Slide 1: Earnings Call – Q2 FY22
1 | NASDAQ: SLP Earnings Call – Q2 FY22 April 6, 2022 1
Slide 2: Safe Harbor Statement
2 | NASDAQ: SLP 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, but
Slide 3: Second Quarter Highlights
3 | NASDAQ: SLP Second Quarter Highlights » Strong momentum to begin year » Continued strong double - digit software performance » Continued services backlog growth 13% Revenue Growth 48% Adj. EBITDA % of Revenue 40% Diluted EPS Growth » Demonstrated scientific leadership » New software releases » K
Slide 4: Second Quarter Software Highlights
4 | NASDAQ: SLP GastroPlus® MonolixSuite® +43% Q2 Revenue Growth » Release of MonolixSuite 2021 R1 with a new bioequivalence module » 8 new commercial customers and 11 upsells » Monolix Distributor Agreement for Japan market Second Quarter Software Highlights +22% Q2 Revenue Growth » 3 new commercia
Slide 5: Second Quarter Services Highlights
5 | NASDAQ: SLP Second Quarter Services Highlights PKPD » Good underlying bookings activity - full pipeline of opportunities » Revenue cadence impacted by customer timing requirements QSP/QST » Return to pre - COVID - 19 bookings attainment » Booked $1.7M NIH grant for BIOLOGXsym TM » 2 new QSP mode
Slide 6: FY22 Outlook
6 | NASDAQ: SLP FY22 Outlook Growth Targets: 10% to 15% Total Revenue Growth 55% to 60% Software Revenue % of Total Revenue 40% to 45% Service Revenue % of Total Revenue Commentary: » Software business continues to deliver strong momentum. » Services business normalizing and long - term outlook rema
Slide 7: Financial Results
7 | NASDAQ: SLP Financial Results
Slide 8: Revenue – Q2
8 | NASDAQ: SLP Q4 Revenue (in millions) +13% Total Revenue $5.4 $7.8 $9.8 $5.0 $5.3 $5.0 $10.4 $13.1 $14.8 2Q20 2Q21 2Q22 Software Services 60% 40% 2Q21 Mix Software Services 66% 34% 2Q22 Mix Software Services Revenue – Q2 (in millions) +25% Software Revenue - 5% Service Revenue
Slide 9: Revenue – YTD
9 | NASDAQ: SLP Q4 Revenue (in millions) +14% Total Revenue $10.0 $14.0 $17.1 $9.8 $9.8 $10.1 $19.8 $23.8 $27.2 FY20 FY21 FY22 Software Services 59% 41% FY21 Mix Software Services 63% 37% FY22 Mix Software Services +23% Software Revenue Revenue – YTD (in millions) +2% Service Revenue
Slide 10: Gross Margin Trends – Q2
10 | NASDAQ: SLP 86% 89% 92% 61% 61% 59% 74% 78% 81% 2Q20 2Q21 2Q22 Software Services Total Gross Margin Trends – Q2
Slide 11: Gross Margin Trends – YTD
11 | NASDAQ: SLP 85% 88% 91% 61% 63% 60% 73% 78% 79% FY20 FY21 FY22 Software Services Total Gross Margin Trends – YTD
Slide 12: Software Revenue by Product
12 | NASDAQ: SLP Software Revenue by Product Software Product as % of Software Revenue 56% 23% 14% 7% Q2 FY22 Other 55% 22% 17% 6% YTD FY22 Other
Slide 13: Software Performance Metrics – Q2
13 | NASDAQ: SLP Software Performance Metrics – Q4 Avg. Revenue per Customer (in thousands) $54 $84 $101 2Q20 2Q21 2Q22 91% 88% 87% 96% 92% 96% 2Q20 2Q21 2Q22 Accounts Fees Software Performance Metrics – Q2 Commercial Customers Renewal Rates
Slide 14: Software Performance Metrics – YTD
14 | NASDAQ: SLP Software Performance Metrics – Q4 Avg. Revenue per Customer (in thousands) $67 $97 $97 FY20 FY21 FY22 93% 87% 90% 97% 93% 96% FY20 FY21 FY22 Accounts Fees Software Performance Metrics – YTD Commercial Customers University+ Customers: 124 in 39 countries Renewal Rates
Slide 15: Services Revenue by Type
15 | NASDAQ: SLP Services Revenue by Type Services Types as % of Service Revenue 44% 30% 19% 7% PKPD QSP/QST PBPK Other Q2 FY22 45% 30% 18% 7% PKPD QSP/QST PBPK Other YTD FY22
Slide 16: Services Performance Metrics
16 | NASDAQ: SLP Services Performance Metrics $13 $11 $17 2Q20 2Q21 2Q22 Backlog (in millions) 53 73 63 27 19 25 37 47 82 - 31 117 139 201 2Q20 2Q21 2Q22 PKPD QSP/QST PBPK Other Backlog Services Performance Metrics Total Projects
Slide 17: Income Statement Summary – Q2
17 | NASDAQ: SLP Income Statement Summary – Q2 (in millions, except EPS) 2Q22 % of Rev 2Q21 % of Rev Revenue $14.8 100% $13.1 100% Revenue Growth 13% 27% Gross profit 12.0 81% 10.2 78% R&D 0.9 6% 1.3 10% SG&A 5.6 38% 5.4 42% Total operating expense 6.5 44% 6.7 51% Income from operations 5.5 37% 3.5
Slide 18: Income Statement Summary – YTD
18 | NASDAQ: SLP Income Statement Summary – YTD (in millions, except EPS) FY22 % of Rev FY21 % of Rev Revenue $27.2 100% $23.8 100% Revenue Growth 14% 21% Gross profit 21.6 79% 18.5 78% R&D 1.8 7% 2.1 0 9% SG&A 10.6 39% 9.9 41% Total operating expense 12.4 45% 12.0 50% Income from operations 9.3 34%
Slide 19: Balance Sheet Summary
19 | NASDAQ: SLP Balance Sheet Summary (in millions) Feb. 28, 2022 Aug. 31, 2021 Cash and short - term investments $124.6 $123.6 Total current assets 143.6 139.3 Total assets 185.0 180.0 Current liabilities 9.0 11.6 Long - term liabilities 3.4 2.6 Total liabilities 12.4 14.2 Shareholders’ equity 172
Slide 20: Conclusion
20 | NASDAQ: SLP Conclusion » 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 functionality » Services business