Simulations Plus Inc (SLP) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid Market …

• Total Revenue: Increased 18% to $70 million for fiscal year 2024.

• Organic Revenue Growth: 14% excluding the fourth quarter contribution from Pro-ficiency.

• Software Revenue: Grew 12% for the fiscal year, representing 59% of total revenue.

• Services Revenue: Increased 26% for the fiscal year, representing 41% of total revenue.

• Net Income: $10 million, representing 14% of revenue for the fiscal year.

• Diluted EPS: $0.49 for the fiscal year, exceeding the high end of guidance.

• Adjusted EBITDA: $20.3 million, representing 29% of revenue for the fiscal year.

• Gross Margin: 62% for the fiscal year.

• Cash and Investments: $20 million at year-end, with no debt.

• Fiscal 2025 Revenue Guidance: $90 million to $93 million, with year-over-year growth of 28% to 33%.

• Adjusted Diluted EPS Guidance for Fiscal 2025: $1.07 to $1.20.

Release Date: October 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Simulations Plus Inc (NASDAQ:SLP) reported a strong revenue increase of 18% year-over-year, with organic growth at 14%, surpassing the previous year’s growth rate.

• The company successfully integrated its largest acquisition, Pro-ficiency, which doubled its total addressable market to $8 billion, enhancing its market opportunities.

• The release of new software versions, such as Monolix Sweet 2024 and ADMET Predictor version 12, improved user experience and predictive accuracy, supporting drug discovery efforts.

• The company’s services segment saw a significant revenue growth of 26% for the fiscal year, with strong performance in the CPP and QSP business units.

• Simulations Plus Inc (NASDAQ:SLP) maintained a high software customer renewal rate of 93% based on revenue, indicating strong customer retention and satisfaction.

• The spending environment for pharma and biotech remains constrained, impacting client budgets and potentially limiting growth opportunities.

• Software revenue growth was lower than expected in the fourth quarter, with a 6% decrease on an organic basis, partly due to challenges in the Asian market.

• The company’s gross margin declined year-over-year, primarily due to reclassification of operating expenses and additional expenses from acquisitions.

• Pro-ficiency’s contribution to fourth-quarter revenue was below expectations, affected by project timing delays and recognition issues.

• The company faces ongoing challenges with client source data delays, impacting the initiation of contracted projects in the PBPK business unit.

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