Financial Data and Key Metrics Changes - Total revenue for Q4 2023 was $88 million, representing a year-over-year growth of 2% on a reported basis and 1% on a constant currency basis [13] - For the full year 2023, total revenue was $354.3 million, which represents a 6% growth on a reported basis and on a constant currency basis [13] - Bookings for the trailing 12-month period ended December 31, 2023, were $402.3 million, down 2% year-over-year [14] - Adjusted EBITDA margin was 33.6% for Q4 2023 and 34.7% for the full year 2023 [36] Business Line Data and Key Metrics Changes - Software revenue in Q4 was $33.6 million, up 15% year-over-year, driven by biosimulation software and Pinnacle 21 [15] - For the full year, software revenue was $131.7 million, up 14% on a reported basis [15] - Services revenue in Q4 was $54.4 million, down 5% year-over-year, while for the full year, services revenue was $222.7 million, up 1% [22] Market Data and Key Metrics Changes - The customer base expanded to 2,395, with 389 customers having an annual contract value of more than $100,000, representing a 5% growth year-over-year [62] - The company saw a pickup in new business activity across its technology-enabled services group, leading to sequential bookings growth in Q4 [8] Company Strategy and Development Direction - The company plans to invest in new models for biosimulation, new products, and additional integration of AI across its platform [7] - A focus on expanding the software capabilities, particularly in clinical data strategy, is emphasized, with the acquisition of Formedix to enhance clinical trial data management [45] - The company aims to broaden its offerings to support additional use cases in therapeutic areas as biosimulation becomes more widespread [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities in biosimulation as drug developers seek to maximize capital efficiencies and reduce pipeline risk [11] - The company anticipates total revenue in the range of $385 million to $400 million for 2024, representing growth of 9% to 13% compared to 2023 [38] - Management noted that while the biotech market is stabilizing, they have not yet seen significant improvements in bookings but expect a healthier market segment in the second half of 2024 [94] Other Important Information - The company ended Q4 2023 with $235 million in cash and cash equivalents and $288.2 million in outstanding borrowings on its term loan [37] - The net retention rate for software was 109% for both Q4 and the full year 2023, consistent with the company's long-term growth algorithm [20] Q&A Session Summary Question: What helped the bookings to pick up in Q4? - Management highlighted investments in training the sales force and uniting the sales approach to offer clients a full suite of products [43] Question: How does the company expect to generate growth from a trailing bookings number that did not grow? - Management indicated confidence in organic growth driven by new products and improved execution in the services business [89] Question: Can you provide insights on the performance of regulatory services within the broader services bucket? - Regulatory services represented 19% of total revenue in Q4, and the company anticipates this segment returning to growth over the coming quarters [130] Question: What is the outlook for the biotech market and its impact on guidance? - Management noted stability in the biotech market and built guidance around this stability, expecting potential recovery in the second half of 2024 [137]

Certara, Inc. (CERT) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -18.18%. A quarter ago, it was expected that this company would post earnings of $0.11 per share when it actually produced earnings of $0.11, delivering no surprise.Over the last four quarters, the company has not be ...

PRINCETON, N.J., Feb. 29, 2024 (GLOBE NEWSWIRE) -- Certara, Inc. (NASDAQ:CERT), a global leader in biosimulation, today reported its financial results for the fourth quarter of fiscal year 2023. Fourth Quarter Highlights: Revenue was $88.0 million, compared to $86.6 million in the fourth quarter of 2022, representing growth of 2% over the fourth quarter of 2022.Strong sequential growth with record software bookings and broad-based recovery in technology enabled services bookings during the quarter.Net loss ...

