NASDAQ$SDGR

Schrodinger Inc/United States · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

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.

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%.

Headline financials

Total Revenue

$35.3M

Previous: $42.6M-17.1%
EPS

-$0.52

Previous: -$0.86+39.5%
Software Gross Margin

73.0%

Previous: 76.0%-3.9%
Capital Expenditures

-$6.44M

Previous: -$10.9M+41.1%
Free Cash Flow

-$44.6M

Previous: -$72.9M+38.9%
Net Income

-$38.1M

Previous: -$62M+38.5%
Operating Income

-$68.4M

Previous: -$56.2M-21.8%
Gross Profit

$17.7M

Previous: $23.6M-25.0%
R&D Expense

$51M

Previous: $46.8M+8.8%
Stock-Based Comp

$12.4M

Previous: $12.7M-2.0%

Revenue & EPS history

Schrodinger · Revenue · Quarterly

$35.3M

Q3 2024-17.1%vs Q3 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 updated its 2024 full-year financial guidance.

Tailwinds

  • 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.

Headwinds

  • 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.

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 Q3 2024

Historical avgQ3 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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