Slide 1: Earnings Call - Q2 - FY23
1 | NASDAQ: SLP April 5, 2023 1 Earnings Call - Q2 - 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: Second Quarter Highlights
3 | NASDAQ: SLP • Second quarter results in line with guidance • Revenue seasonality impacted by expected shift in software renewal timing ◦ Continue to see slower pace of sales cycles due to customer budget constraints ◦ Churn in small biotech accounts ◦ $0.2M constant currency negative impact on r
Slide 4: Supporting Client Success
4 | NASDAQ: SLP • New AI/ML drug discovery collaborations • pKa collaboration with large agrochemicals company extending ML models • 4 new FDA grant submissions • Critical PBPK service support to multiple clients • Supported multiple high profile regulatory submissions with pharmacometric modelling
Slide 5: Second Quarter Software Highlights
5 | NASDAQ: SLP GastroPlus® MonolixSuite® -8% • 5 new customers • 6 upsells to existing customers • Impacted by renewal harmonization and forex Second Quarter Software Highlights +18% • 6 new customers • 6 upsells to existing customers • 25 peer reviewed journal articles published in Q2 ADMET Predic
Slide 6: Second Quarter Services Highlights
6 | NASDAQ: SLP PBPK QSP/QST PKPD Second Quarter Services Highlights +19% -32% +29% Q2 Revenue Growth Q2 Revenue Decline Q2 Revenue Growth General • Overall service revenue growth 4% • Total backlog $15.4M - projects to be performed within 12 months increased from 70% to 78% • Successful recruiting
Slide 7: Capital Allocation Strategy Update
7 | NASDAQ: SLP Capital Allocation Strategy Update • Acquisitions • Strategic investments and partnerships • $50M share repurchase program authorized • $20M accelerated share repurchase (ASR) implemented • Maintain current level ◦ $0.06 per share paid Feb. 6th ◦ $0.06 per share payable May 1st • Pro
Slide 8: Maintaining FY23 Guidance
8 | NASDAQ: SLP Maintaining 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: Revenue - Q2
10 | NASDAQ: SLP Q4 Revenue (in millions) $7.8 $9.8 $10.5 $5.3 $5.0 $5.3 $13.1 $14.8 $15.8 Software Services 2Q21 2Q22 2Q23 67% 33% Software Services (in millions) 66% 34% Software ServicesSoftware RevenueTotal Revenue Services Revenue Revenue - Q2 +6% +7% +4% 2Q23 Mix 2Q22 Mix
Slide 11: Revenue - YTD
11 | NASDAQ: SLP Q4 Revenue (in millions) $14.0 $17.1 $16.6 $9.8 $10.1 $11.2 $23.8 $27.2 $27.7 Software Services FY21 FY22 FY23 60% 40% Software Services 63% 37% Software ServicesSoftware RevenueTotal Revenue Services Revenue +2% -3% +11% Revenue - YTD FY23 Mix FY22 Mix (in millions)
Slide 12: Gross Margin Trends - Q2
12 | NASDAQ: SLP Gross Margin Trends - Q2 89% 92% 92% 61% 59% 66% 78% 81% 83% Software Services Total 2Q21 2Q22 2Q23
Slide 13: Gross Margin Trends - YTD
13 | NASDAQ: SLP 88% 91% 90% 62% 60% 68% 78% 79% 81% Software Services Total FY21 FY22 FY23 Gross Margin Trends - YTD
Slide 14: Software Revenue by Product
14 | NASDAQ: SLP Software Product as % of Software Revenue Q2 FY23 Other 55% 20% 18% 7% 53% 22% 18% 7% YTD FY23 Other Software Revenue by Product
Slide 15: Software Performance Metrics - Q2
15 | NASDAQ: SLP Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q2 Commercial Customers Renewal Rates $84 $101 $110 2Q21 2Q22 2Q23 88% 87% 80% 92% 96% 94% Accounts Fees 2Q21 2Q22 2Q23
Slide 16: Software Performance Metrics - YTD
16 | NASDAQ: SLP Avg. Revenue per Customer (in thousands) Renewal Rates $97 $97 $103 FY21 FY22 FY23 87% 90% 81% 93% 96% 93% Accounts Fees 2Q21 2Q22 2Q23 Software Performance Metrics - YTD Commercial Customers University+ Customers: 278 in 54 countries
Slide 17: Service Revenue by Type
17 | NASDAQ: SLP Services as % of Service Revenue Q2 FY23 50% 20% 23% 7% 49% 19% 24% 8% YTD FY23 Service Revenue by Type PKPD QSP/QST PBPK Other PKPD QSP/QST PBPK Other
Slide 18: Services Performance Metrics
18 | NASDAQ: SLP Backlog Services Performance Metrics Total Projects 139 201 188 73 63 63 19 25 20 47 82 72 31 33 PKPD QSP/QST PBPK Other 2Q21 2Q22 2Q23 $11 $17 $15 Backlog (in millions) 2Q21 2Q22 2Q23
Slide 19: Income Statement Summary - Q2
19 | NASDAQ: SLP Income Statement Summary - Q2 (in millions, except Diluted EPS) 2Q23 % of Rev 2Q22 % of Rev Revenue $15.8 100% $14.8 100% Revenue growth 6% 13% Gross profit 13.1 83% 12.0 81% R&D 1.3 8% 0.9 6% SG&A 7.8 49% 5.6 38% Total operating exp 9.1 58% 6.5 44% Income from operations 4.0 26% 5.
Slide 20: Income Statement Summary - YTD
20 | NASDAQ: SLP Income Statement Summary - YTD (in millions, except Diluted EPS) 2Q23 % of Rev 2Q22 % of Rev Revenue $27.7 100% $27.2 100% Revenue growth 2% 14% Gross profit 22.4 81% 21.6 79% R&D 2.5 9% 1.8 7% SG&A 15.0 54% 10.6 39% Total operating exp 17.5 63% 12.4 45% Income from operations 4.9 1
Slide 21: Balance Sheet Summary
21 | NASDAQ: SLP Balance Sheet Summary (in millions) February 28, 2023 August 31, 2022 Cash and short-term investments $115.3 $128.2 Total current assets 131.5 146.8 Total assets $173.2 $188.4 Current liabilities 6.0 7.7 Long-term liabilities 2.6 2.4 Total liabilities 8.6 10.1 Shareholders’ equity 1
Slide 22: Conclusion
22 | NASDAQ: SLP Conclusion • Delivering on our commitment to scientific leadership ◦ Internal R&D investment ◦ Expanding industry and regulatory partnerships ◦ MIDD+ – 3rd annual SLP sponsored conference • Enhancing our client facing capabilities ◦ Growth and maturity of business development team ◦