Schrodinger Inc (SDGR) 2024 Q3 法說會逐字稿

Thank you for standing by. Welcome to Schrodinger's conference call to review our third-quarter 2024 financial results. My name is Madison, and I will be your operator for today's call. (Operator Instructions) Please be advised that this call is being recorded at the company's request.

謝謝你的支持。歡迎參加薛丁格的電話會議，回顧我們 2024 年第三季的財務表現。我叫麥迪遜，我將擔任您今天通話的接線生。（操作員說明）請注意，本次通話是應公司要求進行錄音的。

Now I would like to introduce your host for today's conference, Ms. Jaren Madden, Senior Vice President in Investor Relations and Corporate Affairs. Please go ahead..

現在我想介紹一下今天會議的主持人，投資者關係和公司事務高級副總裁 Jaren Madden 女士。請繼續..

Thank you and good morning, everyone. Welcome to today's call during which we will provide an update on the company and review our third-quarter 2024 financial results. In addition to our press release announcing our third-quarter results, we also issued a press release announcing our new research collaboration and expanded software licensing agreement with Novartis. Both press releases are available on our website at schrodinger.com.

謝謝大家，早安。歡迎參加今天的電話會議，我們將在電話會議中提供公司的最新資訊並審查 2024 年第三季的財務業績。除了宣布第三季業績的新聞稿外，我們還發布了一份新聞稿，宣布我們與諾華的新研究合作和擴大的軟體授權協議。這兩份新聞稿均可在我們的網站 schrodinger.com 上取得。

Here with me on our call today are Ramy Farid, Chief Executive Officer; Karen Akinsanya, President of R&D and Therapeutics; and Geoff Porges, Chief Financial Officer. Following our prepared remarks, we'll open the call for Q&A.

今天與我一起參加電話會議的是執行長 Ramy Farid； Karen Akinsanya，研發與治療總裁；和財務長傑夫·波格斯 (Geoff Porges)。在我們準備好的發言之後，我們將開始問答環節。

During today's call, management will make statements that are forward-looking and made pursuant to the Safe Harbor provisions of the Private Security Litigation Reform Act of 1995, including without limitation, statements related to our outlook for the full-year 2024; our plans to accelerate growth of our software business and advance our collaborative and proprietary drug discovery programs; the timing of, initiation of, and readouts from our clinical trials; the clinical potential and properties of our compounds; the anticipated benefits of our collaboration with Novartis; the use of our cash resources; and 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.

在今天的電話會議中，管理階層將根據 1995 年《私人安全訴訟改革法案》的安全港條款發表前瞻性聲明，包括但不限於與我們對 2024 年全年展望相關的聲明；我們計劃加速軟體業務的成長並推進我們的協作和專有藥物發現計劃；我們的臨床試驗的時間、啟動和讀數；我們的化合物的臨床潛力和特性；我們與諾華合作的預期收益；我們現金資源的使用；以及我們未來的開支。這些前瞻性陳述反映了我們目前對我們的計劃、意圖、期望、策略和前景的看法，這些看法是基於我們目前掌握的資訊和我們所做的假設。

Actual results may differ materially due to a number of important factors including the considerations described in the Risk Factors section and elsewhere in the filings we make with the SEC, including our Form 10-Q for the quarter ended June 30, 2024. 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.

由於許多重要因素，包括風險因素部分和我們向 SEC 提交的文件中其他部分（包括截至 2024 年 6 月 30 日的季度的 10-Q 表格）中描述的考慮因素，實際結果可能會存在重大差異。這些前瞻性陳述僅代表我們截至目前為止的觀點，我們提醒您，除非法律要求，否則我們將來可能不會因新資訊、未來事件或其他原因而更新它們。

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.

今天的電話會議還包括某些非公認會計準則財務指標。這些非 GAAP 財務指標並非依照公認會計原則制定，只能作為 GAAP 指標的補充，而非替代或優於 GAAP 指標。請參閱我們網站上的新聞稿末尾的表格，以了解這些非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的對帳情況。

And with that, I'd like to turn the call over to Ramy.

說到這裡，我想把電話轉給拉米。

Thanks Jaren, and thank you everyone for joining us today. At Schrodinger, we are transforming the way therapeutics and materials are discovered. Our industry-leading computational platform combines proven physics-based methods with the speed of machine learning to accelerate molecular discovery. Our platform is used by thousands of companies and research institutes worldwide, including every major pharmaceutical company, and the success of collaborators and co-founded companies reflects the power of our approach.

謝謝賈倫，也謝謝大家今天加入我們。在薛丁格，我們正在改變治療方法和材料的發現方式。我們業界領先的運算平台將經過驗證的基於物理的方法與機器學習的速度相結合，以加速分子發現。我們的平台被全球數千家公司和研究機構使用，包括每一家大型製藥公司，合作者和共同創辦公司的成功反映了我們方法的力量。

Today, we are very pleased to review the progress we have made across the business this quarter, beginning with this morning's exciting news of our collaboration with Novartis. Under the multi-target collaboration, Schrodinger and Novartis will combine preexisting research efforts to advance therapeutics for a number of undisclosed targets outside of oncology. Schrodinger will receive $150 million upfront and be eligible to receive up to $2.3 billion in milestone payments, as well as mid-single digit to low double-digit royalties on sales. This collaboration is a testament to the track record of our world-class discovery and translational science teams, who are leveraging our leading computational platform at scale.

今天，我們非常高興地回顧本季我們在整個業務中取得的進展，首先是今天早上我們與諾華合作的令人興奮的消息。在多標靶合作下，薛丁格和諾華將結合現有的研究工作，並推進腫瘤學以外許多未公開標靶的治療。薛丁格將獲得 1.5 億美元的預付款，並有資格獲得高達 23 億美元的里程碑付款，以及中個位數到低兩位數的銷售特許權使用費。此次合作證明了我們世界一流的發現和轉化科學團隊的業績記錄，他們正在大規模利用我們領先的運算平台。

Novartis also signed an expanded multi-year software agreement that substantially increases their access to our computational technology and enterprise informatics platform. The collaboration and software license agreement with Novartis combines further development of programs from our portfolio, commitment to develop candidates against targets of mutual interest, and increase scaled deployment of our software by Novartis. We are seeing increased demand for these combination drug discovery-software arrangements that leverage synergies between different components of our business.

諾華還簽署了一份擴展的多年軟體協議，大大增加了他們對我們的運算技術和企業資訊學平台的存取。與諾華的合作和軟體授權協議結合了我們產品組合中程式的進一步開發、針對共同感興趣的目標開發候選藥物的承諾，以及諾華擴大我們軟體的規模部署。我們看到對這些組合藥物發現軟體安排的需求不斷增加，這些組合利用了我們業務不同組成部分之間的協同效應。

Turning to our financial results, total revenue for the third quarter was $35.3 million, and software revenue was $31.9 million. While software revenue was slightly below our expectations, we are excited about the opportunities we have to finish the year strongly. Customer engagement is high. We are confident about the expected scale of customer renewals and scale-ups through the end of the year, and we have raised the lower end of our software revenue growth guidance for the year. Geoff will discuss our third-quarter financial results and updated guidance in more detail shortly.

轉向我們的財務業績，第三季的總收入為 3,530 萬美元，軟體收入為 3,190 萬美元。雖然軟體收入略低於我們的預期，但我們對有機會強勁地結束這一年感到興奮。客戶參與度很高。我們對到年底的客戶續訂和擴大規模的預期規模充滿信心，並且我們提高了今年軟體收入成長指導的下限。傑夫很快就會更詳細地討論我們的第三季財務業績和更新的指導。

We continue to see progress and value from companies we have co-founded. Ajax Therapeutics recently dosed the first patient in their first Phase 1 study, Nimbus announced updated Phase 1/2 clinical data for their HPK1 inhibitor, and we added $48 million to our cash balance as a result of Lilly's acquisition of Morphic. Our proprietary pipeline is also advancing and we look forward to reporting initial data from all three of our clinical stage programs next year.

