CERT - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to the Certara First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. Please be advised that today's conference is being recorded.

to David conference Deuchler. like first to now today, speaker would hand over the your I

David Deuchler

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

On XX, today, Certara Feehery, financial results have John Certara, quarter Chief released the ended the Officer; March Gallagher, Earlier Executive and William Officer. Financial for call from XXXX. Chief we

company's A the release press copy is website. of available on the

Relations and will actual like statements. make I X may in we would to include can for remind website. materials forward-looking that implied that begin, information, the in from statements during statements Please materially find Which management results this differ Investor Slide or those you call Before the you on company additional refer expressed to forward-looking the company's

is information. and contains new except XXXX. whether information, disclaims required revise otherwise. and or obligation, This or the call may to as of and financial management release remarks earnings broadcast their in most mention law, only non-GAAP measures the questions, in to company May Reconciliations materials update time-sensitive available by measures. conference forward-looking Certara any the to the comparable information projections financial X, or as website. additional to responses today, available recent because tables non-GAAP directly of are financial Please for reconciliation the these refer of company's the live press on measures some accurate GAAP statements, future In events

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

William Feehery

currency remarks, we take the Certara business David. first strong, ] the just with a joining interest and built year, our and [ AI-enhanced Throughout delivering will in has $XX.X remained We're products continues with Certara's Customer quarter then of first the X% growth reported Good earnings year of following quarter the you will million prepared John you, upon while the and pleased afternoon, services to fourth for over I of for biosimulation VASA ago. questions. of revenue software in of representing to growth quarter, solid Thank grow XXXX. call. total start mentorserved your constant X%. start our demand our Thank everyone. and acquisition

look efficiency project ways Certara's top and exciting of developers and and drug for accelerate services pipeline products time increase to As mind. lines, new remain

time in have positive We the Sentiment been Considering shift around towards this across optimistic have R&D activity allowed biotech our all to will initiatives. companies we is back end more recover customer markets encouraged constructive has far to optimistic are becoming of that project lines by Conversations become funding and trial our trends so their and more clinical capital spending industry around continue X XXXX. priorities raising tiers. pipeline smaller recent as throughout developments, year. cautiously

at for funding point take sales inflection focus and will through However, of drive translate growth. time and it into activity months in next that will several we yet the key our Certara's to year. Certara, have of not initiatives Internally, stage several on remains first bookings an seen the

and investments commercial reach the XXXX targeting we we our are and last our On highlighted including expanding biosimulation earnings our improving infrastructure capabilities. call, in software of the

entire to improvements. and customers. that our underway Investments to integrates and and platform, organization, the applications. software easier and Cloud to Cloud and platform drive Certara X,XXX to to capabilities unifying software across with to workflows. across collaboration we will user's Which are success the internally organization data Certara navigate other our of like Cloud XX a ease different is We security designed Last Cloud, top externally. client-specific strong portals alongside of are suite Certara enabling initiatives make external information Certara already used unifying by dedicated parties, companies. Improve each currently and has XX commercial will launched deliver biopharmaceutical Certara enhanced access product access both our solutions month,

we I our am year. work proud throughout the forward to so you progress updating have of the accomplished far look further on and

the Phoenix during improve immediate million, revenues. run With the first cloud make cloud-based the access In is Pinnacle and growth. of software a quarter delivered of customers platforms, into Growth quarter, turning Simcyp, reported of Customers and and software focus Now will workflow the was driven of quarter currency upgrades, revenue remote and integrated area up to have to from Phoenix XX% computing performance processing was of version representing the business. in our the majority constant One the converting we posted, product. by our to licenses which Phoenix Phoenix performance XX XX% growth industry-leading which $XX.X times.

