Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 28, 2022 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Jun. 30, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | Schrodinger, Inc. | |
Entity Central Index Key | 0001490978 | |
Entity Tax Identification Number | 95-4284541 | |
Entity File Number | 001-39206 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | 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 $0.01 per share | |
Trading Symbol | SDGR | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 62,028,442 | |
Limited Common Stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,164,193 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 127,319 | $ 120,267 |
Restricted cash | 3,500 | 3,000 |
Marketable securities | 382,246 | 456,212 |
Accounts receivable, net of allowance for doubtful accounts of $124 and $108 | 18,767 | 31,744 |
Unbilled and other receivables, net for allowance for unbilled receivables of $40 and $30 | 12,978 | 8,807 |
Prepaid expenses | 12,062 | 5,030 |
Total current assets | 556,872 | 625,060 |
Property and equipment, net | 11,524 | 10,025 |
Equity investments | 21,903 | 43,167 |
Goodwill | 4,791 | |
Intangible assets, net | 853 | |
Right of use assets | 90,133 | 75,384 |
Other assets | 1,804 | 2,851 |
Total assets | 687,880 | 756,487 |
Current liabilities: | ||
Accounts payable | 5,263 | 8,079 |
Accrued payroll, taxes, and benefits | 16,533 | 18,405 |
Deferred revenue | 47,440 | 55,368 |
Lease liabilities | 7,180 | 2,042 |
Other accrued liabilities | 9,174 | 7,317 |
Total current liabilities | 85,590 | 91,211 |
Deferred revenue, long-term | 20,105 | 30,064 |
Lease liabilities, long-term | 88,112 | 77,827 |
Other liabilities, long-term | 1,000 | 300 |
Total liabilities | 194,807 | 199,402 |
Commitments and contingencies (Note 6) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at June 30, 2022 and December 31, 2021 | ||
Additional paid-in capital | 807,827 | 786,964 |
Accumulated deficit | (312,078) | (229,952) |
Accumulated other comprehensive loss | (3,403) | (651) |
Total stockholders’ equity of Schrödinger stockholders | 493,058 | 557,071 |
Noncontrolling interest | 15 | 14 |
Total stockholders’ equity | 493,073 | 557,085 |
Total liabilities and stockholders’ equity | 687,880 | 756,487 |
Common Stock | ||
Stockholders' equity: | ||
Common stock | 620 | 618 |
Limited Common Stock | ||
Stockholders' equity: | ||
Common stock | $ 92 | $ 92 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts receivable | $ 124 | $ 108 |
Allowance for unbilled receivable | $ 40 | $ 30 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 62,027,061 | 61,834,515 |
Common stock, shares outstanding | 62,027,061 | 61,834,515 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Limited Common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 9,164,193 | 9,164,193 |
Common stock, shares outstanding | 9,164,193 | 9,164,193 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Total revenues | $ 38,469 | $ 29,784 | $ 87,132 | $ 61,911 |
Cost of revenues: | ||||
Total cost of revenues | 21,335 | 17,804 | 42,015 | 33,767 |
Gross profit | 17,134 | 11,980 | 45,117 | 28,144 |
Operating expenses: | ||||
Research and development | 31,123 | 21,092 | 58,945 | 42,540 |
Sales and marketing | 7,428 | 5,380 | 14,099 | 10,619 |
General and administrative | 22,056 | 15,850 | 44,189 | 29,239 |
Total operating expenses | 60,607 | 42,322 | 117,233 | 82,398 |
Loss from operations | (43,473) | (30,342) | (72,116) | (54,254) |
Other income (expense): | ||||
Gain (loss) on equity investments | 11,828 | 11,828 | (1,781) | |
Change in fair value | (15,700) | (4,918) | (21,864) | 19,906 |
Other (expense) income | (296) | 357 | 32 | 777 |
Total other (expense) income | (4,168) | (4,561) | (10,004) | 18,902 |
Loss before income taxes | (47,641) | (34,903) | (82,120) | (35,352) |
Income tax expense | 33 | 67 | 5 | 141 |
Net loss | (47,674) | (34,970) | (82,125) | (35,493) |
Net income (loss) attributable to noncontrolling interest | 12 | (326) | 1 | (820) |
Net loss attributable to Schrödinger common and limited common stockholders | $ (47,686) | $ (34,644) | $ (82,126) | $ (34,673) |
Net loss per share attributable to Schrödinger common and limited common stockholders, basic: | $ (0.67) | $ (0.49) | $ (1.15) | $ (0.49) |
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic: | 71,161,892 | 70,582,062 | 71,106,470 | 70,328,254 |
Net loss per share attributable to Schrödinger common and limited common stockholders, diluted: | $ (0.67) | $ (0.49) | $ (1.15) | $ (0.49) |
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, diluted: | 71,161,892 | 70,582,062 | 71,106,470 | 70,328,254 |
Software Products and Services | ||||
Revenues: | ||||
Total revenues | $ 30,011 | $ 24,052 | $ 63,092 | $ 50,392 |
Cost of revenues: | ||||
Total cost of revenues | 7,101 | 5,641 | 14,612 | 11,547 |
Drug Discovery | ||||
Revenues: | ||||
Total revenues | 8,458 | 5,732 | 24,040 | 11,519 |
Cost of revenues: | ||||
Total cost of revenues | $ 14,234 | $ 12,163 | $ 27,403 | $ 22,220 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss attributable to Schrödinger common and limited common stockholders | $ (47,686) | $ (34,644) | $ (82,126) | $ (34,673) |
Changes in market value of investments, net of tax: | ||||
Unrealized loss on marketable securities | (746) | (1) | (2,752) | (241) |
Comprehensive loss | $ (48,432) | $ (34,645) | $ (84,878) | $ (34,914) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Limited Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Non Controlling Interest |
Beginning Balance at Dec. 31, 2020 | $ 624,019 | $ 607 | $ 92 | $ 752,558 | $ (129,559) | $ 317 | $ 4 |
Beginning Balance, Shares at Dec. 31, 2020 | 60,713,534 | 9,164,193 | |||||
Change in unrealized loss on marketable securities | (240) | (240) | |||||
Issuances of common stock upon stock option exercise | 3,656 | $ 6 | 3,650 | ||||
Issuances of common stock upon stock option exercise, Shares | 587,141 | ||||||
Stock-based compensation | 4,366 | 4,366 | |||||
Contributions by non-controlling interest | 498 | 498 | |||||
Net loss | (523) | (29) | (494) | ||||
Ending Balance at Mar. 31, 2021 | 631,776 | $ 613 | $ 92 | 760,574 | (129,588) | 77 | 8 |
Ending Balance, Shares at Mar. 31, 2021 | 61,300,675 | 9,164,193 | |||||
Beginning Balance at Dec. 31, 2020 | 624,019 | $ 607 | $ 92 | 752,558 | (129,559) | 317 | 4 |
Beginning Balance, Shares at Dec. 31, 2020 | 60,713,534 | 9,164,193 | |||||
Change in unrealized loss on marketable securities | (241) | ||||||
Net loss | (35,493) | ||||||
Ending Balance at Jun. 30, 2021 | 605,771 | $ 616 | $ 92 | 769,199 | (164,232) | 76 | 20 |
Ending Balance, Shares at Jun. 30, 2021 | 61,553,610 | 9,164,193 | |||||
Beginning Balance at Mar. 31, 2021 | 631,776 | $ 613 | $ 92 | 760,574 | (129,588) | 77 | 8 |
Beginning Balance, Shares at Mar. 31, 2021 | 61,300,675 | 9,164,193 | |||||
Change in unrealized loss on marketable securities | (1) | (1) | |||||
Issuances of common stock upon stock option exercise | 1,612 | $ 3 | 1,609 | ||||
Issuances of common stock upon stock option exercise, Shares | 252,935 | ||||||
Stock-based compensation | 7,016 | 7,016 | |||||
Contributions by non-controlling interest | 338 | 338 | |||||
Net loss | (34,970) | (34,644) | (326) | ||||
Ending Balance at Jun. 30, 2021 | 605,771 | $ 616 | $ 92 | 769,199 | (164,232) | 76 | 20 |
Ending Balance, Shares at Jun. 30, 2021 | 61,553,610 | 9,164,193 | |||||
Beginning Balance at Dec. 31, 2021 | 557,085 | $ 618 | $ 92 | 786,964 | (229,952) | (651) | 14 |
Beginning Balance, Shares at Dec. 31, 2021 | 61,834,515 | 9,164,193 | |||||
Change in unrealized loss on marketable securities | (2,006) | (2,006) | |||||
Issuances of common stock upon stock option exercise | 908 | $ 2 | 906 | ||||
Issuances of common stock upon stock option exercise, Shares | 137,885 | ||||||
Stock-based compensation | 9,134 | 9,134 | |||||
Net loss | (34,451) | (34,440) | (11) | ||||
Ending Balance at Mar. 31, 2022 | 530,670 | $ 620 | $ 92 | 797,004 | (264,392) | (2,657) | 3 |
Ending Balance, Shares at Mar. 31, 2022 | 61,972,400 | 9,164,193 | |||||
Beginning Balance at Dec. 31, 2021 | 557,085 | $ 618 | $ 92 | 786,964 | (229,952) | (651) | 14 |
Beginning Balance, Shares at Dec. 31, 2021 | 61,834,515 | 9,164,193 | |||||
Change in unrealized loss on marketable securities | (2,752) | ||||||
Net loss | (82,125) | ||||||
Ending Balance at Jun. 30, 2022 | 493,073 | $ 620 | $ 92 | 807,827 | (312,078) | (3,403) | 15 |
Ending Balance, Shares at Jun. 30, 2022 | 62,027,061 | 9,164,193 | |||||
Beginning Balance at Mar. 31, 2022 | 530,670 | $ 620 | $ 92 | 797,004 | (264,392) | (2,657) | 3 |
Beginning Balance, Shares at Mar. 31, 2022 | 61,972,400 | 9,164,193 | |||||
Change in unrealized loss on marketable securities | (746) | (746) | |||||
Issuances of common stock upon stock option exercise | 396 | 396 | |||||
Issuances of common stock upon stock option exercise, Shares | 54,661 | ||||||
Stock-based compensation | 10,427 | 10,427 | |||||
Net loss | (47,674) | (47,686) | 12 | ||||
Ending Balance at Jun. 30, 2022 | $ 493,073 | $ 620 | $ 92 | $ 807,827 | $ (312,078) | $ (3,403) | $ 15 |
Ending Balance, Shares at Jun. 30, 2022 | 62,027,061 | 9,164,193 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (82,125) | $ (35,493) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
(Gain) loss on equity investments | (11,828) | 1,781 |
Noncash revenue from equity investments | (11) | |
Fair value adjustments | 21,864 | (19,906) |
Depreciation and amortization | 2,095 | 1,614 |
Stock-based compensation | 19,561 | 11,382 |
Noncash research and development expenses | 811 | |
Noncash investment amortization | 1,719 | 2,343 |
(Gain) loss on disposal of property and equipment | (4) | 19 |
Gain on lease termination | (2) | |
Decrease (increase) in assets, net of acquisition: | ||
Accounts receivable, net | 13,489 | 10,064 |
Unbilled and other receivables | (4,095) | (925) |
Reduction in the carrying amount of right of use assets | 3,140 | 2,663 |
Prepaid expenses and other assets | (8,719) | (3,914) |
(Decrease) increase in liabilities, net of acquisition: | ||
Accounts payable | (2,938) | (2,489) |
Accrued payroll, taxes, and benefits | (1,872) | (1,460) |