我們繼續看到我們共同創立的公司的進步和價值。Ajax Therapeutics 最近在其第一個1 期研究中對第一位患者進行了給藥，Nimbus 宣布更新了其HPK1 抑製劑的1/2 期臨床數據，並且由於禮來公司收購Morphic，我們的現金餘額增加了4800 萬美元。我們的專有管道也在推進，我們期待明年報告我們所有三個臨床階段項目的初始數據。

Through the remainder of the year, we see clear opportunities to drive software growth, extend our scientific leadership, and advance our collaborative and proprietary pipeline.

在今年剩下的時間裡，我們看到了推動軟體成長、擴大我們的科學領先地位以及推進我們的協作和專有管道的明顯機會。

I will now turn the call over to Karen who will discuss the Novartis collaboration in more detail and provide an update on our proprietary pipeline.

我現在將把電話轉給凱倫，她將更詳細地討論諾華的合作，並提供我們專有管道的最新資訊。

Thank you, Ramy, and good morning, everyone. The collaboration we announced today with Novartis builds on more than a decade of productive collaborations with pharmaceutical partners and companies we've co-founded. This significant new agreement underscores our track record of generating high-quality candidates for clinical development and the growing interest across the industry in scaling up the use of our physics-based computational platform to solve drug design challenges.

謝謝你，拉米，大家早安。我們今天宣布與諾華的合作建立在與製藥合作夥伴和我們共同創立的公司十多年來富有成效的合作基礎上。這項重要的新協議強調了我們在為臨床開發產生高品質候選藥物方面的記錄，以及整個行業對擴大使用我們基於物理的計算平台來解決藥物設計挑戰的興趣日益濃厚。

Over the last few years, we have leveraged our expertise in experimental structural biology and protein structure refinement together with our computational platform to pursue novel insights and chemical matter for compelling first-in-class targets outside of oncology. A selection of these undisclosed programs were licensed to Novartis as part of this transaction. Schrodinger and Novartis will now combine our existing research efforts to advance therapeutics for these programs and collaborate on additional targets of mutual interest in Novartis' core therapeutic areas.

在過去的幾年中，我們利用我們在實驗結構生物學和蛋白質結構精煉方面的專業知識以及我們的計算平台來追求新穎的見解和化學物質，以實現腫瘤學之外引人注目的一流目標。作為本次交易的一部分，諾華公司獲得了這些未公開項目的選擇。薛丁格和諾華現在將結合我們現有的研究工作來推進這些計畫的治療，並在諾華核心治療領域的共同感興趣的其他目標上進行合作。

The decision to partner these programs with Novartis reflects our view that their deep therapeutic area and clinical expertise will amplify and accelerate the opportunity to move these programs through development after candidate selection and potentially to commercialization. This partnership is emblematic of our business development and translational science strategy to leverage the extensive capabilities and experience of specific partners to advance and maximize the potential of certain proprietary programs.

與諾華合作這些計畫的決定反映了我們的觀點，即他們深厚的治療領域和臨床專業知識將擴大並加速這些計畫在候選者選擇後通過開發並可能實現商業化的機會。這種夥伴關係象徵著我們的業務發展和轉化科學策略，即利用特定合作夥伴的廣泛能力和經驗來推進和最大限度地發揮某些專有專案的潛力。

The Novartis collaboration is also an example of an important initiative that we have implemented in recent years, the juxtaposition of a drug discovery collaboration and significantly expanded software access enables peer-to-peer platform learning while pursuing joint therapeutic programs. This enhances knowledge transfer and first-hand understanding of the impact of the platform during the scale-up journey, facilitating wider adoption in the future.

與諾華的合作也是我們近年來實施的一項重要舉措的一個例子，藥物發現合作與顯著擴展的軟體訪問的並置使得點對點平台學習能夠在追求聯合治療項目的同時實現。這增強了知識轉移和對平台在擴展過程中影響的第一手了解，從而促進未來更廣泛的採用。

Turning briefly to our proprietary pipeline, we are continuing to make progress in our three clinical stage programs. SGR-1505, our MALT1 inhibitor, is advancing in a Phase 1 study in patients with relapsed refractory B-cell lymphomas. SGR-2921, our CDC7 inhibitor, is also advancing through a Phase 1 study in patients with relapsed refractory acute myeloid leukemia or high-risk myelodysplastic syndrome. Earlier this year, we initiated the Phase 1 study of our Wee1/Myt1 co-inhibitor, SGR-3515, in patients with advanced solid tumors. We are encouraged by the progress of the studies and are on track to report initial clinical data from all three programs in 2025.

簡單地談談我們的專有管道，我們正在繼續在三個臨床階段項目中取得進展。我們的 MALT1 抑制劑 SGR-1505 正在針對復發難治性 B 細胞淋巴瘤患者進行第 1 期研究。我們的 CDC7 抑制劑 SGR-2921 也正在針對復發難治性急性骨髓性白血病或高風險骨髓增生異常綜合症患者進行第 1 期研究。今年早些時候，我們啟動了 Wee1/Myt1 聯合抑制劑 SGR-3515 在晚期實體瘤患者中的 1 期研究。我們對研究的進展感到鼓舞，並預計在 2025 年報告所有三個項目的初步臨床數據。

We recently presented data supporting the differentiated profiles of our molecules. Last month at the 2024 ENA triple meeting, we presented preclinical data for SGR-3515 demonstrating a favorable pharmacological profile and dosing schedule enabled by co-inhibition and synthetic lethality of Wee1 and Myt1. Also at ENA, we presented an update on our PRMT5-MTA program, which highlighted a series of highly selective molecules with the potential for best-in-class pharmacological properties.

我們最近提供了支持我們分子差異化特徵的數據。上個月，在 2024 年 ENA 三人會議上，我們展示了 SGR-3515 的臨床前數據，證明了 Wee1 和 Myt1 的共同抑制和合成致死作用實現了良好的藥理學特徵和給藥方案。同樣在 ENA，我們介紹了 PRMT5-MTA 計劃的最新情況，其中重點介紹了一系列具有一流藥理特性潛力的高度選擇性分子。

Behind these programs, we are pursuing additional first-in-class and best-in-class opportunities that have the potential to generate value through new ventures, partnerships or by advancing them independently. We look forward to reporting continued progress across our pipeline over the coming months.

在這些計劃的背後，我們正在尋求更多一流和一流的機會，這些機會有可能透過新企業、合作夥伴關係或獨立推進來創造價值。我們期待在未來幾個月報告我們管道的持續進展。

I'll now turn the call over to Geoff.

我現在將電話轉給傑夫。

Thank you Karen, and good morning everyone.

謝謝凱倫，大家早安。

Q3 was a very productive quarter for Schrodinger. During the quarter, our software revenue grew by 10%, and for the first nine months of the year, our software growth of 11% is in line with our expectations and the usual timing of large renewal opportunities. We initiated the predictive tox project, funded in part by the grant from the Gates Foundation, and today we announced a significant new multi-target drug discovery collaboration with Novartis, diversifying our collaboration into new therapeutic areas.

