Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 1540 Broadway | ||
Entity Address, Address Line Two | 24th 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 Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 3,519,898,945 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Portland, OR | ||
Auditor Firm ID | 185 | ||
Documents Incorporated by Reference | The registrant intends to file a definitive proxy statement pursuant to Regulation 14A relating to the 2022 Annual Meeting of Stockholders within 120 days of the end of the registrant’s fiscal year ended December 31, 2021. Portions of such definitive proxy statement are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. | ||
Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 61,873,343 | ||
Limited Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 9,164,193 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 120,267 | $ 202,296 |
Restricted cash | 3,000 | 500 |
Marketable securities | 456,212 | 440,395 |
Accounts receivable, net of allowance for doubtful accounts of $108 and $60 | 31,744 | 31,423 |
Unbilled and other receivables, net for allowance for unbilled receivables of $30 and $0 | 8,807 | 3,955 |
Prepaid expenses | 5,030 | 4,409 |
Total current assets | 625,060 | 682,978 |
Property and equipment, net | 10,025 | 5,140 |
Equity investments | 43,167 | 45,664 |
Right of use assets | 75,384 | 10,129 |
Other assets | 2,851 | 2,352 |
Total assets | 756,487 | 746,263 |
Current liabilities: | ||
Accounts payable | 8,079 | 8,398 |
Accrued payroll, taxes, and benefits | 18,405 | 12,000 |
Deferred revenue | 55,368 | 45,403 |
Lease liabilities | 2,042 | 4,543 |
Other accrued liabilities | 7,317 | 2,861 |
Total current liabilities | 91,211 | 73,205 |
Deferred revenue, long-term | 30,064 | 41,164 |
Lease liabilities, long-term | 77,827 | 7,221 |
Other liabilities, long-term | 300 | 654 |
Total liabilities | 199,402 | 122,244 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity: | ||
Preferred stock | ||
Additional paid-in capital | 786,964 | 752,558 |
Accumulated deficit | (229,952) | (129,559) |
Accumulated other comprehensive (loss) income | (651) | 317 |
Total stockholders’ equity of Schrödinger stockholders | 557,071 | 624,015 |
Noncontrolling interest | 14 | 4 |
Total stockholders’ equity | 557,085 | 624,019 |
Total liabilities and stockholders’ equity | 756,487 | 746,263 |
Common Stock | ||
Stockholders’ equity: | ||
Common stock | 618 | 607 |
Limited Common Stock | ||
Stockholders’ equity: | ||
Common stock | $ 92 | $ 92 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Allowance for doubtful accounts receivable | $ 108 | $ 60 |
Allowance for unbilled receivable | $ 30 | $ 0 |
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 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 61,834,515 | 60,713,534 |
Common stock, shares outstanding | 61,834,515 | 60,713,534 |
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 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Total revenues | $ 137,931 | $ 108,095 | $ 85,543 |
Cost of revenues: | |||
Total cost of revenues | 72,311 | 44,623 | 36,450 |
Gross profit | 65,620 | 63,472 | 49,093 |
Operating expenses: | |||
Research and development | 90,904 | 64,695 | 39,404 |
Sales and marketing | 22,150 | 17,795 | 21,364 |
General and administrative | 64,009 | 41,898 | 27,040 |
Total operating expenses | 177,063 | 124,388 | 87,808 |
Loss from operations | (111,443) | (60,916) | (38,715) |
Other income: | |||
(Loss) gain on equity investments | (1,781) | 4,108 | 943 |
Change in fair value | 11,359 | 28,263 | 9,922 |
Interest income | 1,057 | 2,253 | 1,878 |
Total other income | 10,635 | 34,624 | 12,743 |
Loss before income taxes | (100,808) | (26,292) | (25,972) |
Income tax expense (benefit) | 411 | 345 | (291) |
Net loss | (101,219) | (26,637) | (25,681) |
Net loss attributable to noncontrolling interest | (826) | (2,174) | (1,110) |
Net loss attributable to Schrödinger common and limited common stockholders | $ (100,393) | $ (24,463) | $ (24,571) |
Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: | $ (1.42) | $ (0.41) | $ (4.09) |
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: | 70,594,950 | 60,024,658 | 6,004,500 |
Software Products and Services | |||
Revenues: | |||
Total revenues | $ 113,236 | $ 92,530 | $ 66,735 |
Cost of revenues: | |||
Total cost of revenues | 26,495 | 18,003 | 13,646 |
Drug Discovery | |||
Revenues: | |||
Total revenues | 24,695 | 15,565 | 18,808 |
Cost of revenues: | |||
Total cost of revenues | $ 45,816 | $ 26,620 | $ 22,804 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss attributable to Schrödinger common and limited common stockholders | $ (100,393) | $ (24,463) | $ (24,571) |
Changes in market value of investments, net of tax: | |||
Unrealized (loss) gain on marketable securities | (968) | 301 | 25 |
Comprehensive loss | $ (101,361) | $ (24,162) | $ (24,546) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Initial Public Offering | Follow-on Offering | Series E Preferred Stock | Series D Preferred Stock | Series C Preferred Stock | Series B Preferred Stock | Series A Preferred Stock | Common Stock | Common StockInitial Public Offering | Common StockFollow-on Offering | Limited Common Stock | Additional Paid-In Capital | Additional Paid-In CapitalInitial Public Offering | Additional Paid-In CapitalFollow-on Offering | Accumulated Deficit | Accumulated Other Comprehensive Loss (Income) | Non Controlling Interest |
Beginning Balance at Dec. 31, 2018 | $ (71,560) | $ 59 | $ 8,915 | $ (80,525) | $ (9) | |||||||||||||
Convertible preferred stock, Beginning Balance, Shares at Dec. 31, 2018 | 53,669,659 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||||||||
Convertible preferred stock, Beginning Balance at Dec. 31, 2018 | $ 79,377 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||||||||
Beginning Balance, Shares at Dec. 31, 2018 | 5,906,976 | |||||||||||||||||
Change in unrealized loss on marketable securities | 25 | 25 | ||||||||||||||||
Issuances of Series E preferred stock, net of issuance costs | $ 29,893 | |||||||||||||||||
Issuance of Series E preferred stock net of issuance costs, Shares | 20,126,118 | |||||||||||||||||
Issuances of common stock upon stock option exercise | $ 549 | $ 2 | 547 | |||||||||||||||
Issuances of common stock upon stock option exercise, Shares | 214,845 | 214,845 | ||||||||||||||||
Stock-based compensation | $ 2,193 | 2,193 | ||||||||||||||||
Contributions by noncontrolling interest | 1,151 | $ 1,151 | ||||||||||||||||
Net loss | (25,681) | (24,571) | (1,110) | |||||||||||||||
Ending Balance at Dec. 31, 2019 | (93,323) | $ 61 | 11,655 | (105,096) | 16 | 41 | ||||||||||||
Convertible preferred stock, Ending Balance, Shares at Dec. 31, 2019 | 73,795,777 | 39,540,611 | 47,242,235 | 29,468,101 | 134,704,785 | |||||||||||||
Convertible preferred stock, Ending Balance at Dec. 31, 2019 | $ 109,270 | $ 22,000 | $ 19,844 | $ 9,840 | $ 30,626 | |||||||||||||
Ending Balance, Shares at Dec. 31, 2019 | 6,121,821 | |||||||||||||||||
Change in unrealized loss on marketable securities | 301 | 301 | ||||||||||||||||
Issuances of common stock upon stock option exercise | $ 4,183 | $ 14 | 4,169 | |||||||||||||||
Issuances of common stock upon stock option exercise, Shares | 1,398,177 | 1,398,177 | ||||||||||||||||
Stock-based compensation | $ 10,545 | 10,545 | ||||||||||||||||
Issuances of common stock upon public offering, net of issuance costs | $ 209,633 | $ 325,600 | $ 136 | $ 53 | $ 209,497 | $ 325,547 | ||||||||||||
Issuances of common stock upon public offering, net of issuance costs, Shares | 13,664,704 | 5,250,000 | ||||||||||||||||
Conversion of convertible preferred stock into common stock | 149,824 | $ 303 | 149,521 | |||||||||||||||
Conversion of convertible preferred stock into common stock, Shares | 30,278,832 | |||||||||||||||||
Temporary equity, conversion of convertible preferred stock into common stock | $ (109,270) | $ (9,928) | $ (30,626) | |||||||||||||||
Temporary equity, conversion of convertible preferred stock into common stock, Shares | (73,795,777) | (17,844,124) | (134,704,785) | |||||||||||||||
Exchange of convertible preferred stock into limited common stock | 41,756 | $ 132 | 41,624 | |||||||||||||||
Exchange of convertible preferred stock into limited common stock, Shares | 13,164,193 | |||||||||||||||||
Temporary equity, exchange of convertible preferred stock into limited common stock | $ (12,072) | $ (19,844) | $ (9,840) | |||||||||||||||
Temporary equity, exchange of convertible preferred stock into limited common stock, Shares | (21,696,487) | (47,242,235) | (29,468,101) | |||||||||||||||
Conversion of limited common stock into common stock | $ 40 | |||||||||||||||||
Conversion of limited common stock into common stock, Shares | (4,000,000) | |||||||||||||||||
Conversion of limited common stock into common stock | $ (40) | |||||||||||||||||
Conversion of limited common stock into common stock, Shares | 4,000,000 | |||||||||||||||||
Contributions by noncontrolling interest | 2,137 | 2,137 | ||||||||||||||||
Net loss | (26,637) | (24,463) | (2,174) | |||||||||||||||
Ending Balance at Dec. 31, 2020 | 624,019 | $ 607 | $ 92 | 752,558 | (129,559) | 317 | 4 | |||||||||||
Ending Balance, Shares at Dec. 31, 2020 | 60,713,534 | 9,164,193 | ||||||||||||||||
Change in unrealized loss on marketable securities | (968) | (968) | ||||||||||||||||
Issuances of common stock upon stock option exercise | $ 7,927 | $ 11 | 7,916 | |||||||||||||||
Issuances of common stock upon stock option exercise, Shares | 1,120,981 | 1,120,981 | ||||||||||||||||
Stock-based compensation | $ 26,490 | 26,490 | ||||||||||||||||
Contributions by noncontrolling interest | 836 | 836 | ||||||||||||||||
Net loss | (101,219) | (100,393) | (826) | |||||||||||||||
Ending Balance at Dec. 31, 2021 | $ 557,085 | $ 618 | $ 92 | $ 786,964 | $ (229,952) | $ (651) | $ 14 | |||||||||||
Ending Balance, Shares at Dec. 31, 2021 | 61,834,515 | 9,164,193 |
Consolidated Statements of Co_2
Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Initial Public Offering | Common Stock | ||
Common stock issuance costs | $ 22,667 | |
Follow-on Offering | Common Stock | ||
Common stock issuance costs | $ 20,901 | |
Series E Preferred Stock | ||
Issuance of preferred stock value of issuance costs | $ 127 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (101,219) | $ (26,637) | $ (25,681) |
Adjustments to reconcile net loss to net cash (used in) provided by | |||
Loss (gain) on equity investments | 1,781 | (4,108) | (943) |
Noncash revenue from equity investments | (107) | (397) | (186) |
Fair value adjustments | (11,359) | (28,263) | (9,922) |
Depreciation | 2,847 | 3,658 | 3,640 |
Stock-based compensation | 26,490 | 10,545 | 2,193 |
Noncash research and development expenses | 811 | 2,137 | 1,051 |
Noncash investment accretion | 5,270 | 646 | (506) |
Loss on disposal of property and equipment | 140 | ||
Decrease (increase) in assets: | |||
Accounts receivable, net | (321) | (12,747) | (5,038) |
Unbilled and other receivables | (5,187) | 3,468 | (1,556) |
Reduction in the carrying amount of right of use assets | 5,799 | 5,342 | 4,177 |
Prepaid expenses and other assets | (1,121) | 187 | 410 |
(Decrease) increase in liabilities: | |||
Accounts payable | (411) | 4,882 | (294) |
Accrued payroll, taxes, and benefits | 6,405 | 4,966 | 2,948 |
