Earnings call transcript Q4 2022

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Operator

Good day, and thank you for standing by. Welcome to the Certara Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded.

to Deuchler, conference Investor like speaker to now David today, Relations. would hand over the your I Please go ahead.

David Deuchler

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

On Feehery, have Andrew Certara, Chief the Officer; Schemick, Executive and William Officer. Financial call from Chief we

financial release today, press ended December of available on the for XX, Earlier results the A XXXX. released copy site. Certara is the company's Web

mention non-GAAP results during GAAP measures begin, may Relations the In company's this expressed earnings in you the make Slide you can comparable information, or that we additional the management statements financial those most remind and find materially which on X measures. directly for in I'd available site. forward-looking differ our site. release to on company's actual Reconciliations that of from or non-GAAP call the available measures statements some the Please financial like management will to forward-looking these responses in include recent the Before Investor refer may are remarks materials to questions, Web will implied accompanying statements. to

new additional call For information projections except time to forward-looking please today, broadcast is in future financial or reconciliation XXXX. the required or disclaims information, March of as and law, events statements, of only live contains accurate as otherwise. sensitive or by any This revise materials. XX, information, the accompanying obligation, whether update tables Certara refer conference the any because to

call And over William. I'll with to that, turn the

William Feehery

I will with remarks thank Thank Andrew full joining earnings Certara's start you, for fourth prepared you and and And we year take David. then afternoon, quarter call. and questions. everyone. Good will

and initiatives the by significant drug accelerating people our and disrupt beyond our finish We with are the and drug we millions cost to to to with are probability of we innovation as focused proprietary well safely well health process key services. have pleased XXXX and technology progress made the the development XXXX on and execute success of we mission trials for we believe are lowering Certara's being year. biosimulation the positioned strong increasing across throughout the of in At Certara, globally. improve We

Schemick, is Ford. into the strategic with successful staying and would role transition goals. a Andrew a Dickinson, of senior of quarter, GE that John at decided I we public he Gallagher that CFO him after appointment CFO key John. operational the executive the pursue get as in roles to is new Certara Certara, and finance career eight announce a April very CFO good in company Xst. to as like details a prior this After the at time to Certara's And be with of has Before a for with proven will career Beckman years Cue as Health experience John finance pleased helping I'm and other effective

Pinnacle XX's revenue million For revenue profitability our XX% XX% year-over-year provided grew contribution. the of XXXX, end Reported exceeded by year-over-year upper excluding the year August. in of full ranges of metrics our guidance and $XXX and

and growth of indications platform early of has regulatory our are our of underperformance the regulatory corner teens. business we pace double seeing mid which are of the and the in we changes strong in with pleased XXXX Pinnacle biosimulation has the expanding in about at to into XXXX. worldwide. with turned we and I for business, optimistic we We the company's XXXX. and encouraged expect historical digits contributions outlook business in team. are we the platform resulted Pinnacle am or has rates Certara expectations operating by will team the of headed more but with discuss contrasted XXXX awareness second our into financial a the low the will adoption our able total excited of in with The been the in Pinnacle better what for XX biosimulation demand XX and year XX company XX our made above within Pinnacle translate Andrew XXXX compared from Certara's half performance performance improved excluding overtime. about that been all regulatory over delivered do are the

new We end-to-end our with customers. continue to XXXX with X,XXX customers finish platform and reach

with total strategy top XX solid revenue expand growth generated delivered company from XXXX therapeutics about and existing well, global companies. land of in among customers Our as the XX%

$XXX,XXX, from annual an As XXXX. XX of annual million, of than XX% value XX% $X of more December up contract year-over-year. XX, XXXX, more XXX We of customers an contract growth value with had with representing we had than customers

fourth continue biosimulation services as quarter we currency representing a Revenue a and million, year-over-year reported year-over-year on on growth was and to $XX.X driven quarter XX% on currency growth basis. reported XX% XX% a and see strong basis. was Our demand $XX.X represented basis revenue million XX% revenue across by growth a on categories. constant all Software software of customer basis Fourth constant segment

performed Pinnacle and expectations financial Our XX, the year. for biosimulation at or did strategic Phoenix software well and core as our delivering Simcyp above

