Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Document And Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39206 | |
Entity Registrant Name | Schrodinger, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4284541 | |
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 $0.01 per share | |
Trading Symbol | SDGR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001490978 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 62,868,572 | |
Limited common stock | ||
Document And Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,164,193 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 249,378 | $ 90,474 |
Restricted cash | 6,230 | 5,243 |
Marketable securities | 246,905 | 360,613 |
Accounts receivable, net of allowance for doubtful accounts of $150 and $125 | 19,884 | 55,953 |
Unbilled and other receivables, net for allowance for unbilled receivables of $100 and $100 | 12,253 | 13,137 |
Prepaid expenses | 13,111 | 8,569 |
Total current assets | 547,761 | 533,989 |
Property and equipment, net | 22,498 | 14,244 |
Equity investments | 91,863 | 25,683 |
Goodwill | 4,791 | 4,791 |
Intangible assets, net | 0 | 587 |
Right of use assets - operating leases | 119,822 | 105,982 |
Other assets | 7,413 | 3,311 |
Total assets | 794,148 | 688,587 |
Current liabilities: | ||
Accounts payable | 10,318 | 9,470 |
Income taxes payable | 1,084 | 355 |
Accrued payroll, taxes, and benefits | 25,508 | 24,882 |
Deferred revenue | 43,313 | 57,931 |
Lease liabilities - operating leases | 16,279 | 11,006 |
Other accrued liabilities | 8,536 | 5,166 |
Total current liabilities | 105,038 | 108,810 |
Deferred revenue, long-term | 12,102 | 25,598 |
Lease liabilities - operating leases, long-term | 112,720 | 105,485 |
Other liabilities, long-term | 707 | 800 |
Total liabilities | 230,567 | 240,693 |
Commitments and contingencies (Note 5) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Additional paid-in capital | 871,100 | 828,700 |
Accumulated deficit | (307,748) | (379,138) |
Accumulated other comprehensive loss | (491) | (2,382) |
Total stockholders' equity | 563,581 | 447,894 |
Total liabilities and stockholders' equity | 794,148 | 688,587 |
Common Stock | ||
Stockholders' equity: | ||
Common and Limited Stock | 628 | 622 |
Limited common stock | ||
Stockholders' equity: | ||
Common and Limited Stock | $ 92 | $ 92 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts receivable | $ 150 | $ 125 |
Allowance for unbilled receivable | $ 100 | $ 100 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock | ||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 62,823,295 | 62,163,739 |
Common stock, shares outstanding | 62,823,295 | 62,163,739 |
Limited common stock | ||
Common stock, par value (in USD per share) | $ 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Total revenues | $ 42,569 | $ 36,980 | $ 142,540 | $ 124,112 |
Cost of revenues: | ||||
Total cost of revenues | 18,930 | 19,779 | 59,398 | 61,794 |
Gross profit | 23,639 | 17,201 | 83,142 | 62,318 |
Operating expenses: | ||||
Research and development | 46,833 | 32,885 | 130,279 | 91,830 |
Sales and marketing | 9,109 | 7,161 | 27,276 | 21,260 |
General and administrative | 23,890 | 23,318 | 73,414 | 67,507 |
Total operating expenses | 79,832 | 63,364 | 230,969 | 180,597 |
Loss from operations | (56,193) | (46,163) | (147,827) | (118,279) |
Other (expense) income | ||||
(Loss) gain on equity investments | 0 | (3) | 147,322 | 11,825 |
Change in fair value | (14,522) | 5,273 | 61,869 | (16,591) |
Other income | 5,804 | 1,234 | 13,067 | 1,265 |
Total other (expense) income | (8,718) | 6,504 | 222,258 | (3,501) |
(Loss) income before income taxes | (64,911) | (39,659) | 74,431 | (121,780) |
Income tax (benefit) expense | (2,887) | 194 | 3,041 | 199 |
Net (loss) income | $ (62,024) | $ (39,853) | $ 71,390 | $ (121,979) |
Earnings Per Share [Abstract] | ||||
Net (loss) income per share of common and limited common stockholders, basic: (in USD per share) | $ (0.86) | $ (0.56) | $ 1 | $ (1.71) |
Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, basic: (in shares) | 71,924,451 | 71,207,992 | 71,679,765 | 71,140,682 |
Net (loss) income per share of common and limited common stockholders, diluted: (in USD per share) | $ (0.86) | $ (0.56) | $ 0.95 | $ (1.71) |
Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, diluted: (in shares) | 71,924,451 | 71,207,992 | 74,966,791 | 71,140,682 |
Software products and services | ||||
Revenues: | ||||
Total revenues | $ 28,904 | $ 24,667 | $ 90,469 | $ 87,759 |
Cost of revenues: | ||||
Total cost of revenues | 7,034 | 6,866 | 20,844 | 21,478 |
Drug discovery | ||||
Revenues: | ||||
Total revenues | 13,665 | 12,313 | 52,071 | 36,353 |
Cost of revenues: | ||||
Total cost of revenues | $ 11,896 | $ 12,913 | $ 38,554 | $ 40,316 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (62,024) | $ (39,853) | $ 71,390 | $ (121,979) |
Changes in market value of investments, net of tax: | ||||
Unrealized gain (loss) on marketable securities | 192 | (283) | 1,891 | (3,035) |
Comprehensive (loss) income | $ (61,832) | $ (40,136) | $ 73,281 | $ (125,014) |
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 (loss) gain |
Beginning balance (in shares) at Dec. 31, 2021 | 61,834,515 | 9,164,193 | ||||
Beginning balance at Dec. 31, 2021 | $ 557,071 | $ 618 | $ 92 | $ 786,964 | $ (229,952) | $ (651) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | (2,006) | (2,006) | ||||
Issuances of common stock upon stock option exercises (in shares) | 137,885 | |||||
Issuances of common stock upon stock option exercises | 908 | $ 2 | 906 | |||
Stock-based compensation | 9,134 | 9,134 | ||||
Net (loss) income | (34,440) | (34,440) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 61,972,400 | 9,164,193 | ||||
Ending balance at Mar. 31, 2022 | 530,667 | $ 620 | $ 92 | 797,004 | (264,392) | (2,657) |
Beginning balance (in shares) at Dec. 31, 2021 | 61,834,515 | 9,164,193 | ||||
Beginning balance at Dec. 31, 2021 | 557,071 | $ 618 | $ 92 | 786,964 | (229,952) | (651) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | (3,035) | |||||
Net (loss) income | (121,979) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 62,067,768 | 9,164,193 | ||||
Ending balance at Sep. 30, 2022 | 463,110 | $ 620 | $ 92 | 818,015 | (351,931) | (3,686) |
Beginning balance (in shares) at Mar. 31, 2022 | 61,972,400 | 9,164,193 | ||||
Beginning balance at Mar. 31, 2022 | 530,667 | $ 620 | $ 92 | 797,004 | (264,392) | (2,657) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | (746) | (746) | ||||
Issuances of common stock upon stock option exercises (in shares) | 54,661 | |||||
Issuances of common stock upon stock option exercises | 396 | 396 | ||||
Stock-based compensation | 10,427 | 10,427 | ||||
Net (loss) income | (47,686) | (47,686) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 62,027,061 | 9,164,193 | ||||
Ending balance at Jun. 30, 2022 | 493,058 | $ 620 | $ 92 | 807,827 | (312,078) | (3,403) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | (283) | (283) | ||||
Issuances of common stock upon stock option exercises (in shares) | 40,707 | |||||
Issuances of common stock upon stock option exercises | 324 | 324 | ||||
Stock-based compensation | 9,864 | 9,864 | ||||
Net (loss) income | (39,853) | (39,853) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 62,067,768 | 9,164,193 | ||||
Ending balance at Sep. 30, 2022 | 463,110 | $ 620 | $ 92 | 818,015 | (351,931) | (3,686) |
Beginning balance (in shares) at Dec. 31, 2022 | 62,163,739 | 9,164,193 | ||||
Beginning balance at Dec. 31, 2022 | 447,894 | $ 622 | $ 92 | 828,700 | (379,138) | (2,382) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | 1,483 | 1,483 | ||||
Issuances of common stock upon stock option exercises (in shares) | 186,201 | |||||
Issuances of common stock upon stock option exercises | 867 | $ 1 | 866 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 12,075 | |||||
Stock-based compensation | 10,880 | 10,880 | ||||
Net (loss) income | 129,136 | 129,136 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 62,362,015 | 9,164,193 | ||||
Ending balance at Mar. 31, 2023 | 590,260 | $ 623 | $ 92 | 840,446 | (250,002) | (899) |
Beginning balance (in shares) at Dec. 31, 2022 | 62,163,739 | 9,164,193 | ||||
Beginning balance at Dec. 31, 2022 | 447,894 | $ 622 | $ 92 | 828,700 | (379,138) | (2,382) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | 1,891 | |||||
Net (loss) income | 71,390 | |||||
Ending balance (in shares) at Sep. 30, 2023 | 62,823,295 | 9,164,193 | ||||
Ending balance at Sep. 30, 2023 | 563,581 | $ 628 | $ 92 | 871,100 | (307,748) | (491) |
Beginning balance (in shares) at Mar. 31, 2023 | 62,362,015 | 9,164,193 | ||||
Beginning balance at Mar. 31, 2023 | 590,260 | $ 623 | $ 92 | 840,446 | (250,002) | (899) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | 216 | 216 | ||||
Issuances of common stock upon stock option exercises (in shares) | 340,229 | |||||
Issuances of common stock upon stock option exercises | 4,698 | $ 4 | 4,694 | |||
Stock-based compensation | 11,773 | 11,773 | ||||
Net (loss) income | 4,278 | 4,278 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 62,702,244 | 9,164,193 | ||||
Ending balance at Jun. 30, 2023 | 611,225 | $ 627 | $ 92 | 856,913 | (245,724) | (683) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in unrealized gain (loss) on marketable securities | 192 | 192 | ||||
Issuances of common stock upon stock option exercises (in shares) | 119,885 | |||||
Issuances of common stock upon stock option exercises | 1,534 | $ 1 | 1,533 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,166 | |||||
Stock-based compensation | 12,654 | 12,654 | ||||
Net (loss) income | (62,024) | (62,024) | ||||
Ending balance (in shares) at Sep. 30, 2023 | 62,823,295 | 9,164,193 | ||||
Ending balance at Sep. 30, 2023 | $ 563,581 | $ 628 | $ 92 | $ 871,100 | $ (307,748) | $ (491) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net (loss) income | $ 71,390 | $ (121,979) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Gain on equity investments | (147,322) | (11,825) |
Fair value adjustments | (61,869) | 16,591 |
Depreciation and amortization | 4,198 | 3,202 |
Stock-based compensation | 35,307 | 29,425 |
Noncash investment (accretion) amortization | (4,962) | 2,102 |
Loss on disposal of property and equipment | 140 | 14 |
Decrease (increase) in assets, net of acquisition: | ||
Accounts receivable, net | 36,069 | 8,673 |
Unbilled and other receivables | 884 | (3,272) |
Reduction in the carrying amount of right of use assets - operating leases | 5,722 | 4,812 |
Prepaid expenses and other assets | (13,048) | (6,837) |
Increase (decrease) in liabilities, net of acquisition: | ||
Accounts payable | 742 | 1,959 |
Income taxes payable | 729 | 638 |
Accrued payroll, taxes, and benefits | 626 | 499 |
Deferred revenue | (28,114) | (19,535) |
Lease liabilities - operating leases | (2,577) | 920 |
Other accrued liabilities | 2,607 | (128) |
Net cash used in operating activities | (99,478) | (94,741) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (10,924) | (6,668) |
Purchases of equity investments | (4,125) | (600) |
Distribution from equity investment | 147,136 | 11,825 |
