All right. Well, good morning, everyone. My name is Marta Nazarovets. I'm from the Growth Life Science, Tools and Diagnostics team. Welcome to the second day of JP Morgan Health Conference. It is my pleasure to introduce our next company, SOPHiA GENETICS. As a reminder, after the presentation, we will have a Q&A session, and if you wanna ask a question, you can raise your hand or you can enter it online. With that, I will turn it over to Jurgi.
Thank you very much, Marta. Good morning, everyone. Pleasure being here. I'm Jurgi Camblong . I'm the CEO of SOPHiA GENETICS, and today I'm going to present you the SOPHiA story, and I'm going to elaborate our 2022 performance as well as what will be our 2023 focus areas. Before I start, as usually, I may be presenting some forward-looking statements, so I want you to take notice of this cautionary notice. SOPHiA was funded in 2011 with the promise of creating a world of data-driven medicine. Basically moving from hypothesis-driven medicine to data-driven medicine.
Today, I'm pretty proud to say that we've been not too bad in our mission and being already able to impact on the lives of over 1.2 million patients by computing their genomics profiles while supporting with our tech platform a network of 750 connected healthcare institutions across 70 countries. This was very important for us because in our story, the democratization of data-driven medicine was about equal access across countries to these type of technologies to serve equally every patient around the world. We're today almost 500 employees. We're being headquartered in Switzerland as well as in Boston. We went public in the Nasdaq in July 2021.
When we started SOPHiA, it was obvious for us that in the world of cancer and inherited disorders, there would be a new paradigm shift, and this paradigm would require data so that we would objectivize decision-making, both for the diagnosis of patients, for the disease progression, as well as the therapy selection. Across the years, these are the two disease areas where we're being active ourselves and where we're being focused to deploy our tech capabilities and as you will see, supports two type of customers, clinical customers that were our first type of customers, and more recently, biopharma customers. When we started in 2011, cancer, inherited disorders, precision medicine, genomics were very early. At the time, we were really convinced that this type of data modalities would transform our understanding of those diseases. However, there was one challenge.
We would foresee that because of the nature of the diseases and the needs of the hospitals on being able to diagnose patients suffering from somatic cancer tumors, from Imm Onc , from hereditary cancer, from inherited disorders, from cardiology, there wouldn't be a single genomics workflow that would be able to be used in clinical routine by every hospital. We had foreseen a world where basically this production of data would be extremely complex in the hospitals, where a combination of sequencers and library prep solutions would create a huge heterogeneity of data, which is a problem we're thinking about clinical actionability and decision-making.
One of the first mission of SOPHiA has been to fix that by developing smart algorithms that would sit in our cloud and be used by our customers, post data production, to be able to clean up the data, identify the signal, annotate the signal, and by doing so, point to actionable clinical relevant outcomes. While we have been very successful at doing that, when we started SOPHiA, we knew that the same challenge of heterogeneity would apply to other data modalities. That would be a must to better understand how patients were evolving in their disease journey, as well as how they were responding to treatments. In that sense, we had seen what today we call the multimodal world. A world where beyond genomics, other data modalities like proteomics, digital pathology, radiomics, eventually metabolomics, would be required to take clinical decisions routinely in the hospitals.
We knew that as it had been the case and it would be the case for genomics, the workflows that would be used by the hospitals in producing these data modalities would as well create a same heterogeneity. Think about it, beyond the single heterogeneity on one modality, it was clear that by combining these different modalities, its complexity would further increase. Now, I'm very proud to say that as we had envisioned this future of data-driven medicine, and we started addressing first the genomic needs of hospitals, we had architecture our platform to be up for this challenge, and to be able not only to harmonize genomics data, but as well other data modalities. By doing so, by combining these multi modalities, bringing now personalized clinical relevant outcomes to practitioners. Today, this is where we are.
