Revolutionizing Medicines and Materials Discovery 1Q25 Financial Results May 7, 2025 Cautionary Note and Disclaimer This presentation contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact, made by Schrödinger, Inc. ("we," "us," "our," "Schrödinger," or the "Company") contained in this presentation, including, without limitation, st ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ________________________________________ FORM 10-Q ________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39206 ________________________________________ ...

Exhibit 99.1 Schrödinger Reports Strong First Quarter 2025 Financial Results First Quarter Total Revenue of $59.6 Million, Software Revenue of $48.8 Million Initial SGR-1505 Phase 1 Clinical Data to be Presented in June Maintains 2025 Financial Guidance New York, May 7, 2025 – Schrödinger, Inc. (Nasdaq: SDGR) today announced financial results for the quarter ended March 31, 2025. "We are very pleased with Schrödinger's performance in the first quarter of 2025, with strong software and drug discovery revenue ...

Company Overview - Schrodinger, Inc. (SDGR) shares increased by 27.4% to close at $24.49, following a period of 12.4% loss over the past four weeks, indicating a significant turnaround in investor sentiment [1][2]. Legal Settlement and Upcoming Data Presentation - The price surge was driven by investor optimism after Schrodinger announced a settlement in a legal dispute regarding compensation practices for non-employee directors [2]. - The company is scheduled to present new preclinical data on SGR-3515 and SGR-4174 at the American Association for Cancer Research (AACR) Annual Meeting 2025, which will take place from April 25 to 30, 2025, in Chicago, IL [2]. Financial Expectations - Schrodinger is expected to report a quarterly loss of $0.71 per share, reflecting a year-over-year change of +6.6%, while revenues are anticipated to reach $55.76 million, marking a 52.3% increase from the previous year [3]. - The consensus EPS estimate for the upcoming quarter has been revised 2.8% higher over the last 30 days, suggesting a positive trend that could lead to price appreciation [4]. Industry Context - Schrodinger operates within the Zacks Medical Info Systems industry, where another company, TruBridge (TBRG), has seen a 0.7% decline in its stock price, with a -10.5% return over the past month [4]. - TruBridge's consensus EPS estimate remains unchanged at $0.37, representing a +94.7% change from the previous year [5].

Core Insights - The article provides an overview of the investment landscape, emphasizing the importance of independent research and verification of information before making investment decisions [2][3]. Group 1 - The content is not intended as exhaustive analysis of any featured company, highlighting the need for readers to conduct their own research [2]. - The predictions and opinions presented are based on a probabilistic approach, indicating that they do not guarantee absolute certainty [2]. - The article stresses that past performance is not indicative of future results, underscoring the inherent volatility and risks associated with stock investments [3].

