Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2021 Earnings Presentation
24 slides from Simulations Plus's earnings presentation, Apr 12, 2021
Slide 1: Earnings Call – Q2 FY21
Earnings Call – Q2 FY21 Shawn O’Connor, CEO William Frederick, CFO April 12, 2021 (NASDAQ:SLP)
Slide 2: Safe Harbor Statement
2 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 or contribute t
Slide 3: Quarter Highlights
Quarter Highlights Strong performance across the board in 2 nd quarter Year over year r evenue growth of 27% for the quarter Profitability improvements with continued favorable revenue mix toward increased software contribution MIDD+ conference demonstrating industry leadership position Inaugural ES
Slide 4: Revenue Mix – Q2
Revenue Mix – Q2 (in millions) Total • 27% Y/Y growth • 12% Y/Y growth (excl. Lixoft) Software • 45% Y/Y growth • 15% Y/Y growth (excl. Lixoft) • 60% of total revenue Services • 7% Y/Y growth • 40% of total revenue 4 $4.7 $5.4 $7.8 $3.8 $5.0 $5.3 FY19 FY20 FY21 Software Services 55% 45% 48% 52% 60%
Slide 5: Revenue Mix – YTD
Revenue Mix – YTD (in millions) Total • 21% Y/Y growth • 28% Y/Y growth (excl. DILIsym) Software • 40% Y/Y growth • 13% Y/Y growth (excl. Lixoft) • 59% of total revenue Services • 1% Y/Y growth • 41% of total revenue 5 $8.8 $10.0 $14.0 $7.2 $9.8 $9.8 FY19 FY20 FY21 Software Services 55% 45% 49% 51%
Slide 6: Growth & Profitability Metrics – Q2
Growth & Profitability Metrics – Q2 * Pro forma non - GAAP numbers 6 15% 22% 27% 40% 34% 33% 55% 56% 60% 74% 74% 78% $0.12 $0.12 $0.15 FY19 FY20 FY21 Revenue growth % EBITDA % of revenue Rule of 40 Gross Margins Diluted EPS
Slide 7: Growth & Profitability Metrics – YTD
Growth & Profitability Metrics – YTD * Pro forma non - GAAP numbers 7 11% 23% 21% 39% 35% 34% 50% 58% 55% 73% 73% 78% $0.20 $0.23 $0.27 FY19 FY20 FY21 Revenue growth % EBITDA % of revenue Rule of 40 Gross Margins Diluted EPS
Slide 8: Software Revenue by Product
Software Revenue by Product 8 57% 20% 16% 7% GastroPlus Monolix Suite ADMET Predictor Other Software Q2 FY21 Software Products as % of Software Revenue 56% 19% 17% 8% GastroPlus Monolix Suite ADMET Predictor Other Software YTD FY21
Slide 9: Software Highlights
Software Highlights • Client Success – Successful progress with large pharma partner on AIDD lead optimization project; pipeline build of client candidates – Uptick in Monolix lead activity following release last quarter • New Products & Releases – GastroPlus V9.8.1 released – MonolixSuite R2020 tra
Slide 10: Software Performance Metrics – Q2
Software Performance Metrics – Q2 Avg. Revenue per Customer (in thousands) 10 $41 $42 $66 $49 $54 $84 FY19 FY20 FY21 All Companies Commercial Companies Renewal Rates 92% 94% 93% 86% 88% 86% FY19 FY20 FY21 Fees Accounts
Slide 11: Software Performance Metrics – YTD
Software Performance Metrics – YTD Avg. Revenue per Customer (in thousands) 11 $45 $49 $71 $59 $67 $97 FY19 FY20 FY21 All Companies Commercial Companies Renewal Rates 93% 93% 93% 85% 88% 86% FY19 FY20 FY21 Fees Accounts
Slide 12: Services Revenue by Type
Services Revenue by Type 12 18% 32% 50% PBPK QSP/QST PKPD Q2 FY21 Services Types as % of Service Revenue 19% 29% 52% PBPK QSP/QST PKPD YTD FY21
Slide 13: Services Highlights
Services Highlights • Significant large pharma PK/PD project in support of regulatory interactions • More than a dozen projects performed utilizing Monolix as primary analysis platform • 7 new PK/PD clients and 3 large project contracts with existing clients • Large QSP engagement in a new disease a
Slide 14: Services Performance Metrics
Services Performance Metrics 14 44 53 73 15 27 19 36 37 47 95 117 139 2Q19 2Q20 2Q21 Total Projects During Qtr. PKPD QSP/QST PBPK Backlog $12.7 $11.2 2Q20 2Q21 Backlog (in millions)
Slide 15: YTD Performance & FY21 Outlook
YTD Performance & FY21 Outlook • Total Revenue Growth – YTD performance: 21% growth – Full - year target range: 15 - 20% organic growth plus 3 - 5% from Lixoft • Software Revenue Growth – YTD performance: 40% growth – Full - year target range: 20 - 25% growth • Services Revenue Growth – YTD performa
Slide 16: Financial Results
Financial Results
Slide 17: Income Statement Summary – Q2
17 Income Statement Summar y – Q2 (in millions) FY21 % of Rev FY20 % of Rev Revenues $ 13.1 100% $ 10.4 100% Revenue Growth 27% 22% Gross profit 10.2 78% 7.7 74% SG&A 5.4 42% 4.1 40% R&D 1.3 10% 0.7 7% Total operating exp 6.7 51% 4.9 47% Income from operations 3.5 27% 2.8 27% Other income (expense)
Slide 18: Income Statement Summary – YTD
18 Income Statement Summary – YTD (in millions) FY21 % of Rev FY20 % of Rev Revenues $ 23.8 100% $ 19.8 100% Revenue Growth 21% 23% Gross profit 18.5 78% 14.4 73% SG&A 9.9 41% 7.6 39% R&D 2.1 9% 1.3 6% Total operating exp 12.0 50% 8.9 45% Income from operations 6.5 27% 5.5 28% Other income (expense)
Slide 19: Gross Margin Trend – Q2
Gross Margin Trend – Q2 * Pro forma non - GAAP numbers 19 83% 85% 89% 63% 63% 61% 74% 74% 78% FY19 FY20 FY21 Software Services Total
Slide 20: Gross Margin Trend – YTD
Gross Margin Trend - YTD * Pro forma non - GAAP numbers 20 81% 84% 88% 62% 62% 63% 72% 73% 78% FY19 FY20 FY21 Software Services Total
Slide 21: Balance Sheet Summary
21 Balance Sheet Summary (in millions, except where indicated) Feb. 28, 2021 Aug. 31, 2020 Cash and short - term investments $ 117.8 $ 116.0 Total current assets 135.6 129.1 Total assets 175.8 168.4 Current liabilities 6.5 5.5 Long - term liabilities 7.8 6.9 Total liabilities 14.3 12.4 Shareholders’
Slide 22: Conclusion
Conclusion Q2 revenue growth strong and in line with FY21 outlook Richer mix of software revenues is enhancing our profitability metrics Reinforcing our biosimulation leadership with successful conference sponsorship and good market momentum with the close of new business, renewal and growth of exis
Slide 23: Selected Financial Information
Selected Financial Information Nasdaq SLP Cash and short - term investments $118 M Borrowed Debt Outstanding $0 Market Capitalization (a/o 4/05/21) $ 1.3B Fully Diluted Shares Outstanding 2Q21 20.8M Average Daily Trading Volume (current 30 day - a/o 4/05/21) ~210,000 23
Slide 24: Thank you!
24 Thank you! https://www.simulations - plus.com