NASDAQ$CERT

Certara Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Certara's revenue increased, driven by technology-driven services and software, but net loss was reported due to increased costs.

Certara's Q2 2022 revenue grew by 18% year-over-year to $82.8 million, but the company reported a net loss of $0.6 million. Growth was fueled by the technology-driven services and software, but was offset by foreign currency exchange rates and slow growth in the regulatory services business.

  • Revenue was $82.8 million, an 18% increase compared to Q2 2021.
  • Excluding Pinnacle 21, revenue was $75.8 million, representing 8% growth.
  • Net loss was $0.6 million, an increase of $2.3 million in income over Q2 2021.
  • Adjusted EBITDA was $28.0 million, a 9% increase compared to Q2 2021.

Headline financials

Total Revenue

$82.8M

Previous: $70.1M+18.1%
EPS (adj)

$0.09

Previous: $0.03+200.0%
Adjusted EBITDA

$28M

Previous: $25.5M+9.8%
Capital Expenditures

-$859K

Previous: -$511K-68.1%
Free Cash Flow

-$1.45M

Previous: -$3.37M+57.0%
Net Income

-$589K

Previous: -$2.86M+79.4%
Operating Income

$4.15M

Previous: $5.27M-21.3%
Gross Profit

$47.6M

Previous: $42.6M+11.8%
Cash & Equivalents

$195M

Previous: $268M-27.3%
Total Assets

$1.5B

Previous: $1.27B+18.7%

Revenue & EPS history

Certara · Revenue · Quarterly

$82.8M

Q2 2022+18.1%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Certara · $82.8M total across 2 segments · Q2 2022

  • Services
    $54M
  • Software
    $28.7M

Forward guidance

Certara is adjusting its previously reported guidance for full year 2022 to a new full year guidance of $325 million to $335 million for revenue, $112 million to $117 million for adjusted EBITDA, and $0.43-$0.48 for adjusted diluted earnings per share.

Tailwinds

  • Revenue between $325 million and $335 million.
  • Adjusted EBITDA between $112 million and $117 million.
  • Adjusted diluted earnings per share between $0.43 and $0.48.
  • Fully diluted shares for 2022 to be in the range of 159 million to 161 million.
  • Cash tax rate for 2022 to be in the range of 20% to 25%.

Headwinds

  • Revised guidance assumes foreign currency exchange rates remain substantially unchanged from the rates as of June 30, 2022.
  • Slow recovery in the regulatory services market.
  • GAAP tax rate for 2022 to be in the range of 40% to 45%.
  • Variability and low visibility with respect to costs related to acquisitions.
  • Variability and low visibility with respect to costs related to financings, and employee stock compensation programs

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 2022

Historical avgQ2 2022

-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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