Customer version The accelerate of submissions. and uptake versions regulatory our drive machine the at nicely, by to progress and end efficiencies early projects. internal writing across continued to AI and significant processes, writing on the learning we we co-author, that the team used our quarter, second team and from development officially began feedback regulatory quarter Over Co-Author be to of regulatory customer Co-Author time, the pleased different will next customers. have have received the also by tool date. drive launched received interest are will a regulatory we to writing uses are software Throughout of

first currency reported quarter, segment a in on the $XX.X flat on and which Our basis. technology-driven basis year-over-year a was delivered services million revenue of constant

for ability recent year, new the cautious services to biosimulation remained markets we the with Customer August. We leading enhanced last approach both of conversations and improvement be activity Our believe but few as have we period constructive been and we we remain made in of customers our of prospective could by continues projects. engagements. stable strength continue encouraged In across spending has a capital regulatory the identify to biotech and services has by changes first in indicator patient a new that months organizational group. customer XXXX. discussions have deals business been customer close following we recover Certara's to services

strong by grow in recovery conclusion, to XXXX, line a a in is strength position services In continued software in in business. and our in Vitara

capabilities uncover biosimulation, our the as making use. look to and our new progress we goals We I you products footprint throughout forward are ability in also investing XXXX to for to confident updating to meet easier I'm year. our expand and while commercial our

will turn things to I financial performance. now over to John discuss our

John Gallagher

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

a the Software by quarter revenue from of biosimulation period. constant accounted prior software XX% year in a for driven first XX% growth increased and basis $XX.X quarter, period basis. subscription the Up XX% Pinnacle The was in Ratable and in and on quarter software over revenues. was year prior which on the reported XX% XX. million first the revenue currency

Up Software bookings bookings Trailing million, $XX.X were our period. is $XXX.X was year the the XX-month and million profile. year-over-year. long-term were rate first the the from growth XXX% first in software retention with software quarter, consistent prior In which quarter, increased XX% which X% net

currency versus to turning on the basis which reported in Now prior a flat revenue, on services and a was the basis. constant million first period year $XX.X quarter,

in compared million, services a XX% Our year. customers. $XXX spending from continues quarter increase for bookings bookings the a the were of The expenses, cost $XX.X the increase which of first our year due of the period quarter $X.X stock-based was employee-related and decreased $X.X $XX.X Total increase following services $XX.X revenue quarter software to in were from Trailing million, to XXXX. XXXX amortization. million cautious $X.X to Also million a for an a as XX% million XX-month prior increase first Technology-driven down million, in of in period. primarily prior business the million compensation first recover services among

$XX.X increase $XX of first $XX.X XXXX. operating million in million million, employee-related increase in $X.X the the increase follows: XXXX expenses compared is million $X first Sales of to components expenses An and for are expenses due The from 'XX. primarily to million quarter the of operating expenses quarter Total in marketing the in were This first as grew of million expenses The quarter a million quarter $XX.X $X.X were due force. expenses quarter team first costs first R&D $XX to of we G&A of to compared $XX a increase employee-related XXXX. software due of of our million expenses for up expansion sales the million were to to million the the primarily compared were developers. for as XXXX. $X R&D were

quarter interest the of $X.X was higher million $X.X the compared due a with was Income compensation. related the Intangible first rate quarter of the to asset The on due $X.X $XX.X million, million Depreciation million [ XXXX, in an quarter $X.X income expense was down amortization of million consideration to of $X.X XXXX. the our portion in was contingent Vista Miscellaneous ] decrease benefit change floating $X.X on of of by million was million return increase first increase a $X.X quarter $X.X the $XX.X the our last million XXXX stock-based of invested. to to compared $X.X to in compared expenses, first expense cash P&L. tax term million first million for compared million offset million year. primarily Continuing partially loan. to to acquisition primarily expense a of in employee-related $X.X and XXXX. a for related to the amortization in flat Interest was

adjusted million the to first income million Net $X.XX for income Reported the of the of . Diluted for adjusted compared for $XX.X the first EBITDA quarter of XXXX in compared loss $X.X share quarter the XXXX. for compared first of of was was first $X.XX XXXX for earnings for per EBITDA was XXXX. Adjusted XXXX. first year. share XXXX. Reported of $X.X the quarter was compared of per first last of quarter Adjusted net $X.XX XXXX margin in first XXXX quarter first quarter first net quarter for was $X.XX $XX.X first the of million first of $XX.X the the million the XXXX of $XX.X to compared million for diluted per the for share quarter XXXX. quarter XX% to to to quarter earnings quarter was loss of of million

