Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — Q2 FY2023 Earnings Presentation
22 slides from Simulations Plus's earnings presentation, Apr 5, 2023
Slide 1: Earnings Call - Q2 - FY23
Earnings Call - Q2 - FY23 April 5, 2023 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 $16M Revenue $0.20 Diluted EPS 40% Adj. EBITDA as % $15MBacklog of Revenue • Second quarter results in line with guidance • Revenue seasonality impacted by expected shift in software renewal timing ◦ Continue to see slower pace of sales cycles due to customer budget constra
Slide 4: Supporting Client Success
Supporting Client Success • New AI/ML drug discovery collaborations • pKa collaboration with large agrochemicals company extending ML models • 4 new FDA grant submissions • Critical PBPK service support to multiple clients • Supported multiple high profile regulatory submissions with pharmacometric
Slide 5: Second Quarter Software Highlights
Second Quarter Software Highlights General • Overall software revenue growth of 7% • Renewal pattern and revenue seasonality shifting as anticipated • Slower pace of new sales with new customers delaying purchases • University+ program has 278 individual licenses across 54 countries • Good yield on
Slide 6: Second Quarter Services Highlights
Second Quarter Services Highlights General • Overall service revenue growth 4% • Total backlog $15.4M – projects to be performed within 12 months increased from 70% to 78% • Successful recruiting quarter despite continued competitive market (2 new hires) • 188 total projects worked on during the qua
Slide 7: Capital Allocation Strategy Update
Capital Allocation Strategy Update • Product R&D • Acquisitions • Employee Recruiting and Retention • Strategic investments and • Enterprise Technologies partnerships Internal Corporate Investment Development Dividend Share Payments Repurchases • Maintain current level • $50M share repurchase $0.0
Slide 8: Maintaining FY23 Guidance
Maintaining FY23 Guidance Total Revenue $59.3M to $62.0M Total Revenue Growth 10% to 15% Software Revenue Mix 60% to 65% Service Revenue Mix 35% to 40% Diluted EPS $0.63 to $0.67 8 | NASDAQ: SLP
Slide 9: Financial Results
Financial Results 9 | NASDAQ: SLP
Slide 10: Revenue - Q2
Q4 Revenue (in millions) Revenue - Q2 (in millions) 2Q23 Mix 2Q22 Mix +6% +7% +4% Total Revenue Software Revenue Services Revenue 10 | NASDAQ: SLP
Slide 11: Revenue - YTD
Q4 Revenue (in millions) Revenue - YTD (in millions) FY23 Mix FY22 Mix +2% -3% +11% Total Revenue Software Revenue Services Revenue 11 | NASDAQ: SLP
Slide 12: Gross Margin Trends - Q2
Gross Margin Trends - Q2 12 | NASDAQ: SLP
Slide 13: Gross Margin Trends - YTD
Gross Margin Trends - YTD 13 | NASDAQ: SLP
Slide 14: Software Revenue by Product
Software Revenue by Product Q2 FY23 YTD FY23 Other Other Software Product as % of Software Revenue 14 | NASDAQ: SLP
Slide 15: Software Performance Metrics - Q2
Software Performance Metrics - Q2 Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) 15 | NASDAQ: SLP
Slide 16: Software Performance Metrics - YTD
Software Performance Metrics - YTD Commercial Customers Avg. Revenue per Customer Renewal Rates (in thousands) University+ Customers: 278 in 54 countries 16 | NASDAQ: SLP
Slide 17: Service Revenue by Type
Service Revenue by Type Q2 FY23 YTD FY23 PKPD PKPD QSP/QST QSP/QST PBPK PBPK Other Other Services as % of Service Revenue 17 | NASDAQ: SLP
Slide 18: Services Performance Metrics
Services Performance Metrics Total Projects Backlog 18 | NASDAQ: SLP
Slide 19: Income Statement Summary - Q2
Income Statement Summary - Q2 (in millions, except Diluted EPS) 2Q23 % of Rev 2Q22 % of Rev Revenue $15.8 100% $14.8 100% Revenue growth 6% 13% Gross profit 13.1 83% 12.0 81% R&D 1.3 8% 0.9 6% SG&A 7.8 49% 5.6 38% Total operating exp 9.1 58% 6.5 44% Income from operations 4.0 26% 5.5 37% Income befo
Slide 20: Income Statement Summary - YTD
Income Statement Summary - YTD (in millions, except Diluted EPS) 2Q23 % of Rev 2Q22 % of Rev Revenue $27.7 100% $27.2 100% Revenue growth 2% 14% Gross profit 22.4 81% 21.6 79% R&D 2.5 9% 1.8 7% SG&A 15.0 54% 10.6 39% Total operating exp 17.5 63% 12.4 45% Income from operations 4.9 18% 9.3 34% Income
Slide 21: Balance Sheet Summary
Balance Sheet Summary (in millions) February 28, 2023 August 31, 2022 Cash and short-term investments $115.3 $128.2 Total current assets 131.5 146.8 Total assets $173.2 $188.4 Current liabilities 6.0 7.7 Long-term liabilities 2.6 2.4 Total liabilities 8.6 10.1 Shareholders’ equity 164.6 178.2 Total
Slide 22: Conclusion
Conclusion CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET • Delivering on our commitment to scientific leadership ◦ Internal R&D investment ◦ Expanding industry and regulatory partnerships ◦ MIDD+ – 3rd annual SLP sponsored conference • Enhancing our client facing capabilities ◦ Growth and ma