Deferred revenue | (1,028) | 59,705 | 6,715 |
Lease liabilities | (2,949) | (5,417) | (4,025) |
Other accrued liabilities | 3,490 | (1,210) | 958 |
Net cash (used in) provided by operating activities | (70,669) | 16,757 | (26,059) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (7,167) | (2,538) | (1,836) |
Purchases of equity investments | (3,700) | (2,869) | |
Distribution from equity investment | 375 | 4,582 | 943 |
Proceeds from sale of equity investments | 15,735 | ||
Purchases of marketable securities | (414,802) | (519,668) | (110,187) |
Proceeds from sale and maturity of marketable securities | 392,747 | 138,772 | 57,225 |
Net cash used in investing activities | (16,812) | (381,721) | (53,855) |
Cash flows from financing activities: | |||
Issuances of common stock upon initial public offering, net | 211,491 | ||
Issuances of common stock upon follow-on public offering, net | 325,600 | ||
Issuances of Series E preferred stock, net | 29,893 | ||
Issuances of common stock upon stock option exercise | 7,927 | 4,183 | 549 |
Contribution by noncontrolling interest | 25 | 100 | |
Deferred offering costs | (1,858) | ||
Net cash provided by financing activities | 7,952 | 541,274 | 28,684 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (79,529) | 176,310 | (51,230) |
Cash and cash equivalents and restricted cash, beginning of year | 202,796 | 26,486 | 77,716 |
Cash and cash equivalents and restricted cash, end of year | 123,267 | 202,796 | 26,486 |
Supplemental disclosure of cash flow and noncash information | |||
Cash paid for income taxes | 448 | 381 | 139 |
Supplemental disclosure of non-cash investing and financing activities | |||
Accrued deferred offering costs | 2,142 | ||
Purchases of property and equipment in accounts payable | 705 | 8 | 90 |
Acquisitions of right of use assets in exchange for lease obligations | $ 71,054 | 2,709 | 464 |
Right of use assets recognized on adoption | $ 16,475 | ||
Reclassification of deferred financing costs to additional paid-in capital | $ 1,858 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 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. 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 | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) (a) In January 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-01, Investments—Equity Securities Investments—Equity Method and Joint Ventures and Derivatives and Hedging —Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 In August 2018, the FASB issued ASU No. 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments In October 2021, the FASB issues ASU No. 2021-08, Business Combinations Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers ( b ) The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“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 consolidated financial statements. ( c ) The Company’s 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 ) Included in cash and cash equivalents were cash equivalents of $90,477 and $185,614 as of December 31, 2021 and 2020, respectively, which consisted of money market funds and certificates of deposit, and are stated at cost, which approximates market value. The Company classifies all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company classifies all marketable securities, which consist of fixed income securities, as available for sale securities. At times, cash balances held at financial institutions were in excess of the Federal Deposit Insurance Corporation’s insured limits; however, the Company primarily places its cash with high-credit quality financial institutions. 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 letters of credit. ( e ) Accounts receivable are stated at original invoice amount less an allowance for doubtful accounts. Management estimates the allowance for doubtful accounts by evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Account balances are considered delinquent if payment is not received by the due date. Accounts receivable are written off when deemed uncollectible. Recovery of accounts receivable previously written off is recorded when received. Changes in the balance of accounts deemed uncollectible were deemed immaterial as of December 31, 2021 and 2020. Interest is not charged on accounts receivable. ( f ) The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. ( g ) Property and equipment are stated at cost. The Company did not capitalize any interest during 2021 and 2020. Maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight‑line method over the estimated useful lives of the assets, which range from 3 to 7 years. Amortization of leasehold improvements is calculated using the straight‑line method over the remaining life of the lease or the useful life of the asset, whichever is shorter. Property and equipment are reviewed for impairment as discussed below under Accounting for the Impairment of Long‑Lived Assets. ( h ) Accounting for the Impairment of Long‑Lived Assets Long-lived assets, such as property and equipment subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that carrying value exceeds fair value. Fair value is determined using various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, depending on the nature of the asset. No impairment was identified for the years ended December 31, 2021, 2020, and 2019. ( i ) Warranties The Company typically warrants that its products will perform in a manner consistent with the product specifications provided to the customer for a period of 30 days. Historically, the Company has not been required to make payments under these obligations. Therefore, no liabilities for such obligations are presented in the consolidated financial statements. ( j ) 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. As of December 31, 2021, three customers accounted for 17%, 15%, and 11% of total accounts receivable, respectively. As of December 31, 2020, two customers accounted for 17% and 14% of total accounts receivable, respectively. For the year ended December 31, 2021, one customer accounted for 14% of total revenues. For the year ended December 31, 2020, no customer accounted for more than 10% of total revenues. For the year ended December 31, 2019, one customer accounted for 12% of total revenues. ( k ) Royalties Royalties represent a component of cost of revenues and consist of royalties paid to owners of intellectual property used in or bundled with the Company’s software. Generally, royalties are incurred and recorded at the time a customer enters into a binding purchase agreement, although some royalty agreements are based instead on cash collections. Royalty expense was $9,826, $7,663, and $7,352 for the years ended December 31, 2021, 2020, and 2019, respectively. ( l ) Software Development Costs Costs to develop new software products and substantial enhancements to existing software products are expensed as incurred. Historically, the Company has not capitalized any software development costs because the software development process was essentially completed concurrent with the establishment of technological feasibility. ( m ) Research and Development and Advertising Research and development and advertising costs are expensed as incurred. The Company did not incur any significant advertising costs in 2021, 2020, or 2019. ( n ) Stock‑Based Compensation The Company calculates stock‑based compensation expense utilizing fair value–based methodologies and recognizes expense over the vesting period of such awards. ( o ) Commissions Commissions represent a component of sales and marketing expense and consist of the variable compensation paid to the Company’s sales representatives. Generally, sales commissions are earned and recorded as expense at the time that a customer has entered into a binding purchase agreement. Commissions paid to sales representatives are recoverable only in the case that the Company cannot collect against any invoiced fee associated with a sales order. Commission expense was $1,829, $1,362, and $754 in 2021, 2020, and 2019, respectively. ( p ) 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. ( q ) Comprehensive Loss Comprehensive loss includes net loss and changes in equity related to changes in unrealized gains or losses on marketable securities. ( r ) In the normal course of business, the Company has entered, and may continue to enter, into collaboration agreements with private companies to perform drug design services for such companies in exchange for equity ownership stakes in such companies. If it is determined that the Company has control over the investee, the investee is consolidated in the financial statements. If the investee is consolidated with the Company and less than 100% of the equity is owned by the Company, the Company will present non-controlling interest to represent the portion of the investee owned by other investors. If it is determined that the Company does not have control over the investee, the Company evaluates the investment for the ability to exercise significant influence. Equity investments over which the Company has significant influence may be accounted for under equity method accounting in accordance with ASC Topic 323, Equity Method and Joint Ventures. If it is determined that the Company does not have significant influence over the investee, and there is no readily determinable fair value for the investment, the equity investment may be accounted for at cost minus impairment in accordance with ASC Topic 321, Equity Securities. For further information regarding the Company’s equity investments, see Note 5, Fair Value Measurements, Note 10, Noncontrolling Interest, and Note 12, Equity Investments. ( s ) 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) income attributable to common and limited common stockholders. Basic net (loss) income per share is computed by dividing net (loss) income 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 income, net income attributable to common and limited common stockholders for basic net income is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. Diluted net income per share attributable to common and limited common stockholders is computed by dividing the resulting net income attributable to common and limited common stockholders by the weighted-average number of fully diluted shares of common and limited common stock outstanding. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 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: Year Ended December 31, 2021 2020 2019 Software products and services – point in time 55.5 % 55.0 % 49.9 % Software products and services – over time 26.6 30.6 28.1 Drug Discovery – point in time 3.3 6.7 8.6 Drug Discovery – over time 14.6 7.7 13.4 (a) Software 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 (“SSP”) 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. The Company has elected the practical expedient to not assess for significant financing where the term is less than one year. The Company’s updates and upgrades are not integral to maintaining the utility of the software licenses. Payments typically are received upfront or annually. 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 core functionality of the Company’s software and are recognized as revenue when resources are consumed. 