Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $17.8 million, up from $15.8 million in Q1 2024, representing a year-over-year growth of 13% [31] - On a constant currency basis, revenue growth was 15%, with foreign exchange headwinds negatively impacting reported revenue by approximately $0.4 million [31] - Adjusted EBITDA loss improved by 24% year-over-year to $9.8 million in Q1 2025 [35] - Adjusted gross margin reached a record high of 75.7%, up from 70.6% in Q1 2024 [33] Business Line Data and Key Metrics Changes - Core genomic customers increased to 490 as of March 31, 2025, up from 463 in the prior year [31] - The company implemented 33 new customers in Q1 2025, compared to an average of 23 per quarter in 2024 [8][47] - Hematology-oncology (HemOnc) volumes grew 34% year-over-year in Q1 2025, with over 180 HemOnc customers globally [20] Market Data and Key Metrics Changes - Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year [9] - UK analysis volume grew over 60% year-over-year, with UK revenue up approximately 80% [19] - In Asia Pacific, North America and Asia Pacific outperformed with 3240% year-over-year volume growth [18] Company Strategy and Development Direction - The company aims to capitalize on new customer signings by expediting implementation times and expanding across those accounts [8] - Focus areas for growth in 2025 include the U.S. market, new applications like MSK Access and MSK Impact, and partnerships with biopharma [10][11] - The company is positioned to leverage its scalable cloud-based platform to support medical innovations and expand its offerings in liquid biopsy and solid tumor applications [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, citing a strong start to 2025 and a solid pipeline of new business [43] - The company reaffirmed its full-year revenue guidance for 2025 of $70 million to $76 million, representing 10% to 17% growth [37] - Management noted that while Q1 results were strong, they expect the year to be back half weighted due to new business coming online [37][93] Other Important Information - The company finished Q1 2025 with cash and cash equivalents of approximately $68.5 million, with access to an additional $35 million through a financing line [36][88] - Total cash burn improved to $11.7 million in Q1 2025, down from $19.5 million in the prior year [36] Q&A Session Summary Question: Actions taken to accelerate implementation times - Management highlighted that they implemented 33 new customers in Q1 2025, up from an average of 23 in 2024, due to scaling up team capabilities and creating tooling and automation to speed up processes [47][49] Question: Average contract value increase and enterprise sales - Management confirmed that 58% of customers are using two or more applications, indicating room for expansion. The increase in average contract value is attributed to more complex solutions and enterprise-level sales [53][55] Question: Sustainability of gross margins above 75% - Management acknowledged that while Q1 gross margins were higher than expected due to a favorable mix, they anticipate continued year-over-year improvement but not at the same level in subsequent quarters [62][63] Question: Biopharma side opportunities and guidance - Management indicated that while they expect the biopharma segment to be flat in 2025, they are seeing good momentum and opportunities in the pipeline, particularly in companion diagnostics [68] Question: Impact of macro environment on capital investments - Management noted that while there is a trend of constraints on capital investments, their model operates on an OpEx basis, which may present opportunities for growth as labs seek to avoid large capital expenditures [71][73]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $17.8 million, up from $15.8 million in Q1 2024, representing a year-over-year growth of 13% [32] - On a constant currency basis, revenue growth was 15%, with foreign exchange headwinds negatively impacting reported revenue by approximately $0.4 million [32] - Adjusted EBITDA loss improved by 24% year-over-year, reaching $9.8 million in Q1 2025 compared to $12.9 million in Q1 2024 [36] - Adjusted gross margin reached a record high of 75.7%, up from 70.6% in the prior year [34] Business Line Data and Key Metrics Changes - Core genomic customers increased to 490 as of March 31, 2025, up from 463 in the prior year [32] - The company implemented 33 new customers in Q1 2025, compared to an average of 23 per quarter in 2024 [8][32] - Hematology-oncology (HemOnc) volumes grew 34% year-over-year in Q1 2025, with over 180 HemOnc customers globally [21] Market Data and Key Metrics Changes - Revenue and analysis volume from U.S. core genomic customers grew over 30% year-over-year [9] - UK analysis volume grew over 60% year-over-year, with UK revenue up approximately 80% [20] - North America and Asia Pacific outperformed with 3240% year-over-year volume growth respectively [19] Company Strategy and Development Direction - The company aims to capitalize on new customer signings by expediting implementation times and expanding across those accounts over time [8] - Focus areas for growth in 2025 include the U.S. market, new applications like MSK Access and MSK Impact, and partnerships with biopharma [9][11] - The company is positioned to leverage its scalable cloud-based platform to support medical innovations and drive future growth [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential, citing the increasing demand for data-driven medicine and the company's unique AI capabilities [44] - The company reaffirmed its full-year revenue guidance for 2025 of $70 million to $76 million, representing 10% to 17% growth [38] - Management noted that while Q1 results were strong, they expect the year to be back-half weighted due to the timing of new business coming online [38][94] Other Important Information - The company finished Q1 2025 with approximately $68.5 million in cash and cash equivalents, plus access to an additional $35 million in capital [37] - The company is focused on maintaining operational efficiencies while continuing to invest in high ROI projects [36] Q&A Session Summary Question: Actions taken to accelerate implementation times - Management highlighted that they have scaled up team capabilities, created tooling and automation, and increased headcount in wet lab and field application scientists to speed up the implementation process [48][50] Question: Average contract value increase and enterprise sales - Management confirmed that 58% of customers are using two or more applications, indicating room for expansion. They noted that enterprise sales involve signing for a majority of applications, which is driving the increase in average contract value [55][56] Question: Sustainability of gross margins above 75% - Management acknowledged that while Q1 gross margins were higher than expected due to a favorable mix, they still anticipate year-over-year improvements in gross margins moving forward [66] Question: Biopharma side opportunities and guidance - Management indicated that while they expect the biopharma segment to be flat in 2025, they are seeing good momentum and opportunities in the pipeline, particularly in companion diagnostics and sponsored testing [70] Question: Balance sheet sufficiency for adjusted EBITDA breakeven target - Management confirmed that with over $100 million in available liquidity, they are well-positioned to reach their adjusted EBITDA breakeven target by 2027 [90]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $106 million, representing a 10% year-over-year growth [19] - Total bookings for the first quarter were $118.2 million, an increase of 12% from the prior year [19] - Adjusted EBITDA for Q1 2025 was $34.8 million, up from $29.1 million in Q1 2024, with an adjusted EBITDA margin of 33% [23][24] - Net income for Q1 2025 was $4.7 million, compared to a net loss of $4.7 million in Q1 2024 [25] Business Line Data and Key Metrics Changes - Software revenue was $46.4 million, an 18% increase year-over-year, driven by biosimulation software and Pinnacle 21 [20] - Services revenue was $59.6 million, up 4% year-over-year, with strong performance in regulatory services [22] - Software bookings were $40.8 million, a 23% increase from the prior year, including $4.9 million from Chemaxon [21] Market Data and Key Metrics Changes - Chemaxon contributed $5.9 million in revenue and $4.9 million in bookings during the quarter [7] - The company experienced stable demand across biosimulation services, with growth in Tiers two and three offsetting softness in Tier one [22] Company Strategy and Development Direction - The company is focusing on integrating AI into software solutions, expanding biosimulation model development, and enhancing solutions for earlier stages of drug development [8] - Certara aims to capitalize on the FDA's announcement to phase out animal testing, which is expected to drive demand for modeling and simulation tools [10][17] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing headwinds from IRA price controls and a challenging capital raising environment for biotechs, but also highlighted new tailwinds from regulatory changes and increased AI spending [7][8] - The company is optimistic about meeting commercial goals and sees strong underlying demand from customers [11] Other Important Information - The Board authorized a $100 million share repurchase program, with approximately $25 million repurchased to date [26] - The company is actively reviewing its regulatory business and has received interest from external parties [17] Q&A Session Summary Question: Interest in Non-Animal Navigator - The company has received significant interest from various tiers of customers regarding the Non-Animal Navigator, with inquiries focused on FDA expectations and technology capabilities [30][31] Question: Net Retention Ratio (NRR) - The NRR for the quarter was 102%, lower than historical averages, attributed to timing in organic software revenue achievement [33][34] Question: Commercial Engagement Scope - Customers are interested in understanding what can be replaced with non-animal models and the potential for QSP modeling [38][39] Question: Impact of FDA Announcement - The FDA's recent announcements are expected to positively influence growth rates, but it is too early to quantify the impact [42][43] Question: Regulatory Services Performance - Regulatory services have shown strong performance due to a fully built-out commercial team and easier year-over-year comparisons [62] Question: Certara Cloud Update - The take rate on Certara Cloud is strong, with customers accessing a broader product portfolio during license renewals [87][88] Question: Preclinical Applications Penetration - The company has not disclosed specific revenue proportions from preclinical versus clinical applications but is expanding its footprint in preclinical offerings [78] Question: Future Software Additions - The company is considering additional software investments to enhance the Non-Animal Navigator product but has not made specific announcements yet [98]