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First Quarter 2025 Financial Results May 5, 2025
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2 Disclaimer Numerical figures in the presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. In addition, unless otherwise indicated, references to the “Company,” “Certara,” “we,” “us,” and “our” refer to Certara, Inc. and its consolidated subsidiaries. Trademarks and Service Marks The Certara design logo, “Certara,” and our other registered or common law trademarks, service marks or trade names appearing in this presentation are our property. Solely for convenience, our trademarks, tradenames, and service marks referred to in this presentation appear without the registered mark or trademark symbols, but those references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks, tradenames, and service marks. This presentation contains additional trademarks, tradenames, and service marks of other companies that are the property of their respective owners. We do not intend our use or display of other companies’ trademarks, trade names or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies. Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, that reflect the Company’s current views with respect to, among other things, the Company’s operations and financial performance. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggest,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “targets,” “projections,” “should,” “could,” “would,” “may,” “might,” “will,” and other similar expressions. We base these forward-looking statements or projections on our current expectations, plans and assumptions, which we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at the time. The forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These statements are only predictions based upon our current expectations and projections about future events. Actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control, including the Company’s ability to compete within its market; any deceleration in, or resistance to, the acceptance of model-informed biopharmaceutical discovery; changes or delays in relevant government regulation; increasing competition, regulation and other cost pressures within the pharmaceutical and biotechnology industries; economic conditions, including inflation, recession, currency exchange fluctuation and adverse developments in the financial services industry; trends in research and development (R&D) spending; delays or cancellations in projects due to supply chain interruptions or disruptions or delays to pipeline development and clinical trials experienced by our customers, and the other factors detailed under the captions “Risk Factors” and “Special Note Regarding Forward-Looking Statements” and elsewhere in our Securities and Exchange Commission (“SEC”) filings and reports, including the Annual Report on Form 10-K filed with the SEC on February 26, 2025 and subsequent reports. New risks emerge from time to time and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Any forward-looking statement made by us in this presentation speaks only as of the date of this presentation and is expressly qualified in its entirety by the cautionary statements included in this presentation. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable laws. You should not place undue reliance on our forward-looking statements. Non-GAAP Financial Information This presentation contains “non-GAAP measures” that are financial 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”). Specifically, we may make use of the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, [adjusted net income (loss), adjusted diluted earnings per share (“EPS), and constant currency (“CC”) revenue, which are not recognized terms under GAAP and should not be considered as alternatives to net income (loss), GAAP EPS, or GAAP revenue as measures of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. Adjusted EBITDA represents net income (loss) excluding interest expense, provision (benefit) for income taxes, depreciation and amortization expense, intangible asset amortization, equity-based compensation expense, acquisition and integration expense and other items not indicative of our ongoing operating performance. Adjusted EBITDA margin represents adjusted EBITDA divided by revenue. [Adjusted net income] and adjusted diluted EPS exclude the effect of the same items noted above with respect to adjusted EBITDA from GAAP net income (loss) and GAAP EPS, respectively, as well as adjust the provision for income taxes for such charges. CC revenue excludes the effects of foreign currency exchange rate fluctuations by assuming constant foreign currency exchange rates used for translation. Current periods revenue reported in currencies other than U.S. dollars are converted into U.S. dollars at the average exchange rates in effect for the comparable prior periods. You should refer to the appendix at the end of this document for a reconciliation of these non-GAAP measures in specific periods to their most directly comparable financial measures calculated and presented in accordance with GAAP for those periods. Management uses various financial metrics, including total revenues, income from operations, net income, CC revenue and certain non-GAAP measures, including those discussed above, to measure and assess the performance of the Company’s business, to evaluate the effectiveness of its business strategies, to make budgeting decisions, to make certain compensation decisions, and to compare the Company’s performance against that of other peer companies using similar measures. In addition, management believes these metrics provide useful measures for period-to-period comparisons of the Company’s business, as they remove the effect of certain non-cash expenses and other items not indicative of its ongoing operating performance. Management believes that these metrics are helpful to investors, analysts, and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical periods. In addition, these measures are frequently used by analysts, investors, and other interested parties to evaluate and assess performance. In addition, our business has operations outside the United States that are conducted in local currencies. As a result, the comparability of the financial results reported in U.S. dollars is affected by changes in foreign currency exchange rates. We use CC revenue to evaluate the underlying performance of the business, and we believe it is helpful for investors to present operating results on a comparable basis period over period to evaluate its underlying performance. In evaluating adjusted EBITDA, [adjusted net income (loss)] adjusted diluted EPS, and CC revenue, you should be aware that in the future the Company may incur expenses similar to those eliminated in this presentation and this presentation should not be construed as an inference that future results will be unaffected by unusual items.
