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Sep 30, 2021
Certara Q3 2021 Earnings Report
Revenue increased by 23% and Pinnacle 21 was acquired.
Key Takeaways
Certara reported a strong third quarter with a 23% increase in revenue compared to the same quarter last year. The company completed the acquisition of Pinnacle 21 and raised its full-year 2021 guidance.
Revenue was $73.9 million, compared to $60.3 million in the third quarter of 2020, representing growth of 23% over the third quarter of 2020.
Net loss was $1.8 million, compared to net income of $1.2 million in the third quarter of 2020, representing a decrease of $3.0 million over the third quarter of 2020.
Adjusted EBITDA was $26.1 million, compared to $20.5 million in the third quarter of 2020, representing growth of 28% over the third quarter of 2020.
Completed the acquisition of Pinnacle 21, LLC (“Pinnacle”) on October 1, 2021, for total consideration of $250 million cash and 2,239,717 shares of restricted common stock of the Company.
Forward Guidance
Certara updated its full year 2021 guidance, raising the ranges for revenue, adjusted EBITDA and adjusted diluted earnings per share, based on performance through September and the expected impact of Pinnacle 21 in the fourth quarter.
Positive Outlook
- Revenue between $288 million and $291 million
- Adjusted revenue between $292 million and $295 million
- Adjusted EBITDA between $106 million and $108 million
- Adjusted diluted earnings per share between $0.22 and $0.26
- Fully diluted shares for 2021 to be in the range of 155 million to 156 million
Challenges Ahead
- Effective annual tax rate for 2021 to be in the range of 40% to 45%.
- variability and low visibility with respect to costs related to acquisitions
- variability and low visibility with respect to costs related to financings
- variability and low visibility with respect to costs related to employee stock compensation programs
Historical Earnings Impact
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Avg. Return Before/After Earnings
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