Schrödinger (SDGR) 10-Q 11 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 05, 2021
Document And Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Document Period End Date	Mar. 31, 2021
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	false
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		61,340,937
Limited Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		9,164,193

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 133,122	$ 202,296
Restricted cash	500	500
Marketable securities	515,372	440,395
Accounts receivable, net of allowance for doubtful accounts of $60 and $60	11,270	31,423
Unbilled and other receivables, net for allowance for unbilled receivables of $20 and $0	7,020	3,955
Prepaid expenses	7,954	4,409
Total current assets	675,238	682,978
Property and equipment, net	4,799	5,140
Equity investments	52,931	45,664
Right of use assets	8,865	10,129
Other assets	2,356	2,352
Total assets	744,189	746,263
Current liabilities:
Accounts payable	7,220	8,398
Accrued payroll, taxes, and benefits	10,345	12,000
Deferred revenue	40,759	45,403
Lease liabilities	3,576	4,543
Other accrued liabilities	5,721	2,861
Total current liabilities	67,621	73,205
Deferred revenue, long-term	37,356	41,164
Lease liabilities, long-term	6,836	7,221
Other liabilities, long-term	600	654
Total liabilities	112,413	122,244
Commitments and contingencies (Note 5)
Stockholders' equity:
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively
Common stock	613	607
Additional paid-in capital	760,574	752,558
Accumulated deficit	(129,588)	(129,559)
Accumulated other comprehensive income	77	317
Total stockholders’ equity of Schrödinger stockholders	631,768	624,015
Noncontrolling interest	8	4
Total stockholders’ equity	631,776	624,019
Total liabilities and stockholders’ equity	744,189	746,263
Limited Common Stock
Stockholders' equity:
Common stock	92	92
Total stockholders’ equity	$ 92	$ 92

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Allowance for doubtful accounts receivable	$ 60	$ 60
Allowance for unbilled receivable	$ 20	$ 0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	61,300,675	60,713,534
Common stock, shares outstanding	61,300,675	60,713,534
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Limited Common Stock
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	9,164,193	9,164,193
Common stock, shares outstanding	9,164,193	9,164,193

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Total revenues	$ 32,127	$ 26,174
Cost of revenues:
Total cost of revenues	15,963	10,549
Gross profit	16,164	15,625
Operating expenses:
Research and development	21,448	13,700
Sales and marketing	5,239	4,789
General and administrative	13,389	8,936
Total operating expenses	40,076	27,425
Loss from operations	(23,912)	(11,800)
Other (expense) income:
Loss on equity investments	(1,781)
Change in fair value	24,824	(3,079)
Interest income	420	699
Total other income (expense)	23,463	(2,380)
Loss before income taxes	(449)	(14,180)
Income tax expense	74	91
Net loss	(523)	(14,271)
Net loss attributable to noncontrolling interest	(494)	(445)
Net loss attributable to Schrödinger common and limited common stockholders	$ (29)	$ (13,826)
Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted:	$ 0	$ (0.34)
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted:	70,071,625	40,666,970
Software Products and Services
Revenues:
Total revenues	$ 26,340	$ 23,812
Cost of revenues:
Total cost of revenues	5,906	4,001
Drug Discovery
Revenues:
Total revenues	5,787	2,362
Cost of revenues:
Total cost of revenues	$ 10,057	$ 6,548

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net loss attributable to Schrödinger common and limited common stockholders	$ (29)	$ (13,826)
Changes in market value of investments, net of tax:
Unrealized loss on marketable securities	(240)	(458)
Comprehensive loss	$ (269)	$ (14,284)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Initial Public Offering	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	Common StockInitial Public Offering	Additional Paid-In Capital	Additional Paid-In CapitalInitial Public Offering	Accumulated Deficit	Accumulated Other Comprehensive Loss (Income)	Non Controlling Interest
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			$ 109,270	$ 22,000	$ 19,844	$ 9,840	$ 30,626
Beginning Balance, Shares at Dec. 31, 2019									6,121,821
Change in unrealized loss 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								57,581
Stock-based compensation	$ 1,775										1,775
Issuances of common stock upon initial public offering, net of issuance costs of $22,667		$ 209,633								$ 136		$ 209,497
Issuances of common stock upon initial public offering, net of issuance costs of $22,667, 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, 2020	624,019							$ 92	$ 607		752,558		(129,559)	317	4
Beginning Balance, Shares at Dec. 31, 2020								9,164,193	60,713,534
Change in unrealized loss on marketable securities	(240)													(240)
Issuances of common stock upon stock option exercise	$ 3,656								$ 6		3,650
Issuances of common stock upon stock option exercise, Shares	587,141								587,141
Stock-based compensation	$ 4,366										4,366
Contributions by non-controlling interest	498														498
Net loss	(523)												(29)		(494)
Ending Balance at Mar. 31, 2021	$ 631,776							$ 92	$ 613		$ 760,574		$ (129,588)	$ 77	$ 8
Ending Balance, Shares at Mar. 31, 2021								9,164,193	61,300,675

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Unaudited) (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Initial Public Offering | Common Stock
Common stock issuance costs	$ 22,667

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (523)	$ (14,271)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on equity investments	1,781
Noncash revenue from equity investments	(5)	(46)
Fair value adjustments	(24,824)	3,079
Depreciation	887	877
Stock-based compensation	4,366	1,775
Noncash research and development expenses	498	435
Noncash investment accretion	1,955	83
Loss on disposal of property and equipment	19
Decrease (increase) in assets:
Accounts receivable, net	20,153	2,404
Unbilled and other receivables	(3,065)	5,154
Reduction in the carrying amount of right of use assets	1,264	1,299
Prepaid expenses and other assets	(3,549)	(1,106)
Increase (decrease) in liabilities:
Accounts payable	(1,230)	2,110
Accrued payroll, taxes, and benefits	(1,655)	(2,289)
Deferred revenue	(8,447)	(3,378)
Lease liabilities	(1,352)	(1,266)
Other accrued liabilities	2,806	(638)
Net cash used in operating activities	(10,921)	(5,778)
Cash flows from investing activities:
Purchases of property and equipment	(513)	(843)
Purchases of equity investments		(2,869)
Distribution from equity investment	40
Proceeds from sale of equity investments	15,735
Purchases of marketable securities	(143,671)	(127,109)
Proceeds from maturity of marketable securities	66,500	42,908
Net cash used in investing activities	(61,909)	(87,913)
Cash flows from financing activities:
Issuances of common stock upon initial public offering, net		212,277
Issuances of common stock upon stock option exercises	3,656	177
Net cash provided by financing activities	3,656	212,454
Net (decrease) increase in cash and cash equivalents and restricted cash	(69,174)	118,763
Cash and cash equivalents and restricted cash, beginning of period	202,796	26,486
Cash and cash equivalents and restricted cash, end of period	133,622	145,249
Supplemental disclosure of cash flow and noncash information
Cash paid for income taxes	119	64
Supplemental disclosure of non-cash investing and financing activities
Payment of deferred offering costs		786
Purchases of property and equipment	$ 52	254
Acquisitions of right of use assets in exchange for lease obligations		1,778
Reclassification of deferred financing costs to additional paid in capital		$ 1,858

