Simulations Plus Q4 2021 Earnings Report
Key Takeaways
Simulations Plus reported a 3% increase in total revenue for Q4 2021, driven by a 14% increase in software revenue, while services revenue declined by 7%. The company's software business demonstrated strong performance, while the services business is building backlog.
Total revenue growth exceeded revised guidance with 12% growth for FY21.
Software revenue grew by 28% for FY21.
Service business continues to build backlog with a 6% revenue decline for FY21.
Backlog increased by 10% for Q4 and 49% for FY21.
Simulations Plus
Simulations Plus
Simulations Plus Revenue by Segment
Forward Guidance
Simulations Plus anticipates total revenue growth between 10% and 15% for FY22. The company projects software revenue to constitute 55% to 60% of total revenue, while service revenue is expected to be 40% to 45%.
Positive Outlook
- Software business carries strong momentum; incremental releases planned for FY22.
- Services business remains volatile but long-term outlook remains unchanged; backlog rebuilt and pipeline activity is strong
- Focus on business development through strategic investment in sales and marketing & cross selling efforts
- M&A remains strategic enhancement to organic growth objectives
Revenue & Expenses
Visualization of income flow from segment revenue to net income