Certara Reports First Quarter 2025 Financial Results
Certara (NASDAQ: CERT) reported strong Q1 2025 financial results with total revenue of $106.0 million, up 10% year-over-year. The company's performance was marked by significant growth in software revenue, which increased 18% to $46.4 million, while services revenue grew 4% to $59.6 million. Net income improved substantially to $4.7 million, compared to a net loss of $4.7 million in Q1 2024.
The company's adjusted EBITDA reached $34.8 million, representing 20% growth from the previous year. Total bookings increased 12% to $118.2 million. Certara reaffirmed its full-year 2025 guidance, projecting revenue between $415-425 million and adjusted EBITDA margin of 30-32%. The company's strong performance was driven by growth in its biosimulation software portfolio and M&A contributions.
Certara (NASDAQ: CERT) ha riportato solidi risultati finanziari nel primo trimestre 2025 con un fatturato totale di 106,0 milioni di dollari, in crescita del 10% rispetto all'anno precedente. La performance dell'azienda è stata caratterizzata da una notevole crescita del fatturato software, aumentato del 18% a 46,4 milioni di dollari, mentre i ricavi dai servizi sono cresciuti del 4% raggiungendo 59,6 milioni di dollari. L'utile netto è migliorato significativamente, passando da una perdita netta di 4,7 milioni di dollari nel primo trimestre 2024 a un utile di 4,7 milioni di dollari.
L'EBITDA rettificato ha raggiunto 34,8 milioni di dollari, segnando una crescita del 20% rispetto all'anno precedente. Le prenotazioni totali sono aumentate del 12% arrivando a 118,2 milioni di dollari. Certara ha confermato le previsioni per l'intero anno 2025, prevedendo un fatturato compreso tra 415 e 425 milioni di dollari e un margine EBITDA rettificato tra il 30 e il 32%. La forte performance è stata trainata dalla crescita del portafoglio software di biosimulazione e dai contributi derivanti da fusioni e acquisizioni.
Certara (NASDAQ: CERT) reportó sólidos resultados financieros en el primer trimestre de 2025 con ingresos totales de 106,0 millones de dólares, un aumento del 10% interanual. El desempeño de la compañía se destacó por un crecimiento significativo en ingresos por software, que aumentaron un 18% hasta 46,4 millones de dólares, mientras que los ingresos por servicios crecieron un 4% alcanzando 59,6 millones de dólares. El ingreso neto mejoró sustancialmente a 4,7 millones de dólares, en comparación con una pérdida neta de 4,7 millones de dólares en el primer trimestre de 2024.
El EBITDA ajustado de la compañía alcanzó 34,8 millones de dólares, representando un crecimiento del 20% respecto al año anterior. Las reservas totales aumentaron un 12% hasta 118,2 millones de dólares. Certara reafirmó sus previsiones para todo el año 2025, proyectando ingresos entre 415 y 425 millones de dólares y un margen EBITDA ajustado del 30 al 32%. El sólido desempeño fue impulsado por el crecimiento de su portafolio de software de biosimulación y las contribuciones de fusiones y adquisiciones.
Certara (NASDAQ: CERT)는 2025년 1분기에 총 매출 1억 600만 달러로 전년 동기 대비 10% 증가한 강력한 재무 실적을 보고했습니다. 회사의 실적은 소프트웨어 매출이 18% 증가하여 4640만 달러를 기록했고, 서비스 매출은 4% 증가하여 5960만 달러에 달하는 등 눈에 띄는 성장을 보였습니다. 순이익은 2024년 1분기 470만 달러 순손실에서 470만 달러 순이익으로 크게 개선되었습니다.
조정 EBITDA는 3480만 달러에 도달하며 전년 대비 20% 성장했습니다. 총 예약액은 12% 증가하여 1억 1820만 달러를 기록했습니다. Certara는 2025년 전체 가이던스를 재확인하며 매출을 4억 1500만~4억 2500만 달러, 조정 EBITDA 마진을 30~32%로 전망했습니다. 회사의 강력한 실적은 바이오시뮬레이션 소프트웨어 포트폴리오 성장과 인수합병 기여에 힘입은 결과입니다.