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2021
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 and development 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 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 its common 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 public offering price less underwriting discounts. The Company raised $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. On August 17, 2020, the Company completed a follow-on public offering, in which the Company issued and sold 4,500,000 shares of its common stock at a public offering price of $66.00 per share. The underwriters fully exercised their option to purchase an additional 750,000 shares of the Company’s common stock at the public offering price less underwriting discounts. The Company raised $325.6 million in net proceeds after deducting underwriting discounts and commissions and offering expenses payable by the Company. In addition, a stockholder of the Company sold 500,000 shares of common stock. The Company did not receive any proceeds from the sale of shares of common stock by the selling stockholder.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Significant Accounting Policies	(2) (a) In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments information The Company adopted this new standard effective January 1, 2021 with no material impact on its consolidated financial statements. (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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. 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, 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 assumptions used in the allocation of revenue, estimates regarding the progress of completing performance obligations under collaboration agreements, 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., its wholly owned subsidiaries, and its variable interest entity. 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 ) Restricted cash consists of letters of credit held with the Company’s financial institution related to facility leases, and is classified as current in the Company’s balance sheets based on the maturity of the underlying letter of credit. ( e ) 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 new 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 flows, and results of operations. The Company maintains an allowance for doubtful accounts. As of March 31, 2021, two customers accounted for 14% and 12% of total accounts receivable, respectively. As of December 31, 2020, two customers accounted for 17% and 14% of total accounts receivable, respectively. No customers accounted for more than 10% of total revenues during the three months ended March 31, 2021 and 2020. ( f ) 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. (g ) The Company has entered into collaboration agreements with Nimbus Therapeutics, LLC (“Nimbus”), Morphic Therapeutic, Inc., a wholly owned subsidiary of Morphic Holding, Inc. (“Morphic”), Petra Pharma Corporation (“Petra”), and Relay Therapeutics, Inc. (“Relay”) 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 2021, 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. 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. Upon the completion of Relay’s initial public offering in July 2020, the Company changed the valuation methodology used to value the Relay investment. As there is a readily available public market for Relay’s common stock, the Company valued its investment based on the closing price of Relay’s common stock as of the reporting date. In January 2021, the Company disposed of its equity stake in Relay for aggregate consideration of $15,735, resulting in a loss of $1,821 recorded in the Company’s condensed consolidated statement of operations. 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, see Note 4, Fair Value Measurements and Note 11, Equity Investments. (h ) 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 loss 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 per share attributable to common and limited stockholders as their effect is anti-dilutive. For the three months ended March 31, 2021 and 2020, the computation of basic and diluted net loss per share is presented on a combined basis for common stock and limited common stock because the results are identical.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Software products and services – point in time 54.0 % 59.7 % Software products and services – over time 28.0 31.3 Drug Discovery – over time 18.0 9.0 (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 or their own cloud instances 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 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 cloud-based software solution 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 training, technical support, 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, although 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 sources of software products and services revenue: Three Months Ended March 31, 2021 2020 On-premise software $ 17,355 $ 15,600 Hosted software 2,600 2,133 Software maintenance 4,105 3,537 Professional services 2,280 2,542 Total software revenue $ 26,340 $ 23,812 (b) Contribution Revenue The agreement with Gates Ventures, LLC covers the period from June 23, 2020 through June 22, 2023 for total consideration of up to $3,000. The Company received $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 March 31, 2021, the Company had no deferred revenue balance related to this agreement. During the three months ended March 31, 2021 and 2020, the Company recognized no contribution revenue. (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 March 31, 2021 and 2020, milestones not yet achieved that were determined to be probable of achievement totaled $2,500 and zero, respectively, and $2,213 and zero of those milestones were recognized as revenue for the three months ended March 31, 2021 and 2020. (d) Collaboration and License Agreement On November 22, 2020, the Company entered into an exclusive, worldwide collaboration and license agreement with Bristol-Myers Squibb Company (“BMS”), pursuant to which the Company and BMS have agreed to collaborate in the discovery, research and preclinical development of new small molecule compounds for disease indications in oncology, neurology, and immunology therapeutics areas. The Company will be responsible, at its own cost and expense, for the discovery of small molecule compounds directed to five specified biological targets pursuant to a mutually agreed research plan for each such target. The targets include HIF-2 alpha and SOS1/KRAS, which are two of the Company’s internal programs. Once a development candidate meeting specified criteria for a target under the agreement has been identified by the Company, BMS will be solely responsible for the further development, manufacturing and commercialization of such development candidate at its own cost and expense. Under the terms of the agreement, BMS paid the Company an initial upfront fee payment of $55,000. The Company also is entitled to receive up to $2.7 billion in total milestone payments across all potential targets, consisting of: a) up to $585,000 in milestone payments per oncology target, including $360,000 in the aggregate for the achievement of certain specified research, development, and regulatory milestones and $225,000 in the aggregate for the achievement of certain specified commercial milestones; and b) up to $482,000 million in milestone payments per neurology and immunology target, including $257,000 in the aggregate for the achievement of certain specified research, development, and regulatory milestones and $225,000 in the aggregate for the achievement of certain specified commercial milestones. The Company is also entitled to a tiered percentage royalty on annual net sales ranging from mid-single digits to low-double digits, subject to certain specified reductions. Royalties are payable by BMS on a licensed product-by-licensed product and country-by-country basis until the later of the expiration of the last valid claim covering the licensed product in such country, expiration of all applicable regulatory exclusivities in such country for