Today, we are in the generation 2 of the SOPHiA DDM platform. This year, we've been publicly presenting what we have been doing, in particular in the context of non-small cell lung cancer with what we call the CarePath module, where we've been following 1,000 patients around the world in 30 centers to be able to offer oncologists the ability to visualize how the disease progression of patients would evolve as they would be treated, how the patients would cohort versus each other, and eventually as well, build predictive algorithms that obviously require further studies to confirm the clinical outcome with prospective studies. The reason I insist on this slide is that the world we had seen in the past when we funded SOPHiA is what we are releasing today.
As you will hear at the end of my presentation, this will be a strong focus area as well for SOPHiA in 2023. Now taking a step back, SOPHiA today is not only being used in 750 centers in 70 countries, but as you can see, our distribution has been pretty good, right? Despite we started in Europe and been primarily selling in Europe until end of 2018, we've been able to deploy our capabilities globally very quickly, which tells you about the scalability not only of our platform, but as well the scalability of our operating model that enable us to land and expand customers around the world. Speaking about customers, I would like to highlight that we're addressing two type of customers, clinical customers and biopharma customers.
In our journey to create this flywheel effect of data, to create the network and the technological capabilities, we started in the clinical market. This is where I'm going to spend most of my time in my presentation. We did that with the understanding that if we would own such a network, we would be in a unique position afterwards to serve the biopharma customers. I would like to highlight towards the end of my presentation what we have been doing in 2022 and how successful we've been. In the clinical market, we are supporting a variety of actors, which are primarily university hospitals, comprehensive cancer centers, reference labs, specialty labs, and central labs. We can support them for a variety of disease indications, and I wanted to highlight here the most important ones.
Somatic oncology, Imm Onc, hereditary cancer, rare and inherited disorders have been our focus over the last years. As you may have seen a recent press release this morning, we will now get access to a new technology for liquid biopsy, and we're very excited about this promise. This is how we operate supporting our clinical customers. As I said, these are tier one hospitals and centers around the world. We are today serving 750 that are equipped with next-generation DNA sequencing capabilities. We estimate the current potential market of 5,000 hospitals that are today being equipped with next-generation DNA sequencers to be able to routinely practice genomics testing.
While this is a status today, obviously with the new sequencers that are coming to the market and new capabilities, we expect not only the volume of data to increase in this field, but on top of that, we expect more hospitals to adopt next-generation DNA sequencing, and all of them will need a platform like SOPHiA. The way we operate is having these hospitals producing the data locally, and as they do so, they control the data as well. The data are being loaded into our platform. In the platform, we have powered up the data computing with our smart algorithms that I refer to, which enable us to harmonize the data, to identify the mutations, to classify the mutations, to basically ease interpretation, which is always done by the pathologist or by the geneticist in the lab.
The more data are being computed in the platform, the more interpretations are being done, these are network effects, the smarter becomes our algorithm, the better we can prepackage the data for the next wave of patients. While this is important, I would like to highlight as well that over the years, supporting 750 hospitals around the world, we've been able to build a very comprehensive set of applications in the platform, actually dozens of them. When it comes even to somatic oncology, today we can help some hospitals with comprehensive genomic profiling capabilities, so enabling them to test 500 genes, while we can help other hospitals which maybe have less sequencing power on addressing the same somatic oncology needs on the panels of 50 genes.
While we have been developing these applications, we took advantage of that to land the 750 customers I've been talking about, right? What I want to highlight to you is that while until now we've been very much focused on landing customers and creating the network, from now on, we're going to focus a lot as well on expanding our customers. This data, I think, tell everything. Today, part of our network of 750 customers, only 50% of them are using one or more application. 37% are using two or three applications. 13% are using four or more applications of SOPHiA DDM. As you can understand now, we have a very captive customer base to whom we can sell additional applications, and by doing so, bring them new capabilities.
Being a consumption-based model, the more applications are being used, the more patients are being computed in the platform, the more revenue we generate. Along those lines, I would like to drive you through the journey of one of our customers, which we landed in 2019 with already at the time an enterprise sales, which means that we didn't enter with one single application. We won this customer who was starting in genomics, and actually is one of the biggest central labs in the world with already five applications. By the time on these five applications, they would move to routine, and then they would add additional applications. You can see how the number of patients that they would compute in our cloud platform would evolve, right?
