Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results May 8, 2023 © Copyright 2023 Certara, L.P. All rights reserved.
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) 1Q23 FINANCIALS Software 20+ Year 2,300+ $90.3M Revenue • Biosimulation Customers across History of innovation • Regulatory & compliance 70 countries 11% GAAP YoY Growth • Market access 13% CC YoY Growth(4) 1,200+ Employees 10+ Year Te
Slide 4: Financial Highlights
Financial Highlights First Quarter 2023 Adjusted Revenue Net Income Adj. EBITDA(2) Diluted EPS Diluted EPS(3) $90.3M $1.4M $32.3M $0.01 $0.12 11% GAAP YoY change (39%) YoY 17% YoY PY $0.01 PY $0.11 13% CC YoY change (1) change change (1) See Appendix for reconciliation of GAAP revenue to constant cu
Slide 5: 1Q 2023 Results - Revenue
1Q 2023 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 90.3 91.9 81.6 81.6 57.3 58.1 52.4 52.4 29.2 33.0 29.2 33.8 1Q 2022 1Q 2023 1Q 2022 1Q 2023 Software Services Software Services Certara reported 13% constant currency(1) revenue growth (1) See Append
Slide 6: 1Q and TTM Results - Net Bookings
1Q and TTM Results - Net Bookings 1Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 112.7 413.1 108.5 368.3 79.1 82.0 287.0 266.4 29.4 30.7 101.9 126.1 1Q 2022 1Q 2023 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlated with r
Slide 7: Historical TTM Book to Bill
Historical TTM Book to Bill 1.22x 1.25x 1.24x 1.22x ($Millions) 1.20x 393.5 401.0 408.9 413.1 368.3 344.4 313.6 324.4 335.6 300.9 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 TTM Bookings TTM Revenue Book to Bill Stable book to bill provides forward visibility into revenue growth © Copyright 2023 Certara
Slide 8: 1Q 2023 Results – Adjusted EBITDA
1Q 2023 Results – Adjusted EBITDA Adjusted EBITDA(1) 32.3 27.7 1Q 2022 1Q 2023 34% Adjusted EBITDA Margin(1) 36% (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA © Copyright 2023 Certara, L.P. All rights reserved.
Slide 9: 2023 Outlook
2023 Outlook Reiterated FY 2023 guidance Key Assumptions 2023 Guidance • Reported revenue growth of 10-15% Adjusted Adjusted Revenue EBITDA(1) Diluted EPS(1) • Fully diluted shares expected to be in the range of 159- $370-$385M $131-$137M $0.50-$0.55 162M • Tax rate expected to be 25- 30% This finan
Slide 10: Appendix
Appendix © Copyright 2023 Certara, L.P. All rights reserved.
Slide 11: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED MARCH 31, 2023 2022 (in thousands) Net income(a) $ 1,358 $ 2,210 Interest expense(a) 5,475 3,228 Interest income(a) (1,354) (11) Provision for income taxes(a) 1,111 1,536 Depreciation and amortization expense(a) 411 482 Intang
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 MARCH 31, 2023 2022 (in thousands) (a) Net income $ 1,358 $ 2,210 Currency (gain) loss(a) 894 (705) Equity-based compensation expense(b) 8,543 7,513 Amortization of acquisition-related intangible assets(c) 11,256 10
Slide 13: Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share THREE MONTHS ENDED MARCH 31, 2023 2022 (in thousands except share and per share data) Diluted earnings per share(a) $ 0.01 $ 0.01 Currency (gain) loss(a) 0.01 — Equity-based compensation expense(b) 0.04 0.05 Amortiza
Slide 14: Reconciliation of Revenues to the Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED MARCH 31, CHANGE 2023 2023 2022 $ % $ % Actual CC Actual Actual Actual CC Impact Adjust for CC (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands) Revenue Software $ 33,005 $ 33,845 $
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
Slide 16: Accelerating Medicines, Together
Accelerating Medicines, Together © Copyright 2023 Certara, L.P. All rights reserved.