Core Viewpoint - Simulations Plus, Inc (SLP) is expected to report its second-quarter fiscal 2025 results on April 3, 2025, with anticipated revenue growth and earnings increase compared to the previous year [1][2][3]. Financial Performance - The Zacks Consensus Estimate for fiscal second-quarter revenues is $21.76 million, reflecting an 18.8% growth from the same quarter last year [2]. - The consensus estimate for earnings is 25 cents per share, indicating a 25% increase from the prior-year level [3]. - In the last reported quarter, adjusted earnings were 17 cents per share, down 5.5% year over year, missing the Zacks Consensus Estimate of 18 cents per share [4]. Business Segments - Revenue from the software business unit is expected to show steady momentum, driven by the adoption of products like GastroPlus, MonolixSuite, and ADMet Predictor [5]. - The Adaptive Learning & Insights (ALI) and Medical Communications (MC) divisions generated $3.7 million in revenues during the first fiscal quarter, contributing positively to the company's growth prospects [6]. Market Position and Strategy - SLP is actively supporting the development of drugs approved by the FDA in 2024 and is expanding its business pipeline for the GastroPlus platform [7]. - Despite facing temporary challenges in services revenues due to client-driven data delays, strong bookings in the Clinical Pharmacology & Medical Communications units suggest potential revenue realization in the upcoming quarter [8]. Revenue Estimates - The Zacks Consensus Estimate for Software and Services revenues in the fiscal second quarter is $12.78 million and $9.03 million, respectively [9]. - The company remains optimistic about initial budget discussions with clients for 2025, indicating potential improvements in client spending despite concerns over soft client funding and budget cycles [9]. Earnings Prediction - The current model does not predict an earnings beat for SLP, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell) [10][11].

Earnings Performance - Simulations Plus reported Q1 fiscal 2025 adjusted earnings of 17 cents per share, a 5.6% YoY decline, missing the Zacks Consensus Estimate of 18 cents [1] - Quarterly revenues surged 31% YoY to $18.9 million, driven by higher Software segment revenues and the Pro-ficiency acquisition, surpassing the Zacks Consensus Estimate by 1.3% [2][3] - Organic revenue growth was 5% during the quarter [3] Revenue Breakdown - Software segment revenues (57% of total) rose 41% YoY to $10.7 million, driven by new customer wins and increased sales with existing customers [4] - GastroPlus, MonolixSuite, ADMET Predictor, ALI, and Others contributed 38%, 21%, 12%, 16%, and 13% respectively to total software revenues [4] - Services revenues (43%) improved 19% to $8.2 million, though organic revenues declined 9% due to client-driven data delays [8] Operational Metrics - Total operating expenses as a percentage of revenues decreased to 53% from 56% YoY [5] - Income from operations was $0.1 million compared to $1 million YoY [5] - Adjusted EBITDA margin increased to 24% from 23% in the prior-year quarter [5] Balance Sheet - Cash and short-term investments stood at $18.2 million as of Nov. 30, 2024, down from $20.3 million at the end of the prior-year period [6] Future Outlook - Simulations Plus expects revenues between $90 million and $93 million for fiscal 2025, indicating a 28-33% increase from fiscal 2024 [7] - The Pro-ficiency acquisition is expected to contribute an additional $15-$18 million to revenues [7] - The company anticipates the Software segment to account for 55-60% of total revenues, with adjusted EPS between $1.07 and $1.20 and adjusted EBITDA margin between 31% and 33% [7] Customer Metrics - The renewal rate for commercial customers was 83% (based on accounts) and 95% (based on fees), compared to 84% and 100% in the prior quarter [8] - Services backlog was $17.3 million at the end of the quarter, down 8.5% YoY due to cost-driven pullback by customers [9] Segment Performance - Quantitative Systems Pharmacology software and Clinical Pharmacology & Pharmacometrics business saw YoY declines of 14% and 6%, respectively [9] - Sales of the PBPK unit were down 9% YoY [9] Gross Margins - Gross margin for the quarter was 54%, down from 62% in the prior-year quarter [10] - Software segment gross margin was 75%, down from 87%, affected by higher costs related to the amortization of capitalized software development costs from the Pro-ficiency acquisition [10] - Services gross margin was 26%, down from 36%, due to lower organic segmental revenues [10] Industry Comparison - BlackBerry reported Q3 fiscal 2025 non-GAAP EPS of 2 cents, better than the estimated loss of 1 cent to EPS of 1 cent, with quarterly revenues of $162 million, down 7.4% YoY [13] - Ciena Corporation reported Q4 fiscal 2024 adjusted EPS of 54 cents, missing the Zacks Consensus Estimate of 66 cents, with quarterly revenues dipping 0.5% YoY to $1,124.1 million [14] - Guidewire Software reported Q1 fiscal 2025 non-GAAP EPS of 43 cents, surpassing the Zacks Consensus Estimate by 43.3%, with revenues of $262.9 million, up 27% YoY [15]