We moved from only 200 patients in 2019 to almost 10,000 patients in 2022. This tells you how this land and expand model can work. It's quite unique and new in the healthcare sector, but it's very common in the tech sector. If you look to what has been making the success of Datadog or Salesforce or Snowflake, it was really about this land and expand method. Of course, this requires being very close to the customers, understanding their needs, and having a decent set of applications that are ready to be deployed into those centers. As you can see that these type of customers are growing quickly, what we realize over time is that the largest become our customers, the quicker they grow.
Taking a step back, in 2019, the average revenue we were generating for our top 20 customers were $385,000. In 2022, this move up to $675,000. As you can see, the customers who today are generating over $100,000 revenue at SOPHiA have been growing from 2019 to 2022, with a 31% compound annual growth, versus 19% for the customers who are generating less than $100,000. Which probably signify that the largest become our customers, the more they benefit from our platform, the more competitive they become, the more samples they attract.
When it comes to the commercial team, I think it's important to highlight that we are ripe, we know how to operate, and we have about 50 quota-carrying salespeople, which are sales executive landing new customers and customer success growing the customers, adding new applications around the globe. We have as well, a very sophisticated team of 40 pre-sales and post-sales experts who are in charge as well of the implementations and the professional services we offer to our customers. While we primarily sell directly, we sell as well through distributors and through partners. I think it would be important to highlight as well along the years, the ecosystem of partnership we've been building around SOPHiA. These are partners with whom either we build content, either we sell or we co-market solutions.
Today, I'm really excited to share that we have expanded over last months and days, three partnerships. One of them is with Microsoft. You all know Microsoft. We're running our data in Azure, and actually we're being among the, let's say, fastest growing partners of Microsoft over the years. Now we've in December signed a strategic agreement with Microsoft, where we're going to go beyond, where we're going to leverage on their commercial people as well as on their marketing muscles, and where we're going to leverage as well on Microsoft technology, in particular in our multimodal journey, to be able eventually to extract information from documents. This is super exciting, I would like to highlight another expansion of a partnership today.
I'm really proud to say that we've been expanding our partnership with Agilent, with whom we're going to work now together on a new comprehensive genomic profiling solution, where basically Agilent is going to leverage on their backbone technology together with SOPHiA DDM capabilities. We expect a very good adoption of this technology from 2023. Last but not least, I'm really thrilled to announce today the expansion of a new category of partnership for SOPHiA in the principles of what people would call open innovation. This is the one with Memorial Sloan Kettering. We had announced that we signed a partnership with MSK, where we would get access to 70,000 clinical genomics informations.
Today, I'm proud to say that we signed an agreement where we're going to be able to leverage on their MSK-ACCESS technology, which are being already clinically proven to be extremely good for liquid biopsy testing. This is a technology that we're going to leverage on in the clinical market, but maybe eventually sooner in the biopharma market, in the context of clinical trials, which give me the opportunity to move to our second type of customers. While for the first years at SOPHiA, we've been really focused on supporting the clinical customers and creating this network of 750 connected healthcare institutions, more recently, we've started working with biopharma companies, leveraging on our technology, on the data we're gathering in the clinical market, as well as leveraging on our network.
This strategy has been further accelerated in 2022, where we had really good traction along the line of a 3D strategy, which are data, development, and deployment. The data aspect enable us to work with pharma companies pre and post-approval of drugs. The development enable us to work with pharma companies in CDX-like projects, and the post-approval enable us to impact while collaborating with the pharma in the real world, in the clinical world, by deploying new testing capabilities into our network of 750 customers. This year we've been announcing some very important partnership with AstraZeneca in development deployment. A recent one in November with Boundless Bio, which is a very innovative biotech company, still private, working on developing drugs that are targeting extrachromosomal DNA, which basically are circular DNAs that are present in 20% of cancers.
