SLP - Earnings call transcript Q1 2025

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Operator

Greetings, and welcome to the Simulations Plus First Quarter Fiscal 2025 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, Lisa Fortuna, from Financial Profiles. Ms.

Fortuna, you may now begin.

Lisa Fortuna

Plus Fiscal Simulations Conference Financial the Call. to First XXXX Quarter Results Welcome are Executive of O'Connor, Frederick, me Shawn With today Chief Officer Chief Chief and Officer; Operating Plus. Officer Simulations Financial Will and presentation, our that supplement we quarterly as -- Please which prepared note serve remarks. updated will today's updated that our earnings to a

presentation the access Relations can our Investor website at You on www.simulations-plus.com.

call After management's commentary, we for will questions. open the

anticipates, information that from like reminder, future results quarterly could statements. the Securities the on differ and discussed is with the to and filed involve significantly the factors believe, and company's company's a contained and and include call, in these risk statements today Exchange estimates As information reports annual and forward-looking Further best Commission. Words risks uncertainties. expect this as refer our may of actual

most management GAAP or accompanying In financial most Reconciliations to of the materials remarks to website. in Please are non-GAAP information. to measures for the directly on available earnings measures. refer reconciliation the responses the mention non-GAAP tables measures the release financial available recent these the comparable company's additional some may questions, in

With I'll go ahead. turn O'Connor. over the Shawn that, to Please call

Shawn O'Connor

on of Good business unit, and was our organic million medical the including revenue. XX% our We're $X.XX. strong and Learning year, happy and $X.XX you for an EPS XXXX. contribution and basis, and diluted was Total conference adjusted thank in was start year-over-year joining from ALI our or $X.X or Thank new Diluted X% Adjusted EMC Insights or off communications XX% EBITDA position. EPS Lisa. first you, and XXXX afternoon fiscal a quarter everyone, call. to increased revenue Adaptive

key particular environment, financial to be for area to the the which continues Turning of macro community. focus a

X compared clinical years. in activity last Key better the levels are of our We funding marginally are such cost-constrained pharma funding, and to challenging measures number to all sector. budgets indicate trials, as face environment and the a continuing that

active their Additionally, there and activity situations. on depending clients levels continues a to from our range of amongst specific to be clients quite prospective stagnant

closed turning major the were the our and clearly were conferences, year We to expand in that annual capabilities in budgeting opportunity in several client that attention calendar positive planning simulation As XXXX. meaningful plans client out, presented conversations have deeply modeling to clients outlined And engagement new immersed and to participated activities clients industry organizations. This especially for our are proposals with robust. process. and within their budget our their resulted

we're taking While until this expenditures increased promising, still level XXXX. stance and timing a the spending for is plans cautious are are of activity inked those interest and finalized calendar of

are to execute the committed in environment has approach -- success our a -- over maintaining disciplined that years. We the tough X past driven

spending. team, in capitalize limited environment time, At client the to increases who any ongoing we're for same results proud and these on pharma of our clients. constrained despite and funding biotech our the delivered ready I'm cost

Turning to Software our segment.

in basis revenue across an 'XX, performance the first Solutions. on our of XX% quarter grew with organic XX% Software Software strong

growth with analysis non-compartmental revenue increasing a committing and Pharmacology fully pharma for CPP MonolixSuite large fast Software our and Analytics, client business compartmental bioequivalent and PK unit XX% or Our by studies. Clinical analysis, user-friendly led application Pharmacometrics, including to

and XX had upsell. we the During quarter, added customers new X customer

Arthritis QSP, added and we Our licenses by XX% Crohn's Quantitative model or and grew disease. Systems revenue Pharmacology Software psoriatic for

the lumpy per based of quarterly pool QSP ticket for As smaller upon in high license software end be can a results reminder, users. price a

grew driven revenue Chem or revenues Cheminformatics ADMET business XX%, by by software Predictor. from higher unit, Our

there X the Additionally, new were and customers quarter. upsell during X

X% the for or physiologically-based PBPK pharmacometrics increased Our Software revenue quarter.

with existing booked customers new X X added and upsells customers. GastroPlus

new business Overall, our ALI business million. expectations. Software business software in these unit with was revenue and million in Software our units was MC X line X.X unit revenue in $X.X revenue our was in

