Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 04, 2020 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Jun. 30, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | Schrodinger, Inc. | |
Entity Central Index Key | 0001490978 | |
Entity Tax Identification Number | 95-4284541 | |
Entity File Number | 001-39206 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 120 West 45th Street | |
Entity Address, Address Line Two | 17th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 212 | |
Local Phone Number | 295-5800 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | SDGR | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 50,146,628 | |
Limited Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,164,193 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 110,380 | $ 25,986 |
Restricted cash | 500 | 500 |
Marketable securities | 173,646 | 59,844 |
Accounts receivable, net of allowance for doubtful accounts of $50 and $50 | 13,849 | 18,676 |
Unbilled and other receivables | 3,345 | 7,062 |
Prepaid expenses | 5,294 | 6,468 |
Total current assets | 307,014 | 118,536 |
Property and equipment, net | 5,837 | 6,268 |
Equity investments | 22,680 | 15,366 |
Right of use assets | 11,918 | 12,762 |
Other assets | 2,102 | 2,338 |
Total assets | 349,551 | 155,270 |
Current liabilities: | ||
Accounts payable | 5,523 | 3,524 |
Accrued payroll, taxes, and benefits | 5,757 | 7,034 |
Deferred revenue | 23,138 | 25,054 |
Lease liabilities | 5,839 | 5,584 |
Other accrued liabilities | 2,791 | 3,824 |
Total current liabilities | 43,048 | 45,020 |
Deferred revenue, long-term | 1,979 | 2,205 |
Lease liabilities, long-term | 7,777 | 8,888 |
Other liabilities, long-term | 600 | 900 |
Total liabilities | 53,404 | 57,013 |
Commitments and contingencies (Note 5) | ||
Convertible preferred stock: | ||
Total convertible preferred stock | 191,580 | |
Stockholders' equity (deficit): | ||
Common stock | 501 | 61 |
Additional paid-in capital | 417,032 | 11,655 |
Accumulated deficit | (122,272) | (105,096) |
Accumulated other comprehensive income | 727 | 16 |
Total stockholders’ equity (deficit) of Schrödinger stockholders | 296,120 | (93,364) |
Noncontrolling interest | 27 | 41 |
Total stockholders’ equity (deficit) | 296,147 | (93,323) |
Total liabilities, convertible preferred stock, and stockholders’ equity (deficit) | 349,551 | 155,270 |
Series E Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Total convertible preferred stock | 109,270 | |
Series D Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Total convertible preferred stock | 22,000 | |
Series C Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Total convertible preferred stock | 19,844 | |
Series B Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Total convertible preferred stock | 9,840 | |
Series A Convertible Preferred Stock | ||
Convertible preferred stock: | ||
Total convertible preferred stock | $ 30,626 | |
Limited Common Stock | ||
Stockholders' equity (deficit): | ||
Common stock | 132 | |
Total stockholders’ equity (deficit) | $ 132 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Allowance for doubtful accounts receivable | $ 50 | $ 50 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 425,000,000 |
Common stock, shares issued | 50,139,639 | 6,121,821 |
Common stock, shares outstanding | 50,139,639 | 6,121,821 |
Series E Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock, authorized | 0 | 77,150,132 |
Convertible preferred stock, issued | 0 | 73,795,777 |
Convertible preferred stock, outstanding | 0 | 73,795,777 |
Series D Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock, authorized | 0 | 39,540,611 |
Convertible preferred stock, issued | 0 | 39,540,611 |
Convertible preferred stock, outstanding | 0 | 39,540,611 |
Series C Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock, authorized | 0 | 47,242,235 |
Convertible preferred stock, issued | 0 | 47,242,235 |
Convertible preferred stock, outstanding | 0 | 47,242,235 |
Series B Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock, authorized | 0 | 29,468,101 |
Convertible preferred stock, issued | 0 | 29,468,101 |
Convertible preferred stock, outstanding | 0 | 29,468,101 |
Series A Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock, authorized | 0 | 134,704,785 |
Convertible preferred stock, issued | 0 | 134,704,785 |
Convertible preferred stock, outstanding | 0 | 134,704,785 |
Limited Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 146,199,885 |
Common stock, shares issued | 13,164,193 | 0 |
Common stock, shares outstanding | 13,164,193 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 23,092 | $ 19,010 | $ 49,266 | $ 39,751 |
Cost of revenues: | ||||
Total cost of revenues | 9,509 | 9,159 | 20,058 | 16,896 |
Gross profit | 13,583 | 9,851 | 29,208 | 22,855 |
Operating expenses: | ||||
Research and development | 16,657 | 9,531 | 30,357 | 17,969 |
Sales and marketing | 4,362 | 5,343 | 9,151 | 10,436 |
General and administrative | 9,651 | 8,940 | 18,587 | 14,026 |
Total operating expenses | 30,670 | 23,814 | 58,095 | 42,431 |
Loss from operations | (17,087) | (13,963) | (28,887) | (19,576) |
Other income: | ||||
Gain on equity investments | 4,156 | 4,156 | ||
Change in fair value | 8,359 | 12,661 | 5,280 | 12,034 |
Interest income | 570 | 524 | 1,269 | 962 |
Total other income | 13,085 | 13,185 | 10,705 | 12,996 |
Loss before income taxes | (4,002) | (778) | (18,182) | (6,580) |
Income tax expense (benefit) | 64 | (51) | 155 | (5) |
Net loss | (4,066) | (727) | (18,337) | (6,575) |
Net loss attributable to noncontrolling interest | (716) | (227) | (1,161) | (281) |
Net loss attributable to Schrödinger common and limited common stockholders | $ (3,350) | $ (500) | $ (17,176) | $ (6,294) |
Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: | $ (0.05) | $ (0.01) | $ (0.33) | $ (0.14) |
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: | 63,296,366 | 44,495,701 | 51,981,647 | 44,493,667 |
Software Products and Services | ||||
Revenues: | ||||
Total revenues | $ 20,900 | $ 14,482 | $ 44,712 | $ 33,087 |
Cost of revenues: | ||||
Total cost of revenues | 3,862 | 3,671 | 7,863 | 6,804 |
Drug Discovery | ||||
Revenues: | ||||
Total revenues | 2,192 | 4,528 | 4,554 | 6,664 |
Cost of revenues: | ||||
Total cost of revenues | $ 5,647 | $ 5,488 | $ 12,195 | $ 10,092 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss attributable to Schrödinger common and limited common stockholders | $ (3,350) | $ (500) | $ (17,176) | $ (6,294) |
Changes in market value of investments, net of tax: | ||||
Unrealized gain on marketable securities | 1,169 | 18 | 711 | 28 |
Comprehensive loss | $ (2,181) | $ (482) | $ (16,465) | $ (6,266) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Series E Preferred Stock | Series D Preferred Stock | Series C Preferred Stock | Series B Preferred Stock | Series A Preferred Stock | Limited Common Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Non Controlling Interest |
Beginning Balance at Dec. 31, 2018 | $ (71,560) | $ 59 | $ 8,915 | $ (80,525) | $ (9) | |||||||
Convertible preferred stock, Beginning Balance, Shares at Dec. 31, 2018 | 53,669,659 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Beginning Balance at Dec. 31, 2018 | $ 79,377 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||
Beginning Balance, Shares at Dec. 31, 2018 | 5,906,976 | |||||||||||
Change in unrealized (loss) gain on marketable securities | 10 | 10 | ||||||||||
Issuances of common stock upon stock option exercise | 115 | $ 1 | 114 | |||||||||
Issuances of common stock upon stock option exercise, Shares | 44,160 | |||||||||||
Issuances of Series E preferred stock, net of issuance costs, Shares | 3,354,353 | |||||||||||
Issuances of Series E preferred stock, net of issuance costs | $ 4,951 | |||||||||||
Stock-based compensation | 520 | 520 | ||||||||||
Contributions by non-controlling interest | 100 | $ 100 | ||||||||||
Net loss | (5,848) | (5,794) | (54) | |||||||||
Ending Balance at Mar. 31, 2019 | (76,663) | $ 60 | 9,549 | (86,319) | 1 | 46 | ||||||
Convertible preferred stock, Ending Balance, Shares at Mar. 31, 2019 | 57,024,012 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Ending Balance at Mar. 31, 2019 | $ 84,328 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||
Ending Balance, Shares at Mar. 31, 2019 | 5,951,136 | |||||||||||
Beginning Balance at Dec. 31, 2018 | (71,560) | $ 59 | 8,915 | (80,525) | (9) | |||||||
Convertible preferred stock, Beginning Balance, Shares at Dec. 31, 2018 | 53,669,659 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Beginning Balance at Dec. 31, 2018 | $ 79,377 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||
Beginning Balance, Shares at Dec. 31, 2018 | 5,906,976 | |||||||||||
Change in unrealized (loss) gain on marketable securities | $ 28 | |||||||||||
Issuances of common stock upon stock option exercise, Shares | 69,187 | |||||||||||
Net loss | $ (6,575) | |||||||||||
Ending Balance at Jun. 30, 2019 | (76,550) | $ 60 | 10,145 | (86,819) | 19 | 45 | ||||||
Convertible preferred stock, Ending Balance, Shares at Jun. 30, 2019 | 73,795,777 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Ending Balance at Jun. 30, 2019 | $ 109,270 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||
Ending Balance, Shares at Jun. 30, 2019 | 5,976,163 | |||||||||||
Beginning Balance at Mar. 31, 2019 | (76,663) | $ 60 | 9,549 | (86,319) | 1 | 46 | ||||||
Convertible preferred stock, Beginning Balance, Shares at Mar. 31, 2019 | 57,024,012 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Beginning Balance at Mar. 31, 2019 | $ 84,328 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||
Beginning Balance, Shares at Mar. 31, 2019 | 5,951,136 | |||||||||||
Change in unrealized (loss) gain on marketable securities | 18 | 18 | ||||||||||
Issuances of common stock upon stock option exercise | $ 65 | 65 | ||||||||||
Issuances of common stock upon stock option exercise, Shares | 25,027 | 25,027 | ||||||||||
Issuances of Series E preferred stock, net of issuance costs, Shares | 16,771,765 | |||||||||||
Issuances of Series E preferred stock, net of issuance costs | $ 24,942 | |||||||||||
Stock-based compensation | $ 531 | 531 | ||||||||||
Contributions by non-controlling interest | 226 | 226 | ||||||||||
Net loss | (727) | (500) | (227) | |||||||||
Ending Balance at Jun. 30, 2019 | (76,550) | $ 60 | 10,145 | (86,819) | 19 | 45 | ||||||
Convertible preferred stock, Ending Balance, Shares at Jun. 30, 2019 | 73,795,777 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Ending Balance at Jun. 30, 2019 | $ 109,270 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||
Ending Balance, Shares at Jun. 30, 2019 | 5,976,163 | |||||||||||
Beginning Balance at Dec. 31, 2019 | (93,323) | $ 61 | 11,655 | (105,096) | 16 | 41 | ||||||
Convertible preferred stock, Beginning Balance, Shares at Dec. 31, 2019 | 73,795,777 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Beginning Balance at Dec. 31, 2019 | 191,580 | $ 109,270 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | ||||||
Beginning Balance, Shares at Dec. 31, 2019 | 6,121,821 | |||||||||||
Change in unrealized (loss) gain on marketable securities | (458) | (458) | ||||||||||
Issuances of common stock upon stock option exercise | 177 | $ 1 | 176 | |||||||||
Issuances of common stock upon stock option exercise, Shares | 57,581 | |||||||||||
Stock-based compensation | 1,775 | 1,775 | ||||||||||
Issuances of common stock upon initial public offering, net of issuance costs | 209,633 | $ 136 | 209,497 | |||||||||
Issuances of common stock upon initial public offering, net of issuance costs, Shares. | 13,664,704 | |||||||||||
Conversion of convertible preferred stock into common stock | 149,824 | $ 303 | 149,521 | |||||||||
Temporary equity, conversion of convertible preferred stock into common stock, Shares | (73,795,777) | (17,844,124) | (134,704,785) | |||||||||
