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, 2023 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 ________________________________________ ...

Schrödinger, Inc. (NASDAQ:SDGR) Q4 2022 Earnings Conference Call February 28, 2023 4:30 PM ET Company Participants Jaren Madden - Senior Vice President, Investor Relations and Corporate Affairs Ramy Farid - Chief Executive Officer Geoff Porges - Chief Financial Officer Karen Akinsanya - President of R&D, Therapeutics Conference Call Participants Do Kim - Piper Sandler David Lebowitz - Citi Gary Nachman - BMO Capital Markets Wolf Chanoff - Bank of America Operator Thank you for standing by. Welcome to Schröd ...

Enhanced Platform Capabilities • Initiated SGR-1505 Phase 1 trial Second Quarter 2022 Supplemental Slides February 28, 2023 Transforming Discovery of Therapeutics and Materials 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, contained in this presentation, including, without limitation, statements regarding ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________ FORM 10-K _______________________________________ (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ¨ 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 _______________________________________ Schrod ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 was $37 million, a 24% increase compared to the prior year [10][17] - Software revenue was $24.7 million, consistent with expectations and similar to $24.3 million reported in Q3 2021 [17] - Drug discovery revenue was $12.3 million, up from $5.6 million in Q3 2021, driven by collaborations and milestone achievements [18] - Gross profit increased to $17.2 million, a 55% year-over-year increase [18] - Operating expenses rose to $63.4 million from $45.8 million in the same quarter last year [19] - Net loss for Q3 2022 was $39.9 million, compared to a net loss of $35 million in Q3 2021 [19] - Cash position at the end of Q3 was approximately $479 million, down from $513 million on June 30, 2022 [19] Business Line Data and Key Metrics Changes - The company has 18 proprietary drug discovery programs, with significant progress in both collaborative and proprietary projects [9][29] - Drug discovery revenue for the year is now expected to be between $45 million and $48 million, up from a previous expectation of $35 million to $45 million [23] Market Data and Key Metrics Changes - The company is experiencing strong growth in software licensing revenue, despite challenges in the macroeconomic environment [25] - The guidance for software revenue has been narrowed to a range of $122 million to $127 million for 2022, reflecting various market factors [21] Company Strategy and Development Direction - The company aims to accelerate growth in its software business and advance its drug discovery programs [5][11] - A partnership with Lilly was announced for the discovery of small molecule compounds, with potential milestone payments of up to $425 million [12][33] - The company is focused on maintaining a balanced business model that leverages its computational platform for drug discovery and materials design [9][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver continued growth despite a challenging economic environment [25][26] - The company is committed to advancing its proprietary programs and believes in the potential of its computational platform to create value [25][41] Other Important Information - The Phase 1 study of the MALT1 inhibitor, SGR-1505, is now open for patient enrollment [12][36] - The company plans to present new preclinical data for its CDC7 inhibitor, SGR-2921, at the ASH Annual Meeting [39] Q&A Session Summary Question: Impact of guidance components on software revenue - Management detailed the impact of foreign exchange, small biotech customers, and larger customers on software revenue guidance, indicating that all three factors contributed equally to the changes [44][47] Question: Details on MALT1 trial enrollment - Management confirmed that they are actively working on activating clinical sites in the U.S. and are considering global sites as well [48][51] Question: Increase in drug discovery guidance - The increase in drug discovery revenue guidance was attributed to successful advancements in collaborations and the recognition of previously deferred revenue [53][55] Question: BMS collaboration discontinuation - Management explained that BMS made a strategic decision to deprioritize a neuroscience program, but the company remains optimistic about the program's potential and will continue to invest internally [60][61] Question: Cash burn expectations - The company reported a cash burn of approximately $34 million for the quarter and expects cash burn to moderate as the software business grows [101][102]