Acquisition, net of acquired cash | 0 | (6,427) |
Purchases of marketable securities | (224,513) | (203,375) |
Proceeds from maturity of marketable securities | 345,074 | 283,711 |
Net cash provided by investing activities | 252,648 | 78,466 |
Cash flows from financing activities: | ||
Issuances of common stock upon stock option exercises | 7,099 | 1,628 |
Principal payments on finance leases | (5) | 0 |
Payment of offering costs | (373) | 0 |
Net cash provided by financing activities | 6,721 | 1,628 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 159,891 | (14,647) |
Cash and cash equivalents and restricted cash, beginning of period | 95,717 | 123,267 |
Cash and cash equivalents and restricted cash, end of period | 255,608 | 108,620 |
Supplemental disclosure of cash flow and noncash information | ||
Cash paid for income taxes | 2,194 | 462 |
Supplemental disclosure of non-cash investing and financing activities | ||
Purchases of property and equipment in accounts payable | 274 | 198 |
Purchases of property and equipment in accrued liabilities | 685 | 109 |
Acquisition of right of use assets - operating leases, contingency resolution | 514 | 1,513 |
Acquisition of right of use assets - operating leases in exchange for lease liabilities - operating leases | 15,085 | 14,767 |
Acquisition of right of use assets in exchange for lease liabilities - finance leases | $ 279 | $ 0 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of BusinessSchrödinger, Inc. (the “Company”) has developed a differentiated, physics-based computational 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's software platform is licensed by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. 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 partnered and wholly-owned drug discovery programs, which the Company refers to as its proprietary drug discovery programs. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Basis of Presentation and Use of Estimates 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 U.S. 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, 2022, which was filed with the SEC on February 28, 2023. 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 and estimates regarding the progress of completing performance obligations under collaboration agreements. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. (b) Principles of Consolidation 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. (c) Restricted Cash 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. Additionally, funds received from certain grants are restricted as to their use and are therefore classified as restricted cash. (d) Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables and contract assets, which represent contracted unbilled 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 September 30, 2023, three customers accounted for more than 10% of total accounts receivable. As of December 31, 2022, one customer accounted for 26% of total accounts receivable. As of September 30, 2023, two customers accounted for 32% and 23% of total contract assets, respectively. As of December 31, 2022, two customers accounted for 23% and 17% of total contract assets, respectively. For the three months ended September 30, 2023, one customer accounted for 28% of total revenue. For the nine months ended September 30, 2023, one customer accounted for 29% of total revenue. For the three months ended September 30, 2022, one customer accounted for 28% of total revenue. For the nine months ended September 30, 2022, one customer accounted for 17% of total revenue. (e) Income Taxes 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. (f) Equity Investments 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. If the investee is consolidated with the Company and less than 100% of the equity is owned by the Company, the Company will present non-controlling interest to represent the portion of the investee owned by other investors. If it is determined that the Company does not have control over the investee, the Company evaluates the investment for the ability to exercise significant influence. Equity investments over which the Company has significant influence may be accounted for under equity method accounting in accordance with Accounting Standards Codification ("ASC") Topic 323, Equity Method and Joint Ventures . If it is determined that the Company does not have significant influence over the investee, and there is no readily determinable fair value for the investment, the equity investment may be accounted for at cost less impairment, in accordance with ASC Topic 321, Equity Securities . For further information regarding the Company’s equity investments, see Note 4, Fair Value Measurements and Note 10, Equity Investments. (g) Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders 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 income (loss) attributable to common and limited common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common and limited common stockholders by the weighted-average number of shares of common and limited common stock outstanding during the period. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 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, which can result in different revenue recognition patterns. The following table illustrates the timing of the Company’s revenue recognition patterns: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Software products and services – point in time 37.0 % 34.1 % 36.8 % 41.9 % Software products and services – over time 30.9 32.6 26.6 28.8 Drug Discovery – point in time — 2.7 19.1 9.4 Drug Discovery – over time 32.1 30.6 17.5 19.9 (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. The Company has elected the practical expedient to not assess for significant financing where the term is less than one year. The Company’s updates and upgrades are not integral to maintaining the utility of the software licenses. Payments typically are received upfront or annually. Hosted software. Hosted software revenue consists primarily of fees to provide the Company’s customers with hosted licenses, which allows these customers to access the Company’s cloud-based software solution on their own hardware without taking control of licenses. Hosted software revenue 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 include 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. These services are generally 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 contribution revenue. Software contribution revenue consists of funds received under a non-reciprocal agreement with Gates Ventures, LLC. The agreement is an unconditional non-exchange contribution without restrictions. Revenue was recognized upon execution of the agreement, on the first and second anniversary of the agreement, and upon extension of the agreement when invoiced in accordance with ASC Topic 958, Not-for-Profit Entities as the agreement was not an exchange transaction. The agreement with Gates Ventures, LLC initially covered 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 into the agreement and $1,000 upon each of the first and second anniversary of the agreement. During the three months ended September 30, 2023, the agreement was extended through August 13, 2026 and provides for total additional consideration of up to $6,000. The Company recognized revenue of $1,800 upon extension of the agreement. As of September 30, 2023, the Company had no deferred revenue balance related to this agreement. As of September 30, 2023, the Company had $1,800 of 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 On-premise software $ 13,806 $ 12,579 $ 50,564 $ 50,860 Hosted software 5,463 3,914 14,366 10,765 Software maintenance 5,752 5,063 17,378 14,741 Professional services 2,083 3,111 6,361 10,393 Revenue from contracts with customers 27,104 24,667 88,669 86,759 Software contribution 1,800 — 1,800 1,000 Total software revenue $ 28,904 $ 24,667 $ 90,469 $ 87,759 (b) Drug Discovery Drug discovery services. Revenue from drug discovery and collaboration services contracts is recognized either over time or at a point in time, typically by using costs incurred, hours expended to measure progress, or based on the achievement of milestones. Payments for services are generally due upfront at the start of a contract, upon achieving milestones stated in a contract, or upon consumption of resources. Services may at times include variable consideration, and 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. Upon removal of the constraint on variable consideration, revenue may be recognized at a point in time by applying the allocation guidance of ASC Topic 606, Revenue from Contracts with Customers ("Topic 606"). As of September 30, 2023, there were no milestones not yet achieved that were determined to be probable of achievement, and no corresponding drug discovery milestone revenue was recognized for the nine months ended September 30, 2023. As of September 30, 2022, milestones not yet achieved that were determined to be probable of achievement totaled $2,000, of which $2,000 was recognized as drug discovery milestone revenue for the nine months ended September 30, 2022. Drug discovery contribution revenue . Drug discovery contribution revenue consists of funds received under an agreement with the Bill and Melinda Gates Foundation on a cost reimbursement basis, to perform services aimed at accelerating drug discovery in women’s health. The initial agreement began in November 2021 and expired in September 2023. In September 2023, the Company entered into a new agreement with the Bill and Melinda Gates Foundation to perform services aimed at accelerating drug discovery in women's health that expires in March 2025. Revenue is recognized as conditions are met in accordance with ASC Topic 958, Not-for-Profit Entities. As of September 30, 2023 and December 31, 2022, the Company had deferred revenue balances related to these agreements of $2,098 and $1,718, respectively. The following table presents the revenue recognized from the sources of drug discovery revenue: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Drug discovery services revenue from contracts with customers $ 12,730 $ 11,717 $ 49,765 $ 34,976 Drug discovery contribution 935 596 2,306 1,377 Total drug discovery revenue $ 13,665 $ 12,313 $ 52,071 $ 36,353 (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. Under the agreement, the Company was initially responsible, at its own cost and expense, for the discovery of small molecule compounds directed to five specified biological targets pursuant to a mutually agreed research plan for each such target. The initial targets included HIF-2 alpha and SOS1/KRAS, which were two of the Company’s wholly-owned 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. In September 2022, BMS elected not to proceed with further development of another target and all rights to this program reverted to the Company, which increased revenue recognition in the third quarter of 2022 due to the accelerated completion of the Company's obligations related to the program. In December 2022, the Company and BMS entered into an amendment to the agreement to include an additional target in neurology on terms similar to the original agreement. 