Core Insights - Schrödinger's Q4 2024 results and 2025 guidance are solid, supported by a recent collaboration with Novartis that will help minimize cash burn in the coming years [1] Group 1: Company Overview - Schrödinger is focused on drug discovery and has established a collaboration with Novartis, which is expected to enhance its operational efficiency [1] - The company is positioned to benefit from a changing investment landscape characterized by an aging population and low population growth, which may create unique investment opportunities [1] Group 2: Investment Strategy - Narweena, an asset manager led by Richard Durant, seeks to identify market dislocations due to misunderstandings of long-term business prospects, focusing on companies with secular growth opportunities [1] - The investment approach emphasizes company and industry fundamentals, aiming to uncover unique insights and targeting smaller cap stocks in markets with less obvious competitive advantages [1] - The current economic environment is marked by a decline in infrastructure investment needs and a shift towards asset-light businesses, leading to increased competition for limited investment opportunities [1]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $208 million, a decrease from $217 million in 2023 [30] - Software revenue grew by 13.3% from $159 million to $180 million, with hosted revenue increasing from $20 million to $35 million [30][34] - Q4 total revenue was $88.3 million, an increase of 19% compared to Q4 2023 [18] - Q4 software revenue was $79.7 million, up 16% from Q4 2023 [19] - The net loss for 2024 was $187 million or $2.57 per diluted share, compared to a net income of $41 million or $0.54 per diluted share in 2023 [34] Business Line Data and Key Metrics Changes - The number of software customers with an annual contract value (ACV) greater than $5 million increased from 4 to 8, while those with ACV greater than $1 million rose from 27% to 31% [12] - Total ACV increased by 24% to $191 million [12] - Drug discovery revenue for 2024 was $27 million, down from $58 million in 2023 [32] Market Data and Key Metrics Changes - Hosted revenue contributed 20% of software revenue for 2024, compared to 13% in 2023 [30] - The software gross margin for the year was 79.5%, down from 81.5% in 2023 [32] Company Strategy and Development Direction - The company aims to drive continued increases in the adoption of its computational technology and enterprise informatics platform in 2025 [13] - Plans to release several new products and solutions, including predictive toxicology technology and enhancements to biologics discovery technologies [14] - The company is optimistic about the broad momentum continuing into 2025, with expectations for software revenue growth in the range of 10% to 15% [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for a transformational 2025, with strong operational, financial, and strategic foundations [40] - The company does not expect significant growth from the Chinese market, which represents less than 5% of revenue [39] Other Important Information - The company reported a cash and marketable securities balance of $367 million at the end of Q4 2024, down from $469 million at the end of Q4 2023 [35] - The predictive toxicology project is expected to contribute significantly to revenue in 2025 [41] Q&A Session Summary Question: What is your assumption behind your 2025 drug discovery revenue guidance? - The increase in drug discovery revenue is broad-based, with contributions from various collaborations, including the Novartis partnership [57] Question: How should we think about the cadence for drug discovery revenues? - Drug discovery revenues are likely to be somewhat back-end weighted, with contributions scaling up throughout the year [125] Question: What do customers consider when moving from on-prem to hosted? - The transition to hosted contracts is seen as more seamless for delivering licenses, and the company expects a gradual increase in hosted revenue [76][78] Question: What are the stickiest aspects driving customer retention? - Customer retention is driven by the technology's impact on projects, leading to improved quality and faster development of candidates [90] Question: What is the gating factor for advancing new clinical candidates? - The company is currently evaluating potential partnerships for its clinical assets, with ongoing discussions as data becomes available [114]

Group 1: Earnings Performance - Schrodinger, Inc. reported a quarterly loss of $0.55 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.35, and compared to a loss of $0.32 per share a year ago, indicating a significant earnings surprise of -57.14% [1] - Over the last four quarters, the company has only surpassed consensus EPS estimates once, while it posted revenues of $88.32 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 5.79% and up from $74.13 million a year ago [2] Group 2: Stock Performance and Outlook - Schrodinger shares have increased by approximately 9.1% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Group 3: Estimate Revisions and Industry Context - The trend for estimate revisions for Schrodinger is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.78 on revenues of $47.5 million, and for the current fiscal year, it is -$2.08 on revenues of $272.34 million [7] - The Medical Info Systems industry, to which Schrodinger belongs, is currently ranked in the bottom 49% of over 250 Zacks industries, suggesting that the industry outlook could materially impact the stock's performance [8]

Revolutionizing Medicines and Materials Discovery 4Q/FY24 Financial Results February 26, 2025 Cautionary Note and Disclaimer This presentation contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact, made by Schrödinger, Inc. ("we," "us," "our," "Schrödinger," or the "Company") contained in this presentation, including, without limit ...