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. Software c ontribution revenue . Software c ontribution 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 and on the first anniversary of the agreement when invoiced in accordance with ASC Topic 958, Not-for-Profit Entities as the agreement is not an exchange transaction. 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 in the second quarter of 2020, and $1,000 in the second quarter of 2021 on the first anniversary of its entry into the agreement. The Company is also entitled to receive an additional $1,000 payment on or around the second anniversary of the agreement, subject to the Company providing certain progress reports to the Trustees of Columbia University in the City of New York. As of December 31, 2021, the Company had no deferred revenue balance related to this agreement. The following table presents the revenue recognized from the sources of software products and services revenue: Year Ended December 31, 2021 2020 2019 On-premise software $ 74,598 $ 58,311 $ 42,647 Hosted software 11,076 9,192 7,418 Software maintenance 17,294 14,465 11,643 Professional services 9,268 9,562 5,027 Revenue from contracts with customers 112,236 91,530 66,735 Software contribution 1,000 1,000 — Total software revenue $ 113,236 $ 92,530 $ 66,735 ( b ) Drug Discovery 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 December 31, 2021, 2020, and 2019, milestones not yet achieved that were determined to be probable of achievement totaled $2,250, $250, and $1,500, respectively, and $2,250, $85, and $1,500 of those milestones were recognized as revenue for the years ended December 31, 2021, 2020, and 2019. Drug discovery contribution revenue . Drug discovery contribution revenue consists of funds received under an agreement with Bill and Melinda Gates Foundation on a cost reimbursement basis, to perform services aimed at accelerating drug discovery in women’s health, which began in November 2021. Revenue is recognized as conditions are met in accordance with ASC Topic 958, Not-for-Profit Entities. As of December 31, 2021, there was a $1,129 deferred revenue balance related to this agreement. Year Ended December 31, 2021 2020 2019 Drug discovery services revenue from contracts with customers $ 24,584 $ 15,565 $ 18,808 Drug discovery contribution 111 — — Total drug discovery revenue $ 24,695 $ 15,565 $ 18,808 ( c ) 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 initial targets included HIF-2 alpha and SOS1/KRAS, which were two of the Company’s internal programs. In November 2021, the Company and BMS mutually agreed to replace the HIF-2 alpha target with another precision oncology target. Following the replacement election, all rights to the HIF-2 alpha target program reverted to us. 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 $2,700,000 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 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 and concluded that BMS is a customer based on the agreement structure. At inception, the Company identified one performance obligation for each of the five programs under the agreement, which includes research activities for each program and a license grant for the underlying intellectual property. The Company determined that the license grant for intellectual property is not separable from the research activities, as the research activities are expected to significantly modify or enhance the license grant over the period of service, and therefore are not distinct in the context of the contract. 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 SSP of each performance obligation at inception, which was determined based on each performance obligation’s estimated standalone selling price. The Company determined the estimated standalone 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 years ended December 31, 2021 and 2020, the Company recognized $13,749 and $988, respectively, associated with the agreement based on the research activities performed. As of December 31, 2021 and 2020, there was $40,263 and $54,012 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. There was no ( d ) 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 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 by third-parties 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 a change in these estimates could have an effect on the Company’s results of operations during the periods involved. ( e ) Contract Balances The timing of revenue recognition may differ from the timing of invoicing to customers and these timing differences result in receivables, contract assets, or contract liabilities (deferred revenue) on the 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 in a period prior to when the milestone is achieved, the Company records a contract asset for the full value of the milestone. Contract assets are included in unbilled and other receivables within the consolidated balance sheets and are transferred to receivables when the Company invoices the customer. Contract balances were as follows: As of December 31, As of December 31, 2021 2020 Contract assets $ 8,271 $ 3,589 Deferred revenue, short-term: Software products and services 32,945 28,218 Drug discovery 22,423 17,185 Deferred revenue, long-term: Software products and services 3,938 1,976 Drug discovery 26,126 39,188 For the years ended December 31, 2021 and 2020, respectively, the Company recognized $42,127 Payment terms and conditions vary by contract type, although terms typically require payment within 30 to 60 days. In instances where the timing of revenue recognition differs from that of invoicing, the Company has determined that its contracts generally do not include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, not to facilitate financing arrangements. ( f ) Deferred Sales Commissions The Company has applied the practical expedient for sales commission expense, as any material 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | (4) Property and Equipment Property and equipment consisted of the following: As of December 31, 2021 2020 Computers and equipment $ 16,059 $ 12,718 Leasehold improvements 2,276 4,385 Furniture and fixtures 4,045 1,839 22,380 18,942 Less accumulated depreciation (12,355 ) (13,802 ) $ 10,025 $ 5,140 Depreciation expense for 2021, 2020, and 2019 was $2,847, $3,658, and $3,625 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (5) 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 December 31, 2021 and 2020. The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2021: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 456,212 $ — $ 456,212 Equity investments 39,561 — 1,887 41,448 Total $ 39,561 $ 456,212 $ 1,887 $ 497,660 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 investments in Nimbus Therapeutics, LLC (“Nimbus”) and ShouTi Inc. (“ShouTi”), classified as Level 3 in the fair value hierarchy, was determined under the hypothetical liquidated book value method (“HLBV method”), as further described in Note 12, Equity Investments. Significant unobservable inputs used under the HLBV method include Nimbus’ and ShouTi’s annual financial statements and the Company’s respective liquidation priorities. 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 (2,977 ) As of December 31, 2020 - Cash contributions 2,000 Unrealized loss (113 ) As of December 31, 2021 $ 1,887 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 consolidated statements of operations. During the years ended December 31, 2021 and 2020 , there were no transfers between Level 1, Level 2 and Level 3 investments. See Note 12, Equity Investments, for further information . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (6) (a) The Company leases office space under operating leases that expire at various dates through 2037. The Company has elected the package of practical expedients under the transition guidance of ASC 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 December 31, 2021, the remaining weighted average lease term was 15 years. During the year ended December 31, 2021, the accounting commencement began for two new leases, which increased the right-of-use (“ROU”) assets and lease liabilities by $71,054. ROU assets and lease liabilities were equal as no lease costs or incentives were associated with acquiring the leases. On November 1, 2021, the Company entered into an office lease agreement for 16,727 square feet of office space located at One Main Street, Cambridge, Massachusetts. Under the terms of the agreement, the Company will pay base rent of approximately $135 per month with a 3% annual rental escalation. The Company estimates that the lease commencement date will occur during the three months ending June 30, 2022 and continue to the end of the lease, which is 10 years after commencement. On November 30, 2021, the Company entered into an office lease agreement for 19,753 square feet of office space located at Salarpuria Sattva, Knowledge City, Hyderabad, India. Under the terms of the agreement, the Company will pay base rent of approximately $20 per month from commencement to handover date and $29 per month from handover date to termination of the lease. The Company estimates that the lease handover and commencement dates will occur during the three months ending March 31, 2022 and continue to the end of the lease in June 2023 Variable and short-term lease costs were immaterial for the year ended December 31, 2021. Additional details of the Company’s operating leases are presented in the following table: Year Ended December 31, 2021 2020 2019 Operating lease costs $ 7,627 $ 5,895 $ 5,181 Cash paid for operating leases 4,561 6,050 5,108 Maturities of operating lease liabilities as of December 31, 2021 under noncancelable operating leases were as follows: Year ending December 31: 2022 $ 2,087 2023 8,809 2024 9,632 2025 9,241 2026 8,758 Thereafter 93,656 Total future minimum lease payments 132,183 Less: imputed interest (52,314 ) Present value of future minimum lease payments 79,869 Less: current portion of operating leases payments (2,042 ) Lease liabilities, long-term $ 77,827 (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 | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (7) Income Taxes Income tax expense is comprised of the following: Year ended December 31, 2021 2020 2019 Current: Federal $ — $ — $ 583 State 67 178 (95 ) Foreign 344 167 (779 ) Current income tax expense (benefit) 411 345 (291 ) Deferred: Federal — — — State — — — Deferred income tax expense (benefit) — — — $ 411 $ 345 $ (291 ) Components of loss before income taxes by tax jurisdiction were as follows: Year ended December 31, 2021 2020 2019 United States $ (101,341 ) $ (24,567 ) $ (25,385 ) Foreign 1,359 449 523 Loss before income taxes $ (99,982 ) $ (24,118 ) $ (24,862 ) Reconciliation of income tax expense at the applicable statutory income tax rates to the effective income tax rate is as follows: Year ended December 31, 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefits 4.9 14.2 4.2 Withholding tax — — (2.3 ) Section 162(m) limitation (5.2 ) (12.8 ) — Stock compensation 12.4 68.5 0.2 Return-to-provision adjustments (1.7 ) (1.3 ) 3.2 Research and development credit 6.3 6.2 5.2 Tax contingencies, net of reversals (0.7 ) (0.6 ) (0.5 ) Change in valuation allowance (37.2 ) (95.0 ) (31.3 ) Other (0.2 ) (1.6 ) (0.6 ) Effective income tax rate (0.4 )% (1.4 )% (0.9 )% The income tax expense for the years ended December 31, 2021 and December 31, 2020 