Overview
- Simulations Plus, which reported results Friday, posted $24.3 million in revenue and adjusted earnings of $0.35 per share, topping analyst estimates.
- Management kept full‑year sales guidance at $79 million to $82 million but cut adjusted EPS to $0.75 to $0.85, citing a higher 23% to 25% effective tax rate, and guided Q3 revenue to $20 million to $22 million.
- Software sales rose 9% to $14.6 million and services grew 8% to $9.7 million, while software gross margin reached 89% after lower amortization from a prior impairment.
- Demand signals improved as the services backlog climbed about 18% to $24 million and the top 20 pharma customers kept 100% retention, with most churn concentrated in smaller pre‑commercial biotech firms.
- The company advanced an AI‑driven, cloud modeling strategy through work with three large drugmakers and expects commercialization to matter in fiscal 2027, while shifting to regional account‑based selling to deepen cross‑sell.