Melissa's questions to Recursion Pharmaceuticals Inc (RXRX) leadership • FY 2024
Question
Melissa asked for an explanation for the drop in Q4 2024 revenue when compared to the same period in 2023.
Answer
CFO Ben Taylor clarified that Recursion's revenue recognition is not linear and does not resemble a typical tech subscription model. Upfront payments from partnerships are recognized over long periods, making quarter-to-quarter comparisons misleading. He highlighted that a significant portion of the $450 million in cash received from partners has yet to be recognized as revenue.