Certara (NASDAQ : CERT) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec un chiffre d'affaires total de 106,0 millions de dollars, en hausse de 10 % par rapport à l'année précédente. La performance de l'entreprise a été marquée par une croissance significative des revenus logiciels, qui ont augmenté de 18 % pour atteindre 46,4 millions de dollars, tandis que les revenus des services ont progressé de 4 % pour atteindre 59,6 millions de dollars. Le résultat net s'est nettement amélioré, passant d'une perte nette de 4,7 millions de dollars au premier trimestre 2024 à un bénéfice net de 4,7 millions de dollars.
L'EBITDA ajusté de l'entreprise a atteint 34,8 millions de dollars, soit une croissance de 20 % par rapport à l'année précédente. Les commandes totales ont augmenté de 12 % pour atteindre 118,2 millions de dollars. Certara a réaffirmé ses prévisions pour l'année 2025, prévoyant un chiffre d'affaires compris entre 415 et 425 millions de dollars et une marge d'EBITDA ajusté de 30 à 32 %. La forte performance de l'entreprise a été portée par la croissance de son portefeuille de logiciels de biosimulation et les contributions issues des fusions et acquisitions.
Certara (NASDAQ: CERT) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Gesamtumsatz von 106,0 Millionen US-Dollar, was einem Anstieg von 10 % im Jahresvergleich entspricht. Die Unternehmensleistung zeichnete sich durch ein signifikantes Wachstum der Softwareerlöse aus, die um 18 % auf 46,4 Millionen US-Dollar stiegen, während die Erlöse aus Dienstleistungen um 4 % auf 59,6 Millionen US-Dollar zunahmen. Der Nettogewinn verbesserte sich deutlich auf 4,7 Millionen US-Dollar, im Vergleich zu einem Nettoverlust von 4,7 Millionen US-Dollar im ersten Quartal 2024.
Das bereinigte EBITDA des Unternehmens erreichte 34,8 Millionen US-Dollar, was einem Wachstum von 20 % gegenüber dem Vorjahr entspricht. Die Gesamtaufträge stiegen um 12 % auf 118,2 Millionen US-Dollar. Certara bestätigte seine Prognose für das Gesamtjahr 2025 und erwartet einen Umsatz zwischen 415 und 425 Millionen US-Dollar sowie eine bereinigte EBITDA-Marge von 30 bis 32 %. Die starke Leistung des Unternehmens wurde durch das Wachstum des Biosimulationssoftware-Portfolios und Beiträge aus Fusionen und Übernahmen angetrieben.
- None.
- Services revenue showed modest 4% growth, indicating slower expansion in this segment
- Cash and cash equivalents decreased from $224.8M to $179.1M year-over-year
Insights
Certara delivered 10% revenue growth, 20% EBITDA growth, and swung to profitability while maintaining guidance despite industry headwinds.
Certara's Q1 results showcase impressive financial momentum with revenue growing 10% year-over-year to
The company's profitability transformation is particularly noteworthy, with a substantial
Forward indicators appear equally robust, with total bookings increasing
Certara maintained its full-year guidance of
Certara's strong biosimulation growth aligns perfectly with FDA's new animal testing reduction roadmap, positioning them at the regulatory shift's forefront.
Certara's Q1 results reveal significant industry currents beyond the financial metrics. The company's biosimulation software and services emerged as the primary growth drivers, reflecting the pharmaceutical industry's accelerating shift toward computational approaches in drug development. This strategic focus positions Certara at the intersection of two powerful forces reshaping pharmaceutical R&D: increasing cost pressures and evolving regulatory frameworks.
