Slide 1: First Quarter 2022 Financial Results
accelerating medicines First Quarter 2022 Financial Results May 5, 2022
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 END-TO-END PLATFORM CUSTOMERS(3) 1Q 2022 FINANCIALS Software 20+ Year • Biosimulation 2,000+ $81.6M Revenue History of innovation Customers across • Regulatory & compliance 62 countries 22% YoY Growth • Market access (13% excl. Pinnacle 21) 1,100+ Employees(1) 10+ Year T
Slide 4: Financial Highlights
Financial Highlights First Quarter 2022 Adjusted Revenue Net Income Adj. EBITDA Diluted EPS Diluted EPS $81.6M $2.2M $27.7M $0.01 $0.11 YoY Change 22% PY $1.1M 16% PY $0.01 PY $0.10 See Appendix for reconciliation tables 2022 financials include contribution of Pinnacle 21 4
Slide 5: 1Q 2022 Results - Revenue
1Q 2022 Results - Revenue GAAP Reported Revenue(1) ($Millions) 81.6 66.7 52.4 44.8 21.9 29.2 1Q 2021 1Q 2022 Software Services Certara delivered strong revenue growth in the first quarter 2022 (1) Includes Pinnacle 21 contribution (2) FX impact is only related to Certara revenue excluding Pinnacle 2
Slide 6: 1Q and TTM 2022 Results - Net Bookings
1Q and TTM 2022 Results - Net Bookings 1Q Reported Net Bookings(1) TTM Reported Net Bookings(1) ($Millions) ($Millions) 108.5 368.3 309.2 81.9 79.1 266.4 232.0 60.0 21.9 29.4 101.9 77.2 1Q 2021 1Q 2022 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlat
Slide 7: Historical TTM Book to Bill
Historical TTM Book to Bill 1.20x 1.20x 1.19x 1.22x ($Millions) 1.14x 341.7 368.3 303.0 314.1 313.6 300.9 261.7 275.3 286.1 252.7 (1) (1) 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 TTM Bookings TTM Revenue Book to Bill Stable book to bill provides forward visibility into revenue growth (1) Includes Pin
Slide 8: 1Q Results – Adjusted EBITDA
1Q Results – Adjusted EBITDA Adjusted EBITDA(1) ($Millions) 27.7 23.9 1Q 2021 1Q 2022 36% Adjusted EBITDA Margin 34% (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA 8
Slide 9: 2022 Outlook
2022 Outlook Key Assumptions Certara Reiterates 2022 Guidance 2022 Guidance • Revenue growth excluding Pinnacle 21 expected to be 15-18% Adjusted Adjusted Revenue EBITDA(1) Diluted EPS(1)(2) • Fully diluted shares $350-$360M $127-$131M $0.48-$0.53 expected to be in the range of 159-161M • GAAP tax r
Slide 10: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) Certara Inaugural ESG Report Launched April 2022 • Accelerating crucial medicines to patients • Advancing scientific thought leadership and knowledge sharing • Increasing engagement with employees GENDER AND ETHNICALLY DIVERSE REPRESENTATION 10
Slide 11: Appendix
CERTARA” Appendix
Slide 12: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED MARCH 31 2022 2021 (in thousands) Net income(a) $ 2,210 $ 1,052 Interest expense(a) 3,228 3,928 Interest income(a) (11) (70) Provision for income taxes(a) 1,536 527 Depreciation and amortization expense(a) 482 602 Intangible a
Slide 13: 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 2022 2021 (in thousands) Net income(a) $ 2,210 $ 1,052 Currency gain (loss)(a) (705) 191 Equity-based compensation expense(b) 7,513 5,151 Amortization of acquisition-related intangible assets(c) 10,880 8,42
Slide 14: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share THREE MONTHS ENDED MARCH 31 2022 2021 Net income(a) $ 0.01 $ 0.01 Currency gain (loss)(a) — — Equity-based compensation expense(b) 0.05 0.03 Amortization of acquisition-related intangible assets(c) 0.07 0.06 Acquisit
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