Schrodinger(SDGR) - 2024 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 2024 increased by 19.1% to $88.3 million, compared to $74.1 million in Q4 2023[3] - Software revenue for Q4 2024 rose by 16.0% to $79.7 million, driven by increased hosted revenue from large customers[3] - Drug discovery revenue for Q4 2024 was $8.7 million, a 58% increase from $5.5 million in Q4 2023[3] - Full-year 2024 total revenue decreased by 4.2% to $207.5 million, while software revenue increased by 13.3% to $180.4 million[7] - Drug discovery revenue for the full year was $27.2 million, down 53% from $57.5 million in 2023[7] - Total revenues for the year ended December 31, 2024, were $207.539 million, a decrease of 4.9% compared to $216.666 million in 2023[35] - Software products and services revenue increased to $180.365 million in 2024, up 13.3% from $159.124 million in 2023[35] - Drug discovery revenue decreased significantly to $27.174 million in 2024, down 52.8% from $57.542 million in 2023[35] Profit and Loss - The company reported a net loss of $40.2 million for Q4 2024, compared to a net loss of $30.7 million in Q4 2023[6] - The company reported a net loss of $187.123 million for 2024, compared to a net income of $40.720 million in 2023[35] - Non-GAAP net loss for the year was $(191,394,000) in 2024, compared to $(157,755,000) in 2023[41] Expenses - Gross profit for 2024 was $132.083 million, a decrease from $140.692 million in 2023[35] - Research and development expenses rose to $201.785 million in 2024, an increase of 11% from $181.766 million in 2023[35] - The depreciation and amortization expense increased to $6,159,000 in 2024 from $5,552,000 in 2023[39] Customer Metrics - Schrödinger's total annual contract value (ACV) increased by 23.7% to $190.8 million in 2024[10] - The number of customers with an ACV of at least $5 million increased from four to eight[10] - Customer retention rate for customers with an annual contract value (ACV) of at least $100,000 is calculated based on the number of active customers from the previous fiscal year[26][27] - Active customers are defined as those with an ACV of at least $1,000, excluding low-cost software users[28] Cash Flow and Investments - Cash flows from operating activities resulted in a net cash used of $157,368,000 in 2024, an increase from $136,733,000 in 2023[39] - Net cash provided by investing activities was $148,836,000 in 2024, down from $193,034,000 in 2023[39] - The company issued common stock in an ATM offering, raising $8,868,000 in 2024[39] - The company reported a cash and cash equivalents balance of $162,657,000 at the end of 2024, slightly up from $161,066,000 at the end of 2023[39] Future Outlook - For 2025, software revenue is expected to grow by 10% to 15%, with drug discovery revenue projected between $45 million and $50 million[13] - Forward-looking statements indicate expectations for continued investment in research and growth in software licensing and drug discovery programs through 2025[31] Collaborations and Programs - Schrödinger ended 2024 with 13 ongoing programs eligible for royalties, up from 12 the previous year[11] - The company has tracked a cumulative number of collaborators for drug discovery since 2018, focusing on those collaborations that have generated revenue[30] Accounts Receivable - The company experienced a significant decrease in accounts receivable, net, amounting to $(169,700,000) in 2024, compared to $(10,039,000) in 2023[39] Equity Investments - The company recorded a gain on equity investments of $147,213,000 in 2023, which was not repeated in 2024[39]