Slide 1: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results May 5, 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
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 2,400+ 1540+ 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: Potential New Medicines: 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 First Quarter 2025 REVENUE NET INCOME ADJ. EBITDA(2) DILUTED EPS ADJUSTED DILUTED EPS(3) $106.0M $4.7M $34.8M $0.03 $0.14 10% GAAP YoY change PY ($4.7M) 20% YoY PY ($0.03) PY $0.10 10% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant curre
Slide 8: 1Q 2025 Results - Revenue
1Q 2025 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 106.0 106.3 96.7 96.7 59.6 59.7 57.3 57.3 39.3 46.4 39.3 46.6 1Q 2024 1Q 2025 1Q 2024 1Q 2025 Software Services Software Services Certara reported 10% constant currency(1) revenue growth 8 (1) See Ap
Slide 9: 1Q 2025 and TTM Results - Net Bookings
1Q 2025 and TTM Results - Net Bookings 1Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 118.2 457.7 105.8 395.4 77.4 280.4 72.7 255.9 40.8 139.6 177.3 33.1 1Q 2024 1Q 2025 1Q 2024 1Q 2025 Software Services Software Services Trailing twelve months bookings are highly correla
Slide 10: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) 1.16x 1.16x 1.10x 1.12x 1.13x 445.3 457.7 395.4 408.4 419.7 394.5 360.3 363.6 372.8 385.1 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 TTM Bookings TTM Revenue Book to Bill Book to bill provides forward visibility into revenue growth 10
Slide 11: Historical Software Net Retention Rate (NRR)
Historical Software Net Retention Rate (NRR)(1) 114.1% 111.3% 110.5% 109.9% 108.0% 108.6% 107.6% 107.4% 105.5% 102.4% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q25 Series1 NRR(1) provides insight into growth and retention among existing software customers (1) Our net r
Slide 12: 1Q 2025 Results – Adjusted EBITDA
1Q 2025 Results – Adjusted EBITDA Adjusted EBITDA(1) Adjusted EBITDA 30% 28% 35% 33% 33% Margin(1) 33.1 33.5 34.8 29.1 26.3 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 1Q25 Adjusted EBITDA grew 20% vs. the prior year period 12 (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA
Slide 13: 1Q 2025 Results – Reconciliation of Revenue & Bookings Growth
1Q 2025 Results – Reconciliation of Revenue & Bookings Growth 1Q 2025 Revenue 1Q 2025 Bookings Item Growth Contribution Item Growth Contribution Organic Software(1) +4% Organic Software(1) +9% + Chemaxon ~1410 bps + Chemaxon +1340 bps Reported Software +18% Reported Software +23% Organic Services(1)
Slide 14: 1Q25 Business Updates
1Q25 Business Updates Key Takeaways from First Quarter Performance: Strong First Quarter Evolving Opportunity for Investing in the Biosimulation Performance Certara in Preclinical Market Opportunity • Solid performance across the portfolio • FDA plan to phase out animal testing • Certara remains foc
Slide 15: 1Q25 Bookings y/y Trends – Pharma/Biotech Customers
1Q25 Bookings y/y Trends – Pharma/Biotech Customers Tier1 Software Bookings | +23% y/y Services Bookings | +7% y/y I Strongest area of y/y growth driven by expansion & upsell within existing customers Softness due to cautious customer spending, with strength in regulatory II Declined y/y due to timi
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 18 18
Slide 19: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) 19 19
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 MARCH 31, 2025 2024 (In thousands except share and per share data) Diluted earnings per share(a) $ 0.03 $ (0.03) Currency (gain) loss(a) — 0.01 Equity-based compensation expense(b) 0.04 0.05 Amorti
Slide 21: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED MARCH 31, Change 2025 2024 2024 $ % $ % Actual CC Actual Actual Actual CC Impact (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Software $ 46,369 $ 46,6
Slide 22: 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 compensation s
Slide 23: Accelerating Medicines, Together
Accelerating Medicines, Together