The CEO's specific mention of the FDA's recently announced roadmap for reducing animal testing in preclinical studies represents a substantial regulatory tailwind. This isn't merely an incremental opportunity—it signals a fundamental shift in how drug safety and efficacy will be evaluated. As regulatory agencies increasingly accept and sometimes prefer computational models over traditional animal studies, Certara's core technology becomes not just advantageous but essential for pharmaceutical developers.
Despite noting "challenges facing customers in the biopharma industry" (likely referring to ongoing funding constraints and pipeline rationalization), Certara maintained strong growth, suggesting their solutions are increasingly viewed as mission-critical rather than discretionary. Their services appear to be recognized as efficiency enablers that help clients optimize development processes amid constrained budget environments.
The
Reiterates Full Year 2025 Financial Guidance
RADNOR, Pa., May 05, 2025 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its financial results for the first quarter of fiscal year 2025.
First Quarter Highlights:
- Revenue was
$106.0 million , compared to$96.7 million in the first quarter of 2024, representing growth of10% .- Software revenue was
$46.4 million , compared to$39.3 million in the first quarter of 2024, representing growth of18% . - Services revenue was
$59.6 million , flat compared to$57.3 million in the first quarter of 2024, representing growth of4% .
- Software revenue was
- Net income was
$4.7 million , a$9.4 million increase compared to a net loss of$4.7 million in the first quarter of 2024. - Adjusted EBITDA was
$34.8 million , compared to$29.1 million in the first quarter of 2024, representing growth of20% .
"We are pleased with the first quarter’s strong performance in both core biosimulation and the regulatory services businesses," said William F. Feehery, Chief Executive Officer. “The FDA’s recently announced roadmap for reducing animal testing in preclinical studies further demonstrates the vast opportunities ahead for Biosimulation. Certara is well positioned to support the continued adoption of Biosimulation by industry to gain important insights into new therapies. We continue to work closely with our customers as they explore new approaches to make the drug development process more efficient."
"Our first quarter performance reflected strong commercial execution from our team across software and services. Despite the challenges facing our customers in the biopharma industry, we are reiterating guidance for 2025," said John Gallagher, Chief Financial Officer.
First Quarter 2025 Results
Total revenue for the first quarter of 2025 was
Software revenue for the first quarter of 2025 was
Services revenue for the first quarter of 2025 was
Total Bookings for the first quarter of 2025 were
Software Bookings for the first quarter of 2025 were
Services Bookings for the first quarter of 2025 were
Total cost of revenue for the first quarter of 2025 was
Total operating expenses for the first quarter of 2025 were
Adjusted EBITDA for the first quarter of 2025 was
Diluted earnings per share for the first quarter of 2025 was
Net income for the first quarter of 2025 was
Adjusted net income for the first quarter of 2025 was
| THREE MONTHS ENDED MARCH 31, | |||||||
| 2025 | 2024 | ||||||
| Key Financials | (in millions, except per share data) | ||||||
| Revenue | $ | 106.0 | $ | 96.7 | |||
| Software revenue | $ | 46.4 | $ | 39.3 | |||
| Service revenue | $ | 59.6 | $ | 57.3 | |||
| Total bookings | $ | 118.2 | $ | 105.8 | |||
| Software bookings | $ | 40.8 | $ | 33.1 | |||
| Service bookings | $ | 77.4 | $ | 72.7 | |||
| Net income (loss) | $ | 4.7 | $ | (4.7 | ) | ||
| Diluted earnings per share | $ | 0.03 | $ | (0.03 | ) | ||
| Adjusted EBITDA | $ | 34.8 | $ | 29.1 | |||
| Adjusted net income | $ | 22.2 | $ | 16.5 | |||
| Adjusted diluted earnings per share | $ | 0.14 | $ | 0.10 | |||
| Cash and cash equivalents | $ | 179.1 | $ | 224.8 | |||
2025 Financial Outlook
Certara is reiterating its guidance for the full year 2025:
- Full year 2025 revenue to be in the range of
$415 million to$425 million . - Full year adjusted EBITDA margin to be in the range of 30
-32% . - Full year adjusted diluted earnings per share is expected to be in the range of
$0.42 -$0.46 . - Fully diluted shares are expected to be in the range of 162 million to 164 million.
