Schrödinger, Inc. (NASDAQ:SDGR) Q3 2023 Earnings Call Transcript

So I certainly don’t want to set an expectation that there’ll be a financial component on the Pipeline Day in terms of any sort of revenue commentary. We need to close out the year and we’ll be providing financial guidance when we report the fourth quarter, in part because the fourth quarter outcome influences the outlook for next year as well.

Chris Shibutani: And can I ask one expense follow-up question? You talk about redeploying within R&D sort of your employees from the collaborations to proprietary programs. Can we get a sense for sort of what that relative balance in that shift that’s ongoing? Is that more or less complete? Is that going to be a continuous process? I know that Karen is working to develop the proprietary pipeline, but just some perspective there because it does sound as if the sort of cost per head when you go to the propriety programs is incrementally more costly, I believe, versus being in the collaboration.

Geoff Porges: Just a quick comment, Chris. The cost per head is the same. It’s just that they run through the income statement in a different part of the income statement, if they’re working on a collaboration project versus they’re working on a proprietary program. To a certain extent, it’s accounting convention shifting from the cost of goods line to an R&D line. In terms of your question about the trajectory, I do think that – I would suggest that, in the fourth quarter, that trend is going to continue because, obviously, we have some programs that we were actively deployed on in the first quarter that we’ll not be actively deployed on collaboration programs in the fourth quarter and beyond. But equally, I think we still believe in collaborations, we still think that’s an important part of our business mix, so we will continue to be engaged in collaborations, and so there continues to be expense for the part of the therapeutics group going through that line in the income statement.

I hope that gives you at least a directional answer.

Operator: Thank you. Ladies and gentlemen, there are no further questions at this time. This concludes today’s conference call. Thank you all for joining and you may now disconnect your lines.