Financial Data and Key Metrics Changes - Total revenue for Q2 2022 was $38.5 million, representing a 29% increase compared to Q2 2021 [9][17] - Software revenue was $30 million, a 25% growth year-over-year [8][17] - Drug discovery revenue was $8.5 million, up from $5.7 million in Q2 2021 [19] - Gross profit was $17.1 million, reflecting a 43% increase over the same quarter last year [19] - The company recorded a net loss of $47.7 million for Q2 2022, compared to a loss of $35 million in Q2 2021 [21] Business Line Data and Key Metrics Changes - Software revenue growth was driven by increased adoption from existing customers and new customer additions [18] - Drug discovery revenue included $5.4 million from collaboration with Bristol-Myers Squibb and preclinical milestones [19] Market Data and Key Metrics Changes - The company ended the quarter with approximately $513 million in cash, down from $529 million at the end of Q1 2022 [22] - The company expects software revenue for Q3 2022 to range from $23 million to $25 million, similar to Q3 2021 [24] Company Strategy and Development Direction - The company aims to accelerate growth in its software business and advance drug discovery programs [5] - The company is focused on maintaining a strong financial position to fund operations and advance clinical studies [10] - The company plans to continue investing in its platform and pipeline while pursuing profitability [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining full-year financial guidance despite anticipated fluctuations in software revenue [9][25] - The company expects total annual revenue to be between $161 million and $181 million, indicating 17% to 31% growth over 2021 [25] Other Important Information - The company submitted its first internal IND for the MALT1 inhibitor SGR-1505 and is preparing to initiate a Phase I trial [12][31] - The company has added four new early discovery programs in precision oncology and immunology [40] Q&A Session Summary Question: Clarification on Q3 software guidance and customer renewals - Management noted that Q3 is typically the lowest revenue quarter and there are fewer large customers up for renewal [49] Question: Customer spending patterns and ACV growth - Management indicated no signs of weakness in customer spending and maintained guidance for ACV growth in 2023 [51][52] Question: New business wins in life sciences and material sciences - Management highlighted that growth primarily comes from existing customers, with some new customer growth observed [58] Question: Internal capabilities for drug development - Management confirmed the addition of experts to the team to support upcoming clinical trials [60] Question: Visibility on new oncology and immunology programs - Management stated that new programs are being developed with a focus on differentiation and validation [64] Question: Details on the design of the SGR-1505 study - Management explained that the study aims to establish safety and tolerability, with pharmacokinetic and pharmacodynamic data being collected [68] Question: Impact of recent discontinuation of a Wee1 inhibitor on their program - Management expressed optimism about their Wee1 inhibitor program, emphasizing enhanced selectivity and drug-like properties [71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ 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 Schrodinger, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 95-4284541 (State or other jurisdiction of ...

Transforming Discovery of Therapeutics and Materials May 4, 2022 First Quarter 2022 Supplemental Slides 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, contained in this presentation, including, without limitation, statements regarding the potential advantages of our physics-b ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $48.7 million, a 51% increase compared to Q1 2021 [13] - Software revenue reached $33.1 million, representing a 26% growth year-over-year [13] - Drug discovery revenue was $15.6 million, up from $5.8 million in Q1 2021 [13] - Gross profit was $28 million, a 73% increase over the same period last year [14] - The company recorded a net loss of approximately $34.5 million for Q1 2022, compared to a loss of approximately $0.5 million in Q1 2021 [14][15] - Cash and cash equivalents at the end of the quarter were approximately $529 million, down from $579 million at the end of 2021 [15] Business Line Data and Key Metrics Changes - Software revenue growth was driven by increased adoption from existing customers and new customer additions [13] - Drug discovery revenue included $4 million from collaboration with Bristol-Myers Squibb and $9 million from preclinical milestones recognized earlier than expected [14] Market Data and Key Metrics Changes - The company expects total annual revenue to be in the range of $161 million to $181 million, reflecting 17% to 31% growth over 2021 [17] - Software revenue guidance for the year is projected between $126 million and $136 million, indicating 11% to 20% growth over 2021 [17] - Drug discovery revenue is expected to range from $35 million to $45 million, reflecting 42% to 82% growth over the previous year [18] Company Strategy and Development Direction - The company is focused on accelerating the growth of its software business and advancing drug discovery programs [5] - A new collaboration with Eonix aims to enhance the discovery and design of materials for lithium-ion batteries, marking the first equity-based collaboration in the materials science sector [10][11] - The company is committed to advancing its wholly-owned drug discovery programs, with several candidates expected to enter clinical trials [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum and ability to innovate while maintaining a solid revenue foundation [10] - The company is optimistic about the impact of its computational platform on drug discovery and materials science [9][10] - Management reaffirmed guidance for the full year, indicating confidence in achieving projected revenue despite potential fluctuations [16][17] Other Important Information - The company is continuing to invest in R&D and infrastructure to support growth [14] - The acquisition of XTAL is expected to enhance the company's capabilities in structural biology [15][49] Q&A Session Summary Question: Rationale for Eonix collaboration - Management highlighted the collaboration's goal of developing better batteries and the expected impact on advancing science and technology [30] Question: Drug discovery revenue cadence for 2022 - Management indicated that drug discovery revenue is not guided quarterly due to milestone timing variability, but the annual guidance remains [32][33] Question: Software revenue guidance and visibility - Management expressed confidence in the software revenue guidance, noting strong customer engagement and larger-than-expected renewals [40][61] Question: Retention rate and cash usage - Retention rate remains high, with management indicating continued investment in the platform and internal pipeline [77][78] Question: Update on sales team and large molecule traction - Management confirmed ongoing growth in the sales team and increasing traction with large molecule customers [83][86] Question: Growth prospects among existing customers - Management noted growth across both large and small customers, with significant potential remaining in large pharma accounts [90][94]

