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SOPHiA Genetics (SOPH)

Participants
Jennifer Pottage Head, IR
Dr. Jurgi Camblong Co-Founder and CEO
Ross Muken CFO
Julia Qin JP Morgan
Vidyun Bais BTIG
Kyle Boucher Cowen
Call transcript
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Operator

Good day, and welcome to the SOPHiA GENETICS Second Fiscal Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Jennifer Pottage, Head of Investor Relations. Please go ahead.

Jennifer Pottage

Welcome to SOPHiA GENETICS’ Second Fiscal 2022 Earnings Conference Call. My name is Jennifer Pottage, and I’m the Head of Investor Relations at SOPHiA GENETICS.

Dr. are today me Joining Jurgi Camblong, Muken, Officer; Ross Chief Co-Founder Chief Financial and our Executive Officer. and our

differ Before or we current risks that could get that started, are to U.S. I would like material These laws. assumptions events make within scope projected. actual materially statements during cause which federal looking subject securities management on from to that statements this and those forward and call management’s to uncertainties are based the results of views will remind you are

information these revise note, any of the Except SEC. call on release only future slides of filed regarding available August or intention forward-looking our and Additional X, regarding are X-K This to is now any events risks included update whether because or will section. disclaims statements I’ll the the XX.X section forward-looking information, as obligation over and and otherwise. website Please to in And of required accurate Exhibit replay the uncertainties Jurgi. call contains Form the with and the new turn statement report by on entitled law, or cautionary today GENETICS statements SOPHiA Investors its be earnings broadcast, well information as call the time-sensitive of as associated conference in XXXX. as this

Dr. Jurgi Camblong

by consistently our with solid quarter and continues here global that take every today environment, to and our will fuel life our like care talented the Despite as in collective you SOPHiA SOPHiA challenging with share offerings pillars. the overarching geographies to demand But revolve each the Jen, success you, democratize choosing for be core macroeconomic are our as quarter of institutions I’m trusted health care. hello, a diving to well to health proud a momentum lead of leaders and initiatives and network ambitious as underlying build company our whose science call, dedicated forward-thinking day. yet progress strategic to and team steady major be Thank SOPHiAns efforts key intelligence driven the across in platform as another pleased everyone. the today’s our the journey to around to in, I an narrative analytics for sustainability. all team, cloud-native second moment success this this before data-driven medicine On their would platform. I’m thank healthy

sustainability consistent on the well Our core made we have and generation. clear and focus toward of keep profitability us be and will of on cash long-term flow its investments on path growth, attractive SOPHiA path a and today actions some will placing as already highlighting that as

to focused infrastructure our We market. our have and building been on drive possible core primarily addressable and outside growth realize sizable momentum capabilities

medium our term a business created the is we always into plan have we well over am and believe to build of to capital we many intended. that growth model to upon, the as more needed a are transition our Now happy plan have foundation share investments solid underway. that to sustainable scale being support crucial our I investment

to success the through runway would of of extended an aspirations providing of year, am strong life longitudinal deployment treatment that a create planted, have many and our diagnostic so A time amount fruits XXXX multimodal this both their our by have support and can efforts. is to be for network these us of globally our also product to now and customers tremendous years. leverage law the begin on We long-term core of which that, of broad already of built and model I the biopharma expect proud we this of to The data We meaningful made dynamic, the been harvesting we new become and customers the a for to in will top computed achievements over Given we’re of period our customers apparent to upcoming portfolio. cash insights. platform operating data past for beyond. decisions. our the increasingly And clinical through the bring the CarePath seeds preparing leveraged

into Starting Now the the let’s get adoption off network. QX expansion customer with new the SOPHiA of highlights. and

this the building on and increase customers network. unfavorable a long-lasting on growth We’re global to us be hyper-focused macroeconomic on scale geopolitical Customer headwinds generated. primarily to impacted challenges, and FX a the basis which due relationships resilient platform’s to new quarter diversify despite proved have with reported

