Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

January 7, 2025

(Date of the earliest event reported)

Simulations Plus, Inc.

(Exact name of registrant as specified in its charter)


California	001-32046	95-4595609
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

800 Park Offices Drive, Suite 401, Research Triangle Park, NC 27709

(Address of principal executive offices) (Zip Code)

661-723-7723

Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14z-12 under Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SLP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).


			Emerging Growth Company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02 Results of Operations and Financial Condition

On January 7, 2025, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its first quarter ended November 30, 2024. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

Item 7.01 Regulation FD Disclosure

On January 7, 2025, the Company held an investor conference call reporting its financial results for its first quarter ended November 30, 2024. The PowerPoint presentation, which was used for this investor conference call, is attached as Exhibit 99.2 to this Report.

In accordance with General Instructions B.2 of Form 8-K, the information in this Report, including Exhibits 99.1 and 99.2 (together, the “Exhibits”), is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Report.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Report, including the disclosures set forth herein and in the Exhibits attached hereto, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms “anticipates,” “expects,” “estimates,” “believes” and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements.

Forward-looking statements in this Report or reports hereafter furnished, including in other publicly available documents filed with the Securities and Exchange Commission (the “Commission”), to the Company’s stockholders and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management’s best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits


99.1			Press release issued on January 7, 2025.
99.2			PowerPoint presentation used at the Investor Conference Call on January 7, 2025.
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			SIMULATIONS PLUS, INC.

Dated: January 7, 2025			By: /s/ Will Frederick
			Will Frederick
			Chief Financial Officer and Chief Operating Officer

Exhibit 99.1

Simulations Plus Reports First Quarter Fiscal 2025 Financial Results

Total revenue up 31% year-over-year primarily driven by strong software growth

RESEARCH TRIANGLE PARK, NC, January 7, 2025 – Simulations Plus, Inc. (Nasdaq: SLP) (“Simulations Plus”), a leading provider of cheminformatics, biosimulation, simulation-enabled performance and intelligence solutions, and medical communications to the biopharma industry, today reported financial results for its first quarter fiscal 2025, ended November 30, 2024.

First Quarter 2025 Financial Highlights (compared to first quarter 2024)

•Total revenue increased 31% to $18.9 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

•Gross profit of $10.2 million; gross margin was 54%

•Net income of $0.2 million and diluted EPS of $0.01 compared to net income of $1.9 million and diluted EPS of $0.10

•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 and adjusted diluted EPS of $0.17, compared to adjusted net income of $3.7 million and adjusted diluted EPS of $0.18

Management Commentary

“We are off to a strong start to fiscal 2025 with total revenue increasing by 31% in the first quarter,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Our team delivered 41% growth across our software platforms. MonolixSuite™ was a meaningful contributor with a 43% growth rate this quarter. We are 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, we saw 40% growth in our Quantitative Systems Pharmacology (QSP) business unit with strong demand for model licenses in the disease areas of Psoriatic Arthritis and Crohn’s Disease.

“Services revenue increased 19%, however this segment faced some temporary headwinds this quarter. There were some client-driven data delays that postponed the ramp up of certain projects into our fiscal year second quarter. We were pleased to see that this quarter’s bookings were especially strong in our Clinical Pharmacology & Pharmacometrics (CPP) and Medical Communications (MC) business units.

“Overall, our team achieved solid results despite ongoing funding challenges and cost constraints in the pharma and biotech sectors. The integration of our Adaptive Learning and Insights (ALI) and MC business units is progressing well. For fiscal 2025, we expect momentum to be strongest in the back half of the year, which puts us on track to meet our stated guidance.”

Fiscal 2025 Guidance

Revenue

$90M - $93M

Revenue growth

28 - 33%

Software mix

55 - 60%

Adjusted EBITDA margin

31 - 33%

Adjusted diluted EPS

$1.07 - $1.20

Webcast and Conference Call Details

Shawn O’Connor, Chief Executive Officer, and Will Frederick, Chief Financial and Operating Officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of Simulations Plus’ performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. The webcast can be accessed on the investor relations page of the Simulations Plus website https://www.simulations-plus.com/investorscorporate-profile/corporate-profile/ where it will also be available for replay approximately one hour following the call.

Non-GAAP Financial Measures

This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”).

A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release.

The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items.

Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Adjusted EBITDA

Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, amortization expense, intangible asset amortization, equity-based compensation expense, loss (gain) on currency exchange, goodwill impairment, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense and other items not indicative of our ongoing operating performance.

Adjusted Net Income and Adjusted Diluted EPS

Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization expense, equity-based compensation expense, loss (gain) on currency exchange, goodwill impairment, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges.

The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future.

About Simulations Plus

With more than 25 years of experience serving clients globally, Simulations Plus stands as a premier provider in the biopharma sector, offering advanced software and consulting services that enhance drug discovery, development, research, clinical trial operations, regulatory submissions, and commercialization. Our comprehensive biosimulation solutions integrate artificial intelligence/machine learning (AI/ML), physiologically based pharmacokinetics, physiologically based biopharmaceutics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. We also deliver simulation-enabled performance and intelligence solutions alongside medical communications support for clinical and commercial drug development. Our cutting-edge technology is licensed and utilized by leading pharmaceutical, biotechnology, and regulatory agencies worldwide. For more information, visit our website at www.simulations-plus.com. Follow us on LinkedIn | X | YouTube.

Environmental, Social, and Governance

We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our website to read our 2023 ESG update.

Forward-Looking Statements

Investor Relations Contact:

Lisa Fortuna

Financial Profiles

310-622-8251

slp@finprofiles.com

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME


	Three Months Ended

(in thousands, except per common share amounts)		November 30, 2024		November 30, 2023
Revenues
Software		$	10,715	$	7,589
Services		8,209		6,911
Total revenues		18,924		14,500
Cost of revenues
Software		2,638		991
Services		6,068		3,661
Total cost of revenues		8,706		4,652
Gross profit		10,218		9,848
Operating expenses
Research and development		1,848		1,217
Sales and marketing		2,851		1,989
General and administrative		5,393		5,682
Total operating expenses		10,092		8,888

Income from operations		126		960

Other income		144		1,446

Income before income taxes		270		2,406
Provision for income taxes		(64)		(461)
Net income		$	206	$	1,945

Earnings per share
Basic		$	0.01	$	0.10
Diluted		$	0.01	$	0.10

Weighted-average common shares outstanding
Basic		20,068		19,947
Diluted		20,266		20,279

Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments		(42)		(54)
Unrealized gains on available-for-sale securities		$	4	$	—
Comprehensive income		$	168	$	1,891

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS



(in thousands, except share and per share amounts)	November 30, 2024		August 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	6,187	$	10,311
Accounts receivable, net of allowance for credit losses of $145 and $149	12,804		9,136
Prepaid income taxes	2,327		2,197
Prepaid expenses and other current assets	7,098		7,753
Short-term investments	11,983		9,944
Total current assets	40,399		39,341
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $19,500 and $18,727	12,441		12,499
Property and equipment, net	819		812
Operating lease right-of-use assets	1,342		1,027
Intellectual property, net of accumulated amortization of $6,575 and $5,490	22,045		23,130
Other intangible assets, net of accumulated amortization of $3,497 and $3,177	23,076		23,210
Goodwill	96,305		96,078


Other assets	489		542
Total assets	$	196,916	$	196,639

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	1,120	$	602
Accrued compensation	1,882		4,513
Accrued expenses	580		2,043

Contracts payable - current portion	2,440		2,440
Operating lease liability - current portion	485		475
Deferred revenue	3,231		1,996
Total current liabilities	9,738		12,069
Long-term liabilities
Deferred income taxes, net	1,648		1,608
Operating lease liability - net of current portion	835		531

Total liabilities	12,221		14,208
Commitments and contingencies	—		—
Shareholders' equity
Preferred stock, $0.001 par value - 10,000,000 shares authorized; no shares issued and outstanding	$	—	$	—
Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 20,085,014 and 20,051,134 shares issued and outstanding	154,424		152,328
Retained earnings	30,560		30,354
Accumulated other comprehensive loss	(289)		(251)
Total shareholders' equity	184,695		182,431
Total liabilities and shareholders' equity	$	196,916	$	196,639

SIMULATIONS PLUS, INC.

