continue to balance this over time in regions where we see pricing that doesn’t make long-term sense. As you can see, right, it’s very hard to sustain a profitable model if you continue to price at levels that are unsustainably low, right? And so we’re not going to chase that. And I think we’ve looked at the competitive landscape, and you know some of the businesses. And so that’s not a trap we’re going to fall into.
Tejas Rajeev Savant
Got it. And then one final sort of big picture strategic question for you, Jurgi. We’ve had some internal disruptions at some of these clear labs. We’ve also had the situation where the cheapest sort of NGS costs are only accessible to the highest throughput settings. So there’s a strong incentive at play for consolidation of volumes at these large sort of facilities. How does that impact your go-to-market strategy here? And does the fact that vendors like Illumina are now focused on informatics on board with their new instruments impact the value proposition for DDM?
So thanks for the question, Tejas. So first, to remind where we stand today, right? Remember that our strategy is a land-and-expand model. We’re already in 390 recurring customers of SOPHiA . In total, our network is 750 plus customers who already today are being equipped with sequencers. Out of each, 390 are using Sofia DDM every month. And those 750 and 390 using SOPHiA every month are already equipped with sequencers, right? And so as you may remember, we grew significantly with the expand of our customers. And in the expand, we grow by adding more application more menu, right, to the utilization they made about SOPHiA . So, for example, moving from solid tumor to reditary cancer and then to liquid biopsy and entombank.
Today, only 50% of our 390 recurring platform customers are using one application at Sofia. 37% are using 2 or 3 applications and 13% are using only 4 or more applications. So, what I’m trying to tell you is that despite what you observed or what you have heard about, we’re already there in place, and we can grow with these existing customers. But to say that, I would say that we don’t see the same dynamics, actually, just we see more and more decentralization. And I don’t know where you got those messages. But in that context, we just signed synergy, which is a reference lab in the U.S., which we signed a University of Arkansas, right, which is another academic center that we announced in our earnings today.
So, this is a trend that we continue seeing. I was struggling last week in Colombia in Brazil. I can tell you that volumes are ongoing up because sequencing is getting cheaper and cheaper and we’ll get cheaper and cheaper because of competition. I was in a site where actually in Brazil. Today, they have 7 sequencers out of it for Illumina to Thermo feature and on GI. So, I think we are ourselves in a very good position to be able to leverage on having more and more people adopting sequencers and having actually volumes higher and sequencing price cheaper is better for us, right, because it means that people are going to produce more data and by producing more data. It means they are going to consume more of the SOPHiA DDM. So, we’re very encouraged with the current trends we see in the market.
Ross Jordan Muken
And on a luminous Yes. On alumina, in terms of onboard, right? Obviously, that’s been a trend for them for some time. Obviously, they’re a formidable company and one that, frankly, in the context of the universe, we are quite synergistic with, right, in terms of growing NGS clinical volumes, which is one of their main goals as well. I would say the — putting it on board is certainly a strategy for them. I’m sure that makes sense. But the reality is what we’re trying to animate in the industry in terms of a decentralized network across many different players sharing information across all technologies, all the types of reagent providers, et cetera, and across all modalities. It’s just a fundamentally different strategy, right? So, I think on the research side, I understand why someone they prefer something as simple as an onboard bioinformatic with their sequencer. But I think in the clinical space where, again, this idea of data sharing and collective intelligence globally is really gaining momentum for us. We feel quite comfortable with our position. And I think all of these players, frankly, can coexist in a nice way and frankly, just continue to grow the market overall quite effectively.
Thank you, Tejas. Have a good day.
The next question comes from Rich Hilliker with Credit Suisse.
Richard Myron Hilliker
Being met the topical right now. I was wondering if you can give us a sense of how you imagine generative AI enhancing the platform as we iterate from here.
So thank you for the question, Rich. So I understood your question was about general AI, right? Is that correct?
Richard Myron Hilliker
Opening turn of the eye and there’s a lot of in use cases. Yes, exactly.
