Simulations Plus Inc
NASDAQ:SLP
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Simulations Plus Inc
Simulations Plus, Inc. provides modeling and simulation software and consulting services supporting drug discovery, development research and regulatory submissions. The company is headquartered in Lancaster, California and currently employs 135 full-time employees. The company provides prediction of properties of molecules utilizing artificial-intelligence- and machine-learning-based technology. The company also provides consulting services ranging from early drug discovery through preclinical and clinical trial development to regulatory submissions in support of product approval. The company offers 11 software products for pharmaceutical research and development, which includes GastroPlus, DDDPlus, MembranePlus, DILIsym, NAFLDsym, ADMET Predictor, MedChem Designer, MedChem Studio, PKPlus, KIWI and Monolix Suite of products through Lixoft. Its software and consulting services are provided to pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies and to academic and regulatory agencies worldwide for use in the conduct of industry-based research. Cognigen Corporation, DILIsym Services, Inc. and Lixoft are its subsidiaries.
Simulations Plus, Inc. provides modeling and simulation software and consulting services supporting drug discovery, development research and regulatory submissions. The company is headquartered in Lancaster, California and currently employs 135 full-time employees. The company provides prediction of properties of molecules utilizing artificial-intelligence- and machine-learning-based technology. The company also provides consulting services ranging from early drug discovery through preclinical and clinical trial development to regulatory submissions in support of product approval. The company offers 11 software products for pharmaceutical research and development, which includes GastroPlus, DDDPlus, MembranePlus, DILIsym, NAFLDsym, ADMET Predictor, MedChem Designer, MedChem Studio, PKPlus, KIWI and Monolix Suite of products through Lixoft. Its software and consulting services are provided to pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies and to academic and regulatory agencies worldwide for use in the conduct of industry-based research. Cognigen Corporation, DILIsym Services, Inc. and Lixoft are its subsidiaries.
Revenue Decline: Q1 revenue fell 3% to $18.4 million, as expected and in line with company guidance.
Services Strength: Services revenue rose 16%, driven by robust performance in commercialization services (MEDCOM), while software revenue dropped 17%.
Gross Margin Up: Total gross margin improved to 59% from 54% last year, with both software and services margins rising due to restructuring and product mix.
Guidance Unchanged: Full-year outlook remains $79–82 million in revenue, 0–4% growth, and 57–62% software mix. Q2 revenue expected at $21–22 million.
Backlog & Pipeline: Service project backlog increased 18% to $20.4 million, indicating a healthy pipeline.
Improving Environment: Management sees signs of client budget expansion and easing market constraints, with optimism for future software demand.
AI & Innovation: Initial AI features in software received positive client feedback, enabling more aggressive pricing and potential for further monetization.