Trended Financial Information (1)

(Unaudited)

(in millions except earnings per share amounts)


	FY24	FY25				FY24
			Q1			Q2			Q3			Q4			Q1			Full Year
Revenue
Software			$	7.589		$	11.614		$	11.908		$	9.913		$	10.715		$	41.024
Services			$	6.911		$	6.691		$	6.636		$	8.751		$	8.209		$	28.989
Total			$	14.500		$	18.305		$	18.544		$	18.664		$	18.924		$	70.013

Gross Margin
Software			86.9		%	88.4		%	88.2		%	72.4		%	75.4		%	84.2		%
Services			47.0		%	44.2		%	41.4		%	-4.0		%	26.1		%	29.7		%
Total			67.9		%	72.2		%	71.5		%	36.6		%	54.0		%	61.6		%

Income from operations			$	0.960		$	4.442		$	1.880		$	(1.151)		$	0.126		$	6.131
Operating Margin			6.6		%	24.3		%	10.1		%	-6.2		%	0.7		%	8.8		%
Net Income			$	1.945		$	4.029		$	3.137		$	0.843		$	0.206		$	9.954
Diluted Earnings Per Share			$	0.10		$	0.20		$	0.15		$	0.04		$	0.01		$	0.49
Adjusted EBITDA			$	3.388		$	7.135		$	5.586		$	4.148		$	4.493		$	20.257
Adjusted Diluted EPS			$	0.18		$	0.32		$	0.27		$	0.18		$	0.17		$	0.95
Cash Flow from Operations			$	0.162		$	5.810		$	5.700		$	1.600		$	(1.274)		$	13.320

Revenue Breakdown by Region
Americas			$	10.891		$	12.461		$	12.428		$	14.700		$	14.469		$	50.473
EMEA			2.302			4.665			4.513			2.600			2.720			14.072
Asia Pacific			1.307			1.179			1.603			1.400			1.735			5.468
Total			$	14.500		$	18.305		$	18.544		$	18.700		$	18.924		$	70.013

Software Performance Metrics
Avg. Revenue per Customer (in thousands)
Commercial			$79.0			$113.0			$97.0			$89.0			$94.0

Services Performance Metrics
Backlog (in millions)			$18.910			$18.041			$19.602			$14.091			$17.254

(1) Numbers may not add due to rounding

SIMULATIONS PLUS, INC.

Reconciliation of Adjusted EBITDA to Net Income (1)

(Unaudited)

(in millions)


	FY 2024	FY25	FY24
				Q1		Q2		Q3		Q4		Q1		Full Year
Net Income				$	1.945	$	4.029	$	3.137	$	0.843	$	0.206	$	9.954
Excluding:
Interest income and expense, net				(1.292)		(1.348)		(1.522)		(0.213)		(0.159)		(4.375)
Provision for income taxes				0.461		1.223		0.753		0.020		0.064		2.457
Depreciation and amortization				1.091		1.105		1.263		2.206		2.265		5.665
Stock-based compensation				1.303		1.585		1.665		1.387		1.589		5.940
(Gain) loss on currency exchange				(0.044)		0.098		(0.009)		(0.431)		0.015		(0.386)


Change in value of contingent consideration				(0.110)		0.440		(0.599)		(1.370)		—		(1.639)
Reorganization expense				—		—		—		—		0.258		—
Mergers & Acquisitions expense				0.034		0.003		0.898		1.706		0.255		2.641
Adjusted EBITDA				$	3.388	$	7.135	$	5.586	$	4.148	$	4.493	$	20.257

(1) Numbers may not add due to rounding

SIMULATIONS PLUS, INC.

Reconciliation of Adjusted Diluted EPS to Diluted EPS (1)

(Unaudited)

(in millions, except Diluted EPS and Adjusted Diluted EPS)


	FY 2024	FY25			FY24
			Q1		Q2		Q3		Q4		Q1		Full Year

Net Income (GAAP)			$	1.945	$	4.029	$	3.137	$	0.843	$	0.206	$	9.954
Excluding:
Amortization			0.991		0.991		1.122		2.059		2.130		5.163
Stock-based compensation			1.303		1.585		1.665		1.387		1.589		5.940
(Gain) loss on currency exchange			(0.044)		0.098		(0.009)		(0.431)		0.015		(0.386)
Mergers & Acquisitions expense			0.034		0.003		0.898		1.706		0.255		2.641

Change in value of contingent consideration			(0.110)		0.440		(0.599)		(1.370)		—		(1.639)
Reorganization expense			—		—		—		—		0.258		—