primarily related to state taxes and taxes in foreign jurisdictions. Income tax benefit for the year ended December 31, 2019 primarily related to alternative minimum tax credits previously utilized that are refundable under the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”). The total change in valuation allowance for the year ended December 31, 2021 was $37,149, which primarily was due to the generation of net operating losses. Tax effects of temporary differences that give rise to significant portions of deferred income tax assets and deferred income tax liabilities were as follows: As of December 31, 2021 2020 2019 Deferred income tax assets: Net operating loss carryforwards $ 67,985 $ 51,498 $ 26,119 Accrued expenses 10,309 7,918 6,164 Deferred Revenue 10,632 394 500 Lease Liabilities 18,773 2,165 433 Credits 14,559 8,752 7,468 Gross deferred tax assets 122,258 70,727 40,684 Less valuation allowance (95,304 ) (58,155 ) (35,251 ) Net deferred tax assets 26,954 12,572 5,433 Deferred income tax liabilities: Unrealized gain on equity investments (8,545 ) (10,185 ) (1,984 ) Prepaid expenses (969 ) (889 ) (441 ) Depreciation and amortization (17,440 ) (1,498 ) (3,008 ) Net deferred income tax assets $ — $ — $ — As of December 31, 2021, the Company had federal and state net operating loss (“NOL”) carryforwards of $283,314 and $148,130, respectively. These carryforwards, with the exception of federal NOLs generated post 2017, will expire between 2022 and 2041 if not used by the Company to reduce income taxes payable in future periods. Utilization of post 2017 federal NOL carryforwards are limited to 80% of taxable income generated in a given year and carry forward indefinitely. As of December 31, 2021, the Company had federal and state research and development tax credit carryforwards of $15,459 and $977, respectively. These carryforwards will expire between 2022 and 2041 if not used by the Company to reduce income taxes payable in future periods. 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 March 31, 2021 and determined that such an ownership change has occurred. There was no material impact to the financial statements due to this ownership change. The Company has not recognized a deferred tax liability for the undistributed earnings of its foreign operations as the Company considers these earnings to be indefinitely reinvested. 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 2017 Tax Act. With the enactment of the CARES Act, the Company has not recognized a quantitative or qualitative impact for the years ended December 31, 2021, 2020, and 2019. The Company classifies interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statement of operations. Following is a reconciliation of total gross unrecognized tax benefits: Year ended December 31, 2021 2020 2019 Balance, January 1 $ 1,046 $ 902 $ 781 Additions for tax positions taken in prior years 282 25 24 Reductions for tax positions taken in prior years (20 ) (16 ) (12 ) Additions for tax positions related to the current year 394 135 109 Balance, December 31 $ 1,702 $ 1,046 $ 902 The Company does not anticipate any significant increases or decreases in its uncertain tax positions within the next 12 months. The Company and its subsidiaries file U.S. federal income tax returns and various state, local and foreign income tax returns. As of December 31, 2021, the Company’s statutes of limitations are open for all federal and state years tax returns filed after the years ended December 31, 2016 and 2015, respectively. Net operating loss and credit carryforwards for 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. |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit) | (8) Stockholders’ Equity (Deficit) (a) As of December 31, 2021, the Company had authorized 500,000,000 shares of common stock with a par value of $0.01 per share. Holders of common stock are entitled to one vote per share, to receive dividends, if and when declared by the board of directors, and upon liquidation or dissolution, to receive a portion of the assets available for distributions to stockholders, subject to preferential amounts owed to holders of the Company’s preferred stock, if any. 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 December 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 December 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 | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | (9) Stock-Based Compensation Stock Incentive Plans As of December 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 to employees, directors, consultants or advisors. 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 the grant. The maximum contractual term of options granted under the Plans is typically 10 years, options generally vest over four years with 25% During 2021, 2020, and 2019, 1,120,981, 1,398,177, and 214,845 7,927 $549, 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, 2020, and 2019 were calculated using an average of historical exercises. Estimated volatility for 2021, 2020, and 2019 incorporates a calculated volatility derived from the historical closing prices of shares of common stock of similar entities whose share prices were publicly available for the expected term of the option. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the option. The Company accounts for forfeitures as they occur, as such, the Company does not estimate forfeitures at the time of grant. As of December 31, 2021, there were 2,283,037 shares available for grant under the Plans. Following are the weighted average valuation assumptions used for options: Year Ended December 31, 2021 2020 2019 Valuation assumptions Expected dividend yield — % — % — % Expected volatility 59 % 60 % 57 % Expected term (years) 4.66 4.49 6.05 Risk-free interest rate 0.71 % 1.46 % 2.33 % The following table presents classification of stock-based compensation expense within the consolidated statements of operations: Year Ended December 31, 2021 2020 2019 Cost of sales $ 3,858 $ 1,384 $ 376 Research and development 7,440 3,050 460 Sales and marketing 1,281 516 311 General and administrative 13,911 5,595 1,046 Total stock-based compensation $ 26,490 $ 10,545 $ 2,193 Stock option activity was as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Beginning, January 1, 2021 7,257,460 $ 12.14 Granted 1,696,327 93.13 Exercised (1,120,981 ) 7.00 Forfeited (149,346 ) 41.47 Expired (3,119 ) 1.70 Balance, December 31, 2021 7,680,341 30.19 7.67 $ 35,584 Exercisable, December 31, 2021 3,473,716 10.83 6.75 $ 83,306 The weighted average grant date fair value per share of options granted during 2021, 2020, and 2019 was $ 45.07 respectively As of December 31, 2021, there was $78,355 19,080 $1,734, |
Noncontrolling Interest
Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest | (10) 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 . 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 at the date the reporting entity first becomes the primary beneficiary. In October 2018, Faxian Therapeutics, LLC (“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 consolidated Faxian's results into the 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 | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common and Limited Stockholders | (11) The following table presents the calculation of basic and diluted net loss per share attributable to common and limited common stockholders for the years presented (in thousands, except for share and per share data): Year Ended December 31, 2021 2020 2019 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (100,393 ) $ (24,463 ) $ (24,571 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 70,594,950 60,024,658 6,004,500 Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: $ (1.42 ) $ (0.41 ) $ (4.09 ) Since the Company was in a loss position for all years presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential 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: Year Ended December 31, 2021 2020 2019 Convertible preferred stock — — 42,734,884 Shares subject to outstanding common stock options 7,680,341 7,257,460 4,805,562 7,680,341 7,257,460 47,540,446 |
Equity Investments
Equity Investments | 12 Months Ended |
Dec. 31, 2021 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Investments | (12 ) Investments (a) Nimbus 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. 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 investment as an equity method investment. 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 HLBV method for valuing contractual rights to substantive profits provides the best representation of its financial position in Nimbus. 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. The carrying value of the Nimbus investment was zero as of December 31, 2021 and December 31, 2020. The Company has no obligation to fund Nimbus losses in excess of its initial investment. The Company reported losses of zero, $2,977, and $4,180 on the Nimbus investment during 2021, 2020, and 2019, respectively. (b) Morphic The Company During 2021, 2020, and 2019 the Company reported gains of $11,548, $13,685, and $14,102 on the Morphic investment, respectively. As of December 31, 2021 and December 31, 2020, the carrying value of the Company’s investment in Morphic was $39,561 and $28,013, respectively. (c) Petra Prior to May 2020, the Company had concluded that its equity investment in Petra Pharma Corporation (“Petra”) should be valued as a non-marketable equity 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 (d) Ravenna In connection with the Petra merger, the Company received 2,676,191 shares of common stock of Ravenna Pharmaceuticals, Inc. (“Ravenna”). The Company concluded that its equity investment in Ravenna should be valued as a non-marketable equity security as the Company does not exercise significant influence over Ravenna. As of each of December 31, 2021 and December 31, 2020, the carrying value of the Company’s investment in Ravenna was $19 and $94, respectively. The Company reported losses of $75, zero, and zero on the Ravenna investment during 2021, 2020, and 2019, respectively. (e) Relay 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 2021. The Company reported a gain of $17,556 on the Relay investment for the year ended December 31, 2020. (f) Ajax In May 2021, the Company purchased 631,377 shares of Series B preferred stock of Ajax Therapeutics, Inc. (“Ajax”) for $1,700 in cash. The Company has concluded that its equity investment in Ajax should be valued as a non-marketable equity security as the Company does not exercise significant influence over Ajax. As of December 31, 2021 and December 31, 2020, the carrying value of the Company’s investment in Ajax was $1,700 and zero, respectively. (g) ShouTi In July 2021, the Company purchased 494,035 shares of Series B preferred stock of ShouTi for $2,000 in cash. As ShouTi is structured as a company limited by shares, incorporated under the laws of the Cayman Islands and the Company is not a passive investor due to its collaboration with ShouTi 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 investment as an equity method investment. The Company has determined that the HLBV method for valuing contractual rights to substantive profits provides the best representation of its financial position in ShouTi. The carrying value of ShouTi was $1,887 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | (13 ) Employee Benefit Plan The Company offers a 401(k) employee savings plan to its U.S.