SLP - Earnings call transcript Q3 2021

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Operator

Greetings, and welcome to the Simulations Plus' Third Quarter Fiscal 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure Brian my IR. from now is to Siegel introduce Hayden It you, Thank Mr. begin. you Siegel, may

Brian Siegel

CEO, everyone. presentation. afternoon, financial the Simulations questions Will call. XXXX our to opportunity results Hosting and ask Plus' Frederick. are An today follow Good call to conference Welcome today's third will O'Connor; CFO, Shawn quarter fiscal

actual are of the market matters The discussed Before beginning, remind of the products to company's information factors and information, risk like results of that skilled everyone that the Securities personnel risks company's this Shawn? on could timely historical presentation forward-looking company I significantly contribute factors, from demand but limited would cause with company's to I that with statements ability Shawn those fashion, statements. involve and the continue attract Commission. With competitive over to the produce ability annual current differ Exchange improve would Factors company's a new growth, to filed continued is said, exception and the company's the in that are call to sustain and can or future for the to, the products, company's the to finance in or O'Connor. levels and to retain include, such to ability and and company's turn reports Further contained to ability the differences the productivity. not in like uncertainties. quarterly the

Shawn O'Connor

growth more well believe forward, top XX% was bottom our past. by from in than growth revenues highlighted that historical our they solutions, growth rates you, performance to Plus Thank we have quarter exceeding the will above software Accordingly, growth. line continued Brian. Simulations XX%, quarter contribute consolidated The going XX% another with heavily and to rates. delivered strong of software

latter X we the XX% of in service high to Our decline. quarter, quarter. the view projects, service by and delays, the of holds an saw number factors, on service total, due development to which the unusually which overall program confident expansion several an project these impacted in was encountered leading all of or during and business drug decline we as during revenue disruptions, the impacted growth This pipeline near-term bookings Despite quarter. occurred solid business part backlog mid- to the long-term remain cancellations,

our our bottom faster than Given able evidenced grow top quarter. our we the the line, mix, strong software profitability strong to were by in as line

of results X our all exceeded expanding In accelerating the fact, growth business income revenues have we our and model inherent in net leverage reflect income total net our our XXXX. fiscal in months the through made software These for of margin. progress and profit our

interaction software As or rates this quarter, our pharmacokinetic, We XX%, DDI during drug-drug I upsells and added respectively. X was and XX module HTPK increase GastroPlus a or for solutions. strong with throughput customers demonstrating to growth XXX,XXX-plus club continued the license Predictor had mentioned, have of year continued to from last of the license the to high This and growth ADMET a to portfolio, quarter our renewals. and growth new with now our acquisition robust upsell. revenues as XX% outperform our up cross-sell our combined product of early is efforts and and anniversary due organic strength of expectations, Monolix demand the last with year. entirely revenue combination both X-year of we to passed XXX%

during a market. in new of quarter, training addressable China expanding the distributor the completed our also We significantly

deeper cross-selling paying opportunity customers. by and Our our relationship and business increasing pipeline development creating investments are a off with sales

selection, Predictor, to enhance for better and We release improved new a overall and enhanced our accuracy, latest extend capabilities with and ADMET experience. allow user which lead also industry performance continue automation add position the leadership will of

quarter, fourth is Suite newest in by the the on for calendar of year-end. track the Monolix is Additionally, version target and on [GPxXX] release release for

Turning service to offerings. our

and service volatility. of nonrecurring some revenue can, is exhibit therefore, measure Our

and to encountered largely our and into quarter, or $XXX,XXX the and drug revenue do cancel to new But customer environment, programs the aggressive We in are see this the QSP/QST development projects changes are our forward by development from pandemic this to mix fourth services projects cancellations. out to and delayed PK/PD significant in impacted we offset been delays project $XXX,XXX quarter, projects that revenue by have quarter. or continue program that several so our disruptions range. backlog. typically pulled accelerate projects the will During Customers are several of delays quicker growth. time saw control. drug meet Historically, impacted PK/PD lines issues challenging the

whether customers allows compound. or on of contribute service an to decisions not industry the our and make this technology development project with to fast can quickly Fail objective, more volatility. to is proceed Our

