Simulations Plus(SLP)2025-04-03 20:05Revenue 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]