Q1 2024 Certara Inc Earnings Call Transcript
Key Points
- Certara Inc (CERT) reported a total revenue of $96.7 million for Q1 2024, marking a year-over-year growth of 7% on a reported basis and 6% on a constant currency basis.
- Software revenue increased significantly by 19% on a reported basis and 18% on a constant currency basis, driven by strong performance in biosimulation software and Pinnacle 21 platforms.
- The launch of Certara Cloud, a platform integrating access to all software applications, has been successful with 1,500 client-specific portals and usage by 15 of the top 30 biopharmaceutical companies.
- Certara Inc (CERT) maintained a healthy software net retention rate of 114%, indicating strong customer loyalty and satisfaction.
- The company reiterated its full-year 2024 guidance, expecting total revenue in the range of $385 million to $400 million, representing growth of 9% to 13% compared with 2023.
- Technology-driven services segment revenue was flat year-over-year on both a reported and constant currency basis, indicating stagnation in this area of the business.
- Services bookings for Q1 2024 decreased by 11% from the prior year period, reflecting challenges in securing new service contracts.
- The net loss for Q1 2024 was $4.7 million, compared to a net income of $1.4 million in the first quarter of 2023, showing a downturn in profitability.
- Total operating expenses for Q1 2024 increased significantly to $58.7 million from $48 million in Q1 2023, driven by rises in employee-related expenses and stock-based compensation.
- Despite the growth in software revenue, the overall adjusted EBITDA margin for Q1 2024 was 30%, below the full-year guidance range of 31% to 33%, partly due to costs associated with recent acquisitions.
Good day, and thank you for standing by. Welcome to the Certara First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions). Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, David Deuchler.
Good afternoon, everyone. Thank you all for participating in today's conference call. On the call from Certara, we have William Feehery, Chief Executive Officer; and John Gallagher, Chief Financial Officer. Earlier today, Certara released financial results for the quarter ended March 31, 2024.
A copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements and actual results may differ materially from those expressed or implied in the forward-looking statements. Please refer to Slide 2 in the company materials for additional
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