Overview

* Certara ( CERT ) 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 ( CERT ) sees full-year 2025 revenue between $415 mln and $420 mln

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

* Certara ( CERT ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $104.60 $104.90

Revenue Miss* mln mln (9

Analysts

)

Q3 Beat $0.14 $0.11 (9

Adjusted Analysts

EPS )

Q3 EPS $0.01

Q3 $22.20

Adjusted mln

Net

Income

Q3 Net $1.50

Income mln

Q3 $35.20

Adjusted mln

EBITDA

Q3 -$267,00

Pretax 0

Profit

*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 ( CERT ) 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:

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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.)