Please note that the Company has not reconciled adjusted EBITDA (including its related margin) 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.
Webcast and Conference Call Details
Certara will host a conference call today, May 5, 2025, at 5:00 p.m. ET to discuss its first quarter 2025 financial results. Investors interested in listening to the conference call are required to register online in advance of the call. A live and archived webcast of the event will be available on the “Investors” section of the Certara website at https://ir.certara.com.
About Certara
Certara accelerates medicines using proprietary biosimulation software, technology and services to transform traditional drug discovery and development. Its clients include more than 2,400 biopharmaceutical companies, academic institutions, and regulatory agencies across 70 countries.
Please visit our website at www.certara.com. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.
Such disclosures will be included in the Investor Relations section of our website at https://ir.certara.com. Accordingly, investors should monitor such portion of our website, in addition to following our press releases, Securities and Exchange Commission filings and public conference calls and webcasts.
Forward-Looking Statements
This press release contains certain statements that constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, with respect to the Company’s full-year guidance, statements related to the continued adoption of biosimulation by the industry, the success of our strategic investments and ability to drive long-term growth, our and other statements about the Company’s future business and financial performance, revenue, margin, and bookings. These statements typically contain words such as “believe,” “may,” “potential,” “will,” “plan,” “could,” “estimate,” “expects” and “anticipates” or the negative of these words or other similar terms or expressions. Any statement in this press release that is not a statement of historical fact is a forward-looking statement and involves significant risks and uncertainties. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot provide any assurance that these expectations will prove to be correct. You should not rely upon forward-looking statements as predictions of future events and actual results, events, or circumstances. 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 any deceleration in, or resistance to, the acceptance of model-informed biopharmaceutical discovery and development; our ability to compete within our market; changes or delays in government regulation relating to the biopharmaceutical industry; trends in research and development (“R&D”) spending; the use of third parties by biopharmaceutical companies and a shift toward more R&D occurring a smaller biotechnology companies; consolidation within the biopharmaceutical industry; evolving corporate governance and public disclosure regulations and expectations; our ability to increase successfully our customer base, expand relationships and the products and services we provide and enter new markets; our ability to retain key personnel or recent additional qualified personnel; risks related to the mischaracterization of our independent contractors; any delays or defects in our release of new or enhanced software or other biosimulation tools; issues relating to use of artificial intelligence and machine learning in our products and services; failure of our existing customers to renew their software licenses or any delays or terminations of contracts or reductions in scope of work by our existing customers; risks related to our contracts with government customers, including the ability of third parties to challenge our receipt of such contracts; our ability to sustain historic growth rates; any future acquisitions and our ability to integrate successfully such acquisitions; the accuracy of our addressable market estimates; our ability to operate successfully a global business and adverse global economic conditions; our ability to comply with applicable anti-corruption, trade compliance and economic sanctions laws and regulations; risks related to litigation against us; the adequacy of our insurance coverage and our ability to obtain adequate insurance coverage in the future; our ability to perform our services in accordance with contractual requirements, regulatory standards and ethical considerations; the loss of more than one of our major customers; future capital needs; the ability or inability of our bookings to accurately predict our future revenue and our ability to realize the anticipated revenue reflected in our; lower utilization rates by our employees as a result of catastrophic events, including natural disasters and epidemic diseases; disruptions in the operations of the third-party providers who host our software solutions or any limitations on their capacity or interference with our use; our ability to reliably meet our data storage and management requirements, or the experience of any failures or interruptions in the delivery of our services over the internet; our ability to comply with the terms of any licenses governing our use of third-party open source software; any unauthorized access to or use of customer or other proprietary or confidential data or other breach of our cybersecurity measures, compliance with privacy and cybersecurity laws and related contractual requirements; our ability to adequately enforce or defend our ownership and use of our intellectual property and other proprietary rights; any allegations that we are infringing, misappropriating or otherwise violating a third party’s intellectual property rights; our ability to meet the obligations under our current or further indebtedness as they become due and our ability to have sufficient capital to operate our business; any limitations on our ability to pursue our business strategies due to restrictions under our current or future indebtedness or inability to comply with any restrictions under our indebtedness; any additional impairment of goodwill or other intangible assets; our ability to use our net operating losses and R&D tax credit carryforwards; any conflict with the interests of our largest shareholders, exclusive forum provisions in our certificate of incorporation; 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 Form 10-K filed by the Company with the Securities and Exchange Commission on February 26, 2025, and subsequent reports filed with the SEC. Any forward-looking statements speak only as of the date of this release and, except to the extent required by applicable securities laws, we expressly disclaim any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events.
