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Jun 30, 2022
Certara Q2 2022 Earnings Report
Certara's revenue increased, driven by technology-driven services and software, but net loss was reported due to increased costs.
Key Takeaways
Certara's Q2 2022 revenue grew by 18% year-over-year to $82.8 million, but the company reported a net loss of $0.6 million. Growth was fueled by the technology-driven services and software, but was offset by foreign currency exchange rates and slow growth in the regulatory services business.
Revenue was $82.8 million, an 18% increase compared to Q2 2021.
Excluding Pinnacle 21, revenue was $75.8 million, representing 8% growth.
Net loss was $0.6 million, an increase of $2.3 million in income over Q2 2021.
Adjusted EBITDA was $28.0 million, a 9% increase compared to Q2 2021.
Revenue by Segment
Forward Guidance
Certara is adjusting its previously reported guidance for full year 2022 to a new full year guidance of $325 million to $335 million for revenue, $112 million to $117 million for adjusted EBITDA, and $0.43-$0.48 for adjusted diluted earnings per share.
Positive Outlook
- Revenue between $325 million and $335 million.
- Adjusted EBITDA between $112 million and $117 million.
- Adjusted diluted earnings per share between $0.43 and $0.48.
- Fully diluted shares for 2022 to be in the range of 159 million to 161 million.
- Cash tax rate for 2022 to be in the range of 20% to 25%.
Challenges Ahead
- Revised guidance assumes foreign currency exchange rates remain substantially unchanged from the rates as of June 30, 2022.
- Slow recovery in the regulatory services market.
- GAAP tax rate for 2022 to be in the range of 40% to 45%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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