RADNOR, Pa., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today shared the results from its collaboration with Ichnos Glenmark Innovation (IGI) on the first-in-human dose prediction and selection for ISB 2001. IGI's drug candidate is a trispecific T-cell engager (TCE) being studied as a potential cancer treatment. Preclinical research and biosimulation findings were recently published in Nature Cancer. This publication highlighted ISB 2 ...

RADNOR, Pa., Aug. 21, 2024 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today announced that Company management will participate in the following investor conferences: Morgan Stanley 22nd Annual Global Healthcare Conference Date and Time: Wednesday, September 4 at 4:05 p.m. ET Baird Global Healthcare Conference Date and Time: Wednesday, September 11 at 10:15 a.m. ET Live webcasts for each of the conferences will be available on Certara's investor rela ...

RADNOR, Pa., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today announced the launch of Phoenix™ version 8.5. Phoenix is the pharmaceutical industry's gold standard in pharmacokinetic/pharmacodynamic (PK/PD) and toxicokinetic modeling and simulation software. The Phoenix Platform is used by more than 75 of the top 100 pharmaceutical companies worldwide. Eleven regulatory agencies, including the U.S. FDA, Japan PMDA, and China NMPA, rely ...

Certara, Inc. (NASDAQ:CERT) Q2 2024 Earnings Conference Call August 6, 2024 5:00 PM ET Company Participants David Deuchler - Investor Relations, Gilmartin Group LLC William Feehery - Chief Executive Officer John Gallagher - Chief Financial Officer Conference Call Participants Jeff Garro - Stephens David Windley - Jefferies Dan Clark - Leerink Partners Joe Vruwink - Baird Steve Dechert - KeyBanc Operator Good day and thank you for standing by. Welcome to the Certara Second Quarter 2024 Earnings Conference Ca ...

Certara, Inc. (CERT) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -36.36%. A quarter ago, it was expected that this company would post earnings of $0.10 per share when it actually produced earnings of $0.10, delivering no surprise. Over the last four quarters, the company has not ...

Second Quarter 2024 Financial Results August 6, 2024 © Copyright 2024 Certara, L.P. All rights reserved. Disclaimer Numerical figures in the presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. In addition, unless otherwise indicated, references to the "Company," "Certara," "we," "us," and "our" refer to Certara, Inc. and its consolidated subsidiaries. Trademarks and Servi ...