Tax effect on above adjustments			(0.417)		(0.746)		(0.603)		(0.554)		(1.007)		(2.320)
Adjusted Net income (Non-GAAP)			$	3.702	$	6.400	$	5.611	$	3.640	$	3.446	$	19.353
Weighted-avg. common shares outstanding:
Diluted			20.279		20.315		20.433		20.338		20.266		20.301

Diluted EPS (GAAP)			$	0.10	$	0.20	$	0.15	$	0.04	$	0.01	$	0.49
Adjusted Diluted EPS (Non-GAAP)			$	0.18	$	0.32	$	0.27	$	0.18	$	0.17	$	0.95

(1) Numbers may not add due to rounding

1 Earnings Call – Q1 - FY25 January 7, 2025

Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to successfully integrate the Pro-ficiency business with our own, as well as expenses we may incur in connection therewith, our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission. Non-GAAP Financial Measures This press release includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) such as Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Adjusted Diluted EPS and certain ratios and other metrics derived there from. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. We believe (i) these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends; and (ii) that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. Reconciliations of these non- GAAP measures to the most directly comparable GAAP measures are set forth in the appendix to this presentation. Safe Harbor Statement 2

First Quarter Highlights $0.01 Diluted EPS $18.9M Revenue 24% Adj. EBITDA Margin +31% Revenue Growth 3 CURRENT PERIOD Prior Year Comparison (1Q24) $14.5M Revenue $0.10 Diluted EPS 23% Adj. EBITDA Margin +21% Revenue Growth $0.17 Adj. Diluted EPS $0.18 Adj. Diluted EPS

Trailing Twelve Months (TTM) 1Q25 Highlights $0.40 Diluted EPS $74.4M Revenue 29% Adj. EBITDA Margin +20% Revenue Growth 4 CURRENT PERIOD Prior Year Comparison (1Q24) $62.1M Revenue $0.52 Diluted EPS 34% Adj. EBITDA Margin +16% Revenue Growth $0.94 Adj. Diluted EPS $1.06 Adj. Diluted EPS

– Overall software revenue growth of 41% for 1Q25 and 16% for TTM – Good renewal rate, upsell and new logo activity – Revenue contribution from ALI and MC in-line with expectations Software Highlights +15% Q1 Revenue Growth General +4% Q1 Revenue Growth +43% Q1 Revenue Growth +40% Q1 Revenue Growth $1.7M Q1 Revenue $0.1M Q1 Revenue +7% TTM Revenue Growth +4% TTM Revenue Growth +28% TTM Revenue Growth -5% TTM Revenue Growth $2.8M TTM Revenue (1) $0.1M TTM Revenue (1) 5 Cheminformatics (CHEM) Physiologically Based Pharmacokinetics (PBPK) Clinical Pharmacology & Pharmacometrics (CPP) Quantitative Systems Pharmacology (QSP) Adaptive Learning & Insights (ALI) Medical Communications (MC) (1) The TTM revenue for the ALI and MC business units only includes revenue since the acquisition of Pro-ficiency in June 2024.

– Overall services revenue growth of 19% for 1Q25 and 26% for TTM – Total backlog $17.3M, over 90% expected to be converted to revenue within 12 months – Revenue contribution from MC in-line with expectations Services Highlights General -9% Q1 Revenue Decline -6% Q1 Revenue Decline -14% Q1 Revenue Decline $1.9M Q1 Revenue TTM Revenue Decline TTM Revenue Growth TTM Revenue Growth TTM Revenue (1) 6 -2% +13% +28% $3.1M Physiologically Based Pharmacokinetics (PBPK) Clinical Pharmacology & Pharmacometrics (CPP) Quantitative Systems Pharmacology (QSP) Clinical Pharm cology & Pharmacometrics Physiologically Based Pharmacokinetics (PBPK) Clinical Pharmacology & Pharmacometrics (CPP) Quantitative Systems Pharmacology (QSP) Medical Communications (MC) (1) The TTM revenue for the MC business unit only includes revenue since the acquisition of Pro-ficiency in June 2024.

