Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $59.6 million, representing a 63% increase compared to Q1 2024 [13] - Software revenue was $48.8 million, reflecting a 46% growth year-over-year [14] - Drug discovery revenue increased to $10.7 million from $3.2 million in Q1 2024, driven by collaborations and upfront payments [16] Business Line Data and Key Metrics Changes - Software revenue growth was primarily due to larger customer renewals and expansions of existing contracts, with on-prem software increasing by 44% to $25.4 million and hosted revenue growing by 52% to $10.9 million [14] - Professional services revenue declined by 31% to $3.8 million as previous contracts were completed [15] - Drug discovery revenue growth was attributed to the recognition of upfront payments from Novartis and other collaborations [16] Market Data and Key Metrics Changes - The company noted that the small and emerging biotech segment is not growing, but growth is driven by large accounts, with no pushback on renewals from major customers [54] - The company has a small direct exposure to revenue from China, with less than 4% of software revenue coming from U.S. academic institutions and government organizations [23] Company Strategy and Development Direction - The company aims to accelerate the growth of its software business and advance its drug discovery programs, with a focus on predictive toxicology and reducing preclinical animal testing [7][9] - The company plans to release a beta version of its predictive toxicology solution to select customers later this year, with broader availability expected after testing [9] - The company maintains its full-year financial guidance, expecting software revenue growth of 10% to 15% and drug discovery revenue between $45 million and $50 million [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue outlook for 2025, despite potential macroeconomic challenges [7] - The company is optimistic about the FDA's goal to reduce animal testing, which aligns with its computational drug discovery technology [8][24] - Management highlighted a strong cash position and reduced operating expenses, indicating resilience against market volatility [12][20] Other Important Information - The company reported a net loss of $60 million for Q1 2025, compared to a net loss of $54.7 million in Q1 2024 [20] - Cash and marketable securities increased from $367 million at year-end 2024 to $512 million at the end of Q1 2025 [21] Q&A Session Summary Question: Expectations around the SGR1505 presentation - Management is excited to share initial data from the SGR1505 trial, focusing on safety, pharmacokinetics, and preliminary efficacy [39] Question: Financial guidance on cash burn - Management does not foresee a substantial increase in cash burn next year, maintaining optionality with ongoing programs [40] Question: Differentiation of predictive toxicology model - The company is developing highly accurate models that leverage physics and machine learning, differentiating its offering from other preclinical simulators [45] Question: Trends observed in customer dynamics - The company is not seeing pushback on renewals and is maintaining growth driven by large accounts, despite challenges in the small biotech segment [54] Question: Threats from AI-native companies - Management believes there is currently no evidence of a threat from AI-native companies, emphasizing the importance of their deep understanding of technology [56] Question: Customer sentiment and FDA guidance on animal testing - Customers are looking for impactful technology that improves molecule design success rates, and the company has solutions that contribute to reducing animal testing [63][67] Question: Appetite for business development and partnerships - The company is constantly in conversation with other companies regarding potential partnerships and is evaluating new programs for high potential [98]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $59.6 million, representing a 63% increase compared to Q1 2024 [12][19] - Software revenue was $48.8 million, up 46% year-over-year, driven by larger customer renewals and expansions [13][19] - Drug discovery revenue increased to $10.7 million from $3.2 million in Q1 2024, boosted by revenue recognition from the Novartis collaboration [14][19] - Operating expenses decreased to $82 million from $86 million in Q1 2024, primarily due to lower R&D expenses [18][19] - Net loss after taxes was $60 million, or $0.82 per share, compared to a net loss of $54.7 million, or $0.76 per share in Q1 2024 [19] Business Line Data and Key Metrics Changes - Software cost of revenue increased to $13.5 million from $8 million in Q1 2024, attributed to the Gates Predictive Tox initiative [15] - Professional services revenue declined by 31% to $3.8 million due to the completion of prior service contracts [14] - On-prem software revenue grew by 44% to $25.4 million, while hosted revenue increased by 52% to $10.9 million [13] Market Data and Key Metrics Changes - The company noted that its direct exposure to revenue from China is small, with low single-digit percentages of software revenue coming from Chinese entities [22] - The FDA's goal to reduce preclinical animal testing is seen as a positive development for the company's technology and offerings [6][23] Company Strategy and Development Direction - The company aims to accelerate the growth of its software business and advance its drug discovery programs [3][5] - Management is optimistic about the potential of its predictive toxicology initiative and plans to release a beta version to select customers later this year [8][9] - The company expects to maintain its full-year financial guidance, projecting software revenue growth of 10% to 15% and drug discovery revenue between $45 million and $50 million [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position and its ability to navigate the current macroeconomic challenges [11][12] - The company is not currently experiencing resistance to purchasing conversations, although it is monitoring potential regulatory impacts [21][22] - Management remains positive about the outlook for the year, anticipating strong performance driven by clinical data presentations and ongoing collaborations [25][26] Other Important Information - The company has advanced several programs into the clinic and partnered early-stage programs with companies like Novartis and Lilly [31][76] - The predictive toxicology initiative aims to scale existing solutions to hundreds of off-targets, enhancing the company's offerings [70] Q&A Session Summary Question: Expectations around the upcoming presentation of SGR1505 - Management is excited to share initial data from the dose escalation study, focusing on safety, pharmacokinetics, and initial signs of activity [40][41] Question: Financial guidance on cash burn and R&D investments - Management indicated that cash burn is not expected to increase significantly next year, maintaining optionality with ongoing programs [41] Question: Differentiation of the predictive toxicology model - The company is developing highly accurate models that leverage both physics and machine learning, which differentiates its offering from other preclinical simulators [47] Question: Trends observed in customer dynamics - Management noted that while small biotech segments are not growing, large accounts continue to drive growth without pushback on renewals [55] Question: Threats from AI-native companies - Management emphasized that there is currently no evidence of a threat and highlighted the importance of their deep understanding of the technology [59] Question: Customer expectations and FDA guidance on animal testing - Customers are looking for impact from the technology, and the predictive toxicology initiative is expected to significantly contribute to reducing animal testing [64][68]

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]