Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q3 FY2021 Earnings Presentation
20 slides from Simulations Plus's earnings presentation, Jul 12, 2021
Slide 1: Earnings Call – Q3 FY21
Earnings Call – Q3 FY21 July 12, 2021 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. The actual results of the Company could differ significantly from those statements. Factors that could cause
Slide 3: 3rd Quarter Highlights
3rd Quarter Highlights ➢ Strong Software Performance ▪ Greater than historical growth rates - contributed to improved margins/profitability ▪ Delivery of new technology ▪ Business development investment driving cross-selling ➢ Challenging Service Performance ▪ Bookings were good; backlog grew ▪ Mixt
Slide 4: Q3 Software Highlights
Q3 Software Highlights GastroPlus® ➢ Several new licenses to biologics 5 +114% New $100k+ DDI Module development companies customers YOY Growth ➢ New DDI functionality ➢ Cross-selling success 23 Upsells ADMET Predictor® ➢ Released new ADMET Predictor +58% modules HTPK Simulation Module ➢ New HTPK fu
Slide 5: Q3 Services Highlights
Q3 Services Highlights PKPD ➢ 9 projects impacted by delays, holds or drug development cancellations in 2H of Q3 ➢ Covid delays from prior quarters and events in Middle East drove delays/holds +5% ➢ Timing for re-engagement uncertain Backlog ➢ Late quarter/low backlog timing made reallocation of res
Slide 6: Updated FY21 Outlook
Updated FY21 Outlook Growth Targets: Q4 Commentary: ➢ Anticipate continued software 5 to 10% performance in historically Total Revenue Growth seasonally lower software revenue quarter 20 to 25% ➢ Monolix likely flat due to early Software Revenue Growth renewals ➢ Service project delays, holds (7-12)
Slide 7: Financial Results
Financial Results 7 | NASDAQ: SLP
Slide 8: Q3 Revenue
Q3 Revenue (in millions) Software Services 3Q21 Mix $12.8 $12.3 35% 65% $9.9 $4.5 $5.5 $4.1 Software Services 3Q20 Mix $8.3 $6.8 $5.8 44% 56% 3Q19 3Q20 3Q21 Software Services +4% +21% (18)% Total Revenue Software Revenue Services Revenue 8 | NASDAQ: SLP
Slide 9: YTD Revenue
YTD Revenue (in millions) Software Services YTD FY21 Mix $36.6 $32.1 39% 61% $14.3 $25.9 $15.3 $11.3 Software Services YTD FY20 Mix $22.3 $16.8 $14.6 47% 53% FY19 FY20 FY21 Software Services +14% +32% (6)% Total Revenue Software Revenue Services Revenue 9 | NASDAQ: SLP
Slide 10: Gross Margin Trend – Q3
Gross Margin Trend – Q3 90% 90% 86% 81% 78% 77% 63% 63% 63% 3Q19 3Q20 3Q21 Software Services Total 10 | NASDAQ: SLP
Slide 11: Gross Margin Trend – YTD
Gross Margin Trend – YTD 89% 86% 83% 79% 74% 75% 63% 63% 62% FY19 FY20 FY21 Software Services Total 11 | NASDAQ: SLP
Slide 12: Software Revenue by Product
Software Revenue by Product Q3 FY21 YTD FY21 GastroPlus 65% GastroPlus 60% ADMET ADMET 18% 17% Predictor Predictor Monolix Suite 11% Monolix Suite 16% Other Other Software 6% 7% Software Software Product as % of Software Revenue 12 | NASDAQ: SLP
Slide 13: Software Performance Metrics – Q3
Software Performance Metrics – Q3 Avg. Revenue per Customer Renewal Rates (in thousands) 93% 93% $98 91% $89 $79 $71 89% $66 $57 85% 83% FY19 FY20 FY21 FY19 FY20 FY21 All Companies Commercial Companies Fees Accounts 13 | NASDAQ: SLP
Slide 14: Software Performance Metrics – YTD
Software Performance Metrics – YTD Avg. Revenue per Customer Renewal Rates (in thousands) $112 94% 93% $85 $81 91% $77 $63 $57 87% 85% 84% FY19 FY20 FY21 FY19 FY20 FY21 All Companies Commercial Companies Fees Accounts 14 | NASDAQ: SLP
Slide 15: Services Revenue by Type
Services Revenue by Type Q3 FY21 YTD FY21 PKPD 43% PKPD 43% QSP/QST 27% QSP/QST 29% PBPK 17% PBPK 14% Other 13% Other 14% Services Types as % of Service Revenue 15 | NASDAQ: SLP
Slide 16: Services Performance Metrics
Services Performance Metrics Total Projects During Qtr. Backlog $12.4 136 $11.8 131 108 54 35 41 33 18 17 18 64 50 45 3Q19 3Q20 3Q21 3Q20 3Q21 PKPD QSP/QST PBPK Other Backlog (in millions) 16 | NASDAQ: SLP
Slide 17: Income Statement Summary – Q3
Income Statement Summary – Q3 (in millions) FY21 % of Rev FY20 % of Rev Revenues $ 12.8 100% $ 12.3 100% Revenue Growth 4% 24% Gross profit 10.3 81% $ 9.6 78% SG&A $ 5.1 40% $ 5.0 41% R&D 0.7 5% 0.8 6% Total operating exp 5.8 45% 5.8 47% Income from operations 4.5 36% 3.9 31% Other income (expense)
Slide 18: Income Statement Summary – YTD
Income Statement Summary – YTD (in millions) FY21 % of Rev FY20 % of Rev Revenues $ 36.6 100% $ 32.0 100% Revenue Growth 14% 24% Gross profit 28.8 79% 24.1 75% SG&A $ 15.0 41% 12.6 39% R&D 2.8 8% 2.0 6% Total operating exp 17.7 48% 14.7 46% Income from operations 11.1 30% 9.4 29% Other income (expen
Slide 19: Balance Sheet Summary
Balance Sheet Summary (in millions, except where indicated) May 31, 2021 Aug. 31, 2020 Cash and short-term investments $119.8 $116.0 Total current assets 138.7 129.1 Total assets 179.1 168.4 Current liabilities 7.3 5.5 Long-term liabilities 6.3 6.9 Total liabilities 13.7 12.4 Shareholders’ equity 16
Slide 20: Conclusion
Conclusion Mid to long-term outlook remains unchanged ➢ Higher software growth rates and richer mix of software revenue are enhancing profitability metrics ➢ Near-term service project delays, holds or drug development program cancellations will reduce FY21 growth ➢ Reinforcing our biosimulation lead