XX Immuno-oncology updates software annual Simcyp were introduced Discovery Pinnacle we XXXX, Simcyp new and and the Data platform. Vaccine of and new included in in versions the Exchange Our on the and the products into Simulator, updates XXXX Module the Simulator. Phoenix launched Also Immunogenicity, which

are to Certara. management to across Pinnacle data We and platform committed leverage ways finding new organization XX's

the software. Vyasa to intelligence scalable company encouraged Simcyp software deep effort adjacent acquisition are biosimulation with learning an We we Discovery, are our customer early with by of use of artificial to cases. in an Similarly, also example into expand January, Certara's traction excited announce

integrate bolt-on structured to help the of questions to and was to answer the throughout the biomedical the integration throughout relatively course Certara platform customers the working complex technology software Vyasa across transaction are expect existing we We information. unstructured and evolve year. process small

of and continued to XX% quarter on a for XXXX. basis was quarter reported segment grew demand revenue Fourth with with technology compared services services robust basis XX% approximately a million, XX% constant Biostimulation which driven XXXX year. see growing currency the fourth the $XX.X on

in This encouraging trends for strong use throughout expand was small in clients in services’ into as bookings the continued on across impacted the are driven XXXX therapies The reported in regulatory Technology regulatory to quarter laid expectations discussed out biosimulations with our seeing the due we expect molecules. XXXX biologics, in earnings calls. weakness We year. growth is previous XXXX demand cases strength our we by gene services cell business during and biosimulation testament finished second call to August. as the and services line

mission drives development the of to is we're in well in growth. summary, XXXX a our our our believe success of and solid and adoption to offer shortly. a We value proven continue end from with customers of long to our At employer experts XXXX, believe to we like is The the we team research the of near forward. our will rapid the term, services doctor Certara. is a biosimulation, as success to our matter over including XXXX we support hard in catalyze with We for worldwide. in development strategy. we Certara. the a deepest term of I'd strategic expand that with by and In X,XXX business We organization strong innovation. drive detail over we In the drug and performance adoption positioned choice biosimulation the and our invest biosimulation our close my degrees. hiring entire team our long and to XXX and the appreciation pleased remarks the support outlook culture the Over for regulatory and and more employees, drive are subject had development. this and commitment It more standpoint. prioritized and business of scientists my business term business XXXX, we Andrew believe in work dedication business leading than industry to extending of people financial for incremental discuss

it now fourth I'll our and turn Andrew financial Schemick results full quarter year CFO, more to in discuss ,to detail. over our

Andrew Schemick

million, ended XX% year-over-year XXXX Hello, revenue XX% the on on representing William. you, basis. a and reported of months growth a Total currency Thank three XX, was basis everyone. December constant $XX.X for

total and a constant XXXX, on year revenue $XXX.X was growth which basis XX% full growth basis. currency a represents the on reported XX% For million,

the consolidated Note as of year ended trailing going Pinnacle Excluding business was on XX constant basis. were of and came XX% currency for full period owned a forward. XXXX, as growth at up financials have we Pinnacle the a ahead, year Bookings, year-over-year. in will into month year XXXX that part XXXX full October million be XX, than XX% more the we $XXX.X for and visibility XX, December XX our provides which reporting

ended the company total bill Our ratio year X.XX. book at to

The the XX products over XX% million prior a basis on $XX.X growth quarter on the in currency driven was constant new was biosimulation which revenue quarter, in a Pinnacle fourth by XX% increased basis. the software. reported and period and Software

For year, a revenue the reported XX% XX% million, currency software one was up on on constant $XXX.X and basis a full basis.

