Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2024 Earnings Presentation
24 slides from Simulations Plus's earnings presentation, Apr 3, 2024
Slide 1: Earnings Call – Q2 - FY24
Earnings Call – Q2 - FY24 April 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: Second Quarter Highlights
Second Quarter Highlights CURRENT PERIOD $18.3M Revenue $0.20 Diluted EPS 39% Adj. EBITDA as % $18.0M Backlog of Revenue Prior Year Comparison (2Q23) $15.8M $0.20 39% $15.4M Revenue Diluted EPS Adj. EBITDA as Backlog % of Revenue 3
Slide 4: Second Quarter Software Highlights
Second Quarter Software Highlights General ▪ Overall software revenue growth of 11% ▪ Good renewal rate, upsell and new logo activity ▪ Active and strong pipeline ADMET Predictor® (Cheminformatics) +14% ▪ 8 new customers +10% Q2 Revenue ▪ 18 upsells to existing customers YTD Revenue Growth Growth Ga
Slide 5: Second Quarter Services Highlights
Second Quarter Services Highlights General ▪ Overall services revenue growth of 27% ▪ Total backlog $18.0M – strong as we enter second half of fiscal 2024 ▪ Good momentum into second half fiscal 2024 ▪ Continued volatility for project completion due to data delays and drug program start/stop decisio
Slide 6: Financial Results
Financial Results
Slide 7: Revenue - Q2 FY24
Revenue - Q2 FY24 (in millions) 2Q24 Mix 2Q23 Mix +16% +11% +27% Total Revenue Software Revenue Services Revenue 7
Slide 8: Revenue - YTD
Revenue - YTD (in millions) FY24 Mix FY23 Mix +18% +16% +22% Total Revenue Software Revenue Services Revenue 8
Slide 9: Revenue - Trailing Twelve Months (TTM)
Revenue - Trailing Twelve Months (TTM) (in millions) 2Q24 Mix 2Q23 Mix +19% +22% +14% Total Revenue Software Revenue Services Revenue 9
Slide 10: Gross Margin Trends - Q2 FY24
Gross Margin Trends - Q2 FY24 1 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. 10
Slide 11: Gross Margin Trends - YTD
Gross Margin Trends - YTD 1 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. 11
Slide 12: Gross Margin Trends - TTM
Gross Margin Trends - TTM 1 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. 12
Slide 13: Software Revenue by Business Unit
Software Revenue by Business Unit 2Q24 YTD TTM Software Business Unit as % of Software Revenue 13
Slide 14: Software Performance Metrics - Q2 FY24
Software Performance Metrics - Q2 FY24 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 14
Slide 15: Software Performance Metrics - TTM
Software Performance Metrics - TTM Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 15
Slide 16: Services Revenue by Business Unit
Services Revenue by Business Unit 2Q24 YTD TTM Services Business Unit as % of Services Revenue 16
Slide 17: Services Performance Metrics
Services Performance Metrics Total Projects Backlog 17
Slide 18: Income Statement Summary - Q2 FY24
Income Statement Summary - Q2 FY24 (in millions, except Diluted EPS) 2Q24 % of Rev 2Q23 % of Rev Revenue $18.3 100% $15.8 100% Revenue growth 16% 6% Gross profit 13.2 72% 13.1 83% R&D 1.3 7% 1.3 8% S&M 1.9 11% 1.7 11% G&A 5.5 30% 6.0 38% Total operating exp 8.8 48% 9.1 58% Income from operations 4.4
Slide 19: Income Statement Summary - YTD
Income Statement Summary - YTD (in millions, except Diluted EPS) 2Q24 % of Rev 2Q23 % of Rev Revenue $32.8 100% $27.7 100% Revenue growth 18% 2% Gross profit 23.1 70% 22.4 81% R&D 2.5 8% 2.5 9% S&M 3.9 12% 3.2 12% G&A 11.2 34% 11.8 43% Total operating exp 17.7 54% 17.5 63% Income from operations 5.4
Slide 20: Balance Sheet Summary
Balance Sheet Summary (in millions) February 29, 2024 August 31, 2023 Cash and short-term investments $108.5 $115.5 Total current assets 128.0 130.4 Long-term investments* $9.0 $— Total assets $194.0 $186.1 Current liabilities 14.5 12.0 Long-term liabilities 2.4 4.1 Total liabilities 16.9 16.1 Share
Slide 21: 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 21
Slide 22: 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 • Small biotech churn • ASR program
Slide 23: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation* (in millions) FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 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 $12.5 $10.0 $6.0 Excluding: Interest income and expense, net (0.1) (0.1) (0.1) (0.
Slide 24: Investor Relations Contacts
Investor Relations Contacts: Lisa Fortuna Financial Profiles 310-622-8234 [email protected] Renee Bouche Simulations Plus Investor Relations 661-723-7723 [email protected]