with a COVID impact. on projects saw tail as often delays sourced in quarter of end are from of the research compound. FDA service projects latter, to respect specific initiated requesting We With past into also the from the the as Israel based elements feedback this well more

time the as as of clinical has for trial submitted has and the FDA disruptive, to and the During drugs this time. line well workflow FDA somewhat normal impacted to the the for be schedule been pandemic, regulators reviews FDA and with certain other the

these somewhat Since saw large quarter. we the many and number COVID cycle late sales during changes elongated of our came already. in had As a notifications a of result, been

were at the resources the our the reallocate Our ability note, this the despite bookings backfill approximately increased for of service good. On backlog to typical projects by not X% these business, and levels cancellation. And positive make limiting up changes. a for to during was quarter backlog our

X which optimism. quarter, reinforces also We clients the our added new during

had tend a regulators that fiscal this and sponsor On are to higher-than-normal capabilities that to a side, concluded in very larger late these have making dollars, large revenue Further, the be when provide projects of smaller of projects driving in the X this area. we standard result in work liver the feedback terms QSP/QST gold QSP/QST of compound potential want more on FDA toxicology additional XXXX, from volatile. revenue. usually for projects data issues with the the

to continues rearview think the development pipeline overall COVID will pharma normalize. As we mirror,

see opportunities Separately, sales That did normal the in backlog furthering integration remains in and opportunities. to pipeline larger leaders. our will said, industry with large, significant model convert ultimately, an than additional our consortium We add fact, we liver to revenue. the member quarter, with

operating Finally, but results challenging than the solid show. Overall, service services our regulatory the the and more quarter this in reported are PBPK quarter encouraging capacity. for resources services division, our our are at trends performance

is projects -- project-based to The result nature these healthy robust overperformance Our and services in demand of growing. enjoy periods sales continue and periods some of revenues underperformance. some of our pipeline and

our for services executions revenue, revenue market quarter to its growth outlook to to exposure full in And volatility encountered service for outlook revenue fluctuations is long-term Our we the minimize service adoption the we Based revenue growth. slowdown to and change long in total contribute or our run on and a disruption of overall not remains The company. are the expecting this business year our as growth to our in our improve the with business, accelerating profitability. XX%. modeling continue reflective growth services prospects unchanged simulations ability that now X% of software of any

that revenue 'XX account guidance holds to XX%. see the in projects. XX% means timing will don't was lower are over forward. when projects a decline grow grow we we and have that that year and accelerated to drug customer in see annually. by revenue we to the fourth third to due XX% quarter revenue as move the growth into of fiscal delays, XXXX likely we're QX full to and fiscal were software related than expect situation year will This visibility year. our to yet down year to the this XX% development anticipated the renewals expecting temporary program the While guidance, year-to-date more longer we X%, X% for timing Breaking full Again, yet view of and our the these releasing fiscal of predict to not we takes is Year-to-date, XX% service revenues, strictly we The full necessary cancellations the down, services term quarter. our flat Monolix believe

Will our Let to me call to now results. discuss financial Frederick, the CFO, turn the

Will Frederick

Thank Shawn. you,

in to growth with an the combined our mix up software These quarter. as as growth for and year-to-date XX% shift last our changes XX% mentioned, XX% was mix last a although growth of slowed due XX% growth the revenue Shawn consolidated When software, also our making for year-to-date, revenue year. rate with versus increased pronounced, towards shift in growth, not impacted rate versus software rate X% quarter to accounted revenue the shift of XX% revenue our the to As acceleration business. which challenges year, saw services mix XX% to we facing

would expect, positively revenue quarter. impacted mix our these the total trends margin you As for gross

were overall margins the basis, last gross leading a mix with services On this and respectively, both XX% and to year. XX% overall last XX% from increasing larger to at gross margin to shift year-to-date from gross margin Software year increase XX% an XX%, year consistent increase XX% impact to at a flat expansion had to an were while margin last XX%, leading on gross XX%, from XX%. software with year services roughly

revenue products. XX% quarter enjoy for of revenue. our a Predictor GastroPlus XX%. quarter. of to XX% growth software Year-to-date, continue And represented Suite software and the Monolix Predictor of solid representing revenue represented of was GastroPlus X% revenue software Suite in in portfolio revenue, mix XX% with software of QX of across was XX% other We software ADMET diverse the with the XX%, entire Monolix the was quarter. software represented ADMET

