SDGR Earnings Prediction
The chart below shows how SDGR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SDGR sees a +0.02% change in stock price 10 days leading up to the earnings, and a -4.25% change 10 days following the report. On the earnings day itself, the stock moves by +0.68%. This data can give you a slight idea of what to expect for the next quarter's release.
SDGR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
88.32M
19.14%
150.26%
Gross Margin
72.61%
-6.48%
44.53%
Operating Margin
-23.45%
-41.32%
-87.90%
Net Margin
-45.54%
10.05%
-57.86%
EPS
-0.55
-27.91%
5.77%
No Data Available
SDGR Earnings Analysis
Schrodinger Inc Corporation (SDGR.O) Earnings Conference Call
Positive
Software Revenue Success: 2024 was an exciting year for Schrödinger, with exceeded software revenue expectations and a new drug discovery collaboration established with Novartis.
Software Revenue Growth: Total revenue for the year was $208 million, with software revenue growing by 13% to $180 million, and fourth quarter software revenue growing 16% to $80 million.
Customer Growth Metrics: The number of software customers with an annual contract value of greater than $5 million increased from 4 to 8, and those with ACV of greater than $1 million increased from 27% to 31%.
ACV Growth and Retention: Total annual contract value (ACV) increased by 24% to $191 million, with a 100% retention rate for software customers with ACV of at least $500,000.
New Product Launches: The company plans to release several new products and solutions in 2025, including predictive toxicology technology and enhancements to biologics discovery technologies.
Drug Discovery Revenue Increase: Schrödinger's drug discovery revenue increased to $8.7 million in Q4 2024, compared to $5.5 million in Q4 2023, due to milestones received and amortization of upfront payments.
Software Revenue Projections: The company expects software revenue growth in 2025 to be in the range of 10% to 15%, with drug discovery revenue projected to be between $45 million and $50 million.
Strategic Growth Opportunities: The strong performance in 2024 leaves Schrödinger well positioned operationally, financially, and strategically entering 2025, with many opportunities for continued growth.
Negative
Revenue Decline Analysis: Total revenue for 2024 was $208 million, a decrease from $217 million in 2023, indicating a decline in overall financial performance.
Drug Discovery Revenue Decline: Drug discovery revenue dropped significantly to $27 million in 2024 from $58 million in 2023, highlighting a substantial reduction in this segment.
Increased Operating Loss: Operating loss for the year increased to $209 million compared to $177 million in 2023, reflecting worsening financial health.
Net Loss Comparison: Net loss for 2024 was $187 million or $2.57 per diluted share, a stark contrast to a net income of $41 million or $0.54 per diluted share in 2023, indicating a severe downturn in profitability.
Increased Financial Strain: Total other expense was a loss of $18.5 million compared to a loss of $1.9 million in Q4 last year, showing increased financial strain.
Gross Margin Decline: The overall gross margin declined from 77.6% in Q4 2023 to 72.6% in Q4 2024, indicating reduced profitability due to higher costs.
R&D Expense Increase: R&D expenses increased by 11% to $202 million, contributing to the overall increase in operating expenses, which rose by 7.3% compared to 2023.
Liquidity Decline: Cash and marketable securities balance decreased to $367 million at the end of Q4 2024 from $469 million at the end of Q4 2023, indicating a decline in liquidity.
Software Gross Margin Decline: The company expects software gross margin to decrease to 74%-75% in 2025, down from 79.5% in 2024, suggesting ongoing cost pressures.
SDGR FAQs
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SDGR Earning Call Sentiment
Schrödinger, Inc. (SDGR) Q4 2024 Earnings Call Transcript
SDGR.O
4.42%Positive
Despite a strategic collaboration with Novartis, the financial performance shows a decline in revenue and increased losses. The Q&A revealed management's avoidance of specifics, particularly about revenue from the Novartis partnership and the predictive toxicology timeline, indicating uncertainty. The lowered drug discovery guidance and decreased cash reserves further contribute to a negative outlook. Although software revenue grew, the overall sentiment leans negative due to financial declines and management's unclear responses.