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

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

million, XX% the million our for as are $XXX year representing in of full revenue range XXXX. growth the X% total $XXX to compared of We guidance to XXXX with expect We reiterating follows:

grow a basis in EBITDA to XX% expect expect in adjusted XXXX on margin of EBITDA XX%. range dollar figure adjusted and to the We

EPS adjusted XX%. We $X.XX XX% $XXX of the in per expect to $X.XX million of the to range million, rate in shares $XXX diluted tax of to and fully the the range in range share,

turn remarks. closing now for call William Ferry will CEO, to our the I back over

William Feehery

to executing To our message XXXX first Thank you, results, pleased we goals. our forward John. our with summarize we are look quarter and today,

lot We to Certara innovative about a have biosimulation we at forward with our advance technology. as be excited

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

Operator

Jefferies. Our from Instructions] David [Operator comes question at Windley first

David Windley

launch. I mentioned I XX top more those already biopharmas neighborhood start wondered on a Bill, detail client you question mentioned then And a established little top of that in wanted with something the could maybe XX in to X,XXX you that. the cloud describe that you've -- add you if or biopharma. portals to think again,

proceeding wondering with So or uptake it how skewed uptake matches your smaller is larger more expectations? whether your board? clients and And I'm the just across the to basically or is that how

William Feehery

the Thanks, Appreciate Great. David. question.

into suite Certara of our next would I first true it's well, Certara the a our Cloud the products towards step say, is step, software -- making So platform.

setting we're how that you so products. what launches access we're is up of That is them. new our So doing this

answer we access software. ones make everything directly, operational see increase and who of that's out today, out customers only out smaller some releases to starting started that sure the a pointed you'll to and and quite the to of larger started really with are it come way naturally We ones. obviously, was products migrating as as that where we that the just out, you then as so -- we forward go -- And number we've will to to have, use question your new been

modules the should of to couple platform. a because it across a this year. to our has go pretty reuse of We're it we as promote way accelerate One is excited But software through about certain it's us. advantages

once and we So writing functionality products. every this our also, We're more for unite all across getting our we every have, of of -- of best-in-class them. and write piece products. us easily we them use instead enables can to share them look our to the also data a product between can of And feel

and in, can log good when also from in have with that they some it's which marketing and which So standpoint. we have have products companies probably products they advantages they have, them terms conversation a good see of could

we're of it's next and software from evolution our uptake excited as pointed the a So our customers. about it. of It's good kind out, -- got pretty you

David Windley

as more other products, out I that economics and are you, capabilities Simcyp, inflationary that versioned -- for every and be On bit a in to versioning, else believe little a that if probably you of that, year change? types and drives follow-up price, you that regularly those on -- maybe you've I Simcyp but believe add economics to Or get cloud-hosted products? I the will nothing the do calling same versioning just believe going

William Feehery

Yes.

have version you launched -- So a pointed out, we we year. as Simcyp, new every

bit different. it's other Some little ones, a

to Phoenix, we're X-month every moving example, cycle. For an

think reason one we'll people might pressure Not X I of months, that. terms a So they'll to every sort but not advantage the an there's increasing do X-month maybe to has and certainly additional upgrade. an in features -- economics there's be with everybody cycle, of do see our to each

lot the of move those we think of projects customers go terms of become can and have share we expensive has less partly a cloud, this desktop with onerous ourselves of In with that economics when to validation as had because them. lot to the the we could to we work this, a our a installations, software do do and lot through I of

we hope foster updates more that we'll And as well. will that so also frequent -- get also

David Windley

confirm I just guidance believe, the more the inorganic was about half me. could modeling it. XX% would the for growth. your thinking? That that's quarter? could coming guidance than could that was it your inorganically. Got in that, organically half on I one your versus less contribution wondered midpoint, revenue organic that you than little And to on at And still And our points a more if break little of out I you if be first ask the

John Gallagher

David. Yes,

a that X% we the of of that we on there'd put a put put we're part story the said as in we first revenue quarter, by on be business. year way. side, up services the the guidance, said related So or guidance, when first the we And and ramp second first to when But confident half growth. part the we of half, a out, that that the out into bit later still

that case. anticipate still we the So to be

On few in hundred came QX so And expectations. to the basis, points organic the line growth a deals with the contributed basis our an in quarter.

