Slide 1: Fourth Quarter & Full Year 2023 Financial Results
Fourth Quarter & Full Year 2023 Financial Results February 29, 2024 © Copyright 2024 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 2023 FINANCIALS Software 20+ Year ~2,400 $354.3M Revenue • Biosimulation Customers across History of innovation • Regulatory & compliance 66 countries 6% GAAP YoY Growth • Market access 6% CC YoY Growth(4) ~1,400 Employees 10+ Year
Slide 4: Financial Highlights Full Year 2023
Financial Highlights Full Year 2023 Adjusted Revenue Net Income(2) Adj. EBITDA(4) Diluted EPS Diluted EPS(5) $354.3M ($55.4M) $123.1M ($0.35) $0.43 6% GAAP YoY change PY $14.7M (3) 2% YoY PY $0.09 PY $0.46 6% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant cu
Slide 5: Financial Highlights Fourth Quarter 2023
Financial Highlights Fourth Quarter 2023 Adjusted Revenue Net Income(2) Adj. EBITDA(4) Diluted EPS Diluted EPS(5) $88.0M ($12.5M) $29.6M ($0.08) $0.09 2% GAAP YoY change PY $9.2M(3) (7%) YoY PY $0.06 PY $0.16 1% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant
Slide 6: Full Year 2023 Results - Revenue
Full Year 2023 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 354.3 354.2 335.6 335.6 222.7 222.6 220.2 220.2 115.5 131.7 115.5 131.7 2022 2023 2022 2023 Software Services Software Services Certara reported 6% constant currency(1) revenue growth (1) See
Slide 7: 4Q 2023 Results - Revenue
4Q 2023 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 88.0 87.1 86.6 86.6 57.5 54.4 57.5 54.0 29.2 33.6 29.2 33.2 4Q 2022 4Q 2023 4Q 2022 4Q 2023 Software Services Software Services Certara reported 1% constant currency(1) revenue growth (1) See Appendi
Slide 8: 4Q and TTM 2023 Results - Net Bookings
4Q and TTM 2023 Results - Net Bookings 4Q Reported Net Bookings TTM (Full Year) Reported Net Bookings ($Millions) ($Millions) 409.0 402.3 120.4 118.9 284.1 265.4 80.9 75.6 39.5 43.3 124.8 136.9 4Q 2022 4Q 2023 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly
Slide 9: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) 1.22x 1.20x 1.13x 1.14x 1.14x 408.9 413.1 398.4 403.8 402.3 335.6 344.4 352.1 353.0 353.4 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 TTM Bookings TTM Revenue Book to Bill Book to bill provides forward visibility into revenue growth © Copyright 2024 Certara, L.P.
Slide 10: 4Q and Full Year 2023 Results – Adjusted EBITDA
4Q and Full Year 2023 Results – Adjusted EBITDA 4Q Adjusted EBITDA(1) FY Adjusted EBITDA(1) ($Millions) ($Millions) 2% Growth 31.9 120.2 123.1 29.6 4Q 2022 4Q 2023 FY 2022 FY 2023 37% Adjusted EBITDA 34% 36% Adjusted EBITDA Margin(1) Margin(1) 35% (1) See Appendix for a reconciliation net income (lo
Slide 11: 4Q23 Business Updates
4Q23 Business Updates Key Takeaways from Fourth Quarter: Revenue $90.5M Improved Execution Across Commercial Organization Bolt-On Acquisitions Expand Offering Investing in Key Growth Initiatives in 2024 • Investing in salesforce to improve go-to- • Bookings strength in both software and • Acquisitio
Slide 12: 4Q23 Bookings YoY Trends – Pharma/Biotech Customers
4Q23 Bookings YoY Trends – Pharma/Biotech Customers (1) Tier Software Bookings Services Bookings I Growth below historical company averages, mainly due to timing of renewals Declined year over year due to large bookings in Q4’22, but improved sequentially II Strongest area of growth in software book
Slide 13: 2024 Outlook
2024 Outlook Initiated FY 2024 guidance Key Assumptions 2024 Guidance • Reported revenue growth of 9-13% Adjusted Adjusted • Full year adjusted EBITDA Revenue EBITDA Margin(1) Diluted EPS(1) expected to grow YoY $385-$400M 31-33% $0.41-$0.46 • Fully diluted shares expected to be in the range of 160-
Slide 14: Appendix
Appendix © Copyright 2024 Certara, L.P. All rights reserved.
Slide 15: 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, 2023 2022 2023 2022 ( in thousands) Net income (loss)(a) $ (12,456) $ 9,174 $ (55,357) $ 14,731 Interest expense(a) 5,870 5,445 22,916 17,773 Interest income(a) (2,889) (947) (9,31
Slide 16: 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, 2023 2022 2023 2022 (in thousands) Net income (loss) (a) $ (12,456) $ 9,174 $ (55,357) $ 14,731 Currency (gain) loss(a) 803 2,473 638 (3,166) Equity-based compensation e
Slide 17: 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, 2023 2022 2023 2022 (In thousands except share and per share data) Diluted earnings per share(a) $ (0.08) $ 0.06 $ (0.35) $ 0.09 Currency (gain) loss(a
Slide 18: 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 2023 2023 2022 $ % $ % Actual CC Actual Actual Actual CC Impact (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Software $ 33,619 $ 3
Slide 19: Notes to Reconciliations
Notes to Reconciliations (a.) Represents amounts as 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 compensati
Slide 20: Accelerating Medicines, Together
Accelerating Medicines, Together © Copyright 2024 Certara, L.P. All rights reserved.