Deferred revenue | (17,887) | (8,030) |
Lease liabilities | 364 | (2,816) |
Other accrued liabilities | 2,860 | 4,074 |
Net cash used in operating activities | (64,378) | (40,293) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (3,670) | (3,427) |
Purchases of equity investments | (600) | (1,700) |
Distribution from equity investment | 11,828 | 375 |
Proceeds from sale of equity investments | 15,735 | |
Acquisition, net of acquired cash | (6,427) | |
Purchases of marketable securities | (111,215) | (222,725) |
Proceeds from maturity of marketable securities | 180,710 | 164,645 |
Net cash provided by (used in) investing activities | 70,626 | (47,097) |
Cash flows from financing activities: | ||
Issuances of common stock upon stock option exercises | 1,304 | 5,268 |
Contribution by noncontrolling interest | 25 | |
Net cash provided by financing activities | 1,304 | 5,293 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 7,552 | (82,097) |
Cash and cash equivalents and restricted cash, beginning of period | 123,267 | 202,796 |
Cash and cash equivalents and restricted cash, end of period | 130,819 | 120,699 |
Supplemental disclosure of cash flow and noncash information | ||
Cash paid for income taxes | 171 | 224 |
Supplemental disclosure of non-cash investing and financing activities | ||
Purchases of property and equipment in accounts payable | 80 | $ 51 |
Acquisition of right to use assets, contingency resolution | 1,513 | |
Acquisition of right of use assets | 14,767 | |
Acquisition of lease liabilities | $ 14,767 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
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 and at a lower cost, 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. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | (2) (a) In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2021-08, Business Combinations Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Revenue from Contracts with Customers (b ) The accompanying unaudited condensed consolidated financial statements and the related interim disclosures have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC’s rules and regulations for interim reporting. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the assumptions used in the allocation of revenue, estimates regarding the progress of completing performance obligations under collaboration agreements, and the valuation of stock-based compensation. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. (c ) The Company’s unaudited condensed consolidated financial statements include the accounts of Schrödinger, Inc., its wholly owned subsidiaries, and its variable interest entity. All intercompany balances and transactions have been eliminated in consolidation. The functional currency for foreign entities is the United States dollar. The Company accounts for investments over which it has significant influence, but not a controlling financial interest, using the equity method. (d) Restricted cash consists of letters of credit held with the Company’s financial institution related to facility leases and is classified as current in the Company’s balance sheets based on the maturity of the underlying letters of credit. ( e ) Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables. The Company does not require customers to provide collateral to support accounts receivable. If deemed necessary, credit reviews of significant new customers may be performed prior to extending credit. The determination of a customer’s ability to pay requires judgment, and failure to collect from a customer can adversely affect revenue, cash flows, and results of operations. As of June 30, 2022, two customers accounted for 19% and 19% of total accounts receivable, respectively. As of December 31, 2021, three customers accounted for 17%, 15%, and 11% of total accounts receivable, respectively. One customer accounted for 16% of total revenues during the three months ended June 30, 2022, and two customers accounted for 12% and 12% of total revenue during the six months ended June 30, 2022, respectively. One customer accounted for 13% and 11% of total revenues during the three and six months ended June 30, 2021, respectively. ( f ) The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to become more likely than not that a portion of the deferred tax assets will not be realized. Accordingly, the Company currently maintains a full valuation allowance against existing net deferred tax assets. The Company recognizes the effect of income tax positions only if such positions are deemed “more likely than not” capable of being sustained. Interest and penalties accrued on unrecognized tax benefits are included within income tax expense in the unaudited condensed consolidated financial statements. (g ) In the normal course of business, the Company has entered, and may continue to enter, into collaboration agreements with 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. 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 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. (h ) The outstanding equity of the Company consists of common stock and limited common stock. Under the Company’s certificate of incorporation, the rights of the holders of common stock and limited common stock are identical, except with respect to voting and conversion. Holders of limited common stock are precluded from voting such shares in any election of directors or on the removal of directors. Limited common stock may be converted into common stock at any time at the option of the stockholder. Undistributed earnings allocated to the participating securities are subtracted from net income in determining net (loss) 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 | 6 Months Ended |
Jun. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | ( 3) Revenue Recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for promised goods or services. The Company’s performance obligations are satisfied either over time or at a point in time. The following table illustrates the timing of the Company’s revenue recognition: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Software products and services – point in time 45.8 % 51.9 % 45.2 % 53.0 % Software products and services – over time 32.2 28.8 27.2 28.4 Drug Discovery – point in time 3.5 4.3 12.2 2.1 Drug Discovery – over time 18.5 15.0 15.4 16.5 (a) Software Products and Services The Company enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative standalone selling price (“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. 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 related to our on-premise software licenses. 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 setup, installation or assisting customers with modeling and structural biology services, where the Company uses its software to perform tasks such as virtual screening and homology modeling on behalf of the Company’s customers, 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 G ates Ventures, LLC. The agreement is an unconditional non-exchange contribution without restrictions . 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 recognized revenue of $1,000 upon entry to the agreement and $1,000 and $1,000 upon the first and second anniversary of the agreement. As of June 30, 2022, the Company had no deferred revenue balance related to this agreement. As of June 30, 2022, the Company had $1,000 in accounts receivable related to this agreement. The following table presents the revenue recognized from the sources of software products and services revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 On-premise software $ 16,595 $ 14,452 $ 38,281 $ 31,807 Hosted software 3,596 2,704 6,851 5,304 Software maintenance 4,952 4,176 9,678 8,281 Professional services 3,868 1,720 7,282 4,000 Revenue from contracts with customers 29,011 23,052 62,092 49,392 Software contribution 1,000 1,000 1,000 1,000 Total software revenue $ 30,011 $ 24,052 $ 63,092 $ 50,392 ( b ) Drug Discovery Drug discovery services. Revenue from drug discovery and collaboration services contracts is recognized either over time, typically by using costs incurred or hours expended to measure progress, or at a point in time based on the achievement of milestones. Payments for services are generally due upon achieving milestones stated in a contract, upfront at the start of a contract, or upon consumption of resources. Services may at times include variable consideration and milestone payments. The Company has estimated the amount of consideration that is variable using the most likely amount method. The Company evaluates milestones on a case-by-case basis, including whether there are factors outside the Company’s control that could result in a significant reversal of revenue, and the likelihood and magnitude of a potential reversal. If achievement of a milestone is not considered probable, the Company constrains (reduces) variable consideration to exclude the milestone payment until it is probable to be achieved. As of June 30, 2022, milestones not yet achieved that were determined to be probable of achievement totaled $1,350, of which $1,350 was recognized as revenue for the three months ended June 30, 2022. As of June 30, 2021, milestones not yet achieved that were determined to be probable of achievement totaled zero, of which zero was recognized as revenue for the three months ended June 30, 2021. 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 June 30, 2022, there was a $2,887 deferred revenue balance related to this agreement. The following table presents the revenue recognized from the sources of drug discovery revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Drug discovery services revenue from contracts with customers $ 8,019 $ 5,732 $ 23,259 $ 11,519 Drug discovery contribution 439 — 781 — Total drug discovery revenue $ 8,458 $ 5,732 $ 24,040 $ 11,519 ( 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 we re 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 the Company . 