Slide 1: Fourth Quarter and Full Year 2021 Financial Results
accelerating medicines Fourth Quarter and Full Year 2021 Financial Results March 1, 2022
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) 2021 FINANCIALS Software 20+ Year • Biosimulation 2,000+ $286.1M Revenue History of innovation Customers across • Regulatory & compliance 62 countries 17% YoY Growth • Market access (15% excl. Pinnacle 21) 1,100+ Employees(1) 10+ Year Tec
Slide 4: Financial Highlights Full Year 2021
Financial Highlights Full Year 2021 Adjusted Revenue Net Loss Adj. EBITDA Diluted EPS Diluted EPS $286.1M ($13.3M) $103.7M ($0.09) $0.17 YoY Change 17% PY ($49.4M) 18% PY ($0.37) PY $0.15 See Appendix for reconciliation tables Financials include fourth quarter contribution of Pinnacle 21 4
Slide 5: Financial Highlights Fourth Quarter 2021
Financial Highlights Fourth Quarter 2021 Adjusted Revenue Net Loss Adj. EBITDA Diluted EPS Diluted EPS $75.3M ($9.7M) $28.2M ($0.06) $0.01 YoY Change 17% PY ($54.4M) 27% PY ($0.40) PY $0.07 See Appendix for reconciliation tables Financials include fourth quarter contribution of Pinnacle 21 5
Slide 6: 4Q and FY 2021 Results - Revenue
4Q and FY 2021 Results - Revenue 4Q GAAP Reported Revenue(1) FY GAAP Reported Revenue(1) ($Millions) ($Millions) 75.3 286.1 64.6 243.5 49.8 199.3 47.1 170.1 25.5 73.5 86.8 17.5 4Q 2020 4Q 2021 2020 2021 Software Services Software Services Strong revenue growth in 2021 was impacted by the Omicron var
Slide 7: 4Q and FY 2021 Results - Net Bookings
4Q and FY 2021 Results - Net Bookings 4Q Reported Net Bookings(1) TTM Reported Net Bookings(1) ($Millions) ($Millions) 112.5 341.7 288.3 83.3 80.2 247.2 215.1 63.3 32.3 94.5 21.0 73.2 4Q 2020 4Q 2021 PY TTM TTM Software Services Software Services Trailing twelve months bookings are highly correlated
Slide 8: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) 1.18x 1.20x 1.20x 1.19x 1.14x 341.7 288.3 303.0 314.1 313.6 261.7 275.3 286.1 243.5 252.7 (1) 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 TTM Bookings TTM Revenue Book to Bill Stable book to bill provides forward visibility into revenue growth (1) Includes Pinnacl
Slide 9: Annual Bookings to Forward Annual Revenue
Annual Bookings to Forward Annual Revenue ($Millions) 341.7(3) 350 – 360(4) 8.5 28 -31 286.1(3) 6.1 322 – 333.2 329 (2) 288.3 280.0 (1) 259.5 243.5 227.5 208.5 2018 2019 2019 2020 2020 2021 2021 2022 Bookings Revenue Bookings Revenue Bookings Revenue Bookings Revenue Guidance Contribution from Pinna
Slide 10: 2022 Outlook
2022 Outlook Key Assumptions Certara Updates 2022 Guidance 2022 Guidance • Revenue growth excluding Pinnacle 21 expected to be 15-18% Adjusted Adjusted Revenue EBITDA(1) Diluted EPS(1)(2) • Fully diluted shares $350-$360M $127-$131M $0.48-$0.53 expected to be in the range of 156-159M • GAAP tax rate
Slide 11: Appendix
CERTARA” Appendix
Slide 12: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended December 31, Year Ended December 31, (in thousands) 2021 2020 2021 2020 Net loss $ (9,699) $ (54,447) $ (13,266) $ (49,397) Interest expense(a) 3,288 5,486 16,837 25,296 Interest income(a) (16) (8) (271) (44) (Benefit from) pr
Slide 13: 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, Year Ended December 31, (in thousands) 2021 2020 2021 2020 Net loss(a) $ (9,699) $ (54,447) $ (13,266) $ (49,397) Currency gain (loss) (a) 14 905 (175) 715 Equity-based compensation expense(b) 8,637 62,
Slide 14: 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, Year Ended December 31, 2021 2020 2021 2020 Diluted earnings per share $ (0.06) $ (0.40) $ (0.09) $ (0.37) Currency (gain) loss(a) — 0.01 — 0.01 Equity-based compensation expense(b) 0.
Slide 15: 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