Core Insights - Certara, Inc. reported strong financial performance in Q1 2025, with total revenue of $106.0 million, reflecting a year-over-year growth of 10% [4][8] - The company is well-positioned to capitalize on the growing adoption of biosimulation in drug development, supported by recent FDA initiatives to reduce animal testing [3][4] - Certara reiterated its full-year 2025 financial guidance, expecting revenue between $415 million and $425 million, with an adjusted EBITDA margin of 30-32% [15][20] Financial Performance - Total revenue for Q1 2025 was $106.0 million, up from $96.7 million in Q1 2024, marking a 10% increase [4][8] - Software revenue reached $46.4 million, an 18% increase year-over-year, while services revenue was $59.6 million, growing 4% [5][8] - Total bookings for Q1 2025 were $118.2 million, a 12% increase from the previous year, with software bookings growing by 23% [6][13] Profitability Metrics - Net income for Q1 2025 was $4.7 million, a significant turnaround from a net loss of $4.7 million in Q1 2024 [11][12] - Adjusted EBITDA for the quarter was $34.8 million, representing a 20% increase from $29.1 million in Q1 2024 [10][12] - Adjusted diluted earnings per share were $0.14, compared to $0.10 in the same quarter last year [12][13] Cost and Expense Management - Total operating expenses decreased to $56.9 million in Q1 2025 from $58.7 million in Q1 2024, primarily due to a reduction in contingent consideration expenses [9][11] - The cost of revenue for the quarter was $41.5 million, up from $39.3 million in the previous year, driven by increased software amortization [7][8] Market Position and Outlook - Certara's leadership in biosimulation technology positions it favorably in the biopharma industry, with over 2,400 clients globally [18] - The company continues to focus on enhancing its software and service offerings to improve drug development efficiency [3][4] - Certara's financial outlook for 2025 remains optimistic, with expectations for continued growth in both revenue and profitability metrics [15][20]