Turning to Services Software our -- segment. our

on organic in X% revenue declined yet XX% by of grew the by quarter basis. first 'XX, an Services

our business Services of QSP decreased revenue This second was into ramp-up our quarter. revenue revenue year that Services Communications by temporarily line million, our quarter, Services fiscal revenue XX%. impacted in postponed X%. with client-driven CPP data PBPK Medical Services declined projects was certain $X.X expectations. delays X%, decreased the

to the from sequentially. quarter very a positive year-end bookings was a our year 'XX. were With quarter were and with successfully cost-driven decline This ended backlog the clients client's achieved units. was which $XX.X Services CPP year-over-year depleted, the XX% by of that, in and in The over activity. pullback On million note, was existing attention We Services course $XX.X year backlog a turn our during strong Will. I'll million calendar to quarter, business MC during calendar budgets call in 'XX during in calendar 'XX the our turning year especially reflected up

William Frederick

million Thank contribution first you, million ALI XX% business including $XX.X Sean. a formed performance. MC the newly recap To $X.X our increased units. Total from and to quarter revenue solid

revenue and increased total XX%, XX% Software of revenue revenue XX% XX%, increased total of revenue. representing representing Services

Software from products was Predictor was XX%. for were quarter. our and the the ADMET GastroPlus revenue XX% Training ALI Other to XX%, products Turning MonolixSuite platform was contribution was XX%, XX%

was in was revenue platform ALI XX-month ADMET X%. Pro-ficiency were the XX%, GastroPlus and XX and For Training of units Software includes the MC products June Suite Predictor ALI XX%. trailing XXXX. months, the was X% acquisition revenue XX%. since business trailing other only for The MonolixSuite was

was trends. was XX%, our during XX-month revenue Services MC and and year. of customer for per On on Shifting quarter, the quarter was $XX.X fees XX-month accounts, revenue the CPP renewal June. the during from XX%, to quarterly customer a was in was the basis, XX%. unit trends, was was with increased on unit on trailing on Software Services with XX%. Software a both of business XX-month based XX% worked on PBPK business based rate XX% XX-month for Pro-ficiency for prior since revenue basis, XX% was and and basis. $XX,XXX trailing accounts, During by XX% prior based contribution based software only line Average to to On a fees XX%. PBPK includes CPP XX% customer both the timing projects to QSP revenue Year-end was year the QSP quarter. $XX,XXX. line acquisition Average our were quarter XX%, fiscal MC Total backlog renewal the million in trailing prior our XX% renewals recognizing customer MC in per increased also increased Services $XX.X in million The revenue rate trailing on XXX. the was quarter. the period

the the of unit. growth was in CPP driver business quarter-over-quarter backlog largest The

is was the Total margin offset growth and comparative amortization gross gross to amortization and of in and for prior from cost remain quarter the by in margin technology units recognized quarter. gross year-over-year XX%. Software XX%, with Services units the Software backlog acquisition. of with of was XX%. during the flat, While business of business XX% CPP relatively with backlog QSP due increase business quarter the Other margin increase Software margin decrease decline new was On for The a margin year revenue gross an in unit. in XX%, in MC for the primarily bookings gross with the costs, the margin and total develop The of the margin XX% Services primarily software basis, gross development an capitalized Pro-ficiency gross revenue of

decrease to relatively on margin in The an decrease gross the Services organic was with in of cost Services primarily revenue. due basis revenue fixed

to reclassification expense $X.X of cost the comparative connection reflects million in from period G&A prior unit a For reorganization. basis of prior with the reporting, business the revenues year

were for statement G&A to XX% expense expense last income of last XX% marketing total XX% compared compared was on quarter. X% of XX% year. revenue operating consolidated year. revenue to of the to our XX% was was expense a Sales comparative year. to and year, to compared revenue Turning revenue R&D last of last and XX% XX% basis compared expenses

Income tax XX% year. revenue of was the revenue was of last million of year, quarter adjusted or million XX% XX% and or the $X.X to our EPS $X.XX revenue Adjusted tax expense of rate $X.XX compared year. $X.X for XX% $X.X Net $X.XX was compared to income and $X.X quarter million diluted $X.XX was last million compared year. quarter $X.X effective year last X% $X.X compared or last and million to compared diluted EPS to to to XX% last million EBITDA for or was compared revenue year, the was for last

