Schrodinger Inc (SDGR)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-185,711	-177,970	-204,655	-166,844	42,919	47,087	72,336	40,848	-149,126	-152,223	-147,576	-134,838	-100,808	-81,728	-43,462	-12,561	-26,292	-22,105	-37,574	-34,350
Revenue (ttm)	US$ in thousands	207,539	193,348	200,627	188,482	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	100,895	95,058	90,976
Pretax margin		-89.48%	-92.05%	-102.01%	-88.52%	19.81%	23.62%	37.33%	20.73%	-82.41%	-89.39%	-90.45%	-87.29%	-73.09%	-65.49%	-36.00%	-11.01%	-24.32%	-21.91%	-39.53%	-37.76%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-185,711K ÷ $207,539K
= -89.48%

Schrodinger Inc's pretax margin experienced significant fluctuations over the analyzed period, ranging from negative percentages to positive percentages. The pretax margin started with a negative trend, declining steadily from March 31, 2020, to June 30, 2021. During this period, the company faced challenges in generating profits before taxes, with margins as low as -90.45%.

However, starting from March 31, 2023, there was a notable turnaround as the pretax margin improved consistently, reaching positive figures. The company demonstrated significant growth in profitability, with margins increasing to 37.33% as of June 30, 2023. This positive trend continued through September 30, 2023, and December 31, 2023, maintaining levels above 19%.

Unfortunately, the pretax margin declined sharply again from March 31, 2024, to December 31, 2024, falling back into negative territory. By the end of December 31, 2024, the pretax margin was at -89.48%.

Overall, while Schrodinger Inc experienced periods of profitability challenges and drastic declines in pretax margin, there were also notable periods of recovery and positive growth in profitability. Management may need to focus on sustaining and improving profitability to ensure long-term financial health and stability.