Operator

comes question next Our from Jeff Garro from Stephens.

Jeffrey Garro

you on me there. services other bookings for couple a the timing Maybe results and impact cited some bookings quarter. had services on the trends in

wanted services has you how had since comments the closed any visibility quarter to on I ask bookings to if trended into So start.

John Gallagher

so the experience On some was on did on more but timing Yes. bookings, on was bookings, actually we it services software side side. the than services it

we come were concerns some deals for about had bookings in it. and that in have software April, and those scheduled Pinnacle some ended So timing have don't large March up coming on any that

on the story though, a Tier question, is side, to more Xs, there the tough compare. services of it's On the your

look you services tough back a -- then we compare XXXX side, if very of on have bookings large so So a services there's QX the and at there.

look you business though, recovering. at the As then tiers, other is the still

So our in place. recovery still is

in look we're last at the X from you were where of sort what year. we Tier is of bookings when then Tier stability seeing and So half X second

and the bookings were if on to dollar then with of look what at basis you look expecting now line QX QX and case So kind in are there. at services be a QX we

little playing dollars as achievement, out then one a levels. Tier from back a rate, Tier we X with their Tier it's of and the growth still perspective pressuring X or It's is bit and a historic Xs, so -- -- expected on So but comp tough the to not

Jeffrey Garro

improvement expect How services to the granularity a like of appreciate revenue sequential for front the I about half of conversion on deeper maybe comment probe converting here? here more looking little story represent think velocity to nice the quarter. first quarter perspective? bookings we execution Or the growth. should from, we there backlog bit kind mention year. revenue revenue or a on conversion on fiscal earlier to versus trailing services half on a your second services of for XX-month customer Should in It looked first things right say, from bookings the kind on that at does first

John Gallagher

Right. Yes.

So as far we're conversion. look, I expectations. our It's conversion, mean, pleased on as then with the

playing last from unusual it And not the we played it we plan an bookings backlog, say but thought So over converting is left conversion, as backlog would those. have revenue year. out meaning there's I'd of as with we We're out some anticipated. amount

As forward We We and the we we're to potential on the that's QX getting the it it's bookings haven't of it in the the important that to And QX. the if don't [ more in as out yet. excited -- funding that see ] of biotech seen our fact and environment haven't we're we prepared don't funded, remarks, customers excited are half us, in inflection the back in about see note play and you the that bookings seeing. reached we mentioned for or going are bookings look it's definitely some but to in be what about Bill really are year, to going and so point. in date customers

Operator

from question comes at Sergott Our Barclays. Luke next

Luke Sergott

the contribution year? follow David in any to talked to as and more to expecting specific on And the get those for changes to was you're segment wanted then what's of kind M&A about, bit guidance, little just that And there. I Great. each what in what up embedded a quarter? the

John Gallagher

when We're have our was QX than less X% M&A. The the No. line and that expectations. -- it's out bookings no look played in related to at of guidance, with we M&A The bookings, contribution in you confident range changes there.

earlier, growth a it's that basis. there X% of software services on a not material hundred revenue points. I was you So out at amount. really a then basis as then contribution few And our when mentioned we reported split haven't But look a

Luke Sergott

the softer Okay. business thinking about a then And piece, I the quite then up. guess second we're the have about kind you on we've half, services of figure you're while. kind talking half that But the Is here guidance, as And be I catch that regulatory seen the understand half what -- for in softer to in just to out quarter. you second bookings little that I'm recovery? had when the a bake first ramp first services visibility of trying side? on