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 SSP. The Company determined the estimated SSP at contract inception of the research activities based on internal estimates of the costs to perform the services, inclusive of a reasonable profit margin. Significant inputs used to determine the total costs to perform the research activities included the length of time required, the internal hours expected to be incurred on the services and the number and costs of various studies that will be performed to complete the research plan. Revenue associated with the research activities is recognized on a proportional performance basis over the period of service for research activities, using input-based measurements of total costs of research incurred to estimate the proportion performed. Progress towards completion is remeasured at the end of each reporting period. During the three and six months ended June 30, 2022 and 2021 the Company recognized $5,404, $9,404, $3,277 and $5,660, respectively, associated with the agreement based on the research activities performed. As of June 30, 2022, there was $30,859 of deferred revenue related to the agreement, which was classified as either current or non-current in the condensed consolidated balance sheet based on the period the services are expected to be performed. ( 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 relative 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 condensed consolidated balance sheets. The Company records a contract asset when revenue is recognized prior to invoicing. A deferred revenue liability is recorded when revenue is expected to be recognized subsequent to invoicing. For the Company’s time-based software agreements, customers are generally invoiced at the beginning of the arrangement for the entire term, though when the term spans multiple years the customers may be invoiced on an annual basis. For certain drug discovery agreements where the milestones are deemed probable 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 condensed consolidated balance sheets and are transferred to receivables when the Company invoices the customer. Contract balances were as follows: As of June 30, As of December 31, 2022 2021 Contract assets $ 12,015 $ 8,271 Deferred revenue, short-term: Software products and services 24,815 32,945 Drug discovery 22,625 22,423 Deferred revenue, long-term: Software products and services 3,641 3,938 Drug discovery 16,464 26,126 For the three and six months ended June 30, 2022 and 2021, the Company recognized $22,303, $40,599, $14,780, $27,676 of revenue, respectively, that was included in deferred revenue at the end of the respective preceding periods. All other deferred revenue activity is due to the timing of invoices in relation to the timing of revenue, as described above. The Company expects to recognize as revenue approximately 70% of its June 30, 2022 deferred revenue balance in the next 12 months and the remainder thereafter. Additionally, contracted but unsatisfied performance obligations that had not yet been billed to the customer or included in deferred revenue were $24,617 as of June 30, 2022. 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. |
Business Acquisition
Business Acquisition | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Business Acquisition | (4) Business Acquisition On January 14, 2022, the Company used cash on hand to acquire all outstanding shares of XTAL BioStructures, Inc. (“XTAL”), a company that provides structural biology services, including biophysical methods, protein production and purification, and X-ray crystallography. The transaction qualified as a business combination for accounting purposes, which involves application of the acquisition method described in ASC Topic 805 Business Combinations The following table summarizes the fair values of the assets acquired and liabilities assumed by the Company as of the January 14, 2022 acquisition date. The business combination accounting under Topic 805 was finalized for this acquisition during the three months ended June 30, 2022, with no changes to the provisional amounts disclosed for the three months ended March 31, 2022. The Company has elected to use both practical expedients provided by ASU No. 2021-08 for the valuation of contract assets and contract liabilities from contracts with customers, with no material impact to the unaudited condensed consolidated financial statements. Cash $ 1,002 Accounts receivable 588 Other current assets 95 Property, plant and equipment 297 Intangible assets 1,100 Goodwill 4,791 Total assets acquired 7,873 Current liabilities 209 Deferred tax liability 235 Total liabilities assumed 444 Net assets acquired $ 7,429 The following table summarizes the purchase price allocation to the identifiable intangible assets and their estimated useful lives as of the January 14, 2022 acquisition date: Amount Useful Life (years) Backlog $ 270 1 Customer relationships 710 5 Tradename/Trademark 120 1 $ 1,100 The results of operations for XTAL beginning as of the January 14, 2022 acquisition date are included in these unaudited condensed consolidated financial statements. For the three months ended March 31, 2022, the amount of revenues and net income of XTAL were not material to the unaudited condensed consolidated financial statements taken as a whole. Because the pro forma results of operations of the Company for the periods presented in this report would not be materially different as a result of the acquisition, such information is not presented. The costs incurred to acquire XTAL were not material and have been fully expensed and are included in general and administrative expenses in the unaudited condensed consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021 . The following table presents information about the Company’s assets and liabilities measured at fair value as of June 30, 2022 : Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents and restricted cash $ 130,819 — — 130,819 Marketable securities — 382,246 — 382,246 Equity investments 18,119 — 2,065 20,184 Total $ 148,938 $ 382,246 $ 2,065 $ 533,249 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: Cash and cash equivalents and restricted cash $ 123,267 $ — $ — $ 123,267 Marketable securities — 456,212 — 456,212 Equity investments 39,561 — 1,887 41,448 Total $ 162,828 $ 456,212 $ 1,887 $ 620,927 Fair value of the Company’s investments in Nimbus Therapeutics, LLC (“Nimbus”), Structure Therapeutics Inc., formerly known as ShouTi Inc., (“Structure Therapeutics”), and Eonix, LLC (“Eonix”), 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’, Structure Therapeutics’, and Eonix’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, 2020 $ — Cash contributions 2,000 Unrealized loss (113 ) As of December 31, 2021 1,887 Unrealized loss (128 ) As of March 31, 2022 1,759 Cash contributions 600 Unrealized loss (294 ) As of June 30, 2022 $ 2,065 Unrealized gains and losses arising from changes in fair value of the Company’s equity investments are classified within change in fair value in the condensed consolidated statements of operations. During the six months ended June 30, 2022 and the year ended December 31, 2021 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 | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, the remaining weighted average lease term was 14 years. During the three months ended June 30, 2022, the accounting commencement began for the Cambridge lease, which increased the right-of-use (“ROU”) assets and lease liabilities by $13,621. ROU assets and lease liabilities were equal as no lease costs or incentives were associated with acquiring the leases. The Company received a lease termination fee of $295 for the early termination of its San Diego lease on May 30, 2022. On May 19, 2022, the Company entered into an amendment to its New York office lease agreement for 27,198 additional square feet of office space located at 1540 Broadway, New York, New York. Under the terms of the agreement, as amended, subject to specified exceptions, including an approximately 15-month rent abatement period, the Company is obligated to pay an initial base rent of approximately (i) $159 per month following the rent abatement period through December 31, 2027, (ii) $172 per month from January 1, 2028 through December 31, 2032, and (iii) $186 per month from January 1, 2033 through December 31, 2037. The Company estimates that the lease commencement date will occur during the three months ending December 31, 2022 and continue through December 31, 2037. On March 8, 2022, the Company entered into an office lease agreement for 15,045 square feet of office space located at 9868 Scranton Road, San Diego, California. Under the terms of the agreement, the Company is obligated to pay base rent of approximately $60 per month with a 3% annual rental escalation each year thereafter. The Company estimates that the lease commencement date will occur during the three months ending March 31, 2023 and continue to the end of the lease, which is eight years after commencement. Variable and short-term lease costs were immaterial for the six months ended June 30, 2022. Additional details of the Company’s operating leases are presented in the following table: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease costs $ 2,830 $ 1,417 $ 5,290 $ 2,887 Cash paid for operating leases 752 1,518 1,301 2,914 Maturities of operating lease liabilities as of June 30, 2022 under noncancelable operating leases were as follows: Year ending December 31: Remainder of 2022 $ 2,052 2023 10,590 2024 11,292 2025 11,016 2026 10,588 Thereafter 104,525 Total future minimum lease payments 150,063 Less: imputed interest (54,771 ) Present value of future minimum lease payments 95,292 Less: current portion of operating leases payments (7,180 ) Lease liabilities, long-term $ 88,112 ( b ) From time to time, the Company may become involved in routine litigation arising in the ordinary course of business. While the results of such litigation cannot be predicted with certainty, management believes that the final outcome of such matters is not likely to have a material adverse effect on the Company’s financial position or results of operations or cash flows. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | ( 7 ) Income Taxes The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period. For the three and six months ended June 30, 2022 and 2021, the Company’s income tax expense was $33, $5, $67 and $141, respectively. For the three and six months ended June 30, 2022, the difference between the effective rate and the statutory rate was primarily attributed to the change in the valuation allowance against net deferred tax assets. The Company recognizes the effect of income tax positions only if those positions are “more likely than not” capable of being sustained. As of June 30, 2022, the Company had $2,095 of unrecognized tax benefits. Interest and penalties accrued on unrecognized tax benefits are recorded as tax expense within the unaudited condensed consolidated financial statements. The Company does not expect a significant increase or decrease to the total amounts of unrecognized tax benefits within the next twelve months. The Company and its subsidiaries file U.S. federal income tax returns and various state, local and foreign income tax returns. At June 30, 2022, the Company’s statutes of limitations are open for all federal and state years filed after the year ended December 31, 2016 and 2015, respectively. Net operating loss (“NOL”) and credit carryforwards from all years are subject to examination and adjustments for the three years following the year in which the carryforwards are utilized. The Company is not currently under Internal Revenue Service or state examination. Pursuant to Internal Revenue Code Sections 382 and 383, the utilization of NOLs and other tax attributes may be substantially limited due to cumulative changes in ownership greater than 50% that may have occurred or could occur during applicable testing periods. The Company has performed an analysis through 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. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | ( 8 ) Stockholders’ Equity (a) As of June 30, 2022, the Company had authorized 500,000,000 shares of common stock with a par value of $0.01 per share. Common stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. The rights, preferences and privileges of holders of the common stock are subject to and may be adversely affected by the right of the holders of shares of any series of preferred stock that the Company may designate and issue in the future. (b) As of June 30, 2022, 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 June 30, 2022, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | ( 9 ) Stock-Based Compensation Stock Incentive Plans As of June 30, 2022, the Company’s stock incentive plans included the 2010 Stock Plan (the “2010 Plan”), the 2020 Equity Incentive Plan (the “2020 Plan”), the 2021 Inducement Equity Incentive Plan (the “2021 Plan”), and the 2022 Equity Incentive Plan (the “2022 Plan”) (together, the “Plans”). The 2022 Plan provides for the award of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock-based awards, and cash-based awards to employees, directors, consultants or advisors. Shares of common stock subject to outstanding awards granted under the 2020 Plan and the 2010 Plan that expire, terminate, or are otherwise surrendered, cancelled, forfeited, or repurchased by the Company are available for issuance under the 2022 Plan. 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 2020 Plan provided for the award of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other stock-based awards The 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. As of June 30, 2022 and December 31, 2021, there were 5,189,674 and 2,283,037 shares available for grant under the Plans. The following table presents classification of stock-based compensation expense within the unaudited condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of sales $ 1,528 $ 1,120 $ 2,816 $ 1,776 Research and development 2,977 1,925 5,559 3,153 Sales and marketing 699 362 1,223 580 General and administrative 5,223 3,609 9,963 5,873 Total stock-based compensation $ 10,427 $ 7,016 $ 19,561 $ 11,382 Restricted Stock Units Each restricted stock unit (“RSU”) represents the right to receive one share of the Company’s common stock upon vesting. The fair value of RSUs granted by the Company was calculated based upon the Company’s closing stock price on the date of the grant, and the stock-based compensation expense is recognized over the vesting period. RSUs generally vest over four years with 25% There were no RSUs granted during the three months ended June 30, 2022. The weighted average grant date fair value for each RSU granted during the six months ended June 30, 2022 was $27.76. There was no intrinsic value of RSUs settled during the three and six months ended June 30, 2022. As of June 30, 2022, there was $1,211 of unrecognized compensation cost related to RSUs granted under the Plans , 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 the three and six months ended June 30, 2022 and 2021, 54,661, 192,546, 252,935, and 840,076 options under the Plans were exercised for total proceeds of $396, $1,304, $1,612, and $5,268, respectively. The fair value of each option award is determined on the date of grant using the Black Scholes Merton option-pricing model. The calculation of fair value includes several assumptions that require management’s judgment. The expected terms of options granted to employees during 2022, 2021, and 2020 were calculated using an average of historical exercises. Estimated volatility for the six months ended June 30, 2022 and 2021 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. Following are the weighted average valuation assumptions used for option awards during the periods presented: Six Months Ended June 30, 2022 2021 Valuation assumptions Expected dividend yield — % — % Expected volatility 56 % 59 % Expected term (years) 4.75 4.66 Risk-free interest rate 1.90 % 0.68 % The weighted average grant date fair value per share of options granted during the three and six months ended June 30, 2022 and 2021 was $13.67, $13.54, $35.57, and $47.47, respectively. The intrinsic value of options exercised during the three and six months ended June 30, 2022 and 2021 was $977, $4,286, $16,036, and $59,113, respectively. As of June 30, 2022, there was $100,850 of unrecognized compensation cost related to unvested stock options granted under the Plans , |
Noncontrolling Interest
Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2022 | |
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, (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 unaudited condensed consolidated financial statements, and eliminated WuXi's ownership as a non-controlling interest. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common and Limited Common Stockholders | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common and Limited Common Stockholders | (1 1 ) The following table presents the calculation of basic and diluted net loss per share attributable to common and limited common stockholders for the periods presented (in thousands, except for share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (47,686 ) $ (34,644 ) $ (82,126 ) $ (34,673 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 71,161,892 70,582,062 71,106,470 70,328,254 Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: $ (0.67 ) $ (0.49 ) $ (1.15 ) $ (0.49 ) Since the Company was in a loss position for the three and six months ended June 30, 2022 and 2021, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares and limited common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Shares subject to outstanding common stock options and RSUs 10,723,911 7,876,615 10,723,911 7,876,615 |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Equity Investments | (1 2 ) (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 June 30, 2022 and December 31, 2021. The Company has no obligation to fund Nimbus losses in excess of its initial investment. For the three and six months ended June 30, 2022 and June 30, 2021, the Company reported no gain or loss on the Nimbus investment. ( b ) Morphic The Company accounts for its investment in Morphic Holding, Inc. (“Morphic”) at fair value based on the share price of Morphic’s common stock at the measurement date. For the three and six months ended June 30, 2022, the Company reported a loss of $15,405 and $21,422 on the Morphic investment. For the three and six months ended June 30, 2021, the Company reported a loss of $4,918 and a gain of $19,906 on the Morphic investment. As of June 30, 2022 and December 31, 2021, the carrying value of the Company’s investment in Morphic was $18,119 and $39,561, respectively. ( c ) Ravenna In connection with the merger of Petra Pharma Corporation (“Petra”) and a third party, 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 June 30, 2022 and December 31, 2021, the carrying value of the Company’s investment in Ravenna was $19. ( d ) 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 each of June 30, 2022 and December 31, 2021, the carrying value of the Company’s investment in Ajax was $1,700. ( e ) Structure Therapeutics In July 2021, the Company purchased 494,035 shares of Series B preferred stock of Structure Therapeutics for $2,000 in cash. In April 2022, the Company purchased an additional 148,210 shares of Series B preferred stock for $600 in cash. As Structure Therapeutics 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 Structure Therapeutics 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 Structure Therapeutics. The carrying value of Structure Therapeutics was $2,065 and $1,887 as of June 30, 2022 and December 31, 2021, respectively. The Company has no obligation to fund Structure Therapeutics losses in excess of its initial investment. For the three and six months ended June 30, 2022, the Company recorded losses of $294 and $421, respectively, on the Structure Therapeutics investment. For the three and six months ended June 30, 2021, the Company reported no gains or losses on the Structure Therapeutics investment. ( f ) Eonix On March 31, 2022, the Company received 4,000,000 membership interest units of Eonix in exchange for material science collaboration services under the terms of a master services agreement executed on March 31, 2022. As Eonix is a limited liability company and the Company is not a passive investor due to its collaboration with Eonix on a number of material science 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 Eonix. The carrying value of Eonix was zero as of June 30, 2022. For the three and six months ended June 30, 2022, the Company recorded no gain or loss on the Eonix investment. