Business
Schrödinger Reports Strong First Quarter 2025 Financial Results
First Quarter Total Revenue of $59.6 Million, Software Revenue of $48.8 Million Initial SGR-1505 Phase 1 Clinical Data to be Presented in June Maintains 2025
About this update from Schrodinger, Inc.
[{"type":"text","content":"\nFirst Quarter Total Revenue of $59.6 Million, Software Revenue of $48.8 Million\n\nInitial SGR-1505 Phase 1 Clinical Data to be Presented in June\n\nMaintains 2025 Financial Guidance\n\n NEW YORK--(BUSINESS WIRE)--\nSchrödinger, Inc. (Nasdaq: SDGR) today announced financial results for the quarter ended March 31, 2025.\n\n“We are very pleased with Schrödinger’s performance in the first quarter of 2025, with strong software and drug discovery revenue growth. Our proprietary pipeline is progressing, and we are looking forward to reporting initial data from the Phase 1 clinical study of SGR-1505 next month,” said Ramy Farid, Ph.D., chief executive officer of Schrödinger. “More broadly, the pharmaceutical industry and even regulatory agencies are seeking to increase usage of computational solutions in R&D, and we continue to fortify our position as a scientific powerhouse in this field. With our growing software business and advancing pipeline of collaborative and proprietary programs, we believe we have a solid foundation that positions us for long-term growth.”\n\nFirst Quarter 2025 Financial Results\n\n\nTotal revenue for the first quarter increased 63% to $59.6 million, compared to $36.6 million in the first quarter of 2024.\n\n\nSoftware revenue for the first quarter increased 46% to $48.8 million, compared to $33.4 million in the first quarter of 2024. The increase was primarily due to early renewals by large customers as well as increases in hosted contracts and contribution revenue.\n\n\nDrug discovery revenue was $10.7 million for the first quarter, compared to $3.2 million in the first quarter of 2024. First quarter 2025 drug discovery revenue included the recognition of $5.7 million from the company’s collaboration with Novartis.\n\n\nSoftware gross margin was 72% for the first quarter, compared to 76% in the first quarter of 2024, primarily reflecting the costs associated with the company’s predictive toxicology initiative.\n\n\nOperating expenses were $82.0 million for the first quarter, compared to $86.3 million for the first quarter of 2024. The decrease was primarily due to lower R&D expenses.\n\n\nOther expense was $8.9 million for the first quarter, which included changes in fair value of equity investments and interest income/expense, compared to other income of $13.2 million for the first quarter of 2024.\n\n\n...