Slide 1: Earnings Call – Q3 - FY24
Earnings Call – Q3 - FY24 July 2, 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but there can be no as
Slide 3: Third Quarter Highlights
Third Quarter Highlights CURRENT PERIOD $18.5M $0.15 $0.19 31% $19.6M Revenue Diluted EPS Adj. Adj. EBITDA as % Backlog Diluted EPS of Revenue Prior Year Comparison (3Q23) $16.2M $0.20 $0.21 40% $15.7M Revenue Diluted EPS Adj. Diluted Adj. EBITDA as Backlog EPS % of Revenue 3
Slide 4: Third Quarter Software Highlights
Third Quarter Software Highlights General ▪ Overall software revenue growth of 12% ▪ Good renewal rate, upsell and new logo activity ▪ Active and strong pipeline ADMET Predictor® (Cheminformatics) +15% ▪ 15 new customers +12% Q3 Revenue ▪ 10 upsells to existing customers YTD Revenue Growth Growth Ga
Slide 5: Third Quarter Services Highlights
Third Quarter Services Highlights General ▪ Overall services revenue growth of 18% ▪ Total backlog $19.6M – strong as we enter fourth quarter of fiscal 2024 ▪ Good momentum into fourth fiscal quarter of 2024 Physiologically Based Pharmacokinetics (PBPK) -10% ▪ Client sourced data delays impacting th
Slide 6: Financial Results
Financial Results
Slide 7: Revenue - Q3 FY24
Revenue - Q3 FY24 (in millions) 3Q24 Mix 3Q23 Mix +14% +12% +18% Total Revenue Software Revenue Services Revenue 7
Slide 8: Revenue - YTD
Revenue - YTD (in millions) FY24 Mix FY23 Mix +17% +14% +21% Total Revenue Software Revenue Services Revenue 8
Slide 9: Revenue - Trailing Twelve Months (TTM)
Revenue - Trailing Twelve Months (TTM) (in millions) 3Q24 Mix 3Q23 Mix +20% +22% +17% Total Revenue Software Revenue Services Revenue 9
Slide 10: Gross Margin Trends - Q3 FY24
Gross Margin Trends - Q3 FY24 1 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense. 10
Slide 11: Gross Margin Trends - YTD
Gross Margin Trends - YTD 1 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense. 11
Slide 12: Gross Margin Trends - TTM
Gross Margin Trends - TTM 1 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense. 12
Slide 13: Software Revenue by Business Unit
Software Revenue by Business Unit 3Q24 YTD TTM Software Business Unit as % of Software Revenue 13
Slide 14: Software Performance Metrics - Q3 FY24
Software Performance Metrics - Q3 FY24 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 14
Slide 15: Software Performance Metrics - TTM
Software Performance Metrics - TTM Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 15
Slide 16: Services Revenue by Business Unit
Services Revenue by Business Unit 3Q24 YTD TTM Services Business Unit as % of Services Revenue 16
Slide 17: Services Performance Metrics
Services Performance Metrics Total Projects Backlog (in millions) 17
Slide 18: Income Statement Summary - Q3 FY24
Income Statement Summary - Q3 FY24 (in millions, except Diluted EPS and Adjusted Diluted EPS) 3Q24 % of Rev 3Q23 % of Rev Revenue $18.5 100% $16.2 100% Revenue growth 14% 9% Gross profit 13.3 71% 13.3 82% R&D 1.3 7% 0.9 6% S&M 2.4 13% 1.7 10% G&A 7.7 41% 6.5 40% Total operating exp 11.4 61% 9.2 57%
Slide 19: Income Statement Summary - YTD
Income Statement Summary - YTD (in millions, except Diluted EPS and Adjusted Diluted EPS) 3Q24 % of Rev 3Q23 % of Rev Revenue $51.3 100% $43.9 100% Revenue growth 17% 4% Gross profit 36.3 71% 35.7 81% R&D 3.8 7% 3.4 8% S&M 6.3 12% 4.9 11% G&A 18.9 37% 18.4 42% Total operating exp 29.0 57% 26.7 61% I
Slide 20: Balance Sheet Summary
Balance Sheet Summary (in millions) May 31, 2024 August 31, 2023 Cash and short-term investments $119.0 $115.5 Total current assets 135.6 130.4 Total assets $192.7 $186.1 Current liabilities 11.3 12.0 Long-term liabilities 0.5 4.1 Total liabilities 11.8 16.1 Shareholders’ equity 180.9 170.0 Total li
Slide 21: Fiscal 2024 Guidance
Fiscal 2024 Guidance Guidance Total Revenue $69M - $72M Total Revenue Growth 15% - 20% Software Revenue Mix 55% - 60% Services Revenue Mix 40% - 45% Diluted EPS $0.46 - $0.48 Adjusted Diluted EPS $0.54 - $0.56 21
Slide 22: Conclusion
Conclusion CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET Delivering on our Developing organization to Expanding our software and commitment to scientific Creating shareholder value drive growth services portfolio leadership • FDA renewal of DILIsym • Leadership appointments • Release of Gast
Slide 23: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation* (in millions) FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Full Year Full Year YTD Net Income $3.0 $4.4 $4.1 $1.0 $1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $12.5 $10.0 $9.1 Excluding: Interest income and expense, net (0.1) (0.1) (
Slide 24: Adjusted EPS Non-GAAP Reconciliation
Adjusted EPS Non-GAAP Reconciliation* (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Full Year Full Year YTD Net Income (GAAP) $1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $12.5 $10.0 $9.1 Excluding: Mergers & Acquisitions expense 0.3 0.
Slide 25: Investor Relations Contacts
Investor Relations Contacts: Lisa Fortuna Financial Profiles 310-622-8251 slp@finprofiles.com Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com