Revenue and Profitability - Revenue increased by $4.4 million, or 31%, to $18.9 million for the three months ended November 30, 2024, compared to $14.5 million for the same period in 2023[123] - Gross profit increased by $0.4 million, or 4%, to $10.2 million for the three months ended November 30, 2024, compared to $9.8 million for the same period in 2023[125] - Net income decreased by $1.7 million, or 89%, to $0.2 million for the three months ended November 30, 2024, compared to $1.9 million for the same period in 2023[125] Expenses - Research and development costs increased by $0.4 million, or 19%, to $2.6 million for the three months ended November 30, 2024, compared to $2.2 million for the same period in 2023[129] - Sales and marketing expenses increased by $0.9 million, or 43%, to $2.9 million for the three months ended November 30, 2024, compared to $2.0 million for the same period in 2023[130] - Stock-based compensation costs were $1.7 million for the three months ending November 30, 2024, compared to $1.3 million in 2023[166] Cash Flow and Investments - Net cash used in operating activities was $1.3 million for the three months ended November 30, 2024, compared to net cash provided of $0.2 million for the same period in 2023[138] - Net cash used in investing activities was $3.1 million for the three months ended November 30, 2024, compared to $16.9 million for the same period in 2023[141] - Cash, cash equivalents, and short-term investments totaled $18.2 million as of November 30, 2024[137] Acquisitions and Obligations - The Company acquired Pro-ficiency for an aggregate purchase price of $100 million in cash, with $1 million placed in escrow for post-closing adjustments[145] - The Company has a remaining obligation of up to $5.5 million related to the Immunetrics acquisition, expected to be paid in early 2025[148] - As of November 30, 2024, $30 million remains available for share repurchases under the authorized program, with no shares repurchased in the last three months[149] Tax and Financial Reporting - The effective tax rate increased to 24% for the three months ended November 30, 2024, compared to 19% for the same period in 2023[133] - There were no changes in internal controls over financial reporting that materially affected the Company's internal control during the most recent fiscal quarter[169] Software Development and Amortization - Capitalized computer software development costs were $0.7 million for the three months ended November 30, 2024, compared to $0.9 million for the same period in 2023[154] - Amortization of software development costs amounted to $0.8 million for the three months ended November 30, 2024, up from $0.4 million in 2023[155] Goodwill and Impairment - The Company performed goodwill impairment tests at the reporting unit level, with six reporting units identified as of November 30, 2024[159] - No impairment losses were recorded for intangible assets during the three months ended November 30, 2024 and 2023[161] Insurance and Coverage - The Company obtained a buyer's representation and warranty insurance policy providing up to $10 million in coverage for breaches related to the Pro-ficiency acquisition[147]

Financial Data and Key Metrics - The company has updated its quarterly earnings presentation, which serves as a supplement to the prepared remarks for the Q1 fiscal 2025 financial results [3] - The information discussed may include forward-looking statements involving risks and uncertainties, with words like "believe," "expect," and "anticipate" referring to the company's best estimates as of the call [4] - Management may mention non-GAAP financial measures during the remarks or responses to questions, with reconciliations to the most directly comparable GAAP measures provided [5] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific details on company strategy or industry competition were provided in the content Management Commentary on Operating Environment and Future Outlook - No specific commentary on the operating environment or future outlook was provided in the content Other Important Information - The conference call is being recorded, and participants are initially in listen-only mode, with a Q&A session to follow the formal presentation [1] - The updated earnings presentation can be accessed on the company's Investor Relations website [3] Q&A Session Summary - No questions or answers were provided in the content, as the Q&A session had not yet commenced at the time of the provided content [1][3]

Earnings Call – Q1 - FY25 January 7, 2025 1 Safe Harbor Statement Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like "believe," "expect," and "anticipate" mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors ...

Core Viewpoint - Simulations Plus reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.18 per share, but showing an increase from $0.10 per share a year ago, indicating a -5.56% earnings surprise [1] Financial Performance - The company posted revenues of $18.92 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 1.25%, and up from $14.5 million year-over-year [2] - Over the last four quarters, Simulations Plus has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Simulations Plus shares have increased approximately 4.3% since the beginning of the year, outperforming the S&P 500's gain of 1.6% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.28 for the coming quarter and $1.11 for the current fiscal year, alongside revenues of $23.46 million and $90.87 million respectively [7] - The estimate revisions trend for Simulations Plus is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Computer - Software industry, to which Simulations Plus belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Another company in the same industry, PTC Inc., is expected to report quarterly earnings of $0.91 per share, reflecting a year-over-year decline of 18% [9]