Part I [Business](index=8&type=section&id=Item%201.%20Business) Certara provides biosimulation technology and solutions for Model-Informed Drug Development (MIDD) to enhance drug development success and reduce costs [Our Company and Solutions](index=8&type=section&id=Our%20Company%20and%20Solutions) Certara offers biosimulation software like Simcyp and Phoenix, integrates AI, and provides technology-enabled services for drug development - Certara is a leading provider of biosimulation technology and solutions for **Model-Informed Drug Development (MIDD)**, aiming to increase success rates and decrease costs in biopharmaceutical R&D[37](index=37&type=chunk) - Since 2014, customers using Certara's solutions have received over **90% of all new drug approvals by the US FDA**, working with nearly **2,400 life sciences companies** and academic institutions[52](index=52&type=chunk) - Key software platforms include the **Simcyp Simulator** for mechanistic modeling, **Phoenix™ PK/PD suite** for empirical modeling, and **Pinnacle 21** for clinical data automation[50](index=50&type=chunk)[62](index=62&type=chunk)[65](index=65&type=chunk) - The company has incorporated **AI and machine learning**, including the launch of **Certara.AI** for deploying life science-specific Generative Pre-Trained Transformers (GPTs)[44](index=44&type=chunk)[48](index=48&type=chunk) [Our Markets and Growth Strategy](index=13&type=section&id=Our%20Markets%20and%20Growth%20Strategy) Certara operates in expanding biosimulation, regulatory science, and market access sectors, pursuing growth through technology, customer expansion, global reach, and acquisitions Addressable Markets (2023 Estimates) | Market | Estimated Size (2023) | Annual Growth Rate | | :--- | :--- | :--- | | Biosimulation | $3.4 billion | 17% | | Regulatory Science | $7.6 billion | 8% | | Market Access | $1.4 billion | 12% | - The company's growth strategy focuses on **advancing technology**, **expanding within its customer base**, **growing globally**, and **scaling through acquisitions**[93](index=93&type=chunk)[95](index=95&type=chunk)[97](index=97&type=chunk)[102](index=102&type=chunk) - Customers with annual revenue of **$100,000 or more increased 5.1%** to **389 in 2023**, with an aggregate software renewal rate of **88%**[98](index=98&type=chunk) - Certara has completed **20 strategic acquisitions since 2013**, including Formedix, Applied Biomath, and Vyasa in 2023[101](index=101&type=chunk) [Customers, Competition, and Intellectual Property](index=15&type=section&id=Customers,%20Competition,%20and%20Intellectual%20Property) Certara serves diverse biopharma and academic clients, competes in a fragmented market, and protects its innovations via patents, copyrights, and trade secrets - Customers include nearly **2,400 biopharmaceutical companies** and academic institutions across **66 countries**, with **23 global regulatory authorities** also licensing Certara's software[104](index=104&type=chunk) - The market is competitive and fragmented, with key competitors including Mathworks, Ansys, Simulations Plus, ICON's NONMEM, and open-source solutions[110](index=110&type=chunk)[112](index=112&type=chunk) - As of December 31, 2023, Certara's patent portfolio includes **27 issued patents** and **12 pending applications**, supplemented by copyright and trade secret protections[115](index=115&type=chunk)[117](index=117&type=chunk) [Human Capital and Government Regulation](index=17&type=section&id=Human%20Capital%20and%20Government%20Regulation) Certara employs 1,391 professionals, including 433 PhDs, and adheres to biopharmaceutical, data privacy, cybersecurity, and anti-corruption regulations - As of December 31, 2023, the company employed **1,391 professionals** across **28 countries**, with **433 holding PhDs**[119](index=119&type=chunk) - The company's operations comply with biopharmaceutical regulations like **Good Laboratory Practices (GLP)** and **Good Clinical Practices (GCP)**, supporting customer regulatory applications[121](index=121&type=chunk) - Certara is subject to stringent data privacy and cybersecurity laws, including **HIPAA** in the U.S. and **GDPR** in the EEA, due to handling sensitive data[123](index=123&type=chunk)[127](index=127&type=chunk) - The company is subject to anti-corruption laws such as the **U.S. Foreign Corrupt Practices Act (FCPA)** and the **U.K. Bribery Act of 2010**[131](index=131&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from market competition, R&D spending dependency, operational challenges, global operations, goodwill impairment, cybersecurity, data privacy, and significant indebtedness - **Industry Risks:** The company faces risks from decelerating acceptance of model-informed biopharmaceutical discovery, intense competition, regulatory changes, and reduced customer R&D spending[606](index=606&type=chunk)[610](index=610&type=chunk)[613](index=613&type=chunk)[615](index=615&type=chunk) - **Business & Operational Risks:** Key