Subscription constant the XX, prior of accounted total and Pinnacle subscription XX% XX% revenue XX% Excluding basis. grew a amounted quarter year. year for currency XX% on for revenue the revenues. revenue the to ratable revenue full Ratable software from in software year, software of fourth up

fourth renewal up quarter, our increased Trailing and Services software prior were XX% the period basis. in XX% was software in rate bookings XX% which revenue on XX $XX.X rate $XX.X basis a million prior period. in the million which months XX% bookings over for fourth a down the due from increased XX% in The million, the which is to in a but constant year $XXX.X line reported was quarter, year currency plan. Software resulting on aggregate the fourth quarter, year, with XX% were timing year-over-year. the

million, $XXX.X on a XX% full year, revenue basis. constant the a services and For currency on XX% basis was up reported

biosimulation drag the million, in the year. As services Technology were remained the was growth rate. regulatory million, we prior $XXX.X driven bookings was year while services in bookings fourth period. XX compared and quarter services which a $XX.X growth discussed, increased were month services prior as XX% which overall XX% the previously XXXX strong from revenue Trailing X% increased on to

$XX.X in As was equipment, increase fourth $XX.X of other quarter of such the of of offset outside XXXX, expected, growth million $X.X booking The XXXX costs in from cost increase costs bookings increase million. and revenue revenues, million costs, the was while trends the in biosimulation as employee be consulting an based million, $X.X down travel to strong. software regulatory quarter quarter compensation to fourth continued stock by of million lower for primarily $X.X licenses, and due related in services

quarter loan. costs. in fourth $XX.X for quarter in Sales follows. increase the as an XXXX of of and currency to XXXX. fluctuation sales Continuing expense quarter to for million to expenses rates. expansion million based $X.X R&D increase $X.X to P&L, XXXX for for million travel fourth compensation, $X.X quarter exchange The transaction compared $X.X and XXXX $X.X fourth from primarily of amortization other and was up to acquisitions to due and million expenses the of $XX.X fourth $X.X compared were primarily $X.X Total the expense last foreign costs, million decrease development. remeasurement million at fourth to $XX.X due XXXX. to increases fourth relating employee the expenses expenses for $X.X expenses due fourth the of $XX.X of the compared expense marketing was slightly Miscellaneous marketing force R&D fourth to $XX.X million $X.X $X.X million investments XXXX expense quarter decrease in stock were of $X.X to in in down higher Intangible our million slightly million $XX.X $X.X Depreciation million the XXXX. flat from term G&A amortization expenses with $X.X are related million R&D in decrease quarter expenses the quarter XXXX. million XXXX. operating components operating million timing primarily research were M&A of This The to million up related due of related loss offset million the million million costs. interest million the year. to and by to and is asset to compared was million, for $X.X the the were was and and due due quarter compared $X.X was employee in of expense of in million compared interest of in were

compared rate full changes result impact the the in jurisdictions, representing million XXXX $X bringing XX.X% growth. in the million, $X.X tax the was $X.X Net XX% was XXXX. earnings of Reported the as for quarter diluted quarter to of share million fourth income quarter of the to was to Adjusted unrecognized foreign margin compared to fourth $X.X to in the for of $X.X quarter XXXX benefit Diluted the fourth quarter tax for project income income a prior $XX.X among income to earnings The million and of quarter to XXXX. XXXX credits. adjusted the EBITDA for to compared planning $X.XX fourth the for of per $X.XX fourth second non-recurring XX.X% in provision of fourth fourth of of per million in year compared change the a adjusted the the was half completed full XXXX. of compared as XXXX. year the previously a quarter Reported of earnings of quarter XXXX of mix $XX.X XXXX $X.XX $XX.X compared fourth net a of of quarter share $X.X and in in was net fourth was was tax quarter year the loss the benefit XXXX of the $X.XX the fourth of million million XXXX full loss XXXX, million Adjusted fourth take of of for million EBITDA for tax the for quarter XXXX.

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

on As our XX, full outstanding of of and $XXX.X we term million under credit December loan facility. XXXX, had borrowings revolving availability our

guidance. Turning to the

$XXX of million, to XX% expect XXXX. full the growth in to representing $XXX range total For million we with XXXX, XX% compared revenue the year

a services software low assumes digits to total given continues compared the assumes also as our revenue as software in guidance of we rise The have and revenue bookings. services where increase trailing continued subscription Our biosimulation strength good XXXX, revenues. to to and in visibility single growth month XX guidance regulatory percentage software

fully million, Certara. to over and opportunity the range range And before for questions. the with $XXX call John the $XXX in we background thing have per million million We to of today's last Certara. I Health million, the an Cue announcement, range expect in tax to diluted adjusted $X.XX in to John to experience the welcome and his With EPS take opportunity $X.XX a to the turn of prepared the has one Beckman share, XX% EBITDA of want in $XXX Dickinson rate with well impressive him adjusted XX%. of range $XXX to to shares

