•
May 31, 2024

Simulations Plus Q3 2024 Earnings Report

Simulations Plus reported Q3 2024 financial results with revenue increase and EPS decrease.

Key Takeaways

Simulations Plus reported a 14% increase in total revenue to $18.5 million for the third quarter of fiscal year 2024. EPS was $0.15, compared to $0.20 in the same quarter last year. The company maintains full-year revenue guidance of $69 to $72 million and updates EPS guidance.

Total revenue increased 14% to $18.5 million.

Software revenue increased 12% to $11.9 million, representing 64% of total revenue.

Services revenue increased 18% to $6.6 million, representing 36% of total revenue.

Net income was $3.1 million, with diluted earnings per share (EPS) of $0.15.

Total Revenue
$18.5M
Previous year: $16.2M
+14.2%
EPS
$0.19
Previous year: $0.2
-5.0%
Gross Profit
$13.3M
Previous year: $13.3M
-0.1%
Cash and Equivalents
$109M
Previous year: $55.1M
+97.9%
Free Cash Flow
$5.57M
Previous year: $8.61M
-35.3%
Total Assets
$193M
Previous year: $179M
+7.6%

Simulations Plus

Simulations Plus

Simulations Plus Revenue by Segment

Simulations Plus Revenue by Geographic Location

Forward Guidance

Simulations Plus maintains full-year revenue guidance of $69 million to $72 million and updates EPS guidance. The Clinical Simulations and Medical Communications (CSMC) business unit is expected to contribute approximately $3 million to fiscal 2024 revenue.

Positive Outlook

  • Full-year revenue is expected to be between $69 million and $72 million.
  • CSMC business unit is expected to contribute approximately $3 million to fiscal 2024 revenue.
  • Healthy pipeline entering the final fiscal quarter of 2024.
  • Disciplined growth strategy is expected to deliver long-term returns for shareholders.
  • Biotech funding is starting to show signs of recovery.

Challenges Ahead

  • Spending patterns among large pharmaceutical companies vary, with some increasing expenditures while others remain conservative.
  • There can be no assurances that expected or anticipated results or events will actually take place.
  • Our ability to successfully integrate the Pro-ficiency business with our own, as well as expenses we may incur in connection therewith
  • Our ability to maintain our competitive advantages.
  • Acceptance of new software and improved versions of our existing software by our customers.

Revenue & Expenses

Visualization of income flow from segment revenue to net income