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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
October 23, 2024
(Date of the earliest event reported)
SLP_TopLogo.gif
Simulations Plus, Inc.
(Exact name of registrant as specified in its charter)
California001-3204695-4595609
(State or other jurisdiction of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)
42505 10th Street West, Lancaster, California 93534-7059
(Address of principal executive offices) (Zip Code)
661-723-7723
Registrant's telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14z-12 under Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareSLPThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02    Results of Operations and Financial Condition
On October 23, 2024, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its fourth quarter and fiscal year ended August 31, 2024. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

Item 7.01    Regulation FD Disclosure

On October 23, 2024, the Company held an investor conference call reporting its financial results for its fourth quarter and fiscal year ended August 31, 2024. The PowerPoint presentation, which was used for this investor conference call, is attached as Exhibit 99.2 to this Report.

In accordance with General Instructions B.2 of Form 8-K, the information in this Report, including Exhibits 99.1 and 99.2 (together, the “Exhibits”), is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Report.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Report, including the disclosures set forth herein and in the Exhibits attached hereto, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms “anticipates,” “expects,” “estimates,” “believes” and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements.

Forward-looking statements in this Report or reports hereafter furnished, including in other publicly available documents filed with the Securities and Exchange Commission (the “Commission”), to the Company’s stockholders and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management’s best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.
Item 9.01    Financial Statements and Exhibits
(d)    Exhibits
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SIMULATIONS PLUS, INC.
Dated: October 23, 2024
By: /s/ Will Frederick
Will Frederick
Chief Financial Officer and Chief Operating Officer
2

Exhibit 99.1
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Simulations Plus Reports Fourth Quarter and Fiscal 2024 Financial Results

Fiscal 2024 revenue grew 18% year-over-year to $70 million, with diluted earnings per share (EPS) of $0.49

Provides fiscal 2025 revenue guidance of $90 to $93 million (+28% to +33%) and adjusted diluted EPS guidance of $1.07 to $1.20

LANCASTER, CA, October 23, 2024 – Simulations Plus, Inc. (Nasdaq: SLP) (“Simulations Plus”), a leading provider of biosimulation, simulation-enabled performance and intelligence solutions, and medical communications to the biopharma industry, today reported financial results for its fourth quarter and fiscal 2024, ended August 31, 2024.

Fourth Quarter 2024 Financial Highlights (compared to fourth quarter 2023)
•Total revenue increased 19% to $18.7 million
•Software revenue increased 6% to $9.9 million, representing 53% of total revenue
•Services revenue increased 39% to $8.8 million, representing 47% of total revenue
•Gross profit of $6.8 million; gross margin was 37%
•Adjusted EBITDA of $4.1 million, representing 22% of total revenue, compared to $4.9 million, representing 31% of total revenue
•Net income of $0.8 million and diluted EPS of $0.04 versus net income of $0.5 million and diluted EPS of $0.03
•Adjusted diluted EPS of $0.06, excluding the impact of acquisition costs, versus adjusted diluted EPS of $0.18

Full Year 2024 Financial Highlights (compared to full year 2023)
•Total revenue increased 18% to $70.0 million
•Software revenue increased 12% to $41.0 million, representing 59% of total revenue
•Services revenue increased 26% to $29.0 million, representing 41% of total revenue
•Gross profit of $43.2 million; gross margin was 62%
•Adjusted EBITDA of $20.3 million, representing 29% of total revenue, compared to $20.6 million, representing 35% of total revenue
•Net income of $10.0 million and diluted EPS of $0.49, equivalent to the prior period
•Adjusted diluted EPS of $0.53, excluding the impact of acquisition costs, versus adjusted diluted EPS of $0.67

Management Commentary

“Our fiscal year 2024 results reflected strong performance in both our software and services segments,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Total revenue increased 18%, driven by upgrade releases that advanced our biosimulation leadership across all of our main platforms, including GastroPlus®, MonolixSuite™ and ADMET Predictor®. Organic revenue growth, excluding the fourth quarter revenue contribution from Pro-ficiency, was 14%. Software revenue increased 12%, led by our Clinical Pharmacology & Pharmacometrics (CPP) business unit with its MonolixSuite platform expanding by 20%. Our services segment delivered notable strength, increasing by 26% and exceeding our internal expectations, led by robust growth in our Quantitative Systems Pharmacology (QSP) and CPP business units.

