Lancaster, California – Simulations Plus, Inc. held their Q3 2024 Earnings Conference Call on July 2, 2024, where executives discussed the company’s financial results for the third quarter of fiscal 2024. Among the participants were Lisa Fortuna, Shawn O’Connor, and Will Frederick.

During the call, Shawn O’Connor, the Chief Executive Officer of Simulations Plus, expressed gratitude for the participants joining the conference. He highlighted the company’s strong performance in the first nine months of the fiscal year, with solid revenue growth of 14% in the third quarter. The company reported diluted earnings per share of $0.15 and adjusted diluted earnings per share of $0.19.

In terms of market conditions, O’Connor mentioned an improvement in the biotech funding environment, providing a positive outlook for the company. While there were varying spending patterns among large pharmaceutical companies, Simulations Plus remained cautiously optimistic about its position in the market.

The Software segment saw a 12% increase in revenues in the third quarter, with growth driven by renewals, upsells, and new logo activity. Additionally, the Cheminformatics business unit delivered a 15% revenue growth, driven by higher revenues for ADMET Predictor. The company also noted growth in other business units, including Physiologically Based Pharmacokinetics (PBPK), Clinical Pharmacology & Pharmacometrics (CPP), and Quantitative Systems Pharmacology (QSP).

Services segment revenues increased by 18% in the third quarter, with a healthy pipeline of active opportunities. The company also announced the acquisition of Pro-ficiency, a leader in providing simulation-enabled performance and intelligence solutions for clinical and commercial drug development, which is expected to contribute positively to the company’s earnings in fiscal year 2025.

Looking ahead, Simulations Plus reaffirmed its guidance targets for fiscal 2024, including total revenue between $69 million to $72 million, year-over-year revenue growth in the range of 15% to 20%, and adjusted diluted earnings per share of $0.54 to $0.56. The company emphasized its strong competitive position in the biosimulation industry and its commitment to continued growth and innovation.

In conclusion, the call concluded with a focus on the company’s financial outlook, operational performance, and strategic initiatives moving forward. Simulations Plus remains optimistic about its trajectory and is poised for continued success in the coming years.