Revenue and Financial Performance - Revenue for Q2 2024 increased to $93.3 million, up from $90.5 million in Q2 2023, representing a 3.2% growth[14] - Total revenue for the six months ended June 30, 2024 was $189.967 million, compared to $180.751 million for the same period in 2023[62] - Total revenues increased by $2.9 million (3%) to $93.3 million for Q2 2024 compared to Q2 2023, driven by growth in software product offerings[168] - Software revenues increased by $4.5 million (13%) to $38.2 million for Q2 2024, driven by strong demand from existing customers and new client expansions[169] - Services revenues decreased by $1.6 million (3%) to $55.1 million for Q2 2024, primarily due to a decline in consulting services revenue[169] - Total revenues increased by $9.2 million (5%) to $190.0 million for the six months ended June 30, 2024, with software revenues growing $10.8 million (16%) due to strong demand and client expansions[183] - Revenue from the Americas region for the six months ended June 30, 2024 was $138,784, compared to $135,190 for the same period in 2023[111] - Revenue from the EMEA region for the six months ended June 30, 2024 was $38,088, compared to $32,025 for the same period in 2023[111] - Revenue from the Asia Pacific region for the six months ended June 30, 2024 was $13,095, compared to $13,536 for the same period in 2023[111] - Software licenses transferred over time generated $48.685 million in revenue for the six months ended June 30, 2024, up from $37.677 million in 2023[62] Net Income and Loss - Net loss for Q2 2024 was $12.6 million, compared to a net income of $4.7 million in Q2 2023[14] - Net loss for the period ending June 30, 2024, was $12,574 thousand[16] - Net income for the period ending June 30, 2023, was $4,706 thousand[17] - Net income for the six months ended June 30, 2024 was a loss of $17.257 million, compared to a profit of $6.064 million in the same period in 2023[18] - Net loss available to common shareholders for the six months ended June 30, 2024 was $(17,257), compared to net income of $6,064 for the same period in 2023[117] - Net loss was $12.6 million for the three months ended June 30, 2024, a $17.3 million decrease compared to net income of $4.7 million in the same period of 2023, driven by increased operating expenses and cost of revenue[182] - Net loss was $17.3 million for the six months ended June 30, 2024, a $23.3 million decrease from net income of $6.1 million in 2023, primarily due to a $32.0 million increase in operating expenses[195] Operating Expenses - Operating expenses for Q2 2024 rose to $62.5 million, up from $41.2 million in Q2 2023, primarily due to increased general and administrative costs[14] - Research and development expenses for Q2 2024 were $9.1 million, up from $7.9 million in Q2 2023[14] - Cost of revenues increased by $3.6 million (10%) to $39.8 million for Q2 2024, mainly due to higher employee-related costs and intangible asset amortization[171] - Sales and marketing expenses increased by $4.1 million (51%) to $12.2 million for Q2 2024, driven by headcount growth and higher commission expenses[172] - Research and development expenses increased by $1.2 million (15%) to $9.1 million for Q2 2024, primarily due to investments in AI integration and software development[173] - General and administrative expenses increased by $13.8 million (97%) to $28.1 million for the three months ended June 30, 2024, driven by stock-based compensation, employee-related costs, and transaction expenses[175] - Cost of revenues increased by $8.0 million (11%) to $79.1 million for the six months ended June 30, 2024, primarily due to employee-related costs and stock-based compensation[184] - Sales and marketing expenses increased by $6.8 million (42%) to $22.9 million for the six months ended June 30, 2024, driven by employee-related costs and commission expenses[186] - Research and development expenses increased by $3.9 million (23%) to $21.1 million for the six months ended June 30, 2024, mainly due to investments in software development and AI integration[187] - General and administrative expenses increased by $17.0 million (50%) to $51.1 million for the six months ended June 30, 2024, primarily due to employee-related costs and stock-based compensation[188] Assets and Liabilities - Total assets decreased slightly to $1.54 billion as of June 30, 2024, from $1.56 billion as of December 31, 2023[13] - Cash and cash equivalents stood at $224.6 million as of June 30, 2024, down from $235.0 million as of December 31, 2023[13] - Accounts receivable increased to $90.4 million as of June 30, 2024, from $84.9 million as of December 31, 2023[13] - Long-term debt increased to $293.7 million as of June 30, 2024, from $288.2 million as of December 31, 2023[13] - Accumulated deficit grew to $133.5 million as of June 30, 2024, from $116.2 million as of December 31, 2023[13] - Total stockholders' equity as of June 30, 2024, was $1,043,401 thousand, a decrease from $1,054,358 thousand as of April 1, 2024[16] - Accumulated deficit increased to $(133,487) thousand as of June 30, 2024, from $(120,913) thousand as of April 1, 2024[16] - Treasury shares increased to 882,883 shares as of June 30, 2024, from 496,792 shares as of April 1, 2024[16] - Total assets as of June 30, 2024 were $153,102 thousand, with money market funds accounting for $147,478 thousand and interest rate swap assets at $5,624 thousand[35] - Contingent liabilities decreased