Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q1 FY2023 Earnings Presentation
19 slides from Simulations Plus's earnings presentation, Jan 4, 2023
Slide 1: Earnings Call - Q1 - FY23
Earnings Call - Q1 - FY23 January 4, 2023 1 1 | NASDAQ: SLP
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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,
Slide 3: First Quarter Highlights
First Quarter Highlights $12M Revenue $0.06 Diluted EPS 25% Adj. EBITDA as % $16M Backlog of Revenue • 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 co
Slide 4: Supporting Client Success
Supporting Client Success • 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 p
Slide 5: First Quarter Software Highlights
First Quarter Software Highlights General • Overall software revenue decline of 17% • Renewal pattern and revenue seasonality shifting as anticipated • Slower pace of new sales with new customers delaying purchases to new budget year • University+ program has 266 individual licenses across 54 countr
Slide 6: First Quarter Services Highlights
First Quarter Services Highlights General • Overall service revenue growth 17% • Total backlog $15.8M • Successful recruiting quarter despite continued competitive market +23% PKPD Q1 Revenue • Shift to higher margin time and materials contracts vs fixed priced projects Growth with positive margin i
Slide 7: Capital Allocation Strategy Update
Capital Allocation Strategy Update • Product R&D • Acquisitions • Employee Recruiting and Retention • Strategic investments and • Enterprise Technologies partnerships Internal Corporate Reinvestment Development Dividend Share Payments Repurchases • Maintain current level • $50M share repurchase prog
Slide 8: FY23 Guidance
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 8 | NASDAQ: SLP
Slide 9: Financial Results
Financial Results 9 | NASDAQ: SLP
Slide 10: Revenue - Q1
Q4 Revenue (in millions) Revenue - Q1 (in millions) 1Q23 Mix 1Q22 Mix -4% -17% +17% Total Revenue Software Revenue Services Revenue 10 | NASDAQ: SLP
Slide 11: Gross Margin Trends - Q1
Gross Margin Trends - Q1 11 | NASDAQ: SLP
Slide 12: Software Revenue by Product
Software Revenue by Product 1Q23 1Q22 Other Other Software Product as % of Software Revenue 12 | NASDAQ: SLP
Slide 13: Software Performance Metrics - Q1
Software Performance Metrics - Q1 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 13 | NASDAQ: SLP
Slide 14: Service Revenue by Type
Service Revenue by Type 1Q23 1Q22 PKPD PKPD QSP/QST QSP/QST PBPK PBPK Other Other Services as % of Service Revenue 14 | NASDAQ: SLP
Slide 15: Services Performance Metrics
Services Performance Metrics Total Projects Backlog 15 | NASDAQ: SLP
Slide 16: Income Statement Summary - Q1
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% 3.8 31% Income befo
Slide 17: Balance Sheet Summary
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 180.1 178.2 Total
Slide 18: FY23 Outlook Commentary
FY23 Outlook Commentary Guidance Commentary Total Revenue $59.3M to $62.0M • Q2 revenue growth 7% to 11% Total Revenue Growth 10% to 15% • Fixed total costs = cost of revenue + R&D expense + SG&A expense Software Revenue Mix 60% to 65% • Fiscal year trends on-track Service Revenue Mix 35% to 40% • I
Slide 19: Conclusion
Conclusion CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET • 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