Yes, good question. So, look, in our story, AI has been there at the heart since beginning, right? Because as I was just explaining to Tejas in our customer side, there is a lot — they use different sequencers. — they use different consumables and so on. And so one has to build algorithms on the basis of partner recognition, deep learning and machine learning to be able to bank those data and correct them, harmonize them, be able to see a signal and by doing so, bring accurate data so that hospitals could take more informed decisions. We see that trend as well in other data modalities. That’s now we are going multimodal. And in that aspect, I would say AI-related efforts will be extremely important, in my opinion, on anything which is clinical data. And in particular, any clinical data that are being today gathered into documents or in EHR systems, where I think AI techniques and [Opitechniqes] will be applied to basically gather those data in a more sophisticated, more, I would say, precise form and be able to bring this comprehensive information to an individual. So, for us, a pathologist, a geneticist, without one thing, if you like, these people with too many information, right, but really bringing them the precise information that is consistent and that is important to take actions on this patient in the context of many other patients…
Richard Myron Hilliker
Okay. Got it. And then just quickly, Rob, congrats on the COO promotion. Wondering if you can share maybe a couple of your top priorities. Obviously, you’re very familiar with the business as it is, but maybe a few things that you’ll be focused in on initially? And then that’s all for me.
Ross Jordan Muken
Thank you, Rich. So, I would say, in general, right, my priority set in terms of my new functional role is not too different from what we’ve been focused on as an organization overall, right? So obviously, we’ve got a very large market opportunity in front of us. and we’ve got to execute against it and we’ve got to execute it against it in a sustainable way, right, with the capital that we have. And so in that, I’m personally very focused on how do we accelerate our land, particularly in North America? And how do we get ultimately this market to the place where we think it can be. And again, we’re seeing a lot of really good green shoots and momentum there, but there’s still a lot more to be done in North America. I also think as well on the biopharma side, we’re just scratching the surface, Tagus asked us by upside drivers. There’s a lot of momentum there.
The gentleman who runs the business for us. We’ve had them on the call before, is doing a tremendous job. And I think we can really move the needle. And then lastly, on the partnership side, we’ve got fantastic momentum with Microsoft. — urge also talked about Agilent and QIAGEN, which are great partners for us. We obviously have spent a lot of time on MSK. And so making sure we get returns and momentum out of that is crucial. And then lastly, being able to do all of that with what we have, right? I’m proud of what our team was able to do in terms of operating and net loss this quarter. We’ve made huge strides. As a European entity, it takes us some time obviously to sometimes display that sequential operating loss improvement some we’re looking for. But certainly, we’re getting more productive. We’re getting more efficient. We’re getting more focused and being able to execute on those items with adding headcount and without adding significant indirect costs, that’s where we’re really focused and what I’m focused on.
Thank you, Rich. Have a good day.
The next question comes from Mark Massaro with BTIG.
Mark Anthony Massaro
Congrats on a strong 2022. My question is for Jurgi. On the deep lung study, I appreciate all of the detail. I believe you’ve enrolled 1,500 patients. How many more patients do you expect to enroll? When do you think that study will wrap up? And when do you think we can see another interim readout?
Thank you for the question, Mark. So indeed just as a reminder, right, that’s the study we launched in 2020 at RSNA. And basically, in a year and home, now we’ve been able to onboard 25 sites around the world on this multimodal journey out of which 6 in the U.S. and we’ve been able to follow launch 1,500 patients, adding molecular information, for genomics data, imaging data as well as 200 clinical data points, so which is pretty awesome in terms of how quickly we’ve been able to operate that. Now we have said that when we started the study that this would be a retrospective study on 4,000 patients. So, this can give you a sense of how many patient data we’re going to gather this year, so it should be around 2,500. And beyond that, we are thinking, so this is still very premature ramp, but as well as considering prospective studies, right? But we would first have to disclose the retrospective data, which I think we’re going to do as well in the next oncology conferences we’re participating at.