Temporary equity, conversion of convertible preferred stock into common stock | $ (109,270) | $ (9,928) | $ (30,626) | |||||||||
Conversion of convertible preferred stock into common stock, Shares | 30,278,832 | |||||||||||
Exchange of convertible preferred stock into limited common stock | 41,756 | $ 132 | 41,624 | |||||||||
Temporary equity, exchange of convertible preferred stock into limited common stock, Shares | (21,696,487) | (47,242,235) | (29,468,101) | |||||||||
Temporary equity, exchange of convertible preferred stock into limited common stock | $ (12,072) | $ (19,844) | $ (9,840) | |||||||||
Exchange of convertible preferred stock into limited common stock, Shares | 13,164,193 | |||||||||||
Contributions by non-controlling interest | 435 | 435 | ||||||||||
Net loss | (14,271) | (13,826) | (445) | |||||||||
Ending Balance at Mar. 31, 2020 | 295,548 | $ 132 | $ 501 | 414,248 | (118,922) | (442) | 31 | |||||
Ending Balance, Shares at Mar. 31, 2020 | 13,164,193 | 50,122,938 | ||||||||||
Beginning Balance at Dec. 31, 2019 | (93,323) | $ 61 | 11,655 | (105,096) | 16 | 41 | ||||||
Convertible preferred stock, Beginning Balance, Shares at Dec. 31, 2019 | 73,795,777 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||
Convertible preferred stock, Beginning Balance at Dec. 31, 2019 | 191,580 | $ 109,270 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | ||||||
Beginning Balance, Shares at Dec. 31, 2019 | 6,121,821 | |||||||||||
Change in unrealized (loss) gain on marketable securities | $ 711 | |||||||||||
Issuances of common stock upon stock option exercise, Shares | 74,282 | |||||||||||
Net loss | $ (18,337) | |||||||||||
Ending Balance at Jun. 30, 2020 | 296,147 | $ 132 | $ 501 | 417,032 | (122,272) | 727 | 27 | |||||
Ending Balance, Shares at Jun. 30, 2020 | 13,164,193 | 50,139,639 | ||||||||||
Beginning Balance at Mar. 31, 2020 | 295,548 | $ 132 | $ 501 | 414,248 | (118,922) | (442) | 31 | |||||
Beginning Balance, Shares at Mar. 31, 2020 | 13,164,193 | 50,122,938 | ||||||||||
Change in unrealized (loss) gain on marketable securities | 1,169 | 1,169 | ||||||||||
Issuances of common stock upon stock option exercise | $ 55 | 55 | ||||||||||
Issuances of common stock upon stock option exercise, Shares | 16,701 | 16,701 | ||||||||||
Stock-based compensation | $ 2,729 | 2,729 | ||||||||||
Contributions by non-controlling interest | 712 | 712 | ||||||||||
Net loss | (4,066) | (3,350) | (716) | |||||||||
Ending Balance at Jun. 30, 2020 | $ 296,147 | $ 132 | $ 501 | $ 417,032 | $ (122,272) | $ 727 | $ 27 | |||||
Ending Balance, Shares at Jun. 30, 2020 | 13,164,193 | 50,139,639 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Common Stock | |||
Common stock issuance costs | $ 22,667 | ||
Series E Preferred Stock | |||
Issuance of preferred stock value of issuance costs | $ 58 | $ 49 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (18,337) | $ (6,575) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on equity investments | (4,156) | |
Noncash revenue from equity investments | (169) | (92) |
Fair value adjustments | (5,280) | (12,034) |
Depreciation | 1,758 | 1,793 |
Stock-based compensation | 4,504 | 1,051 |
Noncash research and development expenses | 1,147 | 227 |
Noncash investment accretion | (205) | (212) |
Decrease (increase) in assets: | ||
Accounts receivable, net | 4,827 | 233 |
Unbilled and other receivables | 4,126 | 1,044 |
Reduction in the carrying amount of right of use assets | 2,622 | 1,551 |
Prepaid expenses and other assets | (447) | 1,149 |
Increase (decrease) in liabilities: | ||
Accounts payable | 1,999 | 123 |
Accrued payroll, taxes, and benefits | (1,277) | (35) |
Deferred revenue | (1,973) | 1,779 |
Lease liabilities | (2,634) | (1,547) |
Other accrued liabilities | (1,334) | 2,682 |
Net cash used in operating activities | (14,829) | (8,863) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,327) | (1,393) |
Purchases of equity investments | (2,869) | |
Distribution from equity investment | 4,582 | |
Purchases of marketable securities | (177,694) | (65,504) |
Proceeds from sale and maturity of marketable securities | 64,808 | 12,325 |
Net cash used in investing activities | (112,500) | (54,572) |
Cash flows from financing activities: | ||
Issuances of common stock upon initial public offering, net | 211,491 | |
Issuances of Series E preferred stock, net | 29,893 | |
Issuances of common stock upon stock option exercise | 232 | 180 |
Contribution by noncontrolling interest | 100 | |
Net cash provided by financing activities | 211,723 | 30,173 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 84,394 | (33,262) |
Cash and cash equivalents and restricted cash, beginning of period | 26,486 | 77,716 |
Cash and cash equivalents and restricted cash, end of period | 110,880 | 44,454 |
Supplemental disclosure of cash flow and noncash information | ||
Cash paid for income taxes | 149 | 43 |
Supplemental disclosure of non-cash investing and financing activities | ||
Purchases of property and equipment | 26 | |
Acquisitions of right of use assets in exchange for lease obligations | 1,778 | 464 |
Right of use assets recognized on adoption | $ 16,475 | |
Reclass of deferred financing costs to additional paid in capital | $ 1,858 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business | (1 ) Description of Business Schrödinger, Inc. (“the Company”) has developed a differentiated, physics-based software platform that enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly, at lower cost, and with, the Company believes, a higher likelihood of success compared to traditional methods. The Company sells its software to biopharmaceutical and industrial companies, academic institutions, and government laboratories. The Company also applies its computational platform to a broad pipeline of drug discovery programs in collaboration with biopharmaceutical companies, some of which the Company co-founded. In addition, the Company uses its platform to advance a pipeline of internal, wholly-owned drug discovery programs. On February 10, 2020, the Company completed an initial public offering (“IPO”), in which the Company issued and sold 11,882,352 shares of common its stock at a public offering price of $17.00 per share. The underwriters fully exercised their option to purchase an additional 1,782,352 shares of the Company’s common stock at the offering price. The Company raised approximately $209.6 million in net proceeds after deducting underwriting discounts and commissions and offering expenses payable by the Company. Immediately prior to the closing of the IPO, preferred stockholders voluntarily exchanged 98,406,823 shares of preferred stock for an aggregate of 13,164,193 shares of limited common stock. In addition, upon the closing of the IPO, the remaining 226,344,686 shares of preferred stock automatically converted into an aggregate of 30,278,832 shares of common stock. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) (a) In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update , Changes to Disclosure Requirements for Fair Value Measurements In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements Clarifying the Interaction between Topic 808 and Topic 606 Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Income Taxes Simplifying the Accounting for Income Taxes (b ) The accompanying unaudited condensed consolidated financial statements and the related interim disclosures have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the SEC on March 16, 2020. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the useful lives of long-lived assets, the recoverability of deferred tax assets, assumptions used in the allocation of revenue, and the valuation of stock-based compensation. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements (c ) The Company’s condensed unaudited consolidated financial statements include the accounts of Schrödinger, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency for foreign entities is the United States dollar. The Company accounts for investments over which it has significant influence, but not a controlling financial interest, using the equity method. (d ) Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables. The Company does not require customers to provide collateral to support accounts receivable. If deemed necessary, credit reviews of significant customers may be performed prior to extending credit. The determination of a customer’s ability to pay requires judgment, and failure to collect from a customer can adversely affect revenue, cash, and net income. The Company maintains an allowance for doubtful accounts. As of June 30, 2020, one customer accounted for 28% of total accounts receivable. As of December 31, 2019, one customer accounted for 10% of total accounts receivable. For the three and six months ended June 30, 2020 and 2019, no customer accounted for more than 10% of total revenues. ( e ) The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to become more likely than not that a portion of the deferred tax assets will not be realized. Accordingly, the Company currently maintains a full valuation allowance against existing net deferred tax assets. The Company recognizes the effect of income tax positions only if such positions are deemed “more likely than not” capable of being sustained. Interest and penalties accrued on unrecognized tax benefits are included within income tax expense in the consolidated financial statements. (f ) The Company has entered into collaboration agreements with Nimbus Therapeutics, LLC (“Nimbus”), Morphic Therapeutic, Inc., a wholly owned subsidiary of Morphic Holding, Inc. (“Morphic”), and Petra Pharma Corporation (“Petra”) to perform drug design services in exchange for minority ownership, which are included within equity investments in the Company’s condensed consolidated balance sheets. The Company has concluded that the carrying value of its equity investment in Nimbus should reflect its contractual rights to substantive profits. The Company further determined that the hypothetical liquidation at book value method (“HLBV method”) for valuing contractual rights to substantive profits provides the best representation of its financial position in Nimbus. During 2020, the Company continued to value Nimbus using the HLBV method. The HLBV method is a balance sheet oriented approach to equity method accounting. Under the HLBV method, the Company determines its share of earnings or losses by comparing its claim on the book value at the beginning and end of each reporting period. This claim is calculated as the amount that the Company would receive (or be obligated to pay) if the investee were to liquidate all of its assets at recorded amounts, determined as of the balance sheet date in accordance with U.S. GAAP, and distribute the resulting cash to creditors and investors in accordance with their respective priorities. Upon the completion of Morphic’s initial public offering in June 2019, the Company changed the valuation methodology used to value the Morphic investment. As there is a readily available public market for Morphic’s common stock, the Company values its investment based on the closing price of Morphic’s common stock as of the reporting date. Prior to May 2020, the Company had concluded that its equity investment in Petra should be valued using the historical cost method, as the Company does not exercise significant influence over Petra. During May 2020, Petra merged with a third party. For further information regarding the Company’s equity investments, including the Petra merger, see Note 4, Fair Value Measurements and Note 10, Equity Investments. (g ) Following the completion of the Company's IPO in February 2020, the outstanding equity of the Company consists of common stock and limited common stock. Under the Company’s certificate of incorporation, the rights of the holders of common stock and limited common stock are identical, except with respect to voting and conversion. Holders of limited common stock are precluded from voting such shares in any election of directors or on the removal of directors. Limited common stock may be converted into common stock at any time at the option of the stockholder. Undistributed earnings allocated to the participating securities are subtracted from net income in determining net loss attributable to common and limited common stockholders. Basic net loss per share is computed by dividing net loss attributable to common and limited common stockholders by the weighted-average number of shares of common and limited common stock outstanding during the period. For the calculation of diluted net loss, net income attributable to common and limited common stockholders for basic net loss is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. Diluted net loss per share attributable to common and limited common stockholders is computed by dividing the resulting net income attributable to common and limited common stockholders by the weighted-average number of fully diluted shares of common and limited common stock outstanding. For purposes of this calculation, stock options are considered common stock equivalents but have been excluded from the calculation of net loss per share attributable to common and limited stockholders as their effect is anti-dilutive. For the three and six months ended June 30, 2020 and 2019, the computation of basic and diluted net loss per share is presented on a combined basis for common and limited common stock because the results are identical. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | ( 3 ) Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time or at a point in time. The following table illustrates the timing of the Company’s revenue recognition: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Software products and services – point in time 53.1 % 45.3 % 56.7 % 54.4 % Software products and services – over time 37.4 30.9 34.1 28.8 Drug Discovery – point in time 3.3 8.9 1.5 6.7 Drug Discovery – over time 6.2 14.9 7.7 10.1 (a) Software Products and Services The Company enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative standalone selling price basis. Revenue is recognized net of any sale and value-added taxes collected from customers and subsequently remitted to governmental authorities. The Company’s software business derives revenue from five sources: (i) on-premise software license fees, (ii) hosted software subscription fees, (iii) software maintenance fees, (iv) professional services fees, and (v) contributions. On-premise software. The Company’s on-premise software license arrangements grant customers the right to use its software on their own in-house servers for a specified term, typically for one year. The Company recognizes revenue for on-premise software license fees upfront, either upon delivery of the license or the effective date of the agreement, whichever is later. In instances where the timing of delivery differs from the timing of its invoicing, the Company considers whether a significant financing component exists. Hosted software. Hosted software revenue consists primarily of fees to provide the Company’s customers with hosted licenses, which allows these customers to access the Company’s software platform on their own hardware without taking control of licenses. Hosted software is recognized ratably over the term of the arrangement. Software maintenance . Software maintenance includes technical support, updates, and upgrades. Software maintenance revenue is considered to be a separate performance obligation and is recognized ratably over the term of the arrangement. Professional services . Professional services, such as technical support and installation or assisting customers with modeling, generally are not related to the functionality of the Company’s software and may be recognized as resources are consumed or over the term of the arrangement, depending on the terms of the underlying agreement. The Company has historically estimated project status with relative accuracy. A number of internal and external factors can affect such estimates, including labor rates, utilization and efficiency variances. Payments for services are due in advance or upon consumption of resources. Contribution. Contribution revenue consists of funds received under a non-reciprocal agreement with Gates Ventures, LLC. The agreement is an unconditional non-exchange contribution without restrictions and the initial contribution was invoiced upon execution of the agreement. Revenue was recognized upon execution of the agreement when invoiced in accordance with Accounting Standards Codification (“ASC”) Topic 958, Not-for-Profit Entities as the agreement is not an exchange transaction. The following table presents the revenue recognized from the five sources of the software products and services revenue: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 On premise software $ 11,105 $ 8,601 $ 26,704 $ 21,624 Hosted software 2,312 1,911 4,446 3,622 Software maintenance 3,551 2,848 7,088 5,437 Professional services 2,932 1,122 5,474 2,404 Revenue from contracts with customers 19,900 14,482 43,712 33,087 Contribution 1,000 — 1,000 — Total software revenue $ 20,900 $ 14,482 $ 44,712 $ 33,087 (b) Contribution Revenue During the three months ended June 30, 2020, the Company recognized contribution revenue related to an agreement with Gates Ventures, LLC, which covers the period from June 23, 2020 through June 22, 2023 for total consideration of up to $3,000. During the three months ended June 30, 2020, the Company recorded a receivable of $1,000 in connection with its entry into the agreement, and the Company is entitled to receive additional $1,000 payments on or around the first and second anniversary of its entry into the agreement, subject to the Company providing certain progress reports to the Trustees of Columbia University in the City of New York. As of June 30, 2020, the Company had no deferred revenue balance related to this agreement. The Company has recognized $1,000 as revenue since the inception of the agreement. (c ) Drug Discovery Revenue from drug discovery and collaboration services contracts is recognized either over time, typically by using costs incurred or hours expended to measure progress, or at a point in time based on the achievement of milestones. Payments for services are generally due upon achieving milestones stated in a contract, upfront at the start of a contract, or upon consumption of resources. Services may at times include variable consideration and milestone payments. The Company has estimated the amount of consideration that is variable using the most likely amount method. The Company evaluates milestones on a case-by-case basis, including whether there are factors outside the Company’s control that could result in a significant reversal of revenue, and the likelihood and magnitude of a potential reversal. If achievement of a milestone is not considered probable, the Company constrains (reduces) variable consideration to exclude the milestone payment until it is probable to be achieved. As of June 30, 2020 and 2019, milestones not yet achieved that were determined to be probable of achievement totaled $750 and $3,500, respectively, and $309 and $2,318 of those milestones were recognized as revenue for the six months ended June 30, 2020 and 2019. (d ) Significant Judgments Significant judgments and estimates are required under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers The Company’s contracts with customers often include promises to transfer multiple software products and/or licenses and services, including professional services, technical support services, and rights to unspecified updates. Determining whether licenses and services are distinct performance obligations that should be accounted for separately, or are not distinct and therefore should be accounted for together, requires significant judgment. In some arrangements, such as most of the Company’s term-based software license arrangements, the Company has concluded that the licenses and associated services are distinct from each other. In other arrangements, including collaboration services arrangements, the licenses and certain services may not be distinct from each other. The Company’s time-based software arrangements may include multiple software licenses and a right to updates or upgrades to the licensed software products, and technical support. The Company has concluded that such promised goods and services are separate distinct performance obligations. The Company is required to estimate the total consideration expected to be received from contracts with customers, including any variable consideration. Once the estimated transaction price is established, amounts are allocated to the performance obligations that have been identified. The transaction price is allocated to each separate performance obligation on a relative stand-alone selling price (“SSP”) basis. Judgment is required to determine the SSP for each distinct performance obligation. The Company rarely licenses or sells products on a standalone basis, so the Company is required to estimate the range of SSPs for each performance obligation. In instances where the SSP is not directly observable because the Company does not sell the license, product, or service separately, the Company determines the SSP using information that includes historical discounting practices, market conditions, cost-plus analysis, and other observable inputs. The Company typically has more than one SSP for individual performance obligations due to the stratification of those items by classes of customers and circumstances. In these instances, the Company may use information such as the size and geographic region of the customer in determining the SSP. Professional service revenue is recognized as costs and hours are incurred, and judgment is required in estimating both the project status and the costs incurred or hours expended. If a group of agreements are so closely related to each other that they are, in effect, part of a single arrangement, such agreements are deemed to be one arrangement for revenue recognition purposes. The Company exercises significant judgment to evaluate the relevant facts and circumstances in determining whether the separate agreements should be accounted for separately or as, in substance, a single arrangement. The Company’s judgments about whether a group of contracts comprises a single arrangement can affect the allocation of consideration to the distinct performance obligations, which could have an effect on results of operations for the periods involved. Generally, the Company has not experienced significant returns or refunds to customers. The Company’s estimates related to revenue recognition require significant judgment and the change in these estimates could have an effect on the Company’s results of operations during the periods involved. (e ) Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on the condensed consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to invoicing; a deferred revenue liability is recorded when revenue is expected to be recognized subsequent to invoicing. For the Company’s time-based software agreements, customers are generally invoiced at the beginning of the arrangement for the entire term, though when the term spans multiple years the customers may be invoiced on an annual basis. For certain drug discovery agreements that include payment plans, the Company records a receivable related to revenue recognized upon delivery because it has an unconditional right to invoice and receive payment in the future related to those deliveries. Contract assets are included in unbilled and other receivables within the condensed consolidated balance sheets and primarily relate to the Company’s rights to consideration for work completed but not billed on service contracts. Contract assets are transferred to receivables when the Company invoices the customer. Contract balances were as follows: As of June 30, As of December 31, 2020 2019 Contract assets $ 2,625 $ 6,904 Deferred revenue 25,117 27,259 For the three and six months ended June 30, 2020 and 2019, respectively, the Company recognized $10,619, $18,639, $9,847, and $13,880 of revenue that was included in deferred revenue at the end of the preceding period. All other deferred revenue activity is due to the timing of invoices in relation to the timing of revenue, as described above. The Company expects to recognize as revenue approximately 92% of its June 30, 2020 deferred revenue balance in the next 12 months and the remainder thereafter. Additionally, contracted but unsatisfied performance obligations that had not yet been billed to the customer or included in deferred revenue were $14,663 as of June 30, 2020. Payment terms and conditions vary by contract type, although terms typically require payment within 30 to 60 days. In instances where the timing of revenue recognition differs from that of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, not to facilitate financing arrangements. (f ) Deferred Sales Commissions The Company has applied the practical expedient for sales commission expense, as any compensation paid to sales representatives to obtain a contract relates to a period of one year or less. Therefore, the Company has not capitalized any costs related to sales commissions. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (4 ) Various inputs are used in determining the fair value of the Company’s financial assets and liabilities. These inputs are summarized into the following three broad categories: Level 1 – quoted prices in active markets for identical securities Level 2 – other significant observable inputs, including quoted prices for similar securities, interest rates, credit risk, etc. Level 3 – significant unobservable inputs, including the Company’s own assumptions in determining fair value The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Marketable securities, which consist primarily of corporate and U.S. government agency bonds, are classified as available for sale and fair value does not differ significantly from carrying value as of June 30, 2020 and December 31, 2019. The following table presents information about the Company’s assets and liabilities measured at fair value as of June 30, 2020: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 173,646 $ — $ 173,646 Equity investments 22,586 — — 22,586 Total $ 22,586 $ 173,646 $ — $ 196,232 The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2019: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 59,844 $ — $ 59,844 Equity investments 14,328 — 108 14,436 Total $ 14,328 $ 59,844 $ 108 $ 74,280 Fair value of the Company’s investment in Morphic, classified as Level 1 in the fair value hierarchy, was determined using the market price of Morphic’s common stock as of the close of trading on June 30, 2020. Fair value of the Company’s investment in Nimbus, classified as Level 3 in the fair value hierarchy, was determined under the HLBV method, as further described in Note 2, Significant Accounting Policies. Significant unobservable inputs used under the HLBV method include Nimbus’ annual financial statements and the Company’s respective liquidation priority. The following table sets forth changes in fair value of the Company’s Level 3 investments: Amount As of December 31, 2018 $ 4,288 Unrealized loss (626 ) As of March 31, 2019 3,662 Unrealized loss (3,662 ) As of June 30, 2019 — Unrealized loss — As of September 30, 2019 — Unrealized gain 108 As of December 31, 2019 108 Cash contributions 2,869 Unrealized loss (1,008 ) As of March 31, 2020 1,969 Unrealized loss (1,969 ) As of June 30, 2020 $ — Unrealized gains and losses arising from changes in fair value of the Company’s equity investments are classified within change in fair value in the condensed consolidated statements of operations. During the six months ended June 30, 2020 and the year ended December 31, 2019 there were no transfers between Level 1, Level 2 and Level 3 investments. See Note 10, Equity Investments, for further information. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (5 ) (a) The Company leases office space under operating leases that expire at various dates through 2029. In addition to rental payments, the Company pays real property taxes, insurance, and repair and maintenance expenses for its office facilities. The Company recognizes rent expense on a straight-line basis over the life of the related lease, including any periods of free rent. The Company adopted Topic 842, Leases During the six months ended June 30, 2020, the Company entered into one new lease, which increased right-of-use (“ROU”) assets and lease liabilities by $1,778. ROU assets and lease liabilities were equal as no lease costs or incentives were associated with acquiring the leases. Variable and short-term lease costs were immaterial for the six months ended June 30, 2020. Additional details of the Company’s operating leases are presented in the following table: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease costs $ 1,449 $ 1,399 $ 2,955 $ 2,408 Cash paid for operating leases 1,518 1,247 2,960 2,479 Maturities of operating lease liabilities as of June 30, 2020 under noncancelable operating leases were as follows: Year ending December 31: Remainder of 2020 $ 3,063 2021 4,457 2022 1,727 2023 1,516 2024 1,533 Thereafter 1,887 Total future minimum lease payments 14,183 Less: imputed interest (567 ) Present value of future minimum lease payments 13,616 Less: current portion of operating leases payments (5,839 ) Lease liabilities, long-term $ 7,777 (b) From time to time, the Company may become involved in routine litigation arising in the ordinary course of business. While the results of such litigation cannot be predicted with certainty, management believes that the final outcome of such matters is not likely to have a material adverse effect on the Company’s financial position or results of operations or cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (6 ) Income Taxes The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense (benefit). Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period. For the three months and six months ended June 30, 2020, the difference between the effective rate and the statutory rate is primarily attributed to the change in the valuation allowance against net deferred tax assets. For the three and six months ended June 30, 2020 and 2019, the Company’s tax expense (benefit) was $64, $155, $(51), and $(5), respectively. The Company recognizes the effect of income tax positions only if those positions are “more likely than not” capable of being sustained. As of June 30, 2020, the Company had $1,000 of unrecognized tax benefits. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense within the consolidated financial statements. The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits within the next twelve months. The Company and its subsidiaries file U.S. federal income tax returns and various state, local and foreign income tax returns. At June 30, 2020, the Company’s statues of limitations are open for all federal and state years filed after the year ended December 31, 2015 and 2014 respectively. Net operating loss and credit carryforwards from all years are subject to examination and adjustments for the three years following the year in which the carryforwards are utilized. The Company is not currently under Internal Revenue Service or state examination. Pursuant to Internal Revenue Code Sections 382 and 383, the utilization of net operating losses and other tax attributes may be substantially limited due to cumulative changes in ownership greater than 50% that may have occurred or could occur during applicable testing periods. The Company has performed an analysis through December 31, 2019 and determined that such an ownership change has not occurred. In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (“2017 Tax Act”). Corporate taxpayers may carryback net operating losses (“NOLs”) originating during 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for tax years beginning January 1, 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. With the enactment |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | (7 ) Stockholders’ Equity (Deficit) (a) Upon the closing of the IPO, 226,344,686 shares of preferred stock automatically converted into an aggregate of 30,278,832 shares of common stock. As of June 30, 2020, the Company had authorized 500,000,000 shares of common stock with a par value of $0.01 per share. Holders of common stock are entitled to one vote per share, to receive dividends, if and when declared by the board of directors, and upon liquidation or dissolution, to receive a portion of the assets available for distributions to stockholders, subject to preferential amounts owed to holders of the Company’s preferred stock. Common stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. Common stock is subordinate to preferred stock with respect to dividend rights and rights upon liquidation, winding up, and dissolution of the Company. (b) I mmediately prior to the closing of the IPO, preferred stockholders voluntarily exchanged 98,406,823 shares of preferred stock for an aggregate of 13,164,193 shares of limited common stock. Limited common stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. The rights, preferences and privileges of holders of the limited common stock are subject to and may be adversely affected by the right of the holders of shares of any series of preferred stock that the Company may designate and issue in the future. As of June 30, 2020, 13,164,193 (c) As of June 30, 2020, the Company had authorized 10,000,000 shares of preferred stock with a par value of $0.01 per share. The Company’s board of directors has the discretion to determine the rights, preferences, privileges, and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges, and liquidation preferences, of each series of preferred stock. As of , no preferred stock was issued or outstanding |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (8 ) Stock-Based Compensation Stock Incentive Plans As of June 30, 2020, the Company’s stock incentive plans included the 2010 Stock Plan (the “2010 Plan”) and the 2020 Stock Plan (the “2020 Plan”) (together, the “Plans”). The 2020 Plan provides for the award of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards. The 2010 Plan provided for the granting of incentive stock options and non-qualified stock options. As of the effective date of the 2020 Plan, no shares remained available for future issuance under the 2010 Plan and no further awards will be made under the 2010 Plan. Any options or awards outstanding under the 2010 Plan remain outstanding and effective. Shares of common stock subject to outstanding awards granted under the 2010 Plan that expire, terminate, or are otherwise surrendered, cancelled, forfeited, or repurchased by the Company are available for issuance under the 2020 Plan. Stock options must be granted at an exercise price not less than 100% of the fair market value per share at the grant date. The maximum contractual term of options granted under the Plans is typically 10 years, options generally vest over four years with 25% of the shares underlying the option vesting at the end of the first year and the remaining vesting monthly over the following three years. During the three and six months ended June 30, 2020 and 2019, 16,701, 74,282, 25,027, and 69,187 stock options were exercised under the Plans with total cash received upon option exercise of $55, $232, $65, and $180, respectively. The fair value of each option award is determined on the date of grant using the Black Scholes Merton option-pricing model. The calculation of fair value includes several assumptions that require management’s judgment. The expected terms of options granted to employees during 2020 and 2019 were calculated using an average of historical exercises. Estimated volatility for the six months ended June 30, 2020 and 2019 incorporates a calculated volatility derived from the historical closing prices of shares of common stock of similar entities whose share prices were publicly available for the expected term of the option. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the option. The Company accounts for forfeitures as they occur, as such, the Company does not estimate forfeitures at the time of grant. Prior to the Company’s IPO, when there was no public market for the Company’s common stock, the board of directors estimated the price of the Company’s common stock based upon several factors, including, but not limited to, third party valuations and the Company’s operating and financial performance. The third party valuations took into consideration several factors, including prices for preferred stock that were sold to outside investors in arm’s length transactions, and the rights, preferences, and privileges of the preferred stock and the common stock; the fact that the option grants involved illiquid securities in a private company; the Company’s stage of development and revenue growth; the state of the industry and the economy; the marketplace and major competitors; and the likelihood of achieving a liquidity event for the shares of common stock underlying the options, such as an initial public offering or sale of the Company, given prevailing market conditions. These valuations were performed in accordance with the American Institute of Certified Public Accountants’ Audit and Accounting Practice Aid, Valuation of Privately Held Company Equity Securities Issued as Compensation Subsequent to the Company’s IPO, the board of directors determines the exercise price of the Company’s stock options based on the closing price of the common stock as reported on the Nasdaq Global Select Market on the day of grant. As of June 30, 2020, there were 2,250,178 shares available for grant under the 2020 Plan. As of December 31, 2019, there were 236,005 shares available for grant under the 2010 Plan. Following are the weighted average valuation assumptions used for options: Six Months Ended June 30, 2020 2019 Valuation assumptions Expected dividend yield — % — % Expected volatility 60 % 57 % Expected term (years) 4.49 6.25 Risk-free interest rate 1.44 % 2.52 % The following table presents classification of stock-based compensation expense within the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of sales $ 305 $ 82 $ 558 $ 171 Research and development 822 113 1,330 224 Sales and marketing 116 75 208 145 General and administrative 1,486 262 2,408 511 Total stock-based compensation $ 2,729 $ 532 $ 4,504 $ 1,051 The weighted average per share grant date fair value of options granted during the three and six months ended June 30, 2020 and 2019 was $22.22, $8.59, $2.42, and $2.48, respectively. The intrinsic value of options exercised during the three and six months ended June 30, 2020 and 2019 was $780, $2,011, $43, and $120, respectively. As of June 30, 2020, there was $33,017 of unrecognized compensation cost related to unvested stock options granted under the Plans, which is expected to be recognized over a weighted average period of 3.39 years. The fair value of shares vested during the three and six months ended June 30, 2020 and 2019 was $680, $1,893, $378, and $948, respectively. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common and Limited Stockholders | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common and Limited Stockholders | (9 ) The following table presents the calculation of basic and diluted net loss per share attributable to common and limited common stockholders for the periods presented (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (3,350 ) $ (500 ) $ (17,176 ) $ (6,294 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 63,296,366 44,495,701 51,981,647 44,493,667 Net loss per share $ (0.05 ) $ (0.01 ) $ (0.33 ) $ (0.14 ) Since the Company was in a loss position for all periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares and limited common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Convertible preferred stock - 42,836,364 - 42,014,975 Shares subject to outstanding common stock options 8,443,017 4,842,035 7,616,998 4,701,474 8,443,017 47,678,399 7,616,998 46,716,449 |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Investments | (10 ) The Company classifies the Nimbus investment as an equity investment within the condensed consolidated balance sheets. The Nimbus investment was received as compensation for collaboration services provided under a separate service agreement. During the six months ended June 30, 2020, the Company made a $2,869 cash investment in Nimbus. The Company held 7.6% and 6.7% of Nimbus units on a fully diluted basis as of June 30, 2020 and December 31, 2019, respectively. The Company also has the right to designate one of nine board seats, provide software used by Nimbus to pursue drug discovery activities, and participate via the board seat in the governance of the entity. Based upon these factors, the Company’s management believes that it has significant influence over the entity and therefore accounts for the entity as an equity method investment. The Company provides collaboration services for Nimbus under the terms of a master services agreement executed on May 18, 2010, as amended. Collaboration agreements are separate from the transaction which resulted in equity ownership and related fees are paid in cash to the Company. Under the HLBV method, the Company reported losses of $1,969, $2,977, $3,662, and $4,289 on the Nimbus investment for the three and six months ended June 30, 2020 and 2019, respectively. The carrying value of the Nimbus investment was zero and $108 as of June 30, 2020 and December 31, 2019, respectively. The Company has no obligation to fund Nimbus losses in excess of its initial investment. In June 2019, Morphic successfully completed an initial public offering. The Company accounts for its investment in Morphic at fair value based on the share price of Morphic’s common stock at the measurement date. The Company reported gains of $10,329, $8,528, $16,323, and $16,323 on the Morphic investment for the three and six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, the carrying value of the Company’s investment in Morphic was $22,586 and $14,328, respectively. The Company has no obligation to fund Morphic losses in excess of its initial investment. During May 2020, Petra entered into a merger agreement with a third party. In connection with the merger, the Company received $4,582 of merger consideration and is eligible to receive potential earn-outs tied to the achievement of specified development, regulatory, and commercial milestones. The Company is also eligible to receive $409 in escrow payments. As the escrow payments are expected to be received within 12 months from the closing of the merger, they have been recorded as other receivables within the condensed consolidated balance sheets. The Company also recorded a $4,156 gain on investment for the three and six months ended June 30, 2020. In connection with the merger, the Company also received 2,676,191 shares of common stock of Ravenna Pharmaceuticals, Inc. (“Ravenna”). The Company does not exercise significant influence over Ravenna and, as such, the Company has recorded its investment in Ravenna as a non-marketable equity security. As of June 30, 2020 and December 31, 2019, the carrying value of non-marketable equity securities was $94 and $930. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (11 ) (a) D. E. Shaw As of June 30, 2020, companies collectively controlled by David E. Shaw and/or affiliates of companies controlled by David E. Shaw (“D. E. Shaw entities”), owned 16,496,156 shares of issued and outstanding common stock. As of December 31, 2019, D. E. Shaw entities owned 123,314,389 shares of the issued and outstanding Series A Preferred stock. For the three and six months ended June 30, 2020 and 2019, the Company licensed technology and purchased services for $1,485, $3,207, $1,103, and $2,489, respectively, from D. E. Shaw entities. In addition, D. E. Shaw entities purchased certain products and services from, and provided cost reimbursements to, the Company totaling $20, $48, $13, and $25 for the three and six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, the Company had net payables of $1,586 and $1,040, respectively, to D.E. Shaw entities. (b) For the three and six months ended June 30, 2020 and 2019, the Company paid consulting fees of $87, $174, $87, and $174, respectively, to a member of its board of directors. (c) As of June 30, 2020, Bill and Melinda Gates Foundation Trust (“BMGFT”) owned 6,981,664 shares of common stock and For the three and six months ended June 30, 2020 and 2019, the Bill & Melinda Gates Foundation, an entity under common control with BMGFT, issued a grant under which it agreed to pay the Company directly for certain licenses and services provided to a specified group of third-party organizations. Revenue recognized for services provided by the Company under this grant were $523, $1,301, $396, and $745 for the three and six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, the Company had net receivables of $574 and $294, respectively, due from the Bill & Melinda Gates Foundation. During the three and six months ended June 30, 2020, the Company also recognized contribution revenue of $1,000 related to an agreement with Gates Ventures, LLC, an entity under control of William H. Gates III, who may be deemed to be the beneficial owner of more than 5% of the Company’s voting securities. As of June 30, 2020 and December 31, 2019, the Company had net receivables of $1,000 and zero, respectively, due from Gates Ventures, LLC. (d) For the three and six months ended June 30, 2020 and 2019, the Company recognized revenue of $122, $208, $379, and $680, respectively, from collaboration services agreements with Nimbus. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | (12 ) Segment Reporting The Company has determined that its chief executive officer (“CEO”) is its chief operating decision maker (“CODM”). The Company’s CEO evaluates the financial performance of the Company based on two reportable segments: Software and Drug Discovery. The Software segment is focused on licensing the Company’s software to transform molecular discovery. The Drug Discovery segment is focused on building a portfolio of preclinical and clinical drug programs, internally and through collaborations. The CODM reviews segment performance and allocates resources based upon segment revenue and segment gross profit of the Software and Drug Discovery reportable segments. Segment gross profit is derived by deducting operational expenditures, with the exception of research and development, sales and marketing, and general and administrative activities from U.S. GAAP revenue. Operational expenditures are expenditures made that are directly attributable to the reportable segment. These expenditures are allocated to the segments based on headcount. The reportable segment expenditures include compensation, supplies, and services from contract research organizations. Certain cost items are not allocated to the Company’s reportable segments. These cost items primarily consist of compensation and general operational expenses associated with the Company’s research and development, sales and marketing, and general and administrative. These costs are incurred by both segments and due to the integrated nature of the Company’s Software and Drug Discovery segments, any allocation methodology would be arbitrary and provide no meaningful analysis. All segment revenue is earned in the United States and there are no intersegment revenues. Additionally, the Company reports assets on a consolidated basis and does not allocate assets to its reportable segments for purposes of assessing segment performance or allocating resources. Presented below is financial information with respect to the Company’s reportable segments for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Segment revenues: Software $ 20,900 $ 14,482 $ 44,712 $ 33,087 Drug discovery 2,192 4,528 4,554 6,664 Total segment revenues $ 23,092 $ 19,010 $ 49,266 $ 39,751 Segment gross profit: Software $ 17,038 $ 10,811 $ 36,849 $ 26,283 Drug discovery (3,455 ) (960 ) (7,641 ) (3,428 ) Total segment gross profit 13,583 9,851 29,208 22,855 Unallocated: Research and development expense (16,657 ) (9,531 ) (30,357 ) (17,969 ) Sales and marketing expense (4,362 ) (5,343 ) (9,151 ) (10,436 ) General and administrative expense (9,651 ) (8,940 ) (18,587 ) (14,026 ) Gain on equity investments 4,156 — 4,156 — Change in fair value 8,359 12,661 5,280 12,034 Interest income 570 524 1,269 962 Income tax expense (benefit) (64 ) 51 (155 ) 5 Consolidated net loss $ (4,066 ) $ (727 ) $ (18,337 ) $ (6,575 ) The following table sets forth revenues by geographic area for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 United States $ 13,141 $ 10,936 $ 26,627 $ 20,808 Europe 4,920 2,640 13,202 9,080 Japan 3,003 4,069 4,972 6,733 Rest of World 2,028 1,365 4,465 3,130 $ 23,092 $ 19,010 $ 49,266 $ 39,751 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | (13 ) Subsequent Events On July 20, 2020, Relay |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | (a) In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update , Changes to Disclosure Requirements for Fair Value Measurements In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements Clarifying the Interaction between Topic 808 and Topic 606 Revenue from Contracts with Customers In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In December 2019, the FASB issued ASU No. 2019-12, Income Taxes Simplifying the Accounting for Income Taxes |
Basis of Presentation and Use of Estimates | (b ) The accompanying unaudited condensed consolidated financial statements and the related interim disclosures have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the SEC on March 16, 2020. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the useful lives of long-lived assets, the recoverability of deferred tax assets, assumptions used in the allocation of revenue, and the valuation of stock-based compensation. Actual results could differ from those estimates, and such differences may be material to the condensed consolidated financial statements |
Principles of Consolidation | (c ) The Company’s condensed unaudited consolidated financial statements include the accounts of Schrödinger, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The functional currency for foreign entities is the United States dollar. The Company accounts for investments over which it has significant influence, but not a controlling financial interest, using the equity method. |
Concentrations | (d ) Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables. The Company does not require customers to provide collateral to support accounts receivable. If deemed necessary, credit reviews of significant customers may be performed prior to extending credit. The determination of a customer’s ability to pay requires judgment, and failure to collect from a customer can adversely affect revenue, cash, and net income. The Company maintains an allowance for doubtful accounts. As of June 30, 2020, one customer accounted for 28% of total accounts receivable. As of December 31, 2019, one customer accounted for 10% of total accounts receivable. For the three and six months ended June 30, 2020 and 2019, no customer accounted for more than 10% of total revenues. |
Income Taxes | ( e ) The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to become more likely than not that a portion of the deferred tax assets will not be realized. Accordingly, the Company currently maintains a full valuation allowance against existing net deferred tax assets. The Company recognizes the effect of income tax positions only if such positions are deemed “more likely than not” capable of being sustained. Interest and penalties accrued on unrecognized tax benefits are included within income tax expense in the consolidated financial statements. |
Equity Investments | (f ) The Company has entered into collaboration agreements with Nimbus Therapeutics, LLC (“Nimbus”), Morphic Therapeutic, Inc., a wholly owned subsidiary of Morphic Holding, Inc. (“Morphic”), and Petra Pharma Corporation (“Petra”) to perform drug design services in exchange for minority ownership, which are included within equity investments in the Company’s condensed consolidated balance sheets. The Company has concluded that the carrying value of its equity investment in Nimbus should reflect its contractual rights to substantive profits. The Company further determined that the hypothetical liquidation at book value method (“HLBV method”) for valuing contractual rights to substantive profits provides the best representation of its financial position in Nimbus. During 2020, the Company continued to value Nimbus using the HLBV method. The HLBV method is a balance sheet oriented approach to equity method accounting. Under the HLBV method, the Company determines its share of earnings or losses by comparing its claim on the book value at the beginning and end of each reporting period. This claim is calculated as the amount that the Company would receive (or be obligated to pay) if the investee were to liquidate all of its assets at recorded amounts, determined as of the balance sheet date in accordance with U.S. GAAP, and distribute the resulting cash to creditors and investors in accordance with their respective priorities. Upon the completion of Morphic’s initial public offering in June 2019, the Company changed the valuation methodology used to value the Morphic investment. As there is a readily available public market for Morphic’s common stock, the Company values its investment based on the closing price of Morphic’s common stock as of the reporting date. Prior to May 2020, the Company had concluded that its equity investment in Petra should be valued using the historical cost method, as the Company does not exercise significant influence over Petra. During May 2020, Petra merged with a third party. For further information regarding the Company’s equity investments, including the Petra merger, see Note 4, Fair Value Measurements and Note 10, Equity Investments. |
Net Loss per Share Attributable to Common and Limited Stockholders | (g ) Following the completion of the Company's IPO in February 2020, the outstanding equity of the Company consists of common stock and limited common stock. Under the Company’s certificate of incorporation, the rights of the holders of common stock and limited common stock are identical, except with respect to voting and conversion. Holders of limited common stock are precluded from voting such shares in any election of directors or on the removal of directors. Limited common stock may be converted into common stock at any time at the option of the stockholder. Undistributed earnings allocated to the participating securities are subtracted from net income in determining net loss attributable to common and limited common stockholders. Basic net loss per share is computed by dividing net loss attributable to common and limited common stockholders by the weighted-average number of shares of common and limited common stock outstanding during the period. For the calculation of diluted net loss, net income attributable to common and limited common stockholders for basic net loss is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. Diluted net loss per share attributable to common and limited common stockholders is computed by dividing the resulting net income attributable to common and limited common stockholders by the weighted-average number of fully diluted shares of common and limited common stock outstanding. For purposes of this calculation, stock options are considered common stock equivalents but have been excluded from the calculation of net loss per share attributable to common and limited stockholders as their effect is anti-dilutive. For the three and six months ended June 30, 2020 and 2019, the computation of basic and diluted net loss per share is presented on a combined basis for common and limited common stock because the results are identical. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Timing of Revenue Recognition | The following table illustrates the timing of the Company’s revenue recognition: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Software products and services – point in time 53.1 % 45.3 % 56.7 % 54.4 % Software products and services – over time 37.4 30.9 34.1 28.8 Drug Discovery – point in time 3.3 8.9 1.5 6.7 Drug Discovery – over time 6.2 14.9 7.7 10.1 |
Schedule of Revenue Recognized from the Sources of Software Products and Services Revenue | The following table presents the revenue recognized from the five sources of the software products and services revenue: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 On premise software $ 11,105 $ 8,601 $ 26,704 $ 21,624 Hosted software 2,312 1,911 4,446 3,622 Software maintenance 3,551 2,848 7,088 5,437 Professional services 2,932 1,122 5,474 2,404 Revenue from contracts with customers 19,900 14,482 43,712 33,087 Contribution 1,000 — 1,000 — Total software revenue $ 20,900 $ 14,482 $ 44,712 $ 33,087 |
Schedule of Contract Balances | Contract balances were as follows: As of June 30, As of December 31, 2020 2019 Contract assets $ 2,625 $ 6,904 Deferred revenue 25,117 27,259 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following table presents information about the Company’s assets and liabilities measured at fair value as of June 30, 2020: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 173,646 $ — $ 173,646 Equity investments 22,586 — — 22,586 Total $ 22,586 $ 173,646 $ — $ 196,232 The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2019: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 59,844 $ — $ 59,844 Equity investments 14,328 — 108 14,436 Total $ 14,328 $ 59,844 $ 108 $ 74,280 |
Summary of Changes in Fair Value of Level 3 Investments | The following table sets forth changes in fair value of the Company’s Level 3 investments: Amount As of December 31, 2018 $ 4,288 Unrealized loss (626 ) As of March 31, 2019 3,662 Unrealized loss (3,662 ) As of June 30, 2019 — Unrealized loss — As of September 30, 2019 — Unrealized gain 108 As of December 31, 2019 108 Cash contributions 2,869 Unrealized loss (1,008 ) As of March 31, 2020 1,969 Unrealized loss (1,969 ) As of June 30, 2020 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Operating Leases | Additional details of the Company’s operating leases are presented in the following table: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Operating lease costs $ 1,449 $ 1,399 $ 2,955 $ 2,408 Cash paid for operating leases 1,518 1,247 2,960 2,479 |
Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases | Maturities of operating lease liabilities as of June 30, 2020 under noncancelable operating leases were as follows: Year ending December 31: Remainder of 2020 $ 3,063 2021 4,457 2022 1,727 2023 1,516 2024 1,533 Thereafter 1,887 Total future minimum lease payments 14,183 Less: imputed interest (567 ) Present value of future minimum lease payments 13,616 Less: current portion of operating leases payments (5,839 ) Lease liabilities, long-term $ 7,777 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Weighted Average Valuation Assumptions Used for Options | Following are the weighted average valuation assumptions used for options: Six Months Ended June 30, 2020 2019 Valuation assumptions Expected dividend yield — % — % Expected volatility 60 % 57 % Expected term (years) 4.49 6.25 Risk-free interest rate 1.44 % 2.52 % |
