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Jun 30, 2021
Certara Q2 2021 Earnings Report
Certara's financial performance declined due to an increase in stock-based compensation expense, despite revenue growth and strategic acquisition announcement.
Key Takeaways
Certara reported a 15% increase in revenue to $70.1 million for Q2 2021. However, the company experienced a net loss of $2.9 million, compared to a net income of $2.8 million in the same quarter of the previous year, primarily due to increased stock-based compensation expense. The company announced an agreement to acquire Pinnacle 21 and raised its full-year 2021 guidance.
Revenue increased by 15% year-over-year, reaching $70.1 million.
Net loss was ($2.9) million, a decrease compared to a net income of $2.8 million in Q2 2020.
Adjusted EBITDA grew by 1% year-over-year, totaling $25.5 million.
Agreement announced to acquire Pinnacle 21 for $310 million in cash and stock.
Forward Guidance
Certara updated its previously reported guidance for full year 2021, not including the impact of the Pinnacle 21 acquisition, by raising the ranges for revenue, Adjusted EBITDA and Adjusted Diluted Earnings Per Share.
Positive Outlook
- Full year 2021 revenue to be in the range of $283 million to $289 million
- Full year 2021 Adjusted EBITDA to be in the range of $101 million to $103 million
- Full year 2021 Adjusted Diluted Earnings Per Share is expected to be in the range of $0.21 to $0.25
- Fully diluted shares for 2021 will be 153 million to 155 million
- Effective annual tax rate for 2021 will be in the range of 40% to 45%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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