such licensed product and the tenth anniversary of the first commercial sale of such licensed product in such country. The Company assessed the collaboration and license agreement in accordance with ASC 606, Revenue from Contracts with Customers The Company determined that the transaction price at the onset of the agreement is $55,000. Additional consideration to be paid to the Company upon the achievement of future milestone payments were excluded from the transaction price as they represent milestone payments that are not considered probable as of the inception date such that there is not a significant risk of revenue reversal. The Company has allocated the transaction price of $55,000 to each performance obligation based on the relative stand-alone selling price of each performance obligation at inception, which was determined based on each performance obligation’s estimated stand-alone selling price. The Company determined the estimated stand-alone selling price at contract inception of the research activities based on internal estimates of the costs to perform the services, inclusive of a reasonable profit margin. Significant inputs used to determine the total costs to perform the research activities included the length of time required, the internal hours expected to be incurred on the services and the number and costs of various studies that will be performed to complete the research plan. Revenue associated with the research activities is recognized on a proportional performance basis over the period of service for research activities, using input-based measurements of total costs of research incurred to estimate the proportion performed. Progress towards completion is remeasured at the end of each reporting period. During the three months ended March 31, 2021, the Company recognized $2,383 associated with the agreement based on the research activities performed subsequent to the contract start date. As of March 31, 2021, there was $51,629 of deferred revenue related to the agreement, which was classified as either current or non-current in the consolidated balance sheet based on the period the services are expected to be performed. (e ) Significant Judgments Significant judgments and estimates are required under ASC Topic 606. Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic 606 for the Company’s arrangements may be dependent on contract-specific terms and may vary in some instances. The Company’s contracts with customers often include promises to transfer multiple software products and services, including training, 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. Judgment is required to determine the total costs to perform research activities, which include the length of time required, the internal hours expected to be incurred on the services, and the number and costs of various studies that may be performed to complete the research plan. 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. (f ) 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 where the milestones are deemed probable, the Company records a contract asset for the full value of the milestone. Contract assets are included in unbilled and other receivables within the condensed consolidated balance sheets and are transferred to receivables when the Company invoices the customer. Contract balances were as follows: As of March 31, As of December 31, 2021 2020 Contract assets $ 6,704 $ 3,589 Deferred revenue, short-term: Software products and services 23,015 28,218 Drug discovery 17,744 17,185 Deferred revenue, long-term: Software products and services 1,569 1,976 Drug discovery 35,787 39,188 For the three months ended March 31, 2021 and 2020, respectively, the Company recognized $19,024 and $12,782 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 52% of its March 31, 2021 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 $25,654 as of March 31, 2021. 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. ( g ) 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	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 and December 31, 2020. The following table presents information about the Company’s assets and liabilities measured at fair value as of March 31, 2021: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 515,372 $ — $ 515,372 Equity investments 52,837 — — 52,837 Total $ 52,837 $ 515,372 $ — $ 568,209 The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2020: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 440,395 $ — $ 440,395 Equity investments 45,570 — — 45,570 Total $ 45,570 $ 440,395 $ — $ 485,965 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, 2019 $ 108 Cash contributions 2,869 Unrealized loss (1,008 ) As of March 31, 2020 1,969 Unrealized loss (1,969 ) As of December 31, 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 three months ended March 31, 2021 and the year ended December 31, 2020 there were no transfers between Level 1, Level 2 and Level 3 investments. See Note 11, Equity Investments, for further information.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
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. Under Topic 842, Leases Upon inception of a lease, the Company determines if an arrangement is a lease, if it includes options to extend or terminate the lease, and if it is reasonably certain that the Company will exercise the options. Lease cost, representing lease payments over the term of the lease and any capitalizable direct costs less any incentives received, is recognized on a straight-line basis over the lease term as lease expense. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date if the rate implicit in the lease is not readily determinable. Upon execution of a new lease, the Company performs an analysis to determine its incremental borrowing rate using its current borrowing rate, adjusted for various factors including level of collateralization and lease term. As of March 31, 2021, the remaining weighted average lease term was 4 years. During the three months ended March 31, 2021, the Company did not enter into any new leases. Variable and short-term lease costs were immaterial for the three months ended March 31, 2021. Additional details of the Company’s operating leases are presented in the following table: Three Months Ended March 31, 2021 2020 Operating lease costs $ 1,470 $ 1,506 Cash paid for operating leases 1,396 1,892 Maturities of operating lease liabilities as of March 31, 2021 under noncancelable operating leases were as follows: Year ending December 31: Remainder of 2021 $ 3,188 2022 1,850 2023 1,718 2024 1,735 2025 1,318 Thereafter 952 Total future minimum lease payments 10,761 Less: imputed interest (349 ) Present value of future minimum lease payments 10,412 Less: current portion of operating leases payments (3,576 ) Lease liabilities, long-term $ 6,836 (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	3 Months Ended
	Mar. 31, 2021
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. 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 ended March 31, 2021 and 2020, the Company’s income tax expense was $74 and $91, respectively. For the three months ended March 31, 2021, 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. The Company recognizes the effect of income tax positions only if those positions are “more likely than not” capable of being sustained. As of March 31, 2021, the Company had $1,122 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 March 31, 2021, the Company’s statutes of limitations are open for all federal and state years filed after the year ended December 31, 2015 and 2014, respectively. Net operating loss (“NOL”) 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 NOLs 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 (the “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 (the “2017 Tax Act”). Corporate taxpayers may carryback 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. 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. In addition, the CARES Act allows companies to defer making certain payroll tax payments until future years. With the enactment of the CARES Act, the Company has not recognized a quantitative or qualitative impact for the period ended March 31, 2021.