was with our rate renewal historic the years. this the causing fees. client fourth occurred in dip on Had into by prior renewal For this the fees our our had quarter, in We fiscal based quarter, XX% would been quarter, consistent XX% level. renewal have rate slip X renewal

to nonprofit renewal X-year based with tend due is the beyond of the nonprofit difference or no Our reflected not term. and license We and these to they no between this rate to lower in turnover XX% licenses. be academic licenses quarter academic This at the at charge, turnover and licenses on the the prices or offer discounted accounts-based customers fees priced renewed initial renewals. groups charge and was

was XX%. The continue have on nonprofits revenue the customer customer in on per around average year-to-date renewal just occurred academics. this revenue based average our rate in success also Year-to-date, late the upselling renewal historical quarter, the and in at by $XX,XXX customers, rates per fees would to our and with based rate I demonstrates all software for customers in base. including solutions been line cross-selling fees we've and renewal mentioned for XX% Had and see XX% customer our commercial improvement across customers. at We had $XX,XXX

customer per around commercial customers customers, revenue We also and nonprofits including $XXX,XXX average at to improvement continued for see all in our academics. and $XX,XXX for

Let our shift me to now services business.

decreased from For quarter XX% the from as year. our $XX.X the XX% million due services, by PK/PD metrics, up the period services was service XX% in of during mentioned. backlog, last million Year-to-date, last Shawn services. year dispersed regard XX% services changes disruptions service the from mix couple previously fiscal to to projects project total to services the period fiscal $X.X with service PBPK were breakdown X% follows: revenues We With the to same a type. closed and and compared revenue compared other same quarter similarly quarter, from key services, QSP/QST

to for the million XX% compared effective was period to Turning for and to fiscal $X.X same increased a revenue last amount the in for the an compared expenses $X.X we our leverage XX% expect in or same X% increased period an fiscal was period year. share additional year. fiscal with by SG&A offset last increase in rate mentioned on the year of was XX% driven similar R&D increase fiscal XX% The revenue that quarter. million revenue of $X.X demonstrated on increased Capitalized XX%. per $X.XX looking of to effective $X saw year, operating quarter quarter. X% profitability million, by period call and revenue taxes year. quarter at same diluted compared payroll-related also tax to tax The million to the compared last metrics, our revenue, the $X.X or the were for $X.X increased last profitability quarter $X.X disqualifying effective in X% year. And result quarter of fiscal model When to or million to overall $X.X XX% $X.X earnings million, dispositions. earnings was QX, revenue same revenue $X.X expense provision to period in margin the million or was revenue the last in effective expenses. to fiscal from million EBITDA $X.XX operations XX% or expansion last a income same the the for consolidated same subject including and year. increase share in of benefit associated revenue this our to million the had significant million the with Net same period for metrics we R&D our last of $X.X in statement to XX% primarily Income of XX% which of of expenses. gross the of gross in shareholders, modest last an to EBITDA the last same period SG&A compared in The modest X% rate partially rate even to of the $X.X we tax increases lower $X.X to period higher $X.X again drove R&D quarter for if demonstrate The a as rate to million fiscal compared growth Total X% fluctuates. continued balance dispositions last deliver profitability year. to primarily was quarter-to-quarter the any primarily million quarter's for margin was the ability to year. $X.X compared the to X% for This margin $X.X these in XX% income compared the tax for increase and was by per to earnings In higher end year. driven growth we where period disqualifying fiscal of in of million or EPS. overall income XX% line in million same million revenue last revenue fiscal costs tax million summary, expenses the XX% factors, were compared expansion or

