The following is a summary of the Simulations Plus, Inc. (SLP) Q1 2025 Earnings Call Transcript:

Financial Performance:

• Total revenue increased by 31% year-over-year to $18.9 million, with a notable increase from the newly formed ALI and MC business units contributing $3.7 million.

• Adjusted EBITDA stood at $4.5 million or 24% of total revenue.

• Net income was $0.2 million and diluted EPS was $0.01.

• Software revenue grew by 41%, and services revenue grew by 19%.

• The trailing 12-month average revenue per customer increased to $98,000.

Business Progress:

• The ALI and MC business units, formed from the acquisition of Pro-ficiency, performed in line with expectations with combined software revenue of $1.8 million and services revenue of $1.9 million.

• Simulations Plus launched new model licenses for Psoriatic Arthritis and Crohn's Disease, expanding their software offerings.

• Backlog at the end of the quarter stood at $17.3 million, up 22% sequentially, indicating strong future revenue potential.

Opportunities:

• Significant discussions and robust client engagement at industry conferences herald potential for future revenue growth.

• The integration of the ALI and MC business units enhances cross-selling opportunities and expands market into clinical operations and medical affairs budgets.

Risks:

• The temporary impact from client-driven data delays postponed the ramp-up of certain projects, which are expected to recover in subsequent quarters.

• Ongoing cost-constrained and limited funding environment across pharma and biotech clients continue to pose challenges.

More details: Simulations Plus IR

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