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (1 3 ) ( a ) For the three and six months ended June 30, 2022 and 2021, the Company paid consulting fees of $100, $200, $95, and $190, respectively, to a member of its board of directors. ( b ) 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 $15, $215, $142, and $872 for the three and six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022 and December 31, 2021, the Company had net receivables of zero and $165, respectively, due from the Bill & Melinda Gates Foundation. For the three and six months ended June 30, 2022 and the three months ended December 31, 2021, the Company recognized $440, $781, and $111, respectively, 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 June 30, 2022 and December 31, 2021, the Company had no receivables due under this agreement from the Bill & Melinda Gates Foundation. As of June 30, 2022 and December 31, 2021, restricted cash on hand related to the arrangement was $2,891 and $1,130, respectively. 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, $1,000 in contribution revenue in the second quarter of 2021 on the first anniversary of its entry into the agreement, and $1,000 in contribution revenue in the second quarter of 2022 on the second 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 June 30, 2022 and December 31, 2021, the Company had $1,000 and zero net receivables, respectively, ( c ) During the year ended December 31, 2021, the Company entered into multiple software agreements with and its subsidiary for approximately $650. The Company recognized revenue of approximately $ and $150 in the aggregate related to these agreements during the three and six months ended June 30, 2022. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | (1 4 ) Segment Reporting The Company has determined that its chief executive officer (“CEO”) is its chief operating decision maker (“CODM”). The Company’s CEO evaluates the financial performance of the Company based on two reportable segments: Software and Drug Discovery. The Software segment is focused on licensing the Company’s software to transform molecular discovery. The Drug Discovery segment is focused on building a portfolio of preclinical and clinical drug programs, internally and through collaborations. The CODM reviews segment performance and allocates resources based upon segment revenue and segment gross profit of the Software and Drug Discovery reportable segments. Segment gross profit is derived by deducting operational expenditures, with the exception of research and development, sales and marketing, and general and administrative activities from U.S. GAAP revenue. Operational expenditures are expenditures made that are directly attributable to the reportable segment. These expenditures are allocated to the segments based on headcount. The reportable segment expenditures include compensation, supplies, and services from contract research organizations. Certain cost items are not allocated to the Company’s reportable segments. These cost items primarily consist of compensation and general operational expenses associated with the Company’s research and development, sales and marketing, and general and administrative. These costs are incurred by both segments and due to the integrated nature of the Company’s Software and Drug Discovery segments, any allocation methodology would be arbitrary and provide no meaningful analysis. All segment revenue is earned in the United States and there are no intersegment revenues. Additionally, the Company reports assets on a consolidated basis and does not allocate assets to its reportable segments for purposes of assessing segment performance or allocating resources. Presented below is financial information with respect to the Company’s reportable segments for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Segment revenues: Software $ 30,011 $ 24,052 $ 63,092 $ 50,392 Drug discovery 8,458 5,732 24,040 11,519 Total segment revenues $ 38,469 $ 29,784 $ 87,132 $ 61,911 Segment gross profit: Software $ 22,910 $ 18,411 $ 48,480 $ 38,845 Drug discovery (5,776 ) (6,431 ) (3,363 ) (10,701 ) Total segment gross profit 17,134 11,980 45,117 28,144 Unallocated: Research and development (31,123 ) (21,092 ) (58,945 ) (42,540 ) Sales and marketing (7,428 ) (5,380 ) (14,099 ) (10,619 ) General and administrative (22,056 ) (15,850 ) (44,189 ) (29,239 ) Gain (loss) on equity investments 11,828 — 11,828 (1,781 ) Change in fair value (15,700 ) (4,918 ) (21,864 ) 19,906 Other (expense) income (296 ) 357 32 777 Income tax expense (33 ) (67 ) (5 ) (141 ) Consolidated net loss $ (47,674 ) $ (34,970 ) $ (82,125 ) $ (35,493 ) The following table sets forth revenues by geographic area for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 United States $ 27,104 $ 19,676 $ 57,379 $ 36,581 Europe 5,106 4,246 17,751 14,791 Japan 2,966 2,914 4,523 4,449 Rest of World 3,293 2,948 7,479 6,090 $ 38,469 $ 29,784 $ 87,132 $ 61,911 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | (a) In October 2021, the Financial Accounting Standards Board issued Accounting Standards Update (“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 accompanying unaudited condensed consolidated financial statements and the related interim disclosures have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for the interim financial information. These unaudited condensed consolidated financial statements include all adjustments necessary, consisting of only normal recurring adjustments, to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by the SEC’s rules and regulations for interim reporting. Interim period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the assumptions used in the allocation of revenue, estimates regarding the progress of completing performance obligations under collaboration agreements, and the valuation of stock-based compensation. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. |
Principles of Consolidation | (c ) The Company’s unaudited condensed consolidated financial statements include the accounts of Schrödinger, Inc., its wholly owned subsidiaries, and its variable interest entity. All intercompany balances and transactions have been eliminated in consolidation. The functional currency for foreign entities is the United States dollar. The Company accounts for investments over which it has significant influence, but not a controlling financial interest, using the equity method. |
Restricted Cash | (d) Restricted cash consists of letters of credit held with the Company’s financial institution related to facility leases and is classified as current in the Company’s balance sheets based on the maturity of the underlying letters of credit. |
Concentrations | ( e ) Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables. The Company does not require customers to provide collateral to support accounts receivable. If deemed necessary, credit reviews of significant new customers may be performed prior to extending credit. The determination of a customer’s ability to pay requires judgment, and failure to collect from a customer can adversely affect revenue, cash flows, and results of operations. As of June 30, 2022, two customers accounted for 19% and 19% of total accounts receivable, respectively. As of December 31, 2021, three customers accounted for 17%, 15%, and 11% of total accounts receivable, respectively. One customer accounted for 16% of total revenues during the three months ended June 30, 2022, and two customers accounted for 12% and 12% of total revenue during the six months ended June 30, 2022, respectively. One customer accounted for 13% and 11% of total revenues during the three and six months ended June 30, 2021, respectively. |
Income Taxes | ( f ) The Company records deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax basis of the assets and liabilities. Deferred tax assets are reduced by a valuation allowance when it is estimated to become more likely than not that a portion of the deferred tax assets will not be realized. Accordingly, the Company currently maintains a full valuation allowance against existing net deferred tax assets. The Company recognizes the effect of income tax positions only if such positions are deemed “more likely than not” capable of being sustained. Interest and penalties accrued on unrecognized tax benefits are included within income tax expense in the unaudited condensed consolidated financial statements. |
Equity Investments | (g ) In the normal course of business, the Company has entered, and may continue to enter, into collaboration agreements with 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. 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 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 per Share Attributable to Common and Limited Stockholders | (h ) The outstanding equity of the Company consists of common stock and limited common stock. Under the Company’s certificate of incorporation, the rights of the holders of common stock and limited common stock are identical, except with respect to voting and conversion. Holders of limited common stock are precluded from voting such shares in any election of directors or on the removal of directors. Limited common stock may be converted into common stock at any time at the option of the stockholder. Undistributed earnings allocated to the participating securities are subtracted from net income in determining net (loss) 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) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Timing of Revenue Recognition | The following table illustrates the timing of the Company’s revenue recognition: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Software products and services – point in time 45.8 % 51.9 % 45.2 % 53.0 % Software products and services – over time 32.2 28.8 27.2 28.4 Drug Discovery – point in time 3.5 4.3 12.2 2.1 Drug Discovery – over time 18.5 15.0 15.4 16.5 |