Revenue Growth - Total revenue increased by 31% year-over-year to $18.9 million, driven primarily by strong software growth[1] - Software revenue grew by 41% to $10.7 million, representing 57% of total revenue, while services revenue increased by 19% to $8.2 million, accounting for 43% of total revenue[6] - The company expects fiscal 2025 revenue guidance to be between $90 million and $93 million, with a revenue growth rate of 28% to 33%[5] - Total revenue for FY24 reached $70.013 million, with Q1 revenue at $14.500 million and Q4 revenue at $18.664 million, showing a steady growth throughout the year[23] - Software revenue accounted for $41.024 million in FY24, with Q2 showing the highest quarterly revenue of $11.614 million[23] - The Americas region generated $50.473 million in revenue for FY24, accounting for the majority of total revenue[23] Profitability - The company achieved a gross profit of $10.2 million, resulting in a gross margin of 54%[6] - Net income for the quarter was $0.2 million, with diluted EPS of $0.01, compared to net income of $1.9 million and diluted EPS of $0.10 in the same quarter last year[6] - Adjusted EBITDA was $4.5 million, representing 24% of total revenue, compared to $3.4 million or 23% of total revenue in the prior year[6] - Adjusted EBITDA for FY24 was $20.257 million, with Q2 contributing $7.135 million, indicating strong operational performance[25] - Net income for FY24 totaled $9.954 million, with Q2 net income at $4.029 million, reflecting a significant increase compared to other quarters[27] - Adjusted diluted EPS for FY24 was $0.95, with Q2 adjusted diluted EPS at $0.32, reflecting improved profitability[27] Operational Performance - The gross margin for total revenue in FY24 was 61.6%, with software gross margin at 84.2% and services gross margin at 29.7%[23] - Cash flow from operations for FY24 was $13.320 million, with Q2 cash flow at $5.810 million, indicating strong liquidity[23] - The backlog for services stood at $17.254 million in Q1 FY25, showing a healthy pipeline for future revenue[23] Business Unit Performance - MonolixSuite™ contributed significantly with a growth rate of 43%, and the Quantitative Systems Pharmacology (QSP) business unit saw a 40% growth due to strong demand in specific disease areas[3] - Services revenue faced temporary headwinds due to client-driven data delays, but bookings were strong in Clinical Pharmacology & Pharmacometrics and Medical Communications[4] - The integration of Adaptive Learning and Insights (ALI) and Medical Communications (MC) business units is progressing well, with expectations for stronger momentum in the latter half of fiscal 2025[5] Customer Metrics - The average revenue per customer in the commercial segment was $94.0 thousand in Q1 FY25, demonstrating an increase from previous quarters[23]

Simulations Plus, Inc (SLP) is slated to release first-quarter fiscal 2025 results on Jan. 7.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $18.7 million, which indicates growth of 28.9% from the year-ago quarter’s reported figure.The consensus mark for earnings is pegged at 18 cents per share, indicating increase of 80% from the prior-year levels. The company’s earnings have surpassed the Zacks Consensus ...

Simulations Plus (SLP) closed the last trading session at $32.74, gaining 6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $51.40 indicates a 57% upside potential.The mean estimate comprises five short-term price targets with a standard deviation of $9.76. While the lowest estimate of $39 indicates a 19.1% increase from the current price level, the most optimistic analyst expects ...

Core Viewpoint - Simulations Plus (SLP) experienced an 8.9% increase in share price, closing at $30.04, following a significant volume of trading, contrasting with an 18.8% decline over the previous four weeks [1] Financial Performance - The increase in share price is attributed to strong topline performance driven by synergies from acquisitions and organic growth, with new customer acquisitions and increased sales in the Software segment contributing positively [2] - In the last reported quarter, the company achieved an organic revenue growth of 14%, excluding a $2.3 million contribution from the Pro-ficiency acquisition [3] Revenue Projections - For fiscal 2025, Simulations Plus anticipates revenues between $90 million and $93 million, indicating a growth of 28-33% from fiscal 2024 revenues, with organic growth projected between 10% and 15% [4] - The Pro-ficiency acquisition is expected to add an additional $15 million to $18 million to revenues, enhancing the financial outlook [4] Grants and Collaborations - Simulations Plus secured a grant from the U.S. Food and Drug Administration to support the use of its GastroPlus software in pharmacokinetic modeling, in collaboration with the University of Connecticut's School of Pharmacy [5] Earnings Expectations - The company is projected to report quarterly earnings of $0.18 per share, reflecting an 80% year-over-year increase, with revenues expected to reach $18.69 million, up 28.9% from the previous year [6] - The consensus EPS estimate for the quarter has been revised 105.9% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [7] Industry Context - Simulations Plus operates within the Zacks Computer - Software industry, where Autodesk (ADSK) also resides, having closed 2.5% higher recently and showing a 7.5% return over the past month [7]