A Note on Non-GAAP Financial Measures
This press release contains “non-GAAP measures” which 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, the Company makes use of the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin adjusted net income (loss), adjusted diluted earnings per share, and constant currency (“CC”) revenue, which are not recognized terms under GAAP. These measures should not be considered as alternatives to net income (loss), net income (loss) margin, or GAAP diluted earnings per share or revenue as measures of financial performance or any other performance measure derived in accordance with GAAP and should not be considered a measure of discretionary cash available to the Company to invest in the growth of its business. The presentation of these measures has limitations as an analytical tool and should not be considered in isolation, or as a substitute for the Company’s 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.
You should refer to the footnotes below as well as the “Reconciliation of Non-GAAP Financial Measures” section in this press release below for a further explanation of these measures and reconciliations of these non-GAAP measures in specific periods to their most directly comparable financial measure calculated and presented in accordance with GAAP for those periods.
Management uses various financial metrics, including total revenues, income (loss) from operations, net income (loss), and certain non-GAAP measures, such as adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted diluted earnings per share and CC revenue, 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 adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss), adjusted diluted earnings per share, and CC revenue 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 non-GAAP measures are frequently used by analysts, investors, and other interested parties to evaluate and assess performance. Furthermore, 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 adjust revenues for constant currency to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations and we believe it is helpful for investors to present operating results on a comparable basis period over period to evaluate its underlying performance.
(1) 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.
(2) Adjusted EBITDA represents net income excluding interest expense, provision (benefit) for income taxes, depreciation and amortization expense, intangible asset amortization, equity-based compensation expense, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense and other items not indicative of our ongoing operating performance. Adjusted EBITDA margin represents adjusted EBITDA divided by revenue.
(3) Adjusted net income and adjusted diluted earnings per share exclude the effect of equity-based compensation expense, amortization of acquisition-related intangible assets, goodwill impairment, change in fair value of contingent consideration, acquisition and integration expense, and other items not indicative of our ongoing operating performance as well as income tax provision adjustment for such charges.
In evaluating adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted diluted earnings per share, 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.