Schedule of Revenue Recognized from the Sources of Software Products and Services Revenue | The following table presents the revenue recognized from the sources of software products and services revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 On-premise software $ 16,595 $ 14,452 $ 38,281 $ 31,807 Hosted software 3,596 2,704 6,851 5,304 Software maintenance 4,952 4,176 9,678 8,281 Professional services 3,868 1,720 7,282 4,000 Revenue from contracts with customers 29,011 23,052 62,092 49,392 Software contribution 1,000 1,000 1,000 1,000 Total software revenue $ 30,011 $ 24,052 $ 63,092 $ 50,392 |
Drug Discovery Revenue | The following table presents the revenue recognized from the sources of drug discovery revenue: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Drug discovery services revenue from contracts with customers $ 8,019 $ 5,732 $ 23,259 $ 11,519 Drug discovery contribution 439 — 781 — Total drug discovery revenue $ 8,458 $ 5,732 $ 24,040 $ 11,519 |
Schedule of Contract Balances | Contract balances were as follows: As of June 30, As of December 31, 2022 2021 Contract assets $ 12,015 $ 8,271 Deferred revenue, short-term: Software products and services 24,815 32,945 Drug discovery 22,625 22,423 Deferred revenue, long-term: Software products and services 3,641 3,938 Drug discovery 16,464 26,126 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combinations [Abstract] | |
Summary of Provisional Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed by the Company as of the January 14, 2022 acquisition date. The business combination accounting under Topic 805 was finalized for this acquisition during the three months ended June 30, 2022, with no changes to the provisional amounts disclosed for the three months ended March 31, 2022. The Company has elected to use both practical expedients provided by ASU No. 2021-08 for the valuation of contract assets and contract liabilities from contracts with customers, with no material impact to the unaudited condensed consolidated financial statements. Cash $ 1,002 Accounts receivable 588 Other current assets 95 Property, plant and equipment 297 Intangible assets 1,100 Goodwill 4,791 Total assets acquired 7,873 Current liabilities 209 Deferred tax liability 235 Total liabilities assumed 444 Net assets acquired $ 7,429 |
Summary of Purchase Price Allocation to Identifiable Intangible Assets and Their Estimated Useful Lives | The following table summarizes the purchase price allocation to the identifiable intangible assets and their estimated useful lives as of the January 14, 2022 acquisition date: Amount Useful Life (years) Backlog $ 270 1 Customer relationships 710 5 Tradename/Trademark 120 1 $ 1,100 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following table presents information about the Company’s assets and liabilities measured at fair value as of June 30, 2022 : Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents and restricted cash $ 130,819 — — 130,819 Marketable securities — 382,246 — 382,246 Equity investments 18,119 — 2,065 20,184 Total $ 148,938 $ 382,246 $ 2,065 $ 533,249 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: Cash and cash equivalents and restricted cash $ 123,267 $ — $ — $ 123,267 Marketable securities — 456,212 — 456,212 Equity investments 39,561 — 1,887 41,448 Total $ 162,828 $ 456,212 $ 1,887 $ 620,927 |
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, 2020 $ — Cash contributions 2,000 Unrealized loss (113 ) As of December 31, 2021 1,887 Unrealized loss (128 ) As of March 31, 2022 1,759 Cash contributions 600 Unrealized loss (294 ) As of June 30, 2022 $ 2,065 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Operating Leases | Additional details of the Company’s operating leases are presented in the following table: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease costs $ 2,830 $ 1,417 $ 5,290 $ 2,887 Cash paid for operating leases 752 1,518 1,301 2,914 |
Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases | Maturities of operating lease liabilities as of June 30, 2022 under noncancelable operating leases were as follows: Year ending December 31: Remainder of 2022 $ 2,052 2023 10,590 2024 11,292 2025 11,016 2026 10,588 Thereafter 104,525 Total future minimum lease payments 150,063 Less: imputed interest (54,771 ) Present value of future minimum lease payments 95,292 Less: current portion of operating leases payments (7,180 ) Lease liabilities, long-term $ 88,112 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Classification of Stock Based Compensation Expense | . The following table presents classification of stock-based compensation expense within the unaudited condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cost of sales $ 1,528 $ 1,120 $ 2,816 $ 1,776 Research and development 2,977 1,925 5,559 3,153 Sales and marketing 699 362 1,223 580 General and administrative 5,223 3,609 9,963 5,873 Total stock-based compensation $ 10,427 $ 7,016 $ 19,561 $ 11,382 |
Summary of Weighted Average Valuation Assumptions Used for Options | Following are the weighted average valuation assumptions used for option awards during the periods presented: Six Months Ended June 30, 2022 2021 Valuation assumptions Expected dividend yield — % — % Expected volatility 56 % 59 % Expected term (years) 4.75 4.66 Risk-free interest rate 1.90 % 0.68 % |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common and Limited Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share Attributable to Common and Limited Stockholders | The following table presents the calculation of basic and diluted net loss per share attributable to common and limited common stockholders for the periods presented (in thousands, except for share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net loss attributable to Schrödinger common and limited common stockholders $ (47,686 ) $ (34,644 ) $ (82,126 ) $ (34,673 ) Denominator: Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: 71,161,892 70,582,062 71,106,470 70,328,254 Net loss per share attributable to Schrödinger common and limited common stockholders, basic and diluted: $ (0.67 ) $ (0.49 ) $ (1.15 ) $ (0.49 ) |
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive | Since the Company was in a loss position for the three and six months ended June 30, 2022 and 2021, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares and limited common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Shares subject to outstanding common stock options and RSUs 10,723,911 7,876,615 10,723,911 7,876,615 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Financial Information with Respect to Reportable Segments | All segment revenue is earned in the United States and there are no intersegment revenues. Additionally, the Company reports assets on a consolidated basis and does not allocate assets to its reportable segments for purposes of assessing segment performance or allocating resources. Presented below is financial information with respect to the Company’s reportable segments for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Segment revenues: Software $ 30,011 $ 24,052 $ 63,092 $ 50,392 Drug discovery 8,458 5,732 24,040 11,519 Total segment revenues $ 38,469 $ 29,784 $ 87,132 $ 61,911 Segment gross profit: Software $ 22,910 $ 18,411 $ 48,480 $ 38,845 Drug discovery (5,776 ) (6,431 ) (3,363 ) (10,701 ) Total segment gross profit 17,134 11,980 45,117 28,144 Unallocated: Research and development (31,123 ) (21,092 ) (58,945 ) (42,540 ) Sales and marketing (7,428 ) (5,380 ) (14,099 ) (10,619 ) General and administrative (22,056 ) (15,850 ) (44,189 ) (29,239 ) Gain (loss) on equity investments 11,828 — 11,828 (1,781 ) Change in fair value (15,700 ) (4,918 ) (21,864 ) 19,906 Other (expense) income (296 ) 357 32 777 Income tax expense (33 ) (67 ) (5 ) (141 ) Consolidated net loss $ (47,674 ) $ (34,970 ) $ (82,125 ) $ (35,493 ) |
Schedule of Revenues by Geographic Area | The following table sets forth revenues by geographic area for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 United States $ 27,104 $ 19,676 $ 57,379 $ 36,581 Europe 5,106 4,246 17,751 14,791 Japan 2,966 2,914 4,523 4,449 Rest of World 3,293 2,948 7,479 6,090 $ 38,469 $ 29,784 $ 87,132 $ 61,911 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) - Customer | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Significant Accounting Policies [Line Items] | |||||
Equity method investment, ownership percentage | 100% | 100% | |||
Customer Concentration Risk | Accounts Receivable | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, number of customers | 2 | 3 | |||
Customer Concentration Risk | Accounts Receivable | Customer A | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 19% | 17% | |||
Customer Concentration Risk | Accounts Receivable | Customer B | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 19% | 15% | |||
Customer Concentration Risk | Accounts Receivable | Customer C | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 11% | ||||
Customer Concentration Risk | Revenue Benchmark | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, number of customers | 1 | 1 | 2 | 1 | |
Customer Concentration Risk | Revenue Benchmark | Customer A | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 16% | 13% | 12% | 11% | |
Customer Concentration Risk | Revenue Benchmark | Customer B | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk, percentage | 12% | ||||
ASU - 2021-08 | |||||
Significant Accounting Policies [Line Items] | |||||
Change in accounting principle, accounting standards update, adopted | true | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2022 | Jan. 01, 2022 | |||
Change in accounting principle, accounting standards update, immaterial effect | true | true |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Timing of Revenue Recognition (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Software Products and Services | Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 45.80% | 51.90% | 45.20% | 53% |
Software Products and Services | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 32.20% | 28.80% | 27.20% | 28.40% |
