What is the revenue and EPS growth rate for Certara year over year?

What is Certara's gross profit margin?

What is the market's earnings forecast for Certara next quarter?

What is Certara's latest dividend and current dividend yield?

What does Certara do and what are its main business segments?

What were the key takeaways from Certara’s earnings call?

Did Certara beat or miss consensus estimates last quarter?

What were the key takeaways from Certara's earnings call?

- **Revenue resilience**: Q3 revenue up 10% YoY to $104.6 million, with adjusted EBITDA margin of 34%.
- **Investment in growth**: R&D up 24% YoY, driving new product launches like Certara IQ (QSP modeling) and Phoenix Cloud.
- **Tiered customer dynamics**: Tier one services bookings down 9% YoY due to caution, while tier three biotech growth (+double digits) offsets weakness.
- **Margin expansion**: Gross profit boosted by software mix (65% ratable/subscriptions) and cost productivity, with EBITDA margin guidance raised to 32%.
- **2025 outlook**: Narrowed revenue range ($415-$420 million) reflects cautious tier one environment, but software growth and share buybacks support EPS guidance of $0.45-$0.47.

**【CEO Summary Section】**
- Q3 2025 revenue of $104.6 million, up 10% YoY, with adjusted EBITDA of $35.2 million (34% margin). R&D investment grew 24% YoY to 10% of revenue.
- Bookings of $96.6 million (+1% YoY) underperformed due to tier one customer caution, with 1% growth in software bookings and 9% decline in services.
- New product launches (Certara IQ, Phoenix Cloud) show early success, with QSP services growing ahead of the rest of the business.
- 2025 revenue guidance narrowed to $415-$420 million, with adjusted EBITDA margin raised to high end of guidance range (32%).

**【CFO Financial Commentary】**
- Software revenue: $43.8 million (+22% YoY), driven by Simcyp and Chemaxon ($5.6 million contribution). Services revenue: $60.8 million (+3% YoY), with QSP growth offsetting regulatory softness.
- Gross profit improved due to software mix (65% of software revenue from ratable/subscriptions) and cost productivity. Adjusted EPS: $0.14 vs. $0.13 YoY.
- Balance sheet: $172.7 million cash, $293.1 million term loan. Share buybacks: $41 million YTD.
- 2025 guidance: $415-$420 million revenue, 32% EBITDA margin, $0.45-$0.47 EPS.

**【Q&A Highlights】**
- **Tier 1 Customer Behavior**: Slowed decision-making in Q3 continued into Q4, with deals pushed to Q4 and 2026. Tier 3 biotech growth offset tier one weakness.
- **Gross Margin**: Productivity gains (e.g., services cost reductions) and software mix (Chemaxon licenses) drove margin expansion.
- **AI & Product Innovation**: Certara IQ (QSP modeling) and Phoenix Cloud (cloud migration) well-received, with QSP becoming a key growth driver.
- **Macro Impact**: Pharma onshoring and MFN pricing clarity may stabilize 2026 budgets, but near-term tier one caution persists.
- **Regulatory Services**: Inconsistent performance but cash generative; strategic review nearing conclusion.


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