risks include market entry and customer expansion, dependence on key personnel, potential software defects (especially with AI), and customer license renewals[563](index=563&type=chunk)[570](index=570&type=chunk)[626](index=626&type=chunk)[629](index=629&type=chunk) - **IT, IP & Data Privacy Risks:** Risks include reliance on third-party cloud infrastructure, potential security breaches, and non-compliance with privacy and cybersecurity laws like GDPR and HIPAA[795](index=795&type=chunk)[805](index=805&type=chunk)[810](index=810&type=chunk) - **Financial & Indebtedness Risks:** Significant debt and restrictive covenants may adversely affect financial condition and strategy, alongside goodwill impairment risk, which incurred a **$47.0 million charge in Q3 2023**[859](index=859&type=chunk)[867](index=867&type=chunk)[874](index=874&type=chunk) [Cybersecurity](index=50&type=section&id=Item%201C.%20Cybersecurity) Certara manages cybersecurity risks through a program based on NIST and ISO standards, overseen by the Board, with no material incidents reported - The company's cybersecurity risk management adheres to industry best practices like **NIST 800-53**, **ISO 27001**, and **CIS Top 20**, emphasizing proactive monitoring[164](index=164&type=chunk)[166](index=166&type=chunk) - Cybersecurity governance is overseen by the **Board of Directors** and **Audit Committee**, with the **Security and Privacy Program Office (SPPO)** managing program design and implementation[171](index=171&type=chunk)[172](index=172&type=chunk) - As of the report date, no cybersecurity incidents have had or are reasonably likely to have a material impact on the company's business, operations, or financial condition[170](index=170&type=chunk) [Properties](index=52&type=section&id=Item%202.%20Properties) As of December 31, 2023, Certara leased 36 offices across 16 countries, including its Princeton, NJ headquarters, deemed adequate for operations Material Operating Locations (as of Dec 31, 2023) | Location | Approx. Square Footage | Lease Expiration | | :--- | :--- | :--- | | Wilmington, Delaware, USA | 18,250 | Feb 28, 2027 | | Princeton, New Jersey, USA | 17,560 | Jun 30, 2025 | | Sheffield, UK | 13,910 | Jan 28, 2028 | | Raleigh, North Carolina, USA | 11,250 | Jan 31, 2028 | Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=53&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Certara's common stock trades on Nasdaq under "CERT"; no dividends are expected as earnings will be reinvested, and 5,462 shares were purchased in Q4 2023 for tax payments - The company's common stock has been listed on **The Nasdaq Global Select Market** under the symbol **"CERT"** since December 11, 2020[183](index=183&type=chunk) - The company does not anticipate declaring dividends on its common stock, planning to reinvest all earnings into business operations and growth[185](index=185&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Shares Purchased | Weighted Avg. Price Paid per Share | | :--- | :--- | :--- | | Oct 2023 | 3,986 | $14.54 | | Nov 2023 | 428 | $12.19 | | Dec 2023 | 1,048 | $14.41 | | **Total** | **5,462** | **$14.33** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In FY2023, Certara's revenue grew 6% to **$354.3 million**, but a **$55.4 million net loss** resulted from goodwill impairment and contingent consideration expenses, while liquidity remains strong [Key Performance Indicators](index=57&type=section&id=Key%20Performance%20Indicators) Key performance indicators include bookings, which decreased to **$402.3 million** in 2023, and the software renewal rate, which was **88%** Quarterly Bookings and Renewal Rates | (In Millions) | 2022 Full Year | 2023 Full Year | Change | | :--- | :--- | :--- | :--- | | Bookings | $409.0 | $402.3 | (1.6)% | | Renewal Rate | 91% | 88% | (3 pp) | [Results of Operations](index=67&type=section&id=Results%20of%20Operations) FY2023 revenue grew 6% to **$354.3 million**, but a **$55.4 million net loss** was driven by impairment and contingent consideration, contrasting with FY2022's **$14.7 million net income** Consolidated Statement of Operations Data (in thousands) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Revenues** | **$354,337** | **$335,644** | **$286,104** | | Income (loss) from operations | $(40,774) | $32,521 | $13,579 | | **Net income (loss)** | **$(55,357)** | **$14,731** | **$(13,266)** | - **2023 vs. 2022:** Revenue increased **6%** to **$354.3 million**, driven by **14% software revenue growth**, resulting in a **$55.4 million net loss** due to a **$47.0 million goodwill impairment** and **$24.1 million contingent consideration expense**[340](index=340&type=chunk)[358](index=358&type=chunk) - **2022 vs. 2021:** Revenue increased **17%** to **$335.6 million**, with **33% software growth**, leading to a **$14.7 million net income** from a **$13.3 million net loss**, aided by lower acquisition costs[360](index=360&type=chunk)[403](index=403&type=chunk)[410](index=410&type=chunk) [Liquidity