對薛丁格來說，第三季是一個非常有成效的季度。本季度，我們的軟體收入成長了 10%，今年前 9 個月，我們的軟體成長了 11%，符合我們的預期和大型更新機會的常見時機。我們啟動了預測毒性項目，部分資金由蓋茲基金會資助，今天我們宣布與諾華公司開展一項重要的新多標靶藥物發現合作，將我們的合作多元化到新的治療領域。

Our clinical programs continue to advance and during Q3, we realized $48 million from the successful sale of Morphic to Lilly. We bolstered our cash reserves as a result of this sale and expect our capital position to increase as a result of the collaboration we announced today.

我們的臨床計畫繼續推進，在第三季度，我們透過向禮來公司成功出售 Morphic 獲得了 4800 萬美元的收益。此次出售增強了我們的現金儲備，並預計我們的資本狀況將因我們今天宣布的合作而增加。

Software revenue in Q3 was just below the lower end of our expectations, driven by a slower than expected ramp in our activities for the predictive tox initiative in August and the associated slower recognition of the revenue from the grant from the Gates Foundation, as well a smaller software opportunities that were deferred or reduced compared to our expectations. We expect the shortfall in the revenue for the Gates-funded grant to be made up over the remaining quarters of the grant. Based on these expectations and our outlook for the quarter, we have narrowed and increased the lower end of the range of our software revenue growth guidance for the year.

第三季的軟體收入略低於我們預期的下限，這是由於我們 8 月預測性毒物計畫活動的成長速度慢於預期，以及蓋茲基金會資助的收入確認速度較慢，以及與我們的預期相比，較小的軟體機會被推遲或減少。我們預計蓋茲資助的撥款的收入缺口將在撥款的剩餘季度得到彌補。根據這些預期和我們對本季的展望，我們縮小並提高了今年軟體收入成長指導範圍的下限。

Drug discovery revenue was significantly lower in Q3 than Q2 and compared to Q3 in the prior year. This reduction was based on revenue recognized from milestones and upfronts in the prior periods that did not recur in Q3. Based on the timing of milestones for the remainder of the year, we now expect drug discovery revenue for the year to be in the range of $20 million to $30 million, compared to the prior guidance of $30 million to $35 million. Based on the recently announced Novartis collaboration, we expect our drug discovery revenue to increase in 2025.

第三季的藥物發現收入顯著低於第二季和去年第三季。這一減少是基於從里程碑和前期預付款中確認的收入，這些收入在第三季度沒有重複出現。根據今年剩餘時間里程碑的時間安排，我們現在預計今年的藥物發現收入將在 2,000 萬美元至 3,000 萬美元之間，而先前的指導則為 3,000 萬美元至 3,500 萬美元。根據最近宣布的與諾華的合作，我們預計我們的藥物發現收入將在 2025 年增加。

In Q3, our software revenue was $31.9 million and increased by 10% compared to the same period a year ago. The increase was driven by increases in hosted revenue as existing large and midsize customers transitioned to hosted software license, and existing hosted customer increased the size of their contracts during renewals. Hosted revenue increased to 28% of total software revenue compared to 23% in the same period in 2023. The increase in hosted revenue was partially offset by decreases in on-prem contracts, as mid to large multi-year on-prem customers from Q3 2023 did not have scheduled renewals in Q3 this year.

第三季度，我們的軟體營收為 3,190 萬美元，年增 10%。這一增長是由於現有大中型客戶轉向託管軟體許可證以及現有託管客戶在續約期間增加了合約規模而導致託管收入增加。託管收入佔軟體總收入的比例從 2023 年同期的 23% 增至 28%。託管收入的成長被本地合約的減少部分抵消，因為從 2023 年第三季開始的中型到大型多年本地客戶今年第三季沒有計劃續約。

Services and maintenance revenue was relatively flat year over year, and this also reflects more maintenance services being incorporated into hosted software contracts. Contribution revenue increased to $3.1 million, driven by the initial revenue recognized from the Gates Foundation for the predictive toxicology initiative added to the preexisting battery research grant.

服務和維護收入較去年同期相對持平，這也反映出更多的維護服務被納入託管軟體合約中。由於蓋茲基金會為預測毒理學計畫確認的初始收入添加到了現有的電池研究撥款中，貢獻收入增加到了 310 萬美元。

Drug discovery revenue was $3.4 million in Q3 compared to $13.7 million in Q3 last year. The lower drug discovery revenue was due to the reduced number of collaboration projects in Q3 this year compared to the prior year and the absence of significant milestones during the quarter.

第三季藥物發現收入為 340 萬美元，而去年第三季為 1,370 萬美元。藥物發現收入較低的原因是今年第三季的合作項目數量較上年減少以及該季度沒有重大里程碑。

Total revenue was $35.3 million in Q3 and decreased by 17% compared to the prior year. The decrease was due to lower drug discovery revenue in the quarter. Total revenue also declined compared to Q2 based on lower drug discovery revenue.

第三季總營收為 3,530 萬美元，比去年同期下降 17%。下降的原因是該季度藥物發現收入下降。由於藥物發現收入下降，總收入也較第二季度下降。

Our software gross margin was 73.4% in Q3 compared to 75.7% in the same period a year ago and compared to 80% in Q2 this year. The gross margin in Q3 is being affected by the initial revenue recognized in the Gates predictive tox collaboration and is likely to continue at a lower level than 2023 for the duration of the grant.

第三季我們的軟體毛利率為 73.4%，去年同期為 75.7%，今年第二季為 80%。第三季的毛利率受到蓋茲預測毒物合作中確認的初始收入的影響，並且在撥款期間可能會繼續保持在低於 2023 年的水平。

Our cost of services for drug discovery was $9.1 million in Q3 compared to $12 million in Q3 last year and $8.8 million in Q2 this year. The decrease in cost of drug discovery compared to Q3 last year is due to the smaller number of collaboration programs in our portfolio this year compared to last year. As we have noted in prior periods, some of the FTEs and other expenses previously reported in drug discovery cost of services are now being reported in R&D and are supporting our proprietary internal programs. Looking ahead, this reallocation may be subject to the balance between collaboration and proprietary projects and should move in the other direction as we ramp up our activity for the Novartis collaboration.

第三季我們的藥物發現服務成本為 910 萬美元，而去年第三季為 1,200 萬美元，今年第二季為 880 萬美元。與去年第三季相比，藥物發現成本有所下降，這是因為與去年相比，今年我們的投資組合中的合作項目數量較少。正如我們在前期所指出的，以前在藥物發現服務成本中報告的一些 FTE 和其他費用現在已在研發中報告，並支持我們專有的內部計劃。展望未來，這種重新分配可能會受到合作和專有項目之間的平衡的影響，並且隨著我們加大與諾華合作的活動，這種重新分配應該朝另一個方向發展。

Our overall gross margin was 50% in Q3 2024 compared to 56% in the same period a year ago. The difference was due to lower drug discovery revenue this year and the lower software gross margin.

2024 年第三季我們的整體毛利率為 50%，而去年同期為 56%。造成差異的原因是今年藥物發現收入下降和軟體毛利率下降。

In Q3 this year, R&D expense was $51 million compared to $47 million in Q3 last year and compared to $51 million in Q2. The year-over-year increase in R&D was mostly driven by increased FTE-associated expenses in both our platform and therapeutic R&D activities. As in prior periods, our drug discovery R&D was a little over half of our total reported R&D expense in the quarter.

今年第三季度，研發費用為 5,100 萬美元，去年第三季為 4,700 萬美元，第二季為 5,100 萬美元。研發的年增率主要是由於我們的平台和治療研發活動中 FTE 相關費用的增加。與之前的時期一樣，我們的藥物發現研發費用略高於本季報告的研發費用總額的一半。

Sales and marketing expenses were $10.3 million in Q3 2024 and increased by 13.6% compared to Q3 last year, and by 7% compared to Q2 this year. The increase in sales and marketing expense was primarily due to higher FTE expenses supporting our software commercialization.

