Schrodinger(SDGR) - 2024 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 2024 was $35.3 million, a decrease of 17$42.6 million in Q3 2023[3] - Software revenue increased by 10% to $31.9 million in Q3 2024, up from$28.9 million in Q3 2023[3] - Drug discovery revenue fell to $3.4 million in Q3 2024, down 75$13.7 million in Q3 2023[3] - Total revenues for the three months ended September 30, 2024, were $35,290,000, a decrease of 17.1$42,569,000 for the same period in 2023[22] - Software products and services revenue increased to $31,884,000, up 10.3$28,904,000 year-over-year[22] Operating Expenses and Losses - Operating expenses rose to $86.2 million in Q3 2024, an increase of 7.9$79.8 million in Q3 2023[3] - The net loss for Q3 2024 was $38.1 million, an improvement from a net loss of$62.0 million in Q3 2023[3] - Operating expenses increased to $86,150,000 for the three months ended September 30, 2024, compared to$79,832,000 in the prior year, reflecting a rise of 7.5%[22] - The net loss for the three months ended September 30, 2024, was $(38,136,000), compared to a net loss of$(62,024,000) for the same period in 2023, representing a 38.5% improvement[22] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $398.4 million as of September 30, 2024, down from$468.8 million at the end of 2023[3] - Cash and cash equivalents as of September 30, 2024, were $160,416,000, an increase from$155,315,000 at the end of 2023[23] - Total assets decreased to $669,296,000 as of September 30, 2024, down from$802,955,000 at the end of 2023, a decline of 16.6%[23] - Total liabilities decreased to $219,871,000 as of September 30, 2024, compared to$254,397,000 at the end of 2023, a reduction of 13.5%[23] - The accumulated deficit increased to $(485,325,000) as of September 30, 2024, compared to$(338,418,000) at the end of 2023[23] Financial Guidance and Collaborations - Schrödinger updated its 2024 financial guidance, expecting software revenue growth between 8% and 13%[5] - The company announced a collaboration with Novartis, receiving $150 million upfront and potential milestone payments up to$2.3 billion[1] Non-GAAP Metrics and Adjustments - Non-GAAP net loss for the nine months ended September 30, 2024, was $174,221, compared to a non-GAAP net loss of$134,760 for the same period in 2023[25] - Non-GAAP net loss per share for the nine months ended September 30, 2024, was $2.40, compared to$1.88 for the same period in 2023[25] - The company experienced a fair value adjustment loss of $27,763 for the nine months ended September 30, 2024, compared to a loss of$61,869 in the same period last year[24] Other Financial Activities - The company reported a net cash provided by investing activities of $125,361 for the nine months ended September 30, 2024, compared to$252,648 in the prior year[24] - The company issued common stock upon ATM offering, netting $8,691 during the nine months ended September 30, 2024[24] - The company had a significant increase in accounts receivable, netting$52,711 for the nine months ended September 30, 2024, compared to $36,069 in the prior year[24]