fiscal the XX% in Turning fiscal an year. to compared expenses as to the same $XX.X in XX% of as $X.X expenses. and for of the XX% or or was to year. gross were $XX.X increases to increase the EBITDA our Net partially $X.X XX% in XX% Total million $X.X the period this the XX% the million same to of R&D of SG&A to to to was revenue compared costs earnings to to increased $X.XX by diluted consolidated revenue $X.X million last by increased the compared Capitalized period R&D year. operations statement. to or fiscal insurance a $X.X of SG&A fiscal primarily or an to X% revenue in income for for period in increased from XX% period last compensation last increase Similar offset were fiscal million fiscal same on year. and was Income same And labor, same same contract fiscal the period last to QX, year-to-date fees. or compared was same revenue revenue million revenue R&D also per million professional $X revenue, for $XX.X the of year. to or increase of expenses fiscal million primarily income same of expenses last driven last operating period revenue result million compared X% share in $X.X which in period due in year. million revenue year period compared higher well margin million year. $X.X increase compared year. quarter, the X% increased year-to-date $XX $X.XX million, Similar last X% of million, higher expenses payroll-related last last increased million were million compared of $XX.X $X.X headcount to was or

and the our through quarter, internal last investment expansion have We the at our to to the million support short-term to sheet. reserves At was significant end end reflecting $XXX cash balance year, a of $XXX.X and continued fiscal investments million cash activity. of continue strong M&A compared balance

also the continue no sheet. back to now on I'll the turn debt have Shawn. We balance call to you,

Shawn O'Connor

and rates service conclusion, growth We but profitability growth rate. rates, growth our service delays accelerated In tools with position development future. industries pharmaceutical agencies, richer scientific software mix Will. This regulatory slow model-based a growth consistent reinforce back to you, enhancing metrics as near-term integrated consolidated giving us to and XX%. short-term in revenues of the are deliver us a leadership revenue look the normalization and credibility in excess point our is a academia Thank bookings our in software and we will techniques. and revenue drug putting our in backlog improvements associated to remain phenomenon and Strategically, of to continue the in both of well we

generating business are in expected investments development Our results. the

with close renewal key We good of have and business, momentum of collaborations and growth relationships, existing market grants. new the

are to embarking Plus. anniversary, charitable XXth host XXth the of and on will of events that user want part anniversary I Finally, of conferences. we a the series celebration contributions exciting throughout our mention a of Simulations including company year The of as exciting founding the

through we'd a the industry. have is and software Operator? the modeling, past encouraging way your while in to increasingly see take and vision decades, We happy to [Altus’] that be the drug With X.X of embraced it be come accelerating development long that, process by questions.

Operator

Instructions]. [Operator

comes from Group. with Matt question Hewitt first Capital Our Craig-Hallum

Matthew Hewitt

for couple me. Just a

for the far could dig you're providing as little what seeing a wondering in from service just you the bit side. if as more you on customers. Thank First I'm color.

new to you are to move prepandemic? past And the ramp when up early. on over the And it fail that quickly the projects kind next project, kind various that how fast year? things able changed projects? be on to move they of get of mentioned for back You the may has and How

Shawn O'Connor

and Yes, modeling on some the services objective. that time that Matt. and and Fail achieving objective for simulation, slogan industry fast we has been in tools provide are and focused very a the

and there. always of objective I the delayed there of techniques. Oftentimes, by programs environment project out of and best the either as work, adoption and decisions that latter hasn't of been delays quarter being our have been has that we changing dictated We've not projects start timing priorities here, start resorting these move situations, if resources part from bear. the of to started accelerating. I completed, that X hold more got development And those can. clinical trial occurrence the been as while and dates and maybe new quick those in We we're in are you priorities project COVID In canceled. we projects of changing the think the early, if the trial. modeling-based spotlight few focus, to on other cancel of phenomena and level. to Accelerating, have have development have the to do has put reallocate closure going experiencing the of approach know projects settle or those data delivery will, And we or can't down forward. So projects, the programs that backlog, by been certain or programs closed every to typical but projects that those a come were always a to drug cancellation bit, sorts quarter returned or in think, at things to see this are

to of So been in able But our typically, that. we've bit resorting work. terms it's hampered a of little do project

backlog it before rising, the in this is I now level the case, it reaching just is was think COVID. while

in the somewhat number was could hampered. And the through and delayed -- of so that we backlog replace ability projects projects our sort

may the A, And we not past. respond number the in but because and so so projects past, to could in fill portfolio still is not as could may as of have the of been our robust backlog gap growing of the as delays; not it have B,