global in altogether, efforts. space use steady we look where existing were end, relationships. concentrated We SOPHiA’s in our across America, our that revolves positive progress centralized strategy To momentum on respect development. customer leading Consumption full top we North our is largest of ensuring new penetrating While to more these the remain that America. continuing we cases a also see strategy forward continue to advance board on market North penetrate lab of to with to and the sharing the centers, on are deepen recognize of around range and academic to solid which making growth priority details platform potential very sales QX. trends customers soon our broaden and

to platform previous long-term this to land for analysis expanding platform be in we according our approximately between notable earnings saw GE’s global us Edison the while continued implication customers another in second analysis Year-over-year, platform has highlight, transformative grew The up of XXXX. benefit lira’s XXX its continues second the second further to XXXX. Sofia’s quarter, approximately Total the us usage heard volume, up the expand from into our impact the grew agreement analysis platform XX,XXX COVID-related decline recently in traditional with XX,XXX customer number analysis In from exception quarter QX approximately Cross in key model business of to key Turkey and customers talk calls. between relationships. mutual where quarter of deriving period data the with application XXX recurring wins second X%. consumption increased in year, to total have of reimbursement may on to and of You and an quarter Healthcare about of to approximately DDM due grew a generally SOPHiA XX%, platform. we total GE excluding integrate core finalized rights. additional volume the depreciation analysis and Overall, tracked the expectations the customers,

partnership to this and and be with deepen generate We base taking our novel are interpret enable them complex thrilled to to customer assured insights. our step data

to in use cancer and of promise symposium data. of the medicine through joint in Additionally, together GE presented this about data-driven multimodal ASCO, June the past a Healthcare SOPHiA respective at efforts the unlock

Medical validate the that Chief the to and preliminary a Officer, which computed ASCO signatures that volume findings an study showed we launched patients only their we value Our was incredibly own resulted recognize in of the At of meaningful customers, to our initial us, platform success for in search algorithms Dr. for immunotherapy can the ASCO, rich value for for it especially DEEP-Lung-IV, have responses, with the with data numerous value but insights clinical on quality also response conversations cancer. non data. believe of itself our XX% we not the biopharma predictive predictive advanced improve for as the big small exciting. help of community who we Philip lung presented Mooney, is cell observational which

will the DEEP-Lung-IV, CarePath with the throughout later them science development select robust and generated this capabilities deployed throughout by patients Additionally, insight journey. also course of CarePath, as still patient from offer be lens to comprehensive patient complement data cohorting respect ultimately to our right and the expected clinical for capabilities their anticipate to that the biopharma analytics the customers through year. which this accelerate visualization, are as offer module of the insights and track will single is a study trial. helping predictive enhance the of We business on trials advanced life well the

We core algorithms. for capabilities, discussions, the Overall, our a companies to our to that future. it scale grow platform encouraged successful continues the foundation data our business quarter while execute was clear by expanding proposition as and are we on our and with biopharma continuously building recent QX multimodal and continue of improving predictive to value is

and sustainably financial the We’re and I SOPHiA focus optimistic now hand will accelerating half the the to to of to results with detail. and for long-term remains view growth our in our over trends through call our on year, our Ross the of you that, more second tomorrow. And take operating

Ross Muken

the currency revenue and for Thank you, growth outlook for morning, of XXXX our XX%. full constant of are delivered everyone. second results XX% We good to quarter Jurgi, year healthy and reiterating

X,XXX franc the headwinds negatively basis in in on period. year depreciation XX% quarter to $XX.X of impacted and million growth by due Turkish our euro, the grew approximately despite approximately lira Swiss Second a from XXXX dollar to U.S. over which against the FX significant material revenue points $XX.X million year

Excluding revenues, XX% the revenue approximately impact COVID-related for the from period. was constant-currency

