Q1 2026 Certara Inc Earnings Call Transcript
Key Points
- Certara Inc (CERT) is leveraging AI technologies to enhance its Model-Informed Drug Development (MIDD) capabilities, aligning with industry trends towards AI-driven drug discovery.
- The company has a strong legacy with over two decades of scientific literature, 2,600 customers, and more than 160,000 users, including regulatory agencies like the FDA.
- Certara Inc (CERT) has divested its regulatory and medical writing business to focus on core areas with competitive and scientific advantages, improving revenue predictability.
- The company is reorganizing into two growth areas, MID3 and ACE, to better align technology and services, aiming for long-term growth.
- Certara Inc (CERT) has formed strategic collaborations with NVIDIA and Altasciences to enhance its technology and expand its market reach.
- First quarter revenue growth was modest at 1% year-over-year, with a decline in total bookings by 2% compared to the prior-year period.
- Services revenue decreased by 4% year-over-year, with mixed results in the MIDD services business and softness in regulatory services.
- Adjusted EBITDA for the first quarter decreased from $34.8 million in 2025 to $31.7 million in 2026, with a margin of 30%.
- Certara Inc (CERT) reported a net loss of $8.8 million for the first quarter of 2026, compared to a net income of $4.7 million in the first quarter of 2025.
- The company faces challenges in achieving consistent performance across its software and services segments, with ongoing efforts to improve execution and efficiency.
Good day, and thank you for standing by. Welcome to the Certara first quarter 2026 earnings conference call. (Operator Instructions) Please be advised today's conference is being recorded.
I would now like to hand the conference over to your speaker today, David Deuchler of Certara. Please go ahead.
Good morning, everyone. Thank you all for participating in today's conference call. On the call from Certara, we have Jon Resnick, Chief Executive Officer; and John Gallagher, Chief Financial Officer.
Earlier today, Certara released financial results for the quarter ended March 31, 2026. 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 accompanying materials for additional information which
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