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit)	3 Months Ended
	Mar. 31, 2021
Equity [Abstract]
Stockholders' Equity (Deficit)	(7 ) Stockholders’ Equity (a) As of March 31, 2021, the Company had authorized 500,000,000 shares of common stock with a par value of $0.01 per share. 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 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. (b) As of March 31, 2021, the Company had authorized 100,000,000 shares of limited common stock with a par value of $0.01 per share. 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, 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, if any. Holders of the Company’s limited common stock have the right to convert each share of limited common stock into one share of the Company’s 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. (c) As of March 31, 2021, the Company had authorized 10,000,000 shares of undesignated 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 .

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	(8 ) Stock-Based Compensation Stock Incentive Plans As of March 31, 2021, the Company’s stock incentive plans included the 2010 Stock Plan (the “2010 Plan”), the 2020 Equity Incentive Plan (the “2020 Plan”), and the 2021 Inducement Equity Incentive Plan (the "2021 Plan”) (together, the “Plans”). The 2020 Plan provides for the award of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards The 2021 Plan provides for the award of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards to persons who were not previously an employee or director of the Company or who are commencing employment with the Company following a bona fide period of non-employment, in either case, as an inducement material to such person’s entry into employment with the Company and in accordance with the requirements of the Nasdaq Stock Market Rule 5635(c)(4). Neither consultants nor advisors are eligible to participate in the 2021 Plan. The 2010 Plan provided for the granting of incentive stock options and nonstatutory stock options to employees, directors, consultants or advisors. As of the effective date of the 2020 Plan, 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 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 board of directors or compensation committee 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. 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 months ended March 31, 2021 and 2020, 587,141 and 57,581 options under the Plans were exercised for total proceeds of $3,656 and $177, 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 2021 and 2020 were calculated using an average of historical exercises. Estimated volatility for the three months ended March 31, 2021 and 2020 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. As of March 31, 2021 and December 31, 2020, there were 2,534,234 and 2,168,706 shares available for grant under the Plans. Following are the weighted average valuation assumptions used for options: Three Months Ended March 31, 2021 2020 Valuation assumptions Expected dividend yield — % — % Expected volatility 59 % 60 % Expected term (years) 4.67 4.49 Risk-free interest rate 0.67 % 1.44 % The following table presents classification of stock-based compensation expense within the condensed consolidated statements of operations: Three Months Ended March 31, 2021 2020 Cost of sales $ 657 $ 253 Research and development 1,228 508 Sales and marketing 218 93 General and administrative 2,263 921 Total stock-based compensation $ 4,366 $ 1,775 The weighted average grant date fair value per share of options granted during the three months ended March 31, 2021 and 2020 was $49.30 and $7.66, respectively. The intrinsic value of options exercised during the three months ended March 31, 2021 and 2020 was $43,077 and $1,231, respectively. As of March 31, 2021, there was $91,330 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 3.6 years. The fair value of shares vested during the three months ended March 31, 2021 and 2020 was $9,462 and $1,213, respectively.

Noncontrolling Interest

Noncontrolling Interest	3 Months Ended
	Mar. 31, 2021
Noncontrolling Interest [Abstract]
Noncontrolling Interest	(9) The Company reviews each legal entity formed by parties related to the Company to determine whether or not the Company has a variable interest in the entity and whether or not the entity would meet the definition of a variable interest entity (“VIE”) in accordance with ASC Topic 810, Consolidation (“ASC 810”). If the entity is a VIE, the Company assesses whether or not the Company is the primary beneficiary of that VIE based on a number of factors, including (i) which party has the power to direct the activities that most significantly affect the VIE’s economic performance, (ii) the parties’ contractual rights and responsibilities pursuant to any contractual agreements and (iii) which party has the obligation to absorb losses or the right to receive benefits from the VIE. If the Company determines it is the primary beneficiary of a VIE, the Company consolidates the financial statements of the VIE into the Company’s consolidated financial statements at the time that determination is made. The Company evaluates whether it continues to be the primary beneficiary of any consolidated VIEs on a quarterly basis. If the Company were to determine that it is no longer the primary beneficiary of a consolidated VIE, or no longer has a variable interest in the VIE, it would deconsolidate the VIE in the period that the determination is made. If the Company determines it is the primary beneficiary of a VIE that meets the definition of a business, the Company measures the assets, liabilities and noncontrolling interests of the newly consolidated entity at fair value in accordance with ASC Topic 805, Business Combinations (“ASC 805”) at the date the reporting entity first becomes the primary beneficiary. In October 2018, Faxian was formed in the United States. In April 2019, upon consummation of the joint venture, the Company and WuXi AppTech ("WuXi"), each received a 50% equity interest in the entity in exchange for their contributions to the entity. The Company determined that Faxian was a VIE and concluded that it is the primary beneficiary of the VIE. As such, the Company has historically consolidated Faxian's results into the condensed consolidated financial statements, and eliminated WuXi's ownership as a non-controlling interest.

Net Loss per Share Attributable

Net Loss per Share Attributable to Common and Limited Stockholders	3 Months Ended
	Mar. 31, 2021
Earnings Per Share [Abstract]
Net Loss per Share Attributable to Common and Limited Stockholders	(10 ) 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 March 31, 2021 2020 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (29 ) $ (13,826 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 70,071,625 40,666,970 Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: $ (0.00 ) $ (0.34 ) Since the Company was in a loss position for the three months ended March 31, 2021 and 2020, 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 March 31, 2021 2020 Shares subject to outstanding common stock options 7,962,984 6,790,938

