Slide 1: Pioneering Computational Molecular Design: 3Q24 Financial Results
Pioneering Computational Molecular Design 3Q24 Financial Results November 12, 2024
Slide 2: Cautionary Note and Disclaimer
Cautionary Note and Disclaimer This presentation contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact, made by Schröding
Slide 3: Digital Chemistry Laboratory Leverages Physics + AI
Digital Chemistry Laboratory Leverages Physics + AI Physics + AI Physics-based Training Set for AI/ML Artificial Intelligence / Methods Generated Using Physics Machine Learning ✓ No training set required ✓ Fast ✓ Effective at interpolation ✓ Can extrapolate into novel ✓ Accurate ✓ Fast chemical spac
Slide 4: Multi-Pronged Business Enabled by Highly Differentiated Computational Platform
Multi-Pronged Business Enabled by Highly Differentiated Computational Platform SOFTWARE LICENSING • Life Sciences COLLABORATIONS • Materials Design • Drug Design PROPRIETARY PIPELINE ~1,785 customers worldwide1 • Materials Design 18 drug discovery collaborators2 • Drug Discovery & Development 8+ act
Slide 5: Recent Highlights
Recent Highlights 3Q24 Financial Results Novartis Collaboration Data Presentations • $35.3M total revenue • $150M upfront • SGR-3515 preclinical data • $31.9M software revenue • $2.3B in potential milestones presented at ENA24 • Received $48M from sale of plus royalties • PRMT5-MTA preclinical data
Slide 6: A Multi-Target Drug Discovery Collaboration and Expanded Software Licensing Agreement
A Multi-Target Drug Discovery Collaboration and Expanded Software Licensing Agreement 6
Slide 7: Schrödinger & Novartis Collaboration Leverages Synergies
Schrödinger & Novartis Collaboration Leverages Synergies Schrödinger Novartis • Licensing certain existing • Advance discovery efforts in core early-stage discovery programs therapeutic areas outside oncology • Development, regulatory and • World class experts in commercial expertise Combining physi
Slide 8: Collaboration Details & Financial Implications
Collaboration Details & Financial Implications $150M upfront • Upfront recognized over duration of research period Therapeutics Up to $2.3B in development, • Milestones begin in discovery and Collaboration regulatory and commercial milestones escalate • Mid-single to low-double digit Royalties on gl
Slide 9: A Broad Portfolio of Advancing Collaboration Programs
A Broad Portfolio of Advancing Collaboration Programs(1)(2) Phase 1 Phase 2 Phase 3 FDA-Approved TIBSOVO4 Immuno-oncology Metabolic Diseases3 Psoriasis3 IDHIFA4 Obesity Inflammatory Bowel Disease5 Undisclosed Undisclosed Undisclosed Undisclosed Additional programs in discovery and preclinical develo
Slide 10: Advancing Multiple Clinical and Preclinical Programs
Advancing Multiple Clinical and Preclinical Programs DISCOVERY PRECLINICAL PHASE 1 SGR-1505 (MALT1) R/R B-cell Malignancies* SGR-2921 (CDC7) R/R AML/MDS* SGR-3515 (Wee1/Myt1) Solid Tumors SOS1 Solid Tumors PRMT5-MTA Solid Tumors EGFRC797S Solid Tumors NLRP3 Immunology LRRK2 Neurology Undisclosed Pro
Slide 11: Clinical Programs with Breakthrough Potential
Clinical Programs with Breakthrough Potential SGR-1505 SGR-2921 SGR-3515 (MALT1) (CDC7) (Wee1/Myt1) • Generally well tolerated in • Potent and selective CDC7 • Clinically validated target healthy volunteers with no inhibition shows strong • Potential benefit in wide range dose-limiting tox or SAEs*
Slide 12: 3Q24 Financial Highlights vs. 3Q23
3Q24 Financial Highlights vs. 3Q23 Three Months Ended Sept.30 Q3 2023 Q3 2024 % Change Total revenue $42.6 $35.3 (17%) Software revenue $28.9 $31.9 10% Drug discovery revenue $13.7 $3.4 (75%) Gross profit $23.6 $17.7 (25%) Software gross margin 76% 73% Operating expenses $79.8 $86.2 7.9% Other incom
Slide 13: Four-Quarter Trailing Average Software Quarterly Revenue Trend
Four-Quarter Trailing Average Software Quarterly Revenue Trend 50 42.3 39.8 40.1 41.6 40 33.9 33.7 33.5 34.6 30.0 31.5 31.6 30 28.3 $ Millions 23.8 24.6 24.9 23.1 21.3 19.6 20 18.0 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 20
Slide 14: 2024 Financial Guidance
2024 Financial Guidance (As of November 12, 2024) Year-to-Date Updated 2024 2023 Actual 3Q24 Guidance Total revenue $216.7 $119.2 Software revenue $159.1 $100.7 8% – 13% Drug discovery revenue $57.5 $18.5 $20 – $30 Software gross margin 81% 77% Similar to 2022* Operating expense growth 28.4% 10.5% 8
Slide 15: Strategic Priorities and Timelines for Therapeutics Milestones
Strategic Priorities • Drive increased customer adoption of computational software platform • Advance science underlying computational platform • Expand portfolio of collaborations • Achieve clinical proof of concept for proprietary programs • Progress additional proprietary programs toward IND Time
Slide 16: Pioneering Computational Molecular Design
Pioneering Computational Molecular Design 3Q24 Financial Results November 12, 2024