Schrödinger targets 10%-15% ACV growth through accelerated hosted transition and platform innovation
View original at seekingalpha.comSchrödinger targets 10%-15% ACV growth through accelerated hosted transition and platform innovation Earnings Call Insights: Schrödinger (SDGR) Q4 2025 MANAGEMENT VIEW * CEO Ramy Farid stated that Schrödinger "is the leader in advancing and deploying computational methods for molecular discovery," emphasizing the compa…
Lo que extrajimos de esta fuente
The claims Via News extracted from this document. We point to the source; we don't replace it.
Schrödinger is working with Anthropic directly to explore ways to integrate agentic AI with computational solutions
80% confidence2026 ACV guidance is $218 million to $228 million representing 10% to 15% growth
80% confidenceTransition to hosted contracts has no impact to ACV or cash flows
80% confidenceWe're definitely looking forward to predictive toxicology launch and expecting growth from it as well as new products
80% confidenceCustomers are increasingly preferring hosted deployments
80% confidenceA number of new products fit profile of reaching new end customers and new touch points within existing customers
80% confidenceQ1 tends to be one of the smaller quarters following the Q4 season
80% confidenceDrug discovery business generated $56.4 million of revenue from portfolio of collaborative programs
80% confidenceSoftware business generated $199.5 million of software revenue and $198.5 million of software ACV with strong growth from commercial customers
80% confidenceNet dollar retention fell to 100% after several years averaging over 110%
80% confidenceProfitability by 2028 depends on growth across the software business of about 10% to 15% a year and drug discovery revenue of about $50 million a year
80% confidencePartnering pipeline assets is an ongoing and active component of business
80% confidenceDrug discovery revenue for 2026 anticipated between $55 million and $65 million
80% confidenceSchrödinger is uniquely positioned to lead the next era of molecular discovery by scaling physics plus AI platform across a multi-billion-dollar growing market
80% confidenceTotal ACV increased to $198.5 million with notable 15% growth within top 20 pharma relationships
80% confidenceSoftware revenue increased 11% and drug discovery revenue more than doubled compared to the prior year
80% confidenceWe are really confident about our future and the opportunities ahead
80% confidenceQ1 2026 ACV expected to be $24 million to $28 million compared to $25 million from Q1 2025
80% confidenceTargets include annual software ACV growth of 10% to 15%, substantially completing transition to hosted contracts, and returning gross margin percentage to the high 70s
80% confidenceThe company achieved 23% total revenue growth and has a strong cash position of $402 million for 2025
80% confidenceOperating expenses expected to be less than 2025 as company fully realizes annualized impact of expense reductions
80% confidenceSoftware gross margin of 74% compared to 80% in 2024 due to hosted deployment transition
80% confidenceTotal operating expenses were $310 million, a decrease of approximately 9% compared to 2024
80% confidenceExpects 10% to 15% software ACV growth, operating with expense discipline, and accelerating transition to primarily hosted model
80% confidenceACV and revenue are actually quite different
80% confidenceSchrödinger had a strong 2025 delivering $256 million of revenue or 23% growth against a challenging backdrop of tight pharma budgets and challenging biotech capital markets
80% confidenceNew products including predictive tox are reaching new end customers and new touch points within existing customers
80% confidenceSchrödinger is the leader in advancing and deploying computational methods for molecular discovery
80% confidence