Equity Investments

Equity Investments	3 Months Ended
	Mar. 31, 2021
Equity Method Investments And Joint Ventures [Abstract]
Equity Investments	(11 ) The Company classifies the Nimbus investment as an equity investment within the condensed consolidated balance sheets. The initial Nimbus investment was received as compensation for collaboration services provided under a separate service agreement. The Company held 6.6% and 6.9% of Nimbus units on a fully diluted basis as of March 31, 2021 and December 31, 2020, respectively. As Nimbus is a limited liability company and the Company is not a passive investor due to its collaboration with Nimbus on a number of drug discovery targets, the Company's management determined 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 that resulted in equity ownership and related fees are paid in cash to the Company. Under the HLBV method, the Company reported losses of zero and $1,008 on the Nimbus investment for the three months ended March 31, 2021 and 2020, respectively. The carrying value of the Nimbus investment was zero as of March 31, 2021 and December 31, 2020. The Company has no obligation to fund Nimbus losses in excess of its initial investment. 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. For the three months ended March 31, 2021, the Company reported a gain of $24,824 on the Morphic investment. For the three months ended March 31, 2020, the Company reported a loss of $2,071 on the Morphic investment. As of March 31, 2021 and December 31, 2020, the carrying value of the Company’s investment in Morphic was $52,837 and $28,013, respectively. 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 in exchange for the Company’s shares of Petra common stock 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 $361 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. In connection with the Petra 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 each of March 31, 2021 and December 31, 2020, the carrying value of non-marketable equity securities was $94. In July 2020, Relay successfully completed an initial public offering. The Company accounts for its investment in Relay at fair value based on the share price of Relay’s common stock at the measurement date. In January 2021, the Company disposed of its equity stake in Relay for aggregate consideration of $15,735, resulting in a loss of $1,821 for the three months ended March 31, 2021. There was no gain or loss on the Relay investment for the three months ended March 31, 2020, as Relay was not a public company during this period. As of December 31, 2020, the carrying value of the Company’s investment in Relay was $17,556.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	(12 ) (a) D. E. Shaw For the three months ended March 31, 2021 and 2020, the Company licensed technology and purchased services for $2,249 and $1,565, respectively, from companies controlled by David E. Shaw and/or affiliates of companies controlled by David E. Shaw (the “D. E. Shaw entities”), stockholders of the Company. In addition, D. E. Shaw entities purchased certain products and services from, and provided cost reimbursements to, the Company totaling $20 and $28 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company had net payables of $3,044 and $3,464, respectively, to D.E. Shaw entities. (b) For the three months ended March 31, 2021 and 2020, the Company paid consulting fees of $95 and $127, respectively, to a member of its board of directors. (c) For the three months ended March 31, 2021 and 2020, the Bill & Melinda Gates Foundation, an entity under common control with Bill and Melinda Gates Foundation Trust (“BMGFT”), a stockholder of the Company, 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 $730 and $778 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company had net receivables of $220 and $543, respectively, due from the Bill & Melinda Gates Foundation.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Segment Reporting	(13 ) 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 March 31, 2021 2020 Segment revenues: Software $ 26,340 $ 23,812 Drug discovery 5,787 2,362 Total segment revenues $ 32,127 $ 26,174 Segment gross profit: Software $ 20,434 $ 19,811 Drug discovery (4,270 ) (4,186 ) Total segment gross profit 16,164 15,625 Unallocated: Research and development (21,448 ) (13,700 ) Sales and marketing (5,239 ) (4,789 ) General and administrative (13,389 ) (8,936 ) Loss on equity investments (1,781 ) — Change in fair value 24,824 (3,079 ) Interest income 420 699 Income tax expense (74 ) (91 ) Consolidated net loss $ (523 ) $ (14,271 ) The following table sets forth revenues by geographic area for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 United States $ 16,905 $ 13,486 Europe 10,545 8,281 Japan 1,535 1,970 Rest of World 3,142 2,437 $ 32,127 $ 26,174

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	(14 ) Subsequent Events On April 5, 2021, the Company entered into an office lease agreement (the “Lease”) for approximately 108,849 square feet of office space located at 1540 Broadway, New York, New York for its corporate headquarters. Under the terms of the Lease, subject to specified exceptions, including an initial 16 month rent abatement period (the “Rent Abatement Period”), the Company will pay an initial annual base rent of (i) $7,619, or $635 per month, for the first 60 months following the Rent Abatement Period, (ii) $8,273, or $689 per month, for months 61 through 120 following the Rent Abatement Period, and (iii) $8,926, or $744 per month, for months 121 through 180 following the Rent Abatement Period. In addition, the Company has agreed to pay its proportionate share of the landlord’s annual operating expenses associated with the premises in excess of certain base year thresholds, calculated as set forth in the Lease. The term of the Lease will continue until January 1, 2038, subject to specified adjustments. On May 6, 2021, the Company entered into an amendment to its office lease in Portland, Oregon (the "Amendment") for 8,537 square feet of additional office space in Portland, Oregon. Under the terms of the Amendment, the Company will pay an additional base rent of approximately $23 per month with a 3% annual rental escalation. The term of the Amendment continues until September 30, 2026.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Recently Issued Accounting Pronouncements	(a) In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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 In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments information The Company adopted this new standard effective January 1, 2021 with no material impact on its consolidated financial statements.
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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC's rules and regulations for interim reporting. 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, 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 assumptions used in the allocation of revenue, estimates regarding the progress of completing performance obligations under collaboration agreements, 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., its wholly owned subsidiaries, and its variable interest entity. 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.
Restricted Cash	(d ) Restricted cash consists of letters of credit held with the Company’s financial institution related to facility leases, and is classified as current in the Company’s balance sheets based on the maturity of the underlying letter of credit.
Concentrations	( e ) 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 new 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 flows, and results of operations. The Company maintains an allowance for doubtful accounts. As of March 31, 2021, two customers accounted for 14% and 12% of total accounts receivable, respectively. As of December 31, 2020, two customers accounted for 17% and 14% of total accounts receivable, respectively. No customers accounted for more than 10% of total revenues during the three months ended March 31, 2021 and 2020.
Income Taxes	( f ) 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	(g ) The Company has entered into collaboration agreements with Nimbus Therapeutics, LLC (“Nimbus”), Morphic Therapeutic, Inc., a wholly owned subsidiary of Morphic Holding, Inc. (“Morphic”), Petra Pharma Corporation (“Petra”), and Relay Therapeutics, Inc. (“Relay”) 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 2021, 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. 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. Upon the completion of Relay’s initial public offering in July 2020, the Company changed the valuation methodology used to value the Relay investment. As there is a readily available public market for Relay’s common stock, the Company valued its investment based on the closing price of Relay’s common stock as of the reporting date. In January 2021, the Company disposed of its equity stake in Relay for aggregate consideration of $15,735, resulting in a loss of $1,821 recorded in the Company’s condensed consolidated statement of operations. 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, see Note 4, Fair Value Measurements and Note 11, Equity Investments.
Net Loss per Share Attributable to Common and Limited Stockholders	(h ) 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 loss 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 per share attributable to common and limited stockholders as their effect is anti-dilutive. For the three months ended March 31, 2021 and 2020, the computation of basic and diluted net loss per share is presented on a combined basis for common stock and limited common stock because the results are identical.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Software products and services – point in time 54.0 % 59.7 % Software products and services – over time 28.0 31.3 Drug Discovery – over time 18.0 9.0
Schedule of Revenue Recognized from the Sources of Software Products and Services Revenue	The following table presents the revenue recognized from the sources of software products and services revenue: Three Months Ended March 31, 2021 2020 On-premise software $ 17,355 $ 15,600 Hosted software 2,600 2,133 Software maintenance 4,105 3,537 Professional services 2,280 2,542 Total software revenue $ 26,340 $ 23,812
Schedule of Contract Balances	Contract balances were as follows: As of March 31, As of December 31, 2021 2020 Contract assets $ 6,704 $ 3,589 Deferred revenue, short-term: Software products and services 23,015 28,218 Drug discovery 17,744 17,185 Deferred revenue, long-term: Software products and services 1,569 1,976 Drug discovery 35,787 39,188

