Certara Unveils $100 Million Buyback Plan In Better-Than-Expected Preliminary Earnings Report

Certara, Inc. CERT on Monday announced expected revenue and bookings for the first quarter.

Here’s what the company expects:

• Revenue of $106 million, compared to $96.7 million in the first quarter of 2024, representing growth of 10% versus consensus of $104.42 million.
• Software revenue of $46.4 million, up 18%, and services revenue of $59.6 million, up 4%.
• Interim Q1 bookings of $118 million, up 12%, include software bookings of $40.6 million and services bookings of $77.4 million.
• Preliminary revenue and bookings include Chemaxon revenue of $5.9 million and bookings of $4.9 million.
• The company expects an adjusted EBITDA of around $33-$35 million, up 13-20%.

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Certara CEO William F. Feehery noted that the board’s recent $100 million repurchase authorization reflects “continued confidence” in the company’s strategy and the investments it’s making using AI.

“We are encouraged by the robust interest in our solutions from customers and are focused on executing our 2025 commercial and R&D goals,” Feehery said.

Arsenal Capital Partners has agreed to a one-year lock-up on the sale of shares acquired in December 2022. Arsenal has been an investor in Certara since 2013.”

Guidance: Certara reiterates its 2025 guidance, with sales of $415 million to $425 million compared to a consensus of $419.78 million

The company forecasts a 2025 adjusted EBITDA margin of 30-32% and adjusted EPS of 42- 46 cents, compared to a consensus of 45 cents.

Certara has continued to pursue a strategic evaluation of the regulatory services business. So far, the company has engaged in preliminary discussions with several external parties regarding the regulatory services business.

On Monday, Certara launched its Non-Animal Navigator solution, designed to help biopharmaceutical companies lead the transition from animal testing.

Price Action: CERT stock is up 9.14% at $14.10 on Monday’s last check.

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