Schrodinger Inc. (NASDAQ: SDGR) reported Q2 EPS of ($0.05), $0.23 better than the analyst estimate of ($0.28). Revenue for the quarter came in at $23.09 million versus the consensus estimate of $17.93 million.

• Total revenue of $23.1 million, up 21% year-over-year
• Software revenue of $20.9 million, up 44% year-over-year
• New strategic agreements with Thermo Fisher and Viva Biotech
• Rapid progress across internal pipeline; three programs in late-stage discovery

“We made excellent progress during the second quarter across our entire business, including growing our software business, advancing our drug discovery programs, and developing new platform capabilities,” said Schrödinger CEO Ramy Farid, Ph.D. “We are excited about the opportunities across our business to continue transforming drug discovery and materials design for our customers, our collaborators, and for our own internal programs.”

“We are executing on our strategy to drive growth in our software business and rapidly progress our drug discovery programs," said Schrödinger CFO Joel Lebowitz. "We continue to invest to advance the science underlying our platform and to progress our internal and collaborative drug discovery programs, which we believe will deliver long-term results.”

“We are excited by the scientific advances and progress we have made on behalf of all our stakeholders,” said Dr. Farid. “Our leading physics-based computational platform is transforming discovery programs for life sciences and materials science with higher quality, novel molecules, and more rapidly than traditional methods.”

Business Impact of COVID-19 Pandemic

While we did not see material impacts to our business from the COVID-19 pandemic during the first half of 2020, we have identified certain market risks that, if they materialize, could affect the growth of our software business and the timing of our drug discovery revenues for at least the remainder of 2020. Some of our software customers may experience increasing budgetary pressures, which may cause them to delay or reduce purchases. In addition, our sales force has limited in-person interactions, and their ability to attend industry conferences and events that promote and expand knowledge of our company and platform has been hampered. Relative to our drug discovery programs, certain programs, particularly ones that are in clinical studies or preparing to enter clinical studies, could be delayed which could result in delays in achieving milestones and related revenue. While there remains uncertainty about the extent of the effect of the COVID-19 pandemic, we do not envision a long-term impact from the COVID-19 pandemic on our ability to execute on our long-term strategy.

For earnings history and earnings-related data on Schrodinger Inc. (SDGR) click here.