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 515,372 $ — $ 515,372 Equity investments 52,837 — — 52,837 Total $ 52,837 $ 515,372 $ — $ 568,209 The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2020: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 440,395 $ — $ 440,395 Equity investments 45,570 — — 45,570 Total $ 45,570 $ 440,395 $ — $ 485,965
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, 2019 $ 108 Cash contributions 2,869 Unrealized loss (1,008 ) As of March 31, 2020 1,969 Unrealized loss (1,969 ) As of December 31, 2020 $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Operating lease costs $ 1,470 $ 1,506 Cash paid for operating leases 1,396 1,892
Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases	Maturities of operating lease liabilities as of March 31, 2021 under noncancelable operating leases were as follows: Year ending December 31: Remainder of 2021 $ 3,188 2022 1,850 2023 1,718 2024 1,735 2025 1,318 Thereafter 952 Total future minimum lease payments 10,761 Less: imputed interest (349 ) Present value of future minimum lease payments 10,412 Less: current portion of operating leases payments (3,576 ) Lease liabilities, long-term $ 6,836

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
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: Three Months Ended March 31, 2021 2020 Valuation assumptions Expected dividend yield — % — % Expected volatility 59 % 60 % Expected term (years) 4.67 4.49 Risk-free interest rate 0.67 % 1.44 %
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 March 31, 2021 2020 Cost of sales $ 657 $ 253 Research and development 1,228 508 Sales and marketing 218 93 General and administrative 2,263 921 Total stock-based compensation $ 4,366 $ 1,775

Net Loss per Share Attributab_2

Net Loss per Share Attributable to Common and Limited Stockholders (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (29 ) $ (13,826 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 70,071,625 40,666,970 Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: $ (0.00 ) $ (0.34 )
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 March 31, 2021 2020 Shares subject to outstanding common stock options 7,962,984 6,790,938

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Segment revenues: Software $ 26,340 $ 23,812 Drug discovery 5,787 2,362 Total segment revenues $ 32,127 $ 26,174 Segment gross profit: Software $ 20,434 $ 19,811 Drug discovery (4,270 ) (4,186 ) Total segment gross profit 16,164 15,625 Unallocated: Research and development (21,448 ) (13,700 ) Sales and marketing (5,239 ) (4,789 ) General and administrative (13,389 ) (8,936 ) Loss on equity investments (1,781 ) — Change in fair value 24,824 (3,079 ) Interest income 420 699 Income tax expense (74 ) (91 ) Consolidated net loss $ (523 ) $ (14,271 )
Schedule of Revenues by Geographic Area	The following table sets forth revenues by geographic area for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 United States $ 16,905 $ 13,486 Europe 10,545 8,281 Japan 1,535 1,970 Rest of World 3,142 2,437 $ 32,127 $ 26,174

Description of Business - Addit

Description of Business - Additional Information (Details) - USD ($)	Aug. 17, 2020	Feb. 10, 2020	Feb. 09, 2020	Mar. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
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
Temporary equity, exchange of convertible preferred stock into limited common stock, Shares			98,406,823
Limited Common Stock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Offering price per share					$ 0.01	$ 0.01
Exchange of convertible preferred stock into limited common stock, Shares			13,164,193	13,164,193
Common Stock
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issued and sold shares		1,782,352
Net proceeds from issuance of common stock	$ 325,600,000	$ 209,600,000
Conversion of convertible preferred stock into common stock		30,278,832		30,278,832
Issued and sold shares by selling stockholder	500,000
Proceeds from sale of common stock by stockholder	$ 0
Common Stock | Initial Public Offering
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issued and sold shares		11,882,352		13,664,704
Offering price per share		$ 17
Common Stock | Follow-on-Public Offering
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issued and sold shares	4,500,000
Offering price per share	$ 66
Common Stock | Underwriter
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issued and sold shares	750,000

Significant Accounting Polici_3

Significant Accounting Policies - Additional Information (Details)	1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 31, 2021USD ($)	Mar. 31, 2021USD ($)Customer	Mar. 31, 2020USD ($)Customer	Dec. 31, 2020Customer
Significant Accounting Policies [Line Items]
Proceeds from sale of equity investments		$ 15,735,000
Loss on sale of equity method investments		$ (1,781,000)
Relay Therapeutics, Inc
Significant Accounting Policies [Line Items]
Proceeds from sale of equity investments	$ 15,735,000
Loss on sale of equity method investments	$ (1,821,000)		$ 0
Customer Concentration Risk | Accounts Receivable
Significant Accounting Policies [Line Items]
Concentration risk, number of customers | Customer		2		2
Customer Concentration Risk | Accounts Receivable | Customer A
Significant Accounting Policies [Line Items]
Concentration risk, percentage		14.00%		17.00%
Customer Concentration Risk | Accounts Receivable | Customer B
Significant Accounting Policies [Line Items]
Concentration risk, percentage		12.00%		14.00%
Customer Concentration Risk | Revenue Benchmark
Significant Accounting Policies [Line Items]
Concentration risk, number of customers | Customer		0	0
ASU - 2019-12
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted		true
Change in accounting principle, accounting standards update, adoption date		Jan. 1, 2021
Change in accounting principle, accounting standards update, immaterial effect		true
2018-15
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted		false
ASU - 2016-13
Significant Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted		true
Change in accounting principle, accounting standards update, adoption date		Jan. 1, 2021
Change in accounting principle, accounting standards update, immaterial effect		true

