CERT Earnings Prediction
The chart below shows how CERT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CERT sees a +3.02% change in stock price 10 days leading up to the earnings, and a -8.38% change 10 days following the report. On the earnings day itself, the stock moves by -1.02%. This data can give you a slight idea of what to expect for the next quarter's release.
CERT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
100.36M
14.03%
5.84%
Gross Margin
47.94%
0.86%
2.74%
Operating Margin
7.91%
-5.72%
-11.42%
Net Margin
6.55%
146.29%
-551.72%
EPS
0.04
150.00%
-500.00%
No Data Available
CERT Earnings Analysis
Certara Inc Corporation (CERT.O) Earnings Conference Call
Positive
Revenue Growth Achievement: Certara achieved a revenue of $385.1 million for 2024, marking a 9% growth compared to 2023, demonstrating strong commercial execution.
Quarterly Bookings Surge: The company reported fourth quarter bookings of $144.5 million, which is a 22% increase year-over-year, driven by a 38% growth in software bookings and a 12% growth in services bookings.
Software Revenue Increase: Certara's software revenue for the fourth quarter was $42.3 million, reflecting a 26% increase over the prior year, indicating robust demand for their biosimulation software and Pinnacle 21.
Customer Base Expansion: The company expanded its customer base to over 2,400 life sciences companies, with 431 customers having an annual contract value exceeding $100,000, representing an 11% growth from 2023.
Customer Retention Success: Certara's software net retention rate was 106% for the quarter and 108% for the year, consistent with their long-term growth profile, indicating strong customer loyalty and satisfaction.
Product Launch Success: The successful launch of the CoAuthor regulatory writing product received positive feedback, showcasing Certara's ability to innovate and meet customer needs.
R&D Investment and Growth: Certara's investment in R&D has led to initial successes, with plans to continue these investments in 2025 to drive new product development and integration of software.
EBITDA Increase and Efficiency: The company reported adjusted EBITDA of $33.5 million for the fourth quarter, an increase from $29.6 million in the same quarter of 2023, reflecting improved operational efficiency.
Strong Cash Position: Certara ended the year with $179.2 million in cash and cash equivalents, providing a solid financial foundation for future growth initiatives.
Negative
Customer Spending Caution: Cautious spending behavior from customers due to funding constraints, Medicare drug price negotiations, and geopolitical uncertainty.
Unpredictable Service Demand: Demand for services was less predictable, particularly in regulatory services, with elongated decision-making timelines.
Stagnant Market Outlook: Customer sentiment did not show signs of improvement heading into 2025, indicating a potentially stagnant market.
Regulatory Writing Bookings Decline: Regulatory writing bookings declined in double digits for the full year, despite a return to growth in the fourth quarter.
Services Revenue Slowdown: Total services revenue growth was only 3% for the full year, indicating a slowdown compared to previous periods.
Subscription Revenue Shift: The decrease in subscription revenue mix was driven by Chemaxon, which has a higher mix of term license software, suggesting a shift in revenue structure.
Limited Revenue Growth Outlook: The company expects 2025 revenue growth to be similar to 2024, indicating limited optimism for significant market recovery.
CERT FAQs
How does CERT typically perform around its earnings report dates?
Is Certara Inc (CERT) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CERT Earning Call Sentiment
Certara, Inc. (CERT) Q4 2024 Earnings Call Transcript
CERT.O
-2.08%Positive
Despite strong financial performance and optimistic guidance, concerns about cautious spending, elongated decision timelines, and regulatory challenges balance the sentiment. The lack of a share repurchase program and integration challenges further weigh on the outlook. The market cap suggests moderate sensitivity to these factors, resulting in a neutral prediction.
