Schrödinger Inc. recorded revenues of $25.8 million, up 29% year over year, according to the company’s press release. Software revenue rose the highest at 42% year over year to $22.9 million, offsetting drug recovery revenue, which fell 24% to $2.9 from Q3 2019. Growth in Life Sciences and Materials Science revenues expanded the company’s software earnings.
- Q3 2020 Results Highlights
- Gross profit was $15.3 million, up 43% year over year.
- Software gross margin was 81%, unchanged year over year.
- Operating expense was $30.7 million, up 40% year over year.
- Net income was $3.9 million, up from a net loss of $11.5 million in Q3 2019.
- Cash, cash equivalents, restricted cash, and marketable securities were $599.5 million, up to $315.0 million from Q2 2020, driven by $325.6 million proceeds from equity financing.
- Business Update
- Schrödinger will initiate IND enabling studies in 2021 on most advanced internal programs.
- The company will present data on the MALT 1 inhibitor program at the American Society of Hematology (ASH) Annual Meeting & Exposition.
- Some of the company’s software customers may experience budgetary pressures due to COVID-19, which may cause them to delay or reduce purchases.
- COVID-19 could delay certain programs in clinical studies or prepare to enter clinical studies affecting related revenues.
- Schrödinger does not envision a long-term impact from the COVID-19 pandemic on the ability to execute on the company’s long-term strategy.
Schrödinger’s stock is currently gaining. SDGR: NASDAQ is up 6.08%