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Timing of Revenue Recognition (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Software Products and Services | Point in Time
Disaggregation Of Revenue [Line Items]
Timing of revenue recognition	54.00%	59.70%
Software Products and Services | Over Time
Disaggregation Of Revenue [Line Items]
Timing of revenue recognition	28.00%	31.30%
Drug Discovery | Over Time
Disaggregation Of Revenue [Line Items]
Timing of revenue recognition	18.00%	9.00%

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details 1)	Mar. 31, 2021
On Premise Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01
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)	Nov. 22, 2020USD ($)Program	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Deferred revenue, revenue recognized		$ 19,024,000	$ 12,782,000
Percentage of revenue expected to be recognized		52.00%
Unsatisfied performance obligation		$ 25,654,000
Maximum
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Contract with customers, payment terms		60 days
Minimum
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Contract with customers, payment terms		30 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		$ 0	0
Contribution revenue recognition		1,000,000
Deferred revenue		0
Agreement with Gates Ventures, LLC | Maximum
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Contribution revenue recognition amount		3,000,000
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
Collaboration and License Agreement | BMS
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Upfront fee received	$ 55,000,000
Maximum milestone payments to be received	$ 2,700,000,000
Number of programs under agreement | Program	5
Transaction price	$ 55,000,000
Deferred revenue, revenue recognized		2,383,000
Deferred revenue		$ 51,629,000
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		$ 2,500,000	0
Revenue recognized with milestones		$ 2,213,000	$ 0
Oncology Product | Collaboration and License Agreement | BMS
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Maximum milestone payments to be received	585,000,000
Milestone payments to be received upon achievement of certain specified research, development, and regulatory milestones	360,000,000
Milestone payments to be received upon achievement of certain specified commercial milestones	225,000,000
Neurology and Immunology Product | Collaboration and License Agreement | BMS
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Maximum milestone payments to be received	482,000,000,000
Milestone payments to be received upon achievement of certain specified research, development, and regulatory milestones	257,000,000
Milestone payments to be received upon achievement of certain specified commercial milestones	$ 225,000,000

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
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation Of Revenue [Line Items]
Total software revenue	$ 32,127	$ 26,174
On Premise Software
Disaggregation Of Revenue [Line Items]
Total software revenue	17,355	15,600
Hosted Software
Disaggregation Of Revenue [Line Items]
Total software revenue	2,600	2,133
Software Maintenance
Disaggregation Of Revenue [Line Items]
Total software revenue	4,105	3,537
Professional Services
Disaggregation Of Revenue [Line Items]
Total software revenue	2,280	2,542
Software Products and Services
Disaggregation Of Revenue [Line Items]
Total software revenue	$ 26,340	$ 23,812

Revenue Recognition - Schedul_3

Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Contract assets	$ 6,704	$ 3,589
Deferred revenue, short-term:
Deferred revenue	40,759	45,403
Deferred revenue, long-term:
Deferred revenue, long-term	37,356	41,164
Software Products and Services
Deferred revenue, short-term:
Deferred revenue	23,015	28,218
Deferred revenue, long-term:
Deferred revenue, long-term	1,569	1,976
Drug Discovery
Deferred revenue, short-term:
Deferred revenue	17,744	17,185
Deferred revenue, long-term:
Deferred revenue, long-term	$ 35,787	$ 39,188

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total Assets	$ 568,209	$ 485,965
Marketable Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total Assets	515,372	440,395
Equity Investments
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total Assets	52,837	45,570
Level 1
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total Assets	52,837	45,570
Level 1 | Equity Investments
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total Assets	52,837	45,570
Level 2
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total Assets	515,372	440,395
Level 2 | Marketable Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Total Assets	$ 515,372	$ 440,395

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Beginning balance	$ 108	$ 1,969
Cash contributions	2,869
Unrealized loss	(1,008)	$ (1,969)
Ending balance	$ 1,969

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
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)	3 Months Ended
	Mar. 31, 2021OperatingLease
Commitments And Contingencies Disclosure [Abstract]
Operating lease expiration year	2029
Operating lease, weighted average lease term	4 years
Number of new operating lease	0

Commitments And Contingencies_2

Commitments And Contingencies - Summary of Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Operating lease costs	$ 1,470	$ 1,506
Cash paid for operating leases	$ 1,396	$ 1,892

Commitments And Contingencies_3

Commitments And Contingencies - Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2021	$ 3,188
2022	1,850
2023	1,718
2024	1,735
2025	1,318
Thereafter	952
Total future minimum lease payments	10,761
Less: imputed interest	(349)
Present value of future minimum lease payments	10,412
Less: current portion of operating leases payments	(3,576)	$ (4,543)
Lease liabilities, long-term	$ 6,836	$ 7,221

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Tax (benefit) expense	$ 74	$ 91
Unrecognized tax benefits	$ 1,122

Stockholders' Equity (Deficit)

Stockholders' Equity (Deficit) - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021Vote$ / sharesshares	Dec. 31, 2020$ / sharesshares
Class Of Stock [Line Items]
Common stock, shares authorized	500,000,000	500,000,000
Common stock, par value | $ / shares	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, par value | $ / shares	$ 0.01	$ 0.01
Voting Common Stock
Class Of Stock [Line Items]
Common stock, shares authorized	500,000,000
Common stock, par value | $ / shares	$ 0.01
Number of votes for common share | Vote	1
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. The rights, preferences and privileges of holders of the 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
Limited Common Stock
Class Of Stock [Line Items]
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value | $ / shares	$ 0.01	$ 0.01
Number of votes for common share | Vote	1
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, 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, if any. Holders of the Company’s limited common stock have the right to convert each share of limited common stock into one share of the Company’s common stock
Right to exchange limited common stock to common stock, share	1

