Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2022 Earnings Presentation
20 slides from Simulations Plus's earnings presentation, Apr 6, 2022
Slide 1: Earnings Call – Q2 FY22
Earnings Call – Q2 FY22 April 6, 2022 1 1 | NASDAQ: SLP
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 13% 40% 48% 50% Revenue Growth Diluted EPS Adj. EBITDA % of Services Backlog Growth Revenue Growth Strong momentum to begin year Demonstrated scientific leadership Continued strong double-digit New software releases software performance Key pharma and regulatory
Slide 4: Second Quarter Software Highlights
Second Quarter Software Highlights GastroPlus® +22% 3 new commercial customers 8 upsells +21% Q2 Revenue YTD Revenue Growth 18 peer reviewed journal articles published in Q2 Growth MonolixSuite® +43% Release of MonolixSuite 2021 R1 with a new +40% Q2 Revenue bioequivalence module YTD Revenue
Slide 5: Second Quarter Services Highlights
Second Quarter Services Highlights -5% 50% 45% Revenue Backlog Projects Decline Growth Growth PKPD Good underlying bookings activity - full pipeline of opportunities -14% Q2 Revenue Revenue cadence impacted by customer timing requirements Decline QSP/QST Return to pre-COVID-19 bookings attainm
Slide 6: FY22 Outlook
FY22 Outlook Growth Targets: Commentary: Software business continues to deliver 10% to 15% strong momentum. Total Revenue Growth Services business normalizing and long- 55% to 60% term outlook remains positive; strong Software Revenue % of Total backlog growth and robust pipeline Revenue activit
Slide 7: Financial Results
Financial Results 7 | NASDAQ: SLP
Slide 8: Revenue – Q2
Q4 Revenue (in millions) Revenue – Q2 (in millions) 2Q22 Mix Software Services $14.8 $13.1 34% $5.0 66% $10.4 $5.3 Software Services $5.0 2Q21 Mix $9.8 $7.8 40% $5.4 60% 2Q20 2Q21 2Q22 Software Services +13% +25% -5% Total Revenue Software Revenue Service Revenue 8 | NASDAQ: SLP
Slide 9: Revenue – YTD
Q4 Revenue (in millions) Revenue – YTD (in millions) FY22 Mix Software Services $27.2 $23.8 37% 63% $10.1 $19.8 $9.8 Software Services $9.8 FY21 Mix $17.1 $14.0 41% $10.0 59% FY20 FY21 FY22 Software Services +14% +23% +2% Total Revenue Software Revenue Service Revenue 9 | NASDAQ: SLP
Slide 10: Gross Margin Trends – Q2
Gross Margin Trends – Q2 92% 89% 86% 81% 78% 74% 61% 61% 59% 2Q20 2Q21 2Q22 Software Services Total 10 | NASDAQ: SLP
Slide 11: Gross Margin Trends – YTD
Gross Margin Trends – YTD 91% 88% 85% 78% 79% 73% 63% 61% 60% FY20 FY21 FY22 Software Services Total 11 | NASDAQ: SLP
Slide 12: Software Revenue by Product
Software Revenue by Product Q2 FY22 YTD FY22 56% 55% 23% 22% 14% 17% Other 7% Other 6% Software Product as % of Software Revenue 12 | NASDAQ: SLP
Slide 13: Software Performance Metrics – Q2
Software Performance Metrics – Q2 Software Performance Metrics – Q4 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 96% 96% $101 92% $84 91% 88% $54 87% 2Q20 2Q21 2Q22 2Q20 2Q21 2Q22 Accounts Fees 13 | NASDAQ: SLP
Slide 14: Software Performance Metrics – YTD
Software Performance Metrics – YTD Software Performance Metrics – Q4 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 97% 96% $97 $97 93% 93% $67 90% 87% FY20 FY21 FY22 FY20 FY21 FY22 Accounts Fees University+ Customers: 124 in 39 countries 14 | NASDAQ: SLP
Slide 15: Services Revenue by Type
Services Revenue by Type Q2 FY22 YTD FY22 PKPD 44% PKPD 45% QSP/QST 30% QSP/QST 30% PBPK 19% PBPK 18% Other 7% Other 7% Services Types as % of Service Revenue 15 | NASDAQ: SLP
Slide 16: Services Performance Metrics
Services Performance Metrics Services Performance Metrics Total Projects Backlog 201 $17 31 $13 139 $11 - 117 82 47 37 19 25 27 73 63 53 2Q20 2Q21 2Q22 2Q20 2Q21 2Q22 PKPD QSP/QST PBPK Other Backlog (in millions) 16 | NASDAQ: SLP
Slide 17: Income Statement Summary – Q2
Income Statement Summary – Q2 (in millions, except EPS) 2Q22 % of Rev 2Q21 % of Rev Revenue $14.8 100% $13.1 100% Revenue Growth 13% 27% Gross profit 12.0 81% 10.2 78% R&D 0.9 6% 1.3 10% SG&A 5.6 38% 5.4 42% Total operating expense 6.5 44% 6.7 51% Income from operations 5.5 37% 3.5 27% Income before
Slide 18: Income Statement Summary – YTD
Income Statement Summary – YTD (in millions, except EPS) FY22 % of Rev FY21 % of Rev Revenue $27.2 100% $23.8 100% Revenue Growth 14% 21% Gross profit 21.6 79% 18.5 78% R&D 1.8 7% 2.1 09% SG&A 10.6 39% 9.9 41% Total operating expense 12.4 45% 12.0 50% Income from operations 9.3 34% 6.5 27% Income be
Slide 19: Balance Sheet Summary
Balance Sheet Summary (in millions) Feb. 28, 2022 Aug. 31, 2021 Cash and short-term investments $124.6 $123.6 Total current assets 143.6 139.3 Total assets 185.0 180.0 Current liabilities 9.0 11.6 Long-term liabilities 3.4 2.6 Total liabilities 12.4 14.2 Shareholders’ equity 172.6 165.8 Total liabil
Slide 20: Conclusion
Conclusion SECURE LEADERSHIP POSITION IN BIOSIMULATION MARKET Industry adoption of model informed drug development tools and techniques continues to expand Scientific credibility with academia and regulatory agencies Software business with accelerated revenue growth rates and expanded product