past strategic we executing the in a Certara and CFO, CFO two is put to else. private years has to nine and years evolved Over a a Since CFO company responsibilities been six public has grown against. team transition now significantly. years, that plan becoming someone have public, a as term time company After successfully the good long as place

on intend smooth transition of ensure a and a responsibilities Certara growth orderly that with Following period focus John, will and I to transition operations remain to initiatives. and

remarks. Feehery, our closing for I'll to now William back over the call turn CEO,

William Feehery

like I'd job of Certara. personally his CFO as Andrew. outstanding to for you, Thank thank Andy

results come. then X people the that from as company I'm through time, an owners two of continue as our very company as And our the with phase his that benefit most he and today, nine this it leader the in retain a growth. believe the in well for finance biosimulation. we for profitable. Also and and Certara happy remained that years XXXX. class future to private global with and someone positioned and we IPO for year company next XXXX summarize we world times will in plan To of in importantly, are we consistently during that we're had to continue message the a transitioned helped years Andy's able revenues, growth qualifications to build grown Certara we pleased Certara's has knowledge During organization over is as and CFO,

open please now the the Operator, you will can questions. We for up line open line?

Operator

from Jefferies. first [Operator Our of the line David question Windley Instructions] comes from

David Windley

new over about guess maybe year some talked biosim kind like nice it services, looks strength particularly you, with having logo, last help in help and luck large what luck new uptake of the and just guess, are what's services by in is, between nice of and kind with with Bill, so. Could relative there that commentary. strength I software, the understand customers logos it or customers their of you not the more I'm demand, us in and you in effort real I small, pushing or to customers? small interested i.e. and is customer cohort large just

William Feehery

So across and about quarter, them in revenue. business during XX% grew is fourth have. And equally both XX% XX with is the other top customers the the our the fairly with X,XXX company of roughly we other of the pharma

for saw in of towards think tend this or what members a the just sales different, services new nothing the in you which of it say, they that's that was I customers many it's and of a it's for purchase right certainly area. software and consortium, that trend. be smaller our customers the this continuation one provide patterns said not segments. other, of large we are buying ones, we and It's we kind counts would to been number of more have software are of although, to about both this just particularly kind a But customers larger bit way So biotech a skew I XX% now, sales, general the trend years customers, tend to fourth quarter. progress sort also the XXX% little services of a our as true software

David Windley

follow-up that. Just to as a

in formed newly correct more that has -- if kind wrong, a and basin, risks last come to The your you of people of of companies customer vetting, a presume I think so, or from had terms do on lot for of I potential there? biotech the in space. balance them you funding you logos shocking or -- a night. or that been Novavax What environment kind are durability announcement challenging guys relatively do I'm of but the In me last young sheet kind any lot new work of seeing diligence year

William Feehery

we'd So are to work late early customers is what them, who drugs The far. mostly tends to opportunities for gets like To they And the a introduce hopefully of we're small our don't revenues, anyone financing possibilities question, a for develop seeing I tend fraction about ahead, talk a fairly them you can won't phase to revenues bulk in ton bigger. the to to development, still get of that along. spend our chime get development. answer second the doing the with we're projects of that your they clinical but -- why do that Andy, relationship constitute they're in well go their drug we that Certara stage Certara get farther here, small drug as can But and until with part? they us -- get Andy

Andrew Schemick

in -- got to revenue. that terms the of ensure recognize you're with Just the customers available diligence, the the required accounting to order in obviously, we funds and rules

have upfront a on we reviews and monthly checks do credit -- we So basis. of a our AR

on a pretty we're incident issue some see did not related isolated So an terms widespread We bad increase compared the last year, it debt things. to but was reserve of anything. in those of top in to

David Windley

put of you [confidence] And you said like to on the it little And come are delayed what a bookings, they reg seeing interested growth, I'd the a are you gives a question if was it performance? grow number delivered those new ‘XX? projects description some can of sounds for the back, so bit of XXXX, It you it in then what then actually is, flat? seeing on in business. grow. You it like last services health expect me was you just be down, drug what

