Simulations Plus Inc (NASDAQ:SLP) stock plunges 14.37% (As on January 8, 11:19:01 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 25. Adjusted EBITDA of $4.5 million, representing 24% of total revenue, compared to $3.4 million, representing 23% of total revenue. Adjusted net income of $3.4 million, compared to adjusted net income of $3.7 million Software revenue increased 41% to $10.7 million, representing 57% of total revenue. Services revenue increased 19% to $8.2 million, representing 43% of total revenue. There were some client-driven data delays that postponed the ramp up of certain projects into the fiscal year second quarter. The company is pleased to see that this quarter’s bookings were especially strong in the Clinical Pharmacology & Pharmacometrics (CPP) and Medical Communications (MC) business units. The company delivered 41% growth across the software platforms.  MonolixSuite was a meaningful contributor with a 43% growth rate this quarter.  The company is seeing increased adoption for this leading edge solution including a recent commitment from a major pharmaceutical client to fully implement PKanalix, which is the user-friendly and fast application for compartmental analysis, non-compartmental analysis, and bioequivalence studies component of MonolixSuite.  Additionally, the company saw 40% growth in the Quantitative Systems Pharmacology (QSP) business unit with strong demand for model licenses in the disease areas of Psoriatic Arthritis and Crohn’s Disease.

Moreover, the company delivered solid results despite ongoing funding challenges and cost constraints in the pharma and biotech sectors. The integration of the Adaptive Learning and Insights (ALI) and MC business units is progressing well. For fiscal 2025, the company expects momentum to be strongest in the back half of the year, which puts the company on track to meet the stated guidance

SLP in the first quarter of FY 25 has reported the adjusted earnings per share of 17 cents, missing the analysts’ estimates for the adjusted earnings per share of 18 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 31 percent to $18.9 million in the first quarter of FY 25, beating the analysts’ estimates for revenue of $18.7 million. The company posted gross profit of $10.2 million and gross margin was 54%.

Simulations Plus expects full-year earnings in the range of $1.07 to $1.20 per share versus the analyst consensus of $1.09, with revenue in the range of $90 million to $93 million, versus the analyst consensus of $90.72M.