Schrodinger, Inc.

Thank you for standing by. Welcome to Schrodinger's conference call to review third quarter 2023 financial results. My name is Eric and I'll be your operator for today's call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. Please be advised that this call is being recorded at the company's request. Now I would like to introduce your host for today's conference, Ms. Jaron Madden, Senior Vice President of Investor Relations and Corporate Affairs. Please go ahead.

Thank you and good afternoon, everyone. Welcome to today's call, during which we will provide an update on the company and review our third quarter 2023 financial results. Earlier today, we issued a press release summarizing our results and progress across the company, which is available on our website at schrodinger.com. Here with me on our call today are Rami Fareed, CEO, Jeff Porges, Chief Financial Officer, and Karen Akinsania, President of R&D Therapeutics. Following our prepared remarks, we'll open the call for Q&A. During today's call, management will make statements that are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including without limitation, statements related to our outlook for the full year 2023, our quarter ending September 30, 2023, our plans to accelerate the growth of our software business and advance our collaborative and proprietary drug discovery programs, the timing of initiation of and relapse from our clinical trials, the clinical potential and properties of our compounds, the use of our cash resources, as well as our future expenses. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies, and prospects, which are based on the information currently available to us and on assumptions we have made. Actual results may differ materially due to a number of important factors, including the considerations described in the risk factors section and elsewhere in filings we make with the SEC, including our Form 10Q for the quarter ended September 30th, 2023. These forward-looking statements represent our views only as of today, and we caution you that, except as required by law, we may not update them in the future, whether as a result of new information, future events, or otherwise. Also included in today's call are certain non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and should be considered only in addition to and not a substitute for or superior to GAAP measures. Please refer to the tables at the end of our press release, which is available on our website for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures. And with that, I'd like to turn the call over to Rami.

Thanks, Sharon, and thank you, everyone, for joining us today. We had a successful and exciting third quarter marked by several important milestones for the company. We reported total revenue of 42.6 million, representing 15% growth compared to the third quarter of 2022, and we are on track to deliver on our full year revenue guidance. We began patient dosing for our phase one study of SGR 2921, and we received CTA approval to open clinical trial sites for our SGR 1505 patient study in Europe. Additionally, STR3515 is advancing, and we also have a number of exciting discovery programs just behind our lead programs, which we'll discuss at more length at our pipeline day in December. Today, we reported that rights to two related oncology discovery programs within the BMS collaboration reverted to us after BMS elected not to proceed with further development for strategic reasons. These programs were making excellent technical progress, and our team is assessing the next steps for these programs in the context of our overall portfolio strategy. BMS continues to be an important partner. We have three active research programs in the collaboration, as well as SOS1, which reached development candidate status and transitioned to BMS earlier this year. We are also discussing the potential for additional discovery programs with BMS. Collaborations are an important part of our business, and we continue to evaluate new partnerships where the science, overall scope, and value are consistent with our strategy. Turning to our software business, we remain confident about the opportunity for significant revenue growth among our largest software customers this year. The interest in computationally driven drug discovery is quite high, and we are seeing more customers increasing their utilization of our platform. We're continuing to invest in the development of new capabilities to enhance the value of our platform, and we expect these capabilities to support continued growth in our software business for many years to come. Our latest quarterly software release incorporates a number of key technologies, including the ability to more accurately predict certain ADMET properties, such as binding to cytochrome P450s and HERG, and technology that allows for prediction of antibody affinity as a function of pH. We are pleased with the progress we have made this year, and we're very excited about the opportunities that lie ahead. I greatly appreciate the hard work and commitment of all of our employees who are instrumental in our mission. I will now turn the call over to Jeff.