‑based employees. The Company made discretionary matching contributions equal to 100% of the first 4.0% of compensation contributed by employees for the years ended December 31, 2021, 2020, and 2019. Matching contributions during 2021, 2020, and 2019 were $2,592, $1,748, and $1,492, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (14) (a) D. E. Shaw For the years ended December 31, 2021, 2020, and 2019, the Company licensed technology and purchased services for $7,940, $7,281, and $5,190, 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 $318, $226, and $195 for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021 and 2020, the Company had net payables of $2,637 and $3,464, respectively, to D.E. Shaw entities. (b) For the years ended December 31, 2021, 2020, and 2019, the Company paid consulting fees of $390, $364, and $361, respectively, to a member of its board of directors. (c) For the years ended December 31, 2021, 2020, and 2019, the Bill & Melinda Gates Foundation, an entity under common control with Bill and Melinda Gates Foundation Trust, 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 $1,160, $2,094, and $1,065 for the years ended December 31, 2021, 2020, and 2019, respectively. As of December 31, 2021 and 2020, the Company had net receivables of $165 and $543, respectively, due from the Bill & Melinda Gates Foundation. In the fourth quarter of 2021, the Company recognized $111 in drug discovery contribution revenue related to funds received under an agreement with the Bill & Melinda Gates Foundation, aimed at accelerating drug discovery in women’s health. As of December 31, 2021, the Company had no receivables due under this agreement from the Bill & Melinda Gates Foundation. The Company received $1,000 in contribution revenue in connection with its entry into an agreement with Gates Ventures, LLC in the second quarter of 2020, and $1,000 in contribution revenue in the second quarter of 2021 on the first anniversary of its entry into the agreement. Gates Ventures, LLC is an entity under control of William H. Gates III, who may be deemed to be the beneficial owner of more than 5% of the Company’s voting securities. As of December 31, 2021 and 2020, the Company had no net receivables due from Gates Ventures, LLC. (d) ShouTi During the year ended December 31, 2021, the Company entered into multiple software agreements with ShouTi and its subsidiary for approximately $650. The Company recognized revenue of approximately $129 in the aggregate related to these agreements during the year ended December 31, 2021. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | (15 ) 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: Year Ended December 31, 2021 2020 2019 Segment revenues: Software $ 113,236 $ 92,530 $ 66,735 Drug discovery 24,695 15,565 18,808 Total segment revenues $ 137,931 $ 108,095 $ 85,543 Segment gross profit: Software $ 86,741 $ 74,527 $ 53,089 Drug discovery (21,121 ) (11,055 ) (3,996 ) Total segment gross profit 65,620 63,472 49,093 Unallocated: Research and development (90,904 ) (64,695 ) (39,404 ) Sales and marketing (22,150 ) (17,795 ) (21,364 ) General and administrative (64,009 ) (41,898 ) (27,040 ) (Loss) gain on equity investments (1,781 ) 4,108 943 Change in fair value 11,359 28,263 9,922 Interest income 1,057 2,253 1,878 Income tax (expense) benefit (411 ) (345 ) 291 Consolidated net loss $ (101,219 ) $ (26,637 ) $ (25,681 ) The following table sets forth revenues Year Ended December 31, 2021 2020 2019 United States $ 90,398 $ 60,737 $ 47,622 Europe 27,810 24,370 17,504 Japan 8,565 14,558 14,367 Rest of World 11,158 8,430 6,050 $ 137,931 $ 108,095 $ 85,543 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | (16 ) Subsequent Events On January 14, 2022, we acquired 117,840 XTAL BioStructures, Inc. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | (a) In January 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-01, Investments—Equity Securities Investments—Equity Method and Joint Ventures and Derivatives and Hedging —Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 In August 2018, the FASB issued ASU No. 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 June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses Measurement of Credit Losses on Financial Instruments In October 2021, the FASB issues ASU No. 2021-08, Business Combinations Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers |
Basis of Presentation and Use of Estimates | ( b ) The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“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 consolidated financial statements. |
Principles of Consolidation | ( c ) The Company’s 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. |
Cash and Cash Equivalents and Marketable Securities and Restricted Cash | ( d ) Included in cash and cash equivalents were cash equivalents of $90,477 and $185,614 as of December 31, 2021 and 2020, respectively, which consisted of money market funds and certificates of deposit, and are stated at cost, which approximates market value. The Company classifies all highly liquid investments with an original maturity of 90 days or less to be cash equivalents. The Company classifies all marketable securities, which consist of fixed income securities, as available for sale securities. At times, cash balances held at financial institutions were in excess of the Federal Deposit Insurance Corporation’s insured limits; however, the Company primarily places its cash with high-credit quality financial institutions. 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 letters of credit. |
Accounts Receivable | ( e ) Accounts receivable are stated at original invoice amount less an allowance for doubtful accounts. Management estimates the allowance for doubtful accounts by evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions. Account balances are considered delinquent if payment is not received by the due date. Accounts receivable are written off when deemed uncollectible. Recovery of accounts receivable previously written off is recorded when received. Changes in the balance of accounts deemed uncollectible were deemed immaterial as of December 31, 2021 and 2020. Interest is not charged on accounts receivable. |
Fair Value of Financial Instruments | ( f ) The carrying values of cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities approximate fair value due to their short maturities. |
Property and Equipment | ( g ) Property and equipment are stated at cost. The Company did not capitalize any interest during 2021 and 2020. Maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight‑line method over the estimated useful lives of the assets, which range from 3 to 7 years. Amortization of leasehold improvements is calculated using the straight‑line method over the remaining life of the lease or the useful life of the asset, whichever is shorter. Property and equipment are reviewed for impairment as discussed below under Accounting for the Impairment of Long‑Lived Assets. |
Accounting for the Impairment of Long Lived Assets | ( h ) Accounting for the Impairment of Long‑Lived Assets Long-lived assets, such as property and equipment subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that carrying value exceeds fair value. Fair value is determined using various valuation techniques, including discounted cash flow models, quoted market values, and third-party independent appraisals, depending on the nature of the asset. No impairment was identified for the years ended December 31, 2021, 2020, and 2019. |
Warranties | ( i ) Warranties The Company typically warrants that its products will perform in a manner consistent with the product specifications provided to the customer for a period of 30 days. Historically, the Company has not been required to make payments under these obligations. Therefore, no liabilities for such obligations are presented in the consolidated financial statements. |
Concentrations | ( j ) 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. As of December 31, 2021, three customers accounted for 17%, 15%, and 11% of total accounts receivable, respectively. As of December 31, 2020, two customers accounted for 17% and 14% of total accounts receivable, respectively. For the year ended December 31, 2021, one customer accounted for 14% of total revenues. For the year ended December 31, 2020, no customer accounted for more than 10% of total revenues. For the year ended December 31, 2019, one customer accounted for 12% of total revenues. |
Royalties | ( k ) Royalties Royalties represent a component of cost of revenues and consist of royalties paid to owners of intellectual property used in or bundled with the Company’s software. Generally, royalties are incurred and recorded at the time a customer enters into a binding purchase agreement, although some royalty agreements are based instead on cash collections. Royalty expense was $9,826, $7,663, and $7,352 for the years ended December 31, 2021, 2020, and 2019, respectively. |
Software Development Costs | ( l ) Software Development Costs Costs to develop new software products and substantial enhancements to existing software products are expensed as incurred. Historically, the Company has not capitalized any software development costs because the software development process was essentially completed concurrent with the establishment of technological feasibility. |
Research and Development and Advertising | ( m ) Research and Development and Advertising Research and development and advertising costs are expensed as incurred. The Company did not incur any significant advertising costs in 2021, 2020, or 2019. |
Stock-Based Compensation | ( n ) Stock‑Based Compensation The Company calculates stock‑based compensation expense utilizing fair value–based methodologies and recognizes expense over the vesting period of such awards. |
Commissions | ( o ) Commissions Commissions represent a component of sales and marketing expense and consist of the variable compensation paid to the Company’s sales representatives. Generally, sales commissions are earned and recorded as expense at the time that a customer has entered into a binding purchase agreement. Commissions paid to sales representatives are recoverable only in the case that the Company cannot collect against any invoiced fee associated with a sales order. Commission expense was $1,829, $1,362, and $754 in 2021, 2020, and 2019, respectively. |
Income Taxes | ( p ) 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. |
Comprehensive Loss | ( q ) Comprehensive Loss Comprehensive loss includes net loss and changes in equity related to changes in unrealized gains or losses on marketable securities. |