Drug Discovery | Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 3.50% | 4.30% | 12.20% | 2.10% |
Drug Discovery | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition | 18.50% | 15% | 15.40% | 16.50% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details 1) | Jun. 30, 2022 |
On Premise Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Nov. 22, 2020 USD ($) Program | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Deferred revenue, revenue recognized | $ 22,303,000 | $ 14,780,000 | $ 40,599,000 | $ 27,676,000 | |
Percentage of revenue expected to be recognized | 70% | 70% | |||
Unsatisfied performance obligation | $ 24,617,000 | $ 24,617,000 | |||
Maximum | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Contract with customers, payment terms | 60 days | ||||
Minimum | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Contract with customers, payment terms | 30 days | ||||
Agreement with Gates Ventures, LLC | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
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 | ||||
Software contribution revenue recognition | $ 1,000,000 | ||||
Deferred revenue | 0 | 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 | ||||
Agreement with Gates Ventures, LLC | Second Anniversary | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Software contribution revenue recognition | 1,000,000 | ||||
Agreement with Gates Ventures, LLC | Maximum | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Software contribution revenue recognition amount | 3,000,000 | ||||
Agreement with Gates Ventures, LLC | Accounts Receivable | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Software contribution revenue recognition | 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 | 5,404,000 | 3,277,000 | 9,404,000 | 5,660,000 | |
Deferred revenue | 30,859,000 | $ 30,859,000 | |||
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 | $ 1,350,000 | $ 0 | |||
Revenue recognized with milestones | 1,350,000 | $ 0 | |||
Drug Discovery Contribution | |||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||||
Deferred revenue | $ 2,887,000 | $ 2,887,000 | |||
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | $ 38,469 | $ 29,784 | $ 87,132 | $ 61,911 |
On Premise Software | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 16,595 | 14,452 | 38,281 | 31,807 |
Hosted Software | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 3,596 | 2,704 | 6,851 | 5,304 |
Software Maintenance | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 4,952 | 4,176 | 9,678 | 8,281 |
Professional Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 3,868 | 1,720 | 7,282 | 4,000 |
Revenue from Contracts with Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 29,011 | 23,052 | 62,092 | 49,392 |
Software Products and Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 30,011 | 24,052 | 63,092 | 50,392 |
Software Contribution | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Drug Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Drug discovery services revenue from contracts with customers | $ 8,458 | $ 5,732 | $ 24,040 | $ 11,519 |
Drug Discovery Services Revenue From Contracts With Customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Drug discovery services revenue from contracts with customers | 8,019 | $ 5,732 | 23,259 | $ 11,519 |
Drug Discovery Contribution | ||||
Disaggregation Of Revenue [Line Items] | ||||
Drug discovery services revenue from contracts with customers | $ 439 | $ 781 |
Revenue Recognition - Schedul_4
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Disaggregation Of Revenue [Line Items] | ||
Contract assets | $ 12,015 | $ 8,271 |
Deferred revenue, short-term: | ||
Deferred revenue | 47,440 | 55,368 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | 20,105 | 30,064 |
Software Products and Services | ||
Deferred revenue, short-term: | ||
Deferred revenue | 24,815 | 32,945 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | 3,641 | 3,938 |
Drug Discovery | ||
Deferred revenue, short-term: | ||
Deferred revenue | 22,625 | 22,423 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | $ 16,464 | $ 26,126 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Details) - XTAL BioStructures, Inc. $ in Thousands | Jan. 14, 2022 USD ($) |
Business Acquisition [Line Items] | |
Business combination cash purchase price | $ 7,429 |
Upfront purchase price net of cash acquired | $ 6,427 |
Business Acquisition - Summary
Business Acquisition - Summary of Provisional Fair Values of Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Jan. 14, 2022 USD ($) |
Business Combinations [Abstract] | |
Cash | $ 1,002 |
Accounts receivable | 588 |
Other current assets | 95 |
Property, plant and equipment | 297 |
Intangible assets | 1,100 |
Goodwill | 4,791 |
Total assets acquired | 7,873 |
Current liabilities | 209 |
Deferred tax liability | 235 |
Total liabilities assumed | 444 |
Net assets acquired | $ 7,429 |
Business Acquisition - Summar_2
Business Acquisition - Summary of Purchase Price Allocation to Identifiable Intangible Assets and Their Estimated Useful Lives (Details) $ in Thousands | Jan. 14, 2022 USD ($) |
Business Acquisition [Line Items] | |
Provisional Purchase Price, Amount | $ 1,100 |
Backlog | |
Business Acquisition [Line Items] | |
Provisional Purchase Price, Amount | $ 270 |
Useful Life (years) | 1 year |
Customer Relationships | |
Business Acquisition [Line Items] | |
Provisional Purchase Price, Amount | $ 710 |
Useful Life (years) | 5 years |
Trademarks | |
Business Acquisition [Line Items] | |
Provisional Purchase Price, Amount | $ 120 |
Useful Life (years) | 1 year |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 533,249 | $ 620,927 |
Cash and Cash Equivalents and Restricted Cash | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 130,819 | 123,267 |
Marketable Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 382,246 | 456,212 |
Equity Investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 20,184 | 41,448 |
Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 148,938 | 162,828 |
Level 1 | Cash and Cash Equivalents and Restricted Cash | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 130,819 | 123,267 |
Level 1 | Equity Investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 18,119 | 39,561 |
Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 382,246 | 456,212 |
Level 2 | Marketable Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 382,246 | 456,212 |
Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 2,065 | 1,887 |
Level 3 | Equity Investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 2,065 | $ 1,887 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |||
Beginning balance | $ 1,759 | $ 1,887 | |
Cash contributions | 600 | $ 2,000 | |
Unrealized loss | (294) | (128) | (113) |
Ending balance | $ 2,065 | $ 1,759 | $ 1,887 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, Level 1 and Level 2 transfers, amount | $ 0 | $ 0 |
Fair value, asset transfers into Level 3 | $ 0 | $ 0 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
May 19, 2022 USD ($) SquareFoot | Mar. 08, 2022 USD ($) SquareFoot | Jun. 30, 2022 USD ($) | Jun. 30, 2022 | May 30, 2022 USD ($) | |
Lessee Lease Description [Line Items] | |||||
Operating lease expiration year | 2037 | ||||
Operating lease, weighted average lease term | 14 years | 14 years | |||
Increase in right-of-use assets | $ 13,621,000 | ||||
Increase in lease liabilities | 13,621,000 | ||||
Lease costs | $ 0 | ||||
Lease termination fee received | $ 295,000 | ||||
Office Lease Agreement | |||||
Lessee Lease Description [Line Items] | |||||
Area leased | SquareFoot | 27,198 | 15,045 | |||
Base rent per month | $ 60,000 | ||||
Rent abatement period | 15 months | ||||
Percentage of annual rental escalation | 3% | ||||
Lease expiration period | 8 years | ||||
Rent Abatement Period through December 31, 2027 | Office Lease Agreement | |||||
Lessee Lease Description [Line Items] | |||||
Base rent per month | $ 159,000 | ||||
January 1, 2028 through December 31, 2032 | Office Lease Agreement | |||||
Lessee Lease Description [Line Items] | |||||
Base rent per month | 172,000 | ||||
January 1, 2033 through December 31, 2037 | Office Lease Agreement | |||||
Lessee Lease Description [Line Items] | |||||
Base rent per month | $ 186,000 |
Commitments And Contingencies_2
Commitments And Contingencies - Summary of Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Operating lease costs | $ 2,830 | $ 1,417 | $ 5,290 | $ 2,887 |
Cash paid for operating leases | $ 752 | $ 1,518 | $ 1,301 | $ 2,914 |
Commitments And Contingencies_3
Commitments And Contingencies - Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Commitments And Contingencies Disclosure [Abstract] | ||
Remainder of 2022 | $ 2,052 | |
2023 | 10,590 | |
2024 | 11,292 | |
2025 | 11,016 | |
2026 | 10,588 | |
Thereafter | 104,525 | |
Total future minimum lease payments | 150,063 | |
Less: imputed interest | (54,771) | |
Present value of future minimum lease payments | 95,292 | |
Less: current portion of operating leases payments | (7,180) | $ (2,042) |
Lease liabilities, long-term | $ 88,112 | $ 77,827 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Tax expense | $ 33 | $ 67 | $ 5 | $ 141 |
Unrecognized tax benefits | $ 2,095 | $ 2,095 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2022 Vote $ / shares shares | Dec. 31, 2021 $ / shares shares | |
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 ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Total proceeds | $ 1,304,000 | $ 5,268,000 | |||
Stock Options | |||||
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 | 5,189,674 | 5,189,674 | 2,283,037 | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||||
Unrecognized compensation cost expected to be recognized over a weighted average period | 2 years 10 months 17 days | ||||
Maximum percentage of stock options must be granted at exercise price of fair market value | 100% | ||||
Share-based compensation arrangement by share-based payment award, options, exercises in period | 54,661 | 252,935 | 192,546 | 840,076 | |
Total proceeds | $ 396,000 | $ 1,612,000 | $ 1,304,000 | $ 5,268,000 | |
Weighted average per share grant date fair value of options granted | $ 13.67 | $ 35.57 | $ 13.54 | $ 47.47 | |