and Capital Resources](index=74&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2023, Certara held **$235.0 million** in cash, generated **$82.8 million** from operations, used **$79.6 million** in investing, and had **$294.5 million** in long-term debt Summary of Cash Flows (in thousands) | Cash Flow | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $82,755 | $92,543 | $60,388 | | Net cash used in investing activities | $(79,550) | $(27,837) | $(269,922) | | Net cash provided by (used in) financing activities | $(9,447) | $(7,363) | $123,391 | - As of December 31, 2023, the company held **$235.0 million in cash and cash equivalents** and **$294.5 million in outstanding term loan borrowings**[468](index=468&type=chunk)[782](index=782&type=chunk) - The decrease in 2023 operating cash flow was primarily due to lower deferred revenue inflow and increased cash used for liabilities and taxes[421](index=421&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=82&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Certara faces foreign currency risk from **27% of revenue** outside the U.S. and interest rate risk from **$294.5 million** in variable-rate debt, partially mitigated by swaps - The company faces foreign currency exchange risk, with **27% of 2023 revenue from outside the U.S.**; a hypothetical **10% USD change** could impact income by approximately **$2.4 million**[543](index=543&type=chunk)[544](index=544&type=chunk) - The company is exposed to interest rate risk from **$294.5 million** in variable-rate term loan borrowings, partially mitigated by interest rate swaps valued at **$5.6 million** as of year-end[553](index=553&type=chunk)[554](index=554&type=chunk) [Financial Statements and Supplementary Data](index=85&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for FY2023 and FY2022, with RSM US LLP providing an unqualified opinion on both financials and internal controls Consolidated Balance Sheet Data (in thousands) | Metric | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $234,951 | $236,586 | | Total Assets | $1,563,140 | $1,572,922 | | Total Liabilities | $516,300 | $493,261 | | Total Stockholders' Equity | $1,046,840 | $1,079,661 | - RSM US LLP issued an **unqualified opinion** on the consolidated financial statements for 2023 and 2022, and on the effectiveness of internal control over financial reporting as of December 31, 2023[562](index=562&type=chunk)[597](index=597&type=chunk) - In 2023, the company completed three acquisitions (DIDB, Formedix, ABM), resulting in **$40.2 million in intangible assets** and **$9.7 million in contingent consideration liabilities**[587](index=587&type=chunk)[589](index=589&type=chunk) - A **$46,984 thousand goodwill impairment charge** was recorded in Q3 2023 for the Regulatory Writing reporting unit[375](index=375&type=chunk) [Controls and Procedures](index=134&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and internal controls over financial reporting were effective as of December 31, 2023, with an unqualified audit opinion from RSM US LLP - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2023[576](index=576&type=chunk) - Management assessed internal control over financial reporting as **effective** as of December 31, 2023, a conclusion audited and affirmed with an **unqualified opinion by RSM US LLP**[578](index=578&type=chunk)[579](index=579&type=chunk) Part III [Directors, Executive Compensation, Security Ownership, and Principal Accountant Fees](index=136&type=section&id=Items%2010,%2011,%2012,%2013,%20and%2014) Information for Items 10-14, covering governance, compensation, and ownership, is incorporated by reference from the definitive proxy statement for the 2023 Annual Meeting - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the definitive proxy statement, expected to be filed within **120 days** of December 31, 2023[939](index=939&type=chunk)[940](index=940&type=chunk)[941](index=941&type=chunk)[943](index=943&type=chunk)[945](index=945&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=137&type=section&id=Item%2015.%20Exhibits,%20Financial%20Statement%20Schedules) This section lists financial statements (in Item 8) and exhibits filed as part of the Annual Report on Form 10-K - This section lists all documents filed as part of the annual report, including financial statements (in Item 8) and exhibits required by **Item 601 of Regulation S-K**[931](index=931&type=chunk)[948](index=948&type=chunk)

1. As of 12/31/2022 Differentiated scientific and technology expertise Software Tech-driven Services © Copyright 2023 Certara, L.P. All rights reserved. PopPK Dose-response Renal impairment Hepatic impairment 5 6 Renal impairment Hepatic impairment Pediatric HIV Animal QT interval prolongation 3 PopPK Dose-response <2000 2000 - 2010 2011 - 2015 2016 - 2020 1. Science Direct search for publications by key search terms 2. Model‐Informed Drug Development: Current US Regulatory Practice and Future Consideration ...

