Schrodinger, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Schrodinger, Inc. has filed its 2023 10-K report detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Schrodinger, Inc. (SDGR) filed a Annual Report (10-K) with the SEC on February 28, 2024. Schrodinger, Inc. filed its 2023 Form 10-K on February 28, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is in Pharmaceutical Preparations (SIC 2834). Schrodinger, Inc. is incorporated in Delaware. The company's business address is 1540 Broadway, 24th Floor, New York, NY 10036.

Why It Matters

For investors and stakeholders tracking Schrodinger, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Schrodinger's financial health, operational strategies, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess the company's current standing and future prospects. As a company operating in the pharmaceutical preparations sector, the detailed financial and business information in this report is vital for understanding its competitive position, R&D investments, and potential market impact.

Risk Assessment

Risk Level: medium — Schrodinger, Inc. shows moderate risk based on this filing. The company operates in the pharmaceutical preparations industry, which is subject to significant regulatory oversight, scientific uncertainty, and intense competition, as detailed in the risk factors section of the 10-K.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess Schrodinger's financial performance and strategic direction for the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period covered by the report)
• 2024-02-28 — Filing Date (Date the 10-K was filed)
• 001-39206 — SEC File Number (SEC filing identifier)

Key Players & Entities

• Schrodinger, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• 1540 Broadway, 24th Floor, New York, NY 10036 (address) — Business address
• 2834 (industry_code) — Standard Industrial Classification
• DE (state) — State of incorporation

FAQ

Industry Context

Schrodinger operates within the pharmaceutical preparations industry, a sector characterized by extensive research and development, regulatory hurdles, and the potential for significant breakthroughs in drug discovery and development.

Regulatory Implications

Companies in the pharmaceutical preparations sector are subject to stringent regulations from bodies like the FDA, covering drug development, manufacturing, and marketing, which can impact timelines and costs.

What Investors Should Do

1. Analyze the company's revenue streams and growth trends for its Software Products and Services and Drug Discovery segments.
2. Examine the company's balance sheet for key financial health indicators such as debt-to-equity ratio and cash reserves.
3. Review any disclosed risk factors related to regulatory changes, market competition, or operational challenges within the pharmaceutical industry.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: Filing Date — The date Schrodinger, Inc. officially submitted its 10-K to the SEC.

Year-Over-Year Comparison

This filing represents the annual 10-K for the fiscal year 2023, providing a comprehensive update compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share SDGR The Nasdaq Stock Market
• $71.8 m — licensed our solutions, accounting for $71.8 million, or 45%, of our software revenue
• $100,000 — ual contract value, or ACV, of at least $100,000, which represented 83%, 82%, and 80% of
• $500,000 — uding customers with an ACV of at least $500,000 or $1.0 million. For the year ended Dec
• $1.0 million — ers with an ACV of at least $500,000 or $1.0 million. For the year ended December 31, 2023,
• $5.0 million — four customers with an ACV of at least $5.0 million for the year ended December 31, 2023, c
• $1.5 billion — idate. We are eligible to receive up to $1.5 billion in total milestone payments across the
• $25.0 million — ollaboration, of which we have received $25.0 million as of December 31, 2023, as well as a t
• $216.7 m — earance. We generated total revenue of $216.7 million, $181.0 million, and $137.9 milli
• $181.0 m — erated total revenue of $216.7 million, $181.0 million, and $137.9 million in 2023, 2022
• $137.9 million — of $216.7 million, $181.0 million, and $137.9 million in 2023, 2022, and 2021, respectively,
• $40.7 million — or the year ended December 31, 2023 was $40.7 million and our net losses for the years ended
• $149.2 million — s ended December 31, 2022 and 2021 were $149.2 million and $101.2 million, respectively. Stra
• $101.2 m — , 2022 and 2021 were $149.2 million and $101.2 million, respectively. Strategy Our mis

