Simulations Plus(SLP) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for the third quarter of fiscal 2024 increased 14% to $18.5 million compared to the same quarter in 2023[15] - Software revenue rose 12% to $11.9 million, accounting for 64% of total revenue, while services revenue increased 18% to $6.6 million, representing 36% of total revenue[15] - Gross profit remained constant at $13.3 million, with a gross margin of 71%[15] - Adjusted EBITDA for the quarter was $5.7 million, representing 31% of total revenue[15] - Net income for the quarter was $3.1 million, with diluted EPS of $0.15, down from $4.0 million and $0.20 in the same quarter last year[15] - Total revenue for the first nine months of fiscal 2024 increased 17% to $51.3 million, with software revenue at $31.1 million and services revenue at $20.2 million[5] - Adjusted EBITDA for FY 2024 YTD is reported at $9.1 million, compared to $10.0 million for the full year of 2023[32] - The company reported a net income of $4.0 million for Q3 FY 2024, compared to $4.2 million for FY 2023[32] - Net income for Q3 2023 was $4.0 million, a decrease from $4.2 million in Q2 2023, while FY 2023 net income stands at $10.0 million[45] - Adjusted EBITDA for Q3 2023 reached $6.5 million, compared to $6.2 million in Q2 2023, with FY 2023 total at $20.6 million[48] - Total revenue for Q3 2023 was $16.2 million, up from $15.8 million in Q2 2023, with FY 2023 revenue at $59.6 million[50] Guidance and Strategy - The company maintains full-year revenue guidance of $69 million to $72 million, with expected revenue growth of 15% to 20%[21] - The company has decided to discontinue its quarterly cash dividend to focus on growth initiatives, with the final dividend of $0.06 per share to be paid on August 5, 2024[22] - The company remains committed to a disciplined growth strategy aimed at delivering long-term returns for shareholders[34] Assets and Liabilities - Total assets increased to $192.7 million as of May 31, 2024, compared to $186.1 million on August 31, 2023, reflecting a growth of approximately 3.4%[29] - Cash and cash equivalents rose significantly to $109.1 million from $57.5 million, marking an increase of 89.8%[29] - Total current liabilities decreased to $11.3 million from $12.0 million, a reduction of approximately 5.6%[29] - Retained earnings increased to $30.7 million from $25.2 million, reflecting a growth of 21.9%[29] - Total shareholders' equity rose to $180.9 million from $170.0 million, an increase of approximately 6.0%[29] Business Developments - The acquisition of Pro-ficiency is progressing as planned, enhancing the company's capabilities in simulations and AI technologies[20] - The launch of GastroPlus X, a new generation of PBPK/PBBM modeling software, is expected to significantly contribute to the company's offerings[19] - The newly formed Clinical Simulations and Medical Communications (CSMC) business unit is expected to contribute approximately $3 million to fiscal 2024 revenue[34] Customer Metrics - Average Revenue per Customer in the commercial segment was $97.0 thousand, showing a decrease from $110.0 thousand in the previous quarter[30] Operational Metrics - Operating margin for Q3 2023 was 25.2%, compared to 25.6% in Q2 2023, with FY 2023 operating margin at 14.6%[48] - Cash flow from operations in Q3 2023 was $8.5 million, up from $5.5 million in Q2 2023, with FY 2023 cash flow totaling $21.9 million[48] - The backlog for services stood at $18.0 million in Q3 2023, a decrease from $19.5 million in Q2 2023[49] Expenses - Mergers & acquisitions expenses for Q3 2023 were $0.4 million, up from $0.1 million in Q2 2023, with total expenses for FY 2023 at $1.7 million[45]