Andrew Schemick

Yes, I can this Bill on start one.

last for and and previously the rig the past which of some that we In -- the terms Year-over-year, ops reg access of and we've and grouped quarter inclusive was to relating work. China down X% large together. services, discussed projects it that's

fourth but So pretty opportunity. we kind the we're of of the bookings and did remaining is see optimistic quarter, of pipeline our to a through we healthy return a business year. growth our In as build there underlying first the and that with half lot

single those guidance. into So our we incorporated digits

Operator

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

Vikram Purohit

So two side. from our

And are And was revenue the guidance unpack you for Could you First I secondly, opportunities bit of know that if the Pinnacle it offering, XX to bring where you've I on materializing scenarios year? project spoke there mention help wondering on talk on the sample together two guidance? by from bookends Certara how implied acquisition? about continue Pinnacle or a throughout both just how more cross-selling bit. had one a kind provide XXXX. you maybe detail cross of a that are the maybe little type the could then XX, some into and and from opportunity that offerings selling could us about But

William Feehery

first guidance the start bookends. with I'll

So the but in macroeconomic year visibility. the mindset three given today, factors I conservative mentioned the environment on the with with call, we went high

range, and We XX% we've visibility of in low XX% work with a have rate, renewal the and that factor to conservative metric, for visibility accounting just doesn't assuming opportunities existing which the a about expansion the clients. that's XX% end sold into

just with record that upside have is where around to the general Is bookended opportunities associated the conservatism growth don't helpful? base forward. extrapolate to environment. track the is we So our our And really related the case a software regulatory products midpoint, by and really new

Vikram Purohit

you. is. It Thank

Andrew Schemick

And XX. then part Pinnacle I can address the about

sales of provided our in integral of of Pinnacle selling selling So additional seen opportunities simplest The to opportunities. are Pinnacle product repository, data which Pinnacle that We've one there tied base example a we're XX the into. have is to maybe to cross opportunities tap XX. tied cross user of able most terms was XX’s services software number also direct that we into tied

couple that right of on now. things are there's So going a just

Operator

line comes Our Barclays. Sergott from next to question Luke of

Luke Sergott

to us guys kind rolling your that the how with give a guidance, on? are Can you margin thinking growth expansion, of you about how year and of the just the regards -- the sense pacing how throughout

William Feehery

you we the will, consistent the if of had revenue more pacing, excluding historically year. on what bigger the of half side, XXXX a had half the with XXXX where first was we back The year versus

So out the of The investments in year. that and with margin. was forecast, accelerated investments is XXXX and of will those the terms a the be but the EBITDA on very difference throughout similar our expectation the in year weighted revenue we laying early some plan see we year, our less significant the earlier spread the towards impact half in of made

between revenue a closer and So little relationship the the EBITDA margin.

Luke Sergott

conversations And then last a issues a I a those involved from the adopt of to time doing in chain. non-human you supply replace biosimulation alternate it's of But if data, to what to are for for me, conversations? a lot primate FDA -- know having are lot going even guys and regarding -- the long or -- on from news you FDA those. take the with

William Feehery

We for have been long an a advocate obvious of this time. for reasons

be animal If despite position that our But quite it is particular So a on And been on lot the conservative to years it's contains want moving and of we conversations step FDA. potentially capabilities. and testing, well us. unnecessary been watch in from unfolds. said what an how for industry this opportunity that I change, is in been as has had we animal there is animal the the conservative a moving away the The primates. with models in that has testing conservative industry modeling quite have over Simcyp given

Operator

Credit question Leonard line comes of the Dan from next Suisse. Our from

Dan Leonard

for two me. So

historicals? is able and whether you to in speak in capture First, you're pricing to environment, XXXX pricing expectations for the the compares to how that can what current

William Feehery

year across product to range. So time we I’d X% with pricing consistent for historical in The -- say, line the I'd you. hard hearing the are X% this and expectations

Dan Leonard

similar my follow-up, that velocity testing? impact a the specific opportunity of legislation using frequency, Have substitute the then to modeling Luke's question. computer had in as around changed way animal FDA Modernization any your does at given X.X? have your language for Act And all, -- And business for you following conversations

William Feehery

us helps actually language the lot. So a

modeling, we which alternative fosters like what into basically methods So it falls provide.

