Full Press Release Details
Schr dinger Reports First Quarter 2021 Financial Results and Provides Company Update
First quarter total revenue of $32.1 million, up 23 percent year-over-year; Software revenue of $26.3 million, up 11 percent year-over-year
Expanded agreement with AstraZeneca; New agreement with NVIDIA
Development candidate selected for MALT1 inhibitor program; Internal pipeline progressing with plans to submit up to three investigational new drug applications to the FDA in 2022
Company maintains full-year 2021 financial outlook
New York, May 11, 2021 - Schr dinger, Inc. (Nasdaq: SDGR), whose physics-based software platform is transforming the way therapeutics and materials are discovered, today announced financial results for the quarter ended March 31, 2021, and provided an update on the company.
"We had strong execution across multiple facets of our business during the quarter," stated Ramy Farid, Ph.D., chief executive officer at Schr dinger. "We are continuing to advance our internal drug discovery pipeline and recently selected a development candidate for our MALT1 inhibitor program. Progress on our internal programs, coupled with our collaborators' successes with molecules we've helped discover, are powerful examples that our platform and approach generates high-quality development candidates. We look forward to seeing the full impact of our technology as pharmaceutical, biotechnology and materials companies adopt our platform on a larger scale."
Today the company announced an expanded collaboration with AstraZeneca to deploy Schr dinger's computational platform to help accelerate drug discovery. The collaboration is an expansion of the agreement announced in September 2019, which was a pilot project across an initial small number of programs. Under the expanded agreement, AstraZeneca will fully deploy Schr dinger's platform across all its structurally-enabled small molecule discovery programs.
First Quarter 2021 Financial Results
Recent Business Highlights
Continued revenue growth and strategic execution
Progressed internal pipeline
Continued investment in Schr dinger's computational platform
Full-Year 2021 Financial Outlook
As of May 11, 2021, Schr dinger continues to expect total revenue to range from $124 million to $142 million, with software revenue expected to range from $102 million to $110 million and drug discovery revenue expected to range from $22 million to $32 million for the fiscal year ending December 31, 2021. Additional details are as follows:
Webcast and Conference Call Information
Schr dinger will host a conference call to discuss its first quarter financial results on Tuesday, May 11, 2021, at 8:30 a.m. ET. The conference call can be accessed live by dialing (833) 727-9520 (domestic) or +1 (830) 213-7697 (international) and referring to conference ID 3297222. The webcast can also be accessed under "News & Events" in the investors section of Schr dinger's website, https://ir.schrodinger.com/news-and-events/event-calendar. The archived webcast will be available on Schr dinger's website following the event.
Schr dinger is transforming the way therapeutics and materials are discovered. Schr dinger has pioneered a physics-based software platform that enables discovery of high-quality, novel molecules for drug development and materials applications more rapidly and at lower cost compared to traditional methods. The software platform is used by biopharmaceutical and industrial companies, academic institutions, and government laboratories around the world. Schr dinger's multidisciplinary drug discovery team also leverages the software platform to advance collaborative programs and its own pipeline of novel therapeutics to address unmet medical needs.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 including, but not limited to those regarding Schr dinger's expectations about the speed and capacity of its computational platform, the company's financial outlook for the fiscal year ending December 31, 2021, the company's plans to continue to invest in research and its strategic plans to accelerate the growth of its software business and advance its collaborative and internal drug discovery programs, the company's ability to improve and advance the science underlying its platform, including through the use of new technologies, the potential expansion of the domain of applicability of the company's platform, the company's ability to recognize potential benefits from its strategic partnerships, the clinical potential and favorable
properties of the company's CDC7, MALT1, and Wee1 inhibitors, as well as the potential for its inhibitor programs to be used in combination with existing therapies, the timing of potential IND applications for its internal drug discovery programs, the ability to realize potential milestones, royalties or other payments under its collaborations, as well as the company's expectations related to the use of its cash, cash equivalents and marketable securities. Statements including words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," "would" and statements in the future tense are forward-looking statements. These forward-looking statements reflect Schr dinger's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the company and on assumptions the company has made. Actual results may differ materially from those described in these forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond Schr dinger's control, including the demand for its software solutions, the ability to further develop its computational platform, the reliance upon third-party providers of cloud-based infrastructure to host its software solutions, the reliance upon its third-party drug discovery collaborators, the uncertainties inherent in drug development and commercialization, such as the conduct of research activities and the timing of and its ability to initiate and complete preclinical studies and clinical trials, whether results from preclinical studies will be predictive of the results of later preclinical studies and clinical trials, uncertainties associated with the regulatory review of clinical trials and applications for marketing approvals, the ability to retain and hire key personnel and the direct and indirect impacts of the ongoing COVID-19 pandemic on its business and other risks detailed under the caption "Risk Factors" and elsewhere in the company's Securities and Exchange Commission filings and reports, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, filed with the Securities and Exchange Commission on May 11, 2021, as well as future filings and reports by Schr dinger. Any forward-looking statements contained in this press release speak only as of the date hereof. Except as required by law, the company undertakes no duty or obligation to update any forward-looking statements contained in this press release as a result of new information, future events, changes in expectations or otherwise.
