Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2021 Earnings Presentation
24 slides from Simulations Plus's earnings presentation, Apr 12, 2021
Slide 1: Earnings Call – Q2 FY21
Earnings Call – Q2 FY21 Shawn O’Connor, CEO William Frederick, CFO April 12, 2021 (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. The actual results of the Company could differ significantly from those statements. Factors that could cause
Slide 3: Quarter Highlights
Quarter Highlights • Strong performance across the board in 2nd quarter • Year over year revenue growth of 27% for the quarter • Profitability improvements with continued favorable revenue mix toward increased software contribution • MIDD+ conference demonstrating industry leadership position • Inau
Slide 4: Revenue Mix – Q2
Revenue Mix – Q2 (in millions) $13.1 Total • 27% Y/Y growth $10.4 • 12% Y/Y growth (excl. Lixoft) $5.3 40% $8.5 Software 48% $5.0 • 45% Y/Y growth • 15% Y/Y growth (excl. Lixoft) 45% $3.8 • 60% of total revenue $7.8 Services 60% • 7% Y/Y growth 55% $4.7 52% $5.4 • 40% of total revenue FY19 FY20 FY21
Slide 5: Revenue Mix – YTD
Revenue Mix – YTD (in millions) $23.8 Total • 21% Y/Y growth $19.8 • 28% Y/Y growth (excl. DILIsym) $9.8 41% $16 Software 49% $9.8 • 40% Y/Y growth $7.2 • 13% Y/Y growth (excl. Lixoft) 45% • 59% of total revenue $14.0 Services 59% • 1% Y/Y growth $10.0 55% $8.8 51% • 41% of total revenue FY19 FY20 F
Slide 6: Growth & Profitability Metrics – Q2
Growth & Profitability Metrics – Q2 78% 74% 74% 60% 55% 56% 40% 34% 33% 27% 22% 15% $0.15 $0.12 $0.12 FY19 FY20 FY21 Revenue growth % EBITDA % of revenue Rule of 40 Gross Margins Diluted EPS * Pro forma non-GAAP numbers 6
Slide 7: Growth & Profitability Metrics – YTD
Growth & Profitability Metrics – YTD 78% 73% 73% 58% 55% 50% 39% 35% 34% $0.27 $0.23 $0.20 23% 21% 11% FY19 FY20 FY21 Revenue growth % EBITDA % of revenue Rule of 40 Gross Margins Diluted EPS * Pro forma non-GAAP numbers 7
Slide 8: Software Revenue by Product
Software Revenue by Product Q2 FY21 YTD FY21 GastroPlus 57% GastroPlus 56% Monolix Suite 20% Monolix Suite 19% ADMET ADMET 16% 17% Predictor Predictor Other Other Software 7% 8% Software Software Products as % of Software Revenue 8
Slide 9: Software Highlights
Software Highlights • Client Success – Successful progress with large pharma partner on AIDD lead optimization project; pipeline build of client candidates – Uptick in Monolix lead activity following release last quarter • New Products & Releases – GastroPlus V9.8.1 released – MonolixSuite R2020 tra
Slide 10: Software Performance Metrics – Q2
Software Performance Metrics – Q2 Avg. Revenue per Customer Renewal Rates (in thousands) $84 94% 93% 92% $66 $54 $49 $41 $42 88% 86% 86% FY19 FY20 FY21 FY19 FY20 FY21 All Companies Commercial Companies Fees Accounts 10
Slide 11: Software Performance Metrics – YTD
Software Performance Metrics – YTD Avg. Revenue per Customer Renewal Rates (in thousands) 93% 93% 93% $97 $71 $67 88% $59 $49 86% $45 85% FY19 FY20 FY21 FY19 FY20 FY21 All Companies Commercial Companies Fees Accounts 11
Slide 12: Services Revenue by Type
Services Revenue by Type Q2 FY21 YTD FY21 PKPD 50% PKPD 52% QSP/QST 32% QSP/QST 29% PBPK 18% PBPK 19% Services Types as % of Service Revenue 12
Slide 13: Services Highlights
Services Highlights • Significant large pharma PK/PD project in support of regulatory interactions • More than a dozen projects performed utilizing Monolix as primary analysis platform • 7 new PK/PD clients and 3 large project contracts with existing clients • Large QSP engagement in a new disease a
Slide 14: Services Performance Metrics
Services Performance Metrics Total Projects During Backlog Qtr. $12.7 139 $11.2 117 47 95 37 19 36 27 15 73 53 44 2Q19 2Q20 2Q21 2Q20 2Q21 PKPD QSP/QST PBPK Backlog (in millions) 14
Slide 15: YTD Performance & FY21 Outlook
YTD Performance & FY21 Outlook • Total Revenue Growth – YTD performance: 21% growth – Full-year target range: 15-20% organic growth plus 3-5% from Lixoft • Software Revenue Growth – YTD performance: 40% growth – Full-year target range: 20-25% growth • Services Revenue Growth – YTD performance: 1% gr
Slide 16: Financial Results
Financial Results @B Simulations SCIENCE + SOFTWARE = SUCCESS
Slide 17: Income Statement Summary – Q2
Income Statement Summary – Q2 (in millions) FY21 % of Rev FY20 % of Rev Revenues $ 13.1 100% $ 10.4 100% Revenue Growth 27% 22% Gross profit 10.2 78% 7.7 74% SG&A 5.4 42% 4.1 40% R&D 1.3 10% 0.7 7% Total operating exp 6.7 51% 4.9 47% Income from operations 3.5 27% 2.8 27% Other income (expense) (0.1
Slide 18: Income Statement Summary – YTD
Income Statement Summary – YTD (in millions) FY21 % of Rev FY20 % of Rev Revenues $ 23.8 100% $ 19.8 100% Revenue Growth 21% 23% Gross profit 18.5 78% 14.4 73% SG&A 9.9 41% 7.6 39% R&D 2.1 9% 1.3 6% Total operating exp 12.0 50% 8.9 45% Income from operations 6.5 27% 5.5 28% Other income (expense) (0
Slide 19: Gross Margin Trend – Q2
Gross Margin Trend – Q2 89% 85% 83% 78% 74% 74% 63% 63% 61% FY19 FY20 FY21 Software Services Total * Pro forma non-GAAP numbers 19
Slide 20: Gross Margin Trend - YTD
Gross Margin Trend - YTD 88% 84% 81% 78% 72% 73% 62% 63% 62% FY19 FY20 FY21 Software Services Total * Pro forma non-GAAP numbers 20
Slide 21: Balance Sheet Summary
Balance Sheet Summary (in millions, except where indicated) Feb. 28, 2021 Aug. 31, 2020 Cash and short-term investments $ 117.8 $ 116.0 Total current assets 135.6 129.1 Total assets 175.8 168.4 Current liabilities 6.5 5.5 Long-term liabilities 7.8 6.9 Total liabilities 14.3 12.4 Shareholders’ equity
Slide 22: Conclusion
Conclusion • Q2 revenue growth strong and in line with FY21 outlook • Richer mix of software revenues is enhancing our profitability metrics • Reinforcing our biosimulation leadership with successful conference sponsorship and good market momentum with the close of new business, renewal and growth o
Slide 23: Selected Financial Information
Selected Financial Information Nasdaq SLP Cash and short-term investments $118M Borrowed Debt Outstanding $0 Market Capitalization (a/o 4/05/21) $ 1.3B Fully Diluted Shares Outstanding 2Q21 20.8M Average Daily Trading Volume ~210,000 (current 30 day - a/o 4/05/21) 23
Slide 24: Thank you!
Thank you! https://www.simulations-plus.com 24