SDGR - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. Welcome to Schrodinger's Conference Call for the Fourth Quarter and Full Year 2021 Financial Results. My name is Charlie, and I'll be your operator for today's call. [Operator Instructions]. Please be advised that this call is being recorded at the company's request.

to host like call today's would Ms. I introduce for your conference Now Vice Relations of Madden, President Jaren Senior Investor and Affairs. Corporate ahead. go Please

Jaren Madden

our Thank is Earlier an financial across everyone. at which afternoon, quarter summarizing and website and you our today's XXXX fourth available issued and during financial the a year call, release results. review Welcome our progress we we on company results update to provide on and full which the today company schrodinger.com. will good press

Here on Chief call and are Executive R&D today Officer; President Officer; Therapeutics. Akinsanya, with Financial our me Ramy Joel Farid, Lebowitz, Karen of Chief

and our forward-looking Following Safe that the our our and beyond of assumptions COVID-XX prospects, of intentions, pandemic; plans These quarter are our strategic our about are securities, advantages reflect have in collaborators, demand our of Actual outlook which forward as of Act other important solutions, our and marketable Q&A. drug you from factors year our to are our during strategic to relating a the made. equivalents, strategies, for Securities may goals risks, software we on XXXX, today's to ability uncertainties, as related Litigation pursuant expectations information our use upon well future statements and XXXX; expectations, the that our financial call those based the Commission XXXX risks differ described cash looking our the our looking Securities related reports. including, law, to elsewhere we and subject recent and statements for business to and available a expenses. for discussed platform, new performance, call, potential to and the statements to discovery business forward current call as as statements result future accelerate views Harbor should discovery cash, control, and our variety be Reform operating materially of that assumptions, to are are the plans, for growth or events, and results reliance computational of upon currently our Factors platform; no our us XXXX; obligation any including our statements our under make representing our our detailed programs; as and risks advance our XXXX relied and March XXst, including of today. we'll the Exchange in collaborative required forward-looking the software develop on otherwise. Risk Except prepared full drug and internal the filings views to open future made subsequent changes management the related limitation, to provisions date forward-looking remind Private I'd any information, the in most like expectations to to undertake ending our and duty without this will remarks, or on as the caption These update statements not of by

Ramy. are During like I'd certain With will turn our and further press we call metrics to results, this the operating in filings. that, and call, which over financial SEC financial release, also discuss to described

Ramy Farid

Thanks, Jaren, and thank us you, everyone, for today. joining

of business We the with execution in all are pleased XXXX. elements extremely across our

material adoption and continued We and to companies. both of Life science sciences up drive software, our scale

million. These this with very prior a revenue development in programs, position a milestones own cash XXXX. of approximately in our we bright us quarter ahead. set candidates of a nominated over underscoring for ended progressed We over XX% capped our software was which increase revenue increase strong a Total XX% X by wholly platform, year, the impact achievements $XX.X also X $XXX collaborative was clinic, our quarter future in of up fourth and We the programs. financial the $XXX.X and fourth of in XXXX and are million, resources high-value the XXXX of million,

also pipeline. we Karen, progress excellent from hear our internal made on you'll As

biology pharmaceutical X biology of the To structural Boston physics-based BioStructures, the and acquisition biotechnology clinic, structures structural drug expected which in discovery the and area areas access And continue toward expect will our the year. additional to to efforts, programs our leverage wholly-owned this later in now to based With we production points X is initiate through to We acquisition, have which protein Greater we structure that capabilities starting of and industries. scale first computational most to refinement Our our high-resolution advance have to the are platform. programs programs of our of and we services company provides more added the methods XTAL up a support programs this internal private for new our this clinic structures enter advance X year. the expanded to oncology pipeline immunology.

Korea, and programs. and contributions to very including development our drug also Karen's as company, discovery I'm extraordinary in to software on to sciences global and We our also our and customers our this region. in R&D expanded in broad business. competitive announce contributions team of science promotion discovery reflects established our to of of and have of The range as In Hyderabad, footprint material President Seoul, support multiple enhance operations Therapeutics. in her positioning platform to Hyderabad well pleased to we strategic South wholly-owned we strategic support drug and areas advancing January, and are programs. our expanded In India. Karen's operations a focused collaborative software both Employees the December, life leading our across support initiatives promotion expanding

the our our we business, and design. we've many software both progress advances our over discovery and support business the are of excited by programs, across and internal year, and We continued past all partner pipeline, collaborative drug our materials to aspects made expect

of of our collaborators to next to continue to our continue therapeutics continued up customers in computational generation invest our platform, and expect as will and we experience generating success we ahead, materials. molecules high-quality software and advance and in rapidly Looking adoption the scale

the call over during Before want incredible support time a and business. years, recently offering, strengthened his of for who February, public at retirement our sheet announced and his commitment balance continued him the the end additional service and to past debuted to as I Joel, financing investment X thank we I which secured turn over to company, a follow-on across our

