Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $47.3 million, compared to $35.2 million in Q2 2023, reflecting a year-over-year increase driven by software and drug discovery revenue [15][20] - Software revenue was $35.4 million in Q2 2024, up from $29.4 million in Q2 2023, marking a 21% increase [11][12] - Drug discovery revenue increased to $11.9 million in Q2 2024 from $5.8 million in the same period last year [15] - Overall gross margin improved to 66% in Q2 2024 from 39% in Q2 2023, driven by higher revenue and lower costs [17] Business Line Data and Key Metrics Changes - On-premise software revenue grew by 11.5% to $18.8 million, while hosted software revenue surged by 82% to $8 million [12] - Maintenance revenue remained flat year-over-year at $5.8 million, and professional services revenue increased by 23% [12] - The shift in employee allocation from collaboration projects to proprietary research contributed to a significant decrease in drug discovery service costs to $8.8 million from $14.7 million [16] Market Data and Key Metrics Changes - The company noted challenges in the Chinese market due to reduced capital availability for biopharma research, while growth opportunities were observed in Europe and North America [14] - The company maintained its revenue guidance for the full year, indicating confidence in the growth potential despite market volatility [10][22] Company Strategy and Development Direction - The company is focused on scaling up its software business and advancing its drug discovery programs, with a new initiative aimed at predictive toxicology funded by a $10 million grant from the Gates Foundation [8][22] - Collaborations with partner companies are seen as crucial for validation and capital, with recent successes including Morphic Therapeutic's planned acquisition by Lilly for $3.2 billion [7][24] - The company aims to leverage advanced computational methods and machine learning to enhance drug discovery efficiency [8][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in customer retention and scaling up software usage, particularly in Q4, which is typically the largest quarter for renewals [32][34] - The company anticipates that the predictive toxicology project will contribute to software revenue growth in the coming years, despite a modest negative impact on gross margins during the grant period [22][23] - Management highlighted the importance of maintaining a strong cash position and exploring partnership opportunities to support ongoing operations [35] Other Important Information - The company reported a loss per share of $0.74 for Q2 2024, compared to net income of $4.3 million in Q2 2023 [20] - The average fully diluted share count decreased to 72.7 million from 75.1 million year-over-year [21] - The company expects to receive $48 million from the sale of its holding in Morphic, which will help offset cash used in operations [21] Q&A Session Summary Question: Outlook for the rest of the year and customer dynamics - Management noted strong engagement with customers and high retention rates, with expectations for scaling up usage primarily in Q4 [32][34] Question: Cash position and options for capital - Management highlighted the expected cash inflow from Morphic and ongoing discussions for potential partnerships as sources of capital [35] Question: Growth in software business among smaller biotech companies - Despite a turbulent environment, new biotech companies are still forming and seeking cost-effective solutions, leading to more new accounts than reductions [37] Question: Launch timeline for predictive toxicology tools - The company is excited about the project and expects to release it in the near future, contributing to software revenue growth [40][41] Question: Clinical trial enrollment and timeline changes - Enrollment is progressing well, and the timeline for data readouts has been refined to provide more specific guidance [45][46] Question: Impact of large-scale customer discussions on revenue - Management indicated that discussions with large customers could lead to both immediate and long-term revenue growth opportunities [47][48]

Schrodinger, Inc. (SDGR) reported $47.33 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 34.5%. EPS of -$0.74 for the same period compares to -$0.21 a year ago. The reported revenue represents a surprise of +17.78% over the Zacks Consensus Estimate of $40.19 million. With the consensus EPS estimate being -$0.85, the EPS surprise was +12.94%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Company Performance - Schrodinger, Inc. reported a quarterly loss of $0.74 per share, which was better than the Zacks Consensus Estimate of a loss of $0.85, and compared to a loss of $0.21 per share a year ago, indicating an earnings surprise of 12.94% [1] - The company posted revenues of $47.33 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 17.78%, and this represents an increase from year-ago revenues of $35.19 million [2] - Over the last four quarters, Schrodinger has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Future Outlook - The sustainability of Schrodinger's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is -$0.87 on revenues of $42.66 million, and for the current fiscal year, it is -$2.83 on revenues of $211.58 million [7] - The estimate revisions trend for Schrodinger is mixed, resulting in a Zacks Rank 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Medical Info Systems industry, to which Schrodinger belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

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 June 30, 2024 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 ________________________________________ S ...

Exhibit 99.1 Schrödinger Reports Strong Second Quarter 2024 Financial Results Second Quarter Total Revenue of $47.3 Million, Software Revenue of $35.4 Million Launches Major Initiative to Expand Application of Computational Tools for Predictive Toxicology Initial Clinical Data Expected for SGR-1505 in 1H25, SGR-2921 and SGR-3515 Data in 2H25 New York, July 31, 2024 – Schrödinger, Inc. (Nasdaq: SDGR), whose physics-based computational platform is transforming the way therapeutics and materials are discovered ...

Earnings Expectations - The company is expected to report a quarterly loss of $0 85 per share, representing a year-over-year decline of 304 8% [3] - Revenues are projected to be $40 19 million, up 14 2% from the same quarter last year [4] - The consensus EPS estimate has been revised 5 36% lower over the last 30 days, reflecting analysts' reassessment of initial estimates [5] Earnings Surprise Potential - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -13 58%, indicating analysts have become bearish on the company's earnings prospects [11] - The stock currently carries a Zacks Rank of 3, making it difficult to predict an earnings beat [12][13] - Historically, the company has beaten consensus EPS estimates two times over the last four quarters [15] Market Impact - The earnings report, expected on July 31, 2024, could influence the stock price depending on whether the results exceed or fall short of expectations [2] - A positive Earnings ESP combined with a strong Zacks Rank increases the likelihood of an earnings beat, with stocks in this category producing a positive surprise nearly 70% of the time [9] - However, the company does not appear to be a compelling earnings-beat candidate, and investors should consider other factors before making decisions [18]

Schrodinger's Wave Equation joebelanger Schrödinger, Inc. (NASDAQ:SDGR) is a biotech company specializing in physics based computational chemistry, along with a traditional pipeline of new medicines being tested in clinical trials. The company went public in February 2020, but had existed before that as a private company since 1990. Over this time, Schrödinger built a differentiated physics-based computational platform to enable the discovery of molecules for drug development. Based on the growth of the sof ...

Schrödinger, Inc. (NASDAQ:SDGR) Q1 2024 Earnings Conference Call May 1, 2024 4:30 PM ET Company Participants Ramy Farid - President and CEO Geoff Porges - CFO Karen Akinsanya - President R&D, Therapeutics Jaren Madden - Senior Vice President, Investor Relations and Corporate Communications Conference Call Participants Michael Yee - Jefferies David Leibowitz - Citi Scott Schoenhaus - KeyBanc Vikram Purohit - Morgan Stanley Conor McKay - BMO Steven Mah - TD Cowen Michael Ryskin - Bank of America Matthew Hewit ...

| --- | --- | --- | --- | |---------------------------------------------|-------|-------|-------| | | | | | | | | | | | Pioneering Computational Molecular Design | | | | | May 2024 | | | | | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

Schrodinger, Inc. (SDGR) came out with a quarterly loss of $0.76 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.38 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post a loss of $0.44 per share when it actually produced a loss of $0.32, delivering a surprise of 27.27%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Schrodinger, which belongs to the Zacks ...