Simulations Plus (SLP) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 18% year-over-year to $70 million, with organic growth at 14%, and diluted EPS of $0.49, matching the prior year; adjusted diluted EPS was $0.53.

• Fourth quarter revenue increased 19% to $18.7 million, with diluted EPS of $0.04 and adjusted diluted EPS of $0.06.

• Major software upgrades and the integration of Immunetrics and Pro-ficiency acquisitions strengthened the product suite and market position.

• Pro-ficiency acquisition doubled total addressable market to $8 billion and is expected to accelerate growth and expand offerings.

• Backlog at year-end was $14.1 million, down from $19.5 million the prior year, due to slippage of bookings into Q1FY25.

Financial highlights

• Software revenue for fiscal 2024 increased 12% to $41 million (59% of total), while services revenue rose 26% to $29 million (41% of total).

• Gross margin for the year was 62% (software: 84%, services: 30%), down from 80% in FY23.

• Adjusted EBITDA for fiscal 2024 was $20.3 million (29% margin), down from $20.6 million (35%) in 2023.

• Net income for the year was $10 million (14% of revenue); Q4 net income was $0.8 million.

• Year-end cash and investments totaled $20.3 million, with no debt; cash declined due to acquisition spending.

Outlook and guidance

• Fiscal 2025 revenue guidance: $90–$93 million (28%–33% growth), with software mix 55%–60%.

• Organic growth expected at 10%–15%; Pro-ficiency to contribute $15–$18 million.

• Adjusted EBITDA margin guidance: 31%–33%; adjusted diluted EPS: $1.07–$1.20.

• Effective tax rate expected at 23%–25% for 2025.