We helped Joel in the strong and build Investor future best create strategy, him his very the profile, contributed established execution to finance of function. During Corporate and endeavors. to financial his team, tenure, our Relations strong continued our the our out wish Affairs

now the actively Joel's We review of call to we very we're to financial Joel caliber are far. successor, over turn the searching candidates so for results. and the pleased reviewed our I will have with

Joel Lebowitz

I'll you, million, financial Thank for quarter. up XXXX. XXXX results our Ramy, XXXX. discuss quarter fourth hello, our provide to and everyone. very the with review pleased and was fourth of outlook I'm XX% the a compared of start to $XX.X revenue Total

$XX.X revenue representing fourth Software growth quarter million, was XX% of compared the XXXX. to

of a new of revenue was discovery the Drug our was compared $XX.X in million in as recorded support case our underlying million XXXX, company as in increased customers to software compared revenue platform We by $X.X was of progress fourth drug public adoption primarily solutions the infrastructure. costs XXXX. our throughout quarter. million of million quarter the by to reflecting Operating in XXXX. million addition investment loss the to As advance quarter $XX.X as well R&D discovery and $XX.X driven well our customers a net million of the compared to large expense to of as science the a fourth to the the in of year, $XX.X internal programs, fourth required growth the loss quarter $X.X during was

For million, the revenue full increase XXXX. over total was XX% year, a $XXX.X

strong over growth from Discovery million, material collaboration $XX.X $XXX.X sciences million both million recognized BMS. primarily was was revenue XXXX, in and XX% due revenue with revenue science. to up to our life Software compared with $XX.X in XXXX

continued the value and investment our our large-scale of our $XXX.X compared million in mark-to-market was XXXX. Overall, $XXX XXth, XXXX, operating Full capabilities on with demonstrate Software XXXX, $XXX.X $XX.X XX% strategic support In approximately was XXXX the support in infrastructure our loss of of million marketable to changes in year adoption we XXXX. versus compared $XX.X securities, in And compared to gross to million to other of by of results creation loss driven value approximately income investments. $XXX.X cash invest for the restricted million in $XX.X September margin ended million in Net operations. recorded in $XXX the balances expense these to reflecting expand XXXX solutions. to as XX% we to collaboration to we XXXX, of opportunity and ongoing million compared cash million a strategy. million equivalents, drive was our in year XXXX, R&D and

we to increase over to the addition in XX% reviewed, ACV for compared XXXX to software like software In value results our annual $XXX.X million of Total report $XX.X on XXXX, financial contract reached XXXX. year. performance million key indicators I'd or in an just year

million from of XXXX, XX% For to comparison, ACV this with change, to than XX% of for note we this XXXX. XX% $XXX,XXX similar by The of reported in total this with $XX.X increased million important in XX% for a up XX to million was million in we of XXX customers and driven $X to total ACV cohort a was ACV to XXXX XXXX. more in timing. ACV increase. that increased $XX.X also saw growth rate XXXX, compared change $XX.X million $XX.X our in to top in XX%. this Customers retention We XXXX with compared XX% was reported in It's customers The XXXX. the retention from customer XX XXXX. category growth number in Even XX in XXX the over growth

year-over-year. X,XXX total number the ACV a of XXXX increase compared XXXX, X,XXX $X,XXX over to those in in XX% in was Finally, active customers,

this are with long-term are financial as to outlook We we'll pleased strategy our focused this we business. year, generating on look our performance and And XXXX. we executing time, provide At on ahead across for the growth. our

revenue million, growth in to We to expect XX% corresponding range to million annual of the XX% $XXX total XXXX. be over $XXX to

very also pleased we million XX% XX% to software, XX% we continued for XXXX, growth Software quarter, range million, with with was opportunity the that we last we seasonality record a our vary expansion. $XXX quarters to fourth expect be years, to with quarter-to-quarter. quarter, in lowest years. coming the expect anticipate the proportion will representing first third and regard are consistent quarters $XXX to revenue in With the our Consistent case Accordingly, annual with as to revenue XXXX, over excited X quarters larger and to from of our midpoint. the largest each at revenue track X from be the revenue about revenue patterns. prior the previous to Similar and fourth is the approximately of expected second

For first XX% range we XXXX software The midpoint. revenue $XX to at from growth quarter specifically, million quarter approximately to first over the the reflects expect $XX range of the million.

revenue drug of of $XX discovery reflecting $XX period can XX% and growth We significant from last A to certain therefore to vary this the over timing revenue achieving XX% period. the was from expect portion range to collaboration to programs year. milestones million million, by driven

the growth like in year. to advancing internal the the how we operating that particular, anticipate to and will the quarters pleased intention in Phase similar expect our progress across in collaborative and rate saw our year, gross second half I we would and outlook of XXXX the we anticipated to first at programs expense comment year, reflects X independently. software most also annual first expense coming similar are X fourth the into for be to We with quarter. clinical our lead the programs with the the internal the pipeline in margin development to growth expect which of strong XXXX, quarters of into revenue on continued this levels progress XXXX, trend in In operating as we We I be invest to XX% our growth clinic.