John Gallagher

mean, the gaining Tier customer in We as year. saw categories the the well key services, that continue we aspect we of as I a in so biotech last to we saw from in way, the Well, bookings second range, we stability, are the what end we regulatory inflection that with is commercial do. Do might half basis. we put saw the year. we of was then play the that the markets, of business the of second the see really quarter, the targeting To in companies them see any which year. funding that the last due for those half a get meanwhile notion going by especially need any are stability? targeting out would dynamics funding out capital impacted same And on the there. biosim what by be X it together results are X Services, be and to point higher be guidance to in Tier our those that are But to activities and the to we of is again,

yet. see We see we that decline, hit and inflection don't that. about happy point but continued haven't acceleration We're don't also

Operator

comes Ryskin Our from next BofA. question Michael

Michael Ryskin

the basis, or was back a I want to the a quarter. out elevated in it it's called on percent I in only the services basis, to know but elevated strong of Great. year. times X% comp couple mean I the on bookings go you I last dollars up bookings think the

bit look parse of year, XQ to is million, be at to year. the little seasonality out million the put -- it's trying in expect rest just $XX the a So last million another on $XX little services way, different? and I that Or $XX bookings, if a then bit $XX on million,

of bookings pretty seasonality a through bookings of Are year. So trying step spread it's just XX-month big to there? tough talk that revenue of then with, of know sort year. to ramping ahead you I about but this with bit the X.X growth rest growth and expecting book-to-bill reconcile the said, a you in trailing little and like a down more expectations time, the some steady out

John Gallagher

Mike. Yes,

see what we do QX So lower that's see is we typically QX. a -- typically than

think especially out seasonality that continue So typical there's that has. has given point, that, that to to your not it no the not typical end market changed, that play environment that way there's reason seasonality -- the and really seasonality then wouldn't to

the So best that's indication we that probably give. can

ahead. Sorry, go

Michael Ryskin

was step I clarify, was just $XX sharp to to say, very going step down, No, yes, million. to a a there year, $XX last million down but usually there's from

to say year, a of was about down last step . less in just year, think safe think and XQ elevated it just dollar to I [indiscernible] trying I'm terms. services is that you then this expect

John Gallagher

recovery point The and answer down was yes. we year some stability. from unusual. that that then to saw The last forward, And step is

we into then we with because down out to level saw that of QX in saw step-down. And what our other say And some a I happened last here anticipate May, anticipate don't large you of so unusually step line into we'd though do QX, we QX once we year, we seasonality and now has sitting would of that level was see expectations. started even years at in played see acceleration we versus what recovery XXXX there, in some

Michael Ryskin

of [indiscernible]. Okay. sort just And then the

John Gallagher

that, to or before typical you we XXXX, to years seasonality. look guess, point XXXX, at of if is thing that's to other really, look then XXXX add at if you would I more The as the what sort

Michael Ryskin

[ it the think the be then last months, of ] of book-to-bill, trailing the X.XX that of XX this I of years, was enough. second Fair And would more part the of in X.X on for using prior it's [ [ year, most $X.XX catching [ it just last [ saw years. up the that Is that been of a back to X exit bit as to it's I year? the is year? to ]. little sort softer is fair say ] that then, ], was I you X. right. question All mean $X.X you sort into than it in lower like prior sort quarter Okay. the like bookings the guess, expect ].And range we reaccelerate

John Gallagher

Yes, over we time, end it's -- customer some the behavior do as but acceleration of market to expect recover see we need well.

keep exited we , X.X. -- year were X.X of year, have the We [ mind, QX in and we at -- last in at where ]

to continue customers. we spot X/X the yet an market seen we haven't at as inflection a point end in that So be

William Feehery

I Michael, So bit. talking little about you're think a software

our actually QX, bookings April. than bit in were did less had a in we those. So software get we little bookings expected move We because some

[indiscernible] we're that confident what bookings appropriate in giving our . for pretty feeling the are you we're So outlook for the

Operator

from Smock at comes question next William Our Max Blair.

