SLP - NASDAQ

Simulations Plus, Inc.

Simulations Plus, Inc.

SLP·NASDAQ

$16.17

-3.6%
HealthcareMedical - Healthcare Information Services

Simulations Plus, Inc. develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. It operates through four segments: Simulations Plus, Cognigen, DILIsym, and Lixoft. The company offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products. It also provides products based on mechanistic and mathematical models, such as DILIsym, a quantitative systems pharmacology software; NAFLDsym; IPFsym; RENAsym; and MITOsym. In addition, the company provides Absorption, Distribution, Metabolism, Excretion, and Toxicity Predictor for chemistry-based computer program that takes molecular structures as inputs and predicts their properties; and MedChem Designer, as well as modeling and simulation products comprising MonolixSuite and PKPlus. Further, it provides population modeling and simulation contract research services; training and consulting services designed to accelerate pharmacometrics studies; and clinical-pharmacology-based consulting services in support of regulatory submissions. The company serves pharmaceutical, biotechnology, agrochemical, cosmetics, and food companies, as well as academic and regulatory agencies. Simulations Plus, Inc. was incorporated in 1996 and is headquartered in Lancaster, California.

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At a Glance

Live Snapshot
Market Cap$326.72M
EPS-3.2200
P/E Ratio-5.02
Earnings Date07/13/2026

Earnings Call Transcript

SLP • 2025 • Q2

Operator
Greetings, and welcome to the Simulations Plus Second Quarter Fiscal 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief -- a question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded. It is now my pleasure to introduce, Lisa Fortuna from Financial Profile. Ms. Fortuna, you may now begin.
Operator
Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] And our first question comes from David Larsen with BTIG. Please proceed with your question.
David Larsen
Hi. Congratulations on the good quarter. Can you maybe just talk a little bit about the software organic revenue growth and the fee renewal rate declined to 90% from 94%. Just -- I guess, what would the organic revenue growth rate for software have been had that account renewed this quarter? Thanks.
Will Frederick
Yeah. Thanks, Dave. The software organic growth was good this quarter, 8% from an organic basis, excluding the Pro-ficiency software contribution. The renewal rate, we lost a few points down to 90% renewal rate, on fees related to one large account that was renewed in the week subsequent to the end of the quarter. That was a six-digit renewal and you can sort of extrapolate from there.
Operator
Thank you. And our next question comes from Scott Schoenhaus with KeyBanc Capital Markets. Please proceed.
Scott Schoenhaus
Thank you.
Operator
Thank you. And our next question comes from Matt Hewitt with Craig-Hallum. Please proceed with your question.
Matt Hewitt
Got it. All right. Thank you very much.
Operator
And our next question comes from Max Smock with William Blair. Please proceed with your question.
Operator
Thank you. And our next question comes from Jeff Garro with Stephens. Please proceed.
Operator
And our next question comes from Constantine Davies with Citizen. Please proceed with your question.
Will Frederick
Yeah. You are spot on. It's timing of conferences and when they occur in the year. So it's usually a little bit low in Q1 when we were running 15% of revenue for sales and marketing, and this quarter, 17% just conference timing.
Constantine Davies
Got it. That makes sense. And then lastly, Will, I heard you kind of reaffirm that 35% to 40% margin objective. And I guess, how much of that is dependent on an inflection in the macro environment? That is to say, if you can kind of keep grinding out this level of organic growth, is that something that's within reach in the next year or so? Or does it again really hinge upon the macro factors kind of changing a bit?
Will Frederick
Yeah. I'll jump in there. Yeah. We've operated at that level in the past, and that's our objective to get to it, at whatever revenue growth level we're looking at, its achievement is contributed to by both and revenue growth levels, but more significantly by management in terms of our costs. Our costs in capacity -- matching capacity to top line service revenues, improvements that we're making in terms of the service organization overall, their use of AI. As an example, the impact in terms of the advancement of AI tools and the development of the Pro-ficiency training modules. All of these come together to contribute and really the bigger drivers on the expense side, not necessarily on the revenue side.
Operator
Thank you. And our next question comes Francois Brisebois with Oppenheimer. Please proceed with your question.
Transcript from April 3, 2025

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