Certara Reports Fourth Quarter 2024 Financial Results

Core Insights - Certara, Inc. reported strong financial results for Q4 2024, with total revenue of $100.4 million, reflecting a year-over-year growth of 14% [4][8] - The company is optimistic about its investment strategy in software and AI, aiming to enhance its biosimulation offerings and capitalize on the growing interest in biosimulation technology within the biopharmaceutical industry [3][4] - Certara provided guidance for 2025, expecting revenue between $415 million and $425 million, with adjusted EBITDA margins in the range of 30-32% [16] Financial Performance - Total revenue for Q4 2024 was $100.4 million, up from $88.0 million in Q4 2023, marking a 14% increase [4][8] - Software revenue reached $42.3 million, a 26% increase from $33.6 million in Q4 2023, driven by growth in biosimulation software [5][8] - Services revenue was $58.1 million, up 7% from $54.4 million in Q4 2023, primarily due to demand for biosimulation services [5][8] Bookings and Growth - Total bookings for Q4 2024 were $144.5 million, representing a 22% year-over-year growth [6][8] - Software bookings increased by 38% to $59.7 million, attributed to strong performance in Certara's core biosimulation software [6][8] - Services bookings grew by 12% to $84.8 million, driven by increased demand for biosimulation and regulatory services [7][8] Profitability Metrics - Net income for Q4 2024 was $6.6 million, compared to a net loss of $12.5 million in Q4 2023 [12][11] - Adjusted EBITDA for Q4 2024 was $33.5 million, a 13% increase from $29.6 million in Q4 2023 [11][12] - Adjusted net income for Q4 2024 was $24.7 million, up from $14.3 million in Q4 2023, with adjusted diluted earnings per share of $0.15 compared to $0.09 in the prior year [13][11] Cost and Expense Management - Total cost of revenue for Q4 2024 was $38.3 million, an increase from $34.1 million in Q4 2023, mainly due to higher employee-related expenses and software amortization [9][8] - Total operating expenses decreased to $56.1 million from $62.4 million in Q4 2023, primarily due to a reduction in the change in fair value of contingent consideration [10][8] 2025 Financial Outlook - Certara expects full-year 2025 revenue to be in the range of $415 million to $425 million [16] - The company anticipates adjusted EBITDA margins to remain in the low thirties for 2025 [3][16] - Adjusted diluted earnings per share for 2025 is projected to be between $0.42 and $0.46 [16]