Financial Data and Key Metrics Changes - Total company revenue for Q3 2023 was $85.6 million, representing a year-over-year growth of 1% on a reported basis and flat on a constant currency basis [4][25] - Software revenue was $31.3 million, increasing by 10% compared to the prior year, while services revenue was $54.2 million, declining by 4% year-over-year [4][25] - Adjusted EBITDA for Q3 2023 was $28.8 million, a decrease of 12% from $32.7 million in Q3 2022, with an adjusted EBITDA margin of 34% [31] - Net loss for Q3 2023 was $49 million, compared to a net income of $3.9 million in Q3 2022 [30] Business Line Data and Key Metrics Changes - Software bookings for Q3 2023 were $27.2 million, reflecting a 7% growth year-over-year, with trailing 12-month software bookings at $133.1 million, up 13% [17][26] - Services bookings in Q3 totaled $57.6 million, representing a 6% increase compared to the same period last year, while trailing 12-month services bookings decreased by 4% [48] - The software aggregate renewal rate was 86% in Q3, with a net retention rate of 107% [27][55] Market Data and Key Metrics Changes - The company observed stabilization in customer spending, particularly in the biopharma sector, with improved activity noted in Q3 compared to Q2 [15][44] - There were indications of increased demand for biosimulation software and services across all customer tiers, with a return to growth among smaller biopharma companies [16][18] Company Strategy and Development Direction - The company is focused on enhancing its software capabilities, particularly through the integration of artificial intelligence, with the launch of Certara AI and the acquisition of Vyasa [20][21] - Certara aims to drive long-term growth in biosimulation, emphasizing the value of its platform in reducing costs and accelerating drug project timelines [24][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its plans and drive growth, despite some near-term uncertainties in certain business areas [16][22] - The company reiterated its 2023 guidance, expecting total revenue between $345 million and $360 million, representing year-over-year growth of 3% to 7% [33][99] Other Important Information - Total operating expenses for Q3 2023 were $102.5 million, including a $47 million goodwill impairment expense, an increase from $41 million in Q3 2022 [29] - The company ended the quarter with $272.3 million in cash and cash equivalents, alongside $292.2 million in outstanding borrowings [32] Q&A Session Summary Question: Can you elaborate on the software renewal rate and its context? - The aggregate renewal rate was 86% for the quarter, influenced by timing issues, with expectations for a return to the 90% range in Q4 [55] Question: What are the expectations for services bookings in Q4? - Services bookings are expected to continue along the guidance pathway provided earlier, with positive momentum observed [73] Question: Can you confirm the guidance for year-over-year bookings? - The company expects bookings to decline in the low single digits compared to 2022, consistent with previous commentary [51][58] Question: How is the hiring outlook and utilization levels? - Utilization levels are consistent with expectations, and hiring continues in billable areas, though some non-billable hiring has slowed [78][59] Question: What factors could affect the year-end guidance? - To reach the lower end of guidance, a reversal of momentum in services and deceleration in software would be needed, which is not currently anticipated [99]

[PART I – FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements show key financial positions and performance for the periods ended September 30, 2023 [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.53 billion as of September 30, 2023, primarily due to a goodwill impairment charge Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $272,312 | $236,586 | | Goodwill | $673,159 | $717,743 | | Total Assets | $1,526,821 | $1,572,922 | | **Liabilities & Equity** | | | | Total Liabilities | $475,070 | $493,261 | | Total Stockholders' Equity | $1,051,751 | $1,079,661 | | Total Liabilities & Equity | $1,526,821 | $1,572,922 