morning, everyone. Karen, a was very you, quarter Schrodinger. for QX Thank and good productive
of diversifying new expectations of And and the project the X software opportunities. During grant with months in timing We Foundation. software our in initiated Gates first our growth predictive part a with year, announced quarter, our by new Novartis, of multi-target the tox discovery areas. collaborations And XX% our renewal into XX%. revenue therapeutic significant the funded by collaboration drug for grew is large the line the the from we today, usual
We we cash the result position reserves to QX, continue sale and collaboration successful from the this $XX a announced programs million as as during And increase clinical the Lilly. capital our our Morphic expect we bolstered today. advance. a of sale result to of Our of to realized
and QX our slower below our by compared expectations, from were Foundation small reduced the as our as for in ramp revenue a revenue predictive the well of activities lower grant tox the initiative associated Software in slower-than-expected deferred Gates to expectations. the opportunities that driven in August the from just or end recognition software was the of
Gates revenue announced made expectations recently the quarters in revenue compared the million software This of the and recognized not of to the timing to million XXXX.
In in XX% $XX XX% revenue in size to compared driven large collaboration, year revenue expect on-prem The as ] the for the the revenue partially reduction increased did in and by The in expect funded end was for discovery QX revenue year the in flat on QX increase the Gates-[ reflects due to increases range from lower $XX.X to have software and renewals.
Hosted in in expect increase multiyear renewals QX.
Based compared our year. the absence the discovery our XXXX. in relatively by driven the XX% $XX.X QX million, year-over-year, revenue the research compared our this year.
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Total transitioned initial Total and period shortfall their this million million same increased ago. to for prior Novartis revenue not million to hosted total licenses contracts.
Contribution from maintenance based discovery $X.X of a milestones were XX% revenue large QX the to to now drug than the year significant milestones recur the milestones million and of to revenue revenue. grant.
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the margin Our lower in affected a tox collaboration to compared in gross likely software compared by and revenue the in recognized period year of the XXXX been grant. XX.X% this has QX XX.X% level the than initial was is ago the The QX at Gates for QX to XX% gross in and year. in a predictive to duration margin continue same
QX $XX QX The decrease QX drug QX year drug collaboration discovery in services of of is compared to to in compared our in $X.X compared cost year due cost year. number Our smaller last year. to million and last million year portfolio in was in $X.X the million this to this of discovery last for programs
we FTEs other supporting the in and programs. R&D of As now being prior reported of drug services periods, are in reported cost some previously are internal discovery in noted and proprietary our have expenses
this and other the proprietary should activity and to up ahead, balance we collaboration subject be Looking between move projects Novartis the the collaboration. ramp for direction in may our as reallocation
due R&D the to million R&D QX. to gross compared FTE-associated $XX both discovery was year in same lower gross QX and was QX in the was therapeutic million platform compared our QX The year The increase in the expense margin.
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expenses marketing discovery and expense offset QX costs in half XXXX QX was last total quarter.
Sales year. and reduced to QX our G&A in higher by expense and the FTE-driven drug XXXX to royalty increased services R&D by was expense the increase year X% expenses sales based this over in compared were reported last by expenses software million compared higher As QX by compared a increase stock. to to $XX.X in of associated compared were FTE little in expenses in marketing operating periods, to prior supporting due mainly million and was with R&D by on due of increased QX to $XX obligations X% compared year to QX year $XX.X The Morphic expense XXXX. sale year were primarily was and this R&D. to $XX million X% our These our and The in QX. taxes.
Total last and $XX QX million and increased in compared XX.X% compared million to commercialization.
G&A and professional
was was the year. last million compared in $X.X these million, compared QX prior million decrease QX QX was a in operating loss compared last $XX.X driven on of in a by value.