we margin are percentage the to we believe look with pleased very also positions ahead. the last year, continued for software anticipate be us progress we We we made which as mid-XXs. Overall, momentum gross in the

next the of for strategic that to for XXXX. of in will outlook we that adoption key includes of the see we growth with expectation goal This further addition software over today, platform years. our we our outlined XXXX In financial goals our have X provided XX% ACV

past opportunity X the of look programs. looking revenue to be and the company's work revenue excludes great We the of be over of my up discovery a part to with the of X for forward in to note. like Karen the lead potential also many you in people call the a to month, at years, drug capabilities before continued on an tracking over the build so internal discovery greatly been appreciated I'm from community, next. to required expect our $XXX the of family IPO with goal strategy revenue least million. help inflection the to support our drug an company. programs. and over team more business drug advance with I'll time a discovery Schrodinger to our wrap I success. what's end and with time a the of now It's forward working deciding an all any spending XXXX our absolute well to partnering Notably, on as company's at to global member and investment I've to retiring personal turn I'll pleasure update public be this I'd the

Karen Akinsanya

Thank In Joel, and our discovery you, to internal make our programs continued on good many important across collaborative drug fronts morning, of and XXXX, portfolio we advances pipeline. everyone.

the programs pleased of A development. preclinical in platform. clinical advance are and clinic, see of collaborative programs total impact to We the X our which multiple underscores into are

of initiation excited program. the the of inhibitor a in HPKX highlighting We initiation about study their Phase and I/II IIb of announcements are study a company's recent Nimbus's Phase TYKX

Because x-ray are enabled obtained Our core fully biology are accurate scaling high-quality also capabilities our and includes structures discovery platform. business, computational are our as to target upon such relies drug structures access up for protein techniques cryo-EM. high-quality our strategy crystallography our computational software our XD structures that structural that from to and

that As this drug a to strategy, the discovery, Boston Schrodinger field to structure-based part month, drug a methods. of in and of services biology the and acquired transformative acquisition computational this combining industry. provides private XTAL design for at company area tremendous opportunity structural this last based on by have BioStructures, a be biopharmaceutical experimental the provides impact continues to forefront we

our drug Additionally, and and structure-based produce computationally this are acquisition future advanced to our screening structures target ability ready customers for include structures provides expand offerings optimization. programs in service the differentiated access high-quality discovery and will augment for and virtual validated to that to our protein that been an have lead

our internal WEEX. Starting will highlight Now and programs, MALTX inhibitor X our MALTX, advanced I program. the CDCX, progress on with most made

cell B-cell program the In data B We as December, relapsed strategy MALTX, Society presented resistant presented emerged of annual MALTX we from last such such have options made expand downstream as that the significant B-cell for as other progress lymphomas lymphomas has data of targeting certain suggests into mantle Hematology B-cell in to preclinical data certain has the patients is meeting. non-Hodgkin's BTK, ABC expanding with Furthermore, year. lymphoma. in of that potential relapsed from that possibility therapeutic with a with regulator subtypes preclinical strong lymphomas. inhibitors, a B-cell and DLBCL lymphocytic at in chronic compounds have derived antitumor leukemia. and treat and of patients alone NF-kappa of may drug-induced to American our BTK this therapeutic samples with resistance resistant lymphomas combination The overcome both or activity, shown our

the in second lymphoma year. expect and FDA development I we to Phase of submit our We track inhibitor patients on initiate IND the regulatory candidate clearance, first MALTX clinical our in our relapsed MALTX in half for to Subject study this of XXXX. the first the to with resistant of are half to

regulatory areas, have affairs. team advance key clinical in programs early CMC, the clinic, wholly-owned development, our our including we enhanced towards and As

initiated support also Officer activities. search to Chief our development We for have clinical our and Medical strategy a

also stress Now will as development replication CDCX year, linked to DNA turn normal required we momentum selected capacity DNA for protein is candidate DNA CDCX play Last roles damage replication thought a gaining proliferative therapeutic cancer. that replication in initiation. program. important responses, our our for I CDCX to targeting proteins approach program. bypass ability for a and a that is is be cancer cells' to is to kinase and CDCX

