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Sep 30, 2024
Schrodinger Q3 2024 Earnings Report
Reported third quarter results, with software revenue increasing and total revenue decreasing compared to the prior year. The company updated its full-year financial guidance and announced a new collaboration with Novartis.
Key Takeaways
Schrödinger reported a decrease in total revenue for the third quarter of 2024, while software revenue increased. The company announced a multi-target research and licensing collaboration with Novartis, receiving $150 million upfront. Updated financial guidance for 2024 was provided, with increased confidence in software revenue growth.
Total revenue for the third quarter was $35.3 million, a decrease from $42.6 million in the third quarter of 2023.
Software revenue for the third quarter increased 10% to $31.9 million, compared to $28.9 million in the third quarter of 2023.
Net loss for the third quarter was $38.1 million, compared to a net loss of $62.0 million for the same period in 2023.
Schrödinger updated its 2024 full-year financial guidance, expecting software revenue growth to range from 8% to 13%.
Revenue by Segment
Forward Guidance
Schrödinger updated its 2024 full-year financial guidance.
Positive Outlook
- Software revenue growth is now expected to range from 8% to 13%.
- Drug discovery revenue is now expected to range from $20 million to $30 million.
- Software gross margin is 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.
- Operating expense growth in 2024 is expected to range from 8% to 10%.
- The company expects to add even more capital from the payments associated with the collaboration announced today.
Challenges Ahead
- Cash used for operating activities in 2024 is expected to be above cash used for operating activities in 2023, depending on the timing of cash received from collaborations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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