2024 年第三季銷售和行銷費用為 1,030 萬美元，比去年第三季成長 13.6%，比今年第二季成長 7%。銷售和行銷費用的增加主要是由於支持我們軟體商業化的 FTE 費用增加。

G&A expense was $24.8 million in Q3 this year and increased by 4% compared to Q3 in 2023, and by 6% compared to Q2 2024. G&A expense increased based on FTE-driven costs and royalty obligations associated with the sale of Morphic stock. These were offset by reduced professional services expenses and taxes.

今年第三季的一般管理費用為 2,480 萬美元，比 2023 年第三季成長 4%，比 2024 年第二季成長 6%。由於 FTE 驅動的成本以及與 Morphic 股票銷售相關的特許權使用費義務，一般管理費用有所增加。這些被專業服務費用和稅收的減少所抵消。

Total operating expenses were $86 million compared to $80 million in Q3 last year and compared to $84 million in Q2. The increase compared to last year was mainly due to higher R&D.

總營運費用為 8,600 萬美元，去年第三季為 8,000 萬美元，第二季為 8,400 萬美元。與去年相比的成長主要是由於研發費用的增加。

For Q3, our operating loss was $68.4 million compared to a loss of $56 million in Q3 2023 and a loss of $53 million in Q2 this year. The change in fair value of equity method investments in Q3 was $25.5 million, driven by the increase in the value of our investments in structure and Morphic during the quarter. In the same period last year, we reported a reduction in the value of these investments of $14.5 million, and in Q2 we reported a reduction of $5.8 million in value.

第三季的營運虧損為 6,840 萬美元，而 2023 年第三季的營運虧損為 5,600 萬美元，今年第二季的虧損為 5,300 萬美元。第三季權益法投資的公允價值變動為 2,550 萬美元，這是由於本季我們對 Structure 和 Morphic 的投資價值增加所致。去年同期，我們報告這些投資的價值減少了 1,450 萬美元，第二季我們報告的價值減少了 580 萬美元。

Other income was $4.7 million in Q3 compared to $5.8 million in Q3 last year and compared to $4.6 million in Q2 this year. The decrease compared to the prior year was based on a lower cash balance this year. Total other income was $30.2 million in Q3 compared to a loss of $8.7 million in Q3 last year, and a loss of $1.2 million in Q2 this year.

第三季其他營收為 470 萬美元，去年第三季為 580 萬美元，今年第二季為 460 萬美元。與前一年相比減少的原因是今年現金餘額減少。第三季其他營收總額為 3,020 萬美元，而去年第三季虧損 870 萬美元，今年第二季虧損 120 萬美元。

Our tax benefit was $0.1 million and our net income was a loss of $38 million or $0.52 per share in Q3. A year ago, we reported a net loss of $62 million or $0.86 per share. The lower net loss was due to higher gain on equity method investments offsetting higher loss from operations in Q3.

第三季我們的稅收優惠為 10 萬美元，淨收入虧損 3,800 萬美元，即每股虧損 0.52 美元。一年前，我們報告淨虧損 6,200 萬美元，即每股 0.86 美元。淨虧損減少是由於權益法投資收益增加抵銷了第三季營運損失增加。

Our diluted and basic share count was 72.8 million compared to 71.9 million in the same period of 2023 and compared to 72.2 million in Q2 this year.

我們的稀釋後基本股數量為 7,280 萬股，而 2023 年同期為 7,190 萬股，今年第二季為 7,220 萬股。

For the nine months of this year, our software revenue was $101 million and increased by 11% compared to the same period of 2023. Our drug discovery revenue declined from $52 million to $18.5 million based on the non-recurring milestones recognized and the larger collaboration portfolio last year. Our total revenue year to date is $119 million compared to $142.5 million in the same period last year. Our software gross margin is 76.5% for the first nine months of the year compared to 77% for the comparable period last year. Favorable trends in expenses were offset by the effect of recognizing the revenue and costs for the Gates collaboration in the most recent quarter.

今年前 9 個月，我們的軟體營收為 1.01 億美元，與 2023 年同期相比成長了 11%。基於去年認可的非經常性里程碑和更大的合作組合，我們的藥物發現收入從 5,200 萬美元下降到 1,850 萬美元。我們今年迄今的總收入為 1.19 億美元，而去年同期為 1.425 億美元。今年前 9 個月，我們的軟體毛利率為 76.5%，而去年同期為 77%。支出的有利趨勢被最近一個季度確認蓋茲合作的收入和成本的影響所抵消。

Operating expenses increased from $231 million in the first nine months of 2023 to $257 million in the first nine months of this year. The increase was mainly due to higher R&D expenses.

營運費用從 2023 年前 9 個月的 2.31 億美元增加到今年前 9 個月的 2.57 億美元。增加的主要原因是研發費用增加。

Our loss from operations for the first nine months was $189 million compared to $148 million in the same period a year ago. Other income was $42 million for the first nine months compared to $222 million for the same period in 2023, when we recognized the distribution from the sale of Nimbus' TYK2 to Takeda.

前 9 個月的營運虧損為 1.89 億美元，而去年同期為 1.48 億美元。前 9 個月的其他收入為 4,200 萬美元，而 2023 年同期的其他收入為 2.22 億美元，當時我們確認了向武田出售 Nimbus TYK2 的分配。

Net income year-to-date is a loss of $147 million or $2.02 per share. This compares to net income of $71 million and EPS of $1.00 for the same period of 2023.

年初至今淨利虧損 1.47 億美元，即每股虧損 2.02 美元。相比之下，2023 年同期的淨利潤為 7,100 萬美元，每股收益為 1.00 美元。

Our cash used in operations this quarter was $33 million compared to $50 million in Q3 last year. Our cash and marketable securities balance increased to $398 million at the end of Q3 compared to $382 million at the end of Q2. This increase was based on the realization of $49 million from the sale of shares in co-founded company equity positions during the quarter, which offset our operating cash burn.

本季我們營運中使用的現金為 3,300 萬美元，而去年第三季為 5,000 萬美元。第三季末，我們的現金和有價證券餘額增加至 3.98 億美元，而第二季末為 3.82 億美元。這一成長是基於本季出售共同創辦公司股權的股份變現 4,900 萬美元，抵消了我們的營運現金消耗。

Before I share our updated financial guidance for the year, I would like to make some general comments about the financial implications of the collaboration we announced today. First, while the upfront payment is cash that we should receive around year-end, the revenue associated with that cash will be recognized over several years as we execute the drug discovery project in the collaboration. We expect there to be some ramp-up over several quarters associated with these projects, so the drug discovery revenue contribution this year will be very modest.

在分享我們今年最新的財務指引之前，我想對我們今天宣布的合作的財務影響發表一些一般性評論。首先，雖然預付款是我們應該在年底左右收到的現金，但當我們在合作中執行藥物發現專案時，與現金相關的收入將在幾年內得到確認。我們預計這些項目將在幾個季度內有所增長，因此今年的藥物發現收入貢獻將非常有限。

The collaboration is also associated with a significant multi-year software contract that substantially increases Novartis' access to our technology. The software contract will contribute considerable revenue in Q4 as on-prem software revenue, and will also contribute some revenue recognized ratably over the full three-year period of the contract. This Q4 software revenue contribution is consistent with the updated financial guidance for the year.

