Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results August 6, 2024 © Copyright 2024 Certara, L.P. All rights reserved.
Slide 2: Disclaimer
Disclaimer Numerical figures in the presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. In addition, unless otherwise indicated, references to the “Company,” “Cer
Slide 3: Certara at a Glance
Certara at a Glance BUSINESS(1) END-TO-END PLATFORM CUSTOMERS(3) 2Q 2024 FINANCIALS Software 20+ Year ~2,400 $93.3M Revenue • Biosimulation Customers across History of innovation • Regulatory & compliance 66 countries 3% GAAP YoY Growth • Market access 3% CC YoY Growth(4) ~1,400 Employees 10+ Year T
Slide 4: Financial Highlights Second Quarter 2024
Financial Highlights Second Quarter 2024 Adjusted Revenue Net Income Adj. EBITDA(3) Diluted EPS Diluted EPS(4) $93.3M ($12.6M) $26.3M ($0.08) $0.07 3% GAAP YoY change PY $4.7M(2) (19%)YoY PY $0.03 PY $0.12 3% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant cu
Slide 5: 2Q 2024 Results - Revenue
2Q 2024 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 90.5 93.3 90.3 93.3 56.7 55.1 56.7 55.0 33.7 38.2 33.7 38.3 2Q 2023 2Q 2024 2Q 2023 2Q 2024 Software Services Software Services Certara reported 3% constant currency(1) revenue growth (1) See Appendi
Slide 6: 2Q and TTM Results - Net Bookings
2Q and TTM Results - Net Bookings 2Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 408.4 98.9 398.8 85.9 267.5 262.9 57.1 50.2 35.7 41.8 131.3 145.5 2Q 2023 2Q 2024 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlated with rev
Slide 7: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) 1.13x 1.14x 1.14x 1.12x 1.10x 398.4 403.8 402.3 395.4 408.4 352.1 353.0 354.3 360.3 363.6 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 TTM Bookings TTM Revenue Book to Bill Book to bill provides forward visibility into revenue growth © Copyright 2024 Certara, L.P.
Slide 8: Historical Software Net Retention Rate (NRR)
Historical Software Net Retention Rate (NRR)(1) 115% 114.1% 111.3% 110.5% 109.9% 110% 108.6% 108.0% 107.4% 105% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net Retention Rate NRR(1) provides insight into growth and retention among existing software customers (1) Our net retention rates m
Slide 9: 2Q 2024 Results – Adjusted EBITDA
2Q 2024 Results – Adjusted EBITDA Adjusted EBITDA(1) 32.4 26.3 2Q 2023 2Q 2024 36% Adjusted EBITDA Margin(1) 28% (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA © Copyright 2024 Certara, L.P. All rights reserved.
Slide 10: 2Q24 Business Updates
2Q24 Business Updates Key Takeaways from Second Quarter Performance: Revenue $90.5M Mixed Environment Reflected in 2Q Results Expanding the Breadth of our Software Platform Strategic Reallocation of Resources • Announced the signing of an acquisition • Strong software performance driven by agreement
Slide 11: 2Q24 Bookings YoY Trends – Pharma/Biotech Customers
2Q24 Bookings YoY Trends – Pharma/Biotech Customers (1) Tier Software Bookings | +17% y/y Services Bookings | +14% y/y I Strong growth y/y driven by expansion among existing customers, biosimulation adoption Declined due to prolonged customer spending hesitancy and evaluation of pipeline priorities
Slide 12: 2024 Outlook
2024 Outlook Reiterated FY 2024 guidance Key Assumptions 2024 Guidance • Reported revenue growth of 9-13% Adjusted Adjusted • Full year adjusted EBITDA Revenue EBITDA Margin(1) Diluted EPS(1) expected to grow YoY $385-$400M 31-33% $0.41-$0.46 • Fully diluted shares expected to be in the range of 160
Slide 13: Appendix
Appendix © Copyright 2024 Certara, L.P. All rights reserved.
Slide 14: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30 JUNE 30, 2024 2023 2024 2023 ( in thousands) Net income (loss)(a) $(12,574) $4,706 $(17,257) $6,064 Interest expense(a) 5,578 5,668 11,329 11,143 Interest income(a) (2,486) (2,210) (5,060) (3,564) (Ben
Slide 15: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 2024 2023 2024 2023 (in thousands) Net income (loss) (a) $(12,574) $4,706 $(17,257) $6,064 Currency (gain) loss(a) 104 1,120 980 2,014 Equity-based compensation expense(b) 9,783 3,
Slide 16: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share 16 © Copyright 2024 Certara, L.P. All rights reserved.
Slide 17: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency © Copyright 2024 Certara, L.P. All rights reserved.
Slide 18: Notes to Reconciliations
Notes to Reconciliations (a) Represents amounts as determined under GAAP. (b) Represents expense related to equity-based compensation. Equity-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation
Slide 19: Accelerating Medicines, Together
Accelerating Medicines, Together © Copyright 2024 Certara, L.P. All rights reserved.