EPS guidance ranges. We believe website. is on and earnings GAAP of in both to non-GAAP to our the The our and EBITDA XXXX relevant track fiscal reconciliation our on financial adjusted margin achieve metrics metrics release adjusted diluted our are

sheet. balance Turning to our

first to compared trends, the year We quarter the to Consistent execute quarter due debt with cash quarter. with turn primarily and million bonus flow We investments. the well our quarter, prior strategy. the Shawn. I'll to and balance annual year and now call timing prior back in investments decreased growth ended cash capitalized remain the payments first fourth of cash strong the to in free $XX.X with no

Shawn O'Connor

Will. you, Thank

coming of quarter Services continues our our quarters. drive integration in well strength in the to the robust our encouraged across reflected results sequential first solutions. units expectations. strong is progressing and with Also, in We're line notable performance Our tracking business and of Software MC our improvement ALI all backlog, by should be which

still expectations, to revenue $XX in first be quarter balance million the Year-over-year reaffirming between of $XX and are XX% to in XX%. XXXX $XX our Total and to $XX our we range year million guidance With to MC Moving with is expected ALI of million contribute on results XXXX previously and we to between XXXX. be outlook as million provided. line expected for as the growth expect will is our revenue to follows: year our fiscal fiscal

EBITDA between of mix and adjusted $X.XX earnings and Software share $X.XX. between XX%. and XX% between XX%, per Adjusted diluted XX% to margin

year-over-year quarter rate XX% expect approximately revenue fiscal XX% between XX%. range to with our our second We be also guidance a total year growth of and fiscal for of

our of split balance the the to in revenues quarters. fourth full and expect We be third year evenly

of guidance our a future the As include any does not reminder, acquisitions. impact

our to and EBITDA completing adjusted and XX%, include priorities corresponding of near-term cross-selling driving integration, expanding profitability historical target Our margin XX% successfully the levels. acquisition opportunities towards

over well positioned to to year the I'll for Thank questions. our disciplined you this call your strategy today. and that, long-term And to value the to your our shareholders. turn deliver on now achieve operator goals focused are growth We remain time with for executing

Operator

[Operator Instructions] BTIG. from from question First Larsen is David

David Larsen

Software talk XX% that year-over-year. about be very would you was this better, think even -- out XX% maybe helpful. quarter positive Up The minus like number software last you said rebound was -- I was think, the growth. the revenue What's Why to I good. color I was me stuck organic the think X%. That's Can there growth huge growth. organic revenue Any just quarter, sequentially? revenue it

Shawn O'Connor

Yes, footprint side the we we significant quarter step see had Software David. quarter expanding quarter, significant across platforms. use The with our Analytics. of forward, obviously, both It uptake, the to platform, in note, CPP with there the any of a all large PK great continue client. a context on during to really committed to Sure, came And platform, our in the the component MonolixSuite, highlights expanding of the XXX% healthy upsell which the in new license of The of account existing holders the and during a where there. sourced NCA logos. pharma is Monolix

the will in QSP QSP broadly license front, of significant their specific partnership acceptance -- had as as in models more other clients, activity in those and partner and therapeutic significant for those the and into on with value well. well them bodes therapeutic some two therapeutic both QSP as well we the they in areas areas the expand commitment But anticipate Simulations license very of progress that general with with on -- us to that industry. Plus two their terms side in Also the where

Asian focus identified So X across terms quarter. the delivered results our strong were certainly, the year, very well areas the and market. of those in as board a as But towards this we of end

today. I the to If filed look that in those numbers, are XX-Q which you think was

which XX% good to a that results essentially geography the good well. in see Asian is and revenue, Software as pretty year in growth market, You'll much that the start

be year, a side. quarter. this can are So off the pleased result upfront very of this what quarter, in up as renewals on our Software because recognition renewal first a the kicked quite the software revenue In the start of strong given year we've of coming for seasonal

