The following is a summary of the Simulations Plus, Inc. (SLP) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 FY2024 total revenue increased 14% to $18.5 million.
Software revenue increased 12%, while Services revenue increased 18%.
Gross margin for Q3 was 71%, down from 82% last year, mainly due to a shift in Services personnel to cost of revenue.
Net income for Q3 was $3.1 million, representing a decrease from the previous year.
Diluted earnings per share were $0.15, and adjusted diluted earnings per share were $0.19.
Business Progress:
Launched GPX, a new generation software for pharmacokinetics modeling, receiving positive initial client reactions.
Announced the acquisition of Pro-ficiency, expanding offerings across the drug development continuum.
Experiencing solid bookings and a healthy pipeline, with a backlog of $19.6 million.
Anticipate revenue from backlog within the next 12 months to increase to approximately 91%.
Opportunities:
Continued recovery in biotech funding presents opportunities for increased revenue, particularly with Pro-ficiency integration.
Market improvements and a positive shift in biotech funding environments may boost future bookings and revenue.
Risks:
Variable spending patterns among large pharmaceutical clients reflect continued market caution, potentially impacting revenue consistency.
Delays in client source data affecting PBPK services could disrupt expected revenue flow.
More details: Simulations Plus IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.