“In June, we acquired Pro-ficiency, the largest and most significant M&A transaction in our Company’s history. This acquisition doubled our total addressable market to $8 billion and is expected to accelerate future growth by expanding our ability to support clients across clinical operations, medical affairs, and commercialization. The integration is progressing ahead of schedule, and we anticipate that our newly combined go-to-market strategies will drive additional business development opportunities. Additionally, our shared scientific and technological capabilities are expected to deliver enhanced products and services, further benefiting our clients.

“Overall, we had a successful year and furthered our leadership position with a one-of-a-kind platform that spans the drug development value chain. I want to thank our expanded team for their unwavering dedication to create value for our customers through innovative science-based software and consulting solutions that optimize treatment options and improve patient lives.

“Looking ahead, we anticipate healthy revenue growth in fiscal 2025. Based upon current market conditions, organic growth is expected to be in the range of 10% to 15%. In addition, the Pro-ficiency acquisition – which encompasses our Adaptive Learning and Insights (ALI) and Medical Communications (MC) business units – is expected to contribute $15 to $18 million. Our fiscal 2025 guidance is as follows:

Fiscal 2025 Guidance
Fiscal 2025 Guidance
Revenue$90M - $93M
Revenue growth28 - 33%
Software mix55 - 60%
Adjusted EBITDA margin31 - 33%
Adjusted diluted EPS$1.07 - $1.20

“Moving on to market conditions, the funding environment in both pharma and biotech has been constrained for two consecutive years. While we are encouraged by initial budget discussions with our clients for calendar year 2025, we are maintaining our cautiously optimistic approach, consistent with the strategy we’ve employed over the past few years. Importantly, we believe that we are well-positioned to respond if there is an uptick in spending during the year.

“Finally, our near-term priorities include completing the acquisition integration, expanding cross-selling opportunities, and driving towards our historical adjusted EBITDA margin target of 35-40% and corresponding profitability levels. We remain committed to executing our disciplined growth strategy and delivering long-term value for our stakeholders,” concluded O’Connor.

Webcast and Conference Call Details

Shawn O’Connor, Chief Executive Officer, and Will Frederick, Chief Financial and Operating Officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. The webcast can be accessed on the investor relations page of the Simulations Plus website www.simulations-plus.com/investorscorporate-profile/corporate-profile/ where it will also be available for replay approximately one hour following the call.

Non-GAAP Definitions

This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release.

The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items.

Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Adjusted EBITDA

Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, change in value of contingent consideration, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign-currency-denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency.

Adjusted Diluted EPS

Adjusted Diluted EPS is calculated based on net income excluding the impact related to the previous items.

Adjusted Diluted EPS for fiscal 2024 is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, change in value of contingent consideration, and tax provisions/benefits related to the previous items.

The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.

About Simulations Plus

With more than 25 years of experience serving clients globally, Simulations Plus stands as a premier provider in the biopharma sector, offering advanced software and consulting services that enhance drug discovery, development, research, clinical trial operations, regulatory submissions, and commercialization. Our comprehensive biosimulation solutions integrate artificial intelligence/machine learning (AI/ML), physiologically based pharmacokinetics, physiologically based biopharmaceutics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. We also deliver simulation-enabled performance and intelligence solutions alongside medical communications support for clinical and commercial drug development. Our cutting-edge technology is licensed and utilized by leading pharmaceutical, biotechnology, and regulatory agencies worldwide. For more information, visit our website at www.simulations-plus.com. Follow us on LinkedIn | X | YouTube.

Environmental, Social, and Governance

We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our website to read our 2023 ESG update.

Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to successfully integrate the Pro-ficiency business with our own as well as expenses we may incur in connection therewith, our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission.

