Schrodinger(SDGR)2022-05-05 00:35Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $48.7 million, a 51% increase compared to Q1 2021 [13] - Software revenue reached $33.1 million, representing a 26% growth year-over-year [13] - Drug discovery revenue was $15.6 million, up from $5.8 million in Q1 2021 [13] - Gross profit was $28 million, a 73% increase over the same period last year [14] - The company recorded a net loss of approximately $34.5 million for Q1 2022, compared to a loss of approximately $0.5 million in Q1 2021 [14][15] - Cash and cash equivalents at the end of the quarter were approximately $529 million, down from $579 million at the end of 2021 [15] Business Line Data and Key Metrics Changes - Software revenue growth was driven by increased adoption from existing customers and new customer additions [13] - Drug discovery revenue included $4 million from collaboration with Bristol-Myers Squibb and $9 million from preclinical milestones recognized earlier than expected [14] Market Data and Key Metrics Changes - The company expects total annual revenue to be in the range of $161 million to $181 million, reflecting 17% to 31% growth over 2021 [17] - Software revenue guidance for the year is projected between $126 million and $136 million, indicating 11% to 20% growth over 2021 [17] - Drug discovery revenue is expected to range from $35 million to $45 million, reflecting 42% to 82% growth over the previous year [18] Company Strategy and Development Direction - The company is focused on accelerating the growth of its software business and advancing drug discovery programs [5] - A new collaboration with Eonix aims to enhance the discovery and design of materials for lithium-ion batteries, marking the first equity-based collaboration in the materials science sector [10][11] - The company is committed to advancing its wholly-owned drug discovery programs, with several candidates expected to enter clinical trials [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and ability to innovate while maintaining a solid revenue foundation [10] - The company is optimistic about the impact of its computational platform on drug discovery and materials science [9][10] - Management reaffirmed guidance for the full year, indicating confidence in achieving projected revenue despite potential fluctuations [16][17] Other Important Information - The company is continuing to invest in R&D and infrastructure to support growth [14] - The acquisition of XTAL is expected to enhance the company's capabilities in structural biology [15][49] Q&A Session Summary Question: Rationale for Eonix collaboration - Management highlighted the collaboration's goal of developing better batteries and the expected impact on advancing science and technology [30] Question: Drug discovery revenue cadence for 2022 - Management indicated that drug discovery revenue is not guided quarterly due to milestone timing variability, but the annual guidance remains [32][33] Question: Software revenue guidance and visibility - Management expressed confidence in the software revenue guidance, noting strong customer engagement and larger-than-expected renewals [40][61] Question: Retention rate and cash usage - Retention rate remains high, with management indicating continued investment in the platform and internal pipeline [77][78] Question: Update on sales team and large molecule traction - Management confirmed ongoing growth in the sales team and increasing traction with large molecule customers [83][86] Question: Growth prospects among existing customers - Management noted growth across both large and small customers, with significant potential remaining in large pharma accounts [90][94]