NASDAQ$SDGR

Schrodinger Inc/United States · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported first quarter financial results with software revenue increasing and announced FDA clearance of IND application for SGR-3515.

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.

Headline financials

Total Revenue

$36.6M

Previous: $64.8M-43.5%
EPS

-$0.76

Previous: $1.75-143.4%
Software Gross Margin

76.0%

Previous: 78.0%-2.6%
Capital Expenditures

-$4.1M

Previous: -$3.58M-14.4%
Free Cash Flow

-$58.8M

Previous: $126M-146.8%
Net Income

-$54.7M

Previous: $129M-142.4%
Operating Income

-$67.4M

Previous: -$30.5M-121.1%
Gross Profit

$18.9M

Previous: $45.7M-58.7%
R&D Expense

$50.6M

No prior period
Stock-Based Comp

$12.2M

Previous: $10.9M+12.3%

Revenue & EPS history

Schrodinger · Revenue · Quarterly

$36.6M

Q1 2024-43.5%vs Q1 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Schrodinger · $13.7M total across 1 segment · Q3 2023

  • Drug Discovery
    $13.7M+11.3%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-2.2%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+1.8%

Avg return

30 days after

42%

11 / 26 earnings

Positive

+31.4%

Q4 2021

Best reaction

-29.9%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+1.9%+23.0%
Q4 2025+8.3%+5.9%-6.1%
Q3 2025-5.8%-7.4%-10.8%
Q1 2025+0.6%+0.2%+3.8%
Q4 2024+2.5%-2.9%-8.0%
Q3 2024+13.1%-5.1%+7.8%
Q2 2024+0.1%-15.7%-6.8%
Q1 2024-4.9%-1.4%-11.7%
Q4 2023-23.1%-23.7%-18.4%
Q3 2023+15.3%+27.5%+49.7%
Q2 2023-26.9%-27.3%-29.8%
Q1 2023-5.1%-6.4%+22.3%
Q4 2022+14.5%+21.7%+16.8%
Q3 2022-14.6%-15.6%-29.2%
Q2 2022+1.5%-4.9%-19.1%
Q1 2022-5.5%-10.5%+1.5%
Q4 2021+31.4%+45.4%+36.4%
Q3 2021-16.1%-15.6%-31.6%
Q2 2021-5.1%-12.1%-0.1%
Q1 2021-6.8%-4.3%+19.4%
Q4 2020-29.9%-29.7%-20.8%
Q3 2020+12.4%+15.8%+39.6%
Q3 2019+12.4%+15.8%+39.6%
Q2 2020-2.5%-2.4%-24.2%
Q1 2020-8.1%+0.5%+3.0%
Q4 2019-14.6%+8.3%+1.5%
Q2 2019
Q1 2019
Q4 2018
Q3 2018

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