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Aug 31, 2022
Simulations Plus Q4 2022 Earnings Report
Reported strong fourth quarter and full-year fiscal 2022 financial results.
Key Takeaways
Simulations Plus reported a strong fourth quarter with a 19% increase in total revenue to $11.7 million. Full-year revenue grew by 16% to $53.9 million, and diluted earnings per share increased by 28% to $0.60.
Total revenue increased 19% to $11.7 million.
Software revenue increased 10% to $5.9 million, representing 50% of total revenue.
Services revenue increased 30% to $5.8 million, representing 50% of total revenue.
Net income was $1.0 million, or $0.05 per diluted share, compared to $0.3 million, or $0.01 per diluted share.
Simulations Plus
Simulations Plus
Simulations Plus Revenue by Segment
Simulations Plus Revenue by Geographic Location
Revenue by Segment
Software Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
Simulations Plus provides Fiscal 2023 guidance for total revenue of $59.3 million to $62.0 million (+10% to 15%) and diluted earnings per share of $0.63-$0.67 (5-10%).
Positive Outlook
- Expected revenue growth rate for fiscal 2023 is in line with long-term organic growth rate target of 10-15%.
- Full-year renewal rates are expected to be in-line with historical patterns.
- Company expects to invest in employee growth, recruiting and retention.
- Medium to long-term, expect to see a return to higher levels of operating leverage and margins.
- Deliver on long-term organic revenue growth targets of 10-15%.
Challenges Ahead
- Expect seasonal revenue patterns to shift with changes in renewal patterns.
- Impact of somewhat slower renewal patterns on the part of clients is expected to continue into fiscal 2023.
- Sets up for lower-than-normal first fiscal-quarter revenue growth, roughly flat year-over-year.
- Seeing a competitive market for modeling and simulation professionals.
- Expect increased operating expense levels in fiscal 2023 as we digest these incremental costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income