In This Article:
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Total Revenue: $59.6 million, an increase of 63% compared to Q1 2024.
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Software Revenue: $48.8 million, representing 46% growth.
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Drug Discovery Revenue: $10.7 million, increased from $3.2 million in Q1 last year.
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Software Gross Margin: 72%, down from 76% in Q1 2024.
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Overall Gross Margin: 52%, similar to Q1 2024.
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R&D Expense: $46 million, down from $50.6 million in Q1 2024.
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Sales and Marketing Expense: Increased by 2% to $10.4 million.
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G&A Expense: Increased by 1% to $25.8 million.
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Total Operating Expenses: $82 million, down from $86 million in Q1 2024.
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Net Loss: $60 million or $0.82 per share, compared to $54.7 million or $0.76 per share in Q1 2024.
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Net Operating Cash Flow: $144 million, compared to cash use of $39 million in Q1 2024.
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Cash and Marketable Securities: Increased from $367 million to $512 million at the end of Q1.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Schrodinger Inc (NASDAQ:SDGR) reported a strong Q1 2025 with total revenue of $59.6 million, a 63% increase compared to Q1 2024.
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Software revenue grew by 46% to $48.8 million, driven by larger customer renewals and expansions of multiyear contracts.
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Drug discovery revenue increased significantly to $10.7 million, bolstered by milestones from collaborative programs and upfront revenue from the Novartis collaboration.
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The company is advancing its predictive toxicology initiative, with plans for a beta release to select customers later this year.
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Schrodinger Inc (NASDAQ:SDGR) maintains a strong financial position with a cash balance increase to $512 million, supported by collections from contracts and upfront payments.
Negative Points
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Professional services revenue declined by 31% due to the completion of service contracts from prior periods.
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The software gross margin decreased to 72% from 76% in Q1 2024, impacted by the revenue mix associated with the Gates grant.
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Drug discovery cost of revenue increased, driven by high costs associated with the Novartis collaboration and increased research staff allocation.
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The company reported a net loss after taxes of $60 million, or $0.82 per share, compared to a net loss of $54.7 million in Q1 2024.
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There was a loss of $13 million in the change in fair value of equity method investments, compared to a gain of $8 million in Q1 2024.
Q & A Highlights
Q: Can you provide insights on the upcoming presentation of your MALT1 inhibitor, SGR-1505, and expectations for its clinical data? A: Karen Akinsanya, President of R&D Therapeutics, explained that they are excited to share an update on SGR-1505 at the European Hematology Association meeting. The focus will be on safety, pharmacokinetics, pharmacodynamics, and initial signs of activity in B cell malignancies. This is an early read, and more data will be shared in June.