NASDAQ$SLP

Simulations Plus Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Simulations Plus Q1 2023 financial results were reported, with revenue and EPS aligned with fiscal 2023 guidance and Q1 expectations, along with a capital allocation strategy update.

Simulations Plus reported a 4% decrease in total revenue to $12.0 million for Q1 2023. Diluted EPS was $0.06. The company is focusing on corporate development activities, a $50 million share repurchase program, and internal investment.

  • Total revenue decreased 4% to $12.0 million.
  • Software revenue decreased 17% to $6.1 million, representing 51% of total revenue.
  • Services revenue increased 17% to $5.9 million, representing 49% of total revenue.
  • Diluted EPS was $0.06, compared to $0.15 in the previous year.

Headline financials

Total Revenue

$12M

Previous: $12.4M-3.6%
EPS (adj)

$0.06

Previous: $0.15-60.0%
Capital Expenditures

-$109K

Previous: -$561K+80.6%
Free Cash Flow

$1.14M

Previous: $2.47M-53.9%
Net Income

$1.25M

Previous: $3.03M-58.9%
Operating Income

$878K

Previous: $3.79M-76.8%
Gross Profit

$9.29M

Previous: $9.66M-3.8%
Cash & Equivalents

$49.4M

Previous: $41.7M+18.5%
Total Assets

$190M

Previous: $181M+5.2%
Stock-Based Comp

$1.04M

Previous: $722K+43.5%

Revenue & EPS history

Simulations Plus · Revenue · Quarterly

$12M

Q1 2023-3.6%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Simulations Plus · $12M total across 2 segments · Q1 2023

  • Software
    $6.07M
  • Services
    $5.89M

Forward guidance

The company believes they remain on-pace to achieve their full-year guidance of 10-15% organic revenue growth and 5-10% diluted EPS growth.

Tailwinds

  • Company expects to maintain high gross margins.
  • Company expects to maintain robust renewal rates.
  • Company expects low to mid-teens organic long-term revenue growth rates.
  • Company expects higher profit growth rates.
  • Company expects higher free cash flow.

Headwinds

  • This will be a year of transition as the company invests in its organization.
  • The company is streamlining its software renewal process.
  • Operating leverage inherent in the business is expected to be temporarily reduced.
  • FX negative impact on our revenue
  • New sales were expected to push into our second quarter to align with customers’ new calendar year budgets.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.7%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+4.7%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+23.2%

Q2 2024

Best reaction

-24.2%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+3.9%+12.7%+28.4%
Q1 2026+8.5%+3.4%-28.1%
Q4 2025+14.2%+14.8%+6.5%
Q3 2025-0.5%+1.3%+9.8%
Q2 2025+7.8%+7.3%+39.9%
Q1 2025-3.1%-2.9%+22.3%
Q4 2024-9.6%-9.8%-8.6%
Q3 2024-13.6%-15.8%-13.4%
Q2 2024+23.2%+28.0%+21.0%
Q1 2024-8.2%-12.2%-15.3%
Q4 2023-16.2%-14.9%-0.4%
Q3 2023-3.5%+4.3%+16.3%
Q2 2023-0.3%+2.2%-3.7%
Q1 2023-6.1%-4.4%+14.7%
Q4 2022-12.7%-10.6%-11.1%
Q3 2022+8.5%+7.4%+31.1%
Q2 2022+6.9%+2.6%-10.4%
Q1 2022+4.7%+1.4%-14.8%
Q4 2021+16.9%+28.3%+29.6%
Q3 2021-17.4%-18.6%-13.2%
Q2 2021-2.5%+0.7%-12.5%
Q1 2021-13.6%-13.5%+0.2%
Q4 2020-8.4%-13.5%-11.5%
Q3 2020+1.0%+0.8%+6.5%
Q2 2020+4.4%+10.2%+16.8%
Q1 2020+9.1%+6.8%+11.5%
Q4 2019+3.7%+5.5%+0.1%
Q3 2019+10.4%+12.8%+34.4%
Q2 2019+11.8%+8.1%+17.4%
Q1 2019-7.1%-5.3%-4.5%
Q4 2018+0.3%-0.2%-6.0%
Q3 2018-24.2%-23.4%-22.5%
Q2 2018+9.8%+10.1%+24.5%
Q1 2018+1.9%+5.2%+1.3%
Q4 2017-4.5%-4.2%-2.1%
Q3 2017+5.8%+8.5%+8.5%
Q2 2017-2.2%+0.0%+9.4%
Q1 2017+4.2%+4.7%+1.6%
Q4 2016+2.9%+4.6%+10.9%
Q3 2016+0.5%+3.2%+5.4%
Q2 2016-0.8%
Q1 2016+1.5%
Q4 2015+4.6%
Q3 2015+12.6%
Q2 2015+0.7%
Q1 2015-0.9%
Q4 2014-2.0%
Q3 2014+5.7%
Q2 2014+1.0%
Q1 2014+6.3%
Q4 2013-6.1%
Q3 2013+2.8%
Q2 2013+1.0%
Q1 2013-1.6%
Q4 2012+0.9%
Q3 2012-0.7%
Q3 2011-0.7%
Q2 2012+1.1%
Q1 2012+2.0%
Q1 2011+2.0%
Q4 2011+2.0%
Q2 2011+2.0%
Q4 2010+3.1%
Q3 2010+0.8%
Q2 2009-0.9%

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