NASDAQ$SDGR

Schrodinger Inc/United States · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong revenue growth and significant pipeline progress.

Schrödinger reported a strong third quarter with total revenue of $42.6 million, a 15.1% increase compared to the third quarter of 2022. The company saw growth in both software and drug discovery revenue. They updated their financial guidance for 2023.

  • Total revenue for the third quarter was $42.6 million, up from $37.0 million in the third quarter of 2022.
  • Software revenue increased to $28.9 million, compared to $24.7 million in the same period last year.
  • Drug discovery revenue rose to $13.7 million, up from $12.3 million year-over-year.
  • Phase 1 clinical study of SGR-2921 was initiated, and the Phase 1 study of SGR-1505 in healthy volunteers is nearing completion.

Headline financials

Total Revenue

$42.6M

Previous: $37M+15.1%
EPS (adj)

-$0.86

Previous: -$0.56-53.6%
Software Gross Margin

76.0%

Previous: 72.2%+5.3%
Capital Expenditures

-$10.9M

Previous: -$6.67M-63.8%
Free Cash Flow

-$72.9M

Previous: -$46.5M-56.8%
Net Income

-$62M

Previous: -$39.9M-55.6%
Operating Income

-$56.2M

Previous: -$46.2M-21.7%
Gross Profit

$23.6M

Previous: $17.2M+37.4%
Cash & Equivalents

$503M

Previous: $103M+388.7%
Total Assets

$794M

Previous: $662M+20.0%
R&D Expense

$46.8M

No prior period
Stock-Based Comp

$12.7M

Previous: $9.86M+28.3%

Revenue & EPS history

Schrodinger · Revenue · Quarterly

$42.6M

Q3 2023+15.1%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Schrodinger · $13.7M total across 1 segment · Q3 2023

  • Drug Discovery
    $13.7M+11.3%

Forward guidance

Schrödinger updated its financial guidance for 2023.

Tailwinds

  • Software revenue growth is expected to be in the range of 15 percent to 18 percent.
  • Drug discovery revenue is expected to range from $50 million to $70 million.
  • Software gross margin is expected to be similar to software gross margin for the full year 2022.
  • Operating expense growth in 2023 is expected to be significantly lower than operating expense growth in 2022.

Headwinds

  • Cash used for operating activities is now expected to be higher in 2023 than 2022, based on the mix of revenue, the timing and size of milestones and expectations for new business development activity this year.

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 2023

Historical avgQ3 2023

-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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