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].

Transforming Discovery of Therapeutics and Materials February 24, 2022 Fourth Quarter and Full-Year 2021 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 advant ...

Financial Data and Key Metrics Changes - Total revenue for 2021 was $137.9 million, a 28% increase over the prior year, with Q4 software revenue reaching $38.6 million, a 55% increase compared to Q4 2020 [7][13] - Operating expenses for Q4 2021 were $48.9 million, up from $35.6 million in Q4 2020, reflecting increased investment in R&D [13] - The net loss for 2021 was $101.2 million compared to a loss of $26.6 million in 2020 [15] Business Line Data and Key Metrics Changes - Software revenue for the full year was $113.2 million, up 22% over 2020, driven by strong growth in both life sciences and material sciences [14] - Drug discovery revenue for 2021 was $24.7 million, compared to $15.6 million in 2020, primarily due to revenue recognized from collaboration with BMS [15] Market Data and Key Metrics Changes - Total software annual contract value (ACV) reached $112.1 million in 2021, a 22% increase year-over-year [16] - The number of customers with ACV over $1 million was 15, with total ACV in this category increasing to $40.2 million in 2021, up from $35.5 million in 2020 [16] Company Strategy and Development Direction - The company aims for ACV growth of over 20% in 2023 and expects drug discovery revenue of at least $100 million in 2023, excluding potential revenue from lead internal programs [20] - The acquisition of XTAL BioStructures is intended to enhance structural biology capabilities and support drug discovery efforts [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance for 2022, expecting total annual revenue to be in the range of $161 million to $181 million, corresponding to 17% to 31% growth over 2021 [17] - The company anticipates continued strong growth in software revenue, with expectations for Q1 2022 software revenue to range from $28 million to $30 million [18] Other Important Information - The company established operations in Seoul, South Korea, and expanded operations in Hyderabad, India, to enhance competitive positioning [9] - Joel Lebowitz announced his retirement at the end of February 2022, with the company actively searching for his successor [11] Q&A Session Summary Question: What drove the strength in software revenue in Q4? - Management noted that the growth was driven by increased adoption of solutions by existing large customers and the addition of new customers [32] Question: How confident is the company in the drug discovery revenue guidance for 2023? - Management expressed confidence based on a broad portfolio of collaboration programs, with about 20 programs currently in the pipeline [34] Question: What is the status of the IND filing for the MALT1 program? - The company has completed GLP toxicology studies and is in the final planning phase for the IND submission, having interacted with the FDA [36] Question: What drives performance to either side of the software sales guidance for 2022? - Management indicated that performance is influenced by the commitment level of large customers to adopt solutions more extensively [40] Question: How does the company prioritize which programs to add to its pipeline? - The company focuses on targets with preclinical and human evidence, considering the clinical landscape and potential for compelling clinical data [46]

Financial Performance - In 2021, the company generated revenue of $137.9 million, representing a year-over-year growth of 28% compared to $108.1 million in 2020[26]. - The software revenue reached $113.2 million in 2021, an increase of 22% from 2020, driven by broad adoption in the biopharmaceutical industry[28]. - In 2021, the top 20 pharmaceutical companies accounted for $42.0 million, or 37%, of the company's software revenue[48]. - The company had 1,647 active customers as of December 31, 2021, with the top 10 customers representing approximately 33% of software revenue[49]. - The number of customers with an annual contract value (ACV) over $100,000 increased to 190 in 2021 from 131 in 2019, indicating growing adoption of the platform[50]. - The customer retention rate for those with an ACV over $100,000 was 98% for the year ended December 31, 2021[52]. Collaborations and Agreements - The company entered into a collaboration agreement with Bristol-Myers Squibb, receiving a $55.0 million upfront payment and being eligible for up to $2.7 billion in total milestones[25]. - The company has entered into collaborations across various therapeutic areas, including oncology and autoimmune diseases, with significant potential for milestone payments and royalties[70]. - The collaboration with Takeda allows the company to control the drug discovery process and retain intellectual property rights until Takeda exercises its option to acquire the program[76]. - The company is entitled to receive approximately $338 million in milestone payments from Zai Lab Limited for any product candidate developed under their collaboration[80]. - The company has a joint steering committee overseeing the collaboration with BMS, ensuring mutual agreement on research plans and targets[156]. Drug Discovery and Development - The company collaborated on over 20 drug discovery programs with more than ten biopharmaceutical companies in 2021, generating drug discovery revenue[21]. - The company plans to submit an IND application for its MALT1 program in the first half of 2022 and initiate a Phase 1 clinical trial in the second half of 2022[22]. - The MALT1 inhibitor program aims to treat patients with non-Hodgkin's lymphoma and chronic lymphocytic leukemia, with preclinical studies showing strong anti-tumor activity[83][92]. - The CDC7 inhibitor program is focused on advanced solid and liquid tumors, with preclinical molecules demonstrating inhibition of CDC7 and tumor growth inhibition in models[93][103]. - The company is pursuing undisclosed programs in oncology, immunology, and neurology, currently in the discovery stage[119]. Technology and Innovation - The computational platform can evaluate billions of molecules per day, significantly increasing the probability of finding novel molecules with desired properties[42]. - The company’s platform has demonstrated an eight-fold increase in the number of molecules with desired affinity compared to traditional methods[42]. - The computational platform enables the identification and advancement of multiple novel series from hit finding to lead optimization, enhancing drug discovery efficiency[86]. - The integration of machine learning with physics-based methods allows for the rapid evaluation of billions of molecules, enhancing the likelihood of identifying viable drug candidates[129]. - The computational methods employed by the company, such as FEP+, have led to the identification of novel nanomolar or picomolar inhibitors within the first few months of project chemistry[141]. Intellectual Property and Competitive Position - The company aims to protect its proprietary technology through patents, trade secrets, and continuous innovation[192]. - As of February 4, 2022, the company owned or held exclusive license rights to approximately 55 patents and patent applications, including at least 8 issued or allowed U.S. cases and 11 issued or allowed non-U.S. cases[196]. - The company has approximately 49 copyright registrations covering its proprietary software code as of February 4, 2022[201]. - The company relies on unpatented trade secrets and confidential know-how to maintain its competitive position, although these are difficult to protect[201]. - The company faces competition from major pharmaceutical and biotechnology companies, as well as smaller firms and academic institutions in the drug discovery space[150]. Sales and Operations - The company has established sales operations in the United States, Europe, Japan, India, and South Korea, supported by a global team of approximately 150 personnel[204]. - The company does not own or operate manufacturing facilities and relies on third-party contract manufacturers for drug development[206]. - The company expects to utilize various collaboration and distribution arrangements to commercialize its development candidates[205].

