Simulations Plus, Inc. (“Simulations Plus”), a leading provider of cheminformatics, biosimulation, simulation-enabled performance and intelligence solutions, and medical communications to the biopharma industry, reported financial results for its second quarter fiscal 2025, ended February 28, 2025.
Second Quarter 2025 Financial Highlights (as compared to second quarter 2024)
- Total revenue increased 23% to $22.4 million
- Software revenue increased 16% to $13.5 million, representing 60% of total revenue
- Services revenue increased 34% to $8.9 million, representing 40% of total revenue
- Gross profit was $13.1 million; gross margin was 59%
- Net income of $3.1 million and diluted EPS of $0.15 compared to net income of $4.0 million and diluted EPS of $0.20
- Adjusted EBITDA of $6.6 million, representing 29% of total revenue, compared to $7.1 million, representing 39% of total revenue
- Adjusted net income of $6.2 million and adjusted diluted EPS of $0.31, compared to adjusted net income of $6.4 million and adjusted diluted EPS of $0.32
Six Months 2025 Financial Highlights (as compared to six months 2024)
- Total revenue increased 26% to $41.4 million
- Software revenue increased 26% to $24.2 million, representing 59% of total revenue
- Services revenue increased 26% to $17.2 million, representing 41% of total revenue
- Gross profit was $23.3 million; gross margin was 56%
- Net income of $3.3 million and diluted EPS of $0.16 versus net income of $6.0 million and diluted EPS of $0.29
- Adjusted EBITDA of $11.1 million, representing 27% of total revenue, compared to $10.5 million, representing 32% of total revenue
- Adjusted net income of $9.6 million and adjusted diluted EPS of $0.48, compared to adjusted net income of $10.1 million and adjusted diluted EPS of $0.50
Management Commentary
“We delivered strong performance in our second fiscal quarter 2025 with total revenue growing by 23%,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Our software revenue rose 16%, driven by outstanding execution across all of our software platforms. Leading growth this quarter, our Quantitative Systems Pharmacology (QSP) business unit expanded 89%, primarily driven by the addition of a model license in the disease area of atopic dermatitis. Additionally, our Cheminformatics revenues increased by 8%, while our Clinical Pharmacology & Pharmacometrics (CPP) business unit posted a 9% revenue increase.
“Services revenue for the second fiscal quarter grew 34%, with notable strength in our Medical Communications (MC) business unit. Services bookings in our CPP and MC business units were exceptional contributors to the 13% year-over-year increase in our backlog, which ended the quarter at $20.4 million.
“We are pleased with our solid performance in the first half of the year despite the ongoing cost constrained and limited funding environment for our biopharma customers. As we enter the second half of 2025, we believe we are well-positioned to maintain our momentum and are on track to achieve our stated guidance.”
Fiscal 2025 Guidance
|
Fiscal 2025 Guidance |
|
|
Revenue |
$90M - $93M |
|
Revenue growth |
28 - 33% |
|
Software mix |
55 - 60% |
|
Adjusted EBITDA margin |
31 - 33% |
|
Adjusted diluted EPS |
$1.07 - $1.20 |
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 5:00 p.m. Eastern Time to discuss the details of Simulations Plus’ performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. The webcast can be accessed on the investor relations page of the Simulations Plus website https://www.simulations-plus.com/investorscorporate-profile/corporate-profile/ where it will also be available for replay approximately one hour following the call.
