NASDAQ$SDGR

Schrodinger Inc/United States · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported a 29% increase in total revenue year-over-year, with software revenue up 15% and drug discovery revenue significantly higher due to collaborations and IP acquisition.

Schrödinger reported a strong second quarter with a 29% increase in total revenue, driven by growth in both software and drug discovery segments. The company highlighted progress in its internal drug discovery pipeline and a new oncology collaboration with Zai Lab.

  • Total revenue increased by 29% year-over-year, reaching $29.8 million.
  • Software revenue grew by 15% year-over-year, amounting to $24.1 million.
  • Drug discovery revenue increased to $5.7 million, including $3.3 million from the Bristol Myers Squibb collaboration.
  • The company is advancing its internal drug discovery programs, with plans to submit up to three IND applications to the FDA in 2022.

Headline financials

Total Revenue

$29.8M

Previous: $23.1M+29.0%
EPS (adj)

-$0.49

Previous: -$0.05-880.0%
Software Gross Margin

77.0%

Previous: 82.0%-6.1%
Capital Expenditures

-$3.43M

Previous: -$1.33M-158.3%
Free Cash Flow

-$38.1M

Previous: -$4.68M-714.0%
Net Income

-$34.6M

Previous: -$3.35M-934.1%
Operating Income

-$30.3M

Previous: -$17.1M-77.6%
Gross Profit

$12M

Previous: $13.6M-11.8%
Cash & Equivalents

$118M

Previous: $110M+6.6%
Total Assets

$717M

No prior period
Stock-Based Comp

$7.02M

No prior period

Revenue & EPS history

Schrodinger · Revenue · Quarterly

$29.8M

Q2 2021+29%vs Q2 2020
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Schrodinger · $29.8M total across 2 segments · Q2 2021

  • Software Products & Services
    $24.1M+15.1%
  • Drug Discovery
    $5.73M+161.5%

Forward guidance

Schrödinger maintains its full-year 2021 financial outlook, expecting total revenue to range from $124 million to $142 million, with software revenue between $102 million and $110 million, and drug discovery revenue between $22 million and $32 million.

Tailwinds

  • Majority of second half software revenue growth is 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.
  • The company expects to submit up to three IND applications in 2022, with the first submission to the FDA expected in the first half of next year.
  • Schrödinger expects to present preclinical data from at least one of its internal programs in the second half of 2021.

Headwinds

  • Drug discovery revenue can be highly variable quarter to quarter based on the timing of potential milestones related to collaborative agreements.
  • Operating expense growth is expected to be higher than the 42 percent annual growth rate reported in 2020.
  • Software gross margin is expected to be lower than the 81 percent reported in 2020.
  • Net loss, after adjusting for non-controlling interest, was $34.6 million for the second quarter of 2021, compared to a net loss of $3.4 million in the second quarter of 2020, driven by adjustments to the fair value of the company’s equity investments as well as planned investments to advance the company’s growth strategy.
  • Cash, cash equivalents, restricted cash and marketable securities as of June 30, 2021 were $616.6 million, compared to $649.0 million as of March 31, 2021.

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 Q2 2021

Historical avgQ2 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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