Schrodinger Inc (SDGR) Reports Q3 2023 Financial Results: Total Revenue Up by 15.1%
Third quarter total revenue reached $42.6 million, a 15.1% increase from Q3 2022.
Software revenue for Q3 2023 was $28.9 million, up by 17% from the same period last year.
Drug discovery revenue for Q3 2023 was $13.7 million, an increase of 11.4% from Q3 2022.
Net loss for Q3 2023 was $62.0 million, compared to $39.9 million in Q3 2022.
On November 1, 2023, Schrodinger Inc (NASDAQ:SDGR) released its financial results for the third quarter ended September 30, 2023. The company reported a total revenue of $42.6 million for the quarter, marking a 15.1% increase from the $37.0 million reported in the same period last year.
Financial Performance
Software revenue for the third quarter was $28.9 million, a 17.0% increase from the $24.7 million reported in Q3 2022. Drug discovery revenue for the quarter was $13.7 million, up by 11.4% from the $12.3 million reported in the same period last year. The software gross margin was 76% for the third quarter, compared to 72% in Q3 2022.
Operating expenses for the third quarter were $79.8 million, a significant increase from the $63.4 million reported in Q3 2022. The net loss for the third quarter was $62.0 million, compared to a net loss of $39.9 million in the same period last year.
Financial Outlook
Schrodinger Inc (NASDAQ:SDGR) updated its financial guidance for 2023. The company expects software revenue growth to be in the range of 15% to 18%. Drug discovery revenue is expected to range from $50 million to $70 million. The software gross margin is expected to be similar to the full year 2022. Operating expense growth in 2023 is expected to be significantly lower than in 2022.
Company Highlights
The company made significant progress with its investigational MALT1 inhibitor, SGR-1505, with the Phase 1 dose-escalation study in healthy volunteers nearing completion. Schrodinger also initiated the Phase 1 clinical study of SGR-2921, an investigational CDC7 inhibitor, in patients with acute myeloid leukemia or myelodysplastic syndrome.
Furthermore, Schrodinger announced that the rights to two related oncology discovery programs would revert to the company, after Bristol Myers Squibb elected not to proceed with further development of these programs for strategic reasons.
Explore the complete 8-K earnings release (here) from Schrodinger Inc for further details.
This article first appeared on GuruFocus.