Summary of Classification of Stock Based Compensation Expense | The following table presents classification of stock-based compensation expense within the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of sales $ 305 $ 82 $ 558 $ 171 Research and development 822 113 1,330 224 Sales and marketing 116 75 208 145 General and administrative 1,486 262 2,408 511 Total stock-based compensation $ 2,729 $ 532 $ 4,504 $ 1,051 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common and Limited Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share Attributable to Common and Limited Stockholders | The following table presents the calculation of basic and diluted net loss per share attributable to common and limited common stockholders for the periods presented (in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (3,350 ) $ (500 ) $ (17,176 ) $ (6,294 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 63,296,366 44,495,701 51,981,647 44,493,667 Net loss per share $ (0.05 ) $ (0.01 ) $ (0.33 ) $ (0.14 ) |
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Convertible preferred stock - 42,836,364 - 42,014,975 Shares subject to outstanding common stock options 8,443,017 4,842,035 7,616,998 4,701,474 8,443,017 47,678,399 7,616,998 46,716,449 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Financial Information with Respect to Reportable Segments | All segment revenue is earned in the United States and there are no intersegment revenues. Additionally, the Company reports assets on a consolidated basis and does not allocate assets to its reportable segments for purposes of assessing segment performance or allocating resources. Presented below is financial information with respect to the Company’s reportable segments for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Segment revenues: Software $ 20,900 $ 14,482 $ 44,712 $ 33,087 Drug discovery 2,192 4,528 4,554 6,664 Total segment revenues $ 23,092 $ 19,010 $ 49,266 $ 39,751 Segment gross profit: Software $ 17,038 $ 10,811 $ 36,849 $ 26,283 Drug discovery (3,455 ) (960 ) (7,641 ) (3,428 ) Total segment gross profit 13,583 9,851 29,208 22,855 Unallocated: Research and development expense (16,657 ) (9,531 ) (30,357 ) (17,969 ) Sales and marketing expense (4,362 ) (5,343 ) (9,151 ) (10,436 ) General and administrative expense (9,651 ) (8,940 ) (18,587 ) (14,026 ) Gain on equity investments 4,156 — 4,156 — Change in fair value 8,359 12,661 5,280 12,034 Interest income 570 524 1,269 962 Income tax expense (benefit) (64 ) 51 (155 ) 5 Consolidated net loss $ (4,066 ) $ (727 ) $ (18,337 ) $ (6,575 ) |
Schedule of Revenues by Geographic Area | The following table sets forth revenues by geographic area for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 United States $ 13,141 $ 10,936 $ 26,627 $ 20,808 Europe 4,920 2,640 13,202 9,080 Japan 3,003 4,069 4,972 6,733 Rest of World 2,028 1,365 4,465 3,130 $ 23,092 $ 19,010 $ 49,266 $ 39,751 |
Description of Business - Addit
Description of Business - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 10, 2020 | Feb. 09, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Offering price per share | $ 0.01 | $ 0.01 | |||
Preferred Stock | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Conversion of convertible preferred stock into common stock | 226,344,686 | 98,406,823 | |||
Limited Common Stock | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Offering price per share | $ 0.01 | $ 0.01 | |||
Conversion of convertible preferred stock into common stock | 13,164,193 | ||||
Common Stock | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Issued and sold shares | 1,782,352 | 13,664,704 | |||
Net proceeds from issuance of common stock | $ 209.6 | ||||
Conversion of convertible preferred stock into common stock | 30,278,832 | 30,278,832 | |||
Common Stock | IPO | |||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||
Issued and sold shares | 11,882,352 | ||||
Offering price per share | $ 17 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) - Customer Concentration Risk - Customer | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounts Receivable | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk, number of customers | 1 | 1 | ||||
Concentration risk, percentage | 28.00% | 10.00% | ||||
Total Revenues | Minimum | ||||||
Significant Accounting Policies [Line Items] | ||||||
Concentration risk, number of customers accounted for more than 10% of total revenues | 0 | 0 | 0 | 0 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Timing of Revenue Recognition (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Software Products and Services | Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 53.10% | 45.30% | 56.70% | 54.40% |
Software Products and Services | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 37.40% | 30.90% | 34.10% | 28.80% |
Drug Discovery | Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 3.30% | 8.90% | 1.50% | 6.70% |
Drug Discovery | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 6.20% | 14.90% | 7.70% | 10.10% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details 1) | Jun. 30, 2020 |
On Premise Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenue, revenue recognized | $ 10,619,000 | $ 9,847,000 | $ 18,639,000 | $ 13,880,000 |
Percentage of revenue expected to be recognized | 92.00% | 92.00% | ||
Unsatisfied performance obligation | $ 14,663,000 | $ 14,663,000 | ||
Minimum | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Contract with customers, payment terms | 30 days | |||
Maximum | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Contract with customers, payment terms | 60 days | |||
Agreement with Gates Ventures, LLC | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Contribution revenue related to agreement cover period start date | Jun. 23, 2020 | |||
Contribution revenue related to agreement cover period end date | Jun. 22, 2023 | |||
Contribution revenue recognition amount | $ 3,000,000 | |||
Contribution revenue recognition | 1,000,000 | |||
Deferred revenue | 0 | $ 0 | ||
Contribution revenue | 1,000,000 | $ 1,000,000 | ||
Agreement with Gates Ventures, LLC | First Anniversary | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Additional revenue entitled to receive | 1,000,000 | |||
Agreement with Gates Ventures, LLC | Second Anniversary | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Additional revenue entitled to receive | $ 1,000,000 | |||
On Premise Software | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Revenue, practical expedient, financing component [true false] | true | |||
Drug Discovery | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Milestone payment yet to be achieved | $ 750,000 | 3,500,000 | ||
Revenue recognized with milestones | $ 309,000 | $ 2,318,000 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Revenue Recognized from the Sources of Software Products and Services Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | $ 23,092 | $ 19,010 | $ 49,266 | $ 39,751 |
On Premise Software | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 11,105 | 8,601 | 26,704 | 21,624 |
Hosted Software | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 2,312 | 1,911 | 4,446 | 3,622 |
Software Maintenance | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 3,551 | 2,848 | 7,088 | 5,437 |
Professional Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 2,932 | 1,122 | 5,474 | 2,404 |
Revenue From Contract With Customer Before Contribution | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 19,900 | 14,482 | 43,712 | 33,087 |
Contribution | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 1,000 | 1,000 | ||
Software Products and Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | $ 20,900 | $ 14,482 | $ 44,712 | $ 33,087 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue From Contract With Customer [Abstract] | ||
Contract assets | $ 2,625 | $ 6,904 |
Deferred revenue | $ 25,117 | $ 27,259 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 196,232 | $ 74,280 |
Marketable Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 173,646 | 59,844 |
Equity Investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 22,586 | 14,436 |
Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 22,586 | 14,328 |
Level 1 | Equity Investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 22,586 | 14,328 |
Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 173,646 | 59,844 |
Level 2 | Marketable Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 173,646 | 59,844 |
Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 108 | |
Level 3 | Equity Investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 108 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |||||
Beginning balance | $ 1,969 | $ 108 | $ 3,662 | $ 4,288 | |
Cash contributions | 2,869 | ||||
Unrealized loss | $ (1,969) | (1,008) | $ 108 | $ (3,662) | (626) |
Ending balance | $ 1,969 | $ 108 | $ 3,662 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, Level 1 to Level 2 transfers, amount | $ 0 | $ 0 |
Fair value, assets, Level 2 to Level 1 transfers, amount | 0 | 0 |
Fair value, asset transfers into Level 3 | $ 0 | $ 0 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2020USD ($)OperatingLease | Jan. 01, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease expiration year | 2029 | |
Operating lease, discount rate | 5.01% | |
Operating lease, weighted average lease term | 4 years | |
Increase in right-of-use assets | $ 1,778,000 | |
Increase in lease liabilities | 1,778,000 | |
Lease costs | $ 0 | |
Number of new operating lease | OperatingLease | 1 |
Commitments And Contingencies_2
Commitments And Contingencies - Summary of Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Operating lease costs | $ 1,449 | $ 1,399 | $ 2,955 | $ 2,408 |
Cash paid for operating leases | $ 1,518 | $ 1,247 | $ 2,960 | $ 2,479 |
Commitments And Contingencies_3
Commitments And Contingencies - Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Remainder of 2020 | $ 3,063 | |
2021 | 4,457 | |
2022 | 1,727 | |
2023 | 1,516 | |
2024 | 1,533 | |
Thereafter | 1,887 | |
Total future minimum lease payments | 14,183 | |
Less: imputed interest | (567) | |
Present value of future minimum lease payments | 13,616 | |
Less: current portion of operating leases payments | (5,839) | $ (5,584) |
Lease liabilities, long-term | $ 7,777 | $ 8,888 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense (benefit) | $ 64 | $ (51) | $ 155 | $ (5) |
Unrecognized tax benefits | $ 1,000 | $ 1,000 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) - Additional Information (Details) | Feb. 10, 2020shares | Feb. 09, 2020shares | Mar. 31, 2020shares | Jun. 30, 2020Vote$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 500,000,000 | 425,000,000 | |||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, shares outstanding | 50,139,639 | 6,121,821 | |||
Preferred stock, shares authorized | 10,000,000 | ||||
Preferred stock, par value of per share | $ / shares | $ 0.01 | ||||
Preferred stock, shares issued | 0 | ||||
Preferred stock, shares outstanding | 0 | ||||
Common Stock | |||||
Class Of Stock [Line Items] | |||||
Conversion of convertible preferred stock into common stock | 30,278,832 | 30,278,832 | |||
Preferred Stock | |||||
Class Of Stock [Line Items] | |||||
Conversion of convertible preferred stock into common stock | 226,344,686 | 98,406,823 | |||
Voting Common Stock | |||||
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 500,000,000 | ||||
Common stock, par value | $ / shares | $ 0.01 | ||||
