Business
Certara Reports Second Quarter 2023 Financial Results
Provides Update to Full Year 2023 Financial Guidance PRINCETON, N.J., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in
About this update from Certara, Inc.
[{"type":"text","content":"Provides Update to Full Year 2023 Financial Guidance\nPRINCETON, N.J., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in biosimulation, today reported its financial results for the second quarter of fiscal year 2023. Second Quarter Highlights: Revenue was $90.5 million, compared to $82.8 million in the second quarter of 2022, representing growth of 9% over the second quarter of 2022 on a reported basis and 10% at constant currency.Net income was $4.7 million, compared to a net loss of $0.6 million in the second quarter of 2022.Adjusted EBITDA was $32.4 million, compared to $28.0 million in the second quarter of 2022. “During the second quarter our software business performed well, but we experienced lower growth than expected in our services business due to cautious spending among smaller biotech customers, as well as a slow recovery in our regulatory business. While we are not satisfied with this quarter’s results and they have led us to restate our outlook for 2023 based on current market dynamics, we believe the fundamental health of the drug development market and the increasing acceptance and adoption of biosimulation technology provide an excellent opportunity for us to continue to invest in the growth of Certara,” said William F. Feehery, Chief Executive Officer. “We believe continued strength in software sales reflects a healthy market for technology that accelerates new medicine development and anticipate demand improvement in the services business as we move into 2024.” Second Quarter 2023 Results “Certara’s second quarter performance reflects strong software revenue and bookings performance, each growing 17%, while services revenue grew 5% and services bookings declined, as compared to the same period a year ago. The software business continues to perform well, delivering a strong renewal rate of 93% in the quarter, with customers continuing to recognize the unique value proposition of the Certara platform. The weakness in our services bookings was a result of more cautious spending among our customers. Notably, adjusted EBITDA margins remained in line with our expectations during the quarter,” said John Gallagher, Chief Financial Officer. Total revenue for the second quarter of 2023 was $90.5 million, representing growth of 9% over the second quarter of 2022. The overall increase in r...