Certara, Inc. · NASDAQ:CERT
Certara — Q2 2025 Earnings Presentation
23 slides from Certara's earnings presentation, Aug 6, 2025
Slide 1: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results August 6, 2025
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. In addition, unless otherwise indicated, references to the “Company,” “Cer
Slide 3: Certara Our Mission
Certara Our Mission We use biosimulation, data, and scientific expertise to transform drug development and accelerate medicines to patients. Biosimulation Technology Scientific Leadership Proven Results Platform 20 years of industry leadership More than 90% of all novel drugs More than 2,400 compani
Slide 4: A Trusted Life Sciences Partner
A Trusted Life Sciences Partner 2,600+ 1550+ 400+ >90% Customers across 70 countries; Global team members in Employees with PhDs all novel drugs approved 30 of the top 30 biopharma by the US FDA since 2014 30 countries were supported by Certara solutions Validated by Software adopted by Used by 23 3
Slide 5: Drug Development Needs a New Model
YEAR 15 Drug Development BASIC DRUG PRE- FDA POST- CLINICAL TRIALS RESEARCH DISCOVERY CLINICAL REVIEW APPROVAL Research & Needs a New Model Phase I Phase II Phase III Monitoring 88% OF NEW MEDICINES T H AT E N T E R C L I N I C A L $2–3 BILLION* T R I A L S FA I L* POTENTIAL NEW MEDICINES 1 FDA- 40–
Slide 6: Biosimulation Platform
Biosimulation Platform DISCOVERY PRECLINICAL CLINICAL Integrated chemical and Cheminformatics biological property prediction Biosimulation Integrated workflows for Integrated scientific analytics PK Analytics enhanced cellular predictions and reporting workflows Biostatistical Analytics & Submission
Slide 7: Financial Highlights
Financial Highlights Second Quarter 2025 REVENUE NET LOSS ADJ. EBITDA(2) DILUTED EPS ADJUSTED DILUTED EPS(3) $104.6M ($2.0M) $31.9M ($0.01) $0.07 12% GAAP YoY change PY ($12.6M) 21% YoY PY ($0.08) PY $0.07 10% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant c
Slide 8: 2Q 2025 Results - Revenue
2Q 2025 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 104.6 103.1 93.3 93.3 57.9 57.1 55.1 55.1 38.2 46.7 38.2 45.9 2Q 2024 2Q 2025 2Q 2024 2Q 2025 Software Services Software Services Certara reported 10% constant currency(1) revenue growth 8 (1) See Ap
Slide 9: 2Q 2025 and TTM Results - Net Bookings
2Q 2025 and TTM Results - Net Bookings 2Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 112.0 470.8 98.9 408.4 65.4 288.9 57.1 262.7 41.8 46.6 145.7 181.9 2Q 2024 2Q 2025 2Q 2024 2Q 2025 Software Services Software Services Trailing twelve months bookings are highly correlat
Slide 10: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) $485 1.16x 1.16x 1.16x $465 1.12x 1.13x $445 $425 $405 $385 $365 $345 $325 $305 $285 $265 $245 445.3 457.7 470.8 $225 408.4 419.7 405.8 $205 372.8 385.1 394.5 $185 363.6 $165 $145 $125 $105 $85 $65 $45 $25 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 TTM Bookings T
Slide 11: Historical Software Net Retention Rate (NRR)
Historical Software Net Retention Rate (NRR)(1) 115.0% 114.1% 111.3% 110.5% 110.0% 108.6% 108.0% 107.4% 107.6% 107.6% 105.5% 105.0% 102.4% 100.0% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 NRR(1) provides insight into growth and retention among existing software
Slide 12: 2Q 2025 Results – Adjusted EBITDA
2Q 2025 Results – Adjusted EBITDA Adjusted EBITDA(1) Adjusted EBITDA 28% 35% 33% 33% 31% Margin(1) 33.1 33.5 34.8 31.9 26.3 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 2Q25 Adjusted EBITDA grew 21% vs. the prior year period 12 (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA
Slide 13: 2Q 2025 Results – Reconciliation of Revenue & Bookings Growth
2Q 2025 Results – Reconciliation of Revenue & Bookings Growth 2Q 2025 Revenue 2Q 2025 Bookings Item Growth Contribution Item Growth Contribution Organic Software(1) +9% Organic Software(1) (-1%) + Chemaxon ~1330 bps + Chemaxon ~1250 bps Reported Software +22% Reported Software +11% Organic Services(
Slide 14: 2Q25 Business Updates
2Q25 Business Updates Key Takeaways from Second Quarter Performance: Strong Operational QSP Interest Continues Software Investments Driving Performance to Grow Product Updates • Solid performance across the portfolio • Second quarter QSP services revenues • Signed strategic agreement with Merck driv
Slide 15: 2Q25 Bookings y/y Trends – Pharma/Biotech Customers
2Q25 Bookings y/y Trends – Pharma/Biotech Customers Tier1 Software Bookings | +11% y/y Services Bookings | +15% y/y I Softness driven by timing of renewals, offset by modest expansion and upsell Strongest area of services growth, driven by strength in biosimulation and regulatory II Strongest y/y gr
Slide 16: 2025 Outlook
2025 Outlook Reiterated FY 2025 guidance Key Assumptions 2025 Guidance REVENUE ADJUSTED ADJUSTED EBITDA Margin(1) DILUTED EPS(1) $415-$425M 30-32% $0.42-$0.46 Reported revenue growth of 8-10% Chemaxon Revenue expected to be $23-$25M Fully diluted shares expected to be in the range of 162-164M This f
Slide 17: Appendix
Appendix CERTARAQ
Slide 18: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 2025 2024 2025 2024 (in thousands) Net income (loss)(a) $ (1,968) $ (12,574) $ 2,775 $ (17,257) Interest expense(a) 4,802 5,578 9,608 11,329 Interest income(a) (1,243) (2,486) (2,885) (5,060)
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 SIX MONTHS ENDED JUNE 30, JUNE 30, 2025 2024 2025 2024 ( in thousands) Net income (loss) (a) $ (1,968) $ (12,574) $ 2,775 $ (17,257) Currency (gain) loss(a) (577) 104 (639) 980 Equity-based compensation expense(b) 8
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 SIX MONTHS ENDED JUNE 30, JUNE 30, 2025 2024 2025 2024 Diluted earnings per share(a) $ (0.01) $ (0.08) $ 0.02 $ (0.11) Currency (gain) loss(a) — — — 0.01 Equity-based compensation expense(b) 0.05 0
Slide 21: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED JUNE 30, Change 2025 2025 2024 $ % $ % Actual CC Actual Actual Actual CC Impact (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Software $ 46,695 $ 45,92
Slide 22: Notes to Reconciliations
Notes to Reconciliations a) Represents a measure 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 compensation st
Slide 23: Accelerating Medicines, Together
Accelerating Medicines, Together