Common stock, description | Common stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. Common stock is subordinate to preferred stock with respect to dividend rights and rights upon liquidation, winding up, and dissolution of the Company | ||||
Number of votes for common share | Vote | 1 | ||||
Limited Common Stock | |||||
Class Of Stock [Line Items] | |||||
Conversion of convertible preferred stock into common stock | 13,164,193 | ||||
Common stock, shares authorized | 100,000,000 | 146,199,885 | |||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, description | Holders of limited common stock are entitled to one vote per share, however, the holders of limited common stock shall not be entitled to vote such shares in any election of directors or on the removal of directors. Holders of limited common stock are entitled to receive dividends, if and when declared by the board of directors, and upon liquidation or dissolution, receive a portion of the assets available for distributions to stockholders, subject to preferential amounts owed to holders of the Company’s preferred stock. Holders of the Company’s limited common stock have the right to exchange each share of limited common stock for one share of the Company’s common stock | ||||
Number of votes for common share | Vote | 1 | ||||
Right to exchange limited common stock to common stock, share | 1 | ||||
Common stock, shares outstanding | 13,164,193 | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, exercises in period | 16,701 | 25,027 | 74,282 | 69,187 | |
Cash received upon option exercised | $ 55 | $ 65 | $ 232 | $ 180 | |
Weighted average per share grant date fair value of options granted | $ 22.22 | $ 2.42 | $ 8.59 | $ 2.48 | |
Intrinsic value of options exercised | $ 780 | $ 43 | $ 2,011 | $ 120 | |
Unrecognized compensation cost related to unvested stock options granted | 33,017 | $ 33,017 | |||
Expected to be recognized over a weighted average period | 3 years 4 months 20 days | ||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 680 | $ 378 | $ 1,893 | $ 948 | |
2010 Plan | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, number of shares remained available for future issuance | 0 | 0 | |||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 0 | 0 | 236,005 | ||
2010 and 2020 Plans | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Maximum percentage of stock options must be granted at exercise price of fair market value | 100.00% | ||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||||
2010 and 2020 Plans | Tranche One | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||||
2010 and 2020 Plans | Tranche Two | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||||
2010 and 2020 Plans | Tranche Three | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||||
2010 and 2020 Plans | Tranche Four | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 25.00% | ||||
2010 and 2020 Plans | Maximum | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, options, exercisable, weighted average remaining contractual term | 10 years | ||||
2020 Plan | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 2,250,178 | 2,250,178 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Weighted Average Valuation Assumptions Used for Options (Details) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Valuation assumptions | ||
Expected volatility | 60.00% | 57.00% |
Expected term (years) | 4 years 5 months 26 days | 6 years 3 months |
Risk-free interest rate | 1.44% | 2.52% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Classification of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | $ 2,729 | $ 532 | $ 4,504 | $ 1,051 |
Cost of Sales | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 305 | 82 | 558 | 171 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 822 | 113 | 1,330 | 224 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 116 | 75 | 208 | 145 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | $ 1,486 | $ 262 | $ 2,408 | $ 511 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common and Limited Stockholders - Schedule of Basic and Diluted Net Loss Per Share Attributable to Common and Limited Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net loss attributable to Schrödinger common and limited common stockholders | $ (3,350) | $ (500) | $ (17,176) | $ (6,294) |
Denominator: | ||||
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: | 63,296,366 | 44,495,701 | 51,981,647 | 44,493,667 |
Net loss per share | $ (0.05) | $ (0.01) | $ (0.33) | $ (0.14) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common and Limited Stockholders - Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 8,443,017 | 47,678,399 | 7,616,998 | 46,716,449 |
Convertible Preferred Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 42,836,364 | 42,014,975 | ||
Shares Subject to Outstanding Common Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 8,443,017 | 4,842,035 | 7,616,998 | 4,701,474 |
Equity Investments - Additional
Equity Investments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
May 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Cash investments | $ 2,869 | ||||||
Equity investments gains (losses) | $ 4,156 | 4,156 | |||||
Equity investments | 22,680 | 22,680 | $ 15,366 | ||||
Distribution from equity investment | 4,582 | ||||||
Carrying value of non-marketable equity securities | 94 | $ 94 | $ 930 | ||||
Nimbus Therapeutics, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Cash investments | $ 2,869 | ||||||
Percentage of equity investment held on fully diluted basis | 7.60% | 6.70% | |||||
Equity investments gains (losses) | (1,969) | $ (3,662) | $ (2,977) | $ (4,289) | |||
Equity investments | 0 | 0 | $ 108 | ||||
Morphic Holding, Inc. | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity investments gains (losses) | 10,329 | $ 16,323 | 8,528 | $ 16,323 | |||
Equity investments | 22,586 | 22,586 | $ 14,328 | ||||
Petra Pharma Corporation | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity investments gains (losses) | $ 4,156 | $ 4,156 | |||||
Distribution from equity investment | $ 4,582 | ||||||
Escrow payments receivable | $ 409 | ||||||
Ravenna Therapeutics | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Common shares received in connection with merger | 2,676,191 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||||
Common stock, shares issued | 50,139,639 | 50,139,639 | 6,121,821 | ||||
Common stock, shares outstanding | 50,139,639 | 50,139,639 | 6,121,821 | ||||
Revenue recognized | $ 23,092 | $ 19,010 | $ 49,266 | $ 39,751 | |||
Agreement with Gates Ventures, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Net receivables (payables) | 1,000 | 1,000 | $ 0 | ||||
Contribution revenue | $ 1,000 | $ 1,000 | |||||
Agreement with Gates Ventures, LLC | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of voting securities | 5.00% | 5.00% | |||||
D. E. Shaw Entities | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares issued | 16,496,156 | 16,496,156 | |||||
Common stock, shares outstanding | 16,496,156 | 16,496,156 | |||||
Purchase of services and license technology from related party | $ 1,485 | 1,103 | $ 3,207 | 2,489 | |||
Reimbursements received from related parties for sales of products and services provided | 20 | 13 | 48 | 25 | |||
Net receivables (payables) | (1,586) | (1,586) | (1,040) | ||||
Member of Board of Directors | |||||||
Related Party Transaction [Line Items] | |||||||
Payment of consulting fees | 87 | 87 | 174 | 174 | |||
BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Net receivables (payables) | 574 | 574 | $ 294 | ||||
Revenue recognized | $ 523 | 396 | $ 1,301 | 745 | |||
BMGFT | Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares outstanding | 6,981,664 | 6,981,664 | |||||
BMGFT | Limited Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares outstanding | 13,164,193 | 13,164,193 | |||||
Nimbus | |||||||
Related Party Transaction [Line Items] | |||||||
Revenue from collaboration services agreement | $ 122 | $ 379 | $ 208 | $ 680 | |||
Series A Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares outstanding | 134,704,785 | 134,704,785 | 134,704,785 | 134,704,785 | 134,704,785 | ||
Series A Preferred Stock | D. E. Shaw Entities | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares issued | 123,314,389 | ||||||
Preferred stock, shares outstanding | 123,314,389 | ||||||
Series B Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares outstanding | 29,468,101 | 29,468,101 | 29,468,101 | 29,468,101 | 29,468,101 | ||
Series B Preferred Stock | BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares issued | 29,468,101 | ||||||
Preferred stock, shares outstanding | 29,468,101 | ||||||
Series C Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares outstanding | 47,242,235 | 47,242,235 | 47,242,235 | 47,242,235 | 47,242,235 | ||
Series C Preferred Stock | BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares issued | 47,242,235 | ||||||
Preferred stock, shares outstanding | 47,242,235 | ||||||
Series D Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares outstanding | 39,540,611 | 39,540,611 | 39,540,611 | 39,540,611 | 39,540,611 | ||
Series D Preferred Stock | BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares issued | 35,946,010 | ||||||
Preferred stock, shares outstanding | 35,946,010 | ||||||
Series E Preferred Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares outstanding | 73,795,777 | 73,795,777 | 73,795,777 | 57,024,012 | 53,669,659 | ||
Series E Preferred Stock | BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Preferred stock, shares issued | 33,543,539 | ||||||
Preferred stock, shares outstanding | 33,543,539 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Summary of
Segment Reporting - Summary of Financial Information with Respect to Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment revenues: | ||||||
Revenue recognized | $ 23,092 | $ 19,010 | $ 49,266 | $ 39,751 | ||
Segment gross profit: | ||||||
Total segment gross profit | 13,583 | 9,851 | 29,208 | 22,855 | ||
Unallocated: | ||||||
Research and development expense | (16,657) | (9,531) | (30,357) | (17,969) | ||
Sales and marketing expense | (4,362) | (5,343) | (9,151) | (10,436) | ||
General and administrative expense | (9,651) | (8,940) | (18,587) | (14,026) | ||
Gain on equity investments | 4,156 | 4,156 | ||||
Change in fair value | 8,359 | 12,661 | 5,280 | 12,034 | ||
Interest income | 570 | 524 | 1,269 | 962 | ||
Income tax expense (benefit) | (64) | 51 | (155) | 5 | ||
Net loss | (4,066) | $ (14,271) | (727) | $ (5,848) | (18,337) | (6,575) |
Operating Segments | Software Segment | ||||||
Segment revenues: | ||||||
Revenue recognized | 20,900 | 14,482 | 44,712 | 33,087 | ||
Segment gross profit: | ||||||
Total segment gross profit | 17,038 | 10,811 | 36,849 | 26,283 | ||
Operating Segments | Drug Discovery Segment | ||||||
Segment revenues: | ||||||
Revenue recognized | 2,192 | 4,528 | 4,554 | 6,664 | ||
Segment gross profit: | ||||||
Total segment gross profit | $ (3,455) | $ (960) | $ (7,641) | $ (3,428) |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | $ 23,092 | $ 19,010 | $ 49,266 | $ 39,751 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | 13,141 | 10,936 | 26,627 | 20,808 |
Europe | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | 4,920 | 2,640 | 13,202 | 9,080 |
Japan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | 3,003 | 4,069 | 4,972 | 6,733 |
Rest of World | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | $ 2,028 | $ 1,365 | $ 4,465 | $ 3,130 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Jul. 20, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||
Carrying value of common shares | $ 501 | $ 61 | |
Relay Therapeutics | |||
Subsequent Event [Line Items] | |||
Carrying value of common shares | $ 0 | $ 0 | |
Subsequent Event | Relay Therapeutics | |||
Subsequent Event [Line Items] | |||
Number of common shares owned | 422,425 |