We venetoclax in are studies molecule, combination profile has preclinical strong models are pleased very activity demonstrated with progressing. and marketed other antitumor the of AML our IND-enabling agents. which in with of

studies, are of However, COVID-XX to some by have due issues. the CRO, delayed timing been required which performed toxicology a related

to our program, replication inhibitor I'll We complete year, repair mechanisms. DNA have to and and the targets CDCX early also move expect XXXX this and Phase initiate to to later secured cancer slots on a that these same FDA studies through in year. tox to for we our I later the WEEX which stress clinical now study now submit IND candidate

with evaluation We in profile clinic WEEX as pharmacodynamic drug-like combination compound monotherapy other have of antitumor in inhibitors identified models. with in our the responses show strong desirable the multiple preclinical as believe and We highly-selective properties activity agents. that supports as well

track development year. the an are select We submit IND candidate to and on expect next to later this FDA to year a

are WEEX preclinical program this also present first in year. planning from of We to data our half the

of are clinic. have capabilities produce additional portfolio structures for that and biology collaborative into of computational internal our rapidly to is allow disease advancing pipeline Activities structural target high-quality underway, platform. internal to areas X our in additional clinic, X expect adding advance pipeline. to our and we are the We added programs diverse towards to year. new one programs first immunology. In programs now programs oncology the internal initiate XXXX, we wholly-owned programs enabled this and we towards and in X have will expansion fully As programs, other well new that support our the are summary, In acquired our us

now collaborators look activities about Ramy. to to the We forward our are throughout will over making you updating the on call and R&D and the year. we back I excited turn progress our are that

Ramy Farid

XXXX WEEX of another ACV of Karen. with lead our potential revenue IND at over least half strategy drug our of growth and adoption Phase submissions next value has for in year MALTX internal partnering program internal second XXXX the for the in CDCX revenue initiation business. leverage initiation and verticals X of MALTX IND and not -- programs and materials study capabilities; peer-reviewed structural CDCX and programs; have new Schrodinger, from and the $XXX program for business out scale-up clinical include ongoing laid in initiation Phase with XXXX; key programs several as continued to across sustainable XXXX; which in the include: long-term for These growth publication can I energy does our clinical programs from and over in XXXX data clean in inflection software discovery science synergies And collaborations of of of our of million, XXXX first success. our objectives I objectives Thanks, discovery XXXX; drug materials. potential biology strong multiple platform X programs in of our for our generate that leverages in be our our position internal our forums; submission such WEEX we in that us XX% multiple study initiation years half

providing Operator? progress We to have the to we discovered. happy are team therapeutics throughout At the And our be materials forward take questions. way to committed we'd transforming and an your exceptional time, year. updates this on look

Operator

Instructions]. [Operator

of question Piper with from Do line Kim the first Your Sandler. comes

Do Kim

Great.

your promotion. the retirement. wish I on well you wanted Joel, And congrats Karen, on First, to

was exactly Joel, difference drove in revenue? over number of as there quarter you million mean? anything XXXX you look that is with software timing. does And customers at that fourth the to the the from What that the $X quarter we a said strength in could in ACV, point earnings, to the specific XXXX On

Ramy Farid

those Sure. it. and comments. Thanks, Appreciate thanks Do, for

large. very with in is So that, along, And our with XX% the of the largest our good all of we saw solutions. quarter, particular, growth, quarter, examples them are we're the regard of obviously see and continued software, some were fourth we've pretty in of to really that year to And our which in existing continue quarter of many been to the whom of fourth pleased increase customers, trends adoption customers seeing progress growth. some the XX% we continuing

if also growth And over in look and that so that I'd But We we materials. really in the performance We spend. not customer in and also just business in are in quarter business. the did you help the at had in broad-based. had customers but was the $XXX,XXX the had year our science both say ACV, XX% life drive growth -- count

growth out year of the and quarter to that, clearly I'd also point we was so that that And was the strong. a in And reported. fourth we quarter had leading and also that fourth the really in top culminating base XXXX strong -- full year very on broad-based

there. be with contract really million, the With really late So we're over the renewed again to customers that it about XXXX then to regard asked that was good and a performance, the happens about pleased in timing regard you momentum to $X in and very aspect early XXXX. renewed was

count, but So virtue a from customer. weeks of of just a customer and a significant that still by slipped it's couple

Do Kim

Okay. Got on guidance about some it on that underlying ask it. also at revenue I XXXX And to discovery for? for number that $XXX are million. programs of the confident provide number? you could drug of details you accounts How wanted least the And

Ramy Farid

Do. Thanks, Sure.

particularly time our you and further look thorough it forecast we XXXX. when in give as out in confident at of a go we're things any So that XXXX are we try out. can guidance, pretty there's both vary, Obviously, we and number business to

However, programs what collaboration is programs. or now, a It's say would XX plus I minus. portfolio have of we about

portfolio broad. And so the is pretty

collaboration the that that are That's clinic. the now have programs. approaching clinic. have portfolio a also collaboration then the behind And that in of We we host programs are seven in

earn we providing we our we believe program risk-adjust map general, And that by and we're business, from will baseline opportunities lead potential programs we our that comes include larger to and it X our any lead note really for in opportunity that milestones these it's are And what the the program out as goal collaboration and partner does any larger outlook So, an achieve. if progress. internal we of that's that revenue that, to programs. really -- not the important

Do Kim

question Karen. a a the that? And in pre-IND before get you you What's planned? X as for IND Have one great. That's left meeting the filing with Okay. to done FDA

Karen Akinsanya

Do. Thanks,

We are of for that IND in are complete phase we last our planning with the GLP studies, submission. and tox

We had to have the out. as actually an opportunity agency, with interact pointing you're

And as a think us opportunity expect package considered, that submit we and happen that's in that the so year. we lot gives said to to of we a well first half this of

Do Kim

And Great. on the congrats quarter.