Intrinsic value of options exercised | $ 977,000 | $ 16,036,000 | $ 4,286,000 | $ 59,113,000 | |
Unrecognized compensation cost related to unvested stock options granted | 100,850,000 | 100,850,000 | |||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | 10,159,000 | $ 3,405,000 | $ 29,704,000 | $ 12,867,000 | |
Stock Options | 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 Options | 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% | ||||
Stock Options | 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% | ||||
Stock Options | 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% | ||||
Stock Options | 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% | ||||
Restricted Stock Units | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, description | Each restricted stock unit (“RSU”) represents the right to receive one share of the Company’s common stock upon vesting. | ||||
Share-based compensation arrangement by share-based payment award, award vesting period | 4 years | ||||
Weighted average per share grant date fair value of restricted stock units granted | $ 27.76 | ||||
Intrinsic value of options exercised | $ 0 | $ 0 | |||
Stock Granted | 0 | ||||
Unrecognized compensation cost related to vested stock options granted | $ 1,211,000 | $ 1,211,000 | |||
Unrecognized compensation cost expected to be recognized over a weighted average period | 3 years 7 months 13 days | ||||
Number of RSU's vested during period | 0 | 0 | |||
Restricted Stock Units | 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% | ||||
Restricted Stock Units | 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% | ||||
Restricted Stock Units | 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% | ||||
Restricted Stock Units | 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% | ||||
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 | 0 | |||
2020 Plan | |||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 0 | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Classification of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | $ 10,427 | $ 7,016 | $ 19,561 | $ 11,382 |
Cost of Sales | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 1,528 | 1,120 | 2,816 | 1,776 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 2,977 | 1,925 | 5,559 | 3,153 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 699 | 362 | 1,223 | 580 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | $ 5,223 | $ 3,609 | $ 9,963 | $ 5,873 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Weighted Average Valuation Assumptions Used for Options (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Valuation assumptions | ||
Expected volatility | 56% | 59% |
Expected term (years) | 4 years 9 months | 4 years 7 months 28 days |
Risk-free interest rate | 1.90% | 0.68% |
Noncontrolling Interest - Addit
Noncontrolling Interest - Additional Information (Details) - Faxian | Apr. 30, 2019 |
Variable Interest Entity, Primary Beneficiary | |
Minority Interest [Line Items] | |
Equity interest percentage | 50% |
WuXi AppTech | |
Minority Interest [Line Items] | |
Equity interest percentage | 50% |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common and Limited Common Stockholders - Schedule of Basic and Diluted Net Loss Per Share Attributable to Common and Limited Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net loss attributable to Schrödinger common and limited common stockholders | $ (47,686) | $ (34,644) | $ (82,126) | $ (34,673) |
Denominator: | ||||
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, basic | 71,161,892 | 70,582,062 | 71,106,470 | 70,328,254 |
Weighted average shares used to compute net loss per share attributable to Schrödinger common and limited common stockholders, diluted | 71,161,892 | 70,582,062 | 71,106,470 | 70,328,254 |
Net loss per share attributable to Schrödinger common and limited common stockholders, basic: | $ (0.67) | $ (0.49) | $ (1.15) | $ (0.49) |
Net loss per share attributable to Schrödinger common and limited common stockholders, diluted | $ (0.67) | $ (0.49) | $ (1.15) | $ (0.49) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common and Limited Common Stockholders - Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shares subject to outstanding common stock options and RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 10,723,911 | 7,876,615 | 10,723,911 | 7,876,615 |
Equity Investments - Additional
Equity Investments - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Apr. 30, 2022 | Jul. 30, 2021 | May 31, 2021 | May 31, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments gains (losses) | $ 11,828,000 | $ 11,828,000 | $ (1,781,000) | |||||||
Equity investments | 21,903,000 | 21,903,000 | $ 43,167,000 | |||||||
Cash payments to purchase of shares | 600,000 | 1,700,000 | ||||||||
Nimbus Therapeutics, LLC | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments gains (losses) | 0 | $ 0 | 0 | 0 | ||||||
Equity investments | 0 | 0 | 0 | |||||||
Morphic Holding, Inc. | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments gains (losses) | (15,405,000) | (4,918,000) | (21,422,000) | 19,906,000 | ||||||
Equity investments | 18,119,000 | 18,119,000 | 39,561,000 | |||||||
Ravenna Therapeutics | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Common shares received in connection with merger | 2,676,191 | |||||||||
Carrying value of non-marketable equity securities | 19,000 | 19,000 | 19,000 | |||||||
Ajax Therapeutics, Inc | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments | 1,700,000 | 1,700,000 | 1,700,000 | |||||||
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 | |||||||||
Structure Therapeutics | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments gains (losses) | (294,000) | $ 0 | (421,000) | $ 0 | ||||||
Equity investments | 2,065,000 | 2,065,000 | $ 1,887,000 | |||||||
Structure Therapeutics | Series B Preferred Stock | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of preferred shares purchased | 148,210 | 494,035 | ||||||||
Cash payments to purchase of shares | $ 600,000 | $ 2,000,000 | ||||||||
Eonix | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments gains (losses) | 0 | |||||||||
Equity investments | $ 0 | $ 0 | ||||||||
Shares received in connection with master services agreement | 4,000,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||||
Revenue recognized | $ 38,469,000 | $ 29,784,000 | $ 87,132,000 | $ 61,911,000 | |||
Drug discovery services revenue from contracts with customers | 8,458,000 | 5,732,000 | 24,040,000 | 11,519,000 | |||
Restricted cash | 3,500,000 | $ 3,000,000 | 3,500,000 | $ 3,000,000 | |||
Agreement with Gates Ventures, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Net receivables (payables) | $ 1,000 | 0 | $ 1,000 | 0 | |||
Agreement with Gates Ventures, LLC | Minimum | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of voting securities | 5% | 5% | |||||
Agreement with Gates Ventures, LLC | First Anniversary | |||||||
Related Party Transaction [Line Items] | |||||||
Contribution revenue recognition | 1,000,000 | $ 1,000,000 | |||||
Agreement with Gates Ventures, LLC | Second Anniversary | |||||||
Related Party Transaction [Line Items] | |||||||
Contribution revenue recognition | $ 1,000,000 | ||||||
Drug Discovery Contribution | |||||||
Related Party Transaction [Line Items] | |||||||
Drug discovery services revenue from contracts with customers | 439,000 | $ 781,000 | |||||
Member of Board of Directors | |||||||
Related Party Transaction [Line Items] | |||||||
Payment of consulting fees | 100,000 | 95,000 | 200,000 | 190,000 | |||
BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Revenue recognized | 15,000 | $ 142,000 | 215,000 | $ 872,000 | |||
Net receivables (payables) | 0 | 165,000 | 0 | 165,000 | |||
BMGFT | Drug Discovery Contribution | |||||||
Related Party Transaction [Line Items] | |||||||
Net receivables (payables) | 0 | 0 | 0 | 0 | |||
Drug discovery services revenue from contracts with customers | 440,000 | 111,000 | 781,000 | ||||
Restricted cash | 2,891,000 | $ 1,130,000 | 2,891,000 | 1,130,000 | |||
Structure Therapeutics | |||||||
Related Party Transaction [Line Items] | |||||||
Software sales transactions amount | $ 650,000 | ||||||
Revenue from related parties | $ 73,000 | $ 150,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Summary of
Segment Reporting - Summary of Financial Information with Respect to Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment revenues: | ||||||
Total segment revenues | $ 38,469 | $ 29,784 | $ 87,132 | $ 61,911 | ||
Segment gross profit: | ||||||
Total segment gross profit | 17,134 | 11,980 | 45,117 | 28,144 | ||
Unallocated: | ||||||
Research and development | (31,123) | (21,092) | (58,945) | (42,540) | ||
Sales and marketing | (7,428) | (5,380) | (14,099) | (10,619) | ||
General and administrative | (22,056) | (15,850) | (44,189) | (29,239) | ||
Gain (loss) on equity investments | 11,828 | 11,828 | (1,781) | |||
Change in fair value | (15,700) | (4,918) | (21,864) | 19,906 | ||
Other (expense) income | (296) | 357 | 32 | 777 | ||
Income tax expense | (33) | (67) | (5) | (141) | ||
Net loss | (47,674) | $ (34,451) | (34,970) | $ (523) | (82,125) | (35,493) |
Operating Segments | Software Segment | ||||||
Segment revenues: | ||||||
Total segment revenues | 30,011 | 24,052 | 63,092 | 50,392 | ||
Segment gross profit: | ||||||
Total segment gross profit | 22,910 | 18,411 | 48,480 | 38,845 | ||
Operating Segments | Drug Discovery Segment | ||||||
Segment revenues: | ||||||
Total segment revenues | 8,458 | 5,732 | 24,040 | 11,519 | ||
Segment gross profit: | ||||||
Total segment gross profit | $ (5,776) | $ (6,431) | $ (3,363) | $ (10,701) |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | $ 38,469 | $ 29,784 | $ 87,132 | $ 61,911 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | 27,104 | 19,676 | 57,379 | 36,581 |
Europe | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | 5,106 | 4,246 | 17,751 | 14,791 |
Japan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | 2,966 | 2,914 | 4,523 | 4,449 |
Rest of World | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenues | $ 3,293 | $ 2,948 | $ 7,479 | $ 6,090 |