Equity Investments | ( r ) In the normal course of business, the Company has entered, and may continue to enter, into collaboration agreements with private companies to perform drug design services for such companies in exchange for equity ownership stakes in such companies. If it is determined that the Company has control over the investee, the investee is consolidated in the financial statements. If the investee is consolidated with the Company and less than 100% of the equity is owned by the Company, the Company will present non-controlling interest to represent the portion of the investee owned by other investors. If it is determined that the Company does not have control over the investee, the Company evaluates the investment for the ability to exercise significant influence. Equity investments over which the Company has significant influence may be accounted for under equity method accounting in accordance with ASC Topic 323, Equity Method and Joint Ventures. If it is determined that the Company does not have significant influence over the investee, and there is no readily determinable fair value for the investment, the equity investment may be accounted for at cost minus impairment in accordance with ASC Topic 321, Equity Securities. For further information regarding the Company’s equity investments, see Note 5, Fair Value Measurements, Note 10, Noncontrolling Interest, and Note 12, Equity Investments. |
Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders | ( s ) 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) income attributable to common and limited common stockholders. Basic net (loss) income per share is computed by dividing net (loss) income 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 income, net income attributable to common and limited common stockholders for basic net income is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. Diluted net income per share attributable to common and limited common stockholders is computed by dividing the resulting net income attributable to common and limited common stockholders by the weighted-average number of fully diluted shares of common and limited common stock outstanding. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, 2021 2020 2019 Software products and services – point in time 55.5 % 55.0 % 49.9 % Software products and services – over time 26.6 30.6 28.1 Drug Discovery – point in time 3.3 6.7 8.6 Drug Discovery – over time 14.6 7.7 13.4 |
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: Year Ended December 31, 2021 2020 2019 On-premise software $ 74,598 $ 58,311 $ 42,647 Hosted software 11,076 9,192 7,418 Software maintenance 17,294 14,465 11,643 Professional services 9,268 9,562 5,027 Revenue from contracts with customers 112,236 91,530 66,735 Software contribution 1,000 1,000 — Total software revenue $ 113,236 $ 92,530 $ 66,735 |
Drug Discovery Revenue | Year Ended December 31, 2021 2020 2019 Drug discovery services revenue from contracts with customers $ 24,584 $ 15,565 $ 18,808 Drug discovery contribution 111 — — Total drug discovery revenue $ 24,695 $ 15,565 $ 18,808 |
Schedule of Contract Balances | Contract balances were as follows: As of December 31, As of December 31, 2021 2020 Contract assets $ 8,271 $ 3,589 Deferred revenue, short-term: Software products and services 32,945 28,218 Drug discovery 22,423 17,185 Deferred revenue, long-term: Software products and services 3,938 1,976 Drug discovery 26,126 39,188 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following: As of December 31, 2021 2020 Computers and equipment $ 16,059 $ 12,718 Leasehold improvements 2,276 4,385 Furniture and fixtures 4,045 1,839 22,380 18,942 Less accumulated depreciation (12,355 ) (13,802 ) $ 10,025 $ 5,140 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 31, 2021: Level 1 Level 2 Level 3 Total Assets: Marketable securities $ — $ 456,212 $ — $ 456,212 Equity investments 39,561 — 1,887 41,448 Total $ 39,561 $ 456,212 $ 1,887 $ 497,660 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 (2,977 ) As of December 31, 2020 - Cash contributions 2,000 Unrealized loss (113 ) As of December 31, 2021 $ 1,887 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, 2021 2020 2019 Operating lease costs $ 7,627 $ 5,895 $ 5,181 Cash paid for operating leases 4,561 6,050 5,108 |
Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases | Maturities of operating lease liabilities as of December 31, 2021 under noncancelable operating leases were as follows: Year ending December 31: 2022 $ 2,087 2023 8,809 2024 9,632 2025 9,241 2026 8,758 Thereafter 93,656 Total future minimum lease payments 132,183 Less: imputed interest (52,314 ) Present value of future minimum lease payments 79,869 Less: current portion of operating leases payments (2,042 ) Lease liabilities, long-term $ 77,827 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | Income tax expense is comprised of the following: Year ended December 31, 2021 2020 2019 Current: Federal $ — $ — $ 583 State 67 178 (95 ) Foreign 344 167 (779 ) Current income tax expense (benefit) 411 345 (291 ) Deferred: Federal — — — State — — — Deferred income tax expense (benefit) — — — $ 411 $ 345 $ (291 ) |
Schedule of Components of Loss Before Income Taxes by Tax Jurisdiction | Components of loss before income taxes by tax jurisdiction were as follows: Year ended December 31, 2021 2020 2019 United States $ (101,341 ) $ (24,567 ) $ (25,385 ) Foreign 1,359 449 523 Loss before income taxes $ (99,982 ) $ (24,118 ) $ (24,862 ) |
Schedule of Reconciliation of Income Tax Expense Applicable Statutory Income Tax Rates to Effective Income Tax Rate | Reconciliation of income tax expense at the applicable statutory income tax rates to the effective income tax rate is as follows: Year ended December 31, 2021 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefits 4.9 14.2 4.2 Withholding tax — — (2.3 ) Section 162(m) limitation (5.2 ) (12.8 ) — Stock compensation 12.4 68.5 0.2 Return-to-provision adjustments (1.7 ) (1.3 ) 3.2 Research and development credit 6.3 6.2 5.2 Tax contingencies, net of reversals (0.7 ) (0.6 ) (0.5 ) Change in valuation allowance (37.2 ) (95.0 ) (31.3 ) Other (0.2 ) (1.6 ) (0.6 ) Effective income tax rate (0.4 )% (1.4 )% (0.9 )% |
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Income Tax Assets and Deferred Income Tax Liabilities | Tax effects of temporary differences that give rise to significant portions of deferred income tax assets and deferred income tax liabilities were as follows: As of December 31, 2021 2020 2019 Deferred income tax assets: Net operating loss carryforwards $ 67,985 $ 51,498 $ 26,119 Accrued expenses 10,309 7,918 6,164 Deferred Revenue 10,632 394 500 Lease Liabilities 18,773 2,165 433 Credits 14,559 8,752 7,468 Gross deferred tax assets 122,258 70,727 40,684 Less valuation allowance (95,304 ) (58,155 ) (35,251 ) Net deferred tax assets 26,954 12,572 5,433 Deferred income tax liabilities: Unrealized gain on equity investments (8,545 ) (10,185 ) (1,984 ) Prepaid expenses (969 ) (889 ) (441 ) Depreciation and amortization (17,440 ) (1,498 ) (3,008 ) Net deferred income tax assets $ — $ — $ — |
Schedule of Reconciliation of Total Gross Unrecognized Tax Benefits | The Company classifies interest and penalties related to unrecognized tax benefits within income tax expense in the consolidated statement of operations. Following is a reconciliation of total gross unrecognized tax benefits: Year ended December 31, 2021 2020 2019 Balance, January 1 $ 1,046 $ 902 $ 781 Additions for tax positions taken in prior years 282 25 24 Reductions for tax positions taken in prior years (20 ) (16 ) (12 ) Additions for tax positions related to the current year 394 135 109 Balance, December 31 $ 1,702 $ 1,046 $ 902 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, 2021 2020 2019 Valuation assumptions Expected dividend yield — % — % — % Expected volatility 59 % 60 % 57 % Expected term (years) 4.66 4.49 6.05 Risk-free interest rate 0.71 % 1.46 % 2.33 % |
Summary of Classification of Stock Based Compensation Expense | The following table presents classification of stock-based compensation expense within the consolidated statements of operations: Year Ended December 31, 2021 2020 2019 Cost of sales $ 3,858 $ 1,384 $ 376 Research and development 7,440 3,050 460 Sales and marketing 1,281 516 311 General and administrative 13,911 5,595 1,046 Total stock-based compensation $ 26,490 $ 10,545 $ 2,193 |
Summary of Stock Option Activity | Stock option activity was as follows: Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value Beginning, January 1, 2021 7,257,460 $ 12.14 Granted 1,696,327 93.13 Exercised (1,120,981 ) 7.00 Forfeited (149,346 ) 41.47 Expired (3,119 ) 1.70 Balance, December 31, 2021 7,680,341 30.19 7.67 $ 35,584 Exercisable, December 31, 2021 3,473,716 10.83 6.75 $ 83,306 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common and Limited Stockholders (Tables) | 12 Months Ended |
Dec. 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 years presented (in thousands, except for share and per share data): Year Ended December 31, 2021 2020 2019 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (100,393 ) $ (24,463 ) $ (24,571 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 70,594,950 60,024,658 6,004,500 Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: $ (1.42 ) $ (0.41 ) $ (4.09 ) |
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive | Since the Company was in a loss position for all years presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential 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: Year Ended December 31, 2021 2020 2019 Convertible preferred stock — — 42,734,884 Shares subject to outstanding common stock options 7,680,341 7,257,460 4,805,562 7,680,341 7,257,460 47,540,446 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 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: Year Ended December 31, 2021 2020 2019 Segment revenues: Software $ 113,236 $ 92,530 $ 66,735 Drug discovery 24,695 15,565 18,808 Total segment revenues $ 137,931 $ 108,095 $ 85,543 Segment gross profit: Software $ 86,741 $ 74,527 $ 53,089 Drug discovery (21,121 ) (11,055 ) (3,996 ) Total segment gross profit 65,620 63,472 49,093 Unallocated: Research and development (90,904 ) (64,695 ) (39,404 ) Sales and marketing (22,150 ) (17,795 ) (21,364 ) General and administrative (64,009 ) (41,898 ) (27,040 ) (Loss) gain on equity investments (1,781 ) 4,108 943 Change in fair value 11,359 28,263 9,922 Interest income 1,057 2,253 1,878 Income tax (expense) benefit (411 ) (345 ) 291 Consolidated net loss $ (101,219 ) $ (26,637 ) $ (25,681 ) |
Schedule of Revenues by Geographic Area | The following table sets forth revenues Year Ended December 31, 2021 2020 2019 United States $ 90,398 $ 60,737 $ 47,622 Europe 27,810 24,370 17,504 Japan 8,565 14,558 14,367 Rest of World 11,158 8,430 6,050 $ 137,931 $ 108,095 $ 85,543 |
Description of Business - Addit
Description of Business - Additional Information (Details) - USD ($) | Aug. 17, 2020 | Feb. 10, 2020 | Feb. 09, 2020 | Dec. 31, 2020 | Dec. 31, 2021 |
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, Shares | 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 | ||||
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, Shares | 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) | 12 Months Ended | ||||
Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($)Customer | Mar. 31, 2021 | Jan. 01, 2021 | |
Significant Accounting Policies [Line Items] | |||||
Cash equivalents | $ 90,477,000 | $ 185,614,000 | |||
Interest costs capitalized | 0 | 0 | |||
Impairment of long-lived assets | 0 | 0 | $ 0 | ||
Royalty expense | 9,826,000 | 7,663,000 | 7,352,000 | ||
Commission expense | $ 1,829,000 | $ 1,362,000 | $ 754,000 | ||
Equity method investment, ownership percentage | 100.00% | ||||
Customer Concentration Risk | Accounts Receivable | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, number of customers | Customer | 3 | 2 | |||