from $54,457 thousand at December 31, 2023 to $45,994 thousand at June 30, 2024, with payments of $14,133 thousand and fair value remeasurement of $5,670 thousand[37] - Cash and cash equivalents decreased from $234,951 thousand at December 31, 2023 to $224,599 thousand at June 30, 2024[38] - Accounts receivable, net increased from $84,857 thousand at December 31, 2023 to $90,378 thousand at June 30, 2024, with unbilled receivables rising from $10,405 thousand to $16,913 thousand[40] - Allowances for credit losses increased from $1,312 thousand at December 31, 2023 to $1,968 thousand at June 30, 2024, with a provision for credit losses of $807 thousand[41] - Long-term debt increased to $300 million as of June 30, 2024, up from $294.45 million as of December 31, 2023[85] - Long-term debt maturities as of June 30, 2024 total $300,000 thousand, with $286,500 thousand maturing after 2028[87] - Total lease liabilities as of June 30, 2024 are $15,870 thousand, up from $11,330 thousand at December 31, 2023[89] - Total future lease payments as of June 30, 2024 amount to $18,419 thousand, with imputed interest of $2,549 thousand[90] - Accrued expenses as of June 30, 2024 total $55,613 thousand, down from $56,779 thousand at December 31, 2023[91] - Total other long-term liabilities as of June 30, 2024 are $23,542 thousand, down from $39,209 thousand at December 31, 2023[92] Equity and Compensation - Equity-based compensation expense, net of forfeiture, was $9,783 thousand for the period ending June 30, 2024[16] - Common shares issued for employee share-based compensation totaled 1,081,434 shares, with a stock amount of $11 thousand[16] - Equity-based compensation expense, net of forfeiture, was $3,610 thousand for the period ending June 30, 2023[17] - Equity-based compensation expenses for the three months ended June 30, 2024 were $9,783, compared to $3,610 for the same period in 2023[105] - Non-vested restricted stock as of June 30, 2024 is 405,447 shares with a weighted average grant date fair value of $23.24[98] - Non-vested RSUs as of June 30, 2024 total 3,567,171 units with a weighted average grant date fair value of $20.16[101] - Non-vested PSUs as of June 30, 2024 are 763,134 units with a weighted average grant date fair value of $21.08[104] Acquisitions and Investments - The company completed the acquisition of Formedix Limited for a total estimated consideration of $41.389 million, with $25.062 million allocated to goodwill[71][73] - The acquisition of Applied BioMath, LLC was completed for a total estimated consideration of $36.594 million, with $15.872 million allocated to goodwill[74] - The company completed the acquisition of Formedix for $41.4 million, with $11.7 million allocated to developed technology and $25.1 million to goodwill[160] - The company acquired Applied BioMath for $36.6 million, with $4.6 million allocated to developed technology and $15.9 million to goodwill[162] - The company acquired Drug Interaction Solutions for $8.3 million, with $5.6 million allocated to database content/technology and $2.3 million to goodwill[158] - Contingent consideration for acquisitions is remeasured at fair value each reporting period, with changes recorded in earnings[164] - The company has completed 20 acquisitions since 2013, with 13 involving software or technology[67] Cash Flow and Debt - Net cash provided by operating activities decreased to $14.110 million in the first half of 2024, down from $28.015 million in the first half of 2023[18] - Capitalized software development costs increased to $8.651 million in the first half of 2024, up from $6.270 million in the same period in 2023[18] - Net cash from operating activities was $14.1 million for the six months ended June 30, 2024, a decrease of $13.9 million compared to $28.0 million in 2023[196][199] - Cash and cash equivalents totaled $224.6 million as of June 30, 2024, with $42.5 million held outside the United States[199][200] - Net cash used in investing activities decreased by $4.8 million to $9.7 million for the six months ended June 30, 2024, primarily due to a $7.6 million decrease in cash used for business acquisitions[207] - The company amended its Credit Agreement on June 26, 2024, extending the term loan to $300.0 million with a maturity date of June 26, 2031, and the revolving credit commitment to $100.0 million with a termination date of June 26, 2029[209][210] Earnings Per Share and Adjusted Metrics - Basic and diluted net loss per share for Q2 2024 was $0.08, compared to a net income per share of $0.03 in Q2 2023[14] - Basic earnings per common share for the six months ended June 30, 2024 was $(0.11), compared to $0.04 for the same period in 2023[117] - Diluted earnings per common share for the six months ended June 30, 2024 was $(0.11), compared to $0.04 for the same period in 2023[117] - Adjusted EBITDA for Q2 2024 was $26.3 million, down from $32.4 million in Q2 2023, while six-month adjusted EBITDA for 2024 was $55.5 million, compared to $64.7 million in 2023[143] - Adjusted net income for Q2 2024 was $11.4 million, a decrease from $18.4 million in Q2 2023, and six-month adjusted net income for 2024 was $27.9 million, down from $37.7 million in 2023[145] - Adjusted diluted earnings per share for Q2 2024 were $0.07, compared to $0.12 in Q2 2023, and six-month adjusted diluted EPS for 2024 was $0.17, down from $0.24 in 2023[147] Market and Regulatory Environment - The company has operations in 20 countries