David Larsen

Okay. to seems have And to like of you me engagements, be of pricing? lumpy. digits? more the maybe the we just mean like any Software overall consulting of can sort metric health business. I business? color health Are Services, they then core single And the the Software It is mid- on the high overall sort of isn't leading of thinking a indicator for

on thoughts in any Just comments there. pricing those

Shawn O'Connor

of and of certainly, Sure. lean the on we has because our of business. recurring always we're how benefits profitability our No, Services clients. to in the strategy side are its consistency Yes. support in been a model Software terms in our side But revenue, Both focused obvious Software terms the of on important lean margin. -- and Software terms on of our

be that So is indicator certainly history, and our mid-single business growth Software in the we the of increase of year the the is ballpark. this fall digits a our leading in yes, context you're terms of is the to health this in same in our price segment typically year, of of where going business

David Larsen

me was light. for back software looked growth. a year-over-year? X% year-over-year that Is before hop GastroPlus revenue quick one queue. one Just the the I little What in It last

Shawn O'Connor

Yes, It's is in after until clients But a bigger pipeline or newer Asia bit terms rounding little waiting of it's new we're Yes, it budgets about is up price XXXX. down And uptake upsells predominantly in there, there, which Decent some results in I outlook maybe rounding activity in relatively our terms I some of GastroPlus. year good those X%, think, our view think I X%. -- of our change point. out -- we of low in no was logos. in new there. had but think healthy of GastroPlus, terms are the that

David Larsen

Okay. And Asia, China? one. Asia one how of is When last say you much quick

Shawn O'Connor

China is relatively our the the in up is probably market a coming portion fourth. marketplace. India, China smaller probably in Japanese and there. largest contributor Asian then Korea

David Larsen

China Because great. pressure. has Okay, been under

Operator

is question Francois Next Oppenheimer & from Brisebois from Company.

FranÃ§ois Brisebois

noise. background the for Sorry

the reported. hear I And to the would had you I the call from a that quarter think surprise? be sorry missed more pharma was more bit, got I Just this, a a that about commitment you and just commitment that just disconnected major helpful. on but if for I impact there wanted its Or expected? little Was color a

Shawn O'Connor

wish you're large but PK is boy, hard commitment surprises, Sure, -- in terms a in sort them over team, the them working commitment. of analytics of of They business terms Frank. healthy came license application, commitment. development full leading holder to, this I with of these for a presume. in the time work of some getting And were no barrier terms pharma to I referring the The things what in

through working on, came would and quarter. we Something we've anticipating been get there that this

FranÃ§ois Brisebois

of track? everything on Okay. Great. the hit And something then lump be that the affects this that on -- year? kind quarter of the Or then the second the in to we Services side, that back and is just rest a expected else sum is should on postponing, the temporary

Shawn O'Connor

depleted year of year of budgets our our there, their I 'XX of what think first year. quarter the clients, budget what quarter, full out we through constraints on budgets we're course the last seeing calendar spending closed the effectively, is 'XX, but the is, as the for

in activity XXXX. was planning realizable lot quite the backlog is is now from of discussions clients, of of of just and of activity within in bookings metric XX% -- it -- our is it some project year. Our a And terms which Saw for ongoing about some booked was is a robust. activity

of the the year, match And of estimates saw Some and out the the a that second quarters. bit been fourth that of year. to trying to bookings business of into timing that quarter, those our delays to half first time nothing quarter, change perfectly we've we -- delays runs Service outlook side first third quarter last fourth that good goes that's will back projects second to made spreads seeing be into on pushed we the similar had -- the each in several that mix quarter. Service is first the No in some of that here, of calendar factoring But quarter the the The and upon team. that for off in schedule. quarter this a terms in in and challenging based our Service the the visibility in the

Operator

William is from Max Smock Next question from Blair.

