Slide 1: Earnings Call – Q1 - FY24
Earnings Call – Q1 - FY24 January 3, 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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,
Slide 3: First Quarter Highlights
First Quarter Highlights CURRENT PERIOD $14.5M Revenue $0.10 Diluted EPS 23% Adj. EBITDA as % $18.9M Backlog of Revenue Prior Year Comparison (1Q23) $12.0M $0.06 25% $15.8M Revenue Diluted EPS Adjusted Backlog EBITDA as % of Revenue 3
Slide 4: First Quarter Software Highlights
First Quarter Software Highlights General ▪ Overall software revenue growth of 25% ▪ Renewal rate improvement compared to last year ▪ Active and strong pipeline GastroPlus® (Physiologically Based Pharmacokinetics) ▪ 6 new customers +27% ▪ 9 upsells to existing customers Q1 Revenue Growth ▪ Continued
Slide 5: First Quarter Services Highlights
First Quarter Services Highlights General ▪ Overall services revenue growth of 17% ▪ Total backlog $18.9M – projects to be performed within one year also increased ▪ Good momentum out of fiscal 2023 continues ▪ Choppy project flow due to data and other client delays Clinical Pharmacology & Pharmacom
Slide 6: Financial Results
Financial Results
Slide 7: Revenue - Q1 FY24
Revenue - Q1 FY24 (in millions) 1Q24 Mix 1Q23 Mix +21% +25% +17% Total Revenue Software Revenue Services Revenue 7
Slide 8: Revenue - Trailing Twelve Months (TTM)
Revenue - Trailing Twelve Months (TTM) (in millions) 1Q24 Mix 1Q23 Mix 16% 21% 9% Total Revenue Software Revenue Services Revenue 8
Slide 9: Gross Margin Trends - Q1 FY24
Gross Margin Trends - Q1 FY24 9
Slide 10: Gross Margin Trends - TTM
Gross Margin Trends - TTM 39% 90% 90% e ° ° 80% 77% — 78% = —. 66% | a 1Q22 1Q23 1Q24 —@ Software -@®=Services =@= Total 10
Slide 11: Software Revenue by Business Unit
Software Revenue by Business Unit 1Q24 TTM PBPK PBPK CPP CPP Cheminformatics Cheminformatics QSP QSP Software Business Unit as % of Software Revenue 11
Slide 12: Software Performance Metrics - Q1 FY24
Software Performance Metrics - Q1 FY24 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 12
Slide 13: Software Performance Metrics - TTM
Software Performance Metrics - TTM Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 13
Slide 14: Services Revenue by Business Unit
Services Revenue by Business Unit Q1 FY24 TTM CPP CPP QSP QSP PBPK PBPK REG REG Services Business Unit as % of Services Revenue 14
Slide 15: Services Performance Metrics
Services Performance Metrics Total Projects Backlog 15
Slide 16: Income Statement Summary - Q1 FY24
Income Statement Summary - Q1 FY24 (in millions, except Diluted EPS) 1Q24 % of Rev 1Q23 % of Rev Revenue $14.5 100% $12.0 100% Revenue growth 21% (4)% Gross profit 9.8 68% 9.3 78% R&D 1.2 8% 1.2 10% S&M 2.0 14% 1.5 12% G&A 5.7 39% 5.8 48% Total operating exp 8.9 61% 8.4 70% Income from operations 1.
Slide 17: Balance Sheet Summary
Balance Sheet Summary (in millions) November 30, 2023 August 31, 2023 Cash and short-term investments $113.9 $115.5 Total current assets 129.7 130.4 Total assets $185.8 $186.1 Current liabilities 8.6 12.0 Long-term liabilities 4.8 4.1 Total liabilities 13.4 16.1 Shareholders’ equity 172.3 170.0 Tota
Slide 18: Fiscal 2024 Guidance
Fiscal 2024 Guidance Guidance Total Revenue $66M to $69M Total Revenue Growth 10% to 15% Software Revenue Mix 55% to 60% Services Revenue Mix 40% to 45% Diluted EPS $0.66 to $0.68 18
Slide 19: Conclusion
Conclusion CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET Delivering on our Enhancing our client facing commitment to scientific Challenges being addressed Focus on Capital Allocation capabilities leadership • Internal R&D investment • Appointed new CRO to • Software renewal timing • ASR prog
Slide 20: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation* (in millions) FY 2022 FY 2023 FY 2024 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY FY Net Income $3.0 $4.4 $4.1 $1.0 $1.2 $4.2 $4.0 $0.5 $1.9 $12.5 $10.0 Excluding: Interest income and expense, net (0.1) (0.1) (0.1) (0.4) (0.8) (1.0) (1.1) (1.3) (1.3) (0.7) (4.1)
Slide 21: Simulations Plus
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