Certara Reports Third Quarter 2024 Financial Results

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Certara
Certara

Updates Full Year 2024 Financial Guidance

RADNOR, Pa., Nov. 06, 2024 (GLOBE NEWSWIRE) -- Certara, Inc. (Nasdaq: CERT), a global leader in model-informed drug development, today reported its financial results for the third quarter of fiscal year 2024.

Third Quarter Highlights:

  • Revenue was $94.8 million, compared to $85.6 million in the third quarter of 2023, representing growth of 11%.

    • Software revenue was $35.9 million, compared to $31.3 million in the third quarter of 2023, representing growth of 15%.

    • Services revenue was $58.9 million, compared to $54.2 million in the third quarter of 2023, representing growth of 9%.

  • Net loss was $1.4 million, compared to a net loss of $49.0 million in the third quarter of 2023.

    • The $47.6 million increase was primarily due to a $47.0 million decrease in goodwill impairment expense.

  • Adjusted EBITDA was $33.1 million, compared to $28.8 million in the third quarter of 2023, representing growth of 15%.

"Certara’s results demonstrated strength in biosimulation software and services which are the result of our continued investment in biosimulation," said William F. Feehery, Chief Executive Officer. “Following the close of the Chemaxon transaction, we are focused on integrating our software capabilities to generate a best-in-class, lab-to-clinic biosimulation platform."

"We are pleased with the growth in our software business. Our services business was mixed, with biosimulation services growing 13% offset by weaker performance in our regulatory services business. In the second half of the year, we will continue to diligently manage our expense structure to support demand for core biosimulation software and services," said John Gallagher, Chief Financial Officer.

Third Quarter 2024 Results

Total revenue for the third quarter of 2024 was $94.8 million, representing year-over-year growth of 11% on a reported basis and 10% on a constant currency basis. The overall increase in revenue was primarily due to growth in our biosimulation software portfolio. Please see note (1) in the section A Note on Non-GAAP Financial Measures below for more information on constant currency revenue.

Software revenue for the third quarter of 2024 was $35.9 million, representing year-over-year growth of 15% on a reported basis and 14% on a constant currency basis. Software growth was driven by biosimulation software and Pinnacle 21.

Services revenue for the third quarter of 2024 was $58.9 million, representing year-over-year growth of 9% on a reported basis and 8% on a constant currency basis. Services growth was impacted by cautious spending among large biopharma customers.

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