Contacts:
Investor Relations Contact:
David Deuchler
Gilmartin Group
ir@certara.com
Media Contact:
Alyssa Horowitz
Pan Communications
certara@pancomm.com
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
| THREE MONTHS ENDED MARCH 31, | ||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) | 2025 | 2024 | ||||||
| Total revenue | $ | 106,004 | $ | 96,654 | ||||
| Cost of revenues | 41,521 | 39,255 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 12,717 | 10,687 | ||||||
| Research and development | 10,522 | 11,995 | ||||||
| General and administrative | 19,654 | 22,979 | ||||||
| Intangible asset amortization | 13,094 | 12,593 | ||||||
| Depreciation and amortization expense | 873 | 432 | ||||||
| Total operating expenses | 56,860 | 58,686 | ||||||
| Income (loss) from operations | 7,623 | (1,287 | ) | |||||
| Other income (expenses): | ||||||||
| Interest expense | (4,806 | ) | (5,751 | ) | ||||
| Net other income | 1,725 | 1,604 | ||||||
| Total other expenses | (3,081 | ) | (4,147 | ) | ||||
| Income (loss) before income taxes | 4,542 | (5,434 | ) | |||||
| Benefit for income taxes | (201 | ) | (751 | ) | ||||
| Net income (loss) | $ | 4,743 | $ | (4,683 | ) | |||
| Net income per share attributable to common stockholders: | ||||||||
| Basic | $ | 0.03 | $ | (0.03 | ) | |||
| Diluted | $ | 0.03 | $ | (0.03 | ) | |||
| Weighted average common shares outstanding: | ||||||||
| Basic | 160,996,258 | 159,524,270 | ||||||
| Diluted | 161,350,292 | 159,524,270 | ||||||
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
| (IN THOUSANDS, EXCEPT PER SHARE AND SHARE DATA) | MARCH 31, 2025 | DECEMBER 31, 2024 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 179,086 | $ | 179,183 | ||||
| Accounts receivable, net of allowances for credit losses of | 93,438 | 102,189 | ||||||
| Prepaid expenses and other current assets | 27,651 | 29,480 | ||||||
| Total current assets | 300,175 | 310,852 | ||||||
| Other assets: | ||||||||
| Property and equipment, net | 1,914 | 2,167 | ||||||
| Operating lease right-of-use assets | 13,205 | 13,841 | ||||||
| Goodwill | 764,338 | 757,038 | ||||||
| Intangible assets, net of | 475,405 | 485,214 | ||||||
| Deferred income taxes | 3,961 | 3,961 | ||||||
| Other long-term assets | 2,013 | 2,031 | ||||||
| Total assets | $ | 1,561,011 | $ | 1,575,104 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,068 | $ | 3,502 | ||||
| Accrued expenses | 23,440 | 56,451 | ||||||
| Current portion of deferred revenue | 72,035 | 77,829 | ||||||
| Current portion of long-term debt | 3,000 | 3,000 | ||||||
| Other current liabilities | 4,536 | 5,306 | ||||||
| Total current liabilities | 108,079 | 146,088 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, net of current portion | 1,277 | 1,049 | ||||||
| Deferred income taxes | 39,142 | 40,421 | ||||||
| Operating lease liabilities, net of current portion | 9,834 | 11,166 | ||||||
| Long-term debt, net of current portion and debt discount | 291,798 | 292,425 | ||||||
| Other long-term liabilities | 26,602 | 25,299 | ||||||
| Total liabilities | 476,732 | 516,448 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred shares, | — | — | ||||||
| Common shares, | 1,625 | 1,620 | ||||||
| Additional paid-in capital | 1,229,660 | 1,216,925 | ||||||
| Accumulated deficit | (123,538 | ) | (128,281 | ) | ||||
| Accumulated other comprehensive loss | (5,268 | ) | (13,424 | ) | ||||
| Treasury stock at cost, 951,191 and 949,698 shares at March 31, 2025 and December 31, 2024, respectively | (18,200 | ) | (18,184 | ) | ||||
| Total stockholders' equity | 1,084,279 | 1,058,656 | ||||||
| Total liabilities and stockholders' equity | $ | 1,561,011 | $ | 1,575,104 | ||||
| CERTARA, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
| THREE MONTHS ENDED MARCH 31, | ||||||||
| (IN THOUSANDS) | 2025 | 2024 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 4,743 | $ | (4,683 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of property and equipment | 873 | 432 | ||||||
| Amortization of intangible assets | 17,741 | 15,996 | ||||||