Christine Rains

on Rains Max for Christine It's Smock.

more XXXX you they Just conversations your setting but pharma comments, into deals also noted large digging through of discussed companies, as went a budgets, little their finalized. these all process some previous with bit been promising their that haven't

you this can hoping of Just business us idea give of an has been how contracted? much incremental

of compared you XXXX reflects initial you Really get any large then time if this out kind clients at potential large a bottom we've shoe and you if that booking year, pharma your to if pharma trying idea -- what year? And just in demand simulation this line closed a bottom, your for And in for think your think how to we're a have a their now we're is at the at specific sense drop on rebound? And budgets there's if XXXX? how a to expectations. modeling or other calendar of for of

Shawn O'Connor

I with across of timing And and of back of lot out crystal face had a from Let one. I'll in I pull It board to quarter very good me our walked sort A ball we my conversations in I'd conferences levels with away all time the all which bookings can quarter this see our at specifics our of with thing. the clients. our on more discussions industry. couple A respond how our in significant a those and was terms the and clients. come thing that well say of

a certainly their appetite modeling our of use to programs. expand their But simulation commitment clients it's in strong and and on

and efficiency ROI of improve trying past this year their a provide programs. can learning lesson better that X, solutions of set crunch delivery effective shareholders. a or their been to are to their this budget has and ROI we And during think on I

And -- away do certainly and to so performance. few last from value with what of can I improving and committed the see with our clients clients months and the strength walked simulation very are and discussions modeling their

in partnerships. And of good discussion collaborative terms

our partnering has in form an of we been good can Simulations work even extensive Something together. in of number alliance these very with and clients. that terms of terms how closer always quite were Plus a at discussions And

discussions the the of of and were client budget the X some context those So discussion have approved we strong the Inevitably, the And is the to their Much tools, down need going put our commitment budgets what commitments outlook, the already. good. department 'XX come project clients the what's into usage. and it months. getting last were for -- first was getting in into it what's more in what's expanding our platform that they discussions work of calendar that in year out to over their of budget modeling hurdle.

spread, That next all of out the rollout. hurdle spending roll they're is then don't it on through January It's their X. course the year. They

and going What's how greater this week or than January. do terms good of the budgets last And the we of on in Are so as year? out? calls getting mid-January just are relationship and of People it's roll their Xst we're conversations getting spending back, uptick? or

be see we've it the continue forward. cautious going year, for as overall, industry. plays to good confident a that to been operating O outlook it level certainly let's that rates it to or step spend somewhat environment in I'm lines, a our that that the have at in planning boy, and live but levels ready that how optimistic such. indicates respond be than going to bright execute take to But discussions, was up pickup promise at better it industry will with their discussions but to higher them out. some last don't we're and and some process are occurs here, visibility there We're going we are

Christine Rains

top sales cadence Pro-ficiency how And improved aligned ramp plays or there. for target? is a the contribution from Appreciate utilization Services margin with million you I'm needed in the just of overall also expectations give total $XX and that detail in versus from $XX if in and has quarter to kind on hoping the there your Software Services the Pro-ficiency margins both and contribution the discuss hit million the similarly, year? the into if to line

Shawn O'Connor

I'll of expectations to I'll from in general. business in X with right Will general. medical numbers. proficiency talk up learning the on some units a adaptive those and respond heads communications, of in insights both give Contribution line

will, perspective million in the both in As $XX activity in their of well Simulations client $XX -- integration guided their conversations very terms entities, SOP and and of the of team into development terms and of accounts the that the of Plus clients of terms level pipeline organization, cross in larger continuation as products million introduction is marketplace in existing context the development part revenue business They're settling well as efforts of in base. the from wealth their introductions the the their we've internal of into our contribution. X as across as our if introduction business their the to legacy of active, terms you to an

Will, do revenue terms In of the and others, want numbers to comment? you specific

William Frederick

Sure. would that the put to of quarter. detail. X for $X.X you some about we And the out $X.X this for definitely point Services. was units And million the it But Software, deck for business million with earnings I

Christine Rains

quick just last, Great. one me. And for one

then delays more and give time behind a some can Just of hoping color and on that resolution line? data the kind you what's

Shawn O'Connor

ever don't fully think it I resolved.

of this fail going of that of the likelihood is drug banner higher decisions of the development resource the in a It's reality is fast our that I success today. to to of reallocate clients. and higher on think a result allocation have of terms headline part programs resources frequency

we encounter something a that it's So seen increase. quarterly We've past. on frequency have in basis, that the

in end of an ebb reach and It's the it's which activity. And always date right the to ultimate business -- but now. don't quarter-by-quarter, I flow model of going that we think reality

pipeline. the typical take and little as quarter than first We bit bookings had in very we more a activity the robust Service our quarter, on backlog a look side. So our at

there 'XX. projects shifting those in are teed certainly planned backlog service be the them our fuel year road, for the to good some success but starts in the fiscal up. timing eventually, of mostly with down so year off will a And And expectations