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. In September 2023, BMS elected not to proceed with further development of two related oncology programs and all rights to these programs reverted to the Company, which increased revenue recognition in the third quarter of 2023 due to the accelerated completion of the Company's obligations related to those programs. Under the terms of the agreement, as amended, BMS paid the Company an initial upfront fee payment of $55.0 million in November 2020 and an additional upfront payment in December 2022. The Company also is eligible to receive up to $1.5 billion in total milestone payments across the remaining potential targets subject to the collaboration, consisting of: a) up to $585.0 million in milestone payments per oncology target, consisting of $360.0 million in the aggregate for the achievement of certain specified research, development, and regulatory milestones and $225.0 million in the aggregate for the achievement of certain specified commercial milestones; and b) up to $489.0 million in milestone payments per neurology and immunology target, consisting of $264.0 million in the aggregate for the achievement of certain specified research, development, and regulatory milestones and $225.0 million in the aggregate for the achievement of certain specified commercial milestones. As of September 30, 2023, the Company had recognized $25.0 million in revenue related to milestones under this agreement. 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 Topic 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 initially covered 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 $55.0 million. 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 $55.0 million 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 nine months ended September 30, 2023, the Company recognized $11.2 million and $40.0 million of revenue, respectively, associated with the agreement based on the research activities performed and milestones achieved. During the three and nine months ended September 30, 2022, the Company recognized $9.9 million and $19.3 million, respectively, associated with the agreement based on the research activities performed. As of September 30, 2023 and December 31, 2022, there was $10.5 million and $25.5 million, respectively, 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. As of September 30, 2023, the Company had no outstanding receivables for this collaboration. As of December 31, 2022, the Company had $8.0 million of outstanding receivables for this collaboration. (d) Significant Judgments Significant judgments and estimates are required under 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. For collaborative arrangements, under which the Company is eligible to receive variable consideration in the form of milestones payments, judgment is required to evaluate whether the milestones are considered probable of being achieved. If it is probable that a significant revenue reversal would not occur, the constraint is removed and value of the associated milestone is included in the estimated transaction price using the most likely amount method based on contractual requirements and historical experience. 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 consistent with the allocation objectives of Topic 606. 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 may 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 As of Contract assets $ 13,161 $ 11,378 Deferred revenue, short-term: Software products and services 29,583 37,085 Drug discovery 13,730 20,846 Deferred revenue, long-term: Software products and services 2,590 2,526 Drug discovery 9,512 23,072 For the three and nine months ended September 30, 2023 and 2022, the Company recognized $25,439, $55,807, $22,621, and $51,816 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 78% of its September 30, 2023 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 $18,672 as of September 30, 2023. 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. The Company has not capitalized any costs related to sales commissions. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements 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 did not differ significantly from carrying value as of September 30, 2023 and December 31, 2022. The following table presents information about the Company’s assets measured at fair value as of September 30, 2023: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents and restricted cash $ 255,608 $ — $ — $ 255,608 Marketable securities — 246,905 — 246,905 Equity investments 87,793 — 2,370 90,163 Total $ 343,401 $ 246,905 $ 2,370 $ 592,676 The following table presents information about the Company’s assets measured at fair value as of December 31, 2022: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents and restricted cash $ 95,717 $ — $ — $ 95,717 Marketable securities — 360,613 — 360,613 Equity investments 22,335 — 1,629 23,964 Total $ 118,052 $ 360,613 $ 1,629 $ 480,294 The following table sets forth changes in fair value of the Company’s Level 3 investments: Amount As of December 31, 2021 $ 1,887 Cash contributions 600 Unrealized loss (858) As of December 31, 2022 1,629 Realized gain 147,322 Cash distributions (111,328) Transfer to Level 1 (1,629) As of March 31, 2023 35,994 Cash distributions (35,789) As of June 30, 2023 205 Unrealized gain 2,165 As of September 30, 2023 $ 2,370 The fair value of the Company’s investment in Nimbus Therapeutics, LLC (“Nimbus”), classified as Level 3 in the fair value hierarchy, was recorded as an equity method investment under ASC Topic 323, Investments - Equity Method and Joint Ventures, using the hypothetical liquidated book value method (“HLBV method”) through June 30, 2023, as further described in Note 10, Equity Investments. Significant unobservable inputs used to determine Nimbus’ fair value under the HLBV method were the entity's annual financial statements and the Company’s liquidation preference. During the three months ended March 31, 2023, the Company recorded a gain of $147,322 on account of its equity position in Nimbus following the closing of Takeda's acquisition of Nimbus Lakshmi, Inc., a wholly-owned subsidiary of Nimbus, and its tyrosine kinase 2 inhibitor, NDI-034858. On February 13, 2023, the Company reported receipt of a $111,328 cash distribution from Nimbus related to the sale. On April 6, 2023, the Company reported receipt of a $35,789 cash distribution from Nimbus related to the sale. The realized gain on Level 3 investment as of June 30, 2023 relates to an additional expected cash receipt of $205 from Nimbus. Following the dilution of the Company's investment in Nimbus during the three months ended September 30, 2023, the fair value of the Company's investment is recorded under ASC Topic 321 ("Topic 321"), Investments - Equity Securities as a non-marketable equity security as the Company no longer exercises significant influence over Nimbus. This change in accounting method resulted in an unrealized gain of $2,165. During the three months ended March 31, 2023, the Company recorded a transfer from a Level 3 investment to a Level 1 investment due to the completion of Structure Therapeutics Inc.'s, ("Structure Therapeutics"), initial public offering ("IPO"). The Company's investment in Structure Therapeutics was previously recorded using the HLBV method. Following the completion of Structure Therapeutics' IPO, the Company's investment in Structure Therapeutics is recorded under Topic 321 because there is an observable price of the investment . During the year ended December 31, 2022 there were no transfers between Level 1, Level 2 and Level 3 investments. 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. Realized gains arising from distributions receivable from the Company's equity investments are classified within gain on equity investments in the condensed consolidated statements of operations. For further information regarding the Company’s equity investments, see Note 10, Equity Investments. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Leases The Company has multiple operating leases for office space and a finance lease for equipment 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 , to exclude short-term leases from the balance sheet and to combine lease and non-lease components. The Company classifies finance lease right of use assets under property and equipment, net and finance short-term and long-term lease liabilities under other accrued liabilities and other liabilities, long-term, respectively. Upon inception of a lease, the Company determines if an arrangement is a lease, if it is classified as an operating or finance 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 September 30, 2023, the remaining weighted average lease term for operating and finance leases was 12 years. During the nine months ended September 30, 2023, operating lease right of use assets increased by $15,085 due to the accounting commencement of new leases and by $4,388 due to contingency resolutions associated with office leases. During the nine months ended September 30, 2023, operating lease liabilities increased by $15,085 due to the accounting commencement of new leases. During the nine months ended September 30, 2023, finance lease right of use assets and lease liabilities each increased by $279 due to the accounting commencement of an equipment lease for our Framingham, Massachusetts lab. Variable and short-term lease costs for the Company's operating and finance leases were immaterial for the nine months ended September 30, 2023. Additional details of the Company’s operating and finance leases are presented in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Lease costs $ 4,393 $ 3,151 $ 12,318 $ 8,441 Cash paid for leases 3,229 992 8,789 2,293 Maturities of operating and finance lease liabilities as of September 30, 2023 under noncancelable periods were as follows: Year ending December 31: Remainder of 2023 $ 3,710 2024 17,476 2025 17,535 2026 17,222 2027 16,054 Thereafter 127,005 Total future minimum lease payments 199,002 Less: imputed interest (69,722) Present value of future minimum lease payments 129,280 Less: current portion of lease payments 16,353 Lease liabilities, long-term $ 112,927 (b) Legal Matters 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. (c) Contingencies The Company is currently under audit with a royalty partner. As of September 30, 2023, the Company believes a contingency is probable, but not material. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period. For the three months ended September 30, 2023, the Company’s income tax benefit was $2,887. For the nine months ended September 30, 2023, the Company’s income tax expense was $3,041. For the three and nine months ended September 30, 2022, the Company's income tax expense was $194 and $199, respectively. For the three and nine months ended September 30, 2023, the difference between the effective rate and the statutory rate was primarily attributed to the application of research and development credits and 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 September 30, 2023, the Company had $2,658 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 September 30, 2023, the Company’s statutes of limitations are open for all federal and state tax returns filed after the years ended December 31, 2018 and 2017, respectively. Net operating loss (“NOL”) and credit carryforwards from all years are subject to examination and adjustments for the three years following the year in which the carryforwards are utilized. The Company is not currently under Internal Revenue Service or state examination. Pursuant to Internal Revenue Code Sections 382 and 383, the utilization of NOLs and other tax attributes may be substantially limited due to cumulative changes in ownership greater than 50% that may have occurred or could occur during applicable testing periods. The Company has performed an analysis through December 31, 2022 and determined that such an ownership change occurred on March 31, 2021. There was no material impact to the financial statements due to this ownership change. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity (a) Common Stock As of September 30, 2023, the Company had authorized 500,000,000 shares of common stock with a par value of $0.01 per share. Holders of common stock are entitled to one vote per share, to receive dividends, if and when declared by the board of directors, and upon liquidation or dissolution, to receive a portion of the assets available for distributions to stockholders, subject to preferential amounts owed to holders of the Company’s preferred stock, if any. Common stockholders have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. The rights, preferences and privileges of holders of the common stock are subject to and may be adversely affected by the right of the holders of shares of any series of preferred stock that the Company may designate and issue in the future. (b) Limited Common Stock As of September 30, 2023, 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) Preferred Stock As of September 30, 2023, 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 | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Incentive Plans As of September 30, 2023, 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, as amended (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 to employees, directors, consultants or advisors. As of June 15, 2022, the effective date of the 2022 Plan, no further awards will be made under the 2020 Plan. Any options or awards outstanding under the 2020 Plan remain outstanding and effective. 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 September 30, 2023 and December 31, 2022, there were 3,430,664 and 5,470,240 shares available for grant under the Plans, respectively. The following table presents classification of stock-based compensation expense within the unaudited condensed consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 1,234 $ 1,360 $ 3,922 $ 4,175 Research and development 4,101 3,026 11,422 8,585 Sales and marketing 914 728 2,705 1,951 General and administrative 6,405 4,750 17,258 14,714 Total stock-based compensation $ 12,654 $ 9,864 $ 35,307 $ 29,425 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% of the grants vesting at the end of the first year and the remaining vesting annually over the following three years. There were 33,285, 748,265, zero, and 48,700 RSUs granted during the three and nine months ended September 30, 2023 and 2022, respectively. The weighted average grant date fair value for each RSU granted during the three and nine months ended September 30, 2023 and 2022 was $41.08, $26.07, zero, and $27.76, respectively. As of September 30, 2023, there was $16,663 of unrecognized compensation cost related to RSUs granted under the Plans, which is expected to be recognized over a weighted average period of 3.14 years. During the three and nine months ended September 30, 2023 1,166 and 13,241 RSUs vested, respectively. The fair value of RSUs vested during the three and nine months ended September 30, 2023 was $62 and $355, respectively. No RSUs vested during the three and nine months ended September 30, 2022. Performance-Based Restricted Stock Units In February 2023, the Company awarded performance-based restricted stock units ("PRSUs") under the 2022 Plan. Each PRSU represents a contingent right to receive one share of common stock upon the achievement of specified performance goals. The fair value of PRSUs 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 when the grant date is determined and performance conditions are probable of achievement. At the point where performance conditions are considered probable of achievement, the Company records stock-based compensation expense with a cumulative catch-up expense in the period first recognized and on a straight-line basis over the remaining period for which the performance criteria are expected to be completed. In March 2023, the Company awarded to certain executive officers PRSUs for a maximum of 62,693 shares (based on 150% achievement of the applicable performance conditions outlined in the awards), with a target award of 41,795 PRSUs (based on 100% achievement of the applicable performance conditions), and a threshold award of 20,898 PRSUs (based on 50% achievement of the applicable performance conditions). All PRSUs were considered granted under ASC 718, Compensation—Stock Compensation ("Topic 718"). The PRSUs granted in March 2023 are scheduled to vest, if at all, upon the certification by the Company's compensation committee of the achievement of the applicable performance conditions following the filing of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2025. In August 2022, the Company awarded 90,000 PRSUs to an executive officer of which 30,150 PRSUs were considered granted under Topic 718 at the time the PRSUs were awarded. In March 2023, of the 90,000 PRSUs awarded in August 2022, an additional 45,000 PRSUs were considered granted under Topic 718. Of the 45,000 PRSUs that were considered granted in March 2023, 18,000 PRSUs are scheduled to vest, if at all, upon the certification by the Company's compensation committee of the achievement of the applicable performance conditions following the filing of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2023 and 27,000 PRSUs are scheduled to vest, if at all, upon the certification by the Company's compensation committee of the achievement of the applicable performance conditions following the filing of the Company's Annual Report on Form 10-K for the fiscal year ending December 31, 2025. The weighted average grant date fair value for each PRSU granted during the three and nine months ended September 30, 2023 and 2022 was zero, $22.48, $28.55, and $28.55, respectively. No PRSUs vested during the three and nine months ended September 30, 2023 and 2022. 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 date 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% of the shares underlying the option vesting at the end of the first year and the remaining vesting monthly over the following three years. In February 2023, the Company granted the chief executive officer a premium priced option to purchase 65,525 shares of common stock with an exercise price equal to 110% of the closing price of the Company's common stock on the date of grant. During the three and nine months ended September 30, 2023 and 2022, 119,885, 646,315, 40,707, and 233,253 options under the Plans were exercised for total proceeds of $1,534, $7,099, $324, and $1,628, 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 2023 and 2022 were calculated using an average of historical exercises. Estimated volatility for the nine months ended September 30, 2023 and 2022 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: Nine Months Ended September 30, 2023 2022 Valuation assumptions Expected dividend yield — % — % Expected volatility 67 % 56 % Expected term (years) 4.98 4.77 Risk-free interest rate 3.80 % 2.02 % The weighted average grant date fair value per share of options granted during the three and nine months ended September 30, 2023 and 2022 was $24.75, $15.99, $15.52, and $13.74, respectively. The intrinsic value of options exercised during the three and nine months ended September 30, 2023 and 2022 was $2,835, $14,140, $859, and $5,145, respectively. As of September 30, 2023, there was $74,044 of unrecognized compensation cost related to unvested stock options granted under the Plans, which is expected to be recognized over a weighted average period of 2.25 years. The fair value of shares vested during the three and nine months ended September 30, 2023 and 2022 was $9,991, $37,858, $7,016, and $36,720, respectively. |
Net (Loss) Income per Share Att
Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders | Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders The following table presents the calculation of basic and diluted net (loss) income 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net (loss) income attributable to Schrödinger common and limited common stockholders $ (62,024) $ (39,853) $ 71,390 $ (121,979) Denominator: Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, basic: 71,924,451 71,207,992 71,679,765 71,140,682 Effect of the exercise of common stock options and vested RSUs on weighted average common and limited common shares — — 3,287,026 — Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, diluted: 71,924,451 71,207,992 74,966,791 71,140,682 Net (loss) income per share of common and limited common stockholders, basic: $ (0.86) $ (0.56) $ 1.00 $ (1.71) Net (loss) income per share of common and limited common stockholders, diluted: $ (0.86) $ (0.56) $ 0.95 $ (1.71) For the nine months ended September 30, 2023, in order to calculate diluted net income per share, the weighted average shares used to compute net income is adjusted by the effect of dilutive securities, including awards under the Plans. Diluted net income per share is computed by dividing the resulting net income by the weighted average number of fully diluted common and limited shares outstanding. Since the Company was in a loss position for the three months ended September 30, 2023 and the three and nine months ended September 30, 2022, 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares subject to outstanding common stock options and RSUs 12,243,352 10,932,612 6,192,747 10,932,612 |
Equity Investments