Financial Results

57% 43% Software Services 52% 48% Software Services Revenue - Q1 (in millions) Software Revenue Growth Total Revenue Growth Services Revenue Growth +31% +41% +19% 1Q25 Mix 1Q24 Mix 8 $6.1 $7.6 $10.7 $5.8 $6.9 $8.2 $12.0 $14.5 $18.9 Software Services 1Q23 1Q24 1Q25

59% 41% Software Services 61% 39% Software Services Revenue - Trailing Twelve Months (TTM) (in millions) Software Revenue Growth Total Revenue Growth Services Revenue Growth +20% +16% +26% 1Q25 Mix 1Q24 Mix 9 $31.4 $38.0 $44.2 $22.1 $24.1 $30.3$53.5 $62.1 $74.4 Software Services 1Q23 1Q24 1Q25

38% 21% 12% 16% 13% GastroPlus® MonolixSuite™ ADMET Predictor® ALI Others Software Solutions as % of Software Revenue 10 1Q25 50% 20% 17% 6% 7% GastroPlus® MonolixSuite™ ADMET Predictor® ALI Others TTM GastroPlus® ▪ 2 new customers ▪ 4 upsells to existing customers ADMET Predictor® ▪ 4 new customers ▪ 1 upsells to existing customers MonolixSuite™ ▪ 12 new customers ▪ 9 upsells to existing customers First Quarter Highlights QSP ▪ Added model licenses for Psoriatic Arthritis and Chron's Disease

Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q1 Commercial Customers Renewal Rates 11 $68 $79 $94 1Q23 1Q24 1Q25 82% 84% 83% 90% 100% 95% Accounts Fees 1Q23 1Q24 1Q25

Avg. Revenue per Customer (in thousands) Software Performance Metrics - TTM Commercial Customers Renewal Rates 12 $83 $93 $98 FY23 FY24 FY25 85% 83% 83% 93% 93% 92% Accounts Fees FY23 FY24 FY25

18% 22% 37% 23% PBPK QSP CPP MC Services Solutions as % of Services Revenue 13 1Q25 21% 28% 40% 11% PBPK QSP CPP MC TTM

$15.8 $18.9 $17.3 1Q23 1Q24 1Q25 85 85 74 24 27 21 70 67 49 39 179 179 183 PBPK QSP CPP MC 1Q23 1Q24 1Q25 Services Performance Metrics Total Projects Backlog (in millions) 14

Income Statement Summary (1) 15 (in millions, except Diluted EPS and Adjusted Diluted EPS) 1Q25 % of Rev 1Q24 (2) % of Rev Revenue $18.9 100% $14.5 100% Cost of revenue 8.7 46% 4.7 32% Gross profit 10.2 54% 9.0 62% R&D 1.8 10% 1.2 8% S&M 2.9 15% 2.0 14% G&A 5.4 28% 4.9 34% Total operating exp 10.1 53% 8.1 56% Income from operations 0.1 1% 1.0 7% Income before income taxes 0.3 1% 2.4 17% Income taxes (0.1) —% (0.5) 3% Effective tax rate 24% 19% Net income $0.2 1% $1.9 13% Diluted EPS $0.01 $0.10 Adjusted EBITDA $4.5 24% $3.4 23% Excluded items $3.2 $1.8 Adjusted Diluted EPS $0.17 $0.18 (1) Numbers may not add due to rounding (2) Reflects $0.8 million reclassification from G&A expense to cost of revenue to provide more effective FY25 comparison.

Balance Sheet Summary 16 November 30, 2024 August 31, 2024 Cash and short-term investments $18.2 $20.3 Total current assets 40.4 39.3 Total assets $196.9 $196.6 Current liabilities 9.7 12.1 Long-term liabilities 2.5 2.1 Total liabilities 12.2 14.2 Shareholders’ equity 184.7 182.4 Total liabilities and shareholders’ equity $196.9 $196.6 (in millions)

Fiscal 2025 Guidance 17 Guidance Total Revenue $90M - $93M Total Revenue Growth 28% - 33% Software Revenue Mix 55% - 60% Adjusted EBITDA(1) Margin 31% - 33% Adjusted Diluted EPS(2) $1.07 - $1.20 (1) Adjusted EBITDA represents net income excluding the effect of interest expense (income), provision (benefit) for income taxes, amortization expense, intangible asset amortization, equity-based compensation expense, loss (gain) on currency exchange, goodwill impairment, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense and other items not indicative of our ongoing operating performance. (2) Adjusted net income and adjusted diluted earnings per share exclude the effect of amortization expense, equity-based compensation expense, loss (gain) on currency exchange, goodwill impairment, change in fair value of contingent consideration, reorganization expense, acquisition and integration expense and other items not indicative of our ongoing operating performance as well as the income tax provision adjustment for such charges.

