Slide 1: Fourth Quarter & Full Year 2024 Financial Results
Fourth Quarter & Full Year 2024 Financial Results February 26, 2025 © Copyright 2025 Certara, L.P. All rights reserved.
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(1) END-TO-END PLATFORM CUSTOMERS(3) FY 2024 FINANCIALS Software 20+ Year >2,400 $385.1M Revenue • Biosimulation Customers across History of innovation • Regulatory & compliance 70 countries 9% GAAP YoY Growth • Market access 8% CC YoY Growth(4) ~1,550 Employees 10+ Year
Slide 4: Financial Highlights Full Year 2024
Financial Highlights Full Year 2024 Adjusted Revenue Net Income Adj. EBITDA(3) Diluted EPS Diluted EPS(4) $385.1M ($12.1M) $122.0M ($0.08) $0.45 9% GAAP YoY change PY ($55.4M)(2) (1%) YoY PY ($0.35) PY $0.43 8% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant
Slide 5: Financial Highlights Fourth Quarter 2024
Financial Highlights Fourth Quarter 2024 Adjusted Revenue Net Income Adj. EBITDA(3) Diluted EPS Diluted EPS(4) $100.4M $6.6M $33.5M $0.04 $0.15 14% GAAP YoY change PY ($12.5M)(2) 13% YoY PY ($0.08) PY $0.09 14% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant
Slide 6: FY 2024 Results - Revenue
FY 2024 Results - Revenue GAAP Reported Revenue(1) Constant Currency Revenue(2) ($Millions) ($Millions) 354.3 385.1 383.8 354.3 229.5 228.7 222.7 222.7 131.7 155.7 131.7 155.2 2023 2024 2023 2024 Software Services Software Services Certara reported 8% constant currency(1) revenue growth (1) Includes
Slide 7: 4Q 2024 Results - Revenue
4Q 2024 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 100.4 100.2 88.0 88.0 58.1 57.9 54.4 54.4 33.6 42.3 33.6 42.3 4Q 2023 4Q 2024 4Q 2023 4Q 2024 Software Services Software Services Certara reported 14% constant currency(1) revenue growth (1) See Appe
Slide 8: 4Q and TTM Results - Net Bookings
4Q and TTM Results - Net Bookings 4Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 144.5 445.3 118.9 402.3 84.8 275.6 75.6 265.3 59.7 169.7 43.3 137.0 4Q 2023 4Q 2024 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlated with r
Slide 9: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) 1.16x 1.14x 1.10x 1.12x 1.13x 419.7 445.3 402.3 395.4 408.4 385.1 354.3 360.3 363.6 372.8 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 TTM Bookings TTM Revenue Book to Bill Book to bill provides forward visibility into revenue growth © Copyright 2025 Certara, L.P.
Slide 10: Historical Software Net Retention Rate (NRR)
Historical Software Net Retention Rate (NRR)(1) 115.0% 114.1% 113.0% 111.3% 111.0% 110.5% 109.9% 109.0% 108.6% 108.0% 107.4% 107.6% 107.0% 105.5% 105.0% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 NRR(1) provides insight into growth and retention among existing software c
Slide 11: Historical Software Net Retention Rate (NRR)
Historical Software Net Retention Rate (NRR)(1) 115.0% 114.1% 113.0% 111.3% 111.0% 110.5% 109.9% 109.0% 108.6% 108.0% 107.4% 107.6% 107.0% 105.5% 105.0% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 NRR(1) provides insight into growth and retention among existing software c
Slide 12: 4Q and FY 2024 Results – Adjusted EBITDA
4Q and FY 2024 Results – Adjusted EBITDA 4Q Adjusted EBITDA(1) FY Adjusted EBITDA(1) ($Millions) ($Millions) 33.5 123.1 122.0 29.6 4Q 2023 4Q 2024 FY 2023 FY 2024 34% Adjusted EBITDA 33% 35% Adjusted EBITDA Margin(1) Margin(1) 32% (1) See Appendix for a reconciliation net income (loss) to adjusted E
Slide 13: 4Q and FY 2024 Results - Reconciliation of Revenue Growth
4Q and FY 2024 Results - Reconciliation of Revenue Growth 4Q 2024 FY 2024(3) Item Growth Contribution Item Growth Contribution Organic Software(1) +7% Organic Software(1) +10% + Other Acquisitions(2) ~40 bps + Other Acquisitions(2) ~395 bps + Chemaxon ~1820 bps + Chemaxon +460 bps Reported Software
Slide 14: 4Q24 Business Updates
4Q24 Business Updates Key Takeaways from Fourth Quarter: Revenue $90.5M Strong 4Q Bookings Performance Expecting Similar End Markets in 2025 Investing in Software Platform Expansion • Anticipating customers will continue to • R&D investment to accelerate product • Commercial execution drove strong d
Slide 15: 4Q24 Bookings YoY Trends – Pharma/Biotech Customers
4Q24 Bookings YoY Trends – Pharma/Biotech Customers (1) Tier Software Bookings | +38% Services Bookings | +12% I Strong growth driven by biosimulation adoption, and cross-selling Growth in-line with historical company averages led by a recovery in regulatory services II Growth slightly below histori
Slide 16: 2025 Outlook
2025 Outlook Initiated 2025 Guidance Key Assumptions 2025 Guidance • Reported revenue growth of 8-10% Adjusted Adjusted • Chemaxon Revenue expected Revenue EBITDA Margin Diluted EPS(1) to be $23-$25M $415-$425M 30-32% $0.42-$0.46 • Fully diluted shares expected to be in the range of 162- 164 • Tax r
Slide 17: Appendix
Appendix © Copyright 2025 Certara, L.P. All rights reserved.
Slide 18: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2024 2023 2024 2023 ( in thousands) Net income (loss)(a) $ 6,577 $ (12,456) $ (12,051) $ (55,357) Interest expense(a) 5,004 5,870 21,520 22,916 Interest income(a) (1,365) (2,889) (
Slide 19: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 ( in thousands) Net income (loss) (a) $ 6,577 $ (12,456) $ (12,051) $ (55,357) Currency (gain) loss(a) (182) 803 2,344 638 Equity-based compensation
Slide 20: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 (In thousands except share and per share data) Diluted earnings per share(a) $ 0.04 $ (0.08) $ (0.08) $ (0.35) Currency (gain) loss
Slide 21: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED DECEMBER 31, Change 204 2024 2023 $ % $ % Adjust for Actual CC Actual Actual Actual CC Impact CC (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Software
Slide 22: Notes to Reconciliations
Notes to Reconciliations (a.) All measures are amounts 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 compens
Slide 23: Accelerating Medicines, Together
Accelerating Medicines, Together © Copyright 2025 Certara, L.P. All rights reserved.