Schrodinger Q2 revenue beats estimates, swings to profit
SDGR•Revenue drivers and analyst context
- ACV growth: The company said a 27% increase in annual contract value reflected growing industry adoption of its predict-first approach to molecular discovery.
- Software revenue decline: Schrodinger attributed a 10% drop in software revenue to continued progress in its transition to hosted software licensing.
- Drug discovery milestone: Drug discovery revenue rose mainly because of the $10 million collaboration milestone from the Ajax Therapeutics acquisition.
Key details:
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $58.89 million | $47.23 million (6 analysts) |
| Q2 Net Income | $5.98 million | ||
| Q2 Gross Profit | $32.43 million | ||
| Q2 Operating Expenses | $73.98 million |
The current average analyst rating on the shares is "buy," with 5 "strong buy" or "buy," 2 "hold" and no "sell" or "strong sell." The median 12-month price target for Schrodinger Inc is $20.00, about 27.8% above its August 4 closing price of $15.65.
Q2 revenue beats estimates and company swings to profit
Schrodinger's second-quarter revenue grew 8%, beating analyst expectations, and net income swung to a profit from a loss a year earlier.
Drug discovery revenue rose, helped by a $10 million milestone from the Ajax Therapeutics acquisition.