We've more recently signed an agreement with [SpurAxle] on the data side, on top of the one with Lily. Today, I'm really proud to say that along the line of our 3D strategy with AstraZeneca, we've been expanding our partnership from deployment and development to data. Beyond what we have been doing with HRD scoring for PARP inhibitors, we're now leveraging on the data that we've been gathering in the context of CarePaths of the generation tool of SOPHiA DDM for non-small cell lung cancer to offer Astra the ability to get access to this technology and to this data in the context of their own efforts. Now that I have addressed our strategy and our performance in the clinical and the biopharma market, I'm going to move to the financials.
These KPIs are the traditional ones that we share in our earnings calls. The size of the network is something that I encourage you to look at. It's very important. As I said, in the clinical world, now we are addressing over 750 customers which are using routinely every month, our platform, which are the 380 you can see on the side. To be clear, the 380 are using the platform routinely every month. The 750 are the one that we have put in the network in total. We've been over the last 12 months computing 260,000 clinical genomics profiles, over 20,000 a month, almost 25,000 a month actually.
We've been doing that, respecting, I would say, and being very disciplined on having strong margins that we've been sharing in our Q3 earnings, which were between 63% and 65%. We still maintain our guidance that we shared in Q3, despite I would say some challenges with FX around $44 million in reported revenue for the 2022 exercise. Last but not least, we've been growing, and we maintain that guidance as well in 2022 organically between 30% and 35%. I encourage you to stay tuned as we're going to disclose our Q4 numbers in March, when we will have our earning calls. Last, I would like to insist on a very important point and very important considering the current environment.
SOPHiA end of Q3 at $190 million in cash. While I think this is important, we all can recognize that the environment has changed, and I want to tell you that we have taken as well ourself the necessary cost management actions to be able to put us on a path to profitability in the spirit of sustainable growth. With that, I'm going to end with what will be our focus for 2023. First will be somatic oncology. I haven't been talking about HRD today, but for the one who have been following us in the earnings calls, this has been a capability where we've been growing triple-digit last year or we expect to grow significantly as well in 2023. Comprehensive genomic profiling will become a very important one.
I mentioned the efforts we've been doing with Agilent for a solution that will come to the market in 2023. On the biopharma side is going to be further enhancing our strategy around data, which has proven to be very effective as you saw. Putting in the market the MSK-ACCESS technology powered by SOPHiA, which we expect to be a significant value proposition for the biopharma customers in the clinical trials. Last but not least, the multimodality, where this year it was the first year we're talking about that, where we've been having a tremendous success around the DEEP-Lung-IV studies on non-small cell lung cancer stage 4. Where in less than a year time, we've been able to deploy these multimodal capabilities in 30 cancers around the world, including Mayo Clinic.
Where by doing so, we've been following thousands of patients with 200 clinical data modalities, including imaging data modalities and genomics data modalities. With that, I'm going to thank you and ask Ross to join me so that we can address your questions.
All right. Thank you for the great presentation. Let's start with the Q&A. As a reminder, if anybody has a question, you can raise your hand or enter it online. Thinking about the clinical business, how do you expect revenue and ASP to trend in 2023 given the macro headwinds, especially FX and customer funding constraints?
I will start with historicals, and then I will let Ross answer directly to your question. What has been nice with our model is that over time, the data complexity that we would compute would get bigger, right? We've seen a trend in increased ASP. If you like the way we're growing our business in the clinical market is by having the adoption of more customers, more application per customers, and over time ASP going up. That's a trend that we think is going to continue. Ross, I don't know if you wants to add any additional color.
Right. Obviously, we're not providing a formal update on 2023 here. We'll do so with our Q4 results. I would say if you looked at our third quarter, we did show core growth acceleration into what is a challenging environment. I think if you take a step back and you look at, you know, the macro, typically cancer, which is a majority of our business, is pretty resilient, right? If you think about us touching mainly tier one academic medical centers around the world, as well as large pharma companies, again, those groups tend to be quite resilient in a number of different environments. I think we've been quite fortunate this year to avoid many of the challenges I think we've seen across the complex and the ecosystem.
