Schrödinger (SDGR) 10-Q1 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover

Cover - shares	9 Months Ended
Cover - shares	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
Description of Business	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
Significant Accounting Policies	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
Revenue Recognition	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
Fair Value Measurements	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
Commitments and Contingencies	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
Income Taxes	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
Stockholders' Equity	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
Stock-Based Compensation	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
Equity Investments	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
Related Party Transactions	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
Segment Reporting	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
Pay vs Performance Disclosure - USD ($) $ in Thousands	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
Insider Trading Arrangements	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
Significant Accounting Policies (Policies)	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
Revenue Recognition (Tables)	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
Fair Value Measurements (Tables)	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
Commitments and Contingencies (Tables)	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
Stock-Based Compensation (Tables)	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
Segment Reporting (Tables)	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
Equity Investments - Additional Information (Details)	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
Segment Reporting - Additional Information (Details)	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