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Dec 31, 2024
Schrodinger Q4 2024 Earnings Report
Schrödinger reported strong fourth quarter and full-year 2024 financial results, with total revenue increasing by 19.1% and software revenue growing by 16.0% compared to the previous year.
Key Takeaways
Schrödinger delivered a strong performance in Q4 2024, with total revenue reaching $88.3 million, a 19.1% increase year-over-year, driven by robust software revenue growth of 16.0% to $79.7 million and a significant 58% increase in drug discovery revenue to $8.7 million. Despite the revenue growth, the company reported a net loss of $40.2 million for the quarter.
Total revenue for Q4 2024 increased 19.1% to $88.3 million, compared to $74.1 million in Q4 2023.
Software revenue for Q4 2024 increased 16.0% to $79.7 million, primarily due to increased hosted revenue from large customers and new multi-year agreements.
Drug discovery revenue for Q4 2024 increased 58% to $8.7 million, driven by the recognition of milestones.
Net loss for Q4 2024 was $40.2 million, compared to a net loss of $30.7 million in Q4 2023.
Schrodinger
Schrodinger
Schrodinger Revenue by Segment
Revenue by Segment
Software Products and Services Revenue
CapyFin.comDrug Discovery Revenue
CapyFin.com Forward Guidance
Schrödinger expects continued growth in software revenue and drug discovery revenue for fiscal year 2025, with a focus on managing operating expenses and improving cash flow from operations.
Positive Outlook
- Software revenue growth is expected to range from 10% to 15% in 2025.
- Drug discovery revenue is expected to range from $45 million to $50 million in 2025.
- Operating expense growth in 2025 is expected to be less than 5%.
- Cash used for operating activities in 2025 is expected to be significantly lower than cash used in 2024.
- Software revenue for Q1 2025 is expected to range from $44 million to $48 million.
Challenges Ahead
- Software gross margin is expected to range from 74% to 75% in 2025, which is lower than the 80% reported for FY 2024.
- The company did not provide specific net income or EPS guidance for 2025.
- No specific guidance on capital expenditures or other non-operating expenses was provided.
- The forward guidance is subject to various assumptions, uncertainties, and risks.
- The company did not provide specific targets for customer retention or ACV growth for 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income