Schrodinger Inc (SDGR)

Net 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
Net income (ttm)	US$ in thousands	40,720	44,183	66,354	14,390	-149,186	-152,692	-147,846	-134,804	-100,393	-80,819	-41,960	-10,666	-24,463
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
Net profit margin		18.79%	22.16%	34.24%	7.30%	-82.44%	-89.67%	-90.62%	-87.27%	-72.78%	-64.76%	-34.75%	-9.35%	-22.63%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $40,720K ÷ $216,666K
= 18.79%

The net profit margin of Schrodinger Inc has displayed significant fluctuations over the past few quarters. In Q4 2023, the net profit margin stood at 18.79%, representing a decrease from the previous quarter's figure of 22.16%. Despite this decrease, the net profit margin remains positive, indicating that the company is generating profit relative to its total revenue.

Looking back further, in Q2 2023, Schrodinger Inc recorded a notably high net profit margin of 34.24%, marking a substantial improvement from the preceding quarters. This indicates that the company was able to effectively control costs and increase profitability during that period. However, in Q1 2023, the net profit margin dropped to 7.30%, showing a decrease in profitability compared to Q2 2023.

In contrast, the company faced significant challenges in the corresponding quarters of the previous year, with notably low net profit margins ranging from -82.44% to -87.27%. These negative figures indicate that Schrodinger Inc experienced losses exceeding its total revenue during those periods.

Overall, the fluctuations in Schrodinger Inc's net profit margin reflect varying levels of profitability and cost management efficiency across different quarters, highlighting the importance of consistent performance analysis and strategic decision-making in ensuring financial health and sustainable growth for the company.