Overall, I would say, Mark, we’re very excited about it because when we went public, there were some expectation on us, of course, hitting the numbers about demonstrating more compatible with the U.S. market for Genomics, demonstrating we could penetrate the pharma, but as well demonstrate the market that we could go beyond genomes, right? And with what we did with deep plant, building eras, now we are in this unique position where we can gather other data together with genomic data. We call this data layer phenotypic data. And I can tell you, as I was commenting to touch us, while traveling last week in Colombia and Brazil, in any meeting at people want be owned the genomic data to get access to CERPASS to be able to follow the questions they are analyzing either in cancer radio. So I think here, we have to be now very disciplined on executing the plan and beyond. And this is where we count a lot on our partners like GE. We mentioned what we are doing with them on the imaging fabric side as well as Microsoft where we are working together on being able to gather clinical data at scale in a decentralized way. It’s really exciting, Mark, by the way. This is why we do a SOPHiA.
Mark Anthony Massaro
Exactly. Yes. It’s a great use case of your multimodality. So definitely look forward to the next data set readout. My last question is for Ross. Great to see the gross margins come in above 70%. I think you’ve already exceeded your 2025 goal. How are — to what extent is that a level that you think you can maintain here in 2023? And — or do you see now perhaps potentially higher gross margins as a long-term goal? And then finally, on the contribution between volume and price and mix, how should we think about the levers to hit your 30% revenue growth this year?
Thank you, Mark. Thank you for highlighting that because this doesn’t come with a lot of discipline and a lot of work. And before I let Ross give you some more color on what you asked, I would like to highlight that this is not by chance, right? We’ve been super disciplined on headcount. We’ve been super defined on indirect expenses, systems, professional services, public company costs, — we have been working as well on major cloud savings not only by better negotiating but by improving as well our code so that the code would be running more efficiently in the cloud, and this would cost us less. And then we have been focusing as well on projects, maybe not doing some projects that were interesting, but really focusing on higher-impact projects with a higher ROI.
Ross Jordan Muken
So Mark, first on the gross margin side. I would say, certainly relative to our performance in the quarter, I’m very proud of the team, right? We had fantastic execution. We did benefit in the period. I did call out a credit related to our compute and cloud spend that was recognized in the quarter. So ,it did add a couple of points to the gross margin line. That being said, even excluding that benefit, the performance was really strong, right? So obviously, we’re very focused on being able to drive best-in-class margins, and that remains a focus. And obviously, I would say the work we’ve done on the cloud side continues to be a huge focus. Now going forward in terms of how to think about sequential margins, I’m not going to give specific guidance, but I think you could certainly look at that call out, right, in terms of the benefit in the period and then adjust as you think about your cadence into Q1 and the rest of the year. But certainly, our goal is to be able to sustain margins certainly north of 70%. We had obviously thought of it at the time without knowing all of the drivers by 2025. Certainly, we hope to get there sooner on an annual basis.
As recall for this year, we ended at 68%, right? I would say, in terms of going forward, business mix and also a bit of our strategy will sort of dictate the pace. But we’re trying to have, I would say, more consistent expansion on the gross profit or gross margin line. And we’re obviously — we benefited from price in this environment, et cetera, as well. But certainly, some of it will also depend on mix, right? And also our decisions of driving volume in some of our newer areas. And so I would say stay tuned. Our goal is certainly to be able to deliver for this metric in terms of 70% in the near to medium term versus maybe 2025. A — but certainly, our ambition is to also drive best-in-class overall margins for the business and also hit our revenue growth targets. So maybe just quickly on revenue. You saw us on an executed basis volume growth has been in the high teens. I think in that range, maybe a touch higher, makes sense, right, as you think about the clinical business for next year.
Pricing, we did take another price increase in the beginning of the year. That will add low single digits. And then we also have the continued expansion of our ASPs, which this year, I would say, despite currency, we’re obviously quite good, right? And so — so again, in terms of the drivers, the underlying levers to us are quite visible. And the one piece we obviously couldn’t solve for this year was FX. Obviously, we hope that calms down. But other than that, that’s sort of the mix of it. And then biopharma, obviously, you’ll see impacting the ASPs in the way you will look at the model and so forth. And so to the degree we do see upside there, that’s where it will come versus the peer analysis volume.
