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Mar 31, 2024
Schrodinger Q1 2024 Earnings Report
Reported first quarter financial results with software revenue increasing and announced FDA clearance of IND application for SGR-3515.
Key Takeaways
Schrödinger reported a decrease in total revenue due to a large collaboration milestone payment in the previous year, while software revenue increased. The company announced FDA clearance of its IND application for SGR-3515 and expects initial data readouts for SGR-1505 and SGR-2921 in late 2024 or 2025.
Total revenue for the first quarter was $36.6 million, compared to $64.8 million in the first quarter of 2023.
Software revenue for the first quarter increased 3.7% to $33.4 million, compared to $32.2 million in the first quarter of 2023.
FDA cleared the investigational new drug (IND) application for SGR-3515, its Wee1/Myt1 inhibitor.
Phase 1 clinical studies of SGR-1505 and SGR-2921 remain on track, and initial data is expected in late 2024 or 2025.
Schrodinger
Schrodinger
Schrodinger Revenue by Segment
Revenue by Segment
Software Products and Services Revenue
CapyFin.comDrug Discovery Revenue
CapyFin.com Forward Guidance
Schrödinger maintained its financial guidance for the fiscal year ending December 31, 2024. For the second quarter of 2024, software revenue is expected to range from $31 million to $33 million.
Positive Outlook
- Software revenue growth is expected to range from 6% to 13%.
- Drug discovery revenue is expected to range from $30 million to $35 million.
- Software gross margin is expected to be similar to software gross margin for the full year 2023.
- Operating expense growth in 2024 is expected to range from 8% to 12%.
- The company expects to initiate a Phase 1 dose-escalation trial of SGR-3515 in patients with solid tumors in the third quarter of 2024.
Challenges Ahead
- Cash used for operating activities in 2024 is expected to be above cash used for operating activities in 2023.
- Total revenue decreased due to a large collaboration milestone payment that favorably impacted revenue in the first quarter of 2023.
- Software gross margin decreased to 76% for the first quarter, compared to 78% in the first quarter of 2023, largely due to higher technology expenses.
- Operating expenses were $86.3 million for the first quarter, compared to $76.2 million for the first quarter of 2023, primarily due to higher R&D expenses.
- Net loss for the first quarter was $54.7 million, compared to net income of $129.1 million in the first quarter of 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income