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3 © Copyright 2025 Certara, Inc. All rights reserved. 3 More than 2,400 companies and 23 global regulatory agencies have adopted Certara technology solutions. 20 years of industry leadership and innovation with over 1,540 employees, 400 with PhDs in 33 countries; seven of the worlds most cited scientists in their field. Scientific Leadership Biosimulation Technology Platform More than 90% of all novel drugs approved by the US FDA since 2014 were supported by Certara services or technology. We use biosimulation, data, and scientific expertise to transform drug development and accelerate medicines to patients. Our Mission Certara A leader in model informed drug development (MIDD) from molecule to market Proven Results
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4 A T rusted Life Sciences Partner 2,400+ Customers across 70 countries; 30 of the top 30 biopharma >100 novel drugs & 325 label claims rare disease treatments to market, 400+ Employees with PhDs 10+ Year Average T enure for T op 30 Customers >90% all novel drugs approved by the US FDA since 2014 were supported by Certara solutions 23 Global regulatory agencies Software adopted by 34K+ Scientific publications with scientists and technology Validated by 400+ Academic Institutions Used by Our software was used in bringing >100 >380 complex biologics programs since 2020. were approved by global regulators using our technology in lieu of clinical studies © Copyright 2025 Certara, Inc. All rights reserved. 1540+ Global team members in 30 countries
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BASIC RESEARCH DRUG DISCOVERY PRE - CLINICAL CLINICAL TRIALS FDA REVIEW POST - APPROVAL Phase I Phase II Phase III Research & Monitoring TENS HUNDREDS THOUSANDS Number of Volunteers IND SUBMITTED NDA/BLA SUBMITTED FDA APPROVAL YEAR 15 POTENTIAL NEW MEDICINES $2–3 BILLION* 1 FDA- APPROVED MEDICINE *FTL Science 2022 https://theconversation.com/90-of-drugs-fail-clinical- trials-heres-one-way-researchers-can-select-better-drug-candidates- 174152 https://ftloscience.com/process-costs-drug-development/ Drug Development Needs a New Model 8 8 % O F N E W M E D I C I N E S T H AT E N T E R C L I N I C A L T R I A L S FA I L* 40–50% lack clinical efficacy 20–30% unmanageable toxicity 10–15% poor pharmacokinetic (PK) properties 10%+ fail due to lack of commercial viability*
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6 Biosimulation CLINICAL Biosimulation Platform © Copyright 2025 Certara, Inc. All rights reserved. Generative AI and Machine Learning Scientific Drug Development Expertise Biosimulation Models and Data Pinnacle 21 Simcyp Simulator Biostatistical Analytics & Submissions PRECLINICALDISCOVERY PK Analytics Chemaxon Integrated chemical and biological property prediction Integrated workflows for enhanced cellular predictions Integrated scientific analytics and reporting workflows Phoenix PK/PD Cheminformatics
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7 Financial Highlights First Quarter 2025 REVENUE $106.0M NET INCOME $4.7M ADJ. EBITDA(2) $34.8M PY ($4.7M) 20% PY ($0.03) PY $0.10 DILUTED EPS $0.03 (1) See Appendix for reconciliation of GAAP revenue to constant currency (non-GAAP revenue) (2) See Appendix for reconciliation of net income (loss) to adjusted EBITDA (3) See Appendix for reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share ADJUSTED DILUTED EPS(3) $0.14 YoY change10% CC YoY change(1) 10% GAAP YoY change