Operator

question Your Vikram with next comes from line Purohit Stanley. Morgan of the

Vikram Purohit

guidance first the was So sales XXXX. on one software the for

So you then XX% think And bookends. you guided range about of I follow-up. have either of a just to at an believe, XXXX Could the a talk to bookends what drives XX% you those guidance? I a side over of to, performance increase

Ramy Farid

Sure, Vikram. about We can that. talk

off of underlying coming solutions. our increase see of strong adoption we're our customers larger year. again, a to continuing So, these We trends both existing in

time addition steady long new for now. had of customers have pretty a We

pace that we've growth. make discovery. think period. in how progress can over fully commit customers to getting drug And significantly we XX% said, XX% our -- our strong And to guided a really of so, approach really largest multiple-year we've center to to a the we And we as and extensively to before, can you much at around bookends, range described equates to growing continue a as XXXX, in

of deploy deployment deployment our gap their those -- but think our level deployment by larger it's programs we solutions the our of that solutions our very larger, still between customer's still we've past, the customers. they're solutions, our about programs is As our gap of are largest our collaboration talked at is optimal the in and the even getting between internal and the which and fraction and at large, what on a we is

the continuously quarter, that, showed we're the top there. of about the around a end move lot happens, Obviously, we the and working of that of lot it's great conversations opportunity there's towards a you more that progress. making we're along and that customers to the think the So We're we're unpredictable. excited fourth in are, but bookend more path. having We

working towards little we those decisions longer you end. the be upsizing bottom as So will if sends for as extensive whatever a quite the not reason, take that is or towards,

So that's the natural outlook. variation in software the

Vikram Purohit

Understood. Okay.

Joel Lebowitz

execution also succeed the along we're these can in continue move I think Sorry, with though, year this getting XXXX, well. we're record them path, I and would over track Vikram, we've that last that longer the of the to to confident have not years. had, very pleased term but as And just discussions add, X in we over

Vikram Purohit

Great. then follow-up wholly-owned helpful. And a Understood. That's on pipeline. your I had

you you think note, this X could decide think oncology. in of just commercial add pipeline get molecules one mix recently, the at in to what mechanisms were the and curious these prioritize, you cadence weigh rationale, one pathways, related a I you be immunology, that thoughts in and which expanding So how I'd development you be mentioned which scientific there and and XXXX opportunity pipeline making which how XXXX? when added to you on further your And your is decisions. on to molecules And

Karen Akinsanya

Vikram, thanks for the question.

more selection evidence of risk importantly, indeed have studies lot targets some the human human means programs, or for appropriate mechanism don't from That a take and, of terms focused believe biology. we to In that a mechanisms preclinical genetics and on clinical for we're the particular evidence. us both. on We or initial think of really it's

the the compelling obviously, potential early select landscape in are to mechanism clinical at design opportunities, for And that well also biomarker broader we look of our And the trials. our clinical very the indication. of ability specific generate our the longer-term solve the as in data landscape, closely it for to relates ability we And so challenges. both to terms targets positioned the platform

goes that said, of we all we So challenges I that these think can And solve platform. our key with into consideration. as design

question pipeline. regarding with think growth and I second your capacity was the

programs oncology. IND-enabling looking pipeline immunology for of pipeline discovery or of number have X believe are we and right and into be the clinical that at We will in graduating now studies. added out feasibility that in programs the We're the a replacements the programs

around us the wholly-owned good of means may portfolio. change. programs. a think that that's number a that we steady-state for So Over for discovery we'll But now, in be that time, keeping

Vikram Purohit

Appreciate it. Understood.

Operator

from comes with question next Yee Your the of Jefferies. Michael line

Andrew Tsai

Andrew This for is on Michael Tsai Yee.

on the guidance conservative. for think I'm again guidance to XXXX. software trying is just question your is First whether current gauge you

question. So your That's you accelerating you've kind more think what think seeing based fair discuss talk is maybe even whether my you bookends fundamentally upside you there? on what of is there's Or to? first you're that maybe guided out the whether business to about provided do and

Joel Lebowitz

our Andrew. think I confident largest and opportunity Yes, customers significant, their I'd over said, multiyear deployment a we we we to our continue outlook we that the a look at possible our in as at what of say Thanks, we're think we upsize And is. establish for longer period and same our of the we period, is business on as lot pathway believe a guidance have what for guidance. time the based over is to growth that, time, there.