此次合作還涉及一項重要的多年期軟體合約，該合約大大增加了諾華對我們技術的使用。該軟體合約將在第四季度貢獻可觀的收入作為本地軟體收入，並且還將貢獻在合約的整個三年期間按比例確認的一些收入。第四季軟體收入貢獻與今年更新的財務指引一致。

Based on our news today and the outlook for the balance of our business, we are narrowing the range of our software revenue guidance from 6% to 13% to 8% to 13%. The remaining uncertainty is not about whether outstanding software renewals occur but about the scale of the contracts and the final terms and timing and their effect on revenue. We are lowering our drug discovery revenue guidance to $20 million to $30 million from $30 million to $35 million. The lower range reflects our reduced probability of reaching collaboration milestones during the remainder of Q4 and the possibility of recognizing these milestones and other revenue from collaborations in 2025.

根據我們今天的新聞和對業務平衡的展望，我們將軟體收入指引範圍從 6% 至 13% 縮小到 8% 至 13%。剩下的不確定性不在於是否會發生未完成的軟體更新，而是合約的規模、最終條款和時間安排及其對收入的影響。我們將藥物發現收入指引從 3,000 萬美元至 3,500 萬美元下調至 2,000 萬美元至 3,000 萬美元。較低的範圍反映了我們在第四季度剩餘時間內達到合作里程碑的可能性降低，以及在 2025 年確認這些里程碑和其他合作收入的可能性。

The other aspects of our financial guidance are unchanged. We still expect operating expense growth to be significantly lower in 2024 than 2025. Our operating cash use guidance is unchanged but will be influenced by the timing of receipt of payment from Novartis around year end.

我們財務指導的其他方面沒有變化。我們仍預期 2024 年營運費用成長將顯著低於 2025 年。我們的營運現金使用指引維持不變，但會受到諾華公司年底左右收到付款的時間的影響。

We are very excited about the outlook for the rest of the year, and this new collaboration, which sees another global pharmaceutical company recognizing the value of our approach to drug discovery, particularly when deployed at scale. We see many additional opportunities for similar increases in scale at other large biotech and pharma companies, as well as additional collaborations. Our proprietary research efforts were a significant part of this collaboration and we look forward to disclosing clinical data from our programs next year.

我們對今年剩餘時間的前景以及這次新的合作感到非常興奮，這使得另一家全球製藥公司認識到我們藥物發現方法的價值，特別是在大規模部署時。我們看到其他大型生物技術和製藥公司有許多類似的擴大規模的機會，以及更多的合作。我們的專有研究工作是此次合作的重要組成部分，我們期待明年披露我們計畫的臨床數據。

I'll now turn the call back to Ramy.

我現在將電話轉回拉米。

Thanks Geoff. We are very pleased with the progress we have made this year and the opportunities we have to deliver on our full-year results. I'd like to acknowledge the extraordinary efforts of our employees. Our achievements are a direct result of their dedication, commitment and hard work.

謝謝傑夫。我們對今年取得的進展以及實現全年業績的機會感到非常高興。我要感謝我們員工的非凡努力。我們的成就是他們的奉獻、承諾和辛勤工作的直接結果。

At this time, we'd be happy to take your questions.

目前，我們很樂意回答您的問題。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Michael Yee, Jefferies.

麥可葉，杰弗里斯。

This is Matt on for Mike. Can you expand just a bit on the key drivers here that give you confidence in the updated software guidance today, and especially can you expand at all on the extent that the deal today helps you meet that guidance, and any other trends that you would maybe highlight or point to that give you confidence this quarter and moving forward as well?

這是麥克的馬特。您能否詳細介紹一下讓您對今天更新的軟體指南充滿信心的關鍵驅動因素，特別是您能否詳細介紹一下今天的交易可以幫助您滿足該指南以及您可能會遇到的任何其他趨勢強調或指出這一點讓您對本季和未來充滿信心？

Sure, Matt. The fourth quarter has always been, or at least in recent years a large proportion of annual revenue. If you look back the last few years, it has been in the range of 42% to 44% of total revenue for software, and we expect that to be similar this year. So we are on track to close the renewals necessary to meet that narrowed guidance range.

當然，馬特。第四季一直（或至少近年來）佔年度收入的很大比例。如果你回顧過去幾年，它一直在軟體總收入的 42% 到 44% 之間，我們預計今年也會類似。因此，我們有望完成必要的更新，以滿足縮小的指導範圍。

Clearly, Novartis is a significant component of that, but it's not the only component of it, and we are in discussions with multiple other companies about the nature of their renewals. As I said in my prepared remarks, it's whether the renewals, the number of years of the renewal, the exact mix between on-prem and hosted revenue all influences where we come in that range. But we're very confident about the range, we're very confident about the discussions we're having. Clearly we're almost halfway through the quarter now, so that's the basis for the increased confidence that we've conveyed within our range.

顯然，諾華是其中的重要組成部分，但它並不是唯一的組成部分，我們正在與其他多家公司討論其續約的性質。正如我在準備好的演講中所說，續約、續約年數、本地和託管收入之間的確切組合是否都會影響我們在該範圍內的位置。但我們對產品範圍非常有信心，對我們正在進行的討論也非常有信心。顯然，本季已經快過半了，因此這是我們在範圍內表達的信心增強的基礎。

Mani Foroohar, Leerink.

瑪尼·福魯哈爾，李林克。

Hey guys, thanks for the questions, and congratulations on the deal.

嘿夥計們，感謝您的提問，並祝賀這筆交易。

As I'm looking at the updated guidance, Geoff, should we think about the narrowed drug discovery guidance as reflecting a timing event, i.e. should we be looking to perhaps a more fulsome 1Q/2Q next year in drug discovery? Then I have a quick follow-up.

當我正在查看更新的指南時，傑夫，我們是否應該將縮小的藥物發現指南視為反映了一個時間事件，即我們是否應該期待明年第一季/第二季的藥物發現更加豐富？然後我會進行快速跟進。

Thanks, Mani. Yeah, I think in my prepared remarks, I indicated that the basis for the reduction in the range was related to uncertainty about timing of events around the end of the year. I think our confidence about next year is considerable already. We're not giving formal guidance about next year, but you can see some of the opportunities that we were anticipating towards the end of the year, we're being cautious about in terms of timing, and clearly the Novartis deal with significant announcement with respect to next year as well, so all of those things give us a pretty high degree of confidence turning into the year.

謝謝，瑪尼。是的，我想在我準備好的發言中，我指出縮小範圍的基礎與年底左右事件發生時間的不確定性有關。我認為我們對明年的信心已經很大了。我們不會給出有關明年的正式指導，但您可以看到我們預計到年底的一些機會，我們在時機方面持謹慎態度，並且顯然諾華交易與重大公告對明年也是如此，所以所有這些都讓我們對今年充滿信心。

That's helpful. From the comments here on the Novartis deal, give us some color on how you guys are thinking about the opportunity set on renewals with large existing partners? If you could help comment a little bit on what you're seeing in terms of new partners, new clients, new customer adds, and to what extent we should think about opening of the capital markets and exposure to biotech funding cycles in terms of new client formation as being a contributor over the next few months, and what you guys are seeing in that slice of the end market for you guys?

這很有幫助。從這裡對諾華交易的評論中，請告訴我們你們如何考慮與現有大型合作夥伴續約的機會？如果您能幫忙評論一下您在新合作夥伴、新客戶、新客戶增加方面所看到的情況，以及我們應該在多大程度上考慮開放資本市場和在新的生物技術融資週期中的接觸客戶的形成將成為未來幾個月的貢獻者，你們在終端市場中看到了什麼？

We are seeing positive new inquiry with respect to smaller companies interested in using our software. I think it's premature for us to be saying that they will be a significant contributor to our software growth, and to a certain extent we're also--you know, the numbers are getting fairly large, and so it would take quite a number of emerging biotech companies initiating use of our software to offset what we're seeing with large companies.

