The earnings call reflected strong revenue growth and strategic progress in partnerships and R&D, particularly in software and drug discovery. However, there were challenges, including a decline in professional services revenue, lower software gross margins, and increased net loss. Despite these issues, the company's overall outlook for 2025 remains positive.

Company Guidance

During the call, Schrödinger's management provided several key metrics and guidance for the fiscal year 2025. For Q1 2025, Schrödinger reported a total revenue of $59.6 million, which marks a 63% increase compared to Q1 2024. Software revenue was $48.8 million, reflecting a 46% growth year-over-year, while drug discovery revenue was $10.7 million, significantly up from $3.2 million in Q1 2024, largely due to milestones from collaborative programs and upfront revenue from a Novartis collaboration. The company maintained a strong financial position with a cash and marketable securities balance of $512 million, up from $367 million at the end of December 2024, primarily due to collections from contracts and a payment from Novartis. Schrödinger reiterated its full-year 2025 guidance, expecting software revenue growth between 10% and 15%, drug discovery revenue in the range of $45 million to $50 million, and a full-year software gross margin between 74% and 75%. Operating expense growth is projected to be under 5% for the year, and the company anticipates a significant reduction in cash burn compared to the previous year.

Strong Revenue Growth

Total revenue for Q1 2025 was $59.6 million, a 63% increase compared to Q1 2024. Software revenue increased by 46% to $48.8 million, driven by larger customer renewals and expansions. Drug discovery revenue was $10.7 million, compared to $3.2 million in the previous year.

Strategic Partnerships and Collaborations

The company recognized revenue from its collaboration with Novartis, and expanded other collaborations, contributing to the growth in drug discovery revenue.

Progress in R&D and Clinical Programs

Initial Phase I data for SGR-1505, a MALT1 inhibitor, is expected in mid-June. Other programs, including CDC7 inhibitor SGR-2921 and Wee1/Myt1 co-inhibitor SGR-3515, are progressing well, with data expected later in the year.

Advancement in Software and Predictive Toxicology

The company released a software update with major enhancements and is advancing its predictive toxicology initiative, aiming for a beta release later this year.

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Schrodinger (SDGR) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SDGR Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 30, 2025	2025 (Q2)	-0.84 / -	-0.74	―	―	―
May 07, 2025	2025 (Q1)	-0.73 / -0.82	-0.76	-7.89% (-0.06)
Feb 26, 2025	2024 (Q4)	-0.42 / -0.55	-0.32	-71.88% (-0.23)
Nov 12, 2024	2024 (Q3)	-0.63 / -0.52	-0.86	39.53% (+0.34)
Jul 31, 2024	2024 (Q2)	-0.83 / -0.74	0.06	-1333.33% (-0.80)
May 01, 2024	2024 (Q1)	-0.74 / -0.76	1.75	-143.43% (-2.51)
Feb 28, 2024	2023 (Q4)	-0.40 / -0.32	-0.39	17.95% (+0.07)
Nov 01, 2023	2023 (Q3)	-0.69 / -0.86	-0.56	-53.57% (-0.30)
Aug 02, 2023	2023 (Q2)	-0.51 / 0.06	-0.67	108.96% (+0.73)
May 04, 2023	2023 (Q1)	1.28 / 1.75	-0.48	464.58% (+2.23)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SDGR Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 07, 2025	$23.72	$23.88	+0.67%
Feb 26, 2025	$21.70	$22.25	+2.53%
Nov 12, 2024	$19.54	$22.25	+13.87%
Jul 31, 2024	$22.28	$22.60	+1.44%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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