You know, certainly, we're mindful and you know, thankfully in our business, we have huge degree of visibility. You know, we stated at the Analyst Day, we have over 90%, sort of look through into the 2023 numbers already, right? I would say on our end, we feel quite good about the trajectory and again, relative to what we said in Q3, I think our momentum actually accelerated in the second half of the year just in terms of new business environment as well.
I think there, you know, you're not just seeing obviously stability in the kind of regular way business, but you're seeing some of the large central labs and specialty labs and others really look to us as a partner to help them from the cost side of things and labor efficiency, and also to be able to be competitive in terms of launching new applications. I would expect that trend to continue as well into 2023.
All right. Also related to clinical business, how big is the market opportunity for CarePath? What is the customer feedback so far? Beyond NSCLC, what other indications are you looking at?
The customer feedback has been excellent, right? I think it's pretty unique to probably unprecedented, having someone being able to deploy these type of capabilities in 30 centers in a year time, starting from scratch and being able to enable the centers follow over 1,000 patients for 200 clinical data points. Beyond non-small cell lung cancer, I've already presented data at ASCO on triple-negative breast cancer, on kidney cancer, and on brain cancer. You should expect that we will have similar efforts for those disease indications and eventually other ones depending on the pharma needs beyond the clinical needs.
When it comes to the clinical market, I would say it's still a nascent market, but if you think about it, today in the clinical world, you have about 5,000 hospitals which have the capabilities of producing genomic data, while you have hundreds of thousands of hospitals which have the capabilities of producing imaging data. In this multimodal capabilities, it's extremely important to follow longitudinally patients. As we do so, it might be that as we compute imaging data, we're as well expanding the size of our network.
Okay. Now moving to the biopharma business. How should we expect the adoption ramp of DDM CarePath in biopharma compared to clinical?
SOPHiA DDM CarePath for us has been a way to further address the needs of the clinical market. By doing so, if you like, enable them to do research, but as well capture data that we can use in the pharma market, right? As you have seen from our logos, the data angle is the one that is growing the fastest. You can expect that CarePath will be a very important piece in our pharma story.
You think it'll be similar to clinical?
The model will be different. It's not going to be pay per use, and maybe I let Ross give you some color on, you know, financially how one should think about it.
Yeah. You know, for us, the pharma business is very exciting. It's quite different, right, contractually than our clinical business in that the contract sizes tend to be much larger, right? They're multiple year duration, but they're not pay-per-use, right? You have sort of a almost SaaS component to them, and then you typically will also have other service related items in terms of the revenue. There, we tend to have pretty good visibility, but certainly, it's, you know, because of the size and chunkiness of those contracts, we've been, I would say, generally conservative with how we've modeled and included them in our forecast.
Okay. You mentioned the oncology portfolio saw the biggest growth this year.
There are some questions, Marta.
Oh, sorry. Go ahead.
Thank you. Yeah, it's great to hear the commitment to getting to cash flow positive. Any guidance you guys could give us in terms of timeframe or revenue levels at which we should expect that?
Yeah. What we shared at the Analyst Day was obviously in terms of incremental revenue. We're expecting greater than 55% drop down, right? You can do some math relative to the growth rates we've shared. I would say ultimately on our side, you know, we've really wanted to balance sort of what we're seeing on the revenue and growth side, where we're seeing some inflections in a number of our businesses with sort of operating discipline, right? We've really taken a deep look at our fixed cost infrastructure, systems, you know, some G&A headcount, professional service spend, some of our other IPO and public company related costs that were inflated when we came out. We're really, I would say, spending quite a bit of time making sure those elements are more and more measured.
Ultimately on our side, right, again, we're very different than many of the other businesses people look in the life science space. You know, our main cost is people. We don't have almost any CapEx, right, as a software player. It's really trade-offs of where you're deploying your human capital and headcount. In that, you know, I would say we're really trying to titrate, you know, accelerating that growth rate with making sure we are being disciplined and sustainable on that side. Certainly we feel quite confident, as Jurgi shared, with our current capital position, and we're certainly mindful of the environment, and we're managing to be able to, you know, be self-sustainable.