in by We opportunity able ACV those anticipate to growth the evidenced And will in of trends, business. the look have ACV you we're that an pretty overall XXXX, both that continue in we we've proven to the -- as new XXXX confident over growth of we greater that And of indicator the at if XX% XXXX, a consistently. to continued business XX% the attract outlined the that's long period that goal are strategic customers time. has in strong than

Andrew Tsai

expect lead inflection compound. that XXXX, discovery, And excludes there in know partnerships again, on I your which for the you drug

Or you, And any is what considering these be at intention Bristol a the So to thing be like latest even partner XXXX, multi-target latest would thinking Do compounds. not have deal? like would for lead actually out Your if I'm program? thinking out in partner this them would stage, your specific a curious XXXX? you you helpful.

Karen Akinsanya

can take Yes, I that, Andrew.

continue collaborative who partner potential our in a we done as have that lot speaking with So portfolio. the we at with companies existing this would did BMS. There's we us obviously scale of interest with in platform across way accessing

we partnered programs lifecycle As in you know, really for the BMS the those of on efforts. some collaboration, early

inhibitors, continue synergistic those BTK take that We do, have advanced clinic, us BCLX we obviously potential there's yes, agents, PARP or the to you've for to have With will our that think into so, we heard to for who companies MALTX. wholly-owned well similar example, to regard And though, combine partnerships. for matter to for inhibitors inhibitors, today. asset, as do intentions talk

one-off to last generate that Or than data for decision But we as in event sense that, makes right is the that conversations Is in that partner and the is us is I initial in earlier the said, sustained those the question have intentions, to these. partnering a A interested with a XXXX. be clinical are that inflection Our think the very certainly XXXX? we new time. like at beyond going make that level like thing? quick just company for

Ramy Farid

Yes.

think we that what also clinic beyond in said because are both at a are rate that to about. them. XXXX it do level business and in shows is of be, business. point. guidance revenue very remember, that opportunity progressing, providing for our But to a this not of And X the of a see, the and XXXX I programs whole have that we're the think mature, behind very Andrew, strong right portfolio in that discovery the So, that already portfolio business would I we've as that but the just we'll you there's you real that strong collaboration continues terms we size programs imply that in slew think indicated say kind that in to terms growth we that are the And of can drive of business the

a excited that going growth revenue forward. business we're opportunities emerge, it's So to about starting robust and is the

Operator

comes line the Hewitt Craig-Hallum next Matt Your Capital. of from with question

Lucas Baranowski

Hewitt. we my when of question, look some did guess QX, that Yes. expansions on recognized until the Matt in quarter, switch for at signed were licenses all during I This first large do not the for revenue those Lucas on or that is of January? get

Joel Lebowitz

is terms as large quarter also, quarter. largest Fourth expansions Lucas. our did quarter volume we renewals. in And Sure. well have of this some

year the see XX% software fourth and for contract for over deferred year-over-year at versus fourth year. revenue the fourth And you get quarter are of of that the starts those balance quarter recorded revenue of that in increased the to deferred can contract are our and, starts some recognition XXXX. quarter by Some new end therefore, and flip

do in revenue. that's some get fourth increase reflective quarter that and as quarter that bookings have a shows we of large in fact So fact that the the also in recognized the the first of

Lucas Baranowski

to Excellent. have historically, second That's had their own question, helpful. And then customers for my do your crystallography on work some before adopting software.

can adoption do work foresee you in you've and that for increase software? acquired the for XTAL them, that an Now do

Ramy Farid

Rami. that. is a great I'll answer question. This Yes, really that's

something take you'll but So from high-quality great when of That acquisition, the efforts endeavor, for demand away, in then big question. That's software. that's we of increasing that's And But Absolutely, an we the the that we part will structures. saw that from right the will strategy availability not company. necessarily expectation acquiring also is undertaken in certainly that just not see that our a succeed course. we've the as many the see in of it's increase really time. a

Lucas Baranowski

That's all I had.

Operator

of BMO Markets. Your next question comes from Nachman the with Gary line Capital

Gary Nachman

over much from you life at of spill And talking new inflationary growth materials or more. of there the an next versus that And we software guess, much You're 'XX your and would little environment, programs? the Maybe can growth to over I software should is ACV, how take year accelerating maybe baked 'XX, sciences maybe in into the your Is the you that in all existing that the your level. high and price that specify at in growth much 'XX? the saw business a how in in be On how guidance on the in materials, really terms bit a customers? versus X? could

Joel Lebowitz

Gary. take Sure. Thanks, can I that.

business, the for of versus it large customers. see with year, a our or existing regard of quarter in largest -- the these a new decisions some by when upsizing be increases we particular opportunities driven So really to tends more to

and -- steady. years. new really last shouldn't for triple has outsized on steady the an You are $X big impact -- we they and can the obviously But the pattern has can ignore of pretty couple a increase being attracting that that that's it's customer been and a the that customers, million size then of fact imagine contract, we if overall the been growth But rate.