Investor Relations Contacts:
Lisa Fortuna
Financial Profiles
310-622-8251
slp@finprofiles.com

Renee Bouche
Simulations Plus Investor Relations
661-723-7723
renee.bouche@simulations-plus.com




1

SIMULATIONS PLUS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Years ended August 31,
(in thousands, except per common share amounts)202420232022
Revenues
Software$41,024 $36,517 $32,642 
Services28,989 23,060 21,264 
Total revenues70,013 59,577 53,906 
Cost of revenues
Software6,478 3,627 3,060 
Services20,384 8,003 7,762 
Total cost of revenues26,862 11,630 10,822 
Gross profit43,151 47,947 43,084 
Operating expenses
Research and development5,754 4,504 3,208 
Sales and marketing8,915 6,558 4,879 
General and administrative22,351 28,160 20,086 
Total operating expenses37,020 39,222 28,173 
Income from operations6,131 8,725 14,911 
Other income6,280 2,970 204 
Income before income taxes12,411 11,695 15,115 
Provision for income taxes(2,457)(1,734)(2,632)
Net income$9,954 $9,961 $12,483 
Earnings per share
Basic$0.50 $0.50 $0.62 
Diluted$0.49 $0.49 $0.60 
Weighted-average common shares outstanding
Basic19,987 20,075 20,196 
Diluted20,301 20,465 20,749 
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments(105)167 (265)
Unrealized losses on available-for-sale securities$(5)$— $— 
Comprehensive income$9,844 $10,128 $12,218 
2

SIMULATIONS PLUS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)August 31, 2024August 31, 2023
ASSETS
Current assets
Cash and cash equivalents$10,311 $57,523 
Accounts receivable, net of allowance for credit losses of $149 and $469,136 10,201 
Prepaid income taxes2,197 804 
Prepaid expenses and other current assets7,753 3,904 
Short-term investments9,944 57,940 
Total current assets39,341 130,372 
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $18,727 and $17,19912,499 11,335 
Property and equipment, net812 671 
Operating lease right-of-use assets1,027 1,247 
Intellectual property, net of accumulated amortization of $5,490 and $9,30123,130 8,689 
Other intangible assets, net of accumulated amortization of $3,177 and $2,10723,210 12,825 
Goodwill96,078 19,099 
Deferred tax assets— 1,438 
Other assets542 425 
Total assets$196,639 $186,101 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable$602 $144 
Accrued compensation4,513 4,392 
Accrued expenses2,043 659 
Contracts payable2,440 3,250 
Operating lease liability - current portion475 442 
Deferred revenue1,996 3,100 
Total current liabilities12,069 11,987 
Long-term liabilities
Deferred income taxes, net1,608 — 
Operating lease liability531 755 
Contracts payable – net of current portion— 3,330 
Total liabilities14,208 16,072 
Commitments and contingencies— — 
Shareholders' equity
Preferred stock, $0.001 par value - 10,000,000 shares authorized; no shares issued and outstanding$— $— 
Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 20,051,134 and 19,937,961 shares issued and outstanding152,328 144,974 
Retained earnings30,354 25,196 
Accumulated other comprehensive loss(251)(141)
Total shareholders' equity182,431 170,029 
Total liabilities and shareholders' equity$196,639 $186,101 
3

SIMULATIONS PLUS, INC.
Trended Financial Information*
(Unaudited)

