Simulations Plus Inc (NASDAQ:SLP), a leading provider of cheminformatics, biosimulation, simulation-enabled performance and intelligence solutions, and medical communications to the biopharma industry, stock rose 8.67% (As on April 4, 11:21:28 AM UTC-4, Source: Google Finance) after the company surpasses analysts’ expectations for the second quarter of FY25. The software revenue rose 16%, driven by outstanding execution across all of the software platforms. Leading growth this quarter, the Quantitative Systems Pharmacology (QSP) business unit expanded 89%, primarily driven by the addition of a model license in the disease area of atopic dermatitis. Further, the Cheminformatics revenues increased by 8%, while the Clinical Pharmacology & Pharmacometrics (CPP) business unit posted a 9% revenue increase. Services revenue for the second fiscal quarter grew 34%, with notable strength in the Medical Communications (MC) business unit. Services bookings in the CPP and MC business units were exceptional contributors to the 13% year-over-year increase in the backlog, which ended the quarter at $20.4 million. For the quarter, gross profit was $13.1 million; gross margin was 59%. Adjusted EBITDA of $6.6 million, representing 29% of total revenue, compared to $7.1 million, representing 39% of total revenue, Adjusted net income of $6.2 million compared to adjusted net income of $6.4 million
SLP in the second quarter of FY25 has reported the adjusted earnings per share of 31 cents, beating the analysts’ estimates for the adjusted earnings per share of 25 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 23 percent to $22.43 million in the second quarter of FY25, beating the analysts’ estimates for revenue by 3.11%.
For fiscal year 2025, Simulations Plus projects total revenue between $90 million and $93 million versus the analyst consensus of $90.40 million, with an adjusted EPS range expected to be in the range of $1.07 to $1.20, versus the analyst consensus of $1.09. The company expects continued growth in its software segment, which is anticipated to contribute 55-60% of total revenue.
Meanwhile, SLP has announced that it has entered a new funded collaboration with the Enabling Technologies Consortium (ETC). This partnership is aimed at advancing in vitro-in vivo correlation (IVIVC) approaches for oral drug delivery and expanding the functionality of the GastroPlus platform. The collaboration focuses on enhancing the predictive capabilities of the GastroPlus advanced compartmental absorption and transit (ACAT™) model to support the development of immediate release (IR) oral drug products.