Schrödinger Stock Is Trading Lower After Reporting Deeper Than Expected Q2 Loss

Schrödinger Inc (NASDAQ: SDGR) has reported Q2 revenues of $29.78 million, +29% Y/Y, slightly missing the consensus of $29.88 million.
Software revenue was $24.1 million, +15%. Drug discovery revenue was $5.7 million compared to $2.2 million a year ago, includes $3.3 million in collaboration revenue from Bristol Myers Squibb.
The gross profit margin compressed from 58.8% to 40.2%, reflecting planned investment to drive and support the large-scale adoption of Schrödinger's platform.
Cash, cash equivalents, restricted cash, and marketable securities were $616.6 million.
Operating expenses increased to $42.3 million from $30.7 million in Q2 FY20, driven by costs required to scale its business and advance its internal drug discovery programs.
Schrödinger posted EPS loss of $(0.49) deeper than $(0.05) a year ago, missing the consensus loss of $(0.33).
FY21 Guidance: Schrödinger reaffirms revenue of $124 million - $142 million (midpoint $133 million lower than consensus of $138.8 million).
It expects software revenue of $102 million - $110 million and drug discovery sales of $22 million - $32 million.
The company expects operating expense growth of more than 42% and expects software segment gross margin to be lower than the 81% reported in 2020.
Price Action: SDGR shares are down 7.00% at $58.45 during the market session on the last check Thursday.