Our analysis XX% quarter to the compared year, scale later for expenses volumes on million $X.X of the customer second expenses XXXX General the quarter to second slightly contribution compared second operations. XX% Turkish $X.X share-based which a to in an XX% margin of the was increase XX% XXXX. $X.X of a CE-IVD expenses, a $X.X software analyses quarter XXXX. second approximately prior-year decline COVID-related Adjusted the the prepare related the made Gross period. of that in XXXX to of compared R&D of revenue healthy considered XXXX. this XXX% second to operating quarter this COVID-related compared scale-up bases. analysis decline the for volume platform the public approximately is note, earlier. period. was in XXXX. $XX.X for XXXX investment higher expenses margin our million second we continued was quarter to gross $XX.X increase net development, the market in in marketing were volume, to XX% XX% prior-year second approximately quarter in in in million, for the initial $X.X deployment the are our underscores Platform of reflecting grew the Jurgi of in approximately of million second increased company, the second year-over-year. XXXX to second in of for revenues which an administrative annualized second dollar and of second the as analyses increase increase achieve of $XX.X and second share-based profit quarter as customers and in were COVID-related FX compared increased NDR the the approximately to XXXX, expenditure their from the million compared in million, majority in we of in referenced quarter in quarter million CarePath XX,XXX our as and product compared as an and products, XXXX were compensation Of headwinds, XXXX. for of Gross QX The in from were revenue an of million in strong is profit the quarter of public-company-related to of rate Gross attributable a quarter at to of of $XX,XXX $XX,XXX the analyses particularly quarter quarter for Average the remains as the per excluding Sales in XXXX. investments slight quarter Analysis increase reducing compared IFRS $X our XXXX as is quarter. compensation. COVID-related million technology the for X%, the million retention an of lower platform to particularly notably expenses certification approximately XXXX challenges Total second space, well aforementioned second churn XX,XXX grew quarter X%, above standard and Core to $X.X

is was are as million As $XXX.X a $X.XX XXXX. majority loss per of million with the $X.XX $XX.X Adjusted or business. XXXX in share million, million cloud was compared cents or operating second cash software quarter of second $XX $X.XX XXXX per of in was share the loss compared to share, XXXX. second second million, typical of June $X.XX second compared the quarter second Operating quarter a and dollars approximately of second million $XX.X quarter any our to loss to in a loss the XXXX. of of $XX.X was in the quarter the the in XXXX quarter compared net expenses reminder, $XX.X vast the of million Cash were quarter or in share, headcount $XX.X second Adjusted of XXXX. Net $XX.X million as to the XXXX. in in equivalents related million XX, quarter or $XX.X

reported in XXXX range want to Jurgi’s are $XX reiterate $XX.X to inorganic do organic worsened revenue high and XX materially committed in Despite with are second full following XXXX. revenue now for our constantly Demand investments. to note, full we expect visibility, shareholders based Furthermore, translates objectives previously fundamentals for is range our be sustainability, the continued to or remain the be our we of trends turn core June our guidance, business, healthy. half. currency guide rates. reiterating XX% range year and growth theme million our million. to to overall not our that we presented I respect XX% also And headwinds level to of have Turning of year in a competence and growth shift diligent FX underlying the Of since our material our original this on between FX in given

put profitability maximize runway years, review the with and next the profitability currently our an optimization on regards on profitability. flow research that towards have bridging cash in development to our am cash flow eye share pleased efforts turn are to and based I as cost well numerous being of and pathway us conducted spend to our efficiency we corporate capital strategies, in With updated the cash long-term as conclusions planning sufficient structure recently and place with our in particular our We to productivity runway enhance over aim initiatives generation extending and and self-sustainability. our a comprehensive and exercise, on envision our implementing said, from with breakeven. of capital hand we several that placing to toward

driving remain balancing while on the ambitions, will on keeping investments efforts superior focused Our eye a required returns. our cadence of growth achieve focused to

your in have mandate. SOPHiA’s I in I morning. forward And Thank mentioned Jurgi. of call made of next to in we am the looking many to the as to Day at New back earlier, time York over should many XXXX you Fortunately, ability Jurgi turn upfront aid our investments will for dual month. this meet so seeing now this you Investor