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8 39.3 46.4 57.3 59.6 1Q 2024 1Q 2025 Software Services 1Q 2025 Results - Revenue Certara reported 10% constant currency(1) revenue growth ($Millions) 96.7 106.0 (1) See Appendix for reconciliation of GAAP revenue to constant currency (non-GAAP revenue) 39.3 46.6 57.3 59.7 1Q 2024 1Q 2025 Software Services 96.7 106.3 Constant Currency Revenue(1) GAAP Reported Revenue ($Millions)
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9 33.1 40.8 72.7 77.4 1Q 2024 1Q 2025 Software Services 1Q 2025 and TTM Results - Net Bookings Trailing twelve months bookings are highly correlated with revenue and drive strong visibility ($Millions) 105.8 118.2 139.6 177.3 255.9 280.4 1Q 2024 1Q 2025 Software Services 395.4 457.7 TTM Reported Net Bookings 1Q Reported Net Bookings ($Millions)
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10 Historical TTM Book to Bill Book to bill provides forward visibility into revenue growth 395.4 408.4 419.7 445.3 457.7 360.3 363.6 372.8 385.1 394.5 1.10x 1.12x 1.13x 1.16x 1.16x 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 TTM Bookings TTM Revenue Book to Bill ($Millions)
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11 Historical Software Net Retention Rate (NRR)(1) NRR(1) provides insight into growth and retention among existing software customers (1) Our net retention rates measure the percentage of recurring revenue that is retained from existing software customers over a specific time period, inclusive of price increases and expansion, excluding revenue from acquisitions occurred within the past 12 months. 109.9% 110.5% 111.3% 107.4% 108.6% 114.1% 108.0% 107.6% 105.5% 102.4% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q25 Series1
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12 30% 33%28% 35% 33% 29.1 26.3 33.1 33.5 34.8 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 1Q 2025 Results – Adjusted EBITDA Adjusted EBITDA(1) Adjusted EBITDA Margin(1) (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA 1Q25 Adjusted EBITDA grew 20% vs. the prior year period
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13 1Q 2025 Results – Reconciliation of Revenue & Bookings Growth Item Growth Contribution Organic Software(1) +4% + Chemaxon ~1410 bps Reported Software +18% Organic Services(1) +3% + Chemaxon ~50 bps Reported Services +4% Organic Total(1) +4% + Chemaxon ~610 bps Total Revenue +10% 1Q 2025 Revenue Item Growth Contribution Organic Software(1) +9% + Chemaxon +1340 bps Reported Software +23% Organic Services(1) +6% + Chemaxon ~60 bps Reported Services +7% Organic Total(1) +7% + Chemaxon ~460 bps Total Bookings +12% 1Q 2025 Bookings (1) Organic Growth does not include M&A contribution from businesses that were not owned for the entirety of the prior year p eriod
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14 Investing in the Biosimulation Market Opportunity • Certara remains focused on internal investment in biosimulation capabilities and strategic M&A to drive long-term growth • $100M share repurchase authorization reflects BOD’s confidence in the company’s investments and provides additional capital allocation flexibility. Evolving Opportunity for Certara in Preclinical • FDA plan to phase out animal testing requirement for mAbs and other drugs presents an opportunity for PBPK & QSP Modeling in preclinical. • Recently launched Non-animal Navigator, a hybrid software & services solution to help customers understand our alternatives to animal testing. 1Q25 Business Updates Key Takeaways from First Quarter Performance: Strong First Quarter Performance • Solid performance across the portfolio drives 10% y/y revenue growth, 12% y/y bookings growth. • Software growth strong across Tier 1 & Tier 3, while softness in Tier 1 biosimulation services was offset by strength from Tiers 2 & 3.
