Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q4 FY2023 Earnings Presentation
23 slides from Simulations Plus's earnings presentation, Oct 25, 2023
Slide 1: Earnings Call – Q4 - FY23
Earnings Call – Q4 - FY23 October 25, 2023 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, b
Slide 3: Fourth Quarter Highlights
Fourth Quarter Highlights $16M $0.03 $0.18 31% $20M Revenue Diluted EPS Adjusted Adj. EBITDA as % Backlog Diluted EPS of Revenue ▪ Strong revenue and earnings results for fiscal 2023 ▪ Conditions in our market remain similar to what we have seen past several quarters ◦ Small biotech slowdown ◦ Large
Slide 4: Fourth Quarter Software Highlights
Fourth Quarter Software Highlights General ▪ Overall software revenue growth of 59% ▪ Continued market spending cautiousness ▪ Renewal harmonization essentially complete - results as expected ▪ Renewal rate negatively impacted by several non-renewals due to M&A activity in client base ▪ Good yield o
Slide 5: Fourth Quarter Services Highlights
Fourth Quarter Services Highlights General ▪ Overall services revenue growth 8% ▪ Total backlog $20M – projects to be performed within 12 months decreased from 80% to 79% ▪ Successful recruiting quarter (2 new hires, 12 YTD) ▪ 201 total projects worked on during the quarter PKPD -1% ▪ Q4 saw higher
Slide 6: Capital Allocation Strategy Update
Capital Allocation Strategy Update ▪ Product R&D ▪ Acquisitions ▪ Employee Recruiting and ▪ Strategic investments INTERNAL CORPORATE Retention - 27 new hires for INVESTMENT DEVELOPMENT and partnerships FY23, including 13 from ▪ Immunetrics acquisition Immunetrics consummated in Q4 ▪ Enterprise Techn
Slide 7: 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 7
Slide 8: Financial Results
Financial Results
Slide 9: Revenue - Q4
Revenue - Q4 (in millions) 4Q23 Mix Software Services $15.6 40% $11.7 $6.3 60% $9.8 $5.8 $4.5 Software Services $9.3 4Q22 Mix $5.3 $5.9 4Q21 4Q22 4Q23 50% 50% +33% +59% +8% Total Revenue Software Revenue Services Revenue Software Services 9
Slide 10: Revenue - Fiscal 2023
Revenue - Fiscal 2023 (in millions) FY23 Mix Software Services $59.6 $53.9 39% $46.5 $23.1 61% $21.3 $18.8 Software Services $32.6 $36.5 FY22 Mix $27.7 39% FY21 FY22 FY23 61% +11% +12% +8% Total Revenue Software Revenue Services Revenue Software Services 10
Slide 11: Gross Margin Trends - Q4
Gross Margin Trends - Q4 89% 85% 86% 78% 77% 72% 68% 62% 56% 4Q21 4Q22 4Q23 Software Services Total 11
Slide 12: Gross Margin Trends - Fiscal 2023
Gross Margin Trends - Fiscal 2023 91% 90% 88% 80% 80% 77% 65% 63% 61% FY21 FY22 FY23 Software Services Total 12
Slide 13: Software Revenue by Product
Software Revenue by Product Q4 FY23 FY23 GastroPlus® 54% GastroPlus® 54% MonolixSuite® 19% MonolixSuite® 15% 21% 19% ADMET Predictor® ADMET Predictor® Other 10% Other 8% Software Product as % of Software Revenue 13
Slide 14: Software Performance Metrics - Q4
Software Performance Metrics - Q4 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 97% $88 92% $65 $65 85% 85% 83% 80% 4Q21 4Q22 4Q23 4Q21 4Q22 4Q23 Accounts Fees 14
Slide 15: Software Performance Metrics - Fiscal 2023
Software Performance Metrics - Fiscal 2023 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) $126 96% 95% $121 $110 92% 88% 87% 82% FY21 FY22 FY23 4Q21 4Q22 4Q23 Accounts Fees 15
Slide 16: Services Revenue by Type
Services Revenue by Type Q4 FY23 FY23 PKPD 39% PKPD 45% QSP/QST 37% QSP/QST 25% PBPK 20% PBPK 23% Other 4% Other 7% Services Type as % of Services Revenue 16
Slide 17: Services Performance Metrics
Services Performance Metrics Total Projects 416 85 322 Backlog 299 42 $20 62 145 $16 114 81 $13 54 24 37 132 129 132 FY21 FY22 FY23 FY21 FY22 FY23 PKPD QSP/QST PBPK Other 17
Slide 18: Income Statement Summary - Q4
Income Statement Summary - Q4 (in millions, except Diluted EPS and Adjusted Diluted EPS) 4Q23 % of Rev 4Q22 % of Rev Revenue $15.6 100% $11.7 100% Revenue growth 33% 19% Gross profit 12.3 78% 9.1 77% R&D 1.1 7% 0.8 7% SG&A 11.5 73% 7.6 65% Total operating exp 12.5 80% 8.4 71% Income from operations
Slide 19: Income Statement Summary - Fiscal 2023
Income Statement Summary - Fiscal 2023 (in millions, except Diluted EPS and Adjusted Diluted EPS) FY23 % of Rev FY22 % of Rev Revenue $59.6 100% $53.9 100% Revenue growth 11% 16% Gross profit 47.9 80% 43.1 80% R&D 4.5 8% 3.2 6% SG&A 34.7 58% 25.0 46% Total operating exp 39.2 66% 28.2 52% Income from
Slide 20: Balance Sheet Summary
Balance Sheet Summary (in millions) August 31, 2023 August 31, 2022 Cash and short-term investments $115.5 $128.2 Total current assets 130.4 146.8 Total assets $186.1 $188.4 Current liabilities 12.0 7.7 Long-term liabilities 4.1 2.4 Total liabilities 16.1 10.1 Shareholders’ equity 170.0 178.2 Total
Slide 21: 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 • Growth and maturity of • Software renewal timing • ASR pr
Slide 22: Adjusted EPS Non-GAAP Reconciliation
Adjusted EPS Non-GAAP Reconciliation* (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income (GAAP) $3.0 $4.4 $4.1 $1.0 $1.2 $4.2 $4.0 $0.5 $12.5 $10.0 Excluding: Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 0.9 0.3 1.7 I
Slide 23: Simulations Plus
iS|+ SimulationsPlus