Operator

from KeyBanc question Next Capital Scott is Markets. Schoenhaus from

Scott Schoenhaus

of in that into Most is ramp, the XQ? back get back that back just specifically, that's it there on XX having causing commentary? a the XQ -- should want you based to And I year half this a half revenue half the this was the it XQ, anything previous follow-up in you're asked, flow of about on some get always I Or pocket last have ramp sense, XQ commentary? wanted questions -- estimate to a was seeing flowing in lost days question industry? has based in Services this that but asked just my been to Shawn, changed air clarity a all around that into should as is is there was back an what thought that from

Shawn O'Connor

Yes, fair question, Scott.

by seasonality quarter. Our

Service renewals of to that Software a seen little quarter some We've but quarter renewal historically, -- there sort and fourth bit quarter down. of the on in terms a third the place being of peaks and impact take of bigger sequence quarter, in step side. a seasonality is second

and and in year. to there comment act project recognizing hey, of Our not that, driven half all sort to handed -- going revenue be close budgeting this out just That's the was lot of the a first of discussions. activity and

go in of to to if leads pipeline performance get ultimately And the revenue been project frame, XX%. I and then it's here, it's level the Service pick that being half to But XX% activity we're I -- up, of through budgets our year. revenue -- when second back typical the that revenue sales up, mean push the think in probably you we if we've time talking the pushes out say going of past, guided quarter. activity about some picks that's the to

we're not half target. terms on was off consensus sure people's quarter make about of a We second revenue year. in expectation just big the push to of the wanted to really talking for So back

Operator

Matt Hewitt is Craig-Hallum. Next from question from

Matthew Hewitt

guys. Year, New Happy afternoon. Good

Shawn O'Connor

Matt? doing are you How .

Matthew Hewitt

good. Pretty

maybe So up. first

has mid-teens. the heard So out sense quarter a I kind Obviously, a of revenue below organic last market growth was do shook think in not I couple so have maybe I last year? year? it where reported, total you challenging, been But last sense say have you where was of you years was realize everybody X%. do but for and you Historically, that have the that. noted the market the

Shawn O'Connor

of We've there. to the reports come visibility out to wait the see and got other some get

many think group simulation our down Whittle modeling comparable peer and I I components. of that the reporting -- to saw

While level up our XX% growth was at -- XX% organically. significant,

I think area. of peers the were in single-digit most our

something think X%, Our But in growth the you're our quarter and I right, first within as is anticipated. organic it guidance that. X%, like essentially, expectations our

Matthew Hewitt

modeling starting some your you because Got and open budget was one of seeing acquisition? the versus in to that facing the kind and mean I earlier opportunity benefit? some the in customer it of then the to just of made that work. comments you it. budgets you QX, today some Are market headwinds you but new acquire of up in stage you you And expanded were the indicate when basically the simulation some within move that opportunities Pro-ficiency of that the see got to opportunity still partners into the you've of that are commercial

Shawn O'Connor

the The acquisition see we the terms most in probably and opened and synergy, platform, that Biosimulation two of us new One areas. the between you operations budget is solutions and into modeling that simulation into have up clinical ops. adjacent potential the -- budget, for most clinical opportunities is if sold training important will, budget -- to

that commercial both budget second that budgets this in The affairs, it regard. pre-approval opened us up and into medical

of in ultimately opportunity today those clinical unit we're expansion quarter. to internally the communications operation the think and I medical going is side. to first and selling medical robust, through affairs that out operations of And Pro-ficiency think the good on commercial to sequence, business commercial Very see a of I bookings that play The roll budgets that leading had budget.

little And dramatic visibility more bit played bit the process budgeting front It's business little that coming a gives their a and the as for exclusively. we're more a to year. out learning

so And good the medical a for regard good was latter quarter into expectations year our here. first in fiscal of communications confirmation quarter part of that bookings the the

Matthew Hewitt

in And release, I there QX Obviously, Service if of I'd it last to budgetary getting were the prevented of and don't -- you're here, the even much that maybe kind Is I the two? those one earlier going parse some versus have the the between of know data on it. budgets was there notes but were constraints. it year. some remarks in there data then was push or of one, delays backlog you've mentioned that Got them delays? kind this thought some at into data, going least And the press handy, How later and contracts the out to call prepared of delta that kind way ask.