(in millions except earnings per share amounts)
FY 2023FY 2024FY 2022FY 2023FY 2024
Q1Q2Q3Q4Q1Q2Q3Q4Full YearFull YearFull Year
Revenue
Software$6.1 $10.5 $10.6 $9.3 $7.6 $11.6 $11.9 $9.9 $32.7 $36.5 $41.0 
Services$5.9 $5.3 $5.6 $6.3 $6.9 $6.7 $6.6 $8.8 $21.2 $23.1 $29.0 
Total $12.0 $15.8 $16.2 $15.6 $14.5 $18.3 $18.5 $18.7 $53.9 $59.6 $70.0 
Gross Margin
Software85.4 %92.0 %91.5 %89.4 %86.9 %88.4 %88.2 %72.4 %90.6 %90.1 %84.2 %
Services69.7 %66.2 %63.4 %62.1 %47.0 %44.2 %41.4 %-4.0 %63.5 %65.3 %29.7 %
Total 77.7 %83.4 %81.8 %78.4 %67.9 %72.2 %71.5 %36.6 %79.9 %80.5 %61.6 %
Income from operations$0.9 $4.0 $4.1 $(0.3)$1.0 $4.4 $1.9 $(1.2)$14.9 $8.7 $6.1 
Operating Margin7.3 %25.6 %25.2 %-1.8 %6.6 %24.3 %10.1 %-6.2 %27.7 %14.6 %8.8 %
Net Income$1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $0.8 $12.5 $10.0 $10.0 
Diluted Earnings Per Share$0.06 $0.20 $0.20 $0.03 $0.10 $0.20 $0.15 $0.04 $0.60 $0.49 $0.49 
Adjusted EBITDA$3.0 $6.2 $6.5 $4.9 $3.4 $7.1 $5.6 $4.1 $21.5 $20.6 $20.3 
Adjusted Diluted EPS$0.07 $0.21 $0.21 $0.18 $0.09 $0.22 $0.17 $0.06 $0.63 $0.67 $0.53 
Cash Flow from Operations$4.7 $5.5 $8.5 $3.1 $0.2 $5.8 $5.7 $1.6 $17.9 $21.9 $13.3 
Revenue Breakdown by Region
Americas$8.5 $10.6 $10.8 $11.0 $10.9 $12.5 $12.4 $14.7 $37.7 $40.8 $50.4 
EMEA2.1 3.6 3.4 2.6 2.3 4.7 4.5 2.6 10.4 11.7 14.1 
Asia Pacific1.3 1.5 2.1 2.1 1.3 1.2 1.6 1.4 5.8 7.0 5.5 
Total$12.0 $15.8 $16.2 $15.6 $14.5 $18.3 $18.5 $18.7 $53.9 $59.6 $70.0 
Software Performance Metrics
Average Revenue per Customer (in thousands)
Commercial $68.0$110.0$97.088.0$79.0$113.0$97.0$89.0
Services Performance Metrics
Backlog (in millions)$15.8$15.4$15.7$19.5$18.9$18.0$19.6$14.1

*Numbers may not add due to rounding
4

SIMULATIONS PLUS, INC.
Reconciliation of Adjusted EBITDA to Net Income*
(Unaudited)

(in millions)
FY 2023FY 2024FY 2022FY 2023FY 2024
Q1Q2Q3Q4Q1Q2Q3Q4Full YearFull YearFull Year
Net Income$1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $0.8 $12.5 $10.0 $10.0 
Excluding:
Interest income and expense, net(0.8)(1.0)(1.1)(1.3)(1.3)(1.3)(1.5)(0.2)(0.7)(4.1)(4.4)
Provision for income taxes0.4 0.9 0.9 (0.5)0.5 1.2 0.8 — 2.6 1.7 2.5 
Depreciation and amortization0.9 0.9 0.9 1.1 1.1 1.1 1.3 2.2 3.6 3.9 5.7 
Stock-based compensation0.9 1.2 1.1 1.1 1.3 1.6 1.7 1.4 2.7 4.2 5.9 
(Gain) loss on currency exchange— — 0.3 0.2 — 0.1 — (0.4)0.2 0.5 (0.4)
Impairment of other intangibles— — — 0.5 — — — — — 0.5 — 
Change in value of contingent consideration— — — 0.7 (0.1)0.4 (0.6)(1.4)0.3 0.7 (1.6)
Mergers & Acquisitions expense0.3 0.1 0.4 2.5 — — 0.9 1.7 0.3 3.3 2.6 
Adjusted EBITDA$3.0 $6.2 $6.5 $4.9 $3.4 $7.1 $5.6 $4.1 $21.5 $20.6 $20.3 
*Numbers may not add due to rounding
5

SIMULATIONS PLUS, INC.
Reconciliation of Adjusted Diluted EPS to Diluted EPS*
(Unaudited)
(in millions, except Diluted EPS and Adjusted Diluted EPS)
FY 2023FY 2024FY 2022FY 2023FY 2024

