Simulations Plus Inc (SLP) Reports 11% Revenue Increase in Fiscal 2023
Fiscal 2023 revenue increased 11% year-over-year to $59.6 million
Q4 total revenue increased 33% to $15.6 million
Software revenue increased 59% to $9.3 million, representing 60% of total revenue
Net income of $10.0 million and diluted EPS of $0.49 for the full year
Simulations Plus Inc (NASDAQ:SLP), a leading provider of modeling and simulation software and services for pharmaceutical drug discovery and development, released its fourth quarter and fiscal 2023 financial results on October 25, 2023. The company reported a steady increase in revenue, with a year-over-year growth of 11% to $59.6 million for the fiscal year ended August 31, 2023.
Financial Highlights
In the fourth quarter, total revenue increased by 33% to $15.6 million. Software revenue, which accounted for 60% of total revenue, saw a significant increase of 59% to $9.3 million. Services revenue also increased by 8% to $6.3 million, representing 40% of total revenue. The gross profit increased by 35% to $12.3 million, with a gross margin of 78%. The company reported an adjusted EBITDA of $4.9 million, representing 31% of total revenue, and an adjusted EPS of $0.18. Net income for the quarter was $0.5 million, with a diluted EPS of $0.03.
For the full fiscal year, total revenue increased by 11% to $59.6 million. Software revenue increased by 12% to $36.5 million, representing 61% of total revenue. Services revenue increased by 8% to $23.1 million, representing 39% of total revenue. The gross profit increased by 11% to $47.9 million, with a gross margin of 80%. The company reported an adjusted EBITDA of $20.6 million, representing 35% of total revenue, and an adjusted EPS of $0.67. Net income for the year was $10.0 million, with a diluted EPS of $0.49.
Management Commentary
We delivered strong revenue and earnings results for fiscal 2023, marked by our teams impressive execution on building strong customer relationships, said Shawn OConnor, Chief Executive Officer of Simulations Plus. Our ability to drive growth while navigating a challenging environment demonstrates the strength of our customer-centric business model and the effort and dedication of our colleagues throughout the year.
Fiscal 2024 Guidance
For fiscal 2024, Simulations Plus provided revenue guidance of $66 - $69 million, representing a 10-15% increase, and EPS guidance of $0.66 - $0.68.
Dividend Announcement
The company's Board of Directors declared a cash dividend of $0.06 per share of the company's common stock, payable on November 6, 2023, to shareholders of record as of October 30, 2023.
Future Outlook
Simulations Plus enters fiscal 2024 well-positioned for continued growth. The company's market fundamentals are resilient, the pipeline is healthy, profitability is strong, and the balance sheet is sound. The team remains committed to innovative and disciplined growth that delivers long-term returns for shareholders.
Explore the complete 8-K earnings release (here) from Simulations Plus Inc for further details.
This article first appeared on GuruFocus.