Matthew Hewitt

alluded in are to I you this of pick that back helpful. up this bit -- to of the Okay. lived. QX? on like uncertain side it That's short be in you're that mentioned but to kind well, couple the still disruptions a times on you is this going service then Yet, business you and of some ramp And to guidance fourth these expect as up? obviously, to think you how with mentioned Or quarter. here back continue sounds a little quickly the things Are it will to expecting fiscal start --

Shawn O'Connor

projects that be Yes, third of over the enough. and contribute into some to And revenue slotted second continue year. in completed weren't in fourth Fair were the quarter Yes. quarter. of the were these the anticipated to half projects

and we're to So impact revenue, those their projects does do, in looking in well. utilize delay our quarter as cancellation time. this not to And is do resources we what identify full to ability normally is that fourth slot or while do the at which and other drive in point

there And being be some some will so projects impact result as of of a canceled. those

X-month of the And this delay X-month a it a delay. the projects, indication terms the is delayed from in firm client or not some is is of yet

being And up contributing projects delayed terms cautious back fourth of the we're anticipating quick those quarter. real so starting into and in

put guidance in with changes can out as outlook that don't say we're this long in, over by in our occurred of as will that use the be 'XX just of fiscal leads backlog what's So proposals yet. services in run quarter quarter anything terms the Those in pipeline in is and a of we're consulting worked over that the our of yet activity term, to I open time, period look clients in terms a right. the I we've general. and our see the not in the out past longer we fourth position long disrupted of industry engaged

part service in a XX% of change but play organically. And to from XX% in timing in the of XX% its quarter to growing terms rebound as will difficult its growth our has time as our the rebound the here, projects, services contributed that extent to objective. to of the of perspective, number that fourth so No but that outlook quarter a business will terms not to of contribution expect and XX% quick

Now to the in business of has for its need in to that and as has really XX% business is in closer it heights diminished grown some side, on XX% positive XX% well. past A higher the growing is historically our software the and performed today to rebound XX% revenues. to that XX% range, contributing the up past the to stepped and percentage of has software XX%

been has model. strategy side revenue to of focus enjoy Our is terms very recurring the tool that and and in the the successful industry the supplier our being software profitability of And today. the of

Matthew Hewitt

some That's that's you be to perfect Obviously, where year, at maybe software? several talked of increases last you've pandemic about that's pandemic. great. And fantastic and It a your to some out versus a a that to contribution position much think implementing implement some to got outperformed a hold. that kind I given you I like might getting increases Lixoft of of those next year, on point, now it that from is row we're the expectation guess, modules look segue we one as of had of price acceptance broader the year? just How in expectations. software. This kind price Those in through put continue. Is a next the of is quarter. going new quarters sounds a now simulation And

Shawn O'Connor

board. In of across it the been the terms the sourcing of growth, has

it's to new a and/or suite, Monolix in module. the growth, new product the have portion full out module rates and the it's base that ADMET of that customers include and growth to has HTPK upgrading in the driven and of and either its I pointed Predictor technology to very Predictor their historical of existing full Predictor well growth, motivating and modules for the presentation, sales Predictor and all as part, ADMET their accelerated license GastroPlus of that platforms license performing ADMET GastroPlus, GastroPlus from platforms, are for primary the holder are good our and DDI acquire ADMET GastroPlus some earnings that module X past. platforms of or the Yes, Our a

bringing fold. for as opens up clients the as good upselling So well that into new clients existing technology, capabilities both a for which new clients motivator is new

we to clients the infrastructure earlier year development They year both business down a GastroPlus direction. that a in of up the SLP. software XXX,XXX time either them into of America their part of annual mentioned, and functionality the the of a the platform. throughout reported additional new capability And I new from acquired their indicative as brought very instance benefited a hit That's distributor that seat client ago. as As Monolix in we it's And They side that's Predictor into attracted revenue sales. side, of the seats with being beefing mark course well in exceeded terms numbers number then Monolix has capability. entirely their at our performed of of more new building terms ADMET the X the that company Chinese releases, benefited well. Monolix right modules their we've has more today, And terms this growth organic the expanded distribution to of by of distributor both in year. South have a and/or adding our in from eyeballs

is -- being is So the growth board today. contributed software across to quite is the and strong