Financial Performance - Revenue for the three months ended March 31, 2022, was $48.7 million, representing a year-over-year growth of 51% compared to $32.1 million in the same period of 2021[168]. - The net loss attributable to common stockholders for the three months ended March 31, 2022, was $34.4 million, compared to $0.0 million for the same period in 2021[168]. - Total revenues for the three months ended March 31, 2022, were $48,663,000, representing a 51% increase compared to $32,127,000 for the same period in 2021[197]. - Drug discovery revenues increased by 169% to $15,582,000 in Q1 2022 from $5,787,000 in Q1 2021, driven by collaboration milestones and research funding[199]. - Gross profit for the three months ended March 31, 2022, was $27,983,000, a 73% increase from $16,164,000 in the same period in 2021[197]. - General and administrative expenses increased by 65% to $22,133,000 in Q1 2022, up from $13,389,000 in Q1 2021, reflecting the costs associated with operating as a public company[197]. - Loss on equity investments was $1.8 million in Q1 2022, primarily due to the realized loss on the disposal of equity stake in Relay Therapeutics[212]. - Change in fair value resulted in a loss of $6.2 million in Q1 2022, compared to a gain of $24.8 million in Q1 2021, a change of $30.9 million[213]. - Interest income decreased to $328,000 in Q1 2022 from $420,000 in Q1 2021, a decrease of $92,000[214]. - The company reported an accumulated deficit of $264.4 million as of March 31, 2022[217]. Cash Flow and Investments - Cash, cash equivalents, and marketable securities totaled $529.0 million as of March 31, 2022[219]. - Net cash used in operating activities was $39.7 million in Q1 2022, compared to $10.9 million in Q1 2021[227]. - Investing activities provided approximately $36.3 million of cash in Q1 2022, primarily from marketable securities maturities[230]. - Financing activities provided approximately $0.9 million of cash in Q1 2022 from stock option exercises[232]. - The company plans to utilize existing cash primarily to fund software and drug discovery activities[222]. Research and Development - The company expects to submit an IND application to the FDA for the MALT1 program in the first half of 2022 and initiate a Phase 1 clinical trial in the second half of 2022[160]. - The company expects research and development expenses to increase substantially in absolute dollars as it continues to invest in drug discovery programs and platform advancements[187]. - Research and development expenses rose by 30% to $27,822,000 in Q1 2022, up from $21,448,000 in Q1 2021, primarily due to increased personnel-related expenses and CRO costs[209]. Collaborations and Partnerships - An exclusive collaboration with Bristol-Myers Squibb included an upfront payment of $55.0 million and potential milestone payments of up to $2.7 billion[165]. - The collaboration with Zai Lab Limited could yield up to approximately $338 million in milestone payments and 50% of profits from commercialization in the U.S.[166]. - The company acquired XTAL BioStructures, Inc. to enhance its service offerings in structural biology[167]. - The company has joined a multi-company effort to develop antiviral therapeutics for COVID-19, with no expectation of revenue generation from this initiative[173]. - The company has experienced minimal impacts from the COVID-19 pandemic on its business operations as of March 31, 2022[170]. Software Segment - The software segment generates revenue from software licenses, subscriptions, maintenance, professional services, and contributions[163]. - The gross margin for software products and services was 77% in Q1 2022, slightly down from 78% in Q1 2021, attributed to investments in large-scale deployments and increased royalty fees[205]. - The company plans to make focused investments in sales and marketing to expand its customer base and increase software sales to existing customers[188]. Future Expectations - Drug discovery revenue is expected to trend higher as collaborations advance, with milestone payments increasing in magnitude as programs progress[180]. - Fair value gains and losses from equity investments are expected to fluctuate significantly in future periods[193].