Slide 1: First Quarter 2024 Financial Results
First Quarter 2024 Financial Results May 7, 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) 1Q 2024 FINANCIALS Software 20+ Year ~2,400 $96.7M Revenue • Biosimulation Customers across History of innovation • Regulatory & compliance 66 countries 7% GAAP YoY Growth • Market access 6% CC YoY Growth(4) ~1,400 Employees 10+ Year T
Slide 4: Financial Highlights First Quarter 2024
Financial Highlights First Quarter 2024 Adjusted Revenue Net Income Adj. EBITDA(3) Diluted EPS Diluted EPS(4) $96.7M ($4.7M) $29.1M ($0.03) $0.10 7% GAAP YoY change PY $1.4M(2) (10%)YoY PY $0.01 PY $0.12 6% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant curr
Slide 5: 1Q 2024 Results - Revenue
1Q 2024 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 90.3 96.7 90.3 96.1 57.0 57.0 57.3 57.3 33.0 39.3 33.0 39.0 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Software Services Software Services Certara reported 6% constant currency(1) revenue growth (1) See Appendi
Slide 6: 1Q and TTM 2023 Results - Net Bookings
1Q and TTM 2023 Results - Net Bookings 1Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 413.2 395.4 112.7 105.8 82.1 287.2 256.0 72.7 30.6 33.1 125.9 139.5 1Q 2023 1Q 2024 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlated w
Slide 7: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) 1.20x 1.13x 1.14x 1.14x 1.10x 413.1 398.4 403.8 402.3 395.4 344.4 352.1 353.0 354.3 360.3 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 TTM Bookings TTM Revenue Book to Bill Book to bill provides forward visibility into revenue growth © Copyright 2024 Certara, L.P.
Slide 8: Historical Software Net Retention Rate (NRR)
Historical Software Net Retention Rate (NRR) 115% 114.1% 111.3% 110.5% 109.9% 110% 108.6% 107.4% 105% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Net Retention Rate NRR provides insight into growth and retention among existing software customers © Copyright 2024 Certara, L.P. All rights reserved
Slide 9: 1Q 2024 Results – Adjusted EBITDA
1Q 2024 Results – Adjusted EBITDA Adjusted EBITDA(1) 32.3 29.1 1Q 2023 1Q 2024 36% Adjusted EBITDA Margin(1) 30% (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA © Copyright 2024 Certara, L.P. All rights reserved.
Slide 10: 1Q24 Business Updates
1Q24 Business Updates Key Takeaways from First Quarter Performance: Revenue $90.5M Business Momentum Continues into 2024 Expanding the Breadth of our Software Platform Growth Investments Progressing on Plan • Strong software performance driven by • Introduction of the Certara Cloud • Added to R&D, S
Slide 11: 1Q24 Bookings YoY Trends – Pharma/Biotech Customers
1Q24 Bookings YoY Trends – Pharma/Biotech Customers (1) Tier Software Bookings Services Bookings I Declined compared to historical company averages, mainly due to timing of renewals Declined as expected due to difficult PY comparison, timing of certain deals II Strongest area of growth in software b
Slide 12: 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 13: Appendix
Appendix © Copyright 2024 Certara, L.P. All rights reserved.
Slide 14: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA THREE MONTHS ENDED MARCH 31, 2024 2023 ( in thousands) Net income (loss)(a) $ (4,683) $ 1,358 Interest expense(a) 5,751 5,475 Interest income(a) (2,574) (1,354) (Benefit from) Provision for income taxes(a) (751) 1,111 Depreciation and amortizati
Slide 15: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) THREE MONTHS ENDED MARCH 31, 2024 2023 ( in thousands) Net income (loss) (a) $ (4,683) $ 1,358 Currency (gain) loss(a) 876 894 Equity-based compensation expense(b) 9,073 8,543 Amortization of acquisition-related intangible assets(c) 1
Slide 16: 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, 2024 2023 (In thousands except share and per share data) Diluted earnings per share(a) $ (0.03) $ 0.01 Currency (gain) loss(a) 0.01 0.01 Equity-based compensation expense(b) 0.05 0.04 Amo
Slide 17: 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 2024 2024 2023 $ % $ % Actual CC Actual Actual Actual CC Impact (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Software $ 39,307 $ 39,0
Slide 18: 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 19: Accelerating Medicines, Together
Accelerating Medicines, Together © Copyright 2024 Certara, L.P. All rights reserved.