Core Insights - Simulations Plus (SLP) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.20 per share a year ago, representing a 24% earnings surprise [1] - The company achieved revenues of $22.43 million for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 3.11% and increasing from $18.31 million year-over-year [2] - Simulations Plus has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Financial Performance - The company's earnings surprise of 24% indicates strong performance relative to expectations, while the previous quarter saw a slight miss with actual earnings of $0.17 compared to an expected $0.18, resulting in a -5.56% surprise [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.34, with projected revenues of $24.97 million, and for the current fiscal year, the consensus EPS is $1.09 on revenues of $90.38 million [7] Market Position - Simulations Plus shares have declined approximately 11.2% since the beginning of the year, contrasting with the S&P 500's decline of -3.6% [3] - The Zacks Industry Rank places the Computer - Software sector in the top 28% of over 250 Zacks industries, indicating a favorable industry outlook [8] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current estimate revisions trend for Simulations Plus is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Revenue Growth - Total revenue increased by 23% year-over-year to $22.4 million, with software revenue growing by 16% to $13.5 million and services revenue increasing by 34% to $8.9 million[6] - The Quantitative Systems Pharmacology (QSP) business unit experienced significant growth of 89%, primarily due to a new model license in atopic dermatitis[4] - The company maintains its full-year revenue guidance of $90 million to $93 million, representing a growth of 28% to 33%[7] - Revenue for FY25 is projected to reach $70,013,000, up from $41,356,000 in FY24, indicating a growth of approximately 69.3%[24] - Software revenue for Q1 FY25 was $9,913,000, a significant increase from $7,589,000 in Q1 FY24, reflecting a growth of about 30.6%[24] Profitability Metrics - Adjusted EBITDA for the second quarter was $6.6 million, representing 29% of total revenue, compared to $7.1 million or 39% of total revenue in the previous year[6] - Adjusted EBITDA for FY25 is expected to be $20,257,000, compared to $11,071,000 in FY24, which is an increase of approximately 83.0%[26] - Net income for the second quarter was $3.1 million, with diluted EPS of $0.15, down from net income of $4.0 million and diluted EPS of $0.20 in the same quarter last year[6] - Net income for FY25 is projected at $9,954,000, up from $3,280,000 in FY24, representing a growth of about 203.5%[26] - Total adjusted net income for FY 2024 is projected to be $19.353 million, with a diluted EPS of $0.95[28] Backlog and Bookings - Services bookings contributed to a 13% year-over-year increase in backlog, which ended the quarter at $20.4 million[5] - The backlog for services as of Q1 FY25 was $20,379,000, compared to $17,254,000 in Q1 FY24, indicating an increase of about 12.3%[24] Asset and Liability Management - Total assets increased to $201,427,000 as of February 28, 2025, up from $196,639,000 on August 31, 2024, representing a growth of approximately 1.4%[22] - Total current assets rose to $46,717,000, compared to $39,341,000 in the previous period, marking an increase of about 18.5%[22] - Total liabilities decreased to $11,879,000 from $14,208,000, a reduction of about 16.5%[22] Operating Performance - The company reported a gross profit of $13.1 million, resulting in a gross margin of 59% for the second quarter[6] - Operating margin for Q2 FY25 is projected at 12.1%, up from 8.8% in FY24, reflecting an improvement of approximately 2.3 percentage points[24] Expenses and Adjustments - The company incurred $2.641 million in mergers & acquisitions expenses for FY 2024, with a significant portion occurring in Q3[28] - Amortization expenses totaled $5.163 million for FY 2024, with $2.059 million recorded in Q4[28] - Stock-based compensation for FY 2024 reached $5.940 million, with Q2 showing the highest expense at $1.665 million[28] - The company reported a total of $0.386 million in currency exchange losses for FY 2024[28] - The tax effect on adjustments for FY 2024 was a reduction of $2.320 million[28] Future Outlook - The company is well-positioned to maintain momentum in the second half of 2025 despite a constrained funding environment for biopharma customers[7] - The software revenue mix is expected to be between 55% and 60% for fiscal 2025[7] - The company expects continued growth in adjusted net income and EPS for FY 2025, with Q1 guidance indicating $3.280 million in net income[28]

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]

Financial Performance - Q1 FY25 - Revenue reached $18.9 million, a 31% increase compared to $14.5 million in Q1 FY24[4, 12] - Adjusted EBITDA margin was 24%, up from 23% in Q1 FY24[4] - Diluted EPS was $0.01, compared to $0.10 in Q1 FY24[4] - Adjusted Diluted EPS was $0.17, slightly down from $0.18 in Q1 FY24[4] Financial Performance - Trailing Twelve Months (TTM) 1Q25 - Revenue reached $74.4 million, a 20% increase compared to $62.1 million in the prior year[5] - Adjusted EBITDA margin was 29%, down from 34% in the prior year[5] - Diluted EPS was $0.40, compared to $0.52 in the prior year[5] - Adjusted Diluted EPS was $0.94, compared to $1.06 in the prior year[5] Revenue Breakdown - Software revenue grew by 41% in Q1 FY25 and 16% for TTM[6] - Services revenue grew by 19% in Q1 FY25 and 26% for TTM[8] Fiscal 2025 Guidance - The company projects total revenue between $90 million and $93 million, representing a growth of 28% to 33%[35] - The company anticipates a software revenue mix of 55% to 60%[35] - Adjusted EBITDA margin is expected to be between 31% and 33%[35] - Adjusted Diluted EPS is projected to be between $1.07 and $1.20[35]

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 ...