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) The company reported a Q3 2023 net loss of $49.0 million, driven by a significant goodwill impairment charge Statement of Operations Highlights (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $85,576 | $84,700 | $266,327 | $249,011 | | Income (loss) from operations | $(52,784) | $10,859 | $(32,307) | $21,141 | | Net income (loss) | $(48,965) | $3,936 | $(42,901) | $5,557 | | Diluted EPS | $(0.31) | $0.02 | $(0.27) | $0.03 | - A **goodwill impairment expense of $46,984 thousand** was recorded in Q3 2023, which was the primary driver of the net loss for the period[49](index=49&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity declined to $1.05 billion, mainly due to the period's net loss and partially offset by equity-based compensation - The balance of total stockholders' equity was **$1,051,751 thousand** as of September 30, 2023, down from $1,079,661 thousand at December 31, 2022[40](index=40&type=chunk)[91](index=91&type=chunk) - Key changes during the nine months ended September 30, 2023 include a **net loss of $42.9 million** and **equity-based compensation expense of $20.8 million**[91](index=91&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $59.4 million for the nine months ended September 30, 2023, contributing to a higher cash balance Cash Flow Summary (in thousands) | Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $59,429 | $57,058 | | Net cash used in investing activities | $(18,503) | $(15,238) | | Net cash used in financing activities | $(8,195) | $(6,395) | | **Net increase in cash** | **$32,624** | **$27,159** | | **Cash at end of period** | **$272,312** | **$213,783** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and highlight a $47.0 million goodwill impairment and recent acquisitions - The company is a global leader in biosimulation, providing software and technology-driven services to accelerate drug discovery and development[11](index=11&type=chunk) - During Q3 2023, the company recorded a **goodwill impairment charge of $46,984 thousand** for its Regulatory and Writing business reporting unit[6](index=6&type=chunk)[272](index=272&type=chunk) - On June 20, 2023, the company acquired the Drug Interaction Database (DIDB) from the University of Washington for a total estimated consideration of **$8.34 million**[109](index=109&type=chunk) - On October 10, 2023, subsequent to the quarter end, the company acquired Formedix Limited for a total consideration of up to **$39.0 million**[183](index=183&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth offset by a goodwill impairment impacting net income Key Performance Indicators | | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Bookings (in millions) | $84.8 | $79.8 | | Renewal Rate | 86% | 93% | Non-GAAP Reconciliation: Adjusted EBITDA (in thousands) | | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(48,965) | $3,936 | $(42,901) | $5,557 | | **Adjusted EBITDA** | **$28,844** | **$32,703** | **$93,523** | **$88,312** | Non-GAAP Reconciliation: Adjusted Net Income (in thousands) | | Q3 2023 | Q3 2022 | YTD 2023 | YTD 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $(48,965) | $3,936 | $(42,901) | $5,557 | | **Adjusted Net Income** | **$17,074** | **$16,648** | **$54,748** | **$48,194** | [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Q3 revenue grew 1% while nine-month revenue grew 7%, with net loss driven by a goodwill impairment charge Revenue by Segment - Three Months Ended Sep 30 (in thousands) | Segment | 2023 | 2022 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Software | $31,331 | $28,392 | $2,939 | 10% | | Services | $54,245 | $56,308 | $(2,063) | (4)% | | **Total** | **$85,576** | **$84,700** | **$876** | **1%** | Revenue by Segment - Nine Months Ended Sep 30 (in thousands) | Segment | 2023 | 2022 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Software | $98,058 | $86,309 | $11,749 | 14% | | Services | $168,269 | $162,702 | $5,567 | 3% | | **Total** | **$266,327** | **$249,011** | **$17,316** | **7%** | - The **Q3 2023 net loss of $49.0 million** was primarily driven by a **$47.0 million goodwill impairment expense** and an $8.8 million increase in