WELL POSITIONED FOR FISCAL 2025 PERFORMANCE Delivering on our commitment to scientific leadership Expanding our software and services portfolio 18 • Release of GastroPlusX • Release of Monolix R24 • Release of ADMET Predictor Version 12 • Collaboration with USC to secure NIH Grant to develop new AI drug discovery offerings Developing organization to drive growth Creating shareholder value CONTINUED LEADERSHIP POSITION IN LIFE SCIENCES TECHNOLOGY MARKET Conclusion • Optimization of business unit structure following recent strategic acquisitions • Formation of two new business units following Pro-ficiency acquisition • Focus on supporting accelerated growth in distributor network • ALI: Pro-ficiency Performance Management software platform • MC: Panorama KOL Insights software platform • Delivering consistent revenue growth and profitability • Strategic M&A

Adjusted EBITDA Non-GAAP Reconciliation (1) 19 FY24 FY25 FY24 Q1 Q2 Q3 Q4 Q1 Full Year Net Income $1.945 $4.029 $3.137 $0.843 $0.206 $9.954 Excluding: Interest income and expense, net (1.292) (1.348) (1.522) (0.213) (0.159) (4.375) Provision for income taxes 0.461 1.223 0.753 0.020 0.064 2.457 Depreciation and amortization 1.091 1.105 1.263 2.206 2.265 5.665 Stock-based compensation 1.303 1.585 1.665 1.387 1.589 5.940 (Gain) loss on currency exchange (0.044) 0.098 (0.009) (0.431) 0.015 (0.386) Impairment of other intangibles — — — — — — Change in value of contingent consideration (0.110) 0.440 (0.599) (1.370) — (1.639) Reorganization expense — — — — 0.258 — Mergers & Acquisitions expense 0.034 0.003 0.898 1.706 0.255 2.641 Adjusted EBITDA $3.388 $7.135 $5.586 $4.148 $4.493 $20.257 (in millions) (1) Numbers may not add due to rounding

Adjusted Diluted EPS Non-GAAP Reconciliation (1) 20 FY24 FY25 FY24 Q1 Q2 Q3 Q4 Q1 Full Year Net Income (GAAP) $1.945 $4.029 $3.137 $0.843 $0.206 $9.954 Excluding: Amortization 0.991 0.991 1.122 2.059 2.130 5.163 Stock-based compensation 1.303 1.585 1.665 1.387 1.589 5.940 (Gain) loss on currency exchange (0.044) 0.098 (0.009) (0.431) 0.015 (0.386) Mergers & Acquisitions expense 0.034 0.003 0.898 1.706 0.255 2.641 Change in value of contingent consideration (0.110) 0.440 (0.599) (1.370) — (1.639) Reorganization expense — — — — 0.258 — Tax effect on above adjustments (0.417) (0.746) (0.603) (0.554) (1.007) (2.320) Adjusted Net income (Non-GAAP) $3.702 $6.400 $5.611 $3.640 $3.446 $19.353 Weighted-avg. common shares outstanding: Diluted 20.279 20.315 20.433 20.338 20.266 20.301 Diluted EPS (GAAP) $0.10 $0.20 $0.15 $0.04 $0.01 $0.49 Adjusted Diluted EPS (Non-GAAP) $0.18 $0.32 $0.27 $0.18 $0.17 $0.95 (in millions, except Diluted EPS and Adjusted Diluted EPS) (1) Numbers may not add due to rounding

Investor Relations Contact: Lisa Fortuna Financial Profiles 310-622-8251 slp@finprofiles.com

Cover	Jan. 07, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 07, 2025
Entity Registrant Name	Simulations Plus, Inc.
Entity Central Index Key	0001023459
Entity Incorporation, State or Country Code	CA
Entity File Number	001-32046
Entity Tax Identification Number	95-4595609
Entity Address, Address Line One	800 Park Offices Drive, Suite 401
Entity Address, City or Town	Research Triangle Park
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27709
City Area Code	661
Local Phone Number	723-7723
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	SLP
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false