Schrödinger, Inc. (NASDAQ:SDGR) Q3 Earnings Conference Call November 10, 2021 4:30 PM ET Company Participants Ramy Farid – CEO Joel Lebowitz – CFO Karen Akinsanya – Executive Vice President Jaren Madden – Senior Vice President, IR Conference Call Participants Michael Ryskin – Bank of America Gary Nashman – BMO Capital Markets Matt Hewitt – Craig-Hallum Capital Group Gora Gabarachu – BMO Capital Michael Yee – Jefferies Operator Thank you for standing by. Welcome to Schrodinger's conference call to review the ...

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 September 30, 2021 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 jurisdicti ...

Schrödinger, Inc. (CSIQ) Q2 2021 Earnings Conference Call August 12, 2021 8:30 AM ET Company Participants Ramy Farid – President and CEO Tracy Lessor – Executive Director of Corporate Communications Karen Akinsanya – Executive Vice President, Chief Biomedical Scientists, and Head of Discovery R&D Joel Lebowitz – Executive Vice President and CFO Conference Call Participants Michael Yee – Jefferies Michael Ryskin – Bank of America Gary Nashman – BMO Capital Markets David Lebowitz – Morgan Stanley Matt Hewitt ...

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, 2021 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 ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $32.1 million, representing a 23% increase compared to Q1 2020 [34] - Software revenue reached $26.3 million, reflecting an 11% growth year-over-year [35] - Drug discovery revenue was $5.8 million, up from $2.4 million in Q1 2020, including $2.2 million from a collaboration milestone recognized earlier than anticipated [36][37] - Gross profit was $16.2 million, a 3% increase from the previous year, with software gross margin at 78%, down from 83% [38] - Operating expenses rose to $40.1 million from $27.4 million in Q1 2020, driven by R&D investments and public company infrastructure costs [39] - The company recorded a net loss of approximately $29,000, a significant improvement from a loss of $13.8 million in the prior year [41] - Cash and equivalents at the end of Q1 2021 were $649 million, up from $643.2 million at the end of Q4 2020 [41] Business Line Data and Key Metrics Changes - Software revenue growth was attributed to increased deployment of solutions and new customer growth [35] - Drug discovery revenue included significant contributions from collaborations, particularly with Bristol Myers Squibb [36][37] Market Data and Key Metrics Changes - The company is experiencing a strong financial position, allowing for continued investment in R&D and growth initiatives [16] Company Strategy and Development Direction - The company aims to leverage its computational platform for drug discovery and materials applications, focusing on high-quality molecule identification [9][10] - Strategic collaborations, such as with NVIDIA and AstraZeneca, are intended to enhance platform capabilities and broaden deployment [15][13] - The company is committed to advancing its internal drug discovery pipeline and expanding its software business [16][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to in-person work by Q4 2021 and highlighted the dedication of employees during COVID-19 challenges [17] - The company reaffirmed its full-year revenue guidance, expecting total annual revenue between $124 million and $142 million [42] - Anticipated software revenue growth is expected to be higher in the second half of the year, particularly in Q4 [43] Other Important Information - The company is focused on maintaining its leadership in physics-based computation and machine learning to enhance prediction accuracy [14] - The internal drug discovery pipeline is advancing, with plans for IND submissions in 2022 for several programs [21][32] Q&A Session Summary Question: Software revenue guidance and confidence - Management maintained guidance for software revenue, expecting higher growth in the second half of the year, particularly in Q4 [52][54] Question: MALT1 program and IND submissions - The company plans to move forward with IND studies for the MALT1 program and remains open to potential partnerships [56][57] Question: Software revenue seasonality - Management confirmed that Q1 typically shows stronger software revenue compared to Q2, with expectations for higher growth in the second half of the year [61][62] Question: AstraZeneca collaboration details - The expanded collaboration with AstraZeneca is a significant step, transitioning from a pilot program to broader deployment across their programs [72][73] Question: Cost of constructing internal programs - The estimated cost for external companies to construct similar internal programs is around $30 million to $40 million for software licenses alone [75] Question: Progress on collaborative programs - The company remains confident in advancing collaborative programs through GLP-tox studies and IND enabling studies [80] Question: Pharmaceutical purchasing dynamics - Most contracts are annual, but companies may make incremental decisions throughout the year based on needs [88][89]