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
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	2,534,234		2,168,706
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
Share-based compensation arrangement by share-based payment award, options, exercises in period	587,141	57,581
Total proceeds	$ 3,656	$ 177
Weighted average per share grant date fair value of options granted	$ 49.30	$ 7.66
Intrinsic value of options exercised	$ 43,077	$ 1,231
Unrecognized compensation cost related to unvested stock options granted	$ 91,330
Expected to be recognized over a weighted average period	3 years 7 months 6 days
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value	$ 9,462	$ 1,213
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%
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%
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%
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%
Maximum
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]
Share-based compensation arrangement by share-based payment award, options granted, contractual term	10 years
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 available for grant	0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Weighted Average Valuation Assumptions Used for Options (Details)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Valuation assumptions
Expected volatility	59.00%	60.00%
Expected term (years)	4 years 8 months 1 day	4 years 5 months 26 days
Risk-free interest rate	0.67%	1.44%

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Classification of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]
Total stock -based compensation	$ 4,366	$ 1,775
Cost of Sales
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]
Total stock -based compensation	657	253
Research and Development
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]
Total stock -based compensation	1,228	508
Sales and Marketing
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]
Total stock -based compensation	218	93
General and Administrative
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]
Total stock -based compensation	$ 2,263	$ 921

Noncontrolling Interest - Addit

Noncontrolling Interest - Additional Information (Details) - Faxian	Apr. 30, 2019
WuXi AppTech
Minority Interest [Line Items]
Equity interest percentage	50.00%
Variable Interest Entity, Primary Beneficiary
Minority Interest [Line Items]
Equity interest percentage	50.00%

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
	Mar. 31, 2021	Mar. 31, 2020
Numerator:
Net loss attributable to Schrödinger common and limited common stockholders	$ (29)	$ (13,826)
Denominator:
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted:	70,071,625	40,666,970
Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted:	$ 0	$ (0.34)

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
	Mar. 31, 2021	Mar. 31, 2020
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	7,962,984	6,790,938

Equity Investments - Additional

Equity Investments - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	Jan. 31, 2021	May 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Equity investments gains (losses)			$ (1,781,000)
Equity investments			52,931,000		$ 45,664,000
Distribution from equity investment			40,000
Proceeds from sale of equity investments			$ 15,735,000
Nimbus Therapeutics, LLC
Schedule of Equity Method Investments [Line Items]
Percentage of equity investment held on fully diluted basis			6.60%		6.90%
Equity investments gains (losses)			$ 0	$ (1,008,000)
Equity investments			0		$ 0
Morphic Holding, Inc.
Schedule of Equity Method Investments [Line Items]
Equity investments gains (losses)			24,824,000	(2,071,000)
Equity investments			52,837,000		28,013,000
Petra Pharma Corporation
Schedule of Equity Method Investments [Line Items]
Distribution from equity investment		$ 4,582,000
Escrow payments receivable		$ 361,000
Ravenna Therapeutics
Schedule of Equity Method Investments [Line Items]
Common shares received in connection with merger		2,676,191
Carrying value of non-marketable equity securities			94,000		94,000
Relay Therapeutics, Inc
Schedule of Equity Method Investments [Line Items]
Equity investments gains (losses)	$ (1,821,000)			$ 0
Equity investments					$ 17,556,000
Proceeds from sale of equity investments	$ 15,735,000
Loss on sale of equity method investments			$ 1,821,000

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Revenue recognized	$ 32,127	$ 26,174
D. E. Shaw Entities
Related Party Transaction [Line Items]
Purchase of services and license technology from related party	2,249	1,565
Reimbursements received from related parties for sales of products and services provided	20	28
Net receivables (payables)	(3,044)		$ (3,464)
Member of Board of Directors
Related Party Transaction [Line Items]
Payment of consulting fees	95	127
BMGFT
Related Party Transaction [Line Items]
Net receivables (payables)	220		$ 543
Revenue recognized	$ 730	$ 778

Segment Reporting - Additional

Segment Reporting - Additional Information (Details)	3 Months Ended
	Mar. 31, 2021segment
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
	Mar. 31, 2021	Mar. 31, 2020
Segment revenues:
Revenue recognized	$ 32,127	$ 26,174
Segment gross profit:
Total segment gross profit	16,164	15,625
Unallocated:
Research and development	(21,448)	(13,700)
Sales and marketing	(5,239)	(4,789)
General and administrative	(13,389)	(8,936)
Loss on equity investments	(1,781)
Change in fair value	24,824	(3,079)
Interest income	420	699
Income tax expense	(74)	(91)
Net loss	(523)	(14,271)
Operating Segments | Software Segment
Segment revenues:
Revenue recognized	26,340	23,812
Segment gross profit:
Total segment gross profit	20,434	19,811
Operating Segments | Drug Discovery Segment
Segment revenues:
Revenue recognized	5,787	2,362
Segment gross profit:
Total segment gross profit	$ (4,270)	$ (4,186)

Segment Reporting - Schedule of

Segment Reporting - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	$ 32,127	$ 26,174
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	16,905	13,486
Europe
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	10,545	8,281
Japan
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	1,535	1,970
Rest of World
Revenues From External Customers And Long Lived Assets [Line Items]
Revenues	$ 3,142	$ 2,437

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event $ in Thousands	May 06, 2021USD ($)SquareFoot	Apr. 05, 2021USD ($)SquareFoot
Office Lease Agreement
Subsequent Event [Line Items]
Area leased | SquareFoot		108,849
Rent abatement period		16 months
Office Lease Agreement | First 60 Months following Rent Abatement Period
Subsequent Event [Line Items]
Initial annual base rent		$ 7,619
Initial annual base rent per month		635
Office Lease Agreement | 61 through 120 Months following Rent Abatement Period
Subsequent Event [Line Items]
Annual lease rent payable		8,273
Lease rent payable per month		689
Office Lease Agreement | 121 through 180 Months following Rent Abatement Period
Subsequent Event [Line Items]
Annual lease rent payable		8,926
Lease rent payable per month		$ 744
Office Lease Amendment
Subsequent Event [Line Items]
Additional area leased | SquareFoot	8,537
Additional base rent per month	$ 23
Percentage of annual rental escalation	3.00%