我們看到對有興趣使用我們軟體的小公司進行了積極的新詢問。我認為現在說他們將成為我們軟體成長的重要貢獻者還為時過早，而且在某種程度上我們也是——你知道，數字變得相當大，所以這需要相當多的時間的新興生物技術公司開始使用我們的軟體來抵消我們在大公司中看到的情況。

So we remain very excited about the many large and, frankly, midsized companies who aren't using our technology at scale yet, and we're focusing our efforts on that group of customers. But equally, we're open for business with emerging companies, and I think much of the inquiry we're seeing there is actually for private companies, pre-IPO companies. I don't think we're seeing a significant tailwind in terms of companies that have accessed the public markets yet. That may be something we see next year, and we're certainly prepared to respond to that. Our sales organization is in dialog with those sort of companies and, frankly, their investors, but so far it's not hitting our numbers.

因此，我們對許多尚未大規模使用我們的技術的大型公司和坦白說是中型公司仍然感到非常興奮，我們正在將我們的努力集中在這群客戶上。但同樣，我們對與新興公司開展業務持開放態度，我認為我們看到的大部分詢問實際上是針對私人公司、首次公開募股前的公司的。我認為對於已經進入公開市場的公司來說，我們還沒有看到明顯的推動力。這可能是我們明年會看到的情況，我們當然準備好對此做出回應。我們的銷售組織正在與這類公司以及坦率地說是他們的投資者進行對話，但到目前為止，還沒有達到我們的目標。

Scott Schoenhaus, KeyBanc Capital Markets.

Scott Schoenhaus，KeyBanc 資本市場。

Hey guys, this is Steve on for Scott. Just wondering, what percent of your software book of business is now cloud versus on-prem?

嘿夥計們，我是斯科特的史蒂夫。只是想知道，現在您的軟體業務中雲端與本地的比例是多少？

So Steve, was your question what percentage of our book of business is hosted versus on-prem?

Steve，您的問題是我們的業務中託管與本地的比例是多少？

Yeah, that's correct.

是的，這是正確的。

Okay, so of our total software in Q3, 28% was hosted, up from 23% last year. If you focus on just the contracts with customers, then that percentage is going to be even higher. I don't have the number in front of me, but it's going to be probably in the high 30% range.

好的，在第三季我們的軟體總數中，28% 是託管的，高於去年的 23%。如果您只專注於與客戶的合同，那麼這個百分比會更高。我面前沒有具體數字，但可能會在 30% 的範圍內。

Now, that number does go up and down from quarter to quarter, so as I indicated in my prepared remarks, because a significant part of the software license to Novartis will be on-prem, the on-prem piece will bump up; but I would encourage you to look at some sort of smooth, long term trend to see the trajectory of the transition to hosted, which we think is going to continue over the next few years.

現在，這個數字確實每個季度都會上下波動，所以正如我在準備好的發言中指出的那樣，因為諾華的軟體許可的很大一部分將是本地的，所以本地部分將會增加；但我鼓勵您關注某種平穩、長期的趨勢，以了解向託管過渡的軌跡，我們認為這種情況將在未來幾年持續下去。

Vikram Purohit, Morgan Stanley.

維克拉姆‧普羅希特，摩根士丹利。

This is Gospel on for Vikram. With initial MALT1 data expected shortly, could you recap for us your expectation of what you expect to report with this data release and how you are internally defining success and establishing the huddle for this read-out?

這對維克拉姆來說是個福音。預計很快就會發布最初的 MALT1 數據，您能否為我們回顧一下您對本次數據發布報告內容的期望，以及您如何在內部定義成功並為此次數據發布做好準備？

We've spoken about releasing data in the first half of 2025. This will be the first disclosure about our ongoing Phase 1 dose escalation study. The focus of that study is safety, PK, PD, and early evidence of efficacy. So in the disclosures next year, we expect to share an update on those data.

我們已經談到要在 2025 年上半年發布數據。這將是我們正在進行的第一階段劑量遞增研究的首次揭露。研究的重點是安全性、PK、PD 和早期療效證據。因此，在明年的披露中，我們預計將分享這些數據的最新情況。

In terms of the type of data we're looking for, obviously MALT1 is a very new mechanism - there's only one other set of clinical data out there, but we'll be looking to see positive data obviously on the performance of our molecule from a drug property point of view, but also of course looking for evidence of activity in relapsed refractory B-cell malignancy patients. Now, again I want to remind you, this is a dose escalation study. It is not powered to do a full efficacy analysis, but of course we'll be sharing whatever data we can when that release comes out.

就我們正在尋找的數據類型而言，顯然 MALT1 是一種非常新的機制 - 那裡只有一組其他臨床數據，但我們將尋找明顯關於我們的分子性能的積極數據從藥物特性的角度來看，當然也要尋找在復發難治性B 細胞惡性腫瘤患者中的活性證據。現在，我想再次提醒您，這是一項劑量遞增研究。它無法進行全面的功效分析，但當然，當該版本發佈時，我們將分享我們可以分享的任何數據。

Evan Seigerman, BMO Capital Markets.

Evan Seigerman，BMO 資本市場。

Geoff, could you just talk a little bit more about how you're thinking about your P&L management going forward, especially with all of these more advanced clinical programs, and maybe just remind us as we get to this readout, what's the bar for efficacy, or how are you thinking about making these go/no-go decisions to advance your clinical programs beyond kind of Phase 1?

傑夫，您能否多談談您對未來損益管理的看法，尤其是所有這些更先進的臨床項目，也許只是在我們讀到這個讀數時提醒我們，功效的門檻是什麼，或者您如何考慮做出這些進行/不進行的決定以推進您的臨床計畫超越第一階段？

Okay. Karen, I'll jump in and talk about the P&L, and maybe you can talk a little bit about the efficacy bar.

好的。凱倫，我會插話談談損益表，也許你可以談談功效欄。

We are pretty focused on bringing our expense growth rate down and seeing some operating leverage emerging from the top line, I would say we've guided that our expense OpEx growth this year is going to be at the lower end of the prior range, so back into the single digits, and we are optimistic that we can continue to bring that down.

我們非常注重降低我們的費用成長率，並看到一些營運槓桿從頂線出現，我想說，我們已經指導今年的費用營運支出成長將處於之前範圍的下限，所以回到個位數，我們樂觀地認為我們可以繼續將其降低。

Now conversely, we are committed to continuing to invest in our platform and to invest in our proprietary molecules. The collaborations go through the income statement, as you know, in a different place, so what you're seeing in our R&D expense, which is the largest driver of expenses, is platform and proprietary molecules.

現在相反，我們致力於繼續投資我們的平台並投資我們的專有分子。如你所知，這些合作在損益表中是在不同的地方進行的，所以你在我們的研發費用中看到的是平台和專有分子，這是費用的最大驅動因素。

As we look ahead for the immediate future, there isn't a large -- there isn't a lot of pressure to drive those expense plans up, so on the therapeutic R&D, you correctly point out that we're facing questions about further clinical development, but I think we've been pretty clear that it would be very unlikely that we would advance on our own account all of the molecules in our portfolio. That's not our intention or our expectation, and it's not what we're planning for financially. We're optimistic that there are some opportunities to take them forward, that they will emerge from the data next year, but now that we will be committed to all of that.

