NASDAQ$SDGR

Schrodinger Inc/United States · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported a 23% increase in total revenue year-over-year, driven by growth in both software and drug discovery segments.

Schrödinger reported a strong first quarter with a 23% increase in total revenue, driven by significant growth in drug discovery revenue and continued adoption of its software platform. The company also expanded its collaboration with AstraZeneca and formed a new partnership with NVIDIA.

  • Total revenue increased by 23% year-over-year to $32.1 million.
  • Software revenue grew by 11% year-over-year to $26.3 million.
  • Drug discovery revenue increased to $5.8 million, compared to $2.4 million in the first quarter of 2020.
  • Expanded agreement with AstraZeneca to deploy Schrödinger’s computational platform.

Headline financials

Total Revenue

$32.1M

Previous: $26.2M+22.7%
EPS (adj)

-$0.00

Previous: -$0.34+99.9%
Software Gross Margin

78.0%

Previous: 83.0%-6.0%
Capital Expenditures

-$513K

Previous: -$843K+39.1%
Free Cash Flow

-$542K

Previous: -$14.7M+96.3%
Net Income

-$29K

Previous: -$13.8M+99.8%
Operating Income

-$23.9M

Previous: -$11.8M-102.6%
Gross Profit

$16.2M

Previous: $15.6M+3.4%
Cash & Equivalents

$133M

Previous: $145M-8.0%

Revenue & EPS history

Schrodinger · Revenue · Quarterly

$32.1M

Q1 2021+22.7%vs Q1 2020
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Schrodinger · $32.1M total across 2 segments · Q1 2021

  • Software Products & Services
    $26.3M+10.6%
  • Drug Discovery
    $5.79M+145.0%

Forward guidance

Schrödinger maintains its full-year 2021 financial outlook, expecting total revenue to range from $124 million to $142 million. Software revenue is projected to be between $102 million and $110 million, while drug discovery revenue is expected to be between $22 million and $32 million.

Tailwinds

  • Software revenue growth is expected to be higher in the second half of the year.
  • Majority of second half software growth expected in the fourth quarter of 2021.
  • Company continues to aggressively fund R&D to advance its technology.
  • Company continues to aggressively fund R&D to advance its drug discovery pipeline.
  • Internal pipeline progressing with plans to submit up to three investigational new drug applications to the FDA in 2022

Headwinds

  • Drug discovery revenue is expected to be highly variable quarter to quarter.
  • Variability is based on the timing of potential milestones related to collaborative agreements.
  • Operating expense growth is expected to be higher than the 42% annual growth rate reported in 2020.
  • Software gross margin is expected to be lower than the 81% reported in 2020.
  • Net loss, after adjusting for non-controlling interests, was $0.0 million for the first quarter of 2021, compared to a net loss of $13.8 million in the first quarter of 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 2021

Historical avgQ1 2021

-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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