Dr. Jurgi Camblong

Ross. you, Thank

of on second and of continue solid our the optimistic some platform our half fiscal that augment analytics the Despite about macro which continue to we current launches remain the growth customer As and predictive product and capabilities our increased to journey of we space. from look footing. will continued unique drive are challenges, we with transform of to We global to our in believe year, adoption SOPHiA’s usage we the the health and care. customer leadership using world data power AI new of

amount just already, have we tremendous accomplished we’re started. While a getting

questions. you hope operator, Day to Before place questions, Thank New that I want take there. remind taking joining XX again for September on now is call today. I to Investor City. SOPHiA’s in York We the And everyone we’ll call see open our you to

Operator

our Savant Morgan Tejas question And will Instructions] with Stanley. first [Operator from come

Unidentified Analyst

This Neil on Tejas. [ph] for is

factoring talked visibility the seeing the And into the the about you direction new through HRD in impact? and can strong such we here you think major partners range the out along you’re year. break net Ambry, FX should business of and pipeline other quarter half, the second should guidance the some know, AstraZeneca about for with the with through wins as half on based last you second takes phasing So puts the of revenue increased and on how

Dr. Jurgi Camblong

revenue will on and or for could then let on side. Yes, not the impact I any Ross expect take question bookings, regarding your you question. will the comment thank the I you

we which in type would HRD becomes more on side, the see by overall in U.S. the seeing signature in more the And say quarter. So over the and oncology more healthy and and lab. the booking more the like bookings stable, important definitely the demand last applications particular, we effort. we’ve of terms I in of seen such And demand start on central

further have Ross, if the revenue on well us develop the revenue want know good enable mid as we I term. should to indeed in grow that don’t this you to side. So long hope

Ross Muken

you. Thank

obviously was so to So FX, change the be with the around reported that really biggest quarter had right, revenues. the this material to swing factor related guidance, we that continues to respect

from think or would utilization back the conservatively organic relatively for of you it perspective, say about year. If the I modeled a core we’ve half

QX year, And so say no real seasonally in point right, albeit just was remind we you revenue it HRD would demand is the that our push, is first had your the up expected change typically in the of the clients would underlying, new the curve of phasing, time strongest any I part for quarter. To of that to set the predicted going start, the typical on year. takes the part to back which given some to I

quicker of I that variability be bit probably the model, is HRD. just biopharma a expect bigger but revenue a see we to relative is point say than say we the swing recognition continue more related the We because of probably would possible do from the size would to case. I business ultimately, around HRD we perspective, to Pharma uptake It we have contracts, have those our of where right. a

have as challenged -- the in of that we’ve business of as to and of say, was I’m And take I us to that consideration also, say year talk Turkey for that sure to our Jurgi piece would a model the and on will other the we’ve have things we’re, last a for would of that later so one few back year, of projected we’ll quite And maybe bit then so end a quarter. elements number recognizing, some is I from the -- into could we upside. the competent and of to your degree we lead get piece, tried another one, relatively rest conservatively

Unidentified Analyst

in you those lower erosion see give us shifting value by enable it. signs regions such you to demand you. some the of on to budgets, the And your conversations as of of seeing Got FX. proposition progressing? macro how Thank presented Considering any tightening Can some and platform Europe. customer signals volatility cost Are are you’re the customer bioinformatics? know starting particularly in color given or you

Dr. Jurgi Camblong

you for Tejas. question, the Thank

EMEA a a we consumption-based while if overall, is, given that user So trials, quarter, telling player, materially down and been then which the cloud it’s so has our Turkey, of which at because revenue, in as impact stable reimbursement we’re being of look consumption. this right, FX, Turkey Ross our a proxy about, is impacted less basically like was

given It in platform, way. adoption the be well we forward-looking we So adoption our this we Ross sign stable. And very now central continue in leaders we’re believe indeed cautious And to said, be right, as on expect EMEA as cannot I NORAM, with the to prudent see make a LATAM, may in growth. precision your more decelerated. stronger the our on gives forecast, APAC solution application but can this because that, apps, we platform of maybe don’t of accelerate private expects favor cost, the some been as Tejas. well it hospital for we that any and the to but think, with effective into markets our be And the point, cost a being that we to us medicine

