Business
Simulations Plus Reports First Quarter Fiscal 2023 Financial Results
Total revenue of $12 million; Diluted Earnings Per Share (EPS) of $0.06; Both in line with fiscal 2023 guidance and Q1 expectations for revenue seasonality
About this update from Simulations Plus, Inc.
[{"type":"text","content":"\nTotal revenue of $12 million; Diluted Earnings Per Share (EPS) of $0.06; Both in line with fiscal 2023 guidance and Q1 expectations for revenue seasonality shift\n\nProvides capital allocation strategy update focusing on corporate development activities, $50 million share repurchase program, and internal investment\n\n LANCASTER, Calif.--(BUSINESS WIRE)--\nSimulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its first quarter of fiscal 2023, ended November 30, 2022.\n\nShawn O’Connor, chief executive officer of Simulations Plus, said, “Despite a $0.3 million FX negative impact on our revenue, our first quarter results were in line with the new seasonal expectations we introduced on our last earnings call in November. At the time, we said we were taking deliberate actions to align software renewal timing for diverse groups and products within each customer, which we expected to impact our first quarter revenue seasonality while boosting our second through fourth quarter results. We also said some new sales were expected to push into our second quarter to align with customers’ new calendar year budgets. The renewal patterns are progressing as expected and we signed 15 new customers across our software portfolio and saw 15 upsells in the first quarter, the latter indicating our cross-selling strategy is working.\n\n“I was also encouraged that our services business generated strong quarterly results, growing by nearly 17% while building our backlog to nearly $16 million. Our pipeline here remains strong, and we were also able to bring on several new consultants during the quarter to help satisfy the strong demand for our services.”\n\nFirst Quarter Financial Highlights (Fiscal 2023 vs. Fiscal 2022):\n\n\nTotal revenue decreased 4% to $12.0 million;\n\n\nSoftware revenue decreased 17% to $6.1 million, representing 51% of total revenue;\n\n\nServices revenue increased 17% to $5.9 million, representing 49% of total revenue;\n\n\nGross profit decreased 4% to $9.3 million; gross margin was 78%;\n\n\nNet income of $1.2 million and diluted EPS of $0.06, compared to net income of $3.0 million and diluted EPS of $0.15;\n\n\nAdjusted EBITDA of $3.0 million, representing 25% of total revenue.\n\n\nCapital Allocati...