expense related to contingent considerations[344](index=344&type=chunk) - For the nine months ended Sep 30, 2023, General and Administrative expenses **increased by $8.3 million, or 16%**, mainly due to an $11.3 million increase related to contingent consideration[356](index=356&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $272.3 million in cash and sufficient credit availability Liquidity Summary (in thousands) | Item | Sep 30, 2023 | | :--- | :--- | | Cash and cash equivalents | $272,312 | | Term loan outstanding | $295,205 | | Revolving line of credit availability | $100,000 | - **Net cash provided by operating activities increased to $59.4 million** for the nine months ended Sep 30, 2023, from $57.1 million in the prior-year period[381](index=381&type=chunk) - The company was in **compliance with all covenants** of its Credit Agreement as of September 30, 2023[387](index=387&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk exposure during the nine months ended September 30, 2023 - There were **no material changes** to the Company's market risk exposure during the nine months ended September 30, 2023[401](index=401&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2023[402](index=402&type=chunk)[404](index=404&type=chunk) - **No changes in internal control over financial reporting** occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[405](index=405&type=chunk) [PART II – OTHER INFORMATION](index=61&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings have occurred since the 2022 Annual Report - There have been **no material changes** to the company's legal proceedings as disclosed in the 2022 Annual Report[408](index=408&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor was added concerning potential adverse developments in the financial services industry - A **new risk factor** was added regarding adverse developments in the financial services industry, which could impair the ability to access cash and equivalents[409](index=409&type=chunk)[410](index=410&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 36,944 shares in Q3 2023 to satisfy employee tax withholding obligations Equity Security Repurchases - Q3 2023 | Period | Total Shares Purchased | Weighted Avg. Price Paid | | :--- | :--- | :--- | | Jul 2023 | 568 | $18.21 | | Aug 2023 | 5,108 | $19.40 | | Sep 2023 | 31,268 | $14.43 | | **Total** | **36,944** | **$15.18** | - Share repurchases were made to cover employee tax obligations from the vesting of stock-based compensation awards[413](index=413&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) Disclosures include a new Rule 10b5-1 trading plan for the General Counsel and an amended CFO employment agreement - On August 11, 2023, the company's General Counsel adopted a **Rule 10b5-1 trading plan** for the potential sale of up to 76,070 shares of common stock[415](index=415&type=chunk) - On November 7, 2023, the company amended the employment agreement with CFO John Gallagher to include a **payment of $235,750** related to an unpaid bonus from a prior employer[422](index=422&type=chunk)

Certara Inc. (NASDAQ:CERT) Q2 2023 Results Conference Call August 9, 2023 5:00 PM ET Company Participants David Deuchler - IR William Feehery - CEO and Director John Gallagher - Chief Financial Officer Conference Call Participants David Windley - Jefferies Vikram Purohit - Morgan Stanley Jeff Garro - Stephens Inc Kyle Crews - Credit Suisse Financial Services Max Smock - William Blair Gaurav Goparaju - Berenberg Capital Markets Joe Vruwink - Baird Operator Good day, and thank you for standing by. Welcome to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-39799 ______________________ ...

Certara, Inc. (NASDAQ:CERT) Q1 2023 Results Conference Call May 8, 2023 5:00 PM ET Company Participants David Deuchler - Investor Relations William Feehery - Chief Executive Officer John Gallagher - Chief Financial Officer Conference Call Participants David Windley - Jefferies Vikram Purohit - Morgan Stanley Jeff Garro - Stephens Inc. Luke Sergott - Barclays Max Smock - William Blair Wolf Chanoff - Bank of America Joy Zhang - SVB Securities Gaurav Goparaju - Berenberg Capital Markets Joe Vruwink - Baird Ope ...