Slide 1: Third Quarter 2022 Financial Results
accelerating medicines Third Quarter 2022 Financial Results November 7, 2022
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. Trademarks and Service Marks The Certara design logo, “Certara,” and our o
Slide 3: Certara at a Glance
Certara at a Glance BUSINESS(1) END-TO-END PLATFORM CUSTOMERS(3) 3Q 2022 FINANCIALS Software 20+ Year • Biosimulation 2,000+ $84.7M Revenue History of innovation Customers across • Regulatory & compliance 62 countries 18% CC(4) YoY Growth • Market access (8% CC excl. Pinnacle 21) 1,100+ Employees Te
Slide 4: Financial Highlights
Financial Highlights Third Quarter 2022(1) Adjusted Revenue Net Income Adj. EBITDA(2) Diluted EPS Diluted EPS(2) $84.7M $3.9M $32.7M $0.02 $0.10 18% change CC(2) YoY PY ($1.8) 25% YoY change PY ($0.01) PY $0.11 (1) 2022 financials include contribution of Pinnacle 21 (2) See Appendix for reconciliati
Slide 5: 3Q 2022 Results - Revenue
3Q 2022 Results - Revenue GAAP Reported Revenue(1) Constant Currency Revenue(1)(2) ($Millions) ($Millions) 84.7 87.5 73.9 73.9 56.3 57.8 54.7 54.7 28.4 29.7 19.3 19.3 3Q 2021 3Q 2022 3Q 2021 3Q 2022 Software Services Software Services Certara reported 18% constant currency(2) revenue growth Excludin
Slide 6: 3Q and TTM 2022 Results - Net Bookings
3Q and TTM 2022 Results - Net Bookings 3Q Reported Net Bookings(1) TTM Reported Net Bookings(1) ($Millions) ($Millions) 401.0 79.8 313.6 72.3 283.4 54.4 51.4 230.3 20.9 25.4 117.6 83.3 3Q 2021 3Q 2022 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlate
Slide 7: Historical TTM Book to Bill
Historical TTM Book to Bill 1.22x 1.25x 1.24x ($Millions) 1.19x 1.14x 393.5 401.0 341.7 368.3 313.6 300.9 313.6 324.4 275.3 286.1 (1) (1) 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 TTM Bookings TTM Revenue Book to Bill Stable book to bill provides forward visibility into revenue growth (1) Includes Pin
Slide 8: 3Q 2022 Results – Adjusted EBITDA
3Q 2022 Results – Adjusted EBITDA Adjusted EBITDA(1) ($Millions) 32.7 26.1 3Q 2021 3Q 2022 35% Adjusted EBITDA Margin(1) 39% (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA 8
Slide 9: 2022 Outlook
2022 Outlook Key Assumptions Reiterated FY 2022 guidance 2022 Guidance • Reported revenue growth of 14-17%, and 6-9% excluding Pinnacle 21, 10-13% CC excluding Pinnacle 21 Adjusted Adjusted • Fully diluted shares expected Revenue EBITDA(1) Diluted EPS(1) to be in the range of 159- 161M $325-$335M $1
Slide 10: Appendix
CERTARA” Appendix
Slide 11: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 2022 2021 2022 2021 (in thousands) Net income (loss)(a) $ 3,936 $ (1,762) $ 5,557 $ (3,567) Interest expense(a) 5,221 3,289 12,328 13,549 Interest income(a) (322) (84) (347) (255) (B
Slide 12: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) THREE MONTHS ENDED NINE MONTHS ENDED 2022 2021 2022 2021 (in thousands) (a) Net income (loss) $ 3,936 $ (1,762) $ 5,557 $ (3,567) Currency (gain) loss(a) (2,376) (545) (5,639) (189) Equity-based compensation expense(b) 6,804 8,165 23,
Slide 13: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 2022 2021 2022 2021 (in thousands except share and per share data) Diluted earnings per share(a) $ 0.02 $ (0.01) $ 0.03 $ (0.02) Currency gain(a) (0.01)
Slide 14: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED SEPTEMBER 30, CHANGE 2022 2022 2021 $ % $ % Actual CC Actual Actual Actual CC Impact Adjust for CC (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands) Revenue Software $ 28,392 $ 29,6
Slide 15: 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