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Total turnover: $94.8 million, up 11% year over year.
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Software revenue: $35.9 million, up 15% year over year.
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Services income: $58.9 million, up 9% year over year.
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Software bookings: $34.8 million, up 28% year over year.
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Adjusted EBITDA: $33.1 million, compared to $28.8 million last year.
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Adjusted EBITDA margin: 35%.
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Net loss: $1.4 million, compared to a net loss of $49 million last year.
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Adjusted Net Income: $20.3 million, compared to $17.1 million last year.
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Custom diluted EPS: $0.13, compared to $0.11 last year.
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Cash and cash equivalents: $233 million as of September 30, 2024.
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Outstanding loans: $296.1 million on the term loan.
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Revenue Guidance 2024: $380 million to $385 million, 7% to 9% growth.
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Adjusted EBITDA guidance for 2024: $120 million to $124 million.
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Adjusted EPS guidelines for 2024: $0.41 to $0.44 per share.
Release date: November 6, 2024
For the full earnings call transcript, please refer to the full earnings call transcript.
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Certara Inc (NASDAQ:CERT) reported an 11% year-over-year increase in third-quarter revenue to $94.8 million.
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The company achieved a 13% increase in total bookings, indicating strong demand for its services.
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Certara Inc (NASDAQ:CERT) successfully completed its acquisition of Chemaxon, expanding its biosimulation reach into the preclinical market.
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The launch of Certara Cloud has made access to software easier, reducing IT and security costs for customers.
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Certara Inc (NASDAQ:CERT) has posted a strong performance in software bookings, up 28% year-over-year.
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Certara Inc (NASDAQ:CERT) experienced an extended decision-making process with larger customers, impacting growth forecasts.
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The regulatory services market has been more challenging than expected, leading to a modest revision of the 2024 guidance.
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There is a difference in growth profiles between regulatory services and core biosimulation activities.
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Certara Inc (NASDAQ:CERT) has seen a further deterioration in regulatory services bookings, which has impacted fourth-quarter revenue assumptions.
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The company is cautious in forecasting growth in the second half of the year due to market dynamics and delays in customer decision-making.
Q: Can you elaborate on the current demand environment for biosimulation and how it relates to year-end budget activities and your go-to-market strategies? A: William Feehery, CEO: We normally see a budget flush from pharmaceutical customers in the fourth quarter, and we expect some of that this quarter, although the magnitude is difficult to predict. Our guidance is not dependent on it. Our increased investment in our commercial team is helping, and while the market is healthier than earlier this year, the change is modest. The demand for biosimulation is driven more by our investments and its unique value.
