Simulations Plus, Inc. · NASDAQ:SLP

Simulations Plus — Q1 FY2022 Earnings Presentation

16 slides from Simulations Plus's earnings presentation, Jan 6, 2022

  1. Slide 1: Earnings Call – Q1 FY22

    1 | NASDAQ: SLP Earnings Call – Q1 FY22 January 6, 2022 1

  2. Slide 2: Safe Harbor Statement

    2 | NASDAQ: SLP 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, but

  3. Slide 3: First Quarter Highlights

    3 | NASDAQ: SLP First Quarter Highlights » Strong momentum to begin year » Continued Strong Software Performance » Service Business Recovery +16% Revenue Growth +25% Diluted EPS Growth +31% Backlog Growth » Bus. Dev. efforts paying off » Demonstrated Scientific leadership » New software releases » S

  4. Slide 4: First Quarter Software Highlights

    4 | NASDAQ: SLP MonolixSuite® GastroPlus® +35% Revenue Growth 5 Multi - year Licenses Signed 16 New $100k+ customers 21 Upsells » First sales through Chinese distributor » Added new distributor in Japan » Strong renewal upsells First Quarter Software Highlights +19% Revenue Growth 19 Peer reviewed j

  5. Slide 5: First Quarter Services Highlights

    5 | NASDAQ: SLP First Quarter Services Highlights PKPD » Q1 project disruptions “normal” levels » Good underlying bookings activity - full pipeline of opportunities QSP/QST » IPFsym release » Breakthrough NASH findings open significant potential development opportunities PBPK » New FDA TCAT Ρ grant

  6. Slide 6: FY22 Outlook

    6 | NASDAQ: SLP FY22 Outlook Growth Targets: 10% to 15% Total Revenue Growth 55% to 60% Software Revenue % of Total Revenue 40% to 45% Service Revenue % of Total Revenue Commentary: » Software business continues to show strong momentum. » Services business remains volatile, but long - term outlook r

  7. Slide 7: Financial Results

    7 | NASDAQ: SLP Financial Results

  8. Slide 8: Revenue – Q1 (in millions)

    8 | NASDAQ: SLP Q4 Revenue (in millions) +16% Total Revenue $4.6 $6.2 $7.4 $4.8 $4.5 $5.0 $9.4 $10.7 $12.4 1Q20 1Q21 1Q22 Software Services 58% 42% 1Q21 Mix Software Services 59% 41% 1Q22 Mix Software Services +19% Software Revenue +13% Services Revenue Revenue – Q1 (in millions)

  9. Slide 9: Total Gross Margin Trends – Q1

    9 | NASDAQ: SLP 82% 87% 90% 62% 64% 60% 72% 77% 78% 1Q20 1Q21 1Q22 Software Services Total Gross Margin Trends – Q1

  10. Slide 10: Software Revenue by Product

    10 | NASDAQ: SLP Software Revenue by Product Software Product as % of Software Revenue 54% 19% 19% 8% 1Q21 Other 54% 21% 20% 5% 1Q22 Other

  11. Slide 11: Software Performance Metrics – Q1

    11 | NASDAQ: SLP Software Performance Metrics – Q4 Avg. Revenue per Customer (in thousands) $59 $74 $71 1Q20 1Q21 1Q22 94% 87% 93% 98% 95% 96% 1Q20 1Q21 1Q22 Accounts Fees Software Performance Metrics – Q1 Commercial Customers University+ Licenses: 92 customers in 26 countries Renewal Rates

  12. Slide 12: Services Revenue by Type

    12 | NASDAQ: SLP Services Revenue by Type Services Types as % of Service Revenue 50% 25% 14% 11% PKPD QSP/QST PBPK Other YTD 1Q21 46% 29% 17% 8% PKPD QSP/QST PBPK Other 1Q22

  13. Slide 13: Services Performance Metrics

    13 | NASDAQ: SLP Services Performance Metrics $14 $12 $15 1Q20 1Q21 1Q22 Backlog (in millions) 56 58 67 27 12 22 42 41 64 15 33 125 126 186 1Q20 1Q21 1Q22 PKPD QSP/QST PBPK Other Backlog Services Performance Metrics Total Projects

  14. Slide 14: Income Statement Summary – Q1

    14 | NASDAQ: SLP Income Statement Summary – Q1 (in millions, except EPS) 1Q22 % of Rev 1Q21 % of Rev Revenue $12.4 100% $10.7 100% Revenue Growth 16% 14% Gross profit 9.7 78% 8.3 77% R&D 0.9 7% 0.8 8% SG&A 5.0 40% 4.4 41% Total operating exp 5.9 47% 5.2 49% Income from operations 3.8 31% 3.1 29% Inc

  15. Slide 15: Balance Sheet Summary

    15 | NASDAQ: SLP Balance Sheet Summary (in millions) Nov. 30, 2021 Aug. 31, 2021 Cash and short - term investments $124.3 $123.6 Total current assets 139.9 139.3 Total assets 181.0 180.0 Current liabilities 9.6 11.6 Long - term liabilities 2.9 2.6 Total liabilities 12.5 14.2 Shareholders’ equity 168

  16. Slide 16: Conclusion

    16 | NASDAQ: SLP Conclusion » 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 functionality » Services business

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