On consideration the of have -- due this the did we have be as of platform forward. a a with a increase larger in pricing introduction And there well. price you later if release that its we side, may while we as will. the aggressive we as been we continue significant update to move We'll price new -- as Annually, environment, an is the that. price COVID list, a presents GPx would year not do would in also to numbers we might element

sits the which very investments the is price contributor. importantly, of of X But see our upon it's products labor So of be really now, business over that the fruits to on revenue most expanding top development increase growth is in perspective right XX going of terms price to last to my a months. that from always pleasing the

Operator

Brisebois François Oppenheimer. from comes next with Our question

François Brisebois

a Just here. quick one

granularity are Just color, You can cancellations. maybe any of down in how these mentioned the And many delays why would break more any to share cancellations? those anything give some you X, you more versus as can -- you on have happened? delays

Shawn O'Connor

each, the Well, anecdotal and breakout holds delays know has between story. Frank, that cancellations. it's I don't and an get

or the projects average side business bit Gave XXX,XXX size. of of PK/PD X feel think where to our are cancellations on project to of our little the most in -- average were I XXX,XXX the the service you were a X magnitude of them number. in a terms

a signed enough deal to discontinue program. them made within the One interestingly XX been had the that the days was just of was decision contract

by we some their So each effect surprised to quite them, and cause their of decision. in anecdotal to them leading own story has as them of were

François Brisebois

just And factor, remind what because you confidence give the that gives XX% us to surprising just on long the as guidance of of term to for when did And here. can you Understood. software XX% you've get it growth it How now you your guidance? that do comes and outbound Can to year, inbound Is interest? How adjusted guidance. interest, remind -- about? the your just you is guidance projects? for guys you for us how kind

Shawn O'Connor

I said side, On the think service software. you

say so... to I you meant think

François Brisebois

Sorry, guidance.

Shawn O'Connor

of were hey, the pipeline, clients were built have commonality, and Several got quarterly story other we our by in project together say, I be worked happen there, one always -- believe the project This don't those or each I projects out upon I has our was that to in as and on are own backlog. those of X all And guidance of long-term of impacted, that number X X. we've any difficult. a X and long-term driven we've come the backlog, revenue its Those our will is resources sequence never any in being them encountered commonality and/or see I there. projects from and that see clients, today they details don't basis, but completions.

East. project in activity it's any the We an of client had lost of a Israeli for any clients So not was way. Middle reflective in that in with terms disruption the

So number thought the in we lateness impacted in real their would come we out. and of together had came surprises quarter that we magnitude where a

what of new flow, being outlook along up all And we with in to cancellations the and the see cancellations results detections revenue, is as closures. I in coming but to our of had guidance our see project those that went out so not said, backlog. don't I And terms and backlog we've Backlog contract the despite built pipeline. going of

ability we've in so term a through little having a there, But and that next I time, hey, don't can beyond, see quarter. of change quarter cautious of marketplace, that perhaps, outlook near our terms some execute terms look the again, this in number beat let's hopefully, in revenue the and more and service here being we year changes cautious. in similar And bit this consistent to point We're be as for process. gone It's next of at And I this time expectation. sort any guidance into our our beyond pretty would that growth. encountered

François Brisebois

are Or terms a of more on little we Excellent. there a the ask, M&A valuations in in could the make And it's pullback then sense there what M&A same I across the whether in way color terms geographical that board, attractive? Any thinking strategy? potential of to have expansion? the has still made M&A,

Shawn O'Connor

Yes, I think right. you're

be types anticipate into been direction year. a the the that delay little valuations may overall past, is I find valuations falling family a are while Plus discussions But that that think in think bit or terms over a market valuation companies somewhat out there. go I little venture go as set that product there successfully and still it expectations with out we a softening little -- of potential there. there I the the I They before that when as service fully factor have that in person portfolio. that easily that the company, good less we discussion actually than both helps, or acquirers of the challenging as there's would for well would companies their sources in more maybe objective. Simulations that last some out equity, and it right challenging there year from that undertaken. high part flow of our the money, to into the made of make of individual companies of environment of an with down, a to that we they continue those environment other to that the say delay it's or capital target It it’s a software made certainly difficult. fit the there's discussions established a down we'll factor private in some have types high value positive same have for they target still small of realize watch private company's a But bring alternatives were work

