Schrödinger, Inc. (Nasdaq: SDGR), which is changing the way therapeutics and materials are found by its physics-based software platform, published financial results for the third quarter ended 30 September 2020.

Ramy Farid, Ph.D., CEO of Schrödinger said in a statement that “The Company is implementing a strategic plan in all aspects of the organization. We are excited about the strong growth in the software sector and the rapid advancement of our internal and collaborative therapeutic discovery and development programs.”

Fiscal Report

During the last quarter, revenue was $25.8 million, an improvement of 29 percent compared to the same period of 2019.The company’s, net profits, following adjustment for non-controlling interests, were $3.9 million during the reported period in contrast to a net loss of $11.5 million years over year.

For the reported quarter, software revenue was $22.9 million, a rise of 42 percent over the third quarter of 2019.  Drug discovery revenue was $2.9 million, a fall of 24 percent year over year.

During the 3rd quarter of 2020, gross profit hit $15.3 million, a 43 percent improvement year over year. The company’s software gross margin was 81 percent, unchanged versus the third quarter of 2019.

Operating expenses were $30.7 million for the last three months period, a surge of 40 percent over the third quarter of 2019.

Other revenue, including gains on equity investments and improvements in the fair value of those investments, amounted to $18.7 million, in contrast to a loss of $0.9 million in the same period of the year before. Other revenues for the third quarter of 2020 included a non-cash benefit of $18.0 million from our Relay Therapeutics equity, which completed its IPO in July 2020.