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
1 | NASDAQ: SLP Earnings Call – Q3 FY21 July 12, 2021
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 . The actual results of the Company could differ significantly from those statements . Factors that could cause o
Slide 3: 3rd Quarter Highlights
3 | NASDAQ: SLP » 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 ▪ Mixture o
Slide 4: Q3 Software Highlights
4 | NASDAQ: SLP GastroPlus® » Several new licenses to biologics development companies » New DDI functionality » Cross - selling success Q3 Software Highlights +64% Monolix® YOY Growth +114% DDI Module YOY Growth +58% HTPK Simulation Module YOY Growth 5 New $100k+ customers 23 Upsells MonolixSuite TM
Slide 5: Q3 Services Highlights
5 | NASDAQ: SLP 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 » Timing for re - engagement uncertain » Late quarter/low backlog timing made reallocation
Slide 6: Updated FY21 Outlook
6 | NASDAQ: SLP Updated FY21 Outlook Growth Targets: 5 to 10% Total Revenue Growth 20 to 25% Software Revenue Growth (7 - 12)% Service Revenue Growth Q4 Commentary: » Anticipate continued software performance in historically seasonally lower software revenue quarter » Monolix likely flat due to earl
Slide 7: Financial Results
7 | NASDAQ: SLP Financial Results
Slide 8: Q3 Revenue
8 | NASDAQ: SLP Q3 Revenue (in millions) +4% Total Revenue $5.8 $6.8 $8.3 $4.1 $5.5 $4.5 $9.9 $12.3 $12.8 3Q19 3Q20 3Q21 Software Services 56% 44% 3Q20 Mix Software Services 65% 35% 3Q21 Mix Software Services +21% Software Revenue (18)% Services Revenue
Slide 9: YTD Revenue
9 | NASDAQ: SLP YTD Revenue (in millions) $14.6 $16.8 $22.3 $11.3 $15.3 $14.3 $25.9 $32.1 $36.6 FY19 FY20 FY21 Software Services +14% Total Revenue +32% Software Revenue (6)% Services Revenue 53% 47% YTD FY20 Mix Software Services 61% 39% YTD FY21 Mix Software Services
Slide 10: Gross Margin Trend – Q3
10 | NASDAQ: SLP Gross Margin Trend – Q3 86% 90% 90% 63% 63% 63% 77% 78% 81% 3Q19 3Q20 3Q21 Software Services Total
Slide 11: Gross Margin Trend – YTD
11 | NASDAQ: SLP Gross Margin Trend – YTD 83% 86% 89% 62% 63% 63% 74% 75% 79% FY19 FY20 FY21 Software Services Total
Slide 12: Software Revenue by Product
12 | NASDAQ: SLP Software Revenue by Product 65% 18% 11% 6% GastroPlus ADMET Predictor Monolix Suite Other Software Q3 FY21 Software Product as % of Software Revenue 60% 17% 16% 7% GastroPlus ADMET Predictor Monolix Suite Other Software YTD FY21
Slide 13: Software Performance Metrics – Q3
13 | NASDAQ: SLP Software Performance Metrics – Q3 Avg. Revenue per Customer (in thousands) $57 $66 $71 $79 $89 $98 FY19 FY20 FY21 All Companies Commercial Companies Renewal Rates 93% 93% 91% 85% 89% 83% FY19 FY20 FY21 Fees Accounts
Slide 14: Software Performance Metrics – YTD
14 | NASDAQ: SLP Software Performance Metrics – YTD Avg. Revenue per Customer (in thousands) $57 $63 $81 $77 $85 $112 FY19 FY20 FY21 All Companies Commercial Companies Renewal Rates 93% 94% 91% 85% 87% 84% FY19 FY20 FY21 Fees Accounts
Slide 15: Services Revenue by Type
15 | NASDAQ: SLP Services Revenue by Type 13% 17% 27% 43% Other PBPK QSP/QST PKPD Q3 FY21 Services Types as % of Service Revenue 14% 14% 29% 43% Other PBPK QSP/QST PKPD YTD FY21
Slide 16: Services Performance Metrics
16 | NASDAQ: SLP Services Performance Metrics $11.8 $12.4 3Q20 3Q21 Backlog (in millions) 50 64 45 17 18 18 41 54 33 35 108 136 131 3Q19 3Q20 3Q21 Total Projects During Qtr. PKPD QSP/QST PBPK Other Backlog
Slide 17: Income Statement Summary – Q3
17 | NASDAQ: SLP 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
Slide 18: Income Statement Summary – YTD
18 | NASDAQ: SLP 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% Ot
Slide 19: Balance Sheet Summary
19 | NASDAQ: SLP 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 Sh
Slide 20: Conclusion
20 | NASDAQ: SLP » 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 leadership ▪ Good market momentum with