Equity Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Investments | Equity Investments (a) Nimbus The Company provides collaboration services for Nimbus under the terms of a master services agreement executed on May 18, 2010, as amended. Collaboration agreements are separate from the transaction that resulted in equity ownership and related fees are paid in cash to the Company. Nimbus was previously recorded as an equity method investment under the HLBV method, as the entity is a limited liability company and the Company was determined to have significant influence due to the Company's collaboration with Nimbus on a number of drug discovery targets, as well as the Company's level of ownership in Nimbus. During the three months ended September 30, 2023, the Company's equity ownership in Nimbus was diluted to the point that the Company no longer has significant influence over the entity. As the Company no longer has significant influence over Nimbus, after June 30, 2023, the equity investment in Nimbus is valued as a non-marketable equity security. The carrying value of the Nimbus investment was $2,370 and zero as of September 30, 2023 and December 31, 2022, respectively. The Company has no obligation to fund Nimbus losses in excess of its initial investment. For the three months ended September 30, 2023, the Company reported a gain of $2,165 on the Nimbus investment, which reflected the change in accounting method from an equity method investment under the HLBV method to a non-marketable equity security measured at fair value. For the nine months ended September 30, 2023, the Company reported a realized gain of $147,322 on the Nimbus investment, which reflected the total cash distribution the Company was eligible to receive from Nimbus on account of Takeda's acquisition of Nimbus Lakshmi, Inc., a wholly-owned subsidiary of Nimbus, and its tyrosine kinase 2 inhibitor NDI-034858, as well as an unrealized gain of $2,165 due to the change in accounting method. For the three and nine months ended September 30, 2022, the Company reported no gains or losses 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 nine months ended September 30, 2023, the Company reported a loss of $28,740 and $3,206 on the Morphic investment, respectively. For the three and nine months ended September 30, 2022, the Company reported a gain of $5,511 and a loss of $15,931 on the Morphic investment, respectively. As of September 30, 2023 and December 31, 2022, the carrying value of the Company’s investment in Morphic was $19,129 and $22,335, respectively. (c) 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 September 30, 2023 and December 31, 2022, the carrying value of the Company’s investment in Ajax was $1,700. (d) 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. On February 7, 2023, Structure Therapeutics completed its IPO. Immediately upon the closing of Structure Therapeutic's IPO, all of the outstanding Series B preferred stock automatically converted into ordinary shares on a one-for-one basis. As of September 30, 2023, the Company owned 3,260,495 ordinary shares of Structure Therapeutics. The Company purchased 275,000 American Depository Shares ("ADS") at $15 per ADS in the IPO. Each ADS represents three ordinary shares. Upon completion of Structure Therapeutic's IPO, the Company changed the valuation methodology used to value the Structure Therapeutics investment from an equity method investment under the HLBV method to an equity investment reported at fair value. As there is a readily available market price for Structure Therapeutics' ADSs, the Company values its investment based on the closing price of Structure Therapeutic's ADSs as of the reporting date. The carrying value of Structure Therapeutics was $68,664 and $1,629 as of September 30, 2023 and December 31, 2022, respectively. For the three and nine months ended September 30, 2023, the Company recorded a mark-to-market gain of $12,052 and $62,910, respectively, on the Structure Therapeutics investment. For the three and nine months ended September 30, 2022, the Company reported a loss of $237 and $659, respectively, on the Structure Therapeutics investment under the HLBV method. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions (a) Board Member For the three and nine months ended September 30, 2023 and 2022, the Company paid consulting fees of $105, $315, $105, and $305, respectively, to a member of its board of directors. (b) Bill and Melinda Gates Foundation 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 $63, $183, $122, and $337 for the three and nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023 and December 31, 2022, the Company had net receivables of zero and $20, respectively, due from the Bill & Melinda Gates Foundation. For the three and nine months ended September 30, 2023 and 2022, the Company recognized $935, $2,306, $595, and $1,376, respectively, in drug discovery contribution revenue related to funds received under agreements with the Bill & Melinda Gates Foundation, aimed at accelerating drug discovery in women’s health. As of September 30, 2023 and December 31, 2022, the Company had no receivables due under these agreements from the Bill & Melinda Gates Foundation. As of September 30, 2023 and December 31, 2022, restricted cash on hand related to the arrangement was $2,729 and $1,742, respectively. Gates Ventures, LLC is an entity under the 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. The Company received $1,000 in contribution revenue in connection with its entry into an agreement with Gates Ventures, LLC annually from June 2020 to June 2022. In August 2023, the Company renewed the agreement with Gates Ventures, LLC and recognized $1,800 in contribution revenue. As of September 30, 2023 and December 31, 2022, the Company had $1,800 and zero net receivables due from Gates Ventures, LLC, respectively. (c) Structure Therapeutics During the year ended December 31, 2021, the Company entered into multiple software agreements with Structure Therapeutics and its subsidiaries for approximately $650. For the three and nine months ended September 30, 2023 and 2022, the Company recognized revenue of $62, $221, $73, and $223, respectively, related to these software agreements. As of September 30, 2023 and December 31, 2022, the Company had no net receivables due from Structure Therapeutics. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | 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. Segment revenue is primarily 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Segment revenues: Software $ 28,904 $ 24,667 $ 90,469 $ 87,759 Drug discovery 13,665 12,313 52,071 36,353 Total segment revenues $ 42,569 $ 36,980 $ 142,540 $ 124,112 Segment gross profit: Software $ 21,870 $ 17,801 $ 69,625 $ 66,281 Drug discovery 1,769 (600) 13,517 (3,963) Total segment gross profit 23,639 17,201 83,142 62,318 Unallocated: Research and development (46,833) (32,885) (130,279) (91,830) Sales and marketing (9,109) (7,161) (27,276) (21,260) General and administrative (23,890) (23,318) (73,414) (67,507) (Loss) gain on equity investments — (3) 147,322 11,825 Change in fair value (14,522) 5,273 61,869 (16,591) Other income 5,804 1,234 13,067 1,265 Income tax benefit (expense) 2,887 (194) (3,041) (199) Consolidated net (loss) income $ (62,024) $ (39,853) $ 71,390 $ (121,979) Revenues by geographic area are determined based on the address provided by the Company's customers and partners. The following table sets forth revenues by geographic area for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 33,127 $ 27,470 $ 107,435 $ 84,849 APAC 5,567 4,893 18,877 15,507 EMEA 3,758 4,424 15,418 22,687 Rest of World 117 193 810 1,069 $ 42,569 $ 36,980 $ 142,540 $ 124,112 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net (loss) income | $ (62,024) | $ 4,278 | $ 129,136 | $ (39,853) | $ (47,686) | $ (34,440) | $ 71,390 | $ (121,979) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The following table describes, for the quarterly period covered by this report, each trading arrangement for the sale or purchase of our securities adopted or terminated by our directors and officers that is either (1) a contract, instruction or written plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), or a Rule 10b5-1 trading arrangement, or (2) a “non-Rule 10b5-1 trading arrangement” (as defined in Item 408(c) of Regulation S-K): Name and Title Action Taken (Date of Action) Type of Trading Arrangement Nature of Trading Arrangement Duration of Trading Arrangement Aggregate Number of Securities Yvonne Tran, Executive Vice President, Chief Legal Officer and Chief People Officer Adoption (August 8, 2023) Rule 10b5-1 trading arrangement for exercise of stock options and sales of shares Sale Until August 1, 2024, or such earlier date upon which all transactions are completed or expire without execution Up to 45,902 shares Richard Friesner, Director Adoption (August 14, 2023) Rule 10b5-1 trading arrangement for sales of shares Sale Until June 15, 2024, or such earlier date upon which all transactions are completed or expire without execution Up to 100,000 shares | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Officer Trading Arrangement [Member] | Yvonne Tran [Member] | ||
Trading Arrangements, by Individual | ||
Name | Yvonne Tran | |
Title | Executive Vice President, Chief Legal Officer and Chief People Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | Adoption(August 8, 2023) | |
Arrangement Duration | 359 days | |
Aggregate Available | 45,902 | 45,902 |
Director Trading Arrangement [Member] | Richard Friesner [Member] | ||
Trading Arrangements, by Individual | ||
Name | Richard Friesner | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | Adoption(August 14, 2023) | |
Arrangement Duration | 306 days | |
Aggregate Available | 100,000 | 100,000 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Use of Estimates | Basis of Presentation and Use of Estimates 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 U.S. 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, 2022, which was filed with the SEC on February 28, 2023. 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 and estimates regarding the progress of completing performance obligations under collaboration agreements. Actual results could differ from those estimates, and such differences may be material to the unaudited condensed consolidated financial statements. |
Principles of Consolidation | Principles of ConsolidationThe 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 | Restricted CashRestricted 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. Additionally, funds received from certain grants are restricted as to their use and are therefore classified as restricted cash. |
Concentrations | ConcentrationsFinancial instruments that potentially subject the Company to concentrations of credit risk consist primarily of trade receivables and contract assets, which represent contracted unbilled 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. |
Income Taxes | Income Taxes 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 | Equity Investments 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. If the investee is consolidated with the Company and less than 100% of the equity is owned by the Company, the Company will present non-controlling interest to represent the portion of the investee owned by other investors. If it is determined that the Company does not have control over the investee, the Company evaluates the investment for the ability to exercise significant influence. Equity investments over which the Company has significant influence may be accounted for under equity method accounting in accordance with Accounting Standards Codification ("ASC") Topic 323, Equity Method and Joint Ventures . If it is determined that the Company does not have significant influence over the investee, and there is no readily determinable fair value for the investment, the equity investment may be accounted for at cost less impairment, in accordance with ASC Topic 321, Equity Securities . For further information regarding the Company’s equity investments, see Note 4, Fair Value Measurements and Note 10, Equity Investments. |
Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders | Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders 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 income (loss) attributable to common and limited common stockholders. Basic net income (loss) per share is computed by dividing net income (loss) attributable to common and limited common stockholders by the weighted-average number of shares of common and limited common stock outstanding during the period. |
Leases | The Company has elected the package of practical expedients under the transition guidance of ASC Topic 842, Leases, to exclude short-term leases from the balance sheet and to combine lease and non-lease components. The Company classifies finance lease right of use assets under property and equipment, net and finance short-term and long-term lease liabilities under other accrued liabilities and other liabilities, long-term, respectively |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Timing of Revenue Recognition | The following table illustrates the timing of the Company’s revenue recognition patterns: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Software products and services – point in time 37.0 % 34.1 % 36.8 % 41.9 % Software products and services – over time 30.9 32.6 26.6 28.8 Drug Discovery – point in time — 2.7 19.1 9.4 Drug Discovery – over time 32.1 30.6 17.5 19.9 |
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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 On-premise software $ 13,806 $ 12,579 $ 50,564 $ 50,860 Hosted software 5,463 3,914 14,366 10,765 Software maintenance 5,752 5,063 17,378 14,741 Professional services 2,083 3,111 6,361 10,393 Revenue from contracts with customers 27,104 24,667 88,669 86,759 Software contribution 1,800 — 1,800 1,000 Total software revenue $ 28,904 $ 24,667 $ 90,469 $ 87,759 |
Drug Discovery Revenue | The following table presents the revenue recognized from the sources of drug discovery revenue: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Drug discovery services revenue from contracts with customers $ 12,730 $ 11,717 $ 49,765 $ 34,976 Drug discovery contribution 935 596 2,306 1,377 Total drug discovery revenue $ 13,665 $ 12,313 $ 52,071 $ 36,353 |
Schedule of Contract Balances | Contract balances were as follows: As of As of Contract assets $ 13,161 $ 11,378 Deferred revenue, short-term: Software products and services 29,583 37,085 Drug discovery 13,730 20,846 Deferred revenue, long-term: Software products and services 2,590 2,526 Drug discovery 9,512 23,072 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value | The following table presents information about the Company’s assets measured at fair value as of September 30, 2023: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents and restricted cash $ 255,608 $ — $ — $ 255,608 Marketable securities — 246,905 — 246,905 Equity investments 87,793 — 2,370 90,163 Total $ 343,401 $ 246,905 $ 2,370 $ 592,676 The following table presents information about the Company’s assets measured at fair value as of December 31, 2022: Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents and restricted cash $ 95,717 $ — $ — $ 95,717 Marketable securities — 360,613 — 360,613 Equity investments 22,335 — 1,629 23,964 Total $ 118,052 $ 360,613 $ 1,629 $ 480,294 |
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, 2021 $ 1,887 Cash contributions 600 Unrealized loss (858) As of December 31, 2022 1,629 Realized gain 147,322 Cash distributions (111,328) Transfer to Level 1 (1,629) As of March 31, 2023 35,994 Cash distributions (35,789) As of June 30, 2023 205 Unrealized gain 2,165 As of September 30, 2023 $ 2,370 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Operating Leases | Additional details of the Company’s operating and finance leases are presented in the following table: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Lease costs $ 4,393 $ 3,151 $ 12,318 $ 8,441 Cash paid for leases 3,229 992 8,789 2,293 |
Summary of Maturities of Operating Lease Liabilities Under Noncancelable Operating Leases | Maturities of operating and finance lease liabilities as of September 30, 2023 under noncancelable periods were as follows: Year ending December 31: Remainder of 2023 $ 3,710 2024 17,476 2025 17,535 2026 17,222 2027 16,054 Thereafter 127,005 Total future minimum lease payments 199,002 Less: imputed interest (69,722) Present value of future minimum lease payments 129,280 Less: current portion of lease payments 16,353 Lease liabilities, long-term $ 112,927 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of sales $ 1,234 $ 1,360 $ 3,922 $ 4,175 Research and development 4,101 3,026 11,422 8,585 Sales and marketing 914 728 2,705 1,951 General and administrative 6,405 4,750 17,258 14,714 Total stock-based compensation $ 12,654 $ 9,864 $ 35,307 $ 29,425 |
Summary of Weighted Average Valuation Assumptions Used for Options | Following are the weighted average valuation assumptions used for option awards during the periods presented: Nine Months Ended September 30, 2023 2022 Valuation assumptions Expected dividend yield — % — % Expected volatility 67 % 56 % Expected term (years) 4.98 4.77 Risk-free interest rate 3.80 % 2.02 % |
Net (Loss) Income per Share A_2
Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common and Limited Stockholders | The following table presents the calculation of basic and diluted net (loss) income 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net (loss) income attributable to Schrödinger common and limited common stockholders $ (62,024) $ (39,853) $ 71,390 $ (121,979) Denominator: Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, basic: 71,924,451 71,207,992 71,679,765 71,140,682 Effect of the exercise of common stock options and vested RSUs on weighted average common and limited common shares — — 3,287,026 — Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, diluted: 71,924,451 71,207,992 74,966,791 71,140,682 Net (loss) income per share of common and limited common stockholders, basic: $ (0.86) $ (0.56) $ 1.00 $ (1.71) Net (loss) income per share of common and limited common stockholders, diluted: $ (0.86) $ (0.56) $ 0.95 $ (1.71) |
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations Anti-dilutive | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares subject to outstanding common stock options and RSUs 12,243,352 10,932,612 6,192,747 10,932,612 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Financial Information with Respect to Reportable Segments | Presented below is financial information with respect to the Company’s reportable segments for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Segment revenues: Software $ 28,904 $ 24,667 $ 90,469 $ 87,759 Drug discovery 13,665 12,313 52,071 36,353 Total segment revenues $ 42,569 $ 36,980 $ 142,540 $ 124,112 Segment gross profit: Software $ 21,870 $ 17,801 $ 69,625 $ 66,281 Drug discovery 1,769 (600) 13,517 (3,963) Total segment gross profit 23,639 17,201 83,142 62,318 Unallocated: Research and development (46,833) (32,885) (130,279) (91,830) Sales and marketing (9,109) (7,161) (27,276) (21,260) General and administrative (23,890) (23,318) (73,414) (67,507) (Loss) gain on equity investments — (3) 147,322 11,825 Change in fair value (14,522) 5,273 61,869 (16,591) Other income 5,804 1,234 13,067 1,265 Income tax benefit (expense) 2,887 (194) (3,041) (199) Consolidated net (loss) income $ (62,024) $ (39,853) $ 71,390 $ (121,979) |
Schedule of Revenues by Geographic Area | The following table sets forth revenues by geographic area for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 33,127 $ 27,470 $ 107,435 $ 84,849 APAC 5,567 4,893 18,877 15,507 EMEA 3,758 4,424 15,418 22,687 Rest of World 117 193 810 1,069 $ 42,569 $ 36,980 $ 142,540 $ 124,112 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Customer Concentration Risk | Accounts Receivable | Customer A | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk (in percent) | 26% | ||||
Customer Concentration Risk | Contract Assets | Customer A | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk (in percent) | 32% | 23% | |||
Customer Concentration Risk | Contract Assets | Customer B | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk (in percent) | 23% | 17% | |||
Customer Concentration Risk | Revenue Benchmark | Customer A | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk (in percent) | 28% | 28% | 29% | ||
Customer Concentration Risk | Revenue Benchmark | Customer B | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk (in percent) | 17% | ||||
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, immaterial effect | true | true |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Timing of Revenue Recognition (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Software products and services | Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition (in percent) | 37% | 34.10% | 36.80% | 41.90% |
Software products and services | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition (in percent) | 30.90% | 32.60% | 26.60% | 28.80% |
Drug discovery | Point in Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition (in percent) | 0% | 2.70% | 19.10% | 9.40% |
Drug discovery | Over Time | ||||
Disaggregation Of Revenue [Line Items] | ||||
Timing of revenue recognition (in percent) | 32.10% | 30.60% | 17.50% | 19.90% |
Revenue Recognition - Software
Revenue Recognition - Software Products and Services (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 36 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Jun. 22, 2023 | |
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 recognized | $ 1,800,000 | $ 1,000,000 | |
Deferred revenue | 0 | 0 | |
Agreement with Gates Ventures, LLC | Accounts Receivable | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Software contribution revenue recognized | 1,800,000 | ||
Agreement with Gates Ventures, LLC | First And Second Anniversary | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Software contribution revenue recognized | $ 1,000,000 | ||
Agreement with Gates Ventures, LLC | Maximum | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Software contribution revenue recognition amount | $ 6,000,000 | $ 3,000,000 | |
On-premise software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | 1 year |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | $ 42,569 | $ 36,980 | $ 142,540 | $ 124,112 |
On-premise software | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 13,806 | 12,579 | $ 50,564 | 50,860 |
Revenue, practical expedient, financing component [true false] | true | |||
Hosted software | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 5,463 | 3,914 | $ 14,366 | 10,765 |
Software maintenance | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 5,752 | 5,063 | 17,378 | 14,741 |
