Simulations Plus, Inc. (“Simulations Plus”), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, reported financial results for its first quarter fiscal 2024, ended November 30, 2023.
First Quarter Financial Highlights
- Total revenue increased 21% to $14.5 million
- Software revenue increased 25% to $7.6 million, representing 52% of total revenue
- Services revenue increased 17% to $6.9 million, representing 48% of total revenue
- Gross profit increased 6% to $9.8 million; gross margin was 68%
- Adjusted EBITDA of $3.4 million, representing 23% of total revenue
- Net income of $1.9 million and diluted earnings per share (EPS) of $0.10, compared to net income of $1.2 million and diluted EPS of $0.06 in the first quarter of 2023
Management Commentary
“Our first quarter performance marked a successful start to the year and was in line with our expectations,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “With these strong results, we are maintaining our guidance for the full year. Even though client funding and budget cycles remain softer than historical levels, we are cautiously optimistic that our market may be on the path to improvement.
“First quarter revenue increased 21% year-over-year, driven by higher software revenues in our Quantitative Systems Pharmacology (QSP) oncology modeling platform and our Physiologically Based Pharmacokinetics (PBPK) business unit that had a strong contribution from GastroPlus. I am proud of what our team accomplished this quarter to deliver a 67% increase in EPS.
“Today we announced in a separate press release four key strategic leadership appointments that will advance our objective to seamlessly and organically align with our clients’ needs. These appointments reflect our commitment to providing our organization with the leadership that best positions us for our next stage of growth.
“We entered the second quarter with a healthy pipeline, strong profitability, and a sound balance sheet. The underlying fundamentals of our market remain resilient as demand for modeling and simulation tools continues to play a greater role in drug development workflow. We remain focused on continuing to produce disciplined growth that delivers long-term returns for our shareholders.”
Fiscal 2024 Guidance
|
Fiscal 2024 Guidance |
Annual Increase |
|
|
Revenue |
$66M - $69M |
10 - 15% |
|
Software mix |
55 - 60% |
— |
|
Services mix |
40 - 45% |
— |
|
Diluted earnings per share |
$0.66 - $0.68 |
35 - 39% |
Quarterly Dividend
The Company’s Board of Directors declared a cash dividend of $0.06 per share of the Company’s common stock, payable on February 5, 2024, to shareholders of record as of January 29, 2024. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.
Environmental, Social, and Governance
We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our ESG website .
Webcast and Conference Call Details
Shawn O’Connor, chief executive officer, and Will Frederick, chief financial and operating officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 or 1-201-389-0879. The webcast will be available on our website under Conference Calls & Presentations . A replay of the webcast will be available on the website approximately one hour following the call.
