CERT - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by. Welcome to the Certara Second Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator instructions] I would now like to hand the conference over to your speaker today, David Deuchler, Please go ahead.

David Deuchler

everyone. afternoon, Good for all today's call. conference Thank participating you in

the we Feehery, Chief A Chief On results Officer. the on Officer; copy William company's Certara, from for financial release released Schemick, call of Executive the XX, is have and website. today, Certara ended press quarter June Earlier available XXXX. Financial the Andrew

of which from of include predictions expressed the Before in statements during make this statements of made we management forward-looking XXXX. with the provisions call that statements or will are safe begin, factors. due laws, in results Act forward-looking I'd Securities or to events, materially of you expectations like performance or to results federal those the to pursuant Any the meaning future Actual call contained forward-looking implied are Litigation to that securities remind that harbor this Reform variety statements of a statements. relate differ may Private

adjusted is should of and should measures. Reconciliations Also the We accurate Securities obligation, guarantee of time-sensitive in Factors of that, to conference will Commission description or or comparable measures the adjusted Form most factors information company's be you website. with information, contains available section filed and call The GAAP required live and financial Risk turn these these And mention list or with over adjusted to not financial March August non-GAAP or are because XX, income, as other XX-K and X, on the may of law, some statements, the consider or available with certain a the estimates that update be EPS responses uncertainties the are any Certara's I non-GAAP you directly forward-looking remarks of financial only otherwise. and the intention today, new please future except and aware as in considered is to performance. on and earnings risks statements broadcast by events a projections future to only urge For our refer revise William. release, business, net to disclaims XXXX. whether which associated Exchange questions, call EBITDA, measures any XXXX. Certara of to the

William Feehery

our for XX, clinical largest data known for these industry-leading Thank during believe by was regulatory preclinical a and Standards XXXX Medical quarter-to-quarter you, standards David. U.S. continued for to exist of for CDISC electronic stock. financial to and is Revenue standards I trailing of set CDISC data. we for we cash the for which these Total strong platform, company increased goal XXXX Thank more Clinical reduced year. data in and many and Bookings addition continue Pinnacle's clinical time to Interchange bookings pleased quarter regulatory height has and Data XXXX, for strategic business of XXXX XX-month use to In Consortium, bookings profitability submissions. SaaS-based Certara standards Japan's in a data. plans. in standards is successfully to company grew the the prepared acquisition quarter is on the the that agencies also earnings both bookings, and The a will up the same submissions company validate XX also cases submissions with spending last the to X% adoption global in up and remarks by Overall, process. the pleased managing and leader FDA quality. the review continue XX% software data Andrew today, in the execute the with how required incoming Because preferred we biosimulation the as delivering software services second to year-over-year so year-over-year. growth the and Their our up Adjusted all the not second activity. you our are history, in due acquisition with year-over-year. way Good the year. results. to EBITDA to levels. and earlier looking bookings fluctuations very in in In in start did with quarter in as with with development $XXX ideal another afternoon, is in they trailing will we Devices we XX-month Pinnacle we ahead and during growth achieved Certara's at to revenue. joining is an the of SG&A FDA business are expand position pharmaceutical software standardization as sense year-to-date the in the software everyone. is record held Certara are of evaluated evaluate then bookings questions. performed services, X% were accurate earlier are for of to there impacted XXXX. quarter pandemic, which and XX% efficiently submissions global on the of used is the solutions PMDA This of of quarter keeping X% biosimulation COVID Pharmaceuticals our a China. Agencies, performance, our received thrilled call. make our Compliance Pinnacle data EBITDA costs and higher I'm standards developed public fit growth Adjusted can announce in with second in million used of our data acquisition quarter take by quarter, compared grow grew with CDISC, of our the grow the end-to-end second we increasing expectations as second-quarter financial compliance compared privately

data costly delays. perfectly biosimulation complements submissions consistent our software and sets regulatory proprietary and minimize regulatory Global XX's First, validation to software. Pinnacle compliant require