Professional services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 2,083 | 3,111 | 6,361 | 10,393 |
Revenue from contracts with customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 27,104 | 24,667 | 88,669 | 86,759 |
Software contribution | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | 1,800 | 0 | 1,800 | 1,000 |
Software products and services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total software revenue | $ 28,904 | $ 24,667 | $ 90,469 | $ 87,759 |
Revenue Recognition - Drug Disc
Revenue Recognition - Drug Discovery (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Drug Discovery Services | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Milestone payment yet to be achieved | $ 0 | $ 2,000 | |
Revenue recognized with milestones | 0 | $ 2,000 | |
Drug discovery contribution | |||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |||
Deferred revenue | $ 2,098 | $ 1,718 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Drug Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Drug discovery services revenue from contracts with customers | $ 13,665 | $ 12,313 | $ 52,071 | $ 36,353 |
Drug discovery services revenue from contracts with customers | ||||
Disaggregation Of Revenue [Line Items] | ||||
Drug discovery services revenue from contracts with customers | 12,730 | 11,717 | 49,765 | 34,976 |
Drug discovery contribution | ||||
Disaggregation Of Revenue [Line Items] | ||||
Drug discovery services revenue from contracts with customers | $ 935 | $ 596 | $ 2,306 | $ 1,377 |
Revenue Recognition - Collabora
Revenue Recognition - Collaboration and License Agreement (Details) | 3 Months Ended | 9 Months Ended | ||||
Nov. 22, 2020 USD ($) target program obligation | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Deferred revenue, revenue recognized | $ 25,439,000 | $ 22,621,000 | $ 55,807,000 | $ 51,816,000 | ||
BMS | Collaboration and License Agreement | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Number of biological targets | target | 5 | |||||
Number of wholly owned programs | program | 2 | |||||
Number of oncology targets | program | 2 | |||||
Upfront fee received | $ 55,000,000 | |||||
Maximum milestone payments to be received | $ 1,500,000,000 | |||||
Number of performance obligations | obligation | 1 | |||||
Number of programs under agreement | program | 5 | |||||
Transaction price | $ 55,000,000 | |||||
Deferred revenue, revenue recognized | 11,200,000 | $ 9,900,000 | 40,000,000 | $ 19,300,000 | ||
Deferred revenue | 10,500,000 | 10,500,000 | $ 25,500,000 | |||
Receivable from collaboration | $ 0 | 0 | $ 8,000,000 | |||
BMS | Collaboration and License Agreement | Oncology Product | ||||||
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 | |||||
BMS | Collaboration and License Agreement | Neurology and Immunology Product | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Maximum milestone payments to be received | 489,000,000 | |||||
Milestone payments to be received upon achievement of certain specified research, development, and regulatory milestones | 264,000,000 | |||||
Milestone payments to be received upon achievement of certain specified commercial milestones | $ 225,000,000 | |||||
BMS | Collaboration and License Agreement | Oncology, Neurology, and Immunology Product | ||||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||||
Deferred revenue, revenue recognized | $ 25,000,000 |
Revenue Recognition - Schedul_4
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Disaggregation Of Revenue [Line Items] | ||
Contract assets | $ 13,161 | $ 11,378 |
Deferred revenue, short-term: | ||
Deferred revenue | 43,313 | 57,931 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | 12,102 | 25,598 |
Software products and services | ||
Deferred revenue, short-term: | ||
Deferred revenue | 29,583 | 37,085 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | 2,590 | 2,526 |
Drug discovery | ||
Deferred revenue, short-term: | ||
Deferred revenue | 13,730 | 20,846 |
Deferred revenue, long-term: | ||
Deferred revenue, long-term | $ 9,512 | $ 23,072 |
Revenue Recognition- Contract B
Revenue Recognition- Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Deferred revenue, revenue recognized | $ 25,439 | $ 22,621 | $ 55,807 | $ 51,816 |
Percentage of revenue expected to be recognized | 78% | 78% | ||
Unsatisfied performance obligation | $ 18,672 | $ 18,672 | ||
Minimum | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Contract with customers, payment terms | 30 days | |||
Maximum | ||||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||||
Contract with customers, payment terms | 60 days |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 592,676 | $ 480,294 |
Cash and cash equivalents and restricted cash | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 255,608 | 95,717 |
Marketable securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 246,905 | 360,613 |
Equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 90,163 | 23,964 |
Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 343,401 | 118,052 |
Level 1 | Cash and cash equivalents and restricted cash | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 255,608 | 95,717 |
Level 1 | Marketable securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 0 | 0 |
Level 1 | Equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 87,793 | 22,335 |
Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 246,905 | 360,613 |
Level 2 | Cash and cash equivalents and restricted cash | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 0 | 0 |
Level 2 | Marketable securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 246,905 | 360,613 |
Level 2 | Equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 0 | 0 |
Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 2,370 | 1,629 |
Level 3 | Cash and cash equivalents and restricted cash | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 0 | 0 |
Level 3 | Marketable securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | 0 | 0 |
Level 3 | Equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Total Assets | $ 2,370 | $ 1,629 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 06, 2023 | Feb. 13, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||
Beginning balance | $ 205 | $ 35,994 | $ 1,629 | $ 1,629 | $ 1,887 | ||
Cash contributions | $ 35,789 | $ 111,328 | 205 | 600 | |||
Unrealized gain (loss) | 2,165 | 147,322 | (858) | ||||
Realized gain | 147,322 | ||||||
Cash distributions | (35,789) | (111,328) | |||||
Transfer to Level 1 | (1,629) | ||||||
Ending balance | $ 2,370 | $ 205 | $ 35,994 | $ 2,370 | $ 1,629 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Apr. 06, 2023 | Feb. 13, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||||||
Unrealized gain | $ 2,165 | $ 147,322 | $ (858) | |||
Cash contributions | $ 35,789 | $ 111,328 | $ 205 | $ 600 |
Commitments And Contingencies -
Commitments And Contingencies - Additional Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Lessee Lease Description [Line Items] | |
Remaining weighted average lease term | 12 years |
Increase in operating right-of-use assets due to new leases | $ 15,085 |
Increase in right-of-use assets due to contingency resolution | 4,388 |
Increase of operating lease liabilities | 15,085 |
Equipment Lease Agreement | |
Lessee Lease Description [Line Items] | |
Increase in finance right-of-use assets due to new leases | 279 |
Acquisition of lease liabilities - operating leases | $ 279 |
Commitments And Contingencies_2
Commitments And Contingencies - Summary of operating and finance leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Lease costs | $ 4,393 | $ 3,151 | $ 12,318 | $ 8,441 |
Cash paid for leases | $ 3,229 | $ 992 | $ 8,789 | $ 2,293 |
Commitments And Contingencies_3
Commitments And Contingencies - Summary of Maturities of Operating And Finance Lease Liabilities Under Noncancelable Operating Leases (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |
Remainder of 2023 | $ 3,710 |
2024 | 17,476 |
2025 | 17,535 |
2026 | 17,222 |
2027 | 16,054 |
Thereafter | 127,005 |
Total future minimum lease payments | 199,002 |
Less: imputed interest | (69,722) |
Present value of future minimum lease payments | 129,280 |
Less: current portion of lease payments | 16,353 |
Lease liabilities - operating leases, long-term | $ 112,927 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (2,887) | $ 194 | $ 3,041 | $ 199 |
Unrecognized tax benefits | $ 2,658 | $ 2,658 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Sep. 30, 2023 Vote $ / shares shares | Dec. 31, 2022 $ / shares shares |
Class Of Stock [Line Items] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 |
Voting Common Stock | ||
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 500,000,000 | |
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | |
Number of votes for common share | Vote | 1 | |
Limited common stock | ||
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value (in USD per share) | $ / shares | $ 0.01 | $ 0.01 |
Number of votes for common share | Vote | 1 | |
Right to exchange limited common stock to common stock, share | 1 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Mar. 31, 2023 shares | Feb. 28, 2023 shares | Aug. 31, 2022 shares | Sep. 30, 2023 USD ($) $ / shares shares | Mar. 31, 2023 shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2025 shares | Dec. 31, 2023 shares | Dec. 31, 2022 shares | Jun. 15, 2022 shares | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Total stock -based compensation | $ | $ 12,654 | $ 9,864 | $ 35,307 | $ 29,425 | ||||||||
Total proceeds | $ | $ 7,099 | $ 1,628 | ||||||||||
Stock Options | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Number of shares available for grant (in shares) | 3,430,664 | 3,430,664 | 5,470,240 | |||||||||
Award vesting period (in years) | 4 years | |||||||||||
Unrecognized compensation cost expected to be recognized over a weighted average period (in years) | 2 years 3 months | |||||||||||
Maximum percentage of stock options must be granted at exercise price of fair market value (in percent) | 100% | |||||||||||
Grant of common stock (in shares) | 65,525 | |||||||||||
Closing price of common stock | 110% | |||||||||||
Options, exercises in period (in shares) | 119,885 | 40,707 | 646,315 | 233,253 | ||||||||
Total proceeds | $ | $ 1,534 | $ 324 | $ 7,099 | $ 1,628 | ||||||||
Weighted average fair value of options granted (in USD per share) | $ / shares | $ 24.75 | $ 15.52 | $ 15.99 | $ 13.74 | ||||||||
Intrinsic value of options exercised | $ | $ 2,835 | $ 859 | $ 14,140 | $ 5,145 | ||||||||
Unrecognized compensation cost related to unvested stock options granted | $ | 74,044 | 74,044 | ||||||||||
Share-based compensation arrangement by share-based payment award, options, vested in period, fair value | $ | $ 9,991 | $ 7,016 | $ 37,858 | $ 36,720 | ||||||||
Stock Options | Maximum | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Options granted, contractual term (in years) | 10 years | |||||||||||