Shawn O'Connor

And Difficult my budget Matt. is operating it constraint little clients. of something encountered the side. just -- level. the when -- spent calendar in or a every quarter month project quantify that delays That difficult last in that end on end all and the activity to quarter our characterize side regard of also the gets money it's as I I time that of year, and month, beginning sometimes beginning there he to budgets bit the And for becomes the constraint that quarter. i've of our of the is more the for to his year, of we're you, would the end before, regard first like the said commented on son the the budget With frame the the year the

for ongoing first and on that more the that what doesn't of an place it's Some quarter at the the will adept our it of it quarters delays an us. go no and to delays populated But phenomena delays That's bit from or become doesn't project quarter. going be a in basis are or environment away, because any here project in others. expectations operating we data have there in are -- changes quarter beginning that to which little -- took with

rearview sort We're going to I a big think that mirror. be may have systems. always of in that

Operator

from from Jeff Stephens. is The next question Garro

Jeffrey Garro

contribution the range in at there that and and that the on being you've ALI a of think like that you annualizing MC low fiscal you whole outcomes ask the math set? in doing to will contributions saw range with But you've quarter I'd the end wanted to further I outlined. line bit first the your your little of about here put expectations

a outside And broader that on the rest seasonality I hoping just for next the contribution the you of then operation. that with steps maybe of see the business little the comment is the you and revenue year for was integration of business catalyst could bit the might further piece of

Shawn O'Connor

for The the Sure, side, similar to probably trials. Simulation side, Biosimulation Jeff. project clinical patterned support ALI Clinical

going when So take are those clinical trials to place.

quarter. robust ours. the quarter, the And quarter sort that not first side peaked of X calendar -- quarter second They'll year-end And the our fourth -- for quarters through business seasonality the mirrors kind first of our calendar of year, the that. of robust so be the most quarter, in for our the

most of not to well as I take sort before, commented frame. time going November, as in their efforts Medical program of Communications, place December are

So they're what towards a fiscal our but third year bit similar, would the more even and fourth maybe skewed be little quarter. probably

there, steps company. within regimen integration of terms Next in SOP greater the into settle the operating

that our beginning the to the networking with business major putting team conversations leads to and for of steps that the got achieve fuel increase spider now, web verge. on pipeline of undertaken and we've a clients lead internal that proficiency future of trying spider solutions comprehensive to of relationships those the and the web We've basis the of integration within development a to and out feelers combined number business on integrated the regard -- go-to-market most all

really driven. market internal to driven steps opposed next as more are So

Jeffrey Garro

to levels, the then wanted client. remarks, And macro the I helps. your challenges range of around ask in one variance by wide cost here constraints that cited said the environment. you wide a funding then press you That release and Understood. and in activity

work other or So there's area any or vector there? I want if therapeutic size pattern stage to clinical development any ask or by of customer

Shawn O'Connor

There be look are you trends, you struggling better will, their think Novo there. the still oncology obvious a out of louder on that if -- company a still kind of bit Nordisk can may no little being of is -- over type but bit financial little of, in probably aggressive it's some reporting therapeutic more at in I perspective, companies is -- those are basic it's map. answer all singing terms out the there, scenario area from position financial that versus terms a own some

attention, And in a programs lot level -- trial lot trickle activity it's still in that follow. therapeutic early of of up, in so activity still down the clinical that of terms start obesity area to activity but trial up. is a a Obesity clinical is is

sporadic. but So not to what's it's but customer predict in there's walk into be tone there. to of a pretty meeting. this some Wondering one perfect. yes, ability with going the trends some I

Operator

session. the back This I'd any question-and-answer for to floor closing management to [indiscernible]. turn concludes like the

Shawn O'Connor

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Operator

concludes today's teleconference. This

this your you at time. disconnect for You Thank lines your participation. may again

Simulations Plus (SLP) 7 Jan 252025 Q1 Earnings call transcript