8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

April 5, 2023

(Date of the earliest event reported)

Simulations Plus, Inc.

(Exact name of registrant as specified in its charter)

California	001-32046	95-4595609
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

42505 10th Street West, Lancaster, California 93534-7059

(Address of principal executive offices) (Zip Code)

661-723-7723

Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14z-12 under Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SLP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02    Results of Operations and Financial Condition

On April 5, 2023, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its second quarter of fiscal year 2023 ended February 28, 2023. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

Item 7.01    Regulation FD Disclosure

On April 5, 2023, the Company held an investor conference call reporting its financial results for its second quarter of fiscal year 2023 ended February 28, 2023. The PowerPoint presentation, which was used for this investor conference call, is attached as Exhibit 99.2 to this Report.

In accordance with General Instructions B.2 of Form 8-K, the information in this Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Report.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Report, including the disclosures set forth herein and Exhibits 99.1 and 99.2 attached hereto, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms “anticipates,” “expects,” “estimates,” “believes” and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements.

Forward-looking statements in this Report or reports hereafter furnished, including in other publicly available documents filed with the Securities and Exchange Commission (the “Commission”), to the Company’s stockholders and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management’s best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.

Item 9.01    Financial Statements and Exhibits

(d)    Exhibits

99.1	Press release issued on April 5, 2023.
99.2	PowerPoint presentation used at the Investor Conference Call on April 5, 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SIMULATIONS PLUS, INC.
Dated: April 5, 2023	By: /s/ Will Frederick
	Will Frederick
	Chief Financial Officer

2

EX-99.1

Exhibit 99.1

Simulations Plus Reports Second Quarter Fiscal 2023 Financial Results

Total revenue of $15.8 million; Diluted Earnings Per Share (EPS) of $0.20;

Maintains full-year revenue guidance of $59.3 - $62.0 million (+10-15%) and EPS Guidance of $0.63 - $0.67

LANCASTER, CA, April 5, 2023 – Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its second quarter of fiscal 2023, ended February 28, 2023.

Second Quarter Financial Highlights (Fiscal 2023 vs. Fiscal 2022)

•Total revenue increased 6% to $15.8 million;

•Software revenue increased 7% to $10.5 million, representing 67% of total revenue;

•Services revenue increased 4% to $5.3 million, representing 33% of total revenue;

•Gross profit increased 10% to $13.1 million; gross margin was 83%;

•Net income of $4.2 million and diluted EPS of $0.20, compared to net income of $4.4 million and diluted EPS of $0.21;

•Adjusted EBITDA of $6.2 million, representing 40% of total revenue.

YTD Financial Highlights (Fiscal 2023 vs. Fiscal 2022)

•Total revenue increased 2% to $27.7 million;

•Software revenue decreased 3% to $16.6 million, representing 60% of total revenue;

•Services revenue increased 11% to $11.2 million, representing 40% of total revenue;

•Gross profit increased 4% to $22.4 million; gross margin was 81%;

•Net income of $5.4 million and diluted EPS of $0.26, compared to net income of $7.4 million and diluted EPS of $0.36;

•Adjusted EBITDA of $9.2 million, representing 33% of total revenue.

Management Commentary

Shawn O’Connor, chief executive officer of Simulations Plus, said: “We were pleased to see revenue growth return in the second quarter, increasing 6% on a reported basis and 8% on a constant currency basis, as compared to the same period last year, with higher gross margins. The renewal harmonization initiative we implemented to simplify and align software product renewals according to each customer is progressing as planned, and as a result, we are driving improved cross-selling across our organization and readjusting the seasonality impact to a more normal cadence. We also successfully navigated some extensions by certain potential customers in the sales cycle on the software side, while our services business delivered strong growth in the PBPK and PKPD segments.

“Simultaneously, we continued to grow our team during the quarter by recruiting and signing strong candidates with expertise in software and biology to help us accelerate our penetration in key markets. Our ability to successfully recruit professionals with unique and valuable skillsets, especially in this challenging labor market, is a validation of our strength and the value we bring to the industry. These expert consultants allow us to meet the robust and growing demand for our services.