That's very helpful. Thanks. Should we think about the cash on the balance sheet being enough resources to get you to that cash flow positive?
Yeah. Again, what we've said is we certainly can manage the business to live within our means, right? On that, you know, certainly, at different periods, again, you know, our business is starting to see some acceleration inflection in other areas. You know, I think it's dangerous to box yourself in a bit on giving an exact quarter and exact date, because then you all of a sudden start managing your business to that when you have, again, lots of different levers to pull and create shareholder value.
Ultimately, I would tell you the entire business, all 500 of us at SOPHiA are incredibly committed to be responsible with the capital that we've been given and make sure that the returns we're driving, particularly on our R&D projects, which is predominance of where we've spent our capital, will deliver solid results.
Very helpful. Thanks.
Any other questions? Okay. Perfect.
Just a technical question. I'm in the imaging space, and I'm curious. It's relatively easy to capture sort of flatter data and digital data. 3D data is not. In the imaging space, are you bringing in sort of just report-based data, or are you actually internalizing and considering the core imaging information?
The data are being produced locally, and then they are being transferred to us. From the CT scan, from the PET scan, and from the MRI, we apply some deep learning techniques, if you like, to get some signal out of the data, right? This signal is being used in our multimodal models. The one we highlighted, for example, in non-small cell lung cancer, where we have today a AUC of 80% on the first 1,000 patients that are being run there with towards response to immunotherapy, was in the prediction of who will respond and not will respond, wouldn't be feasible if we wouldn't have this deep learning algorithm capabilities that are extracting the signal from the CT scanners.
Any other questions? All right. Thinking about the partnerships, how significant will the revenue contribution be from partnerships with MSKCC, Boundless Bio, and then the one you announced earlier today? And what are the margin implications?
Well, I think we're not going to give any concrete number, right?
Just a qualitative comment.
We're learning over time, obviously. Well, Boundless should contribute in 2023. MSK eventually will contribute in 2023, but you can think about a further contribution in 2024. Which was the last one you mentioned?
The one you announced today.
Agilent. Agilent should start contributing in 2023.
I think the important thing to just keep in mind around these partnerships, these are very large, successful organizations, right? That are doing fairly comprehensive, I would say, partnerships and arrangements with us. For us, it's incredibly exciting because again, to the question on cash, right? On how do we drive operating leverage or how do we get toward break even? You know, having a commercial force like Microsoft behind you with the Azure cloud sales team or having the ability for your product to be purchased with Microsoft credits, this is big, right? If you look in the software space, you get a lot of operating or sales leverage for that. I would say, you know, we're incredibly excited about what we can do with Microsoft there, as well as on the NLP side, which Jurgi mentioned.
I think being able to work with a company the scale and success of Agilent, right? That has such a broad portfolio, it's again, evidence that we can bring value to so many different partners in the ecosystem and touch so many different points. Lastly, on MSK, for me, you know, that relationship and the expansion there for us has really a huge potential, right? You think about the liquid biopsy market and where it is. Obviously, there's been some players in the U.S., been incredibly successful. Ex-U.S., it's very limited, right? It's very hard to address. To be able to decentralize that asset and bring it to patients all over the world, I think is incredibly exciting.
The CGP side or access side, impact side as well, I think for us, certainly as you can think about it's stacking up these incremental menu and revenue opportunities so that we not just have great visibility for 2023, but the ability to get us to 2025 and beyond and sustain, you know, I would say, what is a very strong growth rate.
I guess, Marta, what Ross is telling you is that while it's very concrete, it's 2023, i t will be much bigger over time, right? It's just the beginning, but these are not partnerships which are wishful thinking. We will see revenue numbers from 2023.
Okay. Related to partnerships also, how do you choose your potential partners? Like what synergetic value do you prioritize?
That's a very good question.
Yeah.