Additionally, and and biosimulation as data research is other combined and more from methods. data increasingly advances with and collected and analyzed more scientific then diverse sources standardization organized

adhering to the complex also start-ups, of that can source CDISC innovation, companies developers is development more while resources. be able clients drug compliance smaller and XX's gathering, least, not our built of be sciences Pinnacle standardization deal significant by and and features. Second, engaged broad and has data. expand to complex consultancy Certara's software, powered already our data consume Their but development we as especially service will the robust life therapies XX to companies about organizations drug software collaborating analyzing and data and software culture expand teams team to achieved together, fit passionate certainly data a that milestones we with and user feedback X,XXX the creates than standards offerings user-friendly scientists community to technology. base and and integrating, daunting community throughout by and biopharma XX CDISC on tools experts of efficiencies and integrate remove Working last, and a top-notch is cycle regulatory accelerate among biostatisticians are are incredible has data open will help And both with innovation the remarkable, Pinnacle as life-saving with driving helps we Pinnacle development fuels that promote barriers features new patients. provide This entry and used software biopharmaceutical to using time standards. preparing who

the R&D PMDA. has familiar to customers have close, XX's significant be in grown data, many upgrade with as their in as XXX When adjusted become the valuable companies excess annual that customer get number $XXX,XXX the standards XX EBITDA. XX of deliver, of from enterprise to in well revenue customers, regulatory tools the than top FDA XXXX benefits XX find biopharmaceutical Pinnacle XX more and immediately value As the enterprise companies the accretive Pinnacle to XXXX. XX compliance growth ensure so of will XX including by minimize risk with that the most we they to Certara's of from delays. it rapidly and version spend to customers Pinnacle the They and the value

fourth in to close acquisition the expect early We quarter.

in which Pinnacle Andrew believe Pinnacle discussed details and discuss the will financial what in do. past, capabilities technology, the the and breadth a few depth we and right continually XX the is to increase of implications XX will the of we platform, end-to-end we've As seek people our minutes.

back Certara's business. Turning to overall

in and and innovation combination therapies. global to immunogenicity Our challenge second in Researchers platforms discovery in as key challenges address biologics, is understand which cancer Immunogenicity R&D and announced launch of continued the record of the the of almost comprise simulator a simulators. our immuno-oncology use our XX% the immunogenicity pipeline. of biologics track quarter now for biopharmaceutical software our proven we versions of help and data, These new immunogenicity, predict development developing our immunogenicity, virtual populations available, to outcomes. COVID therapeutic unwanted examples uses a The it presented development. vaccine FDA our there's clinical simulator data, of case which any if including June response. patient vitro is the of in to workshop customers data simulator thought into leaders in action, helped at At advance extrapolate ability an Certara immune trigger the immunogenicity on how drug to and

This requires biosimulation before complex the influence accurately COVID immuno-oncology, therapy in eight United complexity factors to software suboptimal number and PITCH months Regarding weeks confirmed prediction back study, vaccines. of vaccine further combinations the doses clinical to potentially University our power combinations. between in predicted our led first predicting of vaccine best was integrate six critical which of simulator trials. have proud conducted including that dosing optimal to selection the the validates simulator heading COVID-XX that efficacy. Challenges the this February. the second at was of ago around quantitative sheer and Kingdom, Oxford regimens into we're Certara's vaccines, The work address framework which released In possible predictive robust a questions, dynamic that timing

the combinations test Our of and therapy cancer types immuno-oncology simulator has Version X.X blood The and cancers. immuno-oncology of combinations expands virtual the and the therapies chemotherapy and radiotherapy. and targets regimen predicted outcomes the patients to many types, different vastly solid including of various uses simulator number dosing. drugs test with of use determine cell simulator tumors optimal therapeutic also immuno-oncology correctly of in to

services. to Turning

technology-enabled driven and of our services Our work expansion biotechnology well goal, by stated customers. business with of partnerships grow existing in the to new of long-term our excess the growth with continues customers

proprietary our by powered highly differentiated profitable. offerings, and are technologies, services Our

access. proud more growing who at thought to of incredibly science with and the market year-to-date. than are biosimulation, expert experts industry worldwide the employees currently team add our of are XXX regulatory of continues forefront scientists our in team well We known X% also as to Certara leaders and

subject generally industry. More matter biosimulation experts. in remains the of choice and the and the relative new quarter Our within industry viewed turnover than we low as hires are to were employer XX% of second an scientists our

board Carol Over the we Certara's Gallagher, new Killefer wealth three these of new and Nancy members a and that be Certara Cynthia leadership past months, corporate members: few to of Dr. business. directors of extensive knowledge board experience as brings and board our Each welcomed expand will invaluable Collins.

