NASDAQ$CERT

Certara Inc. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Certara's first quarter performance in 2024, marked by revenue growth driven by the software segment, but net loss compared to net income in the same quarter last year.

Certara reported a 7% increase in revenue, driven by strong software revenue growth of 19%. However, the company experienced a net loss of $4.7 million, compared to a net income of $1.4 million in the first quarter of 2023, and a decrease in Adjusted EBITDA to $29.1 million from $32.3 million year-over-year.

  • Total revenue increased by 7% year-over-year, reaching $96.7 million.
  • Software revenue grew by 19% year-over-year, amounting to $39.3 million.
  • Services revenue remained flat at $57.3 million compared to the first quarter of 2023.
  • The company reported a net loss of $4.7 million, a decrease compared to a net income of $1.4 million in the first quarter of 2023.

Headline financials

Total Revenue

$96.7M

Previous: $90.3M+7.0%
EPS

-$0.03

Previous: $0.12-125.0%
Adjusted EBITDA

$29.1M

No prior period
Adjusted Net Income

$16.5M

No prior period
Total Bookings

$106M

No prior period
Software Bookings

$33.1M

No prior period
Service Bookings

$72.7M

No prior period
Capital Expenditures

-$619K

Previous: -$317K-95.3%
Free Cash Flow

-$5.3M

Previous: $1.04M-609.3%
Net Income

-$4.68M

Previous: $1.36M-444.8%
Operating Income

-$1.29M

Previous: $7.44M-117.3%
Gross Profit

-$39.3M

Previous: $55.4M-170.8%
Cash & Equivalents

$225M

Previous: $244M-7.9%
Total Assets

$1.54B

Previous: $1.57B-1.6%

Revenue & EPS history

Certara · Revenue · Quarterly

$96.7M

Q1 2024+7%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

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

  • Services
    $57.3M
  • Software
    $33M

Forward guidance

Certara is reiterating its 2024 outlook, and expects full year 2024 revenue to be in the range of $385 million to $400 million, full year adjusted EBITDA is expected to grow with expected margin to be in the range of 31-33%, full year adjusted diluted earnings per share is expected to be in the range of $0.41-$0.46, and Fully diluted shares are expected to be in the range of 160 million to 162 million.

Tailwinds

  • Full year 2024 revenue to be in the range of $385 million to $400 million.
  • Full year adjusted EBITDA is expected to grow with expected margin to be in the range of 31-33%.
  • Full year adjusted diluted earnings per share is expected to be in the range of $0.41-$0.46.
  • Fully diluted shares are expected to be in the range of 160 million to 162 million.

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 2024

Historical avgQ1 2024

-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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