Revenue and Financial Performance - The company achieved total revenue of $207.5 million for the year ended December 31, 2024, with a net loss of $187.1 million[40]. - The annual contract value (ACV) for the company was $190.8 million in 2024, up from $154.2 million in 2023, indicating a significant growth in revenue[58]. - The customer retention rate for those with an ACV of at least $100,000 was 95% for the year ended December 31, 2024, demonstrating strong customer loyalty[59]. - In 2024, 19 of the top 20 pharmaceutical companies licensed the company's software solutions, contributing $74.7 million, or 41%, to total software revenue[31]. - The company had 1,752 active customers as of December 31, 2024, with the top 10 customers representing approximately 39% of software revenue[54]. Customer Base and Contracts - The company had 235, 222, and 227 customers with an annual contract value (ACV) of at least $100,000 for the years ended December 31, 2024, 2023, and 2022, representing 87%, 83%, and 82% of total ACV, respectively[31]. - The number of customers with an ACV of at least $500,000 increased to 61 in 2024 from 54 in 2023, and those with an ACV of at least $1.0 million rose to 31 in 2024 from 27 in 2023[31]. - The company entered into an expanded three-year software agreement with Novartis in November 2024, enhancing access to its computational predictive modeling technology[55]. - The company has established distribution channels in important markets, including China, to support its software sales[227]. Drug Discovery and Development - Drug discovery revenue was $27.2 million in 2024, with significant contributions from collaboration agreements and equity positions in collaborators[41]. - The company has proprietary drug discovery programs focused on various therapeutic areas, including immunology and neurology, with a strategy to evaluate each program for potential advancement[89]. - The company has developed a computational platform that predicts molecular properties with high accuracy, combining physics-based methods and machine learning[46]. - The computational platform can evaluate billions of molecules per day, significantly outperforming traditional methods that evaluate approximately 1,000 molecules per year[50]. - The company launched an initiative in 2024 to expand its computational platform to predict toxicology risk, funded by $19.5 million in grants from the Bill & Melinda Gates Foundation[41]. Collaborations and Partnerships - The company is eligible to receive up to $2.272 billion in total milestone payments from Novartis, with $892.0 million in discovery and development milestones and $1.38 billion in commercial milestones[87]. - The collaboration with BMS includes a potential total of $482.0 million in milestone payments for the remaining neurology target, with $32.0 million already recognized[84]. - The collaboration with Lilly allows for up to $420.0 million in discovery, development, and commercial milestone payments[85]. - The company received an aggregate of $147.2 million in cash distributions related to the acquisition of Nimbus by Takeda in February 2023[78]. Clinical Trials and Regulatory Approvals - The FDA cleared the IND for the company's SGR-1505 in June 2022, and initial data from the ongoing Phase 1 clinical trial is expected in Q2 2025[35]. - The FDA granted Fast Track designation to SGR-2921 in July 2024, with initial data from its Phase 1 clinical trial anticipated in the second half of 2025[37]. - The Phase 1 clinical trial for SGR-1505 is designed to enroll up to 52 patients with relapsed or refractory B-cell malignancies, with initial data expected in Q2 2025[102]. - The Phase 1 clinical trial for SGR-2921 aims to enroll up to 144 patients with relapsed or refractory acute myeloid leukemia or high-risk myelodysplastic syndrome, with initial data anticipated in H2 2025[118]. - The FDA granted Fast Track designation to SGR-2921 for patients with relapsed or refractory acute myeloid leukemia in July 2024[121]. Intellectual Property and Licensing - As of January 24, 2025, the company owns or holds exclusive license rights to approximately 40 patents and patent applications, including 14 issued or allowed U.S. cases[219]. - The company has approximately 10 published patent families related to its proprietary drug discovery business, with over 100 compound patents and patent applications filed since 2010[220]. - The company actively seeks to protect its intellectual property through patents, copyrights, and trade secrets, although challenges remain in enforcement[226]. - The company has entered into multiple license agreements with Columbia University, establishing rights and obligations regarding patents and software used in its computational platform[189]. Competitive Landscape - The company faces intense competition in oncology, with multiple competitors in clinical development for its product candidates[165][167][168]. - The competitive landscape includes major pharmaceutical companies, specialty biopharmaceutical companies, and emerging startups, all vying for market share in drug discovery[163][170]. - The competitive factors affecting the success of the company's product candidates include efficacy, safety, tolerability, convenience, and price[164].