including the United States, China, Japan, and several European nations[20] - Regulatory acceptance of model-informed biopharmaceutical development has increased demand for the company's products and services[133] - Changes in government or regulatory policies could impact the demand for the company's regulatory services[134] - The biosimulation market is highly competitive, with key factors including model functionality, regulatory acceptance, and integration capabilities[135] - Macroeconomic conditions such as inflation, interest rates, and geopolitical conflicts may pose challenges, but the company believes it is well-equipped to manage them[137] Fair Value and Contingent Liabilities - The company utilizes Monte Carlo and Black-Scholes-Merton models to estimate fair value of contingent consideration liabilities for business acquisitions[33] - Money market funds totaling $151.338 million were classified as Level 1 assets in the fair value hierarchy as of June 30, 2024[34] - Contingent liabilities of $45.994 million were classified as Level 3 liabilities in the fair value hierarchy as of June 30, 2024[34] - The company is evaluating the impact of new FASB accounting standards on segment reporting and income tax disclosures[26][27] - Contingent liabilities decreased from $54,457 thousand at December 31, 2023 to $45,994 thousand at June 30, 2024, with payments of $14,133 thousand and fair value remeasurement of $5,670 thousand[37] Interest Rate and Derivative Instruments - The interest rate swap agreement has a notional amount of $230,000 thousand, a fixed rate of 2.8%, and a termination date of August 31, 2025, with a fair value of $5,603 thousand at June 30, 2024[45] - Derivative gains reclassified from accumulated other comprehensive income were $1,526 thousand and $3,051 thousand for the three and six months ended June 30, 2024, respectively[46] - The effective interest rate on the term loan debt was 9.2% for the six months ended June 30, 2024, compared to 8.4% for the same period in 2023[84] - Interest expense increased by $0.2 million (2%) to $11.3 million for the six months ended June 30, 2024, driven by a $1.1 million increase in floating rate term loan debt[191] Contract Assets and Liabilities - Contract assets increased from $10,405 thousand at December 31, 2023 to $16,913 thousand at June 30, 2024, while contract liabilities increased slightly from $61,748 thousand to $62,179 thousand[57] - The company recognized $45,783 thousand in revenue related to contract liabilities at December 31, 2023, and expects to recognize $101,546 thousand (84.3%) of the $120,444 thousand unsatisfied performance obligations over the next 12 months[58] - Capitalized contract acquisition costs increased to $733 thousand as of June 30, 2024, up from $655 thousand as of December 31, 2023[60] Tax and Other Financial Metrics - The company's global effective tax rate for the six months ended June 30, 2024 was 3%, compared to 44% for the same period in 2023[113] - Income tax benefit was $0.4 million with an effective tax rate of 3% for the six months ended June 30, 2024, compared to a tax expense of $4.8 million (44% effective rate) in the same period of 2023[194] - Net other income increased by $2.4 million (161%) to $4.0 million for the six months ended June 30, 2024, primarily due to a $1.5 million increase in interest income and a $1.0 million remeasurement gain from foreign currency fluctuations[192][193] Bookings and Retention Rates - Quarterly bookings for Q1 2024 were $105.8 million, a decrease from Q1 2023's $112.7 million, while Q2 2024 bookings were $98.9 million, up from Q2 2023's $85.9 million[131] - Net software retention rates remained strong, with Q1 2024 at 114.1%, Q2 2024 at 108%, Q1 2023 at 110.5%, and Q2 2023 at 111.3%[131] Strategic Investments and Future Plans - The company plans to continue investing in scientific talent, sales and marketing, R&D, and international expansion to support growth[132] - The company made a combined payment of $14,133 on contingent consideration during

RADNOR, Pa., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its financial results for the second quarter of fiscal year 2024. Second Quarter Highlights: Revenue was $93.3 million, compared to $90.5 million in the second quarter of 2023, representing growth of 3%. Software revenue was $38.2 million, compared to $33.7 million in the second quarter of 2023, representing growth of 13%. Services revenue was $55.1 million, compare ...

Combined organization brings broader predictive capabilities to drug discovery at scale RADNOR, Pa., July 09, 2024 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today announced it has signed a definitive agreement to acquire Chemaxon, a leading provider of cheminformatics software. The transaction is expected to close in the second half of 2024, subject to regulatory approval and other customary closing conditions. In 2024, Chemaxon is expected to gene ...

Certara, excluding Chemaxon, is reiterating 2024 revenue, adjusted EBITDA margin, and adjusted diluted earnings per share guidance consistent with the May 7th earnings call. Following transaction close, Certara will update its 2024 guidance to include contribution from Chemaxon and expects to maintain its 2024 adjusted EBITDA margin guidance of 31-33%. Media Contact: Reiterates full year 2024 guidance Forward-Looking Statements Chemaxon develops leading software products for chemical structure drawing, prop ...