Overview
Certara fiscal Q2 revenue grows 12% yr/yr, but just misses analyst expectations
Adjusted EPS for fiscal Q2 misses analyst estimates, per LSEG data
Net loss improves to $2.0 mln from $12.6 mln yr ago
Outlook
Certara expects full-year 2025 revenue between $415 mln and $425 mln
Company anticipates full-year adjusted EBITDA margin of 30-32%
Certara projects full-year adjusted EPS to be $0.42-$0.46
Result Drivers
SERVICE DEMAND - Increase in services revenue attributed to demand for biosimulation services
COMMERCIAL EXECUTION - Strong commercial execution despite mixed operating environment, per CFO John Gallagher
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$104.60 mln
$105 mln (9 Analysts)
Q2 Adjusted EPS
Miss
$0.07
$0.1 (10 Analysts)
Q2 EPS
-$0.01
Q2 Adjusted Net Income
$11.60 mln
Q2 Net Income
-$2 mln
Q2 Adjusted EBITDA
$31.90 mln
Q2 Pretax Profit
$6.25 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $15.00, about 34.3% above its August 5 closing price of $9.86
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 29 three months ago
Press Release: ID:nGNX3nwrb1
(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.)