Loading...
•
Sep 30, 2024
Certara Q4 2024 Earnings Report
Certara reported its financial results for the fourth quarter and full year 2024, with revenue growth driven by biosimulation software and M&A contributions.
Key Takeaways
Certara reported strong fourth quarter 2024 results, with total revenue increasing by 14% to $100.4 million and net income reaching $6.6 million, a significant improvement from a net loss in the prior year. The growth was primarily fueled by a 26% increase in software revenue and contributions from Chemaxon.
Total revenue for Q4 2024 increased by 14% to $100.4 million compared to $88.0 million in Q4 2023.
Software revenue grew by 26% to $42.3 million in Q4 2024, up from $33.6 million in Q4 2023.
Net income for Q4 2024 was $6.6 million, a substantial improvement from a net loss of $12.5 million in Q4 2023.
Adjusted EBITDA increased by 13% to $33.5 million in Q4 2024, compared to $29.6 million in Q4 2023.
Revenue by Segment
Forward Guidance
Certara expects full year 2025 revenue to be between $415 million and $425 million, with adjusted EBITDA margins in the low thirties and adjusted diluted earnings per share between $0.42 and $0.46.
Positive Outlook
- Full year 2025 revenue expected to be in the range of $415 million to $425 million.
- Adjusted EBITDA margins expected to remain in the low thirties in 2025.
- Adjusted diluted earnings per share expected to be in the range of $0.42 - $0.46.
- Continued investment in software and AI to strengthen end-to-end biosimulation offering.
- Well-positioned to capitalize on growing interest in biosimulation technology.
Challenges Ahead
- Initial expectation that end markets in 2025 will be similar to what was experienced in 2024.
- Adjusted EBITDA margins will remain in the low thirties due to continued investment in R&D and Chemaxon integration.
- Unreasonable effort required to reconcile adjusted EBITDA or adjusted diluted EPS forward-looking guidance to GAAP measures due to variability and low visibility of certain costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...