Schrodinger(SDGR)2022-02-25 04:22Financial Data and Key Metrics Changes - Total revenue for 2021 was 38.6 million, a 55% increase compared to Q4 2020 [7][13] - Operating expenses for Q4 2021 were 35.6 million in Q4 2020, reflecting increased investment in R&D [13] - The net loss for 2021 was 26.6 million in 2020 [15] Business Line Data and Key Metrics Changes - Software revenue for the full year was 24.7 million, compared to 112.1 million in 2021, a 22% increase year-over-year [16] - The number of customers with ACV over 40.2 million in 2021, up from 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 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 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]