NASDAQ$CERT

Certara Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Certara's financial performance declined due to an increase in stock-based compensation expense, despite revenue growth and strategic acquisition announcement.

Certara reported a 15% increase in revenue to $70.1 million for Q2 2021. However, the company experienced a net loss of $2.9 million, compared to a net income of $2.8 million in the same quarter of the previous year, primarily due to increased stock-based compensation expense. The company announced an agreement to acquire Pinnacle 21 and raised its full-year 2021 guidance.

  • Revenue increased by 15% year-over-year, reaching $70.1 million.
  • Net loss was ($2.9) million, a decrease compared to a net income of $2.8 million in Q2 2020.
  • Adjusted EBITDA grew by 1% year-over-year, totaling $25.5 million.
  • Agreement announced to acquire Pinnacle 21 for $310 million in cash and stock.

Headline financials

Total Revenue

$70.1M

Previous: $61.1M+14.7%
EPS (adj)

$0.03

Previous: $0.02+50.0%
Adjusted EBITDA

$25.5M

No prior period
Capital Expenditures

-$511K

Previous: $179K-385.5%
Free Cash Flow

-$3.37M

Previous: $7.64M-144.1%
Net Income

-$2.86M

Previous: $2.78M-202.9%
Operating Income

$5.27M

Previous: $13.6M-61.2%
Gross Profit

$42.6M

Previous: $40.5M+5.1%
Cash & Equivalents

$268M

Previous: $55.7M+381.0%
Total Assets

$1.27B

No prior period

Revenue & EPS history

Certara · Revenue · Quarterly

$70.1M

Q2 2021+14.7%vs Q2 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 previously reported guidance for full year 2021, not including the impact of the Pinnacle 21 acquisition, by raising the ranges for revenue, Adjusted EBITDA and Adjusted Diluted Earnings Per Share.

Tailwinds

  • Full year 2021 revenue to be in the range of $283 million to $289 million
  • Full year 2021 Adjusted EBITDA to be in the range of $101 million to $103 million
  • Full year 2021 Adjusted Diluted Earnings Per Share is expected to be in the range of $0.21 to $0.25
  • 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 Q2 2021

Historical avgQ2 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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