Ross Muken

no increasingly that. then receive the significant way, consumption they can scale one Obviously, obviously add upfront allow in doing, and our investments, of and consume. And would I players a they CapEx, up as obviously advantage revenue what adopt right? technology model so they is no we are other to capital-efficient really pretty can to point for the

as say, relative to in the now watch And so And but Turkey. our of you closely, on with market would steady no I and the of obviously quite seen things healthy core markets. we’ve again, highlighted are, we’ll what the macro exception signs

Unidentified Analyst

last Great. And me. one for

some quarter presented by hospital in diagnostic few impacts space the pointing there know, labor staffing You are and this peers shortages.

dispersed, geographically you to the is impacts business business? those have temporary ongoing quite your XQ any seen or in While of

Dr. Jurgi Camblong

core maybe are Tejas. far, right, treating cancer. that severe academic so recap, people right? are suffering So who nothing one diseases our a as primarily from the centers, So And are such clients basically as

that right, Those and good past we And seen in hospitals they equipping the their as COVID. efforts so serve well, have at so themselves as with been could their very have sustain patients.

is the maybe a widely impacting centers as sense, this impacted others hospitals. described, in of they certain community maybe academic in as And core position these serving are so not while are you being more

Operator

Julia with will Our question next come Qin JP Morgan. from

Julia Qin

launches for Starting runway, how between any extend gross you areas you leverage? R&D, the And impacting deprioritizing? I’m margin, expect or with And wondering see to XXXX. versus runway you said are at R&D, least you expansion the what new cetera, cash sales until prioritizing et that just you marketing, the wondering do see greatest where potentially do any going forward? product cash

Dr. Jurgi Camblong

and let on develop Thank you, Julia. Ross the I start afterwards will side. gross margin

capabilities. new come. On even X as a I important years applications deploy so actually And to in made think that now investments, the as really us years already we we years platform last our great over the side, HRD. big these momentum application quite get could the we’ve made And on we over the mentioned, enable core quickly XX to efforts such investments core right, year, capabilities over have in have it’s

invest if So algorithmic R&D terms technology need, any capabilities capabilities. to our we don’t in and like, you deeply of have further strengthen current necessarily to

And and in Ross investments then aspects. flat. will some and I that marketing the expect our color be G&A indeed, So will sense, pretty you you on sales should give that let other

Ross Muken

Jurgi. Thanks,

put of of toward. margins that that this operating other favorable. for continue relative gross But the obviously, quarter-to-quarter. progress to and aiming will quarter so And I in and on investments business, about around think a key bit the we’re some been the overall, to talked bump help. trend already has term, expenses, we’ve that Jorge significant side margin again, software-like albeit projects made long items had again could a the on good focused remain very But So we pretty mix there, number dependent this

start And we’re our we’re would G&A I to as projects operating the are public CarePath, HRD revenue those leverage on efforts. so like company generate focused not costs we’ll and Obviously, seeing very biopharma get line. where also insignificant. say

we’ve to several that to see a spending so continue the there level, for would we’ve to headcount I us sort over both bit. bring And that real sustain sales made And next then quarters. I marketing of should the you would efforts down and and and some made, expect say R&D certainly investments

you And yield all think just of sequential trend so leveraging, continued a X about frankly, basis. as those improvement, lines, should that hopefully on least at

balanced So movements lines I it’s underlying again, bit more period, again, fairly and just the and think one going investments. see on of the leverage think But those be the a cycling any I projects sort some dependent from to across in the could others, portfolio. versus of of you of given

Dr. Jurgi Camblong

the with experienced for And team IVDR Julia, and path. us the regulatory the plans conversations significantly our and right? industry invested, could approval you go standards to as being quite say, maybe it’s on to that aspect year, may well But last on on this develop maybe to we have our G&A. the was over the recruit and set have we we biopharma to industry. IVD with potentially so in last with entertain one platform strategic to where as our the remember, to an the We decision, had, And had the last quality G&A. a

in as plan. now have in we need sense, our we investment was well, the headcount like so that And this strategic

so team you a And in expansion this the future. expect shouldn’t further of

Julia Qin

initial terms And ASCO and are to Is community you pipeline revenue a at trial Super basis? component we has CarePath, still ramp? And it? is Great. then CarePath, about color could you think the or the should a this on monetization be other do there what of paper what And DEEP-Lung I for the helpful. enrollment feedback on how trending. will wondering been was little give CDx your clinical how Or analysis biopharma think deal within if just model? in out bit biopharma us your current read more