Filing Documents

• sdgr-20231231.htm (10-K) — 2843KB
• sdgr-20231231xexx101arira.htm (EX-10.1) — 594KB
• sdgr-2023x1231xexx1019duga.htm (EX-10.19) — 148KB
• sdgr-20231231xexx231.htm (EX-23.1) — 3KB
• sdgr-20231231xexx311.htm (EX-31.1) — 11KB
• sdgr-20231231xexx312.htm (EX-31.2) — 11KB
• sdgr-20231231xexx321.htm (EX-32.1) — 4KB
• sdgr-20231231xexx322.htm (EX-32.2) — 4KB
• sdgr-20231231x10xkxexx971c.htm (EX-97.1) — 23KB
• image_0.jpg (GRAPHIC) — 4KB
• sdgr-20231231_g1.jpg (GRAPHIC) — 60KB
• sdgr-20231231_g10.jpg (GRAPHIC) — 82KB
• sdgr-20231231_g11.jpg (GRAPHIC) — 30KB
• sdgr-20231231_g12.jpg (GRAPHIC) — 64KB
• sdgr-20231231_g13.jpg (GRAPHIC) — 494KB
• sdgr-20231231_g14.jpg (GRAPHIC) — 537KB
• sdgr-20231231_g15.jpg (GRAPHIC) — 80KB
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• sdgr-20231231_g17.jpg (GRAPHIC) — 431KB
• sdgr-20231231_g2.jpg (GRAPHIC) — 189KB
• sdgr-20231231_g3.jpg (GRAPHIC) — 314KB
• sdgr-20231231_g4.jpg (GRAPHIC) — 155KB
• sdgr-20231231_g5.jpg (GRAPHIC) — 43KB
• sdgr-20231231_g6.jpg (GRAPHIC) — 63KB
• sdgr-20231231_g7.jpg (GRAPHIC) — 59KB
• sdgr-20231231_g8.jpg (GRAPHIC) — 39KB
• sdgr-20231231_g9.jpg (GRAPHIC) — 356KB
• 0001490978-24-000018.txt (&nbsp;) — 18591KB
• sdgr-20231231.xsd (EX-101.SCH) — 70KB
• sdgr-20231231_cal.xml (EX-101.CAL) — 99KB
• sdgr-20231231_def.xml (EX-101.DEF) — 374KB
• sdgr-20231231_lab.xml (EX-101.LAB) — 921KB
• sdgr-20231231_pre.xml (EX-101.PRE) — 593KB
• sdgr-20231231_htm.xml (XML) — 1171KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 64 Item 1B. Unresolved Staff Comments 115

Cybersecurity

Item 1C. Cybersecurity 115 Item 2.

Properties

Properties 115 Item 3.

Legal Proceedings

Legal Proceedings 115 Item 4. Mine Safety Disclosures 116 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 117 Item 6. [Reserved] 118 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 118 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 138 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data F- 1 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 140 Item 9A.

Controls and Procedures

Controls and Procedures 140 Item 9B. Other Information 141 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 142 PART III Item 10. Directors, Executive Officers and Corporate Governance 143 Item 11.

Executive Compensation

Executive Compensation 143 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 143 Item 13. Certain Relationships and Related Transactions, and Director Independence 143 Item 14. Principal Accountant Fees and Services 143 PART IV Item 15. Exhibits and Financial Statement Schedules 144 Item 16. Form 10-K Summary 147 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA This Annual Report on Form 10-K, or this Annual Report, contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this Annual Report, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words "aim," "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "goal," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," "would" or the negative of these words or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements in this Annual Report include, among other things, statements about: the potential advantages of our physics-based computational platform; our strategic plans to accelerate the growth of our software business and acquire new customers; our research and development efforts for our proprietary drug discovery programs and our computational platform; our drug discovery collaborations, including the initiation, timing, progress and results of such collaborations; our estimates or expectations regarding any milestone or other payments we

Business

Item 1. Business. Overview We are transforming the way therapeutics and materials are discovered. Our differentiated, physics-based computational platform enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly and at a lower cost, compared to traditional methods. Our software platform is licensed by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. We are applying our computational platform to advance a broad pipeline of drug discovery programs in collaboration with leading biopharmaceutical companies. In addition, we use our computational platform to discover novel molecules for our pipeline of proprietary drug discovery programs, which we are advancing through preclinical and clinical development. Traditional drug discovery and development efforts are complex, lengthy and capital-intensive, and are prone to high failure rates. Traditional drug discovery relies upon many iterations of costly and time-consuming manual molecule design, chemical synthesis, and experimental testing. One of the primary reasons for long timelines, high costs, and high failure rates in drug discovery is that predicting properties of molecules in advance of chemical synthesis is extremely complex and not amenable to traditional approaches. Over the past several decades and with the concerted efforts of our scientists and software engineers, we have developed a physics-based computational platform that is capable of predicting critical properties of molecules with a high degree of accuracy. This key capability enables drug discovery teams to design and selectively synthesize molecules with more optimal properties, reducing the average time and costs required to identify a development candidate and increasing the probability that a drug discovery program will enter clinical development. Furthermore, we believe that development candidates with more optimized property pr

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View this 10-K filing on SEC EDGAR