Schrodinger Inc (SDGR)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020
Gross profit (ttm)	US$ in thousands	140,692	121,846	115,408	118,732	101,022	88,679	82,593	77,439	65,620	58,251	62,408	64,011	63,472
Revenue (ttm)	US$ in thousands	216,666	199,383	193,794	197,074	180,955	170,282	163,152	154,467	137,931	124,793	120,740	114,048	108,095
Gross profit margin		64.93%	61.11%	59.55%	60.25%	55.83%	52.08%	50.62%	50.13%	47.57%	46.68%	51.69%	56.13%	58.72%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $140,692K ÷ $216,666K
= 64.93%

Schrodinger Inc's gross profit margin has shown a steady improvement over the past eight quarters, with a consistent upward trend. The margins have increased from 50.13% in Q1 2022 to 64.93% in Q4 2023. This indicates that the company has been effectively managing its cost of goods sold and increasing its profitability on each sale. The improvement in gross profit margin suggests that Schrodinger Inc is becoming more efficient in managing its production costs and pricing strategies. Overall, the upward trend in gross profit margin reflects positively on the company's operational performance and financial health. The company's ability to consistently increase its gross profit margin over time bodes well for its future profitability and investor confidence.