$XXX last approximately stakeholder direct affiliated shareholders of institutional In of X.XX through on week, Certara, in addition, Investment with EQT. from important than million shares as Mubadala invested and EQT significant in more Certara. Certara remains a existing Company X we announced August a million shareholder a purchase including

Mubadala of performance. We our a as people, financial and are to and in welcome recognize confidence investment excited its strategy vote

our dive and the XX year, mark will York City the business In are for second over deeper the focused a and We investor calendars the will to host Andrew, event. New to second forward CFO strong summary, our announced Looking the the Overview and Day financial where a for of objectives. a results and second deliver will strategic markets. on quarter. the financial into we and Please your for this the to details strategic turn December afternoon end financial of community, acquisition Business it had Certara's in analyst I discuss we against Certara continuing of now our quarter. to we today for acquisition half

Andrew Schemick

everyone. Hello, William. you, Thank

of Pinnacle the into the highlights touch of getting to our quarter, like XX. I acquisition financial would Before second on

excited them start Pinnacle immediately and into a to The Certara. to close, William revenue, company to fit Certara's deal financial be we highlighted, work to the EBITDA. subject accretive As growth integrate is strong adjusted and XX is and are expected with

revenue million growing including million effects in the We expect $XX of $XX contribute XXXX, account. to purchase XX%, of approximately XX Pinnacle not at to

was XXXX, Now, year-over-year the Certara's revenue results. $XX.X months XX, to XX%. for three Total June growth representing million, ended of

renewals. was $XX.X QX early million, result as Software on the of XX% which prior-year increased revenue second-quarter solid bookings, a over expansions renewals and period in the

increased second bookings our the over components second Services and services million a of $X.X driven $XX.X resulting from to in due driven in the which count insurance compared for million, $X.X was expense the in of million public $X increase sales the million. $X.X quarter the X% asset amortization $X.X marketing tax acquisition employee-related $X.X expenses million, in $X.X expenses depreciation increase stock-based as grew quarter from million costs. $XX.X domestic to contributing growth are quarter expenses costs. prior-year in of of Intangible expense million the $XX.X offset second was XXXX. $X.X made the the in primarily the discussed X% company amortization share in increase increase million increase in in to Also of expenses and William $XX.X of Income increased the year-over-year prior-year was stock-based was XX%. was were which revenue XXXX. operating in ineffectiveness. bookings million quarter expense. to were $X.X for million million, per for follows: head the of discrete to impacting $X.X noncash increase The $X.X during quarter reductions by resulting of second to million $XX compared representing offerings. from of a due by repayment hedge from compared effects items. primarily of for tax second million, was million in quarter year. elections as dynamics in for $X.X expense employee-related effect headcount was and reduction And The quarter. the earnings X% growth last growth; renewal income prior-year to The million $X.X second and second the interest item. down of of comprehensive revenue the in $XX.X quarter no the which growth. U.K. for either rate SG&A, compared Continuing XXXX, XXXX. $X from in net was headcount Total $XX.X completed costs million were for The due $X.X EBITDA of second the income, we quarter $X.X $XX.X and significant tax quarter income as $XX.X million for per international interest compared $XX increase compared the XXXX. cost expenses stock-based high-margin such million quarter to grew and a changes R&D the was second million costs to G&A biosimulation quarter line an XXXX increase the of of increase Year-to-date in mix is XXXX the period other quarter company U.S. was year-to-date XXXX were compensation in expenses in share second the the in Diluted increases were XXXX, compensation. to in from for offset to of by XXXX. There aggregate million, The were and of growth P&L, XXXX quarter XXXX earnings of XX%. of second smaller Year-to-date, comparison increase and was of quarter quarter Simcyp Total pre-tax holdco the period. earnings due R&D was the bookings to and the the stock-based items, costs from public relative $X.X costs quarter million the second XXXX compared XXXX quarter for due for which expense loan, Adjusted to of increase of projects compensation. on last bookings second interest our of due was Software were million some of The resulting primarily due period. million a by due growth second increase partially the compensation, growth an and $X.XX primarily to in operating other software were million expense increased loss and services were expenses second both year Phoenix. the tax compensation, loss biosimulation software, was million million Services and the revenue to the million to lower items. in reclass XX% the stock-based $X.X to from nondeductible a line second second Net and of $X.XX employee-related million some $XX.X million XX%. had

