```markdown PART I. FINANCIAL INFORMATION [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Schrödinger reported **$32.1 million** in total revenues for Q1 2021, a 23% year-over-year increase, achieving a near break-even net loss of **$0.5 million** due to a **$24.8 million** gain on equity investments, while maintaining **$649.0 million** in liquidity [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets were **$744.2 million**, slightly down from year-end 2020, driven by a shift from cash to marketable securities, while total liabilities decreased and stockholders' equity increased to **$631.8 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Current Assets** | | | | Cash and cash equivalents | $133,122 | $202,296 | | Marketable securities | $515,372 | $440,395 | | Total current assets | $675,238 | $682,978 | | **Total Assets** | **$744,189** | **$746,263** | | **Current Liabilities** | | | | Deferred revenue | $40,759 | $45,403 | | Total current liabilities | $67,621 | $73,205 | | **Total Liabilities** | **$112,413** | **$122,244** | | **Total Stockholders' Equity** | **$631,776** | **$624,019** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues increased 23% to **$32.1 million** in Q1 2021, primarily from drug discovery and software growth, but a widened operating loss of **$23.9 million** was largely offset by a **$24.8 million** gain on investments, resulting in a net loss of **$0.5 million** Condensed Consolidated Statements of Operations (in thousands) | Account | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | **Total revenues** | **$32,127** | **$26,174** | | Software products and services | $26,340 | $23,812 | | Drug discovery | $5,787 | $2,362 | | **Gross profit** | **$16,164** | **$15,625** | | Research and development | $21,448 | $13,700 | | Total operating expenses | $40,076 | $27,425 | | **Loss from operations** | **$(23,912)** | **$(11,800)** | | Change in fair value | $24,824 | $(3,079) | | **Net loss** | **$(523)** | **$(14,271)** | | Net loss per share | $0.00 | $(0.34) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$10.9 million** in Q1 2021, with **$61.9 million** used in investing activities for marketable securities, while financing activities provided **$3.7 million**, significantly less than the prior year's IPO-driven inflow Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | $(10,921) | $(5,778) | | Net cash used in investing activities | $(61,909) | $(87,913) | | Net cash provided by financing activities | $3,656 | $212,454 | | **Net (decrease) increase in cash** | **$(69,174)** | **$118,763** | | Cash, beginning of period | $202,796 | $26,486 | | Cash, end of period | $133,622 | $145,249 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail revenue recognition from the **$55 million** BMS collaboration, segment performance showing **$20.4 million** software gross profit and **$4.3 million** drug discovery gross loss, and significant post-quarter office lease expansions - The company entered into a collaboration and license agreement with Bristol-Myers Squibb (BMS) in November 2020, receiving a **$55 million** upfront payment. For the three months ended March 31, 2021, the company recognized **$2.4 million** in revenue associated with this agreement[77](index=77&type=chunk)[85](index=85&type=chunk) Segment Gross Profit (in thousands) | Segment | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Software | $20,434 | $19,811 | | Drug discovery | $(4,270) | $(4,186) | | **Total segment gross profit** | **$16,164** | **$15,625** | - In January 2021, the company sold its equity stake in Relay Therapeutics for **$15.7 million**, resulting in a loss of **$1.8 million**[143](index=143&type=chunk) - Subsequent to the quarter end, the company entered into a major new office lease in New York for approximately 108,849 square feet and expanded its Portland, Oregon office lease by 8,537 square feet[152](index=152&type=chunk)[154](index=154&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2021 revenue growth to software and drug discovery, noting an increased operating loss of **$23.9 million** due to R&D investments, largely offset by an equity investment gain, with **$649.0 million** in liquidity deemed sufficient for the next 12 months [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Total revenue increased **$6.0 million** (23%) in Q1 2021, driven by drug discovery and software growth, while operating expenses rose 46% due to R&D and G&A, with a **$24.8 million** gain on the Morphic investment significantly reducing the net loss Revenue by Source (in thousands) | Revenue Source | Q1 2021 | Q1 2020 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | On-premise software | $17,355 | $15,600 | $1,755 | 11% | | Hosted software | $2,600 | $2,133 | $467 | 22% | | Software maintenance | $4,105 | $3,537 | $568 | 16% | | Professional services | $2,280 | $2,542 | $(262) | -10% | | **Total