Max Smock

in growth, here, year, I total. wanted our those implies $X which digits quarter think based And million around mid-single model on in something I said total to for XXXX missed businesses X% implies are talked I on X to bookings. question this contributing in acquired into $XX recently in might think million in around you the bookings here. I coming revenue which about Lukes follow of earlier have total, you inorganic total inorganic bookings, about about And but up

bookings recent contribution be, And it would from that were mid-single-digit your $X my organic So still earlier XXXX follow-up are with in as as small expectations? was in I year? line in acquisitions number, confident you that this guess in then given the million bookings you

John Gallagher

Yes. yes. Max,

your we So to. the to out it as play question, first did expected quarter, are we --

huge QX in expect the of to not So accelerate contribution closure from the a move deal. bookings companies as year. acquired We'd from the we that the

thought. organic as with we're the say still I'd QX that then we and reported message that guidance So played both And we the confident in ranges. the out gave

Max Smock

here. budget on plus one maybe then And Understood.

So you their had to some last you came necessarily budget that their year, hadn't clients had budget to spent either. but cut

there at benefit end some had of you year. the So the

this conversations not flush year, for your very occur sounds that that of things to at what would necessarily but And Just results translate on it year, orders. reiterated your the like wondering, last to guide XXXX into getting think for today? year? potential relative you've about you far Similar based this to that How end you better budget do what saw so the mean are the

John Gallagher

Well, guide, other quarters I'd and think some the of on part in is QX than bookings seasonality, our the dynamic, we seasonality did our that flush anticipate makes budget that typically the which stronger I year. of as tell you that well. that, put year case case. that of the QX would did we the we that as we saw together plan in our years We did be last in anticipate be prior as

that is see business in a the in we the somewhat we've seen So what's the anticipation tonality typical range into the guidance past. that cooked

Operator

Steve question Our at next Dechert KeyBanc. from comes

Unknown Analyst

in real business? on is expansion increase seeing more your then provide can color nice the in in first your of you -- revenues software bookings there in higher-margin revenues? software more the a And you're was an you didn't certain and the strength see given software With quarter, margins your

John Gallagher

Yes, sure.

quarter XXX%. So we're XX%. growth pleased. retention was in software -- The net ratio the was

continue So pleased saw year, we're accelerate the and we were with continued We spot exited last QX. the by good into software in that a as we execution and team

of to full quarter, our by including is closed QX, far range impacted while and year that As And was X margin about as the companies was the just XXX EBITDA guidance basis in we we XX% points the on a XX% in that concerned it margin. had below adjusted December. XX.X% acquired margin newly

some dynamics that margin that, would during then tell I you software work offset achievement through a some we're by expecting been with is that partially typical Then So the I'd through quarter as described. the we margin. And But lift. just fell of the have what

Operator

next Cal comes Cruise question from Our UBS. at

Unknown Analyst

we employee with if sounded of also Maybe the in increase bit It could a cost more lot dive into like expenses. additional was a associated little the margins.

how impact acquisitions on in should playing hiring. detail out So maybe the think mind keeping year, provide of more the if we the and throughout rest of you about margins could

John Gallagher

Right.

margin guidance the just full year on mentioned, So is as XX.X%. is to quarter, XX% XX% I

primarily the it's well, we're up. to range, X moment. year come closed below were QX. is But I'll integrating a because X in So just the still -- in you saw that full things. deals that that we One, expenses

in bit that pressured there. we continue we So margin finalize the will integrations resolve think that a as and and QX,

what you're The about or increases, they is other as though, investments asking about cost thing, you're asking are investments.

business around XXXX. on the investing we we're executing our of in So that out And course, during plan laid plan.

a was and to was marketing in product it our team developers areas. was continue programs, which sales to software including in was offerings. expanding that our and force sales embedding software of enhance and AI all X to our R&D As in It the reminder, in investments centered adding investments

of -- quarter, the So in continue to during out that and what is you see see year. course the you'll those the playing investments

the to deal. is will periods. half asked typical higher the company integration dynamic back You help first about second look you be when in And We do accretion for that in well margin will the revenue the I and at the margin as margin year as that finalizing progression. anticipate, half, than earlier, mentioned drive which as some that acceleration prior on to

Operator

As David at Lebowitz the team, JMP. Citizens

Unknown Analyst

timing translate relative in Or experienced you've when I you what surprised first quick will are picks this, yet? activity. I'm in we wondering, fairly saw aren't to of into I up inflecting fairly prior the be pretty just terms a you backdrop to cycles normal bookings? funding the significant funding and funding double between when you might guess, it seeing just think spike the is wanted that quarter quickly into