and guidance XXXX compared plan half for Adjusted to are was performance. second for well to net the compared share the quarter the on for of our $X.X for the $X.XX XXXX against We quarter the first some was Adjusted XXXX. adjustments of quarter million $X.X second diluted have performing upward based per quarter of earnings income of XXXX. $X.XX million second to second

balance million the Now, and $XXX.X of the to with sheet, equivalents. ended cash we quarter moving cash

and outstanding Our to XXXX. to fees of of XXXX. of total June and We restated million, the $X.X revolver deferred on date our of size as $XXX.X loans quarter, agreement term the increasing million the in million was the financing extending amended maturity $XXX XX, our debt net credit

revenue, are Regarding increasing guidance we our reported financial and for outlook, adjusted adjusted for EPS. previously full-year the EBITDA XXXX

be adjusted range to Certara, range Pinnacle EBITDA the $X.XX For of be XX, $XXX to per range to $X.XX million; million $XXX effects the be in to to of adjusted of in share of in the million acquisition the earnings per revenue without million; of will $XXX the $XXX share.

XX assume you. which when Pinnacle for the fourth the update we our the occur in will Thank of will transaction effects quarter. We guidance closes,

CEO, it to William turn our I'll back Feehery. Now,

William Feehery

very Pinnacle and in strong acquisition a Certara Thank you, a Andrew. In XX. announced summary, exciting quarter second had

Certara continues believe to benefiting solid Our on shareholders. our our from focus market and customers well growth to is positioned deliver that team our to strong continue commitments platform We end-to-end for trends.

We expect point, innovate, overall biopharmaceutical of and can questions. Operator, solutions up you spend up line. platform. please to for larger call a end-to-end open the At to this add new continue as we to acquire capture share R&D we open will our the

Operator

first Our Jefferies. [Operator instructions] from the come Windley of line from question Dave will

You may begin.

Dave Windley

Thanks gentlemen. to about afternoon, ask and I wanted taking Good my Hi. environment. question. staffing your labor for

in labor labor. X-ish both you hiring kind competition you talked geographically? add as increase that in markets the progressing, percent for how need you're to think of I wondering about I'm activities what as a well functionally are perhaps Thanks.

William Feehery

you, Thank think any say Well, business do. thinking and a in I that about David. business the in Appreciate to question. up ours you CEO would wake people always getting good like we the have

basically hiring we're well for doing say competing plan so that would we're are well. I on for We our and year, the

I good careers. think is place Certara viewed as go to for a

to – find and the day, compete continue So And we're of go development more I as think but out trying experts. there to every we software out we'll drug well. forward,

Dave Windley

– And differences there hiring and you example, in your seeing about talked difficulty area. your relative Are regulatory some the Are in that? market are market reg biosimulation between differences between versus competitor for there of access? in the tightness

William Feehery

huge on general, but competitors a not writers and skills the Certara Well, is few like greater what not that, – picked activity like a as regulatory of not fraction the I has in up, said, industry been by a industry the there – demand but won't we're pharmaceutical I'm headcount. has the for people in comment the

the top-quality we do to want the fortunate to attract people to be that. we've able very very, think, So I been still here, kind that of

but haven't have this? I we we easy good to the and of never in to this size we're how the haven't that expected we're mean, seen the look, it's get hitting – competing point we at workforce well year. – do say people, So I

Dave Windley

it. Got Great. That's great.

for go CDISC that to of In clinical how do. applied predominantly data to picture this Is understand real-world trial the projects of called even terms perhaps can Or us as to for the it of dovetails you're you and data Is streamlining, really terms validation in a fits. data? paint in there with that standardization this better well? tight a it how I'm a into would trying analysis that little just some is cross-sell? little

