Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q1 FY2023 Earnings Presentation
24 slides from Simulations Plus's earnings presentation, Mar 7, 2023
Slide 1: Investor Presentation Q1 FY23 Update
Investor Presentation NASDAQ: SLP Q1 FY23 Update
Slide 2: Safe Harbor
NASDAQ: SLP2 With the exception of historical information, the matters discussed in this presentation are forward-looking statements that involve a number of risks and uncertainties. The actual results of the Company could differ significantly from those statements. Factors that could cause or contr
Slide 3: About Us
NASDAQ: SLP3 About Us Leading provider of modeling and simulation software and services used by major pharmaceutical, biotech, and regulatory agencies worldwide to make better model-informed data-driven decisions (MIDD). >150 Employees >10 yrs Profit/rev growth >250 Clients >90% Client Retention >70
Slide 4: Investment Highlights
NASDAQ: SLP4 Investment Highlights For Drug discovery, development, and regulatory approval process Leader in software and services + Share gain opportunity in large and growing market Low market penetration With strong operating leverage Double-digit revenue growth 01 02 03 Accretive M&A Strategy A
Slide 5: Our Markets
NASDAQ: SLP5 Our Markets 12-15% Annual Growth (est.) $2B+⁴ Biosimulation TAM (est.) $176B³ Annual Pharma R&D Spend Acceptance & increasing adoption of MIDD technology by industry & regulators. Key Drivers Pharma spend rates continue to grow with large allocation towards Biosimulation Biosimulation g
Slide 6: Drug Development Challenges
NASDAQ: SLP6 Drug Development Challenges Avg. cost of $2B and 10+ years to bring a drug to market 1 How is it administered? What are the risks? What is the desired effect? How candidates? How does the drug move through the body? How is it supposed to work? Buying Moves Information Data New Technolog
Slide 7: Our Value Proposition
NASDAQ: SLP7 Our Value Proposition trial & error with in silico decision making We create value for our customers by accelerating & reducing the cost of R&D through innovative, science-based software & consulting solutions that optimize treatment options and improve patient lives. Streamlines proces
Slide 8: Our Value Proposition
Our Value Proposition We create value for our customers by accelerating & reducing the cost of R&D through innovative, science-based software & consulting solutions that optimize treatment options and improve patient lives. OutcomesPatient Efficacy Patient Safety Commercial Success Regulatory Approv
Slide 9: How We Help: Software and Services
How We Help Software and Services Software Services Most comprehensive & widely recognized tools for MIDD Ongoing development & reinvestment incorporates latest science & ensures seamless Operational efficiencies that lead to accurate/timely decision making & regulatory reporting Therapeutic, modeli
Slide 10: Solutions Span Drug Development Process
Solutions Span Drug Development Process Guiding the path between M&S and pharma R&D
Slide 11: PBPK Software Solutions and AI Data Mining Services
PBPK Software Solutions and AI Data Mining Services PBPK/PBBM Preclinical Regulatory Consulting
Slide 12: QSP/QST Solutions and Services
QSP/QST Solutions Services QSP Consulting QST Consulting
Slide 13: Pharmacometrics Solutions and Services
Pharmacometrics Solutions Services Pharmacometrics Clinical Pharmacology Clinical Regulatory Consulting
Slide 14: Growth Opportunities & Capital Allocation
NASDAQ: SLP14 Growth Opportunities & Capital Allocation Product Gaps, Adjacencies & Extensions Consolidate Fragmented Market Take Share Low Penetration Rates Market Growth + Regional Expansion Substantial Runway for Growth ▪ Increasing acceptance by industry & FDA ▪ Sales and Distribution Investment
Slide 15: Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) Strategic priorities that form the foundation of our sustainability framework and highlights Environment Social Human Capital Business Governance Committed to renewable energy with our Lancaster Choice Energy Smart Choice 100% renewable energy program Redu
Slide 16: Financials
Financials @B SimulationsPlus
Slide 17: Q1 FY23 Highlights
Q1 FY23 Highlights * See reconciliation at end of presentation -4% Revenue Decline -60% Diluted EPS Decline +3% Services Backlog Growth 25% Adj. EBITDA Margin*90% Software Fees Renewal Rate New software releasesContinued strong double-digit software performance Service services backlog growth Strong
Slide 18: Q1 Revenue (in millions)
NASDAQ: SLP18 Q1 Revenue (in millions) 51% Software 49% Services 59% Software 41% Services 1Q23 MIX 1Q22 MIX $6.2 $7.4 $6.1 $4.5 $5.1 $5.8 1Q21 1Q22 1Q23 Software Services $10.7 $12.4 $12.0 -17% Software Revenue Decline +17% Services Revenue Growth -4% Total Revenue Decline
Slide 19: Q1 FY23 Revenue Breakdown
NASDAQ: SLP19 50% 26% 18% 6% GastroPlus® Monolix Suite™ ADMET Predictor® Other 8% 25% 18% 49% Other PBPK QSP/QST PKPD Software Mix Services Mix Q1 FY23 Revenue Breakdown
Slide 20: Backlog and Services Performance Metrics
NASDAQ: SLP20 Q1 FY23 $12 $15 $16 1Q21 1Q22 1Q23 Backlog (in millions) Backlog Services Performance Metrics Total Projects 57 67 70 12 22 2438 55 73 14 25 26 121 169 193 1Q21 1Q22 1Q23 PKPD QSP/QST PBPK Other
Slide 21: Summary
NASDAQ: SLP21 Summary Leader in software and services for the drug discovery, development, and regulatory approval process Low market penetration + share gain opportunity in large and growing market Accretive M&A StrategyDouble-digit revenue growth with strong operating leverage
Slide 22: Thank You
Thank You Brian Siegel Managing Director Hayden IR +1-346-396-8696 brian@haydenir.com Renee Bouche Simulations Plus +1-661-723-7723 renee@simulations-plus.com Learn More! www.simulations-plus.com Investor Relations Contacts:
Slide 23: References
NASDAQ: SLP23 References 1. Biopharmaceutical Research and Development: The Process Behind New Medicines. www.PhRMA.org, January 2012, Washington, US http://phrma docs.phrma.org/sites/default/files/pdf/rd_broc hure_022307.pdf. 2. Brochure: “Biopharmaceutical Research & Development: The Process Behin
Slide 24: Adjusted EBITDA Reconciliation
NASDAQ: SLP24 Adjusted EBITDA Reconciliation FY 2022 FY 2023 2022 (in millions) Q1 Q2 Q3 Q4 Q1 FY Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 12.5 Excluding: Interest income and expense, net (0.1) (0.1) (0.1) (0.4) (0.8) (0.7) Provision for income taxes 0.8 1.1 0.7 (0.1) 0.4 2.6 Depreciation and amor