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15 Strongest area of y/y growth driven by expansion & upsell within existing customers Declined y/y due to timing of renewals Strong y/y growth in software bookings, driven by further adoption of biosimulation Software Bookings | +23% y/y Softness due to cautious customer spending, with strength in regulatory Strong growth driven by commercial execution across biosimulation and regulatory Strong growth driven by commercial execution across biosimulation and regulatory Services Bookings | +7% y/yTier1 I II III 1Q25 Bookings y/y T rends – Pharma/Biotech Customers Software bookings driven by expansion of biosimulation to new customers and new users Slowness in T1 biosim services, with strength in regulatory services & across T2 & T3 (1) Certara’s Pharma Customer tiering is defined as follows: Tier 1 represents Biopharma customers with more than $5B USD in Revenue, Tier 2 represents companies with revenue between $100M and $4.99B USD in revenue, Tier 3 represents customers with revenues less than 100M, including non -revenue generating companies.
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16 2025 Outlook Reiterated FY 2025 guidance Key Assumptions 2025 Guidance Reported revenue growth of 8-10% Chemaxon Revenue expected to be $23-$25M Fully diluted shares expected to be in the range of 162-164M Tax rate expected to be 25- 30% REVENUE $415-$425M ADJUSTED EBITDA Margin(1) 30-32% ADJUSTED DILUTED EPS(1) $0.42-$0.46 (1) We have not reconciled the adjusted EBITDA and adjusted diluted EPS forward-looking guidance above 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. This financial guidance is provided as of May 5, 2025, and its inclusion in this presentation should not be construed as continued affirmation of such guidance beyond that date.
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Appendix
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18 Reconciliation of Net Income (Loss) to Adjusted EBITDA 18
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19 Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) 19
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20 Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share 20 THREE MONTHS ENDED MARCH 31, 2025 2024 (In thousands except share and per share data) Diluted earnings per share(a) $ 0.03 $ (0.03) Currency (gain) loss(a) — 0.01 Equity-based compensation expense(b) 0.04 0.05 Amortization of acquisition-related intangible assets(c) 0.09 0.08 Change in fair value of contingent consideration(d) — 0.02 Acquisition-related expenses(e) 0.01 0.01 Reorganization expense(f) — — Loss on disposal of fixed assets(g) — — Executive recruiting expense(h) — — Income tax expense impact of adjustments(i) (0.03) (0.04) Adjusted Diluted Earnings Per Share $ 0.14 $ 0.10 Basic weighted average common shares outstanding 160,996,258 159,524,270 Effect of potentially dilutive shares outstanding (k) 354,034 889,094 Adjusted diluted weighted average common shares outstanding 161,350,292 160,413,364
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21 Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED MARCH 31, Change 2025 2024 2024 $ % $ % Actual CC Actual Actual Actual CC Impact (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Software $ 46,369 $ 46,624 $ 39,307 $ 7,062 18 % $ 255 19 % Services 59,635 59,695 57,347 2,288 4 % 60 4 % Total Revenue $ 106,004 $ 106,319 $ 96,654 $ 9,350 10 % $ 315 10 %
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22 a) Represents amounts as determined under GAAP. b) Represents expense related to equity-based compensation. Equity-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy. c) Represents amortization costs associated with acquired intangible assets in connection with business acquisitions. d) Represents expense associated with remeasuring fair value of contingent consideration of business acquisition. e) Represents costs associated with mergers and acquisitions and any retention bonuses pursuant to the acquisitions. f) Represents expenses related to reorganization, including legal entity reorganization and lease abandonment costs associated with the evaluation of our office space footprint. g) Represents the gain/loss related to disposal of fixed assets. h) Represents recruiting and relocation expenses related to hiring senior executives. i) Represents the income tax effect of the non-GAAP adjustments calculated using the applicable statutory rate by jurisdiction. j) Represents potentially dilutive shares that were included from our GAAP diluted weighted average common shares outstanding. Notes to Reconciliations
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Accelerating Medicines, T ogether