Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q3 FY2022 Earnings Presentation
20 slides from Simulations Plus's earnings presentation, Jul 6, 2022
Slide 1: Earnings Call - Q3 - FY22
Earnings Call - Q3 - FY22 July 6, 2022 1 1 | NASDAQ: SLP
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical information, the matters discussed in this presentation are forward- looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing,
Slide 3: Third Quarter Highlights
Third Quarter Highlights 17% 11% 42% 34% Revenue Growth Diluted EPS Adj. EBITDA % of Services Backlog Growth Revenue Growth • Strong Q3 Performance ◦ Demonstrated scientific leadership ▪ Continued double-digit software ▪ New software releases performance (16% growth) ▪ Key pharma and regulatory ▪ Se
Slide 4: Third Quarter Software Highlights
Third Quarter Software Highlights GastroPlus® +19% • 6 new commercial customers • 14 upsells +20% Q3 Revenue YTD Revenue Growth • 16 peer reviewed journal articles published in Q3 Growth MonolixSuite® +8% ◦ 10 new commercial customers +31% Q3 Revenue ◦ Continued focus on expansion of geographic YTD
Slide 5: Third Quarter Services Highlights
Third Quarter Services Highlights +19% +34% +50% Revenue Backlog Projects Growth Growth Growth PKPD • Good 1H bookings contributes to 40% increase in projects in Q3 +29% Q3 Revenue • Rising utilization and project pricing yields Growth QSP/QST • Good Q2 bookings commenced project activity in Q3, but
Slide 6: FY22 Outlook
FY22 Outlook Growth Targets: Commentary: ◦ Software business continues to deliver 12% to 15% strong momentum. Total Revenue Growth ◦ Services business normalizing and long- 55% to 60% term outlook remains positive; strong Software Revenue % of Total backlog growth and robust pipeline Revenue activit
Slide 7: Financial Results
Financial Results 7 | NASDAQ: SLP
Slide 8: Revenue - Q3
Q4 Revenue (in millions) Revenue - Q3 (in millions) 3Q22 Mix 3Q21 Mix +17% +16% +19% Total Revenue Software Revenue Services Revenue 8 | NASDAQ: SLP
Slide 9: Revenue – YTD
Q4 Revenue (in millions) Revenue – YTD (in millions) FY22 Mix FY21 Mix +15% +20% +8% Total Revenue Software Revenue Services Revenue 9 | NASDAQ: SLP
Slide 10: Gross Margin Trends - Q3
Gross Margin Trends - Q3 10 | NASDAQ: SLP
Slide 11: Gross Margin Trends – YTD
Gross Margin Trends – YTD 11 | NASDAQ: SLP
Slide 12: Software Revenue by Product
Software Revenue by Product Q3 FY22 YTD FY22 Other Other Software Product as % of Software Revenue 12 | NASDAQ: SLP
Slide 13: Software Performance Metrics - Q3
Software Performance Metrics - Q3 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 13 | NASDAQ: SLP
Slide 14: Software Performance Metrics – YTD
Software Performance Metrics – YTD Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) University+ Customers: 190 in 49 countries 14 | NASDAQ: SLP
Slide 15: Services Revenue by Type
Services Revenue by Type Q3 FY22 YTD FY22 PKPD PKPD QSP/QST QSP/QST PBPK PBPK Other Other Software Product as % of Software Revenue 15 | NASDAQ: SLP
Slide 16: Services Performance Metrics
Services Performance Metrics Total Projects Backlog 16 | NASDAQ: SLP
Slide 17: Income Statement Summary - Q3
Income Statement Summary - Q3 (in millions, except EPS) 3Q22 % of Rev 3Q21 % of Rev Revenue $15.0 100% $12.8 100% Revenue Growth 17% 4% Gross profit 12.4 83% 10.3 81% R&D 0.7 4% 0.7 5% SG&A 6.8 45% 5.1 40% Total operating expense 7.5 50% 5.8 45% Income from operations 4.9 33% 4.5 36% Income before i
Slide 18: Income Statement Summary – YTD
Income Statement Summary – YTD (in millions, except EPS) 3Q22 % of Rev 3Q21 % of Rev Revenue $42.2 100% $36.6 100% Revenue Growth 15% 14% Gross profit 34.0 81% 28.8 79% R&D 2.4 6% 2.8 8% SG&A 17.4 41% 15.0 41% Total operating expense 19.8 47% 17.7 48% Income from operations 14.2 34% 11.1 30% Income
Slide 19: Balance Sheet Summary
Balance Sheet Summary (in millions) May 31, 2022 August 31, 2021 Cash and short-term investments $122.5 $123.6 Total current assets 144.9 139.3 Total assets 186.2 180.0 Current liabilities 5.9 11.6 Long-term liabilities 2.7 2.6 Total liabilities 8.7 14.2 Shareholders’ equity 177.6 165.8 Total liabil
Slide 20: Conclusion
Conclusion SECURE LEADERSHIP POSITION IN BIOSIMULATION MARKET • Industry adoption of model informed drug development tools and techniques continues to expand • Scientific credibility with academia and regulatory agencies • Software business with accelerated revenue growth rates and expanded product