Dr. Jurgi Camblong

to Thank give beyond aspect, around the with during would say, monetization share value that But CarePath me, year. you level too will insight been not around we we to indeed, my are later expectations. share very discussions hesitate you not have ASCO. the able a Sure. would beginning pharma it’s you. of excitement while with of we on been, of excited, of but I only Julia, well we have or lot algorithms they the we the they see are far. any being unique can the algorithms next with our that the so almost has to want our positive as we decentralized DEEP-Lung-IV we a data to would to may data CarePass and perceived of data I we clinical having producing revisit We year this and the to But the are serving I and And demonstrate say been market, as being for early collect that value data including that, to expecting so for being were seen technologies, identify their pharma the well, that we and surprise, compute say as that was well the was kind of pharma. if this for where although our are this a realization. a have themselves as wouldn’t anything have confirm

very positive. So very and excited

XX% that immunotherapy. basically regarding the of or sites and being soon XXX We able patients have to basically number an about accuracy announcement on the DEEP-Lung not whether an have of idea data the patient of already joining extending will have we computed will study, where respond a with we’re are to as the effort, well respond

data to I for important comes say, the would an but this leveraging industry when forward, it for So SOPHiA, better step be and could [indiscernible]. on overall multimodal

Julia Qin

one terms of that a the opportunity terms any volume ASP? in on revenue and Congrats Last CE-IVD any you customers me. approval maybe mix, Can talk unlocks? you CE-IVD incremental and compared little in about great. from expect recent bit approval. And the existing do much how significance That’s of implications your with changes to

Dr. Jurgi Camblong

Julia. Yes. Thank you,

we change is but I in information, for IVDR. where I to framework been rationale that. has for on IVDD that was first and able, there players. well a pretty will towards indeed want you the Europe which core and the the applications this more new deadline the And called for summer importance what this SOPHiA RUO on or X There platform move big to have for the to IVDD share are is oncology the indeed, going indeed pass move cannot is any And a revenue strong been And the environment. but highlighting deadline doing now like high, And on people applications. explain some effort. from in to IVD these customers regulation thank you are environment, as So you IVDR a being the expected primarily, a standards excuse are regulated fulfill all side, of of with given to me,

this this a to And we definitively board. expect the We’re in transition. happen trend across is helping

think we’re environment. now made And more the -- in regulated with so to our I this we investments customers accompany pretty well-positioned

Ross Muken

to ASP our And something as to once ceases it results to your year. headwind this significant regulated products, it’s would trend obviously relative expect to think, washed such higher is you away currency a favorably currently. have Obviously that been So look you currency, than right? this But ASP. expect mind, continue I add. in be you to nice for at progress just see to maybe Julia, question, unfortunately, we’ve yes, just by keep obviously a to us actually continued frankly, see ASP very quickly, quarter, would And but

Operator

next Mark come will BTIG. with Our question Massaro from

Vidyun Bais

for is Mark. Vivian This on

are maybe pathology, existing data And timing prioritization customer you’ve I demand you Any spoken digital modalities sensing from of additional So think about fronts these on as these? sense on customers? previously proteomics. how pursuing or such

Dr. Jurgi Camblong

the for Vivien. you Thank question,

we our I So genomics, really are now So basically the right capabilities, radiomics modalities longitudinally which and in CarePath. say, and would right? genomics data on focused are core combining radiomics,

around As say, ASCO to a CarePath lot got discussions responding I while of a this we was had the lot mentioning, of, really at Julia, capabilities.

volumes player So that, now the what well as they do with include we And a I potential I despite as today, of do new capabilities a go expect, value radiogenomics as the proteomics. it’s have to be in mixing the say, go you we sense, you multimodal data. tech indeed increasing the more need as And our the disciplined. in is right? said the have core genomics but sequencers. multi-model And for up sequencing So sector. that that players are well in and positively if like, gathering see up, as around will see broader industry realized up, we we Right informatics pathology maybe that, as well see as now, data well, capabilities would to past think focus, we in evolution very some

Vidyun Bais

Perfect. just have And maybe just the you longer you margin could From there of term? one targets any gross quick remind us follow-up. improvement,

Dr. Jurgi Camblong

take this can Ross, you one?

