Schrodinger(SDGR) - 2023 Q4 - Annual Results

Software Revenue and Growth - Q4 2023 software revenue increased by 43.6% to $68.7 million compared to Q4 2022[5][7] - Full-year 2023 total revenue grew by 19.7$216.7 million, with software revenue up 17.4% to $159.1 million[9][13] - Software gross margin improved to 87$33 million and $35 million[1][16] - Software products and services revenue grew 17.4$159.124 million in 2023, up from $135.578 million in 2022[38] Annual Contract Value (ACV) and Customer Metrics - Total annual contract value (ACV) for software increased by 9.7$154.2 million in 2023, with Top 10 customers' ACV also up 9.7% to $51.0 million[12][15] - Number of customers with at least$1 million in ACV increased to 27 from 18 in 2022, while customers with at least $500,000 in ACV grew to 54 from 52[12][15] - Annual Contract Value (ACV) is tracked for each customer, with contracts billed annually or upfront, and is not a replacement for GAAP revenue[31] - Customer retention rate is calculated for customers with an ACV of at least$100,000 or $500,000, comparing active customers year-over-year[32] - Active customers are defined as those with an ACV of at least$1,000, excluding low-cost PyMOL software users[33] Drug Discovery Revenue - Drug discovery revenue for 2023 was $57.5 million, up 26.8$25.0 million milestone from BMS in Q1 2023[9][13] - Drug discovery revenue increased 26.8% to $57.542 million in 2023, compared to$45.377 million in 2022[38] Financial Performance and Profitability - Gross profit for 2023 was $140.692 million, a 39.3$101.022 million in 2022[38] - Net income attributable to Schrödinger common stockholders was $40.720 million in 2023, a significant improvement from a net loss of$149.186 million in 2022[38] - Net income for 2023 was $40.72 million, a significant improvement from a net loss of$149.19 million in 2022 and $101.22 million in 2021[42] - Non-GAAP net loss for 2023 was$157.76 million, compared to $142.86 million in 2022 and$90.40 million in 2021[43] - Net loss per share attributable to common stockholders for 2023 was $0.57 (basic) and$0.54 (diluted), compared to $2.10 (basic and diluted) in 2022 and$1.42 (basic and diluted) in 2021[43] Operating Expenses and R&D - Operating expenses for 2023 increased by 28.4% to 318.1 million, primarily due to higher R&D costs, with 2024 operating expense growth expected to range from 8% to 12%[9][18] Cash and Liquidity - Cash, cash equivalents, restricted cash, and marketable securities totaled 468.8 million at the end of 2023, down from $502.5 million at the end of Q3 2023 but up from$456.3 million at the end of 2022[13] - Cash and cash equivalents increased to $155.315 million in 2023, up from$90.474 million in 2022[40] - Total assets grew to $802.955 million in 2023, compared to$688.587 million in 2022[40] - Net cash used in operating activities for 2023 was $136.73 million, compared to$119.68 million in 2022 and $70.67 million in 2021[42] - Net cash provided by investing activities for 2023 was$193.03 million, a substantial increase from $90.02 million in 2022 and a net cash used of$16.81 million in 2021[42] - Net cash provided by financing activities for 2023 was $9.05 million, up from$2.11 million in 2022 and $7.95 million in 2021[42] - Cash and cash equivalents and restricted cash at the end of 2023 were$161.07 million, compared to $95.72 million at the end of 2022 and$123.27 million at the end of 2021[42] Clinical and Research Progress - Company anticipates initial data readouts from its first two patient studies in late 2024 or 2025 and plans to progress a third program to the clinic in 2024[3][22] Share Metrics - Weighted average shares used to compute net loss per share for 2023 were 71.78 million (basic) and 74.99 million (diluted), compared to 71.17 million (basic and diluted) in 2022 and 70.59 million (basic and diluted) in 2021[43]