Q1Q2Q3Q4Q1Q2Q3Q4Full YearFull YearFull Year
Net Income (GAAP)$1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $0.8 $12.5 $10.0 $10.0 
Excluding:
Mergers & Acquisitions expense0.3 0.1 0.4 0.9 — — 0.9 1.7 0.3 1.7 2.6 
Immunetrics transaction costs— — — 1.6 — — — — — 1.6 — 
Change in value of contingent consideration— — — 0.7 (0.1)0.4 (0.6)(1.4)0.3 0.7 (1.6)
Cognigen trade name write-off— — — 0.5 — — — — — 0.5 — 
Tax effect on above adjustments(0.1)— (0.1)(0.5)— (0.1)(0.1)(0.1)(0.1)(0.7)(0.2)
Adjusted Net income (Non-GAAP)$1.5 $4.2 $4.3 $3.7 $1.8 $4.4 $3.4 $1.1 $13.0 $13.8 $10.8 
Weighted-average common shares outstanding:
Diluted20.8 20.5 20.4 20.4 20.3 20.3 20.4 20.3 20.7 20.5 20.3 
Diluted EPS (GAAP)$0.06 $0.20 $0.20 $0.03 $0.10 $0.20 $0.15 $0.04 $0.60 $0.49 $0.49 
Adjusted Diluted EPS (Non-GAAP)$0.07 $0.21 $0.21 $0.18 $0.09 $0.22 $0.17 $0.06 $0.63 $0.67 $0.53 
*Numbers may not add due to rounding
6
1 Earnings Call – Q4 - FY24 October 23, 2024

 
Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to successfully integrate the Pro-ficiency business with our own, as well as expenses we may incur in connection therewith, our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission. Safe Harbor Statement 2

 
Full Year 2024 Highlights $0.49 Diluted EPS $70.0M Revenue 29% Adj. EBITDA as % of Revenue $14.1M Backlog 3 CURRENT PERIOD Prior Year Comparison (FY23) $59.6M Revenue $0.49 Diluted EPS 35% Adj. EBITDA as % of Revenue $19.5M Backlog $0.53 Adj. Diluted EPS $0.67 Adj. Diluted EPS

 
Fourth Quarter Highlights $0.04 Diluted EPS $18.7M Revenue 22% Adj. EBITDA as % of Revenue $14.1M Backlog 4 CURRENT PERIOD Prior Year Comparison (4Q23) $15.6M Revenue $0.03 Diluted EPS 31% Adj. EBITDA as % of Revenue $19.5M Backlog $0.06 Adj. Diluted EPS $0.18 Adj. Diluted EPS

 
– Overall software revenue growth of 12% for FY24 and 6% for FY24Q4 – Good renewal rate, upsell and new logo activity – Good initial revenue contribution from ALI and MC Software Highlights +1% Q4 Revenue Growth General -8% Q4 Revenue Growth +20% Q4 Revenue Growth -67% Q4 Revenue Growth $1.1M Q4 Revenue $0.1M Q4 Revenue +6% FY Revenue Growth +7% FY Revenue Growth +18% FY Revenue Growth +7% FY Revenue Growth $1.1M FY Revenue $0.1M FY Revenue 5 Cheminformatics Physiologically Based Pharmacokinetics Clinical Pharmacology & Pharmacometrics Quantitative Systems Pharmacology Adaptive Learning & Insights Medical Communications

 
– Overall services revenue growth of 26% for FY24 and 39% for FY24Q4 – Total backlog $14.1M – slippage of bookings into Q1FY25 – Good initial revenue contribution from MC Services Highlights General -6% Q4 Revenue Growth +28% Q4 Revenue Growth +32% Q4 Revenue Growth $1.1M Q4 Revenue FY Revenue Growth FY Revenue Growth FY Revenue Growth FY Revenue 6 -5% +19% +57% $1.1M Physiologically Based Pharmacokinetics (PBPK) Clinical Pharmacology & Pharmacometrics (CPP) Quantitative Systems Pharmacology (QSP) Clinical Pharm cology & Pharmacometrics Physiologically Based Pharmacokinetics Clinical Pharmacology & Pharmacometrics Quantitative Systems Pharmacology Medical Communications

 
Financial Results

 
53% 47% Software Services 60% 40% Software Services Revenue - Q4 (in millions) Software RevenueTotal Revenue Services Revenue +19% +6% +39% 4Q24 Mix 4Q23 Mix 8 $5.9 $9.3 $9.9 $5.8 $6.3 $8.8 $11.7 $15.6 $18.7 Software Services 4Q22 4Q23 4Q24

 
59% 41% Software Services 61% 39% Software Services Revenue - Fiscal 2024 (in millions) Software RevenueTotal Revenue Services Revenue +18% +12% +26% FY24 Mix FY23 Mix 9 $32.6 $36.5 $41.0 $21.3 $23.1 $29.0$53.9 $59.6 $70.0 Software Services FY22 FY23 FY24

