Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results August 9, 2023 © Copyright 2023 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) 2Q23 FINANCIALS Software 20+ Year 2,300+ $90.5M Revenue • Biosimulation Customers across History of innovation • Regulatory & compliance 70 countries 9% GAAP YoY Growth • Market access 10% CC YoY Growth(4) 1,200+ Employees 10+ Year Tec
Slide 4: Financial Highlights
Financial Highlights Second Quarter 2023 Adjusted Revenue Net Income Adj. EBITDA(2) Diluted EPS Diluted EPS(3) $90.5M $4.7M $32.4M $0.03 $0.12 9% GAAP YoY change PY ($0.6M) PY $28.0M PY $0.00 PY $0.09 10% CC YoY change (1) (1) See Appendix for reconciliation of GAAP revenue to constant currency (non
Slide 5: 2Q 2023 Results - Revenue
2Q 2023 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 90.5 90.6 82.8 82.8 56.7 56.8 54.0 54.0 28.7 33.7 28.7 33.9 2Q 2022 2Q 2023 2Q 2022 2Q 2023 Software Services Software Services Certara reported 10% constant currency(1) revenue growth (1) See Append
Slide 6: 2Q and TTM Results - Net Bookings
2Q and TTM Results - Net Bookings 2Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 100.2 393.5 398.8 85.9 69.7 280.4 267.5 50.2 30.5 35.7 131.3 113.1 2Q 2022 2Q 2023 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlated with re
Slide 7: Historical TTM Book to Bill
Historical TTM Book to Bill 1.25x 1.24x 1.22x ($Millions) 1.20x 1.13x 393.5 401.0 408.9 413.1 398.4 335.6 344.4 352.1 313.6 324.4 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 TTM Bookings TTM Revenue Book to Bill Book to bill provides forward visibility into revenue growth © Copyright 2023 Certara, L.P.
Slide 8: 2Q 2023 Results – Adjusted EBITDA
2Q 2023 Results – Adjusted EBITDA Adjusted EBITDA(1) 32.4 28.0 2Q 2022 2Q 2023 34% Adjusted EBITDA Margin(1) 36% (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA © Copyright 2023 Certara, L.P. All rights reserved.
Slide 9: 2Q23 Business Updates
2Q23 Business Updates Providing Context to Second Quarter Performance: Revenue $90.5M Navigating a Challenging Environment Near-Term Strategic Changes Updating Full Year Outlook • Reorganizing commercial team under newly promoted CCO to optimize go to • Altered 2023 outlook to account for • Revenue
Slide 10: 2Q23 Bookings Trends – Pharma/Biotech Customers
2Q23 Bookings Trends – Pharma/Biotech Customers (1) Tier Software Bookings Services Bookings I Growth in-line with historical averages, driven by high renewal rates and expanded user base Declined due to the timing of customer projects and less urgent R&D spending II Strongest area of growth in soft
Slide 11: 2023 Outlook
2023 Outlook Lowered full-year 2023 guidance: Key Assumptions 2023 Guidance • Reported revenue growth of Adjusted Adjusted 3-7% Revenue EBITDA(1) Diluted EPS(1) 35-36% EBITDA Margin $345-$360M $120-$128M $0.44-$0.48 • • Fully diluted shares expected to be in the range of 159- 162M • Tax rate expecte
Slide 12: Appendix
Appendix © Copyright 2023 Certara, L.P. All rights reserved.
Slide 13: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED SIX MONTHS ENDED 2023 2022 2023 2022 ( in thousands) Net income(a) $ 4,706 $ (589) $ 6,064 $ 1,621 Interest expense(a) 5,668 3,879 11,143 7,107 Interest income(a) (2,210) (14) (3,564) (25) Provision for income taxes(a) 3,675 3
Slide 14: 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 2023 2022 2023 2022 (in thousands) Net income (a) $ 4,706 $ (589) $ 6,064 $ 1,621 Currency (gain) loss(a) 1,120 (2,558) 2,014 (3,263) Equity-based compensation expense(b) 3,610 9,501 12,153 17,014 A
Slide 15: 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 2023 2022 2023 2022 Diluted earnings per share(a) $ 0.03 $ — $ 0.04 $ 0.01 Currency (gain) loss(a) 0.01 (0.02) 0.01 (0.02) Equity-based compensation expense(b) 0.02 0.06 0.08 0.11
Slide 16: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED 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 $ 33,723 $ 33,850 $ 28,72
Slide 17: 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
Slide 18: Accelerating Medicines, Together
Accelerating Medicines, Together © Copyright 2023 Certara, L.P. All rights reserved.