Ross Muken

Sure.

making and And So obviously, the we’ll sort the we’ve cover probably expect linear data of if see we’re medium talked that, don’t you said the space, threshold of be at numbers software-like higher. of quarter towards would for a we say term, to striving XX% Analyst business. albeit you would in margins more Day, this in perfect this of progress as target. look I about our trend. a traditional sort tech I as level sort say, Obviously at the at again XX% earlier, at to we’re companies the I it across will obviously slightly

business quite focused again, And But very other there. they’re biopharma, as mix happy of will on our margins progress business. high have somewhat the determine ultimately, also this leverage elements traditionally data drive to that we’re we’re with as continually so us businesses. overall, for ways And in the

Operator

will question next with from Our Dan Instructions] come Cowen. Brennan [Operator

Kyle Boucher

Kyle is traction Dan. want talk to your for just about U.S. I in on the This

maybe you with about Could labs large the reference U.S. discuss here. large your impact on margins? us traction opportunity pretty increasing through been just traction in and the positive help and You’ve revenue future think

Dr. Jurgi Camblong

Kyle. Yes. Thank you,

day built academic model, I to are HRD upon our labs. including right, decentralized. stable every and some enable So solid the and execute where mentioned, But is reference And where has as the a indeed capabilities we APAC, market in region LATAM say, in more our NORAM. EMEA. nicely we regarding NORAM were a grow would it’s questions model, the in beyond, been growing. was And which traction penetrating centers, And us there we traditional

Ross Muken

these but these about can as can’t new obviously, give you to we’re quite on excited build. margin around think the quite sort they progress current revenue ARPU, significant And happen, color our assume wins we And the are impact, so of making you relative right? we or we’re existing the continues And customers. momentum to

on I at front. we Hopefully say, And would so a share date. later tuned more will that stay to have

Kyle Boucher

the terms. here clarifying then just growth guidance constant one on in currency Great. maybe And

note, should or impact So the then the XX% that constant growth, does to the COVID? of the for about COVID rest think And that on year? include really how impact we XX% currency the of exclude

Dr. Jurgi Camblong

we the COVID, down, we’re FX. with So year-on-year XX% first, solid was and the FX Kyle, XX% COVID impact so business, a -- the and or as performance. without And on COVID, we COVID aside putting around grew XX% with which a year-on-year, with so the going core then right, were reminder,

been but say, So terms currency of constant and of lira. because not highly Turkish because and reporting of solid, would currency, the the has in the business the impacted, I euro

the on you on more Ross, XX%, want to So give do growth? guidance, color the XX% some

Ross Muken

Yes.

down And continued So trended end I say, range again, we impact guide would ties of back we and far the reflected, so that the many, end COVID, to would slightly it like it right? or year. of for contribution captures of at we’ve still that the by upper original to So the trend the trend almost And had us, year-to-date gave. above. XX% the COVID that’s has to to down, assumed XX% no right?

about year, half a sort performance. factors should of back the with QX. we’ve happy underlying the in And help of talked number that the in we’re particularly again, so us And of

as has was And been currencies. board updated, number obviously so FX-related, about think which range purely the the for of you it the across us core with a painful quite

mix said that And prior. of to and some consistent negative captures is so XX% COVID also we’ve what the XX% with again,

Operator

to I remarks. over This conference back would the closing to session. turn like question-and-answer concludes our Jurgi Camblong for any

Dr. Jurgi Camblong

to Investor again forward we good the you there. you of very And getting in thank So a looking our Have are call for we see in September, day. as New joining to all some Day York much are closer today.

Operator

Thank concluded. now has for attending you today’s presentation. conference The

You may now disconnect.