當我們展望不久的將來時，沒有很大的壓力來推動這些支出計劃，因此在治療研發方面，您正確地指出，我們面臨著進一步的問題臨床開發，但我認為我們已經非常清楚，我們不太可能自行推進我們投資組合中的所有分子。這不是我們的意圖或期望，也不是我們的財務計畫。我們樂觀地認為，有一些機會可以推動它們前進，它們將從明年的數據中顯現出來，但現在我們將致力於所有這些。

I think that we're on a pretty good path to managing the OpEx growth next year consistently with the trend that we've seen this year and start to really see that operating leverage kick in. I apologize for the vague answer as we're in process of finalizing our outlook, and we'll give more detailed guidance for next year, but that hopefully gives you a sense of the color.

我認為，我們正處於一條非常好的道路上，能夠與今年我們看到的趨勢保持一致，管理明年的營運支出成長，並開始真正看到營運槓桿開始發揮作用。我對模糊的答案表示歉意，因為我們正在最終確定我們的前景，我們將為明年提供更詳細的指導，但這希望能讓您對顏色有所了解。

That's very helpful, because it's just -- yes?

這非常有幫助，因為它只是——是嗎？

Sorry.

對不起。

Yeah, sorry, Karen - on the go, no-go, I know I ask you this a lot, but now we're getting close, I'm curious if your views have changed, or just how they've evolved.

是的，抱歉，凱倫 - 在旅途中，不去，我知道我問過你很多次，但現在我們已經很接近了，我很好奇你的觀點是否發生了變化，或者它們是如何演變的。

The bar for efficacy for MALT1.

MALT1 功效的標準。

Okay, so first of all, this is a mechanism where we believe that there has to be evidence of monotherapy activity. This mechanism is sort of designed to really work in combination with standard of care, and I mean ECR2 or BTK inhibitors where you're seeing the opportunity to expand the activity of those molecules on those mechanisms as people become relapsed or refractory. But we think it's really important that MALT1, also CDC7 and Wee1 offer monotherapy activity, and so that's the bar - it's looking for clear evidence that these mechanisms are having activity alone in terms of patient response and are contributing essentially to duration of response, once we get to combination studies.

好的，首先，我們認為這是一種機制，必須有單一療法活性的證據。這個機制的設計目的是真正與標準護理相結合，我指的是 ECR2 或 BTK 抑制劑，當人們復發或難治時，你會看到有機會擴大這些分子在這些機制上的活性。但我們認為，MALT1、CDC7 和 Wee1 提供單一療法活性非常重要，所以這就是障礙 - 它正在尋找明確的證據，證明這些機制在患者反應方面單獨具有活性，並且一旦發生，對反應持續時間有重大貢獻我們進行組合研究。

Joe Catanzaro, Piper Sandler.

喬·卡坦扎羅，派珀·桑德勒。

I actually had a quick one on the PRMT5 space, given your recent poster. There's been a couple of recent clinical updates for competitive PRMT5 programs, so just wondering if you believe those data provide real clinical validation for that target, and when you look at those data, where do you see opportunities for your program to differentiate? Appreciate you're still early in development there.

事實上，鑑於您最近的海報，我對 PRMT5 空間進行了快速了解。最近有一些競爭性 PRMT5 項目的臨床更新，所以想知道您是否相信這些數據為該目標提供了真正的臨床驗證，當您查看這些數據時，您在哪裡看到了您的項目差異化的機會？感謝您仍處於開發早期。

Yes, I think you're pointing to the fact that PRMT5 is an exciting mechanism that sort of burst onto the scene a couple of years ago, benefiting obviously from the synthetic lethal relationship between PRMT5 and MTA, very interesting clinical data released last year at the triple meeting showing monotherapy activity in a very broad number of tumor types, actually, and that includes really tough tumors like glioblastoma.

是的，我認為你指出的是這樣一個事實：PRMT5 是一種令人興奮的機制，幾年前突然出現，明顯受益於 PRMT5 和 MTA 之間的合成致死關係，去年發布的非常有趣的臨床數據實際上，三重會議顯示單一療法在非常廣泛的腫瘤類型中具有活性，其中包括像膠質母細胞瘤這樣非常棘手的腫瘤。

The update this year, I think has demonstrated that there is evidence of activity again across a number of tumors, but the question, I think, that we're all wondering about is whether the molecules that are out there today in the clinic are best-in-class, and we have pursued molecules that we believe offer the greatest opportunity to go after the broadest set of tumors, and that includes brain-penetrants -- we think that's really important, given the strength of the signals that have been seen previously in glioblastoma, but also other activity around DDI, where we think that PRMT5 and MTA is going to be combined with other drugs, actually, to maximize the potential of the mechanism and the efficacy that's seen in combinations. These are some of the factors that we've been really focused on in our drug discovery efforts, and we also, I think in this abstract, reported we think we have an angle on maximizing that synergy between PRMT5 and MTA, which we think could lead to deeper responses.

我認為今年的更新已經證明，在許多腫瘤中再次有活性的證據，但我認為，我們都想知道的問題是，今天在臨床上使用的分子是否是最好的-在課堂上，我們一直在尋找分子，我們相信這些分子為追蹤最廣泛的腫瘤提供了最大的機會，其中包括腦滲透劑- 考慮到已經看到的信號強度，我們認為這非常重要之前在膠質母細胞瘤中，還有圍繞DDI 的其他活動，我們認為PRMT5 和MTA 將與其他藥物結合，實際上，以最大限度地發揮聯合用藥機制的潛力和功效。這些是我們在藥物發現工作中真正關注的一些因素，我認為在這篇摘要中，我們也報告了我們認為我們有一個角度可以最大化 PRMT5 和 MTA 之間的協同作用，我們認為這可以引發更深層次的反應。

As you said, it's early days for this program. We still are enthusiastic about PRMT5 MTA, and I think again early days for our program but excited to participate in what we think is going to remain an important mechanism for cancer patients.

正如您所說，該計劃還處於早期階段。我們仍然對 PRMT5 MTA 充滿熱情，我再次認為我們的計畫還處於早期階段，但很高興能夠參與我們認為對癌症患者來說仍然是一個重要機制的計畫。

Matthew Hewitt, Craig-Hallum.

馬修·休伊特，克雷格·哈勒姆。

Hello, this is [Toff] on for Matt. I was wondering if you'd give us an update on the predictive toxicity platform and if that is available to customers yet.

大家好，我是 Matt 的 [Toff]。我想知道您是否願意向我們提供有關預測毒性平台的最新信息，以及該平台是否可供客戶使用。

Sure, yes. I can comment on that. It is not yet available widely to our software customers. We're making now very good progress on expanding the number of targets that are part of the virtual panel. We're using that technology very extensively in our collaborations, and we expect to engage with customers in a sort of select way, as we always do with technology like this, where partners get early access to it but it's not widely available yet.

當然，是的。我可以對此發表評論。我們的軟體客戶尚未廣泛使用它。我們現在在擴大虛擬面板中的目標數量方面取得了非常好的進展。我們在合作中非常廣泛地使用該技術，並且我們希望以某種特定的方式與客戶互動，就像我們一直在處理這樣的技術一樣，合作夥伴可以儘早使用該技術，但尚未廣泛使用。

Brendan Smith, TD Cowen.

布倫丹·史密斯，TD·考恩。

Just a quick one, kind of expanding on an earlier question. I guess looking earlier in the pipeline, you have a few non-oncology programs listed there. Just really wondering, as you kind of continue to expand some of your collaborations, how should we think about the prioritization of programs in different spaces as they near the clinic? Is it fair to assume the non-oncology assets are still the prime targets for collaborations and your focus remains in oncology, or do you have plans today to eventually invest internally in actual clinical infrastructure, even for phase 1 for some of those other areas yourselves?