“As part of our updated capital allocation strategy that we detailed last quarter, we began our $20 million accelerated share repurchase program during the quarter, which we expect to complete during our third quarter. Finally, while the global geopolitical and macroeconomic environments have impacted certain customers, our business remains strong and we remain on target to hit our full-year guidance. We expect to continue to see results from our cross-selling efforts and the streamlining of our renewal process,” concluded O’Connor.

Fiscal 2023 Guidance and Commentary

	Fiscal 2023 Guidance	Annual Increase
Revenue	$59.3M - 62.0M	10-15%
Software mix	60-65%	—
Services mix	35-40%	—
Diluted earnings per share	$0.63-$0.67	5-10%

Quarterly Dividend

The company’s Board of Directors declared a cash dividend of $0.06 per share of the company’s common stock, payable on May 1, 2023, to shareholders of record as of April 24, 2023. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.

Environmental, Social, and Governance (ESG)

We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our ESG website.

Webcast and Conference Call Details

Shawn O’Connor, chief executive officer, and Will Frederick, chief financial officer, will host a conference call and webcast today at 5 p.m. Eastern Daylight Time to discuss details of the company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-201-389-0879. The webcast will be available on our website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call.

Non-GAAP Definition

Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, and any acquisition or financial transaction-related expenses. Adjusted EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that Adjusted EBITDA is useful in evaluating our core operating results. However, Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income or operating income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. The company’s Adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items.

About Simulations Plus

Serving clients worldwide for more than 25 years, Simulations Plus is a leading provider in the biosimulation market providing software and consulting services supporting drug discovery, development, research, and regulatory submissions. We offer solutions that bridge artificial intelligence (AI)/machine learning, physiologically based pharmacokinetics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. Our technology is licensed and applied by major pharmaceutical, biotechnology, and regulatory agencies worldwide. For more information, visit our website at www.simulations-plus.com. Follow us on LinkedIn | Twitter | YouTube.

Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our

ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, our ability to identify and close acquisitions on terms favorable to the company, market conditions, macroeconomic factors, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission.

Investor Relations Contacts:

Brian Siegel, IRC, MBA

Senior Managing Director

Hayden IR

346-396-8696

brian@haydenir.com

Renee Bouche

Simulations Plus Investor Relations

661-723-7723

renee.bouche@simulations-plus.com

--Tables follow (from Q2)—

1

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

For the three and six months ended February 28, 2023 and 2022

(Unaudited)

	Three Months Ended				Six Months Ended
(in thousands, except per common share amounts)	2023		2022		2023		2022
Revenues
Software	$	10,487	$	9,758	$	16,561	$	17,120
Services	5,263		5,038		11,153		10,093
Total revenues	15,750		14,796		27,714		27,213
Cost of revenues
Software	843		780		1,728		1,515
Services	1,777		2,050		3,563		4,071
Total cost of revenues	2,620		2,830		5,291		5,586
Gross profit	13,130		11,966		22,423		21,627
Operating expenses
Research and development	1,317		902		2,483		1,784
Selling, general, and administrative	7,779		5,584		15,028		10,572
Total operating expenses	9,096		6,486		17,511		12,356
Income from operations	4,034		5,480		4,912		9,271
Other income, net	1,034		53		1,774		118
Income before income taxes	5,068		5,533		6,686		9,389
Provision for income taxes	(894)		(1,124)		(1,267)		(1,954)
Net income	$	4,174	$	4,409	$	5,419	$	7,435
Earnings per share
Basic	$	0.21	$	0.22	$	0.27	$	0.37
Diluted	$	0.20	$	0.21	$	0.26	$	0.36
Weighted-average common shares outstanding
Basic	20,112		20,177		20,200		20,164
Diluted	20,529		20,745		20,657		20,738
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	(23)		(38)		30		(275)
Comprehensive income	$	4,151	$	4,371	$	5,449	$	7,160

