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Jun 30, 2024
Schrodinger Q2 2024 Earnings Report
Schrödinger reported strong second quarter results, with significant revenue growth and advancements in both software and drug discovery segments.
Key Takeaways
Schrödinger, Inc. announced strong financial results for the second quarter of 2024, featuring a 35% increase in total revenue to $47.3 million. Software revenue grew by 21% to $35.4 million, and drug discovery revenue more than doubled to $11.9 million. The company is progressing its proprietary therapeutics pipeline, with initial clinical data expected from lead programs in 2025.
Total revenue increased by 35% to $47.3 million compared to Q2 2023.
Software revenue grew by 21% to $35.4 million, driven by new and existing customers and multi-year deal renewals.
Drug discovery revenue increased significantly to $11.9 million, primarily from milestone revenue from collaboration programs.
Schrödinger launched a major initiative to expand the use of computational tools for predictive toxicology, supported by a $10 million grant from the Bill & Melinda Gates Foundation.
Schrodinger
Schrodinger
Schrodinger Revenue by Segment
Revenue by Segment
Software Products and Services Revenue
CapyFin.comDrug Discovery Revenue
CapyFin.com Forward Guidance
Schrödinger updated its 2024 full-year guidance for software gross margin and operating expense growth and maintained its other financial guidance.
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.
- Operating expense growth in 2024 is now expected to range from 8% to 10%.
- Initiation of dosing in a Phase 1 clinical study of SGR-3515
- FDA has granted SGR-2921 Fast Track Designation
Challenges Ahead
- Software gross margin is now expected to be slightly lower than 2023 and in the range of 2022 based on the effect of the research grant from the Bill & Melinda Gates Foundation.
- Cash used for operating activities in 2024 is expected to be above cash used for operating activities in 2023.
- Software revenue is expected to range from $32 million to $34 million for Q3 2024.
- Net loss for the second quarter was $54.0 million, compared to net income of $4.3 million for the second quarter of 2023
- Operating expenses were $84.1 million for the second quarter, compared to $74.9 million for the second quarter of 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income