Slide 1: Accelerating Medicines: Third Quarter 2021 Financial Results
Accelerating Medicines Third Quarter 2021 Financial Results November 9, 2021
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: A Global Leader in Biosimulation
Certara at a Glance: A Global Leader in Biosimulation Business End-to-End Platform Customers Third Quarter Financials Software 20+ Year • Biosimulation 1,650+ History of innovation • Regulatory & Compliance Customers across $73.9mm 61 countries 3Q 2021 Revenue • Value Communication 23% YoY Growth Te
Slide 4: Acquisition of Pinnacle 21, A Leader in Data Standardization Software
Acquisition of Pinnacle 21, A Leader in Data Standardization Software • Closed acquisition on 10/1 for purchase price of $310mm with $250mm in cash consideration and $60mm in Certara stock $300mm Total Addressable • Estimated 2021 pro forma revenue of $23-24mm(2) Market(1) for CDISC • Accretive to r
Slide 5: 3Q 2021 Highlights
3Q 2021 Highlights Key Financials • Revenue was $73.9mm in 3Q 2021, representing year-over-year Three Months Ended growth of 23% September 30, 2021 2020 (in millions, except per share data) Revenue $73.9 $60.3 • Reported net loss was ($1.8)mm in 3Q 2021, as compared to Net Income (Loss) ($1.8) $1.2
Slide 6: 3Q 2021 Results - Revenue
3Q 2021 Results - Revenue GAAP Reported Revenue ($Millions) 54.7 42.6 17.7 19.3 3Q 2020 3Q 2021 Software Services The Certara team remained focused on execution in 3Q 2021, delivering strong revenue growth © Copyright 2020 Certara, L.P. All rights reserved. 6
Slide 7: 3Q 2021 Results - Net Bookings
3Q 2021 Results - Net Bookings Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 56.6 51.4 230.3 198.0 16.3 20.9 75.7 83.3 (1) (1) (1) (1) 3Q 2020 3Q 2021 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlated with revenue and drive
Slide 8: 3Q 2021 Results – Adjusted EBITDA
3Q 2021 Results – Adjusted EBITDA ($Millions) Adjusted EBITDA(1) ($Millions) 26.1 20.5 3Q 2020 3Q 2021 Adjusted EBITDA Margin(1) 34% 35% Certara delivered improved profitability on a year-over-year basis (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA and adjusted EBITDA m
Slide 9: FY 2021 Financial Guidance
FY 2021 Financial Guidance This financial guidance was provided as of November 9, 2021, and its inclusion in this presentation should not be construed as continued affirmation of such guidance beyond that date. FY 2021 Guidance Updated FY 2021 Updated FY 2021 Provided 8/5/21 Guidance (excluding Guid
Slide 10: Appendix
Accelerating Medicines Appendix
Slide 11: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED SEPTEMBER 30, (in thousands) 2021 2020 Net income (loss)(a) $ (1,762) $ 1,227 Interest expense(a) 3,289 5,929 Interest income(a) (84) (12) Provision for income taxes(a) (1,631) 350 Depreciation and amortization expense(a) 533
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 SEPTEMBER 30, (in thousands) 2021 2020 Net income (loss)(a) $ (1,762) $ 1,227 Currency gain (loss)(a) (545) 37 Equity-based compensation expense(b) 8,165 1,181 Acquisition-related expenses(c) 7,561 216 Integration e
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, 2021 2020 Diluted earnings per share(a) $ (0.01) $ 0.01 Currency gain (loss) (a) - - Equity-based compensation expense(b) 0.05 0.01 Acquisition-related expenses(c) 0.05 - Integration
Slide 14: 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