NASDAQ$CERT

Certara Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Certara's Q4 2022 earnings were reported, with revenue growth of 15% and net income of $9.2 million, marking a significant turnaround from the net loss in Q4 2021.

Certara reported a strong finish to 2022, with Q4 revenue reaching $86.6 million, a 15% increase year-over-year, and net income of $9.2 million, a substantial improvement from the net loss of $9.7 million in the same quarter of the previous year. The company's full-year revenue grew by 17% to $335.6 million, and net income was $14.7 million, compared to a net loss in the previous year.

  • Q4 2022 revenue increased by 15% to $86.6 million, or 18% on a constant currency basis.
  • Net income for Q4 2022 was $9.2 million, a significant improvement from the $9.7 million net loss in Q4 2021.
  • Adjusted EBITDA for Q4 2022 grew by 13% to $31.9 million.
  • Full year 2022 revenue grew 17% to $335.6 million, and net income was $14.7 million.

Headline financials

Total Revenue

$86.6M

Previous: $75.3M+15.0%
EPS (adj)

$0.16

Previous: $0.01+1500.0%
Adjusted EBITDA

$31.9M

No prior period
Adjusted Net Income

$25.2M

No prior period
Capital Expenditures

$181K

Previous: $148K+22.3%
Free Cash Flow

$35.3M

Previous: $20.7M+70.7%
Net Income

$9.2M

Previous: -$9.7M+194.9%
Operating Income

$11.4M

Previous: $3.44M+230.6%
Gross Profit

$54.9M

Previous: $46.1M+19.1%
Cash & Equivalents

$237M

Previous: $186M+27.3%
Total Assets

$1.57B

Previous: $1.51B+4.0%

Revenue & EPS history

Certara · Revenue · Quarterly

$86.6M

Q4 2022+15%vs Q4 2021
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 anticipates full year 2023 revenue to be in the range of $370 million to $385 million and adjusted EBITDA to be in the range of $131 million to $137 million. They also anticipate full year adjusted diluted earnings per share to be in the range of $0.50 - $0.55.

Tailwinds

  • Full year 2023 revenue is expected to be between $370 million and $385 million.
  • Full year 2023 adjusted EBITDA is projected to be between $131 million and $137 million.
  • Full year adjusted diluted earnings per share is expected to be in the range of $0.50 - $0.55.
  • The company's prospects remain very bright.
  • The pace of market adoption and expanding awareness of Certara's biosimulation platform worldwide is encouraging.

Headwinds

  • The company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures.
  • 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.
  • The variability of these items is expected to have a potentially unpredictable impact on future GAAP financial results.
  • Economic conditions, including inflation and recession, could negatively impact results.
  • Global conflicts, such as the conflict between Russia and Ukraine, could negatively impact results.

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 Q4 2022

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro