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Nov 30, 2022
Simulations Plus Q1 2023 Earnings Report
Simulations Plus Q1 2023 financial results were reported, with revenue and EPS aligned with fiscal 2023 guidance and Q1 expectations, along with a capital allocation strategy update.
Key Takeaways
Simulations Plus reported a 4% decrease in total revenue to $12.0 million for Q1 2023. Diluted EPS was $0.06. The company is focusing on corporate development activities, a $50 million share repurchase program, and internal investment.
Total revenue decreased 4% to $12.0 million.
Software revenue decreased 17% to $6.1 million, representing 51% of total revenue.
Services revenue increased 17% to $5.9 million, representing 49% of total revenue.
Diluted EPS was $0.06, compared to $0.15 in the previous year.
Revenue by Segment
Forward Guidance
The company believes they remain on-pace to achieve their full-year guidance of 10-15% organic revenue growth and 5-10% diluted EPS growth.
Positive Outlook
- Company expects to maintain high gross margins.
- Company expects to maintain robust renewal rates.
- Company expects low to mid-teens organic long-term revenue growth rates.
- Company expects higher profit growth rates.
- Company expects higher free cash flow.
Challenges Ahead
- This will be a year of transition as the company invests in its organization.
- The company is streamlining its software renewal process.
- Operating leverage inherent in the business is expected to be temporarily reduced.
- FX negative impact on our revenue
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
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