software** | **$26,340** | **$23,812** | **$2,528** | **11%** | | **Drug discovery** | **$5,787** | **$2,362** | **$3,425** | **145%** | | **Total revenues** | **$32,127** | **$26,174** | **$5,953** | **23%** | - The increase in drug discovery revenue was primarily due to collaboration services for BMS which began in November 2020, as well as the timing and amount of other collaboration milestones and research funding[200](index=200&type=chunk) - R&D expenses increased by **57% YoY**, mainly due to a **$4.1 million** increase in personnel-related expenses and a **$3.3 million** increase in CRO costs for internal drug discovery programs[205](index=205&type=chunk) - The change in fair value was a **$24.8 million** gain in Q1 2021, primarily from the company's investment in Morphic, compared to a **$3.1 million** loss in Q1 2020[210](index=210&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2021, the company held **$649.0 million** in cash and marketable securities, bolstered by **$209.6 million** from its IPO and **$325.6 million** from a follow-on offering, which management deems sufficient for at least the next 12 months - As of March 31, 2021, the company had cash, cash equivalents, restricted cash, and marketable securities of **$649.0 million**[219](index=219&type=chunk) - The company raised net proceeds of **$209.6 million** from its IPO in February 2020 and **$325.6 million** from a follow-on offering in August 2020[217](index=217&type=chunk) - Management believes existing cash will be sufficient to fund operations and capital expenditures for at least the next 12 months[227](index=227&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risks or risk management policies since its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 - There have been no material changes in the company's reported market risks or risk management policies since the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2020[239](index=239&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that as of March 31, 2021, the company's disclosure controls and procedures were effective at the reasonable assurance level[241](index=241&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[242](index=242&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings - The company is not currently subject to any material legal proceedings[245](index=245&type=chunk) [Risk Factors](index=38&type=page&id=Item%201A.%20Risk%20Factors) The company faces financial risks from historical and expected operating losses, business risks related to software renewals and competition, uncertainties in drug discovery returns, and operational risks including COVID-19 impacts, IP infringement, and personnel retention - **Financial Risks:** The company has a history of significant operating losses (**$129.6M** accumulated deficit as of March 31, 2021) and expects to incur losses for the next several years. Quarterly results may fluctuate significantly[247](index=247&type=chunk)[254](index=254&type=chunk) - **Business Risks:** A significant portion of software revenue depends on customer renewals. The company faces competition from established commercial competitors and academic consortia. Its drug discovery efforts may not result in commercially viable products[266](index=266&type=chunk)[273](index=273&type=chunk)[297](index=297&type=chunk) - **Intellectual Property Risks:** The company relies on license agreements, particularly with Columbia University, and failure to comply could lead to loss of important IP rights. It also faces risks of patent litigation and protecting its trade secrets[340](index=340&type=chunk)[341](index=341&type=chunk)[367](index=367&type=chunk) - **Operational & Personnel Risks:** The COVID-19 pandemic could negatively affect business operations and delay drug discovery programs. The company's success depends on retaining key executives and attracting qualified scientific and technical personnel[316](index=316&type=chunk)[395](index=395&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period, and no material change in the planned use of **$209.6 million** net proceeds from the February 2020 IPO - The company received net proceeds of **$209.6 million** from its IPO on February 10, 2020[433](index=433&type=chunk) - There has been no material change in the planned use of proceeds from the IPO as described in the final prospectus[434](index=434&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) The filing includes required certifications from the Principal Executive Officer and Principal Financial Officer, along with XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906[439](index=439&type=chunk) - XBRL Instance Document and related taxonomy files were also included as exhibits[439](index=439&type=chunk) ```

SCHRÖDINGER. Transforming Discovery of Therapeutics and Materials March 23, 2021 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-based computational plat ...