Operator

next comes Dane Raymond question with from Our James. Leone

Dane Leone

we of Plus, by could historically growth North out flat us revenues Cognigen broken the granularity and by they’re assume difference so just can get chance in basically? the rates how Simulations Buffalo division, still Lancaster, you Carolina, you've in like Any terms the give

Shawn O'Connor

we've service managing I internally in over we're fosters appreciate of more And level. on sort think our business the Dane, like of fact, on side I that terms don't we've divisions a at software to been things Yes, our a business, the question. year, given amongst make last the consolidated guidance in our transitioning the that. ever as basis really ability resources of terms than it business and in service sharing progress and

fully guidance manage historically not a software level we've internally that's now is So basis. we handed out. as from it business no, of the Nor a tracked that service

Dane Leone

for current -- quarter the I reporting that see guidance guys in had quarter, asking year-on-year? last I it division, can for that by you wasn't anymore? asking revenues you the just but You was Are not filing. for your the

Shawn O'Connor

Yes.

as in at segment is I things closed to does Q the segment But year. that still that think whether It is continue break year. that reported the be soon. we report that when it XX-K down anticipate Will, one after the and to as this we that here we're go, Wednesday? fiscal of through to those will looking we Q

Will Frederick

go Yes, out Wednesday. it on will

Dane Leone

in on into terms service year-to-date the software us year-on-year can't the like for segments, segments -- in or of so revenue the give only Okay. QX, because example, revenue just growth -- actual guess, the Can do any you of, like granularity in generation. really the you I the like terms we maybe give XX, Slide

know what You saying? I'm

Shawn O'Connor

Yes, yes.

each revenue revenue. for X the across breakout platforms and we've each quarter's a We've quarter quarter reported delivered I a service on the that in quarter, -- X of major think the primary basis. that on software sources and year-to-date

up there. So follow of the information out and tracking are we'll Maybe back going there. in that those previous is to slide decks terms helping

Will Frederick

at year-to-date X X, Slide you're well. Yes, might for sort Slide mean, as Dane. I services, of and and QX helpful, those looking as add breakdowns software I would those between probably breakdowns be and

Dane Leone

Right.

clustered areas just development was in terms -- Okay. I the in canceled? of experience What Or of or that totally of were that projects maybe guess, of -- NASH certain areas terms this they the or other yes, random so in contracts some in in terms interest? -- softness terms like software were

Shawn O'Connor

Yes no, kind really random. not -- of Dane. -- didn’t a demonstrate They did They they were pattern.

and programs. other COVID it As Geographically, doesn't There were or program. was consistency either There an program segment. them. I area area domestic amongst international a said, therapeutic customer by no therapeutic was There program. by

the derived into So of having number no or a storm holds delays, out pattern seem be of to but have projects of. our the again, run the cancellations, we perfect to

Dane Leone

backlog and were of they actually for of one out not Or the quarter the the calculated? backlog ongoing So How actually Last came Okay. the prior part is -- in projects the something? were me. backlog? in these -- these or

Shawn O'Connor

within goes in I'd the contract quarter. beginning that of is a date XX days. programs that closed the believe first signing other was almost Once the with a X backlog that the of I have been the that was quick I the backlog. say it start canceled mentioned would with immediate And got deal the into X exception contract at

Dane Leone

one that? realization than long longer your And or how is about Okay. quarter backlog

Shawn O'Connor

million. in total in typically terms that, to of about X is months of say timing, it months extends that is its that I although XX And X up planned in there Backlog $XX would component to backlog. some for

Operator

questions like at are There Shawn you. no O'Connor floor for to over I would Thank to Mr. turn the comments. any back further closing time. this

Shawn O'Connor

and to next of our I very continued quarter, Well, And support. certainly appreciate everyone's attention. speaking Very I soon good. forward your everyone. at end Take appreciate the look care, again

Operator

This concludes today's teleconference.

this Thank time. for disconnect you may a your and have evening. You wonderful participation, lines at your

Simulations Plus (SLP) 12 Jul 212021 Q3 Earnings call transcript