Slide 1: Fourth Quarter & Full Year 2022 Financial Results
Fourth Quarter & Full Year 2022 Financial Results March 1, 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 END-TO-END PLATFORM CUSTOMERS(3) FY22 FINANCIALS Software 20+ Year 2,300+ $335.6M Revenue • Biosimulation Customers across History of innovation 17% GAAP YoY Growth • Regulatory & compliance 70 countries 20% CC YoY Growth(4) • Market access 12% CC excl. Pinnacle 21 1,200
Slide 4: Financial Highlights Full Year 2022
Financial Highlights Full Year 2022(1) Adjusted Revenue Net Income Adj. EBITDA(2) Diluted EPS Diluted EPS(2) $335.6M $14.7M $120.2M $0.09 $0.46 17% GAAP YoY change PY ($13.3)(3) 16% YoY PY ($0.09) PY $0.34 20% CC YoY change (2) change (1) 2022 financials include contribution of Pinnacle 21 (2) See A
Slide 5: Financial Highlights Fourth Quarter 2022
Financial Highlights Fourth Quarter 2022 Adjusted Revenue Net Income Adj. EBITDA(1) Diluted EPS Diluted EPS(1) $86.6M $9.2M $31.9M $0.06 $0.16 15% GAAP YoY change PY $(9.7M)(2) 13% YoY PY ($0.06) PY $0.06 18% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constant cu
Slide 6: Full Year 2022 Results - Revenue
Full Year 2022 Results - Revenue GAAP Reported Revenue(1) Constant Currency Revenue(1)(2) ($Millions) ($Millions) 335.6 343.9 286.1 286.1 224.5 220.2 199.3 199.3 115.5 86.8 119.4 86.8 2021 2022 2021 2022 Software Services Software Services Certara reported 20% constant currency(2) revenue growth Exc
Slide 7: 4Q 2022 Results - Revenue
4Q 2022 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 86.6 89.2 75.3 75.3 57.5 58.8 49.8 49.8 25.5 29.2 25.5 30.4 4Q 2021 4Q 2022 4Q 2021 4Q 2022 Software Services Software Services Certara reported 18% constant currency(2) revenue growth (1) See Append
Slide 8: 4Q and TTM 2022 Results - Net Bookings
4Q and TTM 2022 Results - Net Bookings 4Q Reported Net Bookings TTM (Full Year) Reported Net Bookings(1) ($Millions) ($Millions) 408.9 120.4 112.5 341.7 80.9 284.1 80.2 247.2 32.3 39.5 124.8 94.5 4Q 2021 4Q 2022 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highl
Slide 9: Historical TTM Book to Bill
Historical TTM Book to Bill 1.22x 1.25x 1.24x 1.22x ($Millions) 1.19x 393.5 401.0 408.9 341.7 368.3 313.6 324.4 335.6 286.1 300.9 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 TTM Bookings TTM Revenue Book to Bill Stable book to bill provides forward visibility into revenue growth © Copyright 2023 Certara
Slide 10: 4Q and Full Year 2022 Results – Adjusted EBITDA
4Q and Full Year 2022 Results – Adjusted EBITDA 4Q Adjusted EBITDA(1) FY Adjusted EBITDA(1) ($Millions) ($Millions) 31.9 120.2 103.7 28.2 4Q 2021 4Q 2022 FY 2021 FY 2022 37% Adjusted EBITDA 37% 36% Adjusted EBITDA Margin(1) Margin(1) 36% (1) See Appendix for a reconciliation net income (loss) to adj
Slide 11: 2023 Outlook
2023 Outlook Initiated FY 2023 guidance Key Assumptions 2023 Guidance • Reported revenue growth of 10-15% Adjusted Adjusted Revenue EBITDA(1) Diluted EPS(1) • Fully diluted shares expected to be in the range of 159- $370-$385M $131-$137M $0.50-$0.55 162M • Tax rate expected to be 25- 30% This financ
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 DECEMBER 31 TWELVE MONTHS ENDED DECEMBER 31 2022 2021 2022 2021 (in thousands) Net income (loss) $ 9,174 $ (9,699) $ 14,731 $ (13,266) Interest expense(a) 5,445 3,288 17,773 16,837 Interest income(a) (947) (16) (1,294) (271) (
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 DECEMBER 31 TWELVE MONTHS ENDED DECEMBER 31 2022 2021 2022 2021 (in thousands) Net income (loss) $ 9,174 $ (9,699) $ 14,731 $ (13,266) Currency (gain) loss(a) 2,473 14 (3,166) (175) Equity-based compensation expense
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 DECEMBER 31 TWELVE MONTHS ENDED DECEMBER 31 2022 2021 2022 2021 (in thousands except share and per share data) Diluted earnings per share(a) $ 0.06 $ (0.06) $ 0.09 $ (0.09) Currency (gain) loss(a)
Slide 16: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED DECEMBER 31, CHANGE 2022 2022 2021 $ % $ % Actual CC Actual Actual Actual CC Impact Adjust for CC (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands) Revenue Software $ 29,156 $ 30,38
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.