Simulations Plus, Inc. (NASDAQ: SLP) has reported its financial results for the third quarter of fiscal 2024, ending May 31, 2024. The company recorded total revenue of $18.5 million, representing a 14% increase compared to the third quarter of the previous year. The software revenue increased by 12%, reaching $11.9 million, while services revenue saw an 18% increase, totaling $6.6 million.
The gross profit remained constant at $13.3 million, with a gross margin of 71%. Adjusted EBITDA stood at $5.7 million, representing 31% of total revenue. However, net income decreased to $3.1 million, with diluted earnings per share (EPS) at $0.15, compared to net income of $4.0 million and diluted EPS of $0.20 in the same period last year. Adjusted diluted EPS, excluding the impact of acquisition costs, was $0.19, down from $0.21.
Looking at the nine months financial highlights, total revenue for the period increased by 17% to $51.3 million. Software revenue stood at $31.1 million, marking a 14% increase, while services revenue reached $20.2 million, up by 21%. The gross profit increased by 2% to $36.3 million, with a gross margin of 71%. Adjusted EBITDA for the nine months was $16.2 million, representing 32% of total revenue. Net income for the period was $9.1 million, with diluted EPS of $0.45, compared to net income of $9.4 million and diluted EPS of $0.46 in the same period last year. The adjusted diluted EPS, excluding the impact of acquisition costs, remained constant at $0.49.
Shawn O'Connor, Chief Executive Officer of Simulations Plus, highlighted the strong performance in both the software and services segments. He mentioned the company's optimism about the biotech funding environment and the range of spending patterns among large pharmaceutical companies.
The company reaffirmed its full-year revenue guidance of $69 to $72 million and updated EPS guidance. Simulations Plus also announced the discontinuation of its quarterly cash dividend, reallocating the funds to its capital allocation strategy for investing in growth initiatives.
The management emphasized the progress of the integration and collaboration with the recently acquired Pro-ficiency, expressing confidence in achieving the company's goals for the fiscal year.
Simulations Plus, Inc. remains committed to a disciplined growth strategy and is positioned to deliver long-term returns for its shareholders.
Following these announcements, the company's shares moved 1.5%, and are now trading at a price of $46.86. If you want to know more, read the company's complete 8-K report here.