William Feehery

question. that's Yes, great a

have XX we known Pinnacle about certainly and a CDISC about So time. long for

FDA. for help participate to filings organization. we long everything time. part their because effort that get we the our standardization this platinum of of to whole. the – as and a submit further regulatory Certara We're a CDISC We've that. clients industry What compliant data So And in will help see data opportunity the the with been an for is members we're there obviously, we

standardize to want FDA So my about the And FDA one whole do of is when you to view make big it that do CDISC. of that analysis was a basically of like – ask because that – types data. proponents lot the the you to of you the questions the easier data,

an obviously, in tools it the ask But whole standard more like data data So see about out then data pointed standardize that's phase go lot preclinical a we about makes the to phase. a recognizable, can phase, farther It a the we to questions biosimulation even even get opportunity FDA easier. the And the in benefits. market format. when they you like, industry we if to adopt whole if format that's would and that's we it clinical think as makes as get access submitted also the in the being the and is in of coming it

best-in-class And think that enables that solution bigger is long kind a play that in a we think over a quite to is pharma of going trend this time. out so we

Dave Windley

answer. I'll floor. to give for Very the interesting. it Thanks the

William Feehery

Thanks, Dave.

Operator

from America. next question Michael line from of Our comes the of Ryskin Bank

You may begin.

Michael Ryskin

where up old your pick in Pinnacle business. how fits taking it sort XX I off Dave for of exactly question. the to and Thanks offering on left the want with

lot talk XX, a I talk customers. are customer bit XX of how Obviously, little a just tools software top of Can little EBITDA by the opportunities? or there you in Are there? talked to you could for about you're the you bit cross-sell accounting more adjusted if us believe, margin? pharma between you help overlap. a terms being curious bridge Do any being them comments on the used synergies Just tail sort just by revenue your math see the the of of accretive about

William Feehery

Andrew and start can about I comment bit a Yes, can then margins. the little

adding So top many those and lot customers, overlap, opportunity compliant opportunity XX XX we tech-enabled our software they significant to obviously There's repository our services that's called and have software. us the combining the to works for with we with since of clinical of – is same with but they XX have. by a opportunity a that's Part doing cross-selling Integral there There's services of consider XX Pinnacle an some of we also CFR with have a the a There's for it also data customer have there's products. combine an to product XX. – that

along sales we're a combining and lot capabilities, data add we of makes marketing our global year, we to in, as the with adoption continue the to opportunity so and we which there's think validation to compliant repository lot XX a its And a investing go through software expand of in reach industry. And that Pinnacle sense. pharmaceutical as

Michael Ryskin

And Okay. the... on

William Feehery

want Go And do you ahead. – me

Sorry.

Michael Ryskin

ahead, go go ahead. No,

William Feehery

It's No, please fine. go ahead.

covered I we it. think

Michael Ryskin

bookings in in a talking net us it I'm guide on you're Is months nice about little second nominally outlook. my just came question you're XX raise. expectation, was a fiscal be change. give I Just giving you that. year bump in going had to the a trailing wondering I of just bit what fiscal consensus. seeing other yet brought the you XQ of sort was broad or markets? what's a on going to the our results think, the about sort the flavor to of little confidence – of ahead But something guide

Andrew Schemick

of the a in for combination it the level of but put from down to to guidance terms positive first bookings, little of to stronger the also a – that with into we're still us high second discussed but uplift of the TTM slight had that. expecting shift, performance The have the a a and market we in seasonality environment The and narrow position of half half we side, visibility if year-to-date a have conversion raise commercial confidence. that see in we're gives you to a terms last It's us bookings, we products the revenue half we going the regulatory we time – an offering. strong on second there, kind were

Michael Ryskin

as Okay, thanks. the queue back get well. in I'll

Operator

of William Our comes Blair. from from question the Kreger next line John

You may begin.

