Q1 2024 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$25.26Last close (May 1, 2024)
Post-Earnings Price$22.90Open (May 2, 2024)
Price Change
$-2.36(-9.34%)
- Hosted software revenue grew more than 60% year-over-year, representing 22% of total software revenue , indicating a positive trend towards cloud-based solutions and providing opportunities for multimillion-dollar increases in contract size with global and emerging biopharmaceutical companies.
- Strong Annual Contract Value (ACV) growth is expected to be significantly higher than revenue growth in 2024, driven by large multiyear deals, demonstrating robust future revenue potential and a positive trajectory in customer numbers.
- Advancement of the proprietary pipeline, with the Wee1/Myt1 inhibitor (SGR-3515) entering clinical trials and potential to expand its use beyond gynecological tumors to include breast cancer and other solid tumors, leveraging collaborations such as with MD Anderson.
- The realization of software revenue guidance depends heavily on factors outside of the company's control, such as customer renewal timing and the biotech financing environment, leading to revenue uncertainty. Additionally, some contracts were pushed from Q1 to Q2, and delays in contract renewals could impact revenue timing.
- There has been an increase in non-renewals among small biotech companies in the $100,000 to $500,000 ACV tier, and while the company is seeing new inquiries, they may take longer to convert into revenues, indicating potential challenges in the biotech end markets and longer sales cycles.
- The company's increasing R&D expenses and anticipated additional capital requirements for advancing clinical programs may pressure profitability. Moreover, the company is not providing guidance on expenses for next year, adding to financial uncertainty.