Other In of to year, and the in the compared to to the million. For $X.X In $XX.X in a method reported compared in million million in loss a QX this value the reduction year of Structure change million QX, and the year. lower QX our same value in the year. Total this $X.X during $XX XXXX fair we million [ loss $X.X of in a The was $X.X balance to and in increase loss to in $XX.X investments reported QX, this other value ] period loss quarter. $XX Morphic of we last of QX equity QX our was of million and this $XX.X of in in reduction QX in million year income a investments year investments a income QX year.
The cash based million of $X.X million
was $X.XX a loss million higher $X.XX due $XX equity was from a investments, method $XX share. gain Our loss and a operations share. or higher year was QX. reported tax QX, or ago, of income net of per loss net our $X.X The net to lower we benefit In offsetting per loss million, on million in
in diluted Our XX.X count basic XXXX QX same to million compared period share and was XX.X million year. XX.X million in compared to the of and this
software XXXX. our months was X the year, XX% of to $XXX period this million, of same compared increased the For revenue by
milestones million collaboration based nonrecurring from larger Our and the $XX drug declined discovery portfolio year. to recognized $XX.X revenue on million last
revenue year-to-date the in million Our total year. period million last to $XXX.X same compared $XXX is
recent gross the year.
Favorable trends margin costs XX.X% the in months X is for year period in first were offset software X first XXXX effect from comparable for of increase million expenses Our quarter. collaboration recognizing The by expenses. Operating the compared to $XXX to mainly months million for the the in in R&D the due the of and $XXX the Gates X expenses last months the most of to XX% of revenue higher was this year. increased first
This the $XXX recognized Takeda.
Net and Nimbus's $X XXXX. for of to $X.XX the share. of compares million of a million $XXX million operations from the loss X the first period in was Other to million for million months income months same X $XXX from or first income of EPS compared a $XX Our is distribution to same million in income period period we net of the $XXX ago. same year year-to-date the sale was TYKX for XXXX when compared for per the loss to $XX
compared in in last cash QX used $XX year. $XX million operations was Our this million to quarter
to at increased the shares the securities was $XX the during QX. burn. This $XXX compared which in offset balance sale increase based company million cash of million equity on end quarter, cash our of of from end to $XXX marketable the realization of Our QX million the at and positions co-founded operating
our we share comments financial for general about updated of announced I some implications the the the collaboration like I would make Before guidance to year, financial today.
while the associated years recognized projects First, revenue the in be is over discovery execute the drug several with payment should upfront that we year-end, around will we receive cash cash as collaboration. that the
We several ramp-up over be these associated some to with expect there quarters projects.
X% as considerable some modest.
The with revenue also technology. very software contribute revenue our to associated the guidance revenue the discovery financial outlook our and year.
Based will guidance X-year full the period will software to timing contract. ratably today our contribution also the contracts that significant is to but from in is and revenue Novartis's QX for the are The occur, contribution for contribute of drug substantially contract The of multiyear So not on business, XX% their increases the revenue access of the and be year scale on-prem is renewals with news of this collaboration consistent and XX%. contract our about software we X% the uncertainty software over will updated to software ] This effect and revenue software QX on outstanding final about recognized the range revenue. narrowing the balance terms remaining whether the a [
these $XX probability milestones of QX other milestones our of drug our reduced $XX lowering the of collaborations $XX and revenue in and guidance to are million during to We from reaching $XX collaboration revenue million. range the recognizing million reflects from possibility remainder lower XXXX. The discovery million to
XXXX. unchanged. XXXX aspects significantly expect of to growth guidance expense other still financial are operating be than lower The in our We
outlook our many of the and collaborations. timing see which by as global value particularly large cash well be at for receipt increases to when from additional scale. deployed about this but other guidance for the influenced opportunities rest year-end.
We're pharma around and of sees Novartis year company recognizing additional operating similar excited approach scale drug companies at pharmaceutical very discovery, of as biotech the collaboration another We will in use is new payment Our the unchanged, the of
clinical the Our data we proprietary call of this next significant back collaboration, to part year.
I'll forward from research to our efforts now programs Ramy. turn disclosing a look were and