John Kreger

Thanks in very about seeing talk in that any trying Bill, and seeing can much. of you're that I'm you activity had of across client wins just kind bit a the the curious if just type you you're access. on quarter. either services they're the little mix reflect type that levels shift or to

William Feehery

earlier that well, the trends about – that No I'd continuing. year talked we the say in are

a of I trend not been biopharma our biotech aren't customers. market And So we're less earlier, that's time. – little probably out we that's we're talked there. about customers think is seeing sort penetrated in our going we're on, think quarter, It's a for a of result mid-teens growth in pretty bit – biotechs our But lot overall but just the pharmaceutical overall and some somewhat this growth higher The of market. a I in the growing well. bit biotech fact, there as little a in

think as I to certainly, industry, of of in biotechs lot the not well. the is a trials investment on. there's going a capital there's there's healthy activity see But going a you lot can Certara. pharmaceutical activity in new just R&D lot quite industry, and across of And

John Kreger

sorry, off. to – And still didn't going? I'm Thanks. Great. Are I mean cut you you then

William Feehery

No, please go ahead.

John Kreger

Okay.

the your second comparisons kind in Second the line at all? think half all, second year, top think given, question was And related that year to contributing the a COVID skew of bit we work. little last at of Should of still we contributor COVID assume is as about the a will that that I to half?

William Feehery

and take ask I'll I'll first on then Andrew to a little part bit the costs. comment Yes, the

So come will went as quite of our certainly, did low like last we were and second they travel year, quarter back. slowly some as them costs, in costs,

efficiencies. On the also gained other hand, we've

of most comment offset that as on to But in that? go year. to Andrew, intending the we're you forward think I So want do we

Andrew Schemick

SG&A the Yes. quarter the second really benefit We in but investment we costs quarters. saw the the shifted latter in year, of last

the can think margin in of in our that resumption you factored plan. a into adjusted trends I EBITDA expenses year. This travel see for year, last we

all for expectations the it's into So our year. incorporated

John Kreger

cross-selling then you a before platform hit Pinnacle – can software where last we is your into the And get When period with of or time you there's there the integration do one thanks. sort the ground should full of can closes, broader playing assume Okay, that XX. benefit? to one, immediately you've really and got

William Feehery

sales think opportunity broad immediately I Certara's would a a very just marketing significant software customer of time, larger which have to over we'll you – obviously do in take integration. So It add the – time do bit we about. And XX what talked capability, a base. then is using capability of Pinnacle and to to that little and there's

longer-term we here think with this both So and short- opportunities there's company.

John Kreger

Okay, great. Thanks.

William Feehery

Thanks.

Operator

come question from next Our Stanley. Purohit of from the Morgan line Vikram

You may begin.

Vikram Purohit

quick on geographic I taking for expansion. just a Thanks my one Great. had question.

next has may milestones that's part if previously also, And broader anywhere, what interesting to variant expand so see grow in if U.S., have Delta or plans to impact us emergence had world. the to an ex opportunity of you update interesting. I could there your discussed that found the presence China wanted see the of any progressing previously are wanted the and in I China, you your just in You to some to on of how that

William Feehery

Yes.

us. to it's long continuing We good a China. think It's a term. in we're hire opportunity for So

it's our give and think comment – of a base. COVID, want Andrew as us, we There's just pretty It's handicap to demand. this activity of – lot people travel there. reporting well, certainly fast and was business of you small although still it say, since difficult to back we're what will we're it's about I to I'd I question, as your ahead little to. the but we're expand of send it for if we still We're relatively harder To can't easily a lot difficulties There's though, just by used on quite expanding region. out a China. be If a as of doing as forth can we probably there, in bit over. makes have

bit of on that's our think growth do China? Andrew, I in you question. a comment color on to your little want

Andrew Schemick

just our Pac, split. growth that's in would to saw we In in and we continue strong add I Asia see XX% No, reflected rate. that geographic China growth

Vikram Purohit

Got like years it sort expect it. to internal is quick mix you or follow-up, for the shift it U.S. is over of a as goal there what see any now? would to And you how of bogey you with ex pretty internal be or coming U.S. versus revenue have consistent do the

William Feehery

U.S. we think let's XX% say, business in our I north roughly of have the of,

about think of – shift it China I enormous that will we're footprint way want the the Certara's a as is job, the pharmaceutical a R&D we think terms I because our good of of match I doing a industry should revenue, whole. some if our overall in kind Europe of as little be won't bit of in up, it the and see a percentage. investments pick But

an forward. little percentage, So I be as still biggest go bit our in the a down base U.S. that's think we'll as we come likely to but overall

Vikram Purohit

it. Thank got you. Okay,

Operator

from of will Our Kesavabhotla Vikram line come from Baird. next question R.W.

may You begin.

