Schrodinger Inc. (NASDAQ: SDGR) reported Q4 EPS of ($0.32), $0.07 better than the analyst estimate of ($0.39). Revenue for the quarter came in at $74.1 million versus the consensus estimate of $78.86 million.

2024 Financial Outlook

As of February 28, 2024, Schrödinger provided the following expectations for the fiscal year ending December 31, 2024:

Software revenue growth is expected to range from 6% to 13%.
Drug discovery revenue is expected to range from $30 million to $35 million.
Software gross margin is expected to be similar to software gross margin for the full year 2023.
Operating expense growth in 2024 is expected to range from 8% to 12%.
Cash used for operating activities in 2024 is expected to be above cash used for operating activities in 2023.

For the first quarter of 2024, software revenue is expected to range from $33 million to $35 million.

“We had a very strong year in 2023, with significant growth in our software and drug discovery revenue and substantial progress in our proprietary pipeline and at our co-founded companies. In 2023 we benefited from the renewal of large contracts with long-term software customers, as well as a significant increase in the number of customers with annual contract values over $1 million,” stated Geoff Porges, MBBS, chief financial officer of Schrödinger. “We see many opportunities to drive continuing software revenue growth in 2024 and beyond, and are very excited by the value we are building in our proprietary portfolio, and in our ventures and partnerships.”

For earnings history and earnings-related data on Schrodinger Inc. (SDGR) click here.