Stephanie Simon (media)
Ten Bridge Communications
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||
| (in thousands, except for share and per share amounts) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenues: | ||||||||
| Software products and services | $ | 26,340 | $ | 23,812 | ||||
| Drug discovery | 5,787 | 2,362 | ||||||
| Total revenues | 32,127 | 26,174 | ||||||
| Cost of revenues: | ||||||||
| Software products and services | 5,906 | 4,001 | ||||||
| Drug discovery | 10,057 | 6,548 | ||||||
| Total cost of revenues | 15,963 | 10,549 | ||||||
| Gross profit | 16,164 | 15,625 | ||||||
| Operating expenses: | ||||||||
| Research and development | 21,448 | 13,700 | ||||||
| Sales and marketing | 5,239 | 4,789 | ||||||
| General and administrative | 13,389 | 8,936 | ||||||
| Total operating expenses | 40,076 | 27,425 | ||||||
| Loss from operations | (23,912 | ) | (11,800 | ) | ||||
| Other (expense) income: | ||||||||
| Loss on equity investments | (1,781 | ) | - | |||||
| Change in fair value | 24,824 | (3,079 | ) | |||||
| Interest income | 420 | 699 | ||||||
| Total other income (expense) | 23,463 | (2,380 | ) | |||||
| Loss before income taxes | (449 | ) | (14,180 | ) | ||||
| Income tax expense | 74 | 91 | ||||||
| Net loss | (523 | ) | (14,271 | ) | ||||
| Net loss attributable to noncontrolling interest | (494 | ) | (445 | ) | ||||
| Net loss attributable to Schr dinger common and limited common stockholders | $ | (29 | ) | $ | (13,826 | ) | ||
| Net loss per share attributable to Schr dinger common and limited common stockholders, basic and diluted: | $ | - | $ | (0.34 | ) | |||
| Weighted average shares used to compute net loss per share attributable to Schr dinger common and limited common stockholders, basic and diluted: | 70,071,625 | 40,666,970 |
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
| (in thousands, except for share and per share amounts) | ||||||||
| Assets | March 31, 2021 | December 31, 2020 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 133,122 | $ | 202,296 | ||||
| Restricted cash | 500 | 500 | ||||||
| Marketable securities | 515,372 | 440,395 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $60 and $60 | 11,270 | 31,423 | ||||||
| Unbilled and other receivables, net for allowance for unbilled receivables of $20 and $0 | 7,020 | 3,955 | ||||||
| Prepaid expenses | 7,954 | 4,409 | ||||||
| Total current assets | 675,238 | 682,978 | ||||||
| Property and equipment, net | 4,799 | 5,140 | ||||||
| Equity investments | 52,931 | 45,664 | ||||||
| Right of use assets | 8,865 | 10,129 | ||||||
| Other assets | 2,356 | 2,352 | ||||||
| Total assets | $ | 744,189 | $ | 746,263 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,220 | $ | 8,398 | ||||
| Accrued payroll, taxes, and benefits | 10,345 | 12,000 | ||||||
| Deferred revenue | 40,759 | 45,403 | ||||||
| Lease liabilities | 3,576 | 4,543 | ||||||
| Other accrued liabilities | 5,721 | 2,861 | ||||||
| Total current liabilities | 67,621 | 73,205 | ||||||
| Deferred revenue, long-term | 37,356 | 41,164 | ||||||
| Lease liabilities, long-term | 6,836 | 7,221 | ||||||
| Other liabilities, long-term | 600 | 654 | ||||||
| Total liabilities | 112,413 | 122,244 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, $0.01 par value. Authorized 500,000,000 shares; 61,300,675 and 60,713,534 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 613 | 607 | ||||||
| Limited common stock, $0.01 par value. Authorized 100,000,000 shares; 9,164,193 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 92 | 92 | ||||||