William Feehery

that the read from It it what takes optimistic start we of bookings get we've half. immediate see half us, typically to question. just think Yes. funding. from second before indicated increase for We to Thanks is really Yes. an first expect didn't several the started the and for that a in to No, through into started typically months February we're in we will March. bit more kind little and why which moved

John Gallagher

in not the any to We standpoint in tailwinds to not year. a clear, funding too, for the the stability included are the But guidance. -- be guided related from environment the

Unknown Analyst

terms whether sort guess you want made to us know I sense I force Got the year in some attach rates of some rates sales of I'm much follow-up those like changes this measures, or out? And kind what the sales the on the of last on some else a or and scale a of it's where are and with then win stands anything Can then structure to you year? you'd investments. that how it. early it force. you of returns wondering And how the just call of you organize currently give

William Feehery

across than we typically last So of buying more are sell organization from could we some year, that who Certara products commercial one. so we -- all yes, made our to our changes to customers

products we a and we efficient -- way effectively So our more and process. with bigger range it's well we fairly work cross-sell, particularly of would a where efficient a services, of people call in of that the billable taking of tasking because -- expensive cross time you more in we sales the more had belief were still that become them seller-doer and more technical model away reaching also buying would what lot was over customers them we see terms but from as are

in an pleased we the would done We're some I just of We've the we're do more to full and we're X that covering still we've last the appropriate sales and we've opportunity, there's started in solid said, lot taken we've just to how really to some I that into But of accounts key how products. but I been a on gotten probably training with Stars see don't think on say entire side the over ahead think territories there. there's far at that like of So the quarter. because started first salespeople to I terms of -- of strength And further the a what professionalize we in account range force world of software done terms the earlier. quarters to that assigning this, sales bit we're benefits go. fully very

the right it team is more we're we'll of and as we even through year that together So move some than now. pull see kind benefits -- further

Operator

from question comes next Our at Morgan Purohit Vikram Stanley.

Unknown Analyst

is on [indiscernible] Vikram. for This

and with is so you question for XQ guidance what bookend think XXXX. revenue that We the EPS have the of now, drives X behind you do

John Gallagher

with guidance the out So our in year plan. QX the line remains and on same. the expectations played our

guidance laid So that had of intact. organic -- an growth was we the basis, digit is reported remains revenue out XX% before, which X% to mid-single on

we're we've about the dollars margin the growing XX% and would year committed to course, bit is land EBITDA to range. that on the in The other margin of piece of the a XX% talked that,

this changed the To -- the were we end end. we're in from really end low you're what be here, point. to some need which what you think is the nothing saying the higher, seeing, I you to lower what clear. deterioration get So would to If takes takes has markets. we that not

talk to and of last stability that. QX lot now So in see QX of about we continued a through year XXXX. QX, We've

high not now, meaning range, the of end for but what Xs that's deterioration get see need seeing that the spot we to get in and the some we seeing from where acceleration. would see is as To really we're need then that. Tier some are X out, So that of range, X to to well. to not and end to as to playing Tier bottom We're need we matter the the Tier would and happen

that not any -- that's baked the not of our funding notion biotech the environment, have to guidance. we our in mentioned, into related I benefit As guidance.

many we thanks of If the to end would to And on acceleration, of start it. too to continue side with some pleased range. there, higher to if products if continue the see the we very has the we benefit been that see we're end the range. to would new higher So our start take end to acceleration, take been really offering more software get software solid. obviously, that it the start to us We've performance us to

Operator

showing back it to am closing turn like for would now time. I no questions this at I remarks. further Bill the call to over

William Feehery

happen we very reporting Thanks. we for and end of everybody, rest lot joining same We the in to year. of the tonight. as quarter remain you, had -- things quarter, at at We said, the Thank this forward look place. good the optimistic for the of time, a us same we

Operator

conclude Thank you program. in the your does conference. This for participation today's

may You now disconnect.

Certara (CERT) 7 May 242024 Q1 Earnings call transcript