Slide 1: Earnings Call – Q3 FY24
1 Earnings Call – Q3 - FY24 July 2, 2024
Slide 2: Safe Harbor Statement
Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but there can be no assurances that expected
Slide 3: Third Quarter Highlights
Third Quarter Highlights $0.15 Diluted EPS $18.5M Revenue 31% Adj. EBITDA as % of Revenue $19.6M Backlog 3 CURRENT PERIOD Prior Year Comparison (3Q23) $16.2M Revenue $0.20 Diluted EPS 40% Adj. EBITDA as % of Revenue $15.7M Backlog $0.19 Adj. Diluted EPS $0.21 Adj. Diluted EPS
Slide 4: Third Quarter Software Highlights
▪ Overall software revenue growth of 12% ▪ Good renewal rate, upsell and new logo activity ▪ Active and strong pipeline Third Quarter Software Highlights +13% +7% ▪ 14 new customers ▪ 8 upsells to existing customers ▪ 15 new customers ▪ 10 upsells to existing customers +15% Q3 Revenue Growth Q3 Reve
Slide 5: Third Quarter Services Highlights
▪ Overall services revenue growth of 18% ▪ Total backlog $19.6M – strong as we enter fourth quarter of fiscal 2024 ▪ Good momentum into fourth fiscal quarter of 2024 Third Quarter Services Highlights +49% +27% ▪ Solid performance despite impact of volatility Q3 Revenue Growth Q3 Revenue Growth Gener
Slide 6: Financial Results
Financial Results
Slide 7: Revenue - Q3 FY24
64% 36% Software Services 65% 35% Software Services Revenue - Q3 FY24 (in millions) Software RevenueTotal Revenue Services Revenue +14% +12% +18% 3Q24 Mix 3Q23 Mix 7 $9.6 $10.6 $11.9 $5.3 $5.6 $6.6 $15.0 $16.2 $18.5 Software Services 3Q22 3Q23 3Q24
Slide 8: Revenue - YTD
61% 39% Software Services 62% 38% Software Services Revenue - YTD (in millions) Software RevenueTotal Revenue Services Revenue +17% +14% +21% FY24 Mix FY23 Mix 8 $26.8 $27.2 $31.1 $15.4 $16.8 $20.2 $42.2 $43.9 $51.3 Software Services FY22 FY23 FY24
Slide 9: Revenue - Trailing Twelve Months
60% 40% Software Services 59% 41% Software Services Revenue - Trailing Twelve Months (TTM) (in millions) Software RevenueTotal Revenue Services Revenue +20% +22% +17% 3Q24 Mix 3Q23 Mix 9 $32.1 $33.1 $40.4 $19.9 $22.6 $26.5$52.0 $55.7 $67.0Software Services 3Q22 3Q23 3Q24
Slide 10: Gross Margin Trends - Q3 FY24
Gross Margin Trends - Q3 FY24 10 92% 91% 88% 66% 63% 41% 83% 82% 71% Software Services Total 3Q22 3Q23 3Q24 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expen
Slide 11: Gross Margin Trends - YTD
Gross Margin Trends - YTD 11 92% 90% 88% 62% 66% 44% 81% 81% 71% Software Services Total FY22 FY23 FY24 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense.
Slide 12: Gross Margin Trends - TTM
Gross Margin Trends - TTM 12 91% 90% 88% 60% 67% 48% 79% 80% 73% Software Services Total 3Q22 3Q23 3Q24 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense.
