Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q1 FY2023 Earnings Presentation
19 slides from Simulations Plus's earnings presentation, Jan 4, 2023
Slide 1: January 4, 2023 Earnings Call - Q1 - FY23
1 | NASDAQ: SLP January 4, 2023 1 Earnings Call - Q1 - FY23
Slide 2: Safe Harbor Statement
2 | NASDAQ: SLP With the exception of historical information, the matters discussed in this presentation are forward- looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but th
Slide 3: First Quarter Highlights
3 | NASDAQ: SLP • First quarter results in line with guidance • Revenue seasonality impacted by expected shift in software renewal timing ◦ Some slowdown in buying activity pushed to calendar 2023 budgets ◦ $0.3M constant currency negative impact on revenue • Profitability impacted by investment in
Slide 4: Supporting Client Success
4 | NASDAQ: SLP • FDA collaborations to enhance product capabilities • Virtual Bioequivalence trial simulations for regulatory accelerated approval • GastroPlus® used to support new dosing regimens and accelerate approval • QSP clinical trial optimization • NAFLDsym® used to reprioritize pipeline •
Slide 5: First Quarter Software Highlights
5 | NASDAQ: SLP GastroPlus® MonolixSuite®-1% • 10 new customers • 2 upsells to existing customers First Quarter Software Highlights -24% • 1 new customer • 8 upsells to existing customers • 14 peer reviewed journal articles published in Q1 ADMET Predictor® • 4 new customers • 5 upsells to existing c
Slide 6: First Quarter Services Highlights
6 | NASDAQ: SLP PBPK QSP/QST PKPD First Quarter Services Highlights +23% -28% +74% Q1 Revenue Growth Q1 Revenue Decline Q1 Revenue Growth General • Overall service revenue growth 17% • Total backlog $15.8M • Successful recruiting quarter despite continued competitive market • Shift to higher margin
Slide 7: Capital Allocation Strategy Update
7 | NASDAQ: SLP Capital Allocation Strategy Update • Acquisitions • Strategic investments and partnerships • $50M share repurchase program • $25M under accelerated share repurchase (ASR) • Maintain current level • Product R&D • Employee Recruiting and Retention • Enterprise Technologies Corporate De
Slide 8: FY23 Guidance
8 | NASDAQ: SLP FY23 Guidance Total Revenue $59.3M to $62.0M Total Revenue Growth 10% to 15% Software Revenue Mix 60% to 65% Service Revenue Mix 35% to 40% Diluted EPS $0.63 to $0.67
Slide 9: Financial Results
9 | NASDAQ: SLP Financial Results
Slide 10: Q1 Revenue
10 | NASDAQ: SLP Q4 Revenue (in millions) $6.2 $7.4 $6.1 $4.5 $5.1 $5.8 $10.7 $12.4 $12.0 Software Services 1Q21 1Q22 1Q23 51%49% Software Services (in millions) 59% 41% Software ServicesSoftware RevenueTotal Revenue Services Revenue Revenue - Q1 -4% -17% +17% 1Q23 Mix 1Q22 Mix
Slide 11: Gross Margin Trends - Q1
11 | NASDAQ: SLP Gross Margin Trends - Q1 87% 90% 85% 64% 60% 70% 77% 78% 78% Software Services Total 1Q21 1Q22 1Q23
Slide 12: Software Revenue by Product
12 | NASDAQ: SLP Software Product as % of Software Revenue 1Q23 Other 50% 26% 18% 6% 54% 21% 20% 5% 1Q22 Other Software Revenue by Product
Slide 13: Software Performance Metrics - Q1
13 | NASDAQ: SLP Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q1 Commercial Customers Renewal Rates $74 $71 $68 1Q21 1Q22 1Q23 87% 93% 82% 95% 96% 90% Accounts Fees 1Q21 1Q22 1Q23
Slide 14: Service Revenue by Type
14 | NASDAQ: SLP Services as % of Service Revenue 1Q23 49% 18% 25% 8% 46% 29% 17% 8% 1Q22 Service Revenue by Type PKPD QSP/QST PBPK Other PKPD QSP/QST PBPK Other
Slide 15: Services Performance Metrics and Backlog
15 | NASDAQ: SLP Backlog Services Performance Metrics Total Projects 121 169 193 57 67 70 12 22 2438 55 73 14 25 26 PKPD QSP/QST PBPK Other 1Q21 1Q22 1Q23 $12 $15 $16 Backlog (in millions) 1Q21 1Q22 1Q23
Slide 16: Income Statement Summary - Q1
16 | NASDAQ: SLP Income Statement Summary - Q1 (in millions, except Diluted EPS) 1Q23 % of Rev 1Q22 % of Rev Revenue $12.0 100% $12.4 100% Revenue growth (4)% 16% Gross profit 9.3 78% 9.7 78% R&D 1.2 10% 0.9 7% SG&A 7.2 61% 5.0 40% Total operating exp 8.4 70% 5.9 47% Income from operations 0.9 7% 3.
Slide 17: Balance Sheet Summary
17 | NASDAQ: SLP Balance Sheet Summary (in millions) November 30, 2022 August 31, 2022 Cash and short-term investments $131.5 $128.2 Total current assets 148.7 146.8 Total assets $190.5 $188.4 Current liabilities 8.0 7.7 Long-term liabilities 2.3 2.4 Total liabilities 10.3 10.1 Shareholders’ equity
Slide 18: FY23 Outlook Commentary
18 | NASDAQ: SLP FY23 Outlook Commentary Commentary • Q2 revenue growth 7% to 11% • Fixed total costs = cost of revenue + R&D expense + SG&A expense • Fiscal year trends on-track • Interest income and share repurchase • Q2 diluted EPS $0.17 to $0.19 Guidance Total Revenue $59.3M to $62.0M Total Reve
Slide 19: Conclusion
19 | NASDAQ: SLP Conclusion • Delivering on our commitment to scientific leadership ◦ Internal R&D investment ◦ Expanding industry and regulatory partnerships • Enhancing our client facing capabilities ◦ Growth and maturity of business development team ◦ Focus on expanding our local coverage of EU m