we seeing did XXXX, are formed, that as customers, did And life both biotechs materials. -- on in different attract customers a formed. well. on sciences new growth have them We also were side were lot a in new as We're focusing geographic life though science of even of lot and markets of attract the business

-- growth. strategies So both pursuing we're we're sides for growing both

out Sorry. a what out haven't would for existing level. jumps driven big say question I at you X your primarily -- opportunities was, can broken the We haven't given our are higher Gary? really much remind me by we separately. solutions these real the that deploying And first just though customers

Gary Nachman

It price programs? doing there was companies able that on to like And also, are hear costs We input go environment, your an if pricing you inflationary are it. are in maybe take that software other on up.

Joel Lebowitz

Sure.

that increase And do reflects certainly So for to the in number we line. value that see -- they of that of have time we field. is if have the and a see a do because multiple largest product we and We're price the the we'll the player really increase on fair do We recognized charge offering revenue our increases have we to that really as And that, licenses ability need the it. And our they don't being really to though we we're the valued products. growth our level want a we generally strategy we able that believe from to marginal idea price, should. effect to our the drive activities time. quite -- scientists in discovery to primary customers

our And so that is really strategy.

the look MALTX Ramy. relapse I in of the you what some back Karen. specifics start to going And Okay, that just mentioned if second lymphoma? just for will couple half for great. and more Can like give you're to year resistant you a And that then If you then you Phase you, have the for talk on could it. about

Just on assuming I'm Korea, maybe expanding South the not South that's operations whole to Korea into but Pac Asia just region. serve

talk bit that the little opportunity there. just you're type about seeing maybe you So can a of

Ramy Farid

program? Karen, MALTX do you want take to the

Karen Akinsanya

Yes.

in the going What I focus of design that our to of in tell discussing we'll So we can with as on be B-cell Phase study more is I focused the as safety, lymphomas. through be study. tolerability, detail the the That's all-comers study is can you you Gary, imagine, year. this progress initial

a assessing proof X again, But this of on think further as We this engagement point design we're along trial. the are Phase in about biology target the of comments as year. and little expansions proof of also, course, thinking well cohort be the we'll reserve bit some we'll how until of I at

Joel Lebowitz

just a the question then Yes. rest We And actually already about few South distributors Korea. on Korea. really in quick had South

of business. understand on there, significant the the a effectively. there both we can science obvious operations other on the life if operation opportunity own So have We capitalize the we've and been in We saw there. We number we opportunity recognized and science already the more Asian that opportunity established material our thing countries.

countries pretty and do We that India through have distributors. We of other in a China. a have significant in KK, have distributors in we operation course, region

was for so the I the question. answers -- South we now. Korean hope to Korea So the specific market The South

of we'll that will year in more or couple just that take you Okay. guess, think Is in overall see general, general? And when this from could I of region -- that it a Yes. do years? inflection, an happen

and of does take team. presence your it up little time So a establish bit the to there build

take This distributors we're had same we replaced, sense, to particular Japan But a inflection we've any for thing when there. number when So what ago in region. the a not guiding happened some of years did we example, the in own certain we entering operation in you're seen, we a quite can was many through build country. ago see we've some does the into and our time to investment while over seen growth there, it that new years, when but pretty presence a with there, significant up

Gary Nachman

Joe to And the wish luck also of wanted to congrats I to Great. best and also Karen. Okay.

Operator

[Operator Instructions].

Derik question comes Bank De with the from of next Your line of Bruin America.

Derik De Bruin

programs get better. driver your But to how clear back to -- is Just the right? the curious. just using you use in customers think upsell back biology. you guide to a There's and how currently the them software on do case The What up got with of You've scale spend for to to are sorry that. 'XX they clinic. the more structural it, beat getting on do and -- methods number and for go I'm circle

got you've got out things You've AlphaFold, there. other

say, is what drives a this customers larger So your to have that okay, scale? much inflection to on do that point now we

Ramy Farid

Yes.

is are is So clear accomplished that we think there having the you it that always had And about, you computational we, impact it's programs, which in of and collaborative in talking are we've works a that customers what and it's thing would are to programs, One it that think, projects. have. own things. in I starting see their our really you definitely couple see hoped see methods that is technology the own

that So kind off. that check box of

we're you make that, but working of is still hard run there's that what this possible Now experts. lot couple people a lot progress still need use in software it, made the think to I easy you we've as to One software need things. a to of is that remains and and is as a -- to of this and it do

the computational to run chemists You need software.