Stock Options | Tranche One | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Stock Options | Tranche Two | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Stock Options | Tranche Three | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Stock Options | Tranche Four | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Restricted Stock Units | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting period (in years) | 4 years | |||||||||||
Stock granted (in shares) | 33,285 | 0 | 748,265 | 48,700 | ||||||||
Weighted average fair value of restricted stock units granted (in USD per share) | $ / shares | $ 41.08 | $ 0 | $ 26.07 | $ 27.76 | ||||||||
Unrecognized compensation cost related to vested stock options granted | $ | $ 16,663 | $ 16,663 | ||||||||||
Unrecognized compensation cost expected to be recognized over a weighted average period (in years) | 3 years 1 month 20 days | |||||||||||
Number of RSU's vested during period (in shares) | 1,166 | 0 | 13,241 | 0 | ||||||||
Vested in period | $ | $ 62 | $ 355 | ||||||||||
Restricted Stock Units | Tranche One | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Restricted Stock Units | Tranche Two | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Restricted Stock Units | Tranche Three | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Restricted Stock Units | Tranche Four | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Award vesting rights (in percent) | 25% | |||||||||||
Eligible Performance Based Restricted Stock Units | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Stock granted (in shares) | 90,000 | |||||||||||
Eligible Performance Based Restricted Stock Units | Tranche One | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Stock granted (in shares) | 62,693 | |||||||||||
Achievement percent | 1.50 | |||||||||||
Eligible Performance Based Restricted Stock Units | Tranche Two | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Stock granted (in shares) | 41,795 | |||||||||||
Achievement percent | 1 | |||||||||||
Eligible Performance Based Restricted Stock Units | Tranche Three | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Stock granted (in shares) | 20,898 | |||||||||||
Achievement percent | 0.50 | |||||||||||
Performance Based Restricted Stock Units | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Stock granted (in shares) | 30,150 | 45,000 | ||||||||||
Weighted average fair value of restricted stock units granted (in USD per share) | $ / shares | $ 0 | $ 28.55 | $ 22.48 | $ 28.55 | ||||||||
Number of RSU's vested during period (in shares) | 0 | 0 | 0 | 0 | ||||||||
Performance Based Restricted Stock Units | Subsequent Event | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Number of RSU's not vested during period (in shares) | 27,000 | 18,000 | ||||||||||
2020 Plan | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Number of shares available for grant (in shares) | 0 | |||||||||||
2010 Plan | ||||||||||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||||||||||
Number of shares available for grant (in shares) | 0 | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Classification of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | $ 12,654 | $ 9,864 | $ 35,307 | $ 29,425 |
Cost of sales | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 1,234 | 1,360 | 3,922 | 4,175 |
Research and development | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 4,101 | 3,026 | 11,422 | 8,585 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | 914 | 728 | 2,705 | 1,951 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items] | ||||
Total stock -based compensation | $ 6,405 | $ 4,750 | $ 17,258 | $ 14,714 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Weighted Average Valuation Assumptions Used for Options (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Valuation assumptions | ||
Expected dividend yield (in percent) | 0% | 0% |
Expected volatility (in percent) | 67% | 56% |
Expected term (years) | 4 years 11 months 23 days | 4 years 9 months 7 days |
Risk-free interest rate (in percent) | 3.80% | 2.02% |
Net (Loss) Income per Share A_3
Net (Loss) Income per Share Attributable to Common and Limited Common Stockholders - Schedule of Basic and Diluted Net (Loss) Income Per Share Attributable to Common and Limited Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net (loss) income attributable to Schrödinger common and limited common stockholders | $ (62,024) | $ 4,278 | $ 129,136 | $ (39,853) | $ (47,686) | $ (34,440) | $ 71,390 | $ (121,979) |
Denominator: | ||||||||
Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, basic: (in shares) | 71,924,451 | 71,207,992 | 71,679,765 | 71,140,682 | ||||
Effect of the exercise of common stock options and vested RSUs on weighted average common and limited common shares (in shares) | 0 | 0 | 3,287,026 | 0 | ||||
Weighted average shares used to compute net (loss) income per share of common and limited common stockholders, diluted (in shares) | 71,924,451 | 71,207,992 | 74,966,791 | 71,140,682 | ||||
Net (loss) income per share of common and limited common stockholders, basic: (in USD per share) | $ (0.86) | $ (0.56) | $ 1 | $ (1.71) | ||||
Net (loss) income per share of common and limited common stockholders, diluted: (in USD per share) | $ (0.86) | $ (0.56) | $ 0.95 | $ (1.71) |
Net (Loss) Income per Share A_4
Net (Loss) Income 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Stock Options And Restricted Stock Units | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Shares subject to outstanding common stock options and RSUs (in shares) | 12,243,352 | 10,932,612 | 6,192,747 | 10,932,612 |
Equity Investments - Additional
Equity Investments - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Feb. 07, 2023 $ / shares shares | Apr. 30, 2022 USD ($) shares | Jul. 31, 2021 USD ($) shares | May 31, 2021 USD ($) shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Realized gain | $ (14,522,000) | $ 5,273,000 | $ 61,869,000 | $ (16,591,000) | |||||
Nimbus Therapeutics, LLC | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Non-marketable equity security | 2,370,000 | 2,370,000 | $ 0 | ||||||
Unrealized gain | 2,165,000 | ||||||||
Realized gain | 147,322,000 | ||||||||
Gain (loss) | 0 | 0 | |||||||
Morphic Holding, Inc. | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Gain (loss) | (28,740,000) | 5,511,000 | (3,206,000) | (15,931,000) | |||||
Marketable securities | 19,129,000 | 19,129,000 | 22,335,000 | ||||||
Ajax Therapeutics, Inc | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Non-marketable equity security | 1,700,000 | 1,700,000 | 1,700,000 | ||||||
Structure Therapeutics | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Gain (loss) | 12,052,000 | $ (237,000) | 62,910,000 | $ (659,000) | |||||
Marketable securities | $ 68,664,000 | $ 68,664,000 | $ 1,629,000 | ||||||
Series B Preferred Stock | Ajax Therapeutics, Inc | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Number of preferred shares purchased (in shares) | shares | 631,377 | ||||||||
Cash payments to purchase of shares | $ 1,700,000 | ||||||||
Series B Preferred Stock | Structure Therapeutics | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Number of preferred shares purchased (in shares) | shares | 148,210 | 494,035 | |||||||
Cash payments to purchase of shares | $ 600,000 | $ 2,000,000 | |||||||
Common stock | Structure Therapeutics | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Shares owned (in shares) | shares | 3,260,495 | 3,260,495 | |||||||
ADR | Structure Therapeutics | |||||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||||
Number of shares purchased | shares | 275,000 | ||||||||
Purchase price (in USD per share) | $ / shares | $ 15 | ||||||||
Stock split, conversion ratio | 3 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||||
Total revenues | $ 42,569,000 | $ 36,980,000 | $ 142,540,000 | $ 124,112,000 | |||
Net receivables | 19,884,000 | 19,884,000 | $ 55,953,000 | ||||
Restricted cash | 6,230,000 | 6,230,000 | 5,243,000 | ||||
Agreement with Gates Ventures, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Software contribution revenue recognized | 1,800,000 | 1,000,000 | |||||
Agreement with Gates Ventures, LLC | Accounts Receivable | |||||||
Related Party Transaction [Line Items] | |||||||
Software contribution revenue recognized | 1,800,000 | ||||||
Related Party | Member of Board of Directors | |||||||
Related Party Transaction [Line Items] | |||||||
Payment of consulting fees | 105,000 | 105,000 | 315,000 | 305,000 | |||
Related Party | BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Total revenues | 63,000 | 122,000 | 183,000 | 337,000 | |||
Net receivables | 0 | 0 | 20,000 | ||||
Related Party | Structure Therapeutics | |||||||
Related Party Transaction [Line Items] | |||||||
Total revenues | 62,000 | 73,000 | 221,000 | 223,000 | $ 650,000 | ||
Net receivables | 0 | 0 | 0 | ||||
Related Party | Agreement with Gates Ventures, LLC | Gates Ventures, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Net receivables | $ 0 | $ 0 | 0 | ||||
Contribution revenue recognition | 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||||
Related Party | Agreement with Gates Ventures, LLC | Minimum | Gates Ventures, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of voting securities (in percent) | 5% | 5% | |||||
Related Party | Drug discovery contribution | BMGFT | |||||||
Related Party Transaction [Line Items] | |||||||
Total revenues | $ 935,000 | $ 595,000 | $ 2,306,000 | $ 1,376,000 | |||
Net receivables | 0 | 0 | 0 | ||||
Restricted cash | $ 2,729,000 | $ 2,729,000 | $ 1,742,000 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment revenues: | ||||
Total revenues | $ 42,569 | $ 36,980 | $ 142,540 | $ 124,112 |
Segment gross profit: | ||||
Total segment gross profit | 23,639 | 17,201 | 83,142 | 62,318 |
Unallocated: | ||||
Research and development | (46,833) | (32,885) | (130,279) | (91,830) |
Sales and marketing | (9,109) | (7,161) | (27,276) | (21,260) |
General and administrative | (23,890) | (23,318) | (73,414) | (67,507) |
(Loss) gain on equity investments | 0 | (3) | 147,322 | 11,825 |
Change in fair value | (14,522) | 5,273 | 61,869 | (16,591) |
Other income | 5,804 | 1,234 | 13,067 | 1,265 |
Income tax benefit (expense) | 2,887 | (194) | (3,041) | (199) |
Consolidated net (loss) income | (62,024) | (39,853) | 71,390 | (121,979) |
Operating Segments | Software | ||||
Segment revenues: | ||||
Total revenues | 28,904 | 24,667 | 90,469 | 87,759 |
Segment gross profit: | ||||
Total segment gross profit | 21,870 | 17,801 | 69,625 | 66,281 |
Operating Segments | Drug discovery | ||||
Segment revenues: | ||||
Total revenues | 13,665 | 12,313 | 52,071 | 36,353 |
Segment gross profit: | ||||
Total segment gross profit | $ 1,769 | $ (600) | $ 13,517 | $ (3,963) |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | $ 42,569 | $ 36,980 | $ 142,540 | $ 124,112 |
United States | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | 33,127 | 27,470 | 107,435 | 84,849 |
APAC | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | 5,567 | 4,893 | 18,877 | 15,507 |
EMEA | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | 3,758 | 4,424 | 15,418 | 22,687 |
Rest of World | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Total revenues | $ 117 | $ 193 | $ 810 | $ 1,069 |