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Mar 31, 2020
Schrodinger Q1 2020 Earnings Report
Reported first quarter financial results with a year-over-year revenue increase and completed a successful IPO.
Key Takeaways
Schrödinger reported a 26% year-over-year increase in total revenue, reaching $26.2 million for the first quarter of 2020. Software revenue grew by 28% to $23.8 million. The company's net loss was $13.8 million, and they ended the quarter with $288.8 million in cash, cash equivalents, and marketable securities. The company completed its IPO, raising $209.6 million in net proceeds.
Total revenue reached $26.2 million, a 26% increase year-over-year.
Software revenue was $23.8 million, up 28% compared to the first quarter of 2019.
Drug discovery revenue increased by 11% to $2.4 million.
The company raised $209.6 million in net proceeds through its initial public offering.
Schrodinger
Schrodinger
Schrodinger Revenue by Segment
Revenue by Segment
Software Products and Services Revenue
CapyFin.comDrug Discovery Revenue
CapyFin.com Forward Guidance
While Schrödinger did not see material impacts to its business during the first quarter, certain market risks are beginning to emerge that could affect software growth and the timing of drug discovery revenues in 2020. The company views these risks as temporary and believes it has ample resources to manage its business effectively during this time.
Positive Outlook
- Company believes risks are temporary
- Company believes it has ample resources to manage its business effectively during this time
- Company does not envision a long-term impact on its ability to execute on its strategy.
- Continuing trend of increased adoption of physics-based solutions by pharmaceutical, biotechnology, and industrial companies
- Schrödinger released new software capabilities to expand the domain of applicability of its technology and improve upon the accuracy of its methods.
Challenges Ahead
- Some customers may experience budget pressures and potentially delay purchases
- Sales could be impacted by inability to engage with customers in person
- Crisis could also delay the progress of certain collaboration programs, particularly ones that are in clinical studies or preparing to enter clinical studies
- Market risks are beginning to emerge that could affect software growth.
- Market risks are beginning to emerge that could affect the timing of drug discovery revenues in 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income