NASDAQ$CERT

Certara Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Certara experienced revenue growth and increased profitability.

Certara reported a successful start to the year with a 16% increase in revenue compared to Q1 2020, driven by technology-enabled services and software licenses and subscriptions. Net income saw a slight increase, and adjusted EBITDA grew by 20%. The company updated its full-year 2021 guidance, raising the low end of the range for revenue and adjusted EBITDA and lowering the range for its effective annual tax rate.

  • Revenue reached $66.7 million, a 16% increase year-over-year.
  • Net income increased slightly to $1.1 million.
  • Adjusted EBITDA grew by 20% to $23.9 million.
  • Full year 2021 revenue guidance updated to $277 million - $285 million and adjusted EBITDA guidance updated to $100 million - $102 million.

Headline financials

Total Revenue

$66.7M

Previous: $57.4M+16.1%
EPS (adj)

$0.06

Previous: $0.01+500.0%
Adjusted EBITDA

$23.9M

No prior period
Capital Expenditures

-$222K

Previous: $459K-148.4%
Free Cash Flow

$830K

Previous: $8.36M-90.1%
Net Income

$1.05M

Previous: $1.05M+0.6%
Operating Income

$5.62M

Previous: $8M-29.7%
Gross Profit

$40.7M

Previous: $35.3M+15.4%
Cash & Equivalents

$273M

Previous: $53.9M+406.9%
Total Assets

$1.26B

No prior period

Revenue & EPS history

Certara · Revenue · Quarterly

$66.7M

Q1 2021+16.1%vs Q1 2020
Beat estimate in 7 of 9 quarters(78%)
ActualEstimate

Revenue by segment

Certara · $90.3M total across 2 segments · Q1 2023

  • Services
    $57.3M
  • Software
    $33M

Forward guidance

Certara updated its full year 2021 guidance by raising the low end the range for revenue and Adjusted EBITDA and lowering the range of its effective annual tax rate.

Tailwinds

  • Full year 2021 revenue to be in the range of $277 million to $285 million.
  • Full year 2021 Adjusted EBITDA to be in the range of $100 million to $102 million.
  • Full year 2021 Adjusted Diluted Earnings Per Share is expected to be in the range of $0.20 to $0.24.
  • Fully diluted shares for 2021 will be 153 million to 155 million.
  • Effective annual tax rate for 2021 will be in the range of 40% to 45%.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-4.5%

Avg return

Earnings day

-6.4%

Avg return

5 days after

-3.8%

Avg return

30 days after

33%

8 / 24 earnings

Positive

+28.1%

Q3 2022

Best reaction

-23.0%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-18.9%-29.2%-17.9%
Q4 2025+3.3%+9.9%-12.7%
Q3 2025-23.0%-26.5%-18.2%
Q1 2025-11.0%-6.3%-8.5%
Q3 2024+6.6%+5.6%+5.2%
Q2 2024-12.6%-16.1%-23.1%
Q1 2024-7.3%-3.6%-2.6%
Q4 2023+7.8%+9.6%+5.3%
Q3 2023+0.6%+3.5%+30.6%
Q2 2023-10.0%-6.5%-19.5%
Q1 2023-9.5%-12.1%-18.9%
Q4 2022+19.4%+18.4%+33.1%
Q3 2022+28.1%+37.6%+64.0%
Q2 2022-15.6%-27.2%-32.6%
Q1 2022-2.5%-11.3%-1.4%
Q4 2021-13.5%-21.9%-15.2%
Q4 2019-13.5%-21.9%-15.2%
Q3 2021-5.5%-7.4%-33.7%
Q3 2020-5.5%-7.4%-33.7%
Q2 2020+0.6%+0.3%+34.9%
Q2 2021+2.3%-0.0%+35.3%
Q1 2020-0.1%-7.9%-10.7%
Q1 2021-6.1%-9.9%-16.4%
Q4 2020-22.2%-23.5%-19.1%
Q3 2019
Q2 2019
Q1 2019

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