Customer Concentration Risk | Accounts Receivable | Customer A | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 17.00% | 17.00% | |||
Customer Concentration Risk | Accounts Receivable | Customer B | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 15.00% | 14.00% | |||
Customer Concentration Risk | Accounts Receivable | Customer C | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Customer Concentration Risk | Revenue Benchmark | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, number of customers | Customer | 1 | 0 | 1 | ||
Customer Concentration Risk | Revenue Benchmark | Customer A | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 14.00% | 10.00% | 12.00% | ||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets | 3 years | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets | 7 years | ||||
ASU - 2020-01 | |||||
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 | true | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||||
Change in accounting principle, accounting standards update, immaterial effect | true | ||||
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 | ||||
ASU - 2021-08 | |||||
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, 2022 | ||||
Change in accounting principle, accounting standards update, immaterial effect | true |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Timing of Revenue Recognition (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Software Products and Services | Point in Time | |||
Disaggregation Of Revenue [Line Items] | |||
Timing of revenue recognition | 55.50% | 55.00% | 49.90% |
Software Products and Services | Over Time | |||
Disaggregation Of Revenue [Line Items] | |||
Timing of revenue recognition | 26.60% | 30.60% | 28.10% |
Drug Discovery | Point in Time | |||
Disaggregation Of Revenue [Line Items] | |||
Timing of revenue recognition | 3.30% | 6.70% | 8.60% |
Drug Discovery | Over Time | |||
Disaggregation Of Revenue [Line Items] | |||
Timing of revenue recognition | 14.60% | 7.70% | 13.40% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details 1) | Dec. 31, 2021 |
On Premise Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
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 ($)Program | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Deferred revenue, revenue recognized | $ 42,127,000 | $ 24,921,000 | ||||
Percentage of revenue expected to be recognized | 65.00% | |||||
Unsatisfied performance obligation | $ 26,694,000 | |||||
Agreement with Gates Ventures, LLC | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Software contribution revenue related to agreement cover period start date | Jun. 23, 2020 | |||||
Software contribution revenue related to agreement cover period end date | Jun. 22, 2023 | |||||
Deferred revenue | $ 0 | |||||
Agreement with Gates Ventures, LLC | First Anniversary | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Software contribution revenue recognition | $ 1,000,000 | $ 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 | 13,749,000 | 988,000 | ||||
Deferred revenue | 40,263,000 | 54,012,000 | ||||
Receivable from collaboration | $ 0 | |||||
Maximum | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Contract with customers, payment terms | 60 days | |||||
Maximum | Agreement with Gates Ventures, LLC | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Software contribution revenue recognition amount | $ 3,000,000 | |||||
Minimum | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Contract with customers, payment terms | 30 days | |||||
On Premise Software | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Revenue, practical expedient, financing component [true false] | true | |||||
Drug Discovery Services | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Milestone payment yet to be achieved | $ 2,250,000 | 250,000 | $ 1,500,000 | |||
Revenue recognized with milestones | 2,250,000 | $ 85,000 | $ 1,500,000 | |||
Drug Discovery Contribution | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Deferred revenue | $ 1,129,000 | |||||
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 | |||||
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | $ 137,931 | $ 108,095 | $ 85,543 |
On Premise Software | |||
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | 74,598 | 58,311 | 42,647 |
Hosted Software | |||
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | 11,076 | 9,192 | 7,418 |
Software Maintenance | |||
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | 17,294 | 14,465 | 11,643 |
Professional Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | 9,268 | 9,562 | 5,027 |
Revenue From Contract With Customer Before Software Contribution | |||
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | 112,236 | 91,530 | 66,735 |
Software Contribution | |||
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | 1,000 | 1,000 | |
Software Products and Services | |||
Disaggregation Of Revenue [Line Items] | |||
Total software revenue | $ 113,236 | $ 92,530 | $ 66,735 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Drug Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Total drug discovery revenue | $ 24,695 | $ 15,565 | $ 18,808 |
Drug Discovery Services Revenue from Contracts with Customers | |||
Disaggregation Of Revenue [Line Items] | |||
Total drug discovery revenue | 24,584 | $ 15,565 | $ 18,808 |
Drug Discovery Contribution | |||
Disaggregation Of Revenue [Line Items] | |||
Total drug discovery revenue | $ 111 |
Revenue Recognition - Schedul_4
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disaggregation Of Revenue [Line Items] | ||
Contract assets | $ 8,271 | $ 3,589 |
Deferred revenue, short-term: | ||
Deferred revenue | 55,368 | 45,403 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | 30,064 | 41,164 |
Software Products and Services | ||
Deferred revenue, short-term: | ||
Deferred revenue | 32,945 | 28,218 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | 3,938 | 1,976 |
Drug Discovery | ||
Deferred revenue, short-term: | ||
Deferred revenue | 22,423 | 17,185 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | $ 26,126 | $ 39,188 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Computers and equipment | $ 22,380 | $ 18,942 |
Less accumulated depreciation | (12,355) | (13,802) |
Property Plant And Equipment Net | 10,025 | 5,140 |
Computers and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Computers and equipment | 16,059 | 12,718 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Computers and equipment | 2,276 | 4,385 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Computers and equipment | $ 4,045 | $ 1,839 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 2,847 | $ 3,658 | $ 3,625 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 497,660 | $ 485,965 |
Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 39,561 | 45,570 |
Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 456,212 | 440,395 |
Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 1,887 | |
Marketable Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 456,212 | 440,395 |
Marketable Securities | Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 456,212 | 440,395 |
Equity Investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 41,448 | 45,570 |
Equity Investments | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 39,561 | $ 45,570 |
Equity Investments | Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 1,887 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 108 | |
Cash contributions | $ 2,000 | 2,869 |
Unrealized loss | (113) | $ (2,977) |
Ending balance | $ 1,887 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 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) | Nov. 30, 2021USD ($)SquareFoot | Nov. 01, 2021USD ($)SquareFoot | Dec. 31, 2021USD ($)OperatingLease |
Lessee Lease Description [Line Items] | |||
Operating lease expiration year | 2037 | ||
Operating lease, weighted average lease term | 15 years | ||
Number of new operating lease | OperatingLease | 2 | ||
Increase in right-of-use assets | $ 71,054,000 | ||
Increase in lease liabilities | 71,054,000 | ||
Lease costs | $ 0 | ||
Office Lease Agreement | |||
Lessee Lease Description [Line Items] | |||
Area leased | SquareFoot | 19,753 | 16,727 | |
Base rent per month | $ 135,000 | ||
Percentage of annual rental escalation | 3.00% | ||
Lease expiration period | 10 years | ||
Base rent per month from commencement to handover date | $ 20,000 | ||
Base rent per month from handover to termination date | $ 29,000 | ||
Lease expiration date | Jun. 30, 2023 |
Commitments And Contingencies_2
Commitments And Contingencies - Summary of Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating lease costs | $ 7,627 | $ 5,895 | $ 5,181 |
Cash paid for operating leases | $ 4,561 | $ 6,050 | $ 5,108 |
Commitments And Contingencies_3
Commitments And Contingencies - Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments And Contingencies Disclosure [Abstract] | ||
2022 | $ 2,087 | |
2023 | 8,809 | |
2024 | 9,632 | |
2025 | 9,241 | |
2026 | 8,758 | |
Thereafter | 93,656 | |
Total future minimum lease payments | 132,183 | |
Less: imputed interest | (52,314) | |
Present value of future minimum lease payments | 79,869 | |
Less: current portion of operating leases payments | (2,042) | $ (4,543) |
Lease liabilities, long-term | $ 77,827 | $ 7,221 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 583 | ||
State | $ 67 | $ 178 | (95) |
Foreign | 344 | 167 | (779) |
Current income tax expense (benefit) | 411 | 345 | (291) |
Deferred: | |||
Income Tax Expense (Benefit), Total | $ 411 | $ 345 | $ (291) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Loss Before Income Taxes by Tax Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (101,341) | $ (24,567) | $ (25,385) |
Foreign | 1,359 | 449 | 523 |
Loss before income taxes | $ (99,982) | $ (24,118) | $ (24,862) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Tax Expense Applicable Statutory Income Tax Rates to Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
State taxes, net of federal benefits | 4.90% | 14.20% | 4.20% |
Withholding tax | (2.30%) | ||
Section 162(m) limitation | (5.20%) | (12.80%) | |
Stock compensation | 12.40% | 68.50% | 0.20% |
Return-to-provision adjustments | (1.70%) | (1.30%) | 3.20% |
Research and development credit | 6.30% | 6.20% | 5.20% |
Tax contingencies, net of reversals | (0.70%) | (0.60%) | (0.50%) |
Change in valuation allowance | (37.20%) | (95.00%) | (31.30%) |
Other | (0.20%) | (1.60%) | (0.60%) |
Effective income tax rate | (0.40%) | (1.40%) | (0.90%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Income Tax Contingency [Line Items] | |
Change in valuation allowance | $ 37,149 |
Federal net operating loss carryforwards | 283,314 |
State net operating loss carryforwards | $ 148,130 |
Income tax examination, description | As of December 31, 2021, the Company’s statutes of limitations are open for all federal and state years tax returns filed after the years ended December 31, 2016 and 2015, respectively. Net operating loss and credit carryforwards for 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. |
Minimum | |
Income Tax Contingency [Line Items] | |
Operating loss carryforwards, expiration year | 2022 |
Maximum | |
Income Tax Contingency [Line Items] | |
Operating loss carryforwards, expiration year | 2041 |