 
49% 17% 18% 15% GastroPlus® MonolixSuite™ ADMET Predictor® Others Key Software Products as % of Software Revenue 10 4Q24 53% 20% 18% 9% GastroPlus® MonolixSuite™ ADMET Predictor® Others FY24 GastroPlus® ▪ 7 new customers ▪ 15 upsells to existing customers ADMET Predictor® ▪ 4 new customers ▪ 6 upsells to existing customers MonolixSuite™ ▪ 11 new customers ▪ 4 upsells to existing customers Fourth Quarter Highlights

 
Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q4 Commercial Customers Renewal Rates 11 $65 $88 $89 4Q22 4Q23 4Q24 85% 80% 79% 92% 85% 87% Accounts Fees 4Q22 4Q23 4Q24

 
Avg. Revenue per Customer (in thousands) Software Performance Metrics - Fiscal 2024 Commercial Customers Renewal Rates 12 $110 $126 $129 FY22 FY23 FY24 88% 82% 84% 95% 92% 93% Accounts Fees FY22 FY23 FY24

 
17% 35% 36% 13% PBPK QSP CPP MC Services Solutions as % of Services Revenue 13 4Q24 23% 31% 43% 4% PBPK QSP CPP MC FY24

 
$15.9 $19.5 $14.1 4Q22 4Q23 4Q2499 113 78 21 23 24 76 76 51 97196 212 250 PBPK QSP CPP MC 4Q22 4Q23 4Q24 Services Performance Metrics Total Projects Backlog (in millions) 14

 
Gross Margin Bridge FY23 to FY24 15 1

 
Income Statement Summary - Q4 16 (in millions, except Diluted EPS and Adjusted Diluted EPS) 4Q24 % of Rev 4Q23 % of Rev Revenue $18.7 100% $15.6 100% Revenue growth 19% 33% Gross profit 6.8 37% 12.3 78% R&D 1.9 10% 1.1 7% S&M 2.6 14% 1.7 11% G&A 3.5 19% 9.8 63% Total operating exp 8.0 43% 12.5 80% Loss from operations (1.2) (6)% (0.3) (2)% Income before income taxes 0.9 5% 0.1 —% Income taxes — —% 0.5 3% Effective tax rate 2% 674% Net income $0.8 5% $0.5 3% Diluted earnings per share $0.04 $0.03 Adjusted EBITDA $4.1 22% $4.9 31% Excluded items $0.3 $3.1 Adjusted Diluted EPS $0.06 $0.18

 
Income Statement Summary - Fiscal 2024 17 FY24 % of Rev FY23 % of Rev Revenue $70.0 100% $59.6 100% Revenue growth 18% 11% Gross profit 43.2 62% 47.9 80% R&D 5.8 8% 4.5 8% S&M 8.9 13% 6.6 11% G&A 22.4 32% 28.2 47% Total operating exp 37.0 53% 39.2 66% Income from operations 6.1 9% 8.7 15% Income before income taxes 12.4 18% 11.7 20% Income taxes (2.5) 4% (1.7) 3% Effective tax rate 20% 15% Net income $10.0 14% $10.0 17% Diluted earnings per share $0.49 $0.49 Adjusted EBITDA $20.3 29% $20.6 35% Excluded items $0.8 $3.8 Adjusted Diluted EPS $0.53 $0.67 (in millions, except Diluted EPS and Adjusted Diluted EPS)

 
Balance Sheet Summary 18 August 31, 2024 August 31, 2023 Cash and short-term investments $20.3 $115.5 Total current assets 39.3 130.4 Total assets $196.6 $186.1 Current liabilities 12.1 12.0 Long-term liabilities 2.1 4.1 Total liabilities 14.2 16.1 Shareholders’ equity 182.4 170.0 Total liabilities and shareholders’ equity $196.6 $186.1 (in millions)

 
Fiscal 2025 Guidance 19 Guidance Total Revenue $90M - $93M Total Revenue Growth 28% - 33% Software Revenue Mix 55% - 60% Adjusted EBITDA1 Margin 31% - 33% Adjusted Diluted EPS2 $1.07 - $1.20