Start Time: 08:30 January 1, 0000 9:16 AM ET Schrödinger, Inc. (NASDAQ:SDGR) Q4 2020 Earnings Conference Call March 04, 2021, 08:30 AM ET Company Participants Ramy Farid - President and CEO Joel Lebowitz - EVP and CFO Karen Akinsanya - EVP, Chief Biomedical Scientist, Head of Discovery R&D Jaren Madden - SVP, IR and Corporate Communications Conference Call Participants Michael Yee - Jefferies Do Kim - BMO Capital Markets Michael Ryskin - Bank of America Merrill Lynch Operator Thank you for standing by, and ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 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 in ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2020 was $25.8 million, representing a 29% increase compared to Q3 2019 [11][34] - Software revenue reached $22.9 million, an increase of 42% year-over-year [11][35] - Gross profit was $15.3 million, up 43% from the same quarter last year [39] - Operating expenses were $30.7 million, a 40% increase compared to Q3 2019 [40] - Net income adjusted for non-controlling interests was $3.9 million, compared to a net loss of $11.5 million in Q3 2019 [42] Business Line Data and Key Metrics Changes - Drug discovery segment revenue was $2.9 million, down 24% compared to Q3 2019, primarily due to the timing of program milestones [37] - Deferred revenue balance at the end of the quarter was $21.7 million, a 13% increase from Q3 2019 [39] Market Data and Key Metrics Changes - The company experienced growth in both life sciences and material science sectors, with material science growing at a higher percentage than life sciences [36][62] - The company is expanding into new verticals, including polymers and energy storage, indicating a growing market presence [62] Company Strategy and Development Direction - The company aims to accelerate the growth of its software business and advance its drug discovery programs [4][10] - Plans to initiate IND-enabling studies for at least one program in the first half of 2021 [40][30] - The company is focused on maintaining its lead in drug discovery technology and is open to exploring M&A opportunities [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy despite potential temporary delays in drug discovery programs due to COVID-19 [44][45] - The company is well-positioned to deliver on its mission to transform drug discovery and materials design [46] Other Important Information - The company raised $347 million in gross proceeds from a follow-on public offering, increasing cash and equivalents to $599 million [10][43] - The company continues to hire talented scientists and software developers to support its growth [14] Q&A Session Summary Question: How has the company capitalized on deeper engagement with the platform? - Management noted that the technology has significantly improved, leading to increased validation and scaling up of software use by larger companies [49] Question: When will the company decide to move internal drugs into clinical studies? - Management indicated that they are building the necessary infrastructure and hiring to support clinical studies, with plans to initiate GLP-tox studies [50] Question: Are there metrics to support customer acceleration in usage? - Management confirmed that they are seeing significant contributions from increased adoption by large customers, leading to larger contract sizes and additional licenses [56] Question: What are the investment priorities going forward? - Management emphasized the importance of ramping up capabilities for IND-enabling studies and maintaining investment in both drug discovery and material science [64]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Schrodinger, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 95-4284541 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 120 West 45th Street, 17th Floor | | | New York, NY | 10036 | | (Address of principal executive offices) | (Zip Code) | | Registrant's telephone number, including area code: (212) 295-5800 | | | Securities registere ...

Schrödinger, Inc. (NASDAQ:SDGR) Q2 2020 Earnings Conference Call August 10, 2020 8:30 AM ET Company Participants Ramy Farid - President and CEO Karen Akinsanya - EVP, Chief Biomedical Scientist, Head of Discovery R&D Joel Lebowitz - EVP and CFO Conference Call Participants David Lebowitz - Morgan Stanley Do Kim - BMO Capital Markets Mike Ryskin - Bank of America Operator Good morning and welcome to the Schrödinger Second Quarter 2020 Earnings Conference Call. At this time, all participant lines are in a lis ...

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, 2020 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 | | | --- | --- | --- | ...

SCHRÖDINGER. Transforming Discovery of Therapeutics and Materials 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-based computational platform, our strat ...

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 March 31, 2020 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 o ...