Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q4 FY2021 Earnings Presentation
20 slides from Simulations Plus's earnings presentation, Oct 25, 2021
Slide 1: Earnings Call – Q4 FY21
Earnings Call – Q4 FY21 October 25, 2021 1 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. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing,
Slide 3: Financial Highlights
Financial Highlights ➢ Total Revenue Growth Exceeds Revised Guidance • 12% growth for FY21 vs. guidance of 5-10% growth ➢Continued Strong Software Performance • 28% revenue growth for FY21 vs. guidance of 20-25% growth • Accelerated growth continues ➢Service Business Continues to Build Backlog • 6%
Slide 4: Software Highlights
Software Highlights GastroPlus® ➢ 20% growth in quarter; 16% for FY21 3 20 ➢ 17 peer reviewed journal articles published in Q4 New $100k+ Multi-year ➢ 20 multi-year licenses during FY21 customers Licenses Signed 14 Upsells ADMET Predictor® ➢ 26% growth in quarter; 20% for FY21 +20% ➢ New functionali
Slide 5: Services Highlights
Services Highlights PKPD ➢ Q4 project disruptions returning to “normal” levels ➢ Underlying bookings activity is good +23% ▪ 10% increase in backlog for Q4; 49% increase for FY21 Backlog ➢ Significant client support in Q4 YOY ▪ Critical support to multi region regulatory approval and FDA submission
Slide 6: FY22 Outlook
FY22 Outlook Growth Targets: Commentary: ➢ Software business carries strong 10% to 15% momentum; incremental releases Total Revenue Growth planned for FY22. ➢ Services business remains volatile but 55% to 60% long-term outlook remains unchanged; Software Revenue % of backlog rebuilt and pipeline act
Slide 7: Financial Results
Financial Results 7 | NASDAQ: SLP
Slide 8: Q4 Revenue
Q4 Revenue (in millions) Q4 Revenue (in millions) Software Services 4Q21 Mix 45% 55% $9.5 $9.8 $8.0 $4.4 Software Services $4.8 $4.2 4Q20 Mix $5.4 $4.7 $3.8 50% 50% 4Q19 4Q20 4Q21 Software Services +3% +14% -7% Total Revenue Software Revenue Services Revenue 8 | NASDAQ: SLP
Slide 9: Fiscal Year Revenue
YTD Revenue (in millions) Fiscal Year Revenue (in millions) Software Services FY21 Mix $46.5 $41.6 40% 60% $34.0 $18.8 $20.0 $15.5 Software Services FY20 Mix $27.7 $21.6 $18.5 48% 52% FY19 FY20 FY21 Software Services +12% +28% -6% Total Revenue Software Revenue Services Revenue 9 | NASDAQ: SLP
Slide 10: Gross Margin Trends – Q4
Gross Margin Trends – Q4 85% 83% 81% 71% 72% 72% 63% 61% 55% 4Q19 4Q20 4Q21 Software Services Total 10 | NASDAQ: SLP
Slide 11: Gross Margin Trends – Fiscal Year
Gross Margin Trends – Fiscal Year 87% 88% 84% 77% 73% 74% 61% 61% 61% FY19 FY20 FY21 Software Services Total 11 | NASDAQ: SLP
Slide 12: Software Revenue by Product
Software Revenue by Product Q4 FY21 FY21 57% 59% 22% 18% 15% 16% Other 6% Other 7% Software Product as % of Software Revenue 12 | NASDAQ: SLP
Slide 13: Software Performance Metrics – Q4
Software Performance Metrics – Q4 Software Performance Metrics – Q4 Avg. Revenue per Customer Renewal Rates (in thousands) $65 $62 $60 93% 93% $55 90% 88% $42 $42 86% 77% FY19 FY20 FY21 FY19 FY20 FY21 All Companies Commercial Companies Fees Accounts 50%+ of FY21 non-renewals are nonprofit accounts 1
Slide 14: Software Performance Metrics – Fiscal Year
Software Performance Metrics – Fiscal Year Software Performance Metrics – YTD Avg. Revenue per Customer Renewal Rates (in thousands) 93% 93% 92% $121 $111 $111 89% $85 $69 85% $67 83% FY19 FY20 FY21 FY19 FY20 FY21 Fees Accounts All Companies Commercial Companies 50%+ of FY21 non-renewals are nonprof
Slide 15: Services Revenue by Type
Services Revenue by Type Q4 FY21 YTD FY21 PKPD 53% PKPD 49% QSP/QST 25% QSP/QST 28% PBPK 16% PBPK 14% Other 6% Other 9% Services Types as % of Service Revenue 15 | NASDAQ: SLP
Slide 16: Services Performance Metrics
Services Performance Metrics Services Performance Metrics Total Projects Backlog 343 $13.0 62 $11.1 $10.5 253 81 204 97 24 77 39 42 176 117 85 FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 PKPD QSP/QST PBPK Other Backlog (in millions) 16 | NASDAQ: SLP
Slide 17: Income Statement Summary – Q4
Income Statement Summary – Q4 (in millions, except EPS) FY21 % of Rev FY20 % of Rev Revenues $9.8 100% $9.5 100% Revenue Growth 3% 19% Gross profit 7.1 72% 6.9 72% R&D 1.3 13% 0.9 9% SG&A 5.6 57% 3.7 39% Total operating exp 6.9 70% 4.7 49% Income from operations 0.2 2% 2.2 23% Other income (expense)
Slide 18: Income Statement Summary – Fiscal Year
Income Statement Summary – Fiscal Year (in millions, except EPS) FY21 % of Rev FY20 % of Rev Revenues $46.5 100% $41.6 100% Revenue Growth 12% 22% Gross profit 35.9 77% 30.9 74% R&D 4.0 9% 3.0 7% SG&A 20.6 44% 16.4 39% Total operating exp 24.6 53% 19.3 46% Income from operations 11.3 24% 11.6 28% Ot
Slide 19: Balance Sheet Summary
Balance Sheet Summary (in millions) Aug. 31, 2021 Aug. 31, 2020 Cash and short-term investments $123.6 $116.0 Total current assets 139.3 129.1 Total assets 180.0 168.4 Current liabilities 11.6 5.5 Long-term liabilities 2.6 6.9 Total liabilities 14.2 12.4 Shareholders’ equity 165.8 156.0 Total liabil
Slide 20: Conclusion
Conclusion SECURE LEADERSHIP POSITION IN BIOSIMULATION MARKET ➢ Industry adoption of model informed drug development tools and techniques continues to expand ➢ Scientific credibility with academia and regulatory agencies ➢ Software business with accelerated revenue growth rates and expanded product