Federal | |
Income Tax Contingency [Line Items] | |
NOL carryforwards, percentage of taxable income limitation on use | 80.00% |
Research and development tax credit carryforwards | $ 15,459 |
State | |
Income Tax Contingency [Line Items] | |
Research and development tax credit carryforwards | $ 977 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Income Tax Assets and Deferred Income Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | |||
Net operating loss carryforwards | $ 67,985 | $ 51,498 | $ 26,119 |
Accrued expenses | 10,309 | 7,918 | 6,164 |
Deferred Revenue | 10,632 | 394 | 500 |
Lease Liabilities | 18,773 | 2,165 | 433 |
Credits | 14,559 | 8,752 | 7,468 |
Gross deferred tax assets | 122,258 | 70,727 | 40,684 |
Less valuation allowance | (95,304) | (58,155) | (35,251) |
Net deferred tax assets | 26,954 | 12,572 | 5,433 |
Deferred income tax liabilities: | |||
Unrealized gain on equity investments | (8,545) | (10,185) | (1,984) |
Prepaid expenses | (969) | (889) | (441) |
Depreciation and amortization | $ (17,440) | $ (1,498) | $ (3,008) |
Income Taxes - Schedule of Re_2
Income Taxes - Schedule of Reconciliation of Total Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance, January 1 | $ 1,046 | $ 902 | $ 781 |
Additions for tax positions taken in prior years | 282 | 25 | 24 |
Reductions for tax positions taken in prior years | (20) | (16) | (12) |
Additions for tax positions related to the current year | 394 | 135 | 109 |
Balance, December 31 | $ 1,702 | $ 1,046 | $ 902 |
Stockholders' Equity (Deficit)
Stockholders' Equity (Deficit) - Additional Information (Details) | 12 Months Ended | |
Dec. 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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 | 2,283,037 | ||
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 | ||
Issuances of common stock upon stock option exercise, Shares | 1,120,981 | 1,398,177 | 214,845 |
Issuances of common stock upon stock option exercise | $ 7,927 | $ 4,183 | $ 549 |
Weighted average per share grant date fair value of options granted | $ 45.07 | $ 9.55 | $ 2.93 |
Intrinsic value of options exercised | $ 71,308 | $ 87,946 | $ 546 |
Unrecognized compensation cost related to unvested stock options granted | $ 78,355 | ||
Expected to be recognized over a weighted average period | 2 years 10 months 13 days | ||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ 19,080 | $ 3,153 | $ 1,734 |
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% | ||
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 | ||
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 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Weighted Average Valuation Assumptions Used for Options (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation assumptions | |||
Expected volatility | 59.00% | 60.00% | 57.00% |
Expected term (years) | 4 years 7 months 28 days | 4 years 5 months 26 days | 6 years 18 days |
Risk-free interest rate | 0.71% | 1.46% | 2.33% |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Classification of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 26,490 | $ 10,545 | $ 2,193 |
Cost of Sales | |||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 3,858 | 1,384 | 376 |
Research and Development | |||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 7,440 | 3,050 | 460 |
Sales and Marketing | |||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 1,281 | 516 | 311 |
General and Administrative | |||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 13,911 | $ 5,595 | $ 1,046 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of shares | |||
Beginning, January 1, 2021 | 7,257,460 | ||
Granted | 1,696,327 | ||
Exercised | (1,120,981) | (1,398,177) | (214,845) |
Forfeited | (149,346) | ||
Expired | (3,119) | ||
Balance, December 31, 2021 | 7,680,341 | 7,257,460 | |
Exercisable, December 31, 2021 | 3,473,716 | ||
Weighted average exercise price | |||
Beginning, January 1, 2021 | $ 12.14 | ||
Granted | 93.13 | ||
Exercised | 7 | ||
Forfeited | 41.47 | ||
Expired | 1.70 | ||
Balance, December 31, 2021 | 30.19 | $ 12.14 | |
Exercisable, December 31, 2021 | $ 10.83 | ||
Weighted average remaining contractual term (years) | |||
Balance, December 31, 2021 | 7 years 8 months 1 day | ||
Exercisable, December 31, 2021 | 6 years 9 months | ||
Aggregate intrinsic value | |||
Balance, December 31, 2021 | $ 35,584 | ||
Exercisable, December 31, 2021 | $ 83,306 |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss attributable to Schrödinger common and limited common stockholders | $ (100,393) | $ (24,463) | $ (24,571) |
Denominator: | |||
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: | 70,594,950 | 60,024,658 | 6,004,500 |
Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: | $ (1.42) | $ (0.41) | $ (4.09) |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 7,680,341 | 7,257,460 | 47,540,446 |
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 | 7,680,341 | 7,257,460 | 4,805,562 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 42,734,884 |
Equity Investments - Additional
Equity Investments - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2021 | May 31, 2021 | Jan. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity investments | $ 43,167,000 | $ 45,664,000 | ||||
Equity investments gains (losses) | (1,781,000) | 4,108,000 | $ 943,000 | |||
Distribution from equity investment | 375,000 | 4,582,000 | 943,000 | |||
Proceeds from sale of equity investments | 15,735,000 | |||||
Cash payments to purchase of shares | 3,700,000 | 2,869,000 | ||||
Nimbus Therapeutics, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity investments | 0 | 0 | ||||
Equity investments gains (losses) | 0 | (2,977,000) | (4,180,000) | |||
Morphic Holding, Inc. | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity investments | 39,561,000 | 28,013,000 | ||||
Equity investments gains (losses) | 11,548,000 | 13,685,000 | 14,102,000 | |||
Petra Pharma Corporation | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distribution from equity investment | $ 4,582,000 | |||||
Escrow payments receivable | 361,000 | |||||
Escrow payments received | $ 335,000 | |||||
Ravenna Therapeutics | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity investments gains (losses) | $ (75,000) | 0 | 0 | |||
Common shares received in connection with merger | 2,676,191 | |||||
Carrying value of non-marketable equity securities | $ 19,000 | 94,000 | ||||
Relay Therapeutics, Inc | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity investments gains (losses) | 17,556,000 | $ 0 | ||||
Proceeds from sale of equity investments | $ 15,735,000 | |||||
Loss on sale of equity method investments | 1,821,000 | |||||
Ajax Therapeutics, Inc | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity investments | 1,700,000 | 0 | ||||
Ajax Therapeutics, Inc | Series B Preferred Stock | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of preferred shares purchased | 631,377 | |||||
Cash payments to purchase of shares | $ 1,700,000 | |||||
ShouTi | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity investments | 1,887,000 | $ 0 | ||||
Equity investments gains (losses) | $ (113,000) | |||||
ShouTi | Series B Preferred Stock | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of preferred shares purchased | 494,035 | |||||
Cash payments to purchase of shares | $ 2,000,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |||
Plan name | 401(k) employee savings plan to its U.S.‑based employees | ||
Discretionary matching contributions | 100.00% | ||
Discretionary matching contributed by employees | 4.00% | ||
Matching contributions | $ 2,592 | $ 1,748 | $ 1,492 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||
Revenue recognized | $ 137,931,000 | $ 108,095,000 | $ 85,543,000 | |||
Drug discovery revenue recognized | 24,695,000 | 15,565,000 | 18,808,000 | |||
Agreement with Gates Ventures, LLC | ||||||
Related Party Transaction [Line Items] | ||||||
Net receivables (payables) | $ 0 | $ 0 | 0 | |||
Agreement with Gates Ventures, LLC | First Anniversary | ||||||
Related Party Transaction [Line Items] | ||||||
Contributions Revenue Recognized | $ 1,000,000 | $ 1,000,000 | ||||
Agreement with Gates Ventures, LLC | Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of voting securities | 5.00% | 5.00% | ||||
Drug Discovery Contribution | ||||||
Related Party Transaction [Line Items] | ||||||
Drug discovery revenue recognized | $ 111,000 | |||||
D. E. Shaw Entities | ||||||
Related Party Transaction [Line Items] | ||||||
Purchase of services and license technology from related party | 7,940,000 | 7,281,000 | 5,190,000 | |||
Reimbursements received from related parties for sales of products and services provided | 318,000 | 226,000 | 195,000 | |||
Net receivables (payables) | $ (2,637,000) | (2,637,000) | (3,464,000) | |||
Member of Board of Directors | ||||||
Related Party Transaction [Line Items] | ||||||
Payment of consulting fees | 390,000 | 364,000 | 361,000 | |||
BMGFT | ||||||
Related Party Transaction [Line Items] | ||||||
Net receivables (payables) | 165,000 | 165,000 | 543,000 | |||
Revenue recognized | 1,160,000 | $ 2,094,000 | $ 1,065,000 | |||
BMGFT | Drug Discovery Contribution | ||||||
Related Party Transaction [Line Items] | ||||||
Net receivables (payables) | 0 | 0 | ||||
Drug discovery revenue recognized | $ 111,000 | |||||
ShouTi | ||||||
Related Party Transaction [Line Items] | ||||||
Software sales transactions amount | 650,000 | |||||
Revenue from related parties | $ 129,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment revenues: | |||
Total revenues | $ 137,931 | $ 108,095 | $ 85,543 |
Segment gross profit: | |||
Total segment gross profit | 65,620 | 63,472 | 49,093 |
Unallocated: | |||
Research and development | (90,904) | (64,695) | (39,404) |
Sales and marketing | (22,150) | (17,795) | (21,364) |
General and administrative | (64,009) | (41,898) | (27,040) |
(Loss) gain on equity investments | (1,781) | 4,108 | 943 |
Change in fair value | 11,359 | 28,263 | 9,922 |
Interest income | 1,057 | 2,253 | 1,878 |
Income tax (expense) benefit | (411) | (345) | 291 |
Net loss | (101,219) | (26,637) | (25,681) |
Operating Segments | Software Segment | |||
Segment revenues: | |||
Total revenues | 113,236 | 92,530 | 66,735 |
Segment gross profit: | |||
Total segment gross profit | 86,741 | 74,527 | 53,089 |
Operating Segments | Drug Discovery Segment | |||
Segment revenues: | |||
Total revenues | 24,695 | 15,565 | 18,808 |
Segment gross profit: | |||
Total segment gross profit | $ (21,121) | $ (11,055) | $ (3,996) |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 137,931 | $ 108,095 | $ 85,543 |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 90,398 | 60,737 | 47,622 |
Europe | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 27,810 | 24,370 | 17,504 |
Japan | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 8,565 | 14,558 | 14,367 |
Rest of World | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 11,158 | $ 8,430 | $ 6,050 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event - XTAL BioStructures, Inc $ in Millions | Jan. 14, 2022USD ($)shares |
Subsequent Event [Line Items] | |
Number of shares acquired | shares | 117,840 |
Payments to acquire businesses, et of cash acquired | $ 6.5 |
Purchase price including upfront purchase price, adjustment for working capital, less cash acquired | $ 6 |