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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