And I would add, Mark, that obviously gross margins are very important because they reflect the sustainability of the business, right? And Sofia, which instance for Wisdom was not only there to bring sustainability in Healthcare, making sure that data patient today can be used of this patient, but as well leverage so that we can further our patients tomorrow. But in that context, of course, we want to build as well an economical model that is sustainable for the long run. And in that sense, I want to highlight as well our current cash position end of December 31, 2023, we were standing with $178.6 million in cash in bank.
Mark Anthony Massaro
The next question comes from Julia Kin with JPMorgan.
This is Marian for Julia. Congrats on the quarter and I just had a quick question. So, compared to 2022, what are your expectations for the customer base in terms of geography? And then also in chemical clinical versus biopharma?
Thank you, Marta. So. as you may remember, right, we are today in 70 countries. So we are really global. We started in Europe and our presence being more dominant in Europe. But in then, we’ve been very nicely growing everywhere. And I think today, we have demonstrated that our model was working in any country bank. So I just mentioned some deals we announced recently with a synergy in (inaudible) being one of the examples of free France labs that can work with us. I mentioned as well the University of Arkansas, not Arkansas for that. I learned that this is not how we were pronouncing Arkansas. So, I hope I didn’t offend anyone there. And so, this, I think, gives you a color on where we were trying to get more focused, right? So definitively, we are growing everywhere, but we have been growing more quickly in average in Northern America. So, we’ve been growing over a corporate average in 2022. And this is a trend that we think should accelerate in the next quarters and years.
Ross Jordan Muken
Yes. In terms of the mix of clinical and biopharma obviously, we don’t separate as of yet, given just the nascent stage of biopharma. But as I stated to Tejas’ question, obviously, we’ve got a very high degree of visibility in the clinical business, right? So you can see our growth expectations for the year and look back to what I said at the Analyst Day. And so I don’t think there’s any shift in our view of what clinical can deliver. I think, frankly, it could possibly accelerate from there, but that will take us to continue to, I would say, improved execution in the U.S. On Pharma, I’m super proud of the team. This was really a transformational year for us. on the biopharma side. And I’m very optimistic around what we will see in ’23 from that team.
But just remember, again, those tend to be longer sales cycles, just given the size of the business. And then again, the burn might be a bit quicker, but still, it takes some time to kind of contract and sign. And so in terms of contribution, I would say, certainly look toward the second half of the year in terms of the next level of inflection on the biopharma business. And then when it gets to size where it makes sense from a disclosure perspective, we’ll start sharing that revenue for you. But it today is not at that size where that would make sense.
And maybe, Marta, just to end on your question regarding the territories, as you know Sofia sells well for partners. So we are very proud to announce a partnership with late this quarter. actually, QIAGEN is going to combine their Tele consumables with Sofia DBM. And so if you see wherein present as well, which is even broader than Sofia, this can give you a sense of where we expect to grow as well as partners. And beyond that, Microsoft, right? So, we have a dissenter, I would say, sales team, but obviously not a sales team which is as broad and as big as one of Microsoft. And so there, in particular in the U.S., we’re making a strong focus on expanding our market penetration. So, the landing of Sofia and EDM together with Microsoft.
This concludes our question-and-answer session. I would like to turn the conference back over to Dr. Jurgi Camblong for any closing remarks.
Yes. Thank you all for joining us in the call today. We’re actually very excited with what Sofia has been able to achieve in overall 2022 and even the acceleration in Q4 2022. So stay tuned. We will be today at the Cowen Healthcare Conference next week in Miami at the Barclays conference, and we’re going to report our Q1 numbers in May. And we will — while we are making progress as well keep our debt updated on anything that is important and the good traction that we’re adding overall around the world. Thank you for the call today. Bye now.
The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.