NASDAQ$SDGR

Schrodinger Inc/United States · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong third quarter results with total revenue growth driven by drug discovery portfolio progress, narrowed full-year revenue guidance with mix shifting toward drug discovery, and advanced clinical and preclinical programs.

Schrödinger reported a strong third quarter with software revenue in line with expectations and strong drug discovery revenue. The company initiated a Phase 1 study for its MALT1 program and is preparing to present new preclinical data from its CDC7 program. The company's total revenue increased by 24% compared to Q3 2021.

  • Total revenue increased by 24% year-over-year, reaching $37.0 million.
  • Drug discovery revenue saw a significant increase of 121% compared to the same quarter last year, amounting to $12.3 million.
  • Initiated Phase 1 clinical trial of MALT1 inhibitor, SGR-1505, for patients with relapsed or refractory B-cell malignancies.
  • New preclinical data for CDC7 inhibitor, SDGR-2921, will be presented at the American Society of Hematology 2022 Annual Meeting.

Headline financials

Total Revenue

$37M

Previous: $29.9M+23.9%
EPS (adj)

-$0.56

Previous: -$0.49-14.3%
Software Gross Margin

72.2%

No prior period
Capital Expenditures

-$6.67M

Previous: -$6.21M-7.4%
Free Cash Flow

-$46.5M

Previous: -$41.2M-12.9%
Net Income

-$39.9M

Previous: -$35M-13.8%
Operating Income

-$46.2M

Previous: -$34.7M-33.1%
Gross Profit

$17.2M

Previous: $11.1M+54.8%
Cash & Equivalents

$103M

Previous: $161M-36.1%
Total Assets

$662M

Previous: $763M-13.2%
Stock-Based Comp

$9.86M

Previous: $7.65M+28.9%

Revenue & EPS history

Schrodinger · Revenue · Quarterly

$37M

Q3 2022+23.9%vs Q3 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Schrodinger · $37M total across 2 segments · Q3 2022

  • Software Products & Services
    $24.7M+1.6%
  • Drug Discovery
    $12.3M+121.1%

Forward guidance

Schrödinger narrowed its total revenue guidance for 2022 to a range of $167 million to $175 million, representing growth of 21% to 27% over 2021. The company expects software revenue to range from $122 million to $127 million and drug discovery revenue to range from $45 million to $48 million.

Tailwinds

  • Total revenue is now expected to range from $167 million to $175 million, representing growth of 21 percent to 27 percent over 2021.
  • Total software revenue is now expected to range from $122 million to $127 million, representing eight percent to 12 percent growth over 2021.
  • Total drug discovery revenue is now expected to range from $45 million to $48 million, representing 82 percent to 94 percent growth over 2021.
  • Software gross margin percentage is still expected to be in the mid-70s.
  • Operating expense growth is now expected to be approximately 40 percent for 2022

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 Q3 2022

Historical avgQ3 2022

-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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