Slide 13: Software Revenue by Business Unit
20% 56% 6% 18% Software Revenue by Business Unit 13 Software Business Unit as % of Software Revenue 3Q24 18% 54% 7% 21% CHEM PBPK QSP CPP YTD 19% 54% 7% 20% TTM
Slide 14: Software Performance Metrics - Q3 FY24
Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q3 FY24 Commercial Customers Renewal Rates 14 $95 $97 $97 3Q22 3Q23 3Q24 87% 87% 86% 92% 96% 93% Accounts Fees 3Q22 3Q23 3Q24
Slide 15: Software Performance Metrics - TTM
Avg. Revenue per Customer (in thousands) Software Performance Metrics - TTM Commercial Customers Renewal Rates 15 $82 $86 $95 3Q22 3Q23 3Q24 86% 83% 84% 93% 94% 92% Accounts Fees 3Q22 3Q23 3Q24
Slide 16: Services Revenue by Business Unit
19% 29% 48% 4% Services Revenue by Business Unit 16 Services Business Unit as % of Services Revenue 3Q24 21% 29% 46% 4% PBPK QSP CPP REG YTD 21% 31% 44% 4% TTM
Slide 17: Services Performance Metrics
$17.0 $15.7 $19.6 3Q22 3Q23 3Q24 83 67 74 21 23 22 76 76 72 16 46 13 196 212 181 PBPK QSP CPP REG 3Q22 3Q23 3Q24 Services Performance Metrics Total Projects Backlog (in millions) 17
Slide 18: Income Statement Summary - Q3 FY24
Income Statement Summary - Q3 FY24 18 (in millions, except Diluted EPS and Adjusted Diluted EPS) 3Q24 % of Rev 3Q23 % of Rev Revenue $18.5 100% $16.2 100% Revenue growth 14% 9% Gross profit 13.3 71% 13.3 82% R&D 1.3 7% 0.9 6% S&M 2.4 13% 1.7 10% G&A 7.7 41% 6.5 40% Total operating exp 11.4 61% 9.2 5
Slide 19: Income Statement Summary - YTD
Income Statement Summary - YTD 19 3Q24 % of Rev 3Q23 % of Rev Revenue $51.3 100% $43.9 100% Revenue growth 17% 4% Gross profit 36.3 71% 35.7 81% R&D 3.8 7% 3.4 8% S&M 6.3 12% 4.9 11% G&A 18.9 37% 18.4 42% Total operating exp 29.0 57% 26.7 61% Income from operations 7.3 14% 9.0 20% Income before inco
Slide 20: Balance Sheet Summary
Balance Sheet Summary 20 May 31, 2024 August 31, 2023 Cash and short-term investments $119.0 $115.5 Total current assets 135.6 130.4 Total assets $192.7 $186.1 Current liabilities 11.3 12.0 Long-term liabilities 0.5 4.1 Total liabilities 11.8 16.1 Shareholders’ equity 180.9 170.0 Total liabilities a
Slide 21: Fiscal 2024 Guidance
Fiscal 2024 Guidance 21 Guidance Total Revenue $69M - $72M Total Revenue Growth 15% - 20% Software Revenue Mix 55% - 60% Services Revenue Mix 40% - 45% Diluted EPS $0.46 - $0.48 Adjusted Diluted EPS $0.54 - $0.56
Slide 22: Conclusion
STRONG YTD PERFORMANCE IN FISCAL 2024 Delivering on our commitment to scientific leadership Expanding our software and services portfolio 22 • FDA renewal of DILIsym licenses • Collaboration with Toxicology Research Agency • Collaboration with Northeastern University and The TIM Company through new
Slide 23: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation* 23 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Full Year Full Year YTD Net Income $3.0 $4.4 $4.1 $1.0 $1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $12.5 $10.0 $9.1 Excluding: Interest income and expense, net (0.1) (0.1) (0.1) (0.4)
Slide 24: Adjusted EPS Non-GAAP Reconciliation
Adjusted EPS Non-GAAP Reconciliation* 24 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Full Year Full Year YTD Net Income (GAAP) $1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $12.5 $10.0 $9.1 Excluding: Mergers & Acquisitions expense 0.3 0.1 0.4 0.9 — — 0.9 0.3 1.7 0.9 Immunetrics transaction co
Slide 25: Investor Relations Contacts
Investor Relations Contacts: Lisa Fortuna Financial Profiles 310-622-8251 slp@finprofiles.com Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com