So a to yes, is, us. answer the short it's benefit

Operator

Max Blair. next the William Our Smock of from question comes line from

Unidentified Analyst

on discuss geographic geographies? in just for what know of each you just see Christine your in China. are It's one, recently of biggest Max. you've me, the sort challenges the Can headwinds key Two called first of and terms in out opportunities some you for I strategy.

If gotten better or dynamics could you if and situation incrementally here your worse. business the just discuss has

William Feehery

in. I an then it can a an pandemic, little the office chime it very opened can grow then us. start We is and everything Having in X% making are like and remains, pandemic Andy we travel at our and else. still the The that, chime opportunity investment to opportunity China in, revenues. situation situation it. given or for an it’s think was Andy said can I there and of the and hard of the China beginning today, X%

of pharmaceutical much industry go. our the to it's geographies, we pretty follows revenue -- global And bulk the is. Certara’s got ways have other some still So then where

are the bulk So North the then of in Europe. and revenues America

acquisitions made of footprint a we've sales and have well some -- underweight to of and there couple so been for that's slightly in paying as on our past bolster we bolt been years, we've and been We the Europe couple investments -- in off.

And in Japan, force and that been on Korea us quite think then building that's India, time. sales there's and get been can a and places Outside participation into significant going I you base So we that's interest have then longstanding of that for growing. in customer some set South and an customers sort of -- of slowly our tap interesting so opportunity for that like into we we're which an certainly starting that. there are biosimulation

Unidentified Analyst

given from your Have you potentially players started to business to business maybe wins one couple regulatory a some the terms And restructuring upside. in and at increase then see in the distractions questions? of my some larger potential of of last large the any [indiscernible] CROs

William Feehery

pickup in fourth bookings significant in a our quarter. see did We the

force. a in in some management we've talked due business, Annie to I the So of reg, sales we're that. our and that's we think -- the to recovery at about our like what looking our that's and changes when made reg were

I'm sure confusion, like I not so CROs describe exactly or that. And to something it could

So to backlog it's going we kind recover, seeing couple a the quarters take it where the of to are was. rebuild back business to

conservative for that. for the hence So the guidance year

Operator

Goparaju comes next Gaurav of question from Our Berenberg. line

Unidentified Analyst

Matt is on This for Gaurav.

First larger well? some question biotechs pharma, here. Are of your these customers are as customers ACVs large with or typically

William Feehery

I typical pharma biotechs some we XX is candidate, obviously foundations and It's a top also mix. some say in well. large the the have as would but

Unidentified Analyst

more then my consumption? just terms from And of joining more the wondering or customers their from you revenue seeing follow-up, drivers, contribution platform customers new for in are existing increasing

Andrew Schemick

guess, of year, I logos to this a from ended up revenue with similar in revenue new we mix of the customers. XX% years terms to growth contribution seeing, previous We're kind

So I think, the actually balanced and about for used. year. new then growth customers other XX% grew mentioned, And Bill was the all grew and one TTM customers as XX% we're tier seeing, about number, it amongst the a

Operator

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

Unidentified Analyst

This on for is Mike. Wolf

already So wanted and offset. selling start you color M&A, synergies I or to Can any would be company there? the you any you the least that cross upside? to generally, outlook guess historically. year growth, been specifically Does realize give fairly a the closed embed the your source then guys I contribution beyond of on profile expect with opportunities margin off have at size, more us deals And you've M&A on acquisitive for the at or

William Feehery

to include we've and kind a what And So is which about talking quick, while the the been not been we've the does question answer that outlook M&A already the what one second first any to to for of now. is not we've answer similar completed. executing the is

acquisitions. primarily development. looking in our These we that look in we're to company that we're products for categories. we we So at more happy at critical to said people can the really the at can good biosimulation. past, there. lot really We then time, as future same something them with significant small in where internally. There's for find we as in all. would -- that you quite And acquisitions justify finding at and look the are of perfectly strategy to. at small the can’t one hiring the we it drug data, on depends bolt-on potentially times all easier price But of software at the many that ideas. extent no we're much exciting over with something an look that's can that really I've And we expand There's We our well strategic, But do places the we It shareholders. talent. accretive basis One a a be than position do and example. big company that the but go analytics interesting primarily some a two there's being an able can't tend on We them the space. acquire -- in modeling if world decisions vet lens, really to through time, acquisitions out of kind acquisitions, provide fits when