Vikram Kesavabhotla

acquisition, if any question. And you capabilities of the now back add deployment first, there's your the through XXXX. Thank the the on Yes. areas the other thoughts you're if looking curious this platform. to to taking into and of us give some year particular to that for on approach or balance updated guess you Pinnacle capital can I just

William Feehery

Yes.

ones was IPO, falls which acquisitions, of the of coming was bolt-on of do lot we good we've bit. we I a good about that our opportunities to a history see a then what should out certainly us to add a Pinnacle series expect doing or small might when think think to like that. looks occasionally, have little a you talent at something we – said as into. there I And base done which price be we asked this. that Very strategic, little were I something And XX

attractive. growing business and integrate job do I – think our think the growing goal that little in make we I kind that sure they people I those and is of to We'll No. a bolt-on certainly X the same Pinnacle really right – we and going So acquisitions XX way. do organization. do welcoming good Certara where we'll now some look forward,

be So that's going our main focus.

acquisition or go So something look in that. industry a out away do a if became we're like it. very feel and same and at I right interesting the anything available, need take another time, But don't the strategic at to and growing, important would we certainly

but need no plans now as kind real we coming do we So of plan out the this IPO. were that integration, right about same talked – the as and to there's after just we and no frankly,

Vikram Kesavabhotla

as based should on on any I'm growth forward. going thoughts then lines And about updated software follow-up, the of each of mix that seeing services in maybe just and your now, the we think those bookings how great. of just a right you're curious, Okay, just

Andrew Schemick

Well, low services. for high-teens for we – to we've to mid- about yes, software, talked mid-teens growth growth

around I So expected clearly, Pinnacle additive software addition we'll is which And rate the services basis points. to to of be XXX the a overall XXX to at to mentioned of XX%. prepared rate growth grow remarks, by points. shift the in by of at Certara basis XX, to mix approximately the about It's XXX going

stated, a I we'll software had the low in little growth So what to relative to see higher previously mid-teens. bit

Vikram Kesavabhotla

you. Okay, great. Thank

Operator

[Operator instructions] Credit from a We from have Tryhane Suisse. question Katie

You may begin.

Katie Tryhane

or I software new relative your expansions forward? Last including and Thanks date and offering. Hi. of been And question. Simulator intelligent more XX expectation? innovation how the you version going to about quarter, product the for expansions, been new my secondary product reception to those launches how highlighted we they adding to growth have offerings a what broadly, for couple and launches the or performing think should has taking mean, Simcyp

William Feehery

Thanks Yes. question. the for

to XX it's the So is right biotech particularly you new to adopted about of up about, area. revenues the in have the Customers talked questions so opened of to version serve quite Simcyp lot products now. Simcyp strongly that opportunities is answer – customers current and our new a driving talk – the

still is an intelligence secondary Our early stage product.

is We to of that. sort the of product. that expanded are which And it we're currently of cover. the it, launching, this a I guess, has number think targets actively version what unique can call next We marketing you'd

to are and that to Certara out of many there. areas fair in R&D. I got introduction and And on opportunities, a take your but industry, interest think, I There amount – base – to do we'll the to to broadly more think ideas to into there. introductory we've hit significant technologies account some money marketing to of work see are spending question, expand So we're then some more kind different our product therapeutic

been do is launches how just on. what to So just we've we've trying of additions product this year focused and highlight product kind many been

kind I growth year kind or will and they a introduced and the overall, of as Some take to long take they they're indicative with a been off. doing we've time what of this industry two of got. get think we've those we've But the how rate gotten of company

to So in we're invest our future. continuing

Katie Tryhane

Okay, great. Thanks.

William Feehery

Thank you.

Operator

today's not I'm And any the showing you you. questions in queue. Thank conference participating. further Thank this concludes for call.

You disconnect. may now

William Feehery

you. Thank

Andrew Schemick

Thank you.

Certara (CERT) 7 Aug 212021 Q2 Earnings call transcript