way, so really up by their where an I chemists the And going transitioning into and think groups that's a which that to that's chemistry sign. there's something trend -- scale that more some time. to great overnight. more are and It seeing, is happen computational take have field companies interesting doesn't We're

thing. one that's So

and thing are what other which The prioritization is enabled, those we've of of is touching programs. that programs on structures availability been the prioritizing the structurally

that trend that clearly. again seeing very time. something we're But So takes is that occurring

methods cryo-EM. in companies sorts buying every time. electron projects. to continuing obviously, all You in in company also They're technologies, methods that cryo-EM, structurally that, takes structural of essentially provide do own including are invest to see enabling microscopes we investing right? their including But now Pharma biology pharma

Derik De Bruin

on technologies other the That of it. some based sense makes we cover. certainly that Got

Is like like -- just clients have that. multiple really that have coming top that sense in in Could of about you booking with more people right analyst the on area space some going I underlying of what's terms I you've you're seen in ask bit like This of spending of about the So is on talk well as a -- what's in CRO nonavailability, as what you just curiosity? Just like the driver? little that? seeing it this just is something more, now delays a that to sort question

Ramy Farid

Sorry, mentioned. I'm asking not Karen the sure, you were about delays that

Derik De Bruin

that Yes, the Karen delays mentioned.

[indiscernible]. having you're mentioned You

Ramy Farid

Karen. ahead, Go

Karen Akinsanya

there's Yes. all We've been supply This I been along or across months. GLP story required tox over emerging that think a has an of biotech last else, with X everyone are of X the couple species as for for backlogged those studies these cohort smaller of that around were world, cue a the studies. it a simply the some and that are access species of or pushing is of animals to limited

access queue, have slowly So we lot and companies those I of and we're slots. other to in been getting think a

for of China, on example. in can has going lot you been So as work this imagine, a

impact. the we're of slots And that of been DC. access have I and for top an as our also some it, had to But feel our current on restrictions around COVID-XX we, we mentioned, have have imposed

Derik De Bruin

Or on right? It's bookend your one it's confidence just final question. for' then that what's $XXX around number XX, it's like floor 'XX Is a And basically on level in again target. million the that? the

Ramy Farid

Yes. business. we've our way it for least Well, at is $XXX collaboration the described million

to I continuing portfolio portfolio And advance. the see pretty a we So it's large as talked now. earlier,

to lead some can or least outlicensing we so said of degree not value and that to that programs is diversification any forecast through internal which capture then of do in choose obviously hit and $XXX opportunity million. confidence going million level some additional that partnering have So at we X to we're the $XXX our that have we with out if included

Operator

line Gaurav Berenberg question comes next Capital with from Your Markets. the of Goparaju

Gaurav Goparaju

may $XXX,XXX one that ACV, who Just to reported their customers guys me. that XXX customers increase versus Of new a the for are consumption them of over software quick you had many how customers versus level? that $XXX,XXX new actually exceed customers guess, are, are get consumption how exceeding just level. licenses an really customers are that to that many I idea the acquiring trying of increasing that I'm

Ramy Farid

Yes, good question.

by out, to XXXX, total active customer customer up maybe are might in the that them break materials in will know side biotech levels There customers. actually started and case that lot look included certainly new have a sizable that's And past. $XXX this formed the we as customers. the certainly, that clearly, some those levels don't were but And new the new relative are to I the continues -- I signed million, the at and at that list if we on there that's are new some customers. of increase. come companies know at that's definitely that count customers seeing in say dominated So in those, you of customers, we fairly we're of interestingly, and

customers the our getting on Although well. largest pretty side material large are as

both. is play as and group. large our role broader customers said, in also upsizing But it So a largest does I this among really,

Gaurav Goparaju

And Got then piggybacking I guess it. off right. just of that,

I new come ACV of you large in? regardless increasing Just year-to-year? ACV are customers gradually generally, a with size, are seeing are guess, in, just or coming their on coming average, they in And they

Ramy Farid

That's interesting.

Joel Lebowitz

[Indiscernible].

Ramy Farid

ahead, Joe. Go

it. take You

Joel Lebowitz

Oh, sorry.

Ramy Farid

please No, no, ahead, ahead. go Joe. No, go

Joel Lebowitz

came higher much the I in had customers said year there level as examples that to we've just they we -- But Okay. of I think they it than that upsize. new years typically have seen that gradually at before, really a this couple I case. question answered start ago lower start to would then where say depends that was going been and were a we because

and of I people will higher X to discovery than in the you know, had sometimes their are understanding Rami, there's Now things they at build the don't have and where I in lower power as are around they upsize. broad there achieve the as of form to move people levels or past. clearly, in that they efforts, out But if And think add. smaller marketplace the the And come success been we'll range. technology. program of X as new companies, the companies initiation end need continue other our programs a

Ramy Farid

-- That's exactly was I what exactly.

Gaurav Goparaju

Perfect. and And luck, congrats, again, of best Joel, Karen.

Operator

call. no time. further conference this This questions at concludes I'm showing today's

may You disconnect. now

Schrödinger (SDGR) 25 Feb 222021 Q4 Earnings call transcript