NASDAQ$SDGR

Schrodinger Inc/United States · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported first quarter financial results with a year-over-year revenue increase and completed a successful IPO.

Schrödinger reported a 26% year-over-year increase in total revenue, reaching $26.2 million for the first quarter of 2020. Software revenue grew by 28% to $23.8 million. The company's net loss was $13.8 million, and they ended the quarter with $288.8 million in cash, cash equivalents, and marketable securities. The company completed its IPO, raising $209.6 million in net proceeds.

  • Total revenue reached $26.2 million, a 26% increase year-over-year.
  • Software revenue was $23.8 million, up 28% compared to the first quarter of 2019.
  • Drug discovery revenue increased by 11% to $2.4 million.
  • The company raised $209.6 million in net proceeds through its initial public offering.

Headline financials

Total Revenue

$26.2M

Previous: $20.7M+26.2%
EPS (adj)

-$0.34

Previous: -$0.12-184.4%
Software Gross Margin

83.0%

Previous: 83.0%+0.0%
Capital Expenditures

-$843K

No prior period
Free Cash Flow

-$14.7M

No prior period
Net Income

-$13.8M

Previous: -$5.79M-138.6%
Operating Income

-$11.8M

Previous: -$5.61M-110.2%
Gross Profit

$15.6M

Previous: $13M+20.2%
Cash & Equivalents

$145M

No prior period

Revenue & EPS history

Schrodinger · Revenue · Quarterly

$26.2M

Q1 2020+26.2%vs Q1 2019
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Schrodinger · $26.2M total across 2 segments · Q1 2020

  • Software Products & Services
    $23.8M+28.0%
  • Drug Discovery
    $2.36M+10.6%

Forward guidance

While Schrödinger did not see material impacts to its business during the first quarter, certain market risks are beginning to emerge that could affect software growth and the timing of drug discovery revenues in 2020. The company views these risks as temporary and believes it has ample resources to manage its business effectively during this time.

Tailwinds

  • Company believes risks are temporary
  • Company believes it has ample resources to manage its business effectively during this time
  • Company does not envision a long-term impact on its ability to execute on its strategy.
  • Continuing trend of increased adoption of physics-based solutions by pharmaceutical, biotechnology, and industrial companies
  • Schrödinger released new software capabilities to expand the domain of applicability of its technology and improve upon the accuracy of its methods.

Headwinds

  • Some customers may experience budget pressures and potentially delay purchases
  • Sales could be impacted by inability to engage with customers in person
  • Crisis could also delay the progress of certain collaboration programs, particularly ones that are in clinical studies or preparing to enter clinical studies
  • Market risks are beginning to emerge that could affect software growth.
  • Market risks are beginning to emerge that could affect the timing of drug discovery revenues in 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-2.2%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+1.8%

Avg return

30 days after

42%

11 / 26 earnings

Positive

+31.4%

Q4 2021

Best reaction

-29.9%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+1.9%+23.0%
Q4 2025+8.3%+5.9%-6.1%
Q3 2025-5.8%-7.4%-10.8%
Q1 2025+0.6%+0.2%+3.8%
Q4 2024+2.5%-2.9%-8.0%
Q3 2024+13.1%-5.1%+7.8%
Q2 2024+0.1%-15.7%-6.8%
Q1 2024-4.9%-1.4%-11.7%
Q4 2023-23.1%-23.7%-18.4%
Q3 2023+15.3%+27.5%+49.7%
Q2 2023-26.9%-27.3%-29.8%
Q1 2023-5.1%-6.4%+22.3%
Q4 2022+14.5%+21.7%+16.8%
Q3 2022-14.6%-15.6%-29.2%
Q2 2022+1.5%-4.9%-19.1%
Q1 2022-5.5%-10.5%+1.5%
Q4 2021+31.4%+45.4%+36.4%
Q3 2021-16.1%-15.6%-31.6%
Q2 2021-5.1%-12.1%-0.1%
Q1 2021-6.8%-4.3%+19.4%
Q4 2020-29.9%-29.7%-20.8%
Q3 2020+12.4%+15.8%+39.6%
Q3 2019+12.4%+15.8%+39.6%
Q2 2020-2.5%-2.4%-24.2%
Q1 2020-8.1%+0.5%+3.0%
Q4 2019-14.6%+8.3%+1.5%
Q2 2019
Q1 2019
Q4 2018
Q3 2018

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