Unidentified Analyst

the over Are in in changes follow-up. unrelated your are an Certara any Act, taking term? customer legislation to you due on any or then And change cohort Inflation you for Reduction to seeing large any pharma steps to medium behavior position from the long internally

William Feehery

the get of whatever pharma to does, there. Reduction the We pharma pulled anything tend aware we Act, affect us therapies along. to We seen invest about pharma would in tend molecules or in whatever but are haven't discussions We that is. that interested in is Inflation

And will so discussion that therapy so affect seen carry far in haven't their that a of major any signs affect us. to change another but if we investment from a would one there to shift eventually or is of that us,

Operator

of Our SVB from the next Zhang question comes Joy from line Securities.

Joy Zhang

performance compared than the better there call sort traction if software I that to and side. But think curious the execution. anything about of sales calls? terms marketplace commentary in couple strong past overall in shows obviously elongated of of is prior highlighted cycles environment, in sort your sort on And earnings the in you to the improvements especially any out of sales expected of

William Feehery

You are are Andy one, that you… start with going to or

Andrew Schemick

can I everything, you if I don't start, it's… -- if couldn't quite know could but hear I

William Feehery

is with Well, on ratio basis. we report bookings annual way recall, ended year the book-to-bill if the you a an X.XX. we of And

it the how are likely where to for we on we year. So three year to only do deal, our occasions a year indicative might report make do one current we of

to guidance. X.XX results number guidance, pretty is a the produce healthy So within is ought revenue and that

pre-sold going we got into clearly We year. the work already of lot a are as have

I think we quarter, during healthy the saw bookings. fourth

quarter-to-quarter customers earlier, get doesn't late, get because they bit a large little a a really long vary they to the revenues, matter into bit you little into as it tend have bookings Our bit will will which for book quarter as year.

So We've introductions new software that's months services accelerated on a as on have and guide, the as tend is of XXXX to -- what everybody bookings number, into we IPO. to we look our healthy got since the well. lot quite at we XX trailing product go which

products to we out got got, So more well. as some adoption line we we've started which start got some in the reason think, in which there, accelerate will we to believe year early and pipe some get last things have to and I hopes new have

on as So of pay -- that really of a good well. I things mean there's I we're think and in it's overall, will shape development think in good terms future pretty going off lot we

Joy Zhang

And Memorial partnership Kettering as super summer, last side the of few early product on something you be on to a on that of side, years meaningful color and takes Know a follow-up development how would the would you sort any be have helpful. announced the updates that but sort that's any revenue Sloan progressing?

William Feehery

in us It build that one kind. data Well, it's that. would Memorial to Kettering get a it's valuable extremely The of still access be Sloan work It -- to use gave it. be to extremely can access would around relationship we progress. difficult to extremely biosimulation

nothing come three yet. they before proceeding, product. take So years investing report out to said I two with these to tend but in we are things a mean, to as it and before, we

cool So come pretty give think and time bit see it out little something there. a I we'll of

Operator

turn in I William not now to further conference the showing to And I'm back like closing any questions the would queue. Feehery remarks. for

William Feehery

growing believe value XXXX regulatory and profitable. All core to hiccup the quite business, wanted much, say Certara think thank we the is The very it had, we company end It's recovering in right. simulation we before overall is quite we and is the I well we business that despite business that that you to Well, go through it great. forward. proceeding as Victor. add will just

that We integrated the to successful all hit really hit goals really, integrating of our into lot a we software been which that group, expected a has We and we in Pinnacle different in extremely have team us benefited software gained XX. great ways.

And so overall, much. Thank situation exciting you is as in head you I XXXX, forward a the into to very call. think we company talking to look and in we next really the

Operator

call. for today's you conference concludes This participating. Thank

disconnect. day. a great now Everyone, You may have

Certara (CERT) 1 Mar 232022 Q4 Earnings call transcript