| Preferred stock, $0.01 par value. Authorized 10,000,000 shares; zero shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | - | - | ||||||
| Additional paid-in capital | 760,574 | 752,558 | ||||||
| Accumulated deficit | (129,588 | ) | (129,559 | ) | ||||
| Accumulated other comprehensive income | 77 | 317 | ||||||
| Total stockholders' equity of Schr dinger stockholders | 631,768 | 624,015 | ||||||
| Noncontrolling interest | 8 | 4 | ||||||
| Total stockholders' equity | 631,776 | 624,019 | ||||||
| Total liabilities and stockholders' equity | $ | 744,189 | $ | 746,263 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||||
| (in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (523 | ) | $ | (14,271 | ) | ||
| Adjustments to reconcile net loss to net cash used in | ||||||||
| operating activities: | ||||||||
| Loss on equity investments | 1,781 | - | ||||||
| Noncash revenue from equity investments | (5 | ) | (46 | ) | ||||
| Fair value adjustments | (24,824 | ) | 3,079 | |||||
| Depreciation | 887 | 877 | ||||||
| Stock-based compensation | 4,366 | 1,775 | ||||||
| Noncash research and development expenses | 498 | 435 | ||||||
| Noncash investment accretion | 1,955 | 83 | ||||||
| Loss on disposal of property and equipment | 19 | - | ||||||
| Decrease (increase) in assets: | ||||||||
| Accounts receivable, net | 20,153 | 2,404 | ||||||
| Unbilled and other receivables | (3,065 | ) | 5,154 | |||||
| Reduction in the carrying amount of right of use assets | 1,264 | 1,299 | ||||||
| Prepaid expenses and other assets | (3,549 | ) | (1,106 | ) | ||||
| Increase (decrease) in liabilities: | ||||||||
| Accounts payable | (1,230 | ) | 2,110 | |||||
| Accrued payroll, taxes, and benefits | (1,655 | ) | (2,289 | ) | ||||
| Deferred revenue | (8,447 | ) | (3,378 | ) | ||||
| Lease liabilities | (1,352 | ) | (1,266 | ) | ||||
| Other accrued liabilities | 2,806 | (638 | ) | |||||
| Net cash used in operating activities | (10,921 | ) | (5,778 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (513 | ) | (843 | ) | ||||
| Purchases of equity investments | - | (2,869 | ) | |||||
| Distribution from equity investment | 40 | - | ||||||
| Proceeds from sale of equity investments | 15,735 | - | ||||||
| Purchases of marketable securities | (143,671 | ) | (127,109 | ) | ||||
| Proceeds from maturity of marketable securities | 66,500 | 42,908 | ||||||
| Net cash used in investing activities | (61,909 | ) | (87,913 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Issuances of common stock upon initial public offering, net | - | 212,277 | ||||||
| Issuances of common stock upon stock option exercises | 3,656 | 177 | ||||||
| Net cash provided by financing activities | 3,656 | 212,454 | ||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (69,174 | ) | 118,763 | |||||
| Cash and cash equivalents and restricted cash, beginning of period | 202,796 | 26,486 | ||||||
| Cash and cash equivalents and restricted cash, end of period | $ | 133,622 | $ | 145,249 | ||||
| Supplemental disclosure of cash flow and noncash information | ||||||||
| Cash paid for income taxes | $ | 119 | $ | 64 | ||||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Payment of deferred offering costs | - | 786 | ||||||
| Purchases of property and equipment | 52 | 254 | ||||||
| Acquisitions of right of use assets in exchange for lease obligations | - | 1,778 | ||||||
| Reclassification of deferred financing costs to additional paid in capital | - | 1,858 |