We always try not to do what others do well, and indeed that is synergistic to us. Definitively, partnerships in genomics are very important for us because there are new needs that are emerging, and so if we can add our platform on top of that, we benefit from the technologies that others have put in the market. Imaging is important because today, beyond liquid biopsy is the primary data modality that is being used to follow longitudinally patients in cancer while they are being treated. digital pathology might be the future, proteomics might be the future, the tech players are very important, right? With the new sequencers going on board, with the new data modalities that will move from clinical research to, excuse me, from academic research to clinical routine, I think we're going to see an explosion of data.
This will require having a very solid tech backbone and working hand in hand with, in our case, Microsoft, so that we can make sure the platform is scaling.
Okay. I guess moving more to commercial. Compared to a year prior, what does your current customer base look like in terms of geography? What about in terms of clinical versus biopharma? You sort of touched it during your presentation.
Want to take this, Ross?
Sure. I think certainly we had a really strong year across the board in terms of new logos and expansion. Frankly, in all of our geographies, I would say with the exception of Turkey, and EMEA, which was probably a market that was a bit more challenged than we expected, the rest of the world actually was quite strong. Certain regions, I would say, outperformed. You know, for us, LatAm and APAC, really, we saw pretty substantial inflection in both of those markets above and beyond what we expected and had great performance in terms of new logos and expansion.
You know, I think in NorAm, or North America, you know, we've really gained traction with several of the larger players in the space. I think there's a lot more for us to do there. I think that was one of the big questions. You know, when we came public, you know, there was this whole debate, you know, centralized, decentralized, and we kept saying, we can support and work with all, and we see a world in which everyone benefits, right? I think what we really started to see in 2022, particularly in the North American market, was that, you know, we can serve these larger players. We can bring them value. We can partner with them to achieve their goals and work synergistically.
There's just some elements of the market that will always be centralized, and there's some elements of the market that increasingly will be decentralized. In our world, you know, what we really wanna do is enable all, right? I think in that we've shown in North America as well, which was a question that we can do that.
Which geographic areas do you view as under-penetrated and thus presenting the biggest opportunity?
U.S. definitely, right? U.S. is the market where we started about three years ago, where now we realize that the land and expand model is the same as the one we've been exposed to in Europe. It's definitely the market where we expect to grow the fastest in the next years.
I would also say, obviously you saw some new logos today from us on the pharma side. You know, I'm really proud, and I know Jurgi shares that view o f how our team has done there.
Yeah.
You know, the bookings performance and in turn the revenue performance you'll see this year and next, I'm quite enthused about, and we shared that obviously at the Analyst Day, in terms of the incremental contribution. I think we're just getting started. I think our ability to really work with, you know, some of the biggest names in oncology on the pharma side, we're really just scratching the surface. I think that's one where look out for, you know, continued updates there because, as Jurgi shared for 2023, I think this will be a good year for us on the biopharma side.
Maybe along the lines, Marta, for the pharma, it was very important that we had this network of hospitals with working with around the world because they see us as a unique player to be able to get access to a more diverse data set than other providers.
That's fair. What do you view as your normalized churn rate? Do you anticipate it to be higher maybe in the near term? If so, why?
You want to take it?
Yeah. I would say if you look over time for us, typically our churn is average, kind of low to mid-single digits, which I would say for a consumption-based player is excellent, which is why our net dollar retention over time has been so strong. It's one of the key reasons as well is just the pacing of ramp-up of a healthcare customer. You know, in the current environment, I would say it's marginally toward the upper end of the bound. Some of that frankly, is also currency, right? Because you're comparing last year's revenue at a much higher EUR in some cases to current revenue, which was been, you know, significantly impacted by FX. Ultimately, if you look at the trends across the business on that side, our customers remain incredibly sticky.
For the most part in terms of our large and meaningful customers, we rarely lose anyone of significance. I think there, you will continue to see entities around the world choosing SOPHiA as their preferred partner. Frankly, you know, if you look at how much bigger we are than even the number two player in our space, you know, certainly not yet declaring victory, but I think we've certainly, and Jurgi has really set us in a position where, you know, we can continue to win and win all over the world.
Sounds good. We are at time. Thank you so much.