Overview

• Certara fiscal Q3 revenue grows 10% yr/yr, slightly missing analyst expectations

• Adjusted EPS for fiscal Q3 beats analyst expectations

• Net income for fiscal Q3 improved to $1.5 mln from a net loss last year

Outlook

• Certara sees full-year 2025 revenue between $415 mln and $420 mln

• Company expects full-year adjusted EBITDA margin of approximately 32%

• Certara anticipates full-year adjusted EPS of $0.45 to $0.47

Result Drivers

• SOFTWARE GROWTH - Driven by biosimulation software and M&A activities, software revenue increased by 22%

• SERVICE BOOKINGS DECLINE - Service bookings decreased by 9% due to softer trends among tier-one customers in Regulatory services

• BIOSIMULATION DEMAND - Strong demand for biosimulation solutions in software and QSP services, despite spending hesitancy in other service areas

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Certara Inc is $16.00, about 27.7% above its November 5 closing price of $11.57

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nGNX6q5dbj

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)