 
WELL POSITIONED FOR FISCAL 2025 PERFORMANCE Delivering on our commitment to scientific leadership Expanding our software and services portfolio 20 • Release of GastroPlusX • Release of Monolix R24 • Release of ADMET Predictor Version 12 • Collaboration with USC to secure NIH Grant to develop new AI drug discovery offerings Developing organization to drive growth Creating shareholder value CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET Conclusion • Optimization of business unit structure following recent strategic acquisitions • Formation of two new business units following Pro-ficiency acquisition • Focus on supporting accelerated growth in distributor network • ALI: Pro-ficiency Performance Management software platform • MC: Panorama KOL Insights software platform • Delivering consistent revenue growth and profitability • Strategic M&A

 
Adjusted EBITDA Non-GAAP Reconciliation* 21 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Full Year Full Year Net Income $3.0 $4.4 $4.1 $1.0 $1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $0.8 $12.5 $10.0 $10.0 Excluding: Interest income and expense, net (0.1) (0.1) (0.1) (0.4) (0.8) (1.0) (1.1) (1.3) (1.3) (1.3) (1.5) (0.2) (0.7) (4.1) (4.4) Provision for income taxes 0.8 1.1 0.7 (0.1) 0.4 0.9 0.9 (0.5) 0.5 1.2 0.8 — 2.6 1.7 2.5 Depreciation and amortization 0.8 1.0 0.9 0.9 0.9 0.9 0.9 1.1 1.1 1.1 1.3 2.2 3.6 3.9 5.7 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 1.3 1.6 1.7 1.4 2.7 4.2 5.9 (Gain) loss on currency exchange (0.1) (0.1) 0.2 0.2 — — 0.3 0.2 — 0.1 — (0.4) 0.2 0.5 (0.4) Impairment of other intangibles — — — — — — — 0.5 — — — — — 0.5 — Change in value of contingent consideration 0.1 0.1 — — — — — 0.7 (0.1) 0.4 (0.6) (1.4) 0.3 0.7 (1.6) Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 2.5 — — 0.9 1.7 0.3 3.3 2.6 Adjusted EBITDA $5.3 $7.2 $6.5 $2.5 $3.0 $6.2 $6.5 $4.9 $3.4 $7.1 $5.6 $4.1 $21.5 $20.6 $20.3 (in millions) *Numbers may not add due to rounding

 
Adjusted EPS Non-GAAP Reconciliation* 22 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Full Year Full Year Net Income (GAAP) $1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $3.1 $0.8 $12.5 $10.0 $10.0 Excluding: Mergers & Acquisitions expense 0.3 0.1 0.4 0.9 — — 0.9 1.7 0.3 1.7 2.6 Immunetrics transaction costs — — — 1.6 — — — — — 1.6 — Change in value of contingent consideration — — — 0.7 (0.1) 0.4 (0.6) (1.4) 0.3 0.7 (1.6) Cognigen trade name write-off — — — 0.5 — — — — — 0.5 — Tax effect on above adjustments (0.1) — (0.1) (0.5) — (0.1) (0.1) (0.1) (0.1) (0.7) (0.2) Adjusted Net income (Non-GAAP) $1.5 $4.2 $4.3 $3.7 $1.8 $4.4 $3.4 $1.1 $13.0 $13.8 $10.8 Weighted-average common shares outstanding: Diluted 20.8 20.5 20.4 20.4 20.3 20.3 20.4 20.3 20.7 20.5 20.3 Diluted EPS (GAAP) $0.06 $0.20 $0.20 $0.03 $0.10 $0.20 $0.15 $0.04 $0.60 $0.49 $0.49 Adjusted Diluted EPS (Non-GAAP) $0.07 $0.21 $0.21 $0.18 $0.09 $0.22 $0.17 $0.06 $0.63 $0.67 $0.53 (in millions, except Diluted EPS and Adjusted Diluted EPS) *Numbers may not add due to rounding

 
Investor Relations Contacts: Lisa Fortuna Financial Profiles 310-622-8251 slp@finprofiles.com Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com

 
v3.24.3
Cover
Oct. 23, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 23, 2024
Entity Registrant Name Simulations Plus, Inc.
Entity Central Index Key 0001023459
Entity Incorporation, State or Country Code CA
Entity File Number 001-32046
Entity Tax Identification Number 95-4595609
Entity Address, Address Line One 42505 10th Street West
Entity Address, City or Town Lancaster
Entity Address, State or Province CA
Entity Address, Postal Zip Code 93534-7059
City Area Code 661
Local Phone Number 723-7723
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol SLP
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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