| Amortization of debt issuance costs | 144 | 380 | ||||||
| Provision for credit losses | 322 | 59 | ||||||
| Equity-based compensation expense | 7,070 | 9,073 | ||||||
| Change in fair value of contingent considerations | (179 | ) | 2,878 | |||||
| Deferred income taxes | 10,502 | (4,829 | ) | |||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 8,736 | 3,635 | ||||||
| Prepaid expenses and other assets | 1,807 | (578 | ) | |||||
| Accounts payable, accrued expenses, and other liabilities | (27,783 | ) | (14,825 | ) | ||||
| Deferred revenues | (5,448 | ) | (3,271 | ) | ||||
| Other operating activities, net | (1,176 | ) | 29 | |||||
| Net cash provided by operating activities | 17,352 | 4,296 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (600 | ) | (619 | ) | ||||
| Capitalized software development costs | (5,174 | ) | (2,959 | ) | ||||
| Net cash used in investing activities | (5,774 | ) | (3,578 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments on long-term debt | (750 | ) | (755 | ) | ||||
| Payments for business acquisition related contingent consideration | (13,230 | ) | (8,649 | ) | ||||
| Payment of taxes on shares withheld for employee taxes | (16 | ) | (943 | ) | ||||
| Net cash provided by (used in) financing activities | (13,996 | ) | (10,347 | ) | ||||
| Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 2,321 | (546 | ) | |||||
| Net decrease in cash, cash equivalents, and restricted cash | (97 | ) | (10,175 | ) | ||||
| Cash, cash equivalents, and restricted cash, at beginning of year | 179,183 | 234,951 | ||||||
| Cash, cash equivalents, and restricted cash, at end of year | $ | 179,086 | $ | 224,776 | ||||
NON-GAAP FINANCIAL MEASURES
The following table reconciles net income ( loss) to Adjusted EBITDA:
| THREE MONTHS ENDED MARCH 31, | |||||||
| 2025 | 2024 | ||||||
| ( in thousands) | |||||||
| Net income (loss)(a) | $ | 4,743 | $ | (4,683 | ) | ||
| Interest expense(a) | 4,806 | 5,751 | |||||
| Interest income(a) | (1,642 | ) | (2,574 | ) | |||
| Benefit from income taxes(a) | (201 | ) | (751 | ) | |||
| Depreciation and amortization expense(a) | 873 | 432 | |||||
| Intangible asset amortization(a) | 17,741 | 15,996 | |||||
| Currency (gain) loss(a) | (62 | ) | 876 | ||||
| Equity-based compensation expense(b) | 7,070 | 9,073 | |||||
| Change in fair value of contingent consideration(d) | (179 | ) | 2,878 | ||||
| Acquisition-related expenses(e) | 876 | 1,714 | |||||
| Reorganization expense(f) | 151 | 51 | |||||
| Loss on disposal of fixed assets(g) | 6 | — | |||||
| Executive recruiting expense(h) | 661 | 380 | |||||
| Adjusted EBITDA | $ | 34,843 | $ | 29,143 | |||
The following table reconciles net income (loss) to adjusted net income:
| THREE MONTHS ENDED MARCH 31, | |||||||
| 2025 | 2024 | ||||||
| ( in thousands) | |||||||
| Net income (loss) (a) | $ | 4,743 | $ | (4,683 | ) | ||
| Currency (gain) loss(a) | (62 | ) | 876 | ||||
| Equity-based compensation expense(b) | 7,070 | 9,073 | |||||
| Amortization of acquisition-related intangible assets(c) | 14,052 | 13,348 | |||||
| Change in fair value of contingent consideration(d) | (179 | ) | 2,878 | ||||
| Acquisition-related expenses(e) | 876 | 1,714 | |||||
| Reorganization expense(f) | 151 | 51 | |||||
| Loss on disposal of fixed assets(g) | 6 | — | |||||
| Executive recruiting expense(h) | 661 | 380 | |||||
| Income tax expense impact of adjustments(i) | (5,071 | ) | (7,089 | ) | |||
| Adjusted net income | $ | 22,247 | $ | 16,548 | |||
The following tables reconciles diluted earnings per share to adjusted diluted earnings per share:
| 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 | |||||
The following tables reconcile revenues to the revenues adjusted for constant currency:
| THREE MONTHS ENDED MARCH 31, | Change | ||||||||||||||||||||||||||
| 2025 | 2025 | 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 | % | |||||||||||||
| (a.) | Represents a measure 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. |
FAQ
What were Certara's (CERT) key financial results for Q1 2025?
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