只是一個快速的問題，是對先前問題的擴展。我想在早期的管道中，您會列出一些非腫瘤學課程。只是真的想知道，當您繼續擴大一些合作時，我們應該如何考慮診所附近不同空間中項目的優先順序？假設非腫瘤資產仍然是合作的主要目標並且您的重點仍然是腫瘤學，這是否公平，或者您今天是否計劃最終在內部投資於實際的臨床基礎設施，甚至是您自己的一些其他領域的第一階段？

Yes, I actually really like that question. It's something we've been thinking about a lot. Obviously there's still significant unmet need in oncology. We think that our platform allows us to design really great molecules with great properties for that particular set of targets in that therapeutic area, and so we remain committed to highly validated targets in that space. However, we also think that some of our work to come up with molecules for first-in-class targets in other large disease areas, that include immunology, neuroscience, other huge disease areas that have very limited small molecule options, this is very important to us and I think that we've been able to make significant progress on some of those undisclosed programs.

是的，我真的很喜歡這個問題。這是我們一直在思考的事情。顯然，腫瘤學領域仍存在大量未滿足的需求。我們認為，我們的平台使我們能夠為該治療領域的特定標靶組設計具有出色特性的真正出色的分子，因此我們仍然致力於該領域的高度驗證的標靶。然而，我們也認為，我們的一些工作是為其他大疾病領域的一流靶點找到分子，包括免疫學、神經科學、其他小分子選擇非常有限的大疾病領域，這是非常重要的對我們來說，我認為我們已經能夠在其中一些未公開的項目上取得重大進展。

In terms of how we think about development of those, we believe that we are very well equipped not just to develop compounds in oncology, we've got a really great team executing on our current cohort of programs, but we also believe that there is very strong opportunity for us to take a subset of programs in areas outside of oncology into phase one studies and potentially beyond. We think that some of the targets we're focusing on have very clear value inflection points that will be apparent in phase one very early on, and this comes from, I think, the validation of the pathways that they're in, where we know what the biomarkers and the end points are that we can study in those phase one studies, so it is not the case that we are restricting our clinical development to just oncology. We intend to pursue a select number of our non-oncology assets into phase one as well.

就我們如何看待這些開發而言，我們相信我們不僅有能力開發腫瘤學化合物，而且我們擁有一支非常出色的團隊來執行我們當前的一系列項目，但我們也相信，對我們來說，這是一個非常好的機會，可以將腫瘤學以外領域的一部分項目納入第一階段研究，甚至可能進一步研究。我們認為，我們關注的一些目標具有非常明確的價值轉折點，這些拐點在第一階段很早就顯而易見，我認為，這來自於對它們所在路徑的驗證，我們在其中知道我們可以在這些第一階段研究中研究的生物標記和終點是什麼，因此我們不會將我們的臨床開發僅限於腫瘤學。我們也打算將部分非腫瘤資產納入第一階段。

Michael Ryskin, Bank of America.

麥可‧萊斯金，美國銀行。

Hi, this is Sean Kim on for Michael. Good morning.

大家好，我是麥可的肖恩金。早安.

You guys talked about the reduced probability of hitting the milestones in 2024, but outside of the Novartis collaboration in the first half of '25, or even 2025 all together, does that reduced probability mean that you're unsure those milestones would be hit in general or can we think of them as just pushed back?

你們談到了 2024 年實現里程碑的可能性降低，但除了 25 年上半年甚至 2025 年與諾華的合作之外，這種可能性降低是否意味著你不確定是否會在 2025 年實現這些里程碑是一般性的還是我們可以認為它們只是被推遲了？

Yes, I don't want to say that any milestone that's in the future is 100% certain, but I think we're trying to convey that our expectation is that those milestones will still be recognized next year rather than this year. Until we get to the point, we're doing experiments, so we have to wait until the data comes through and then we have the discussions with partners, but that's our expectation.

是的，我不想說未來的任何里程碑都是 100% 確定的，但我認為我們試圖表達我們的期望是這些里程碑仍將在明年而不是今年得到認可。說到重點之前，我們都在做實驗，所以我們必須等到數據出來後，然後我們才能與合作夥伴進行討論，但這就是我們的期望。

The other factor, of course, is also when there is elements of the Novartis collaboration, we start to get revenue recognized as well. I indicated in my prepared remarks that our expectation right now is that the drug discovery revenue contribution will be very small from that collaboration, and that's simply because of the timing of when we start doing work on the project and then can recognize the revenue. But equally, I hopefully conveyed that we think that that will be a significant contributor to our revenue next year because by then, we'll have the project teams up and running and we'll be executing the work on a number of programs in that collaboration.

當然，另一個因素是當有諾華合作的元素時，我們也開始確認收入。我在準備好的發言中指出，我們現在的預期是，這次合作對藥物發現收入的貢獻將非常小，這僅僅是因為我們開始進行該計畫的時間，然後才能確認收入。但同樣，我希望傳達這樣的訊息：我們認為這將成為我們明年收入的重要貢獻者，因為到那時，我們將組建並運行專案團隊，並且我們將在其中執行許多專案的工作。

(Operator Instructions)

（操作員說明）

David Lebowitz, Citi.

大衛‧勒博維茨，花旗銀行。

Can you talk about the revenue recognition and pricing dynamics of a hosted contract versus a non hosted contract, post execution?

您能談談託管合約與非託管合約執行後的收入確認和定價動態嗎？

And how do these revenue recognition dynamics differ for a standard one year contract versus a longer term agreement?

標準一年合約與長期協議的收入確認動態有何不同？

Great question. The hosted contracts are recognized rateably over the period of the contract, so if it is a one-year contract and let's just say the ACB is $1 million, then roughly $250,000 per quarter over that year. If it's a three-year contract of $1 million a year, roughly $250,000 per quarter for the three years.

很好的問題。託管合約在合約期間內按比例確認，因此，如果是一年合約，假設 ACB 為 100 萬美元，那麼該年每季度大約為 250,000 美元。如果是一份三年合約，每年 100 萬美元，那麼這三年每季大約是 25 萬美元。

An on-prem contract with a licensed server is on the premises of the customer. The revenue shifts to being substantially recognized in the period in which the contract is initiated, so ballpark would be if it's a one-year contract that is an on-prem license, you could see as much as 80% of the revenue recognized in the period in which the license is signed, so that would be, using my million-dollar contract, $800,000 in the quarter now.

與許可伺服器的本地合約位於客戶的場所。收入將在合約啟動期間大幅確認，因此如果是一年合約且是本地許可證，您可能會看到多達 80% 的收入在合約啟動期間確認。百萬美元合同，現在該季度的收入為800,000 美元。

These numbers are gross generalizations. All our contracts have maintenance components, so we're providing services, we're providing updates, we're making sure that the technology is running for the customer, and so maintenance is recognized rateably as well. It depends on how many -- how much services component there is. That can shift things over to rateable as well.

這些數字是粗略的概括。我們所有的合約都有維護組件，所以我們提供服務，我們提供更新，我們確保技術正在為客戶運行，因此維護也得到了高度認可。這取決於有多少服務組件。這也可以將事情轉變為可評級的。

Then lastly, on let's just say a three-year contract, as much as 2/3 of the revenue could be recognized in the period in which the contract is signed. But again, that depends on the balance between maintenance, services, and the actual software in the contract. So all of these contracts are different, but those are some broad principles that you could use after thinking about recognizing the value.

最後，就三年合約而言，在合約簽訂期間最多可以確認2/3的收入。但同樣，這取決於合約中維護、服務和實際軟體之間的平衡。因此，所有這些合約都是不同的，但這些都是一些廣泛的原則，您可以在考慮認識到其價值後使用它們。

Thank you, and I am showing no further questions at this time. That concludes today's call. You may now disconnect.

謝謝，目前我不會再提出任何問題。今天的電話會議到此結束。您現在可以斷開連線。