2

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)		(Audited)
(in thousands, except share and per share amounts)	February 28, 2023		August 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	39,292	$	51,567
Accounts receivable, net of allowance for doubtful accounts of $12 and $12	11,398		13,787
Prepaid income taxes	397		1,391
Prepaid expenses and other current assets	4,335		3,377
Short-term investments	76,052		76,668
Total current assets	131,474		146,790
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $16,455 and $15,672	10,501		9,563
Property and equipment, net	822		632
Operating lease right-of-use assets	1,190		1,420
Intellectual property, net of accumulated amortization of $8,552 and $7,928	8,358		9,057
Other intangible assets, net of accumulated amortization of $1,812 and $2,662	7,387		7,560
Goodwill	12,921		12,921
Other assets	548		439
Total assets	$	173,201	$	188,382
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	350	$	225
Accrued compensation	2,635		3,254
Accrued expenses	535		931
Operating lease liability - current portion	432		461
Deferred revenue	2,050		2,864
Total current liabilities	6,002		7,735
Long-term liabilities
Deferred income taxes, net	1,859		1,456
Operating lease liability	747		943
Total liabilities	8,608		10,134
Commitments and contingencies	—		—
Shareholders' equity
Preferred stock, $0.001 par value - 10,000,000 shares authorized; no shares issued and outstanding	$	—	$	—
Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 19,930,623 and 20,260,070 shares issued and outstanding	137,821		138,512
Retained earnings	27,050		40,044
Accumulated other comprehensive loss	(278)		(308)
Total shareholders' equity	164,593		178,248
Total liabilities and shareholders' equity	$	173,201	$	188,382

3

SIMULATIONS PLUS, INC.

Trended Financial Information*

(Unaudited)

(in millions except earnings per share amounts)	FY 2022												FY 2023						2022			2023
	Q1			Q2			Q3			Q4			Q1			Q2			FY			FY
Revenue
Software	$	7.4		$	9.8		$	9.6		$	5.9		$	6.1		$	10.5		$	32.7		$	16.6
Services	5.0			5.0			5.3			5.8			5.9			5.3			21.2			11.2
Total	$	12.4		$	14.8		$	15.0		$	11.7		$	12.0		$	15.8		$	53.9		$	27.7
Gross Margin
Software	90.0		%	92.0		%	92.4		%	86.1		%	85.4		%	92.0		%	90.6		%	89.6		%
Services	60.0		%	59.3		%	65.6		%	68.2		%	69.7		%	66.2		%	63.5		%	68.1		%
Total	77.8		%	80.9		%	82.9		%	77.2		%	77.7		%	83.4		%	79.9		%	80.9		%
Income from operations	$	3.8		$	5.5		$	4.9		$	0.7		$	0.9		$	4.0		$	14.9		$	4.9
Operating Margin	30.6		%	37.0		%	33.1		%	5.9		%	7.3		%	25.6		%	27.7		%	17.7		%
Net Income	$	3.0		$	4.4		$	4.1		$	1.0		$	1.2		$	4.2		$	12.5		$	5.4
Diluted Earnings Per Share	$	0.15		$	0.21		$	0.20		$	0.05		$	0.06		$	0.20		$	0.60		$	0.26
Adjusted EBITDA	$	5.3		$	7.2		$	6.3		$	2.3		$	3.0		$	6.2		$	21.0		$	9.2
Cash Flow from Operations	$	3.6		$	2.6		$	3.8		$	7.9		$	4.7		$	5.5		$	17.9		$	10.2
Revenue Breakdown by Region
Americas	$	8.5		$	9.7		$	11.2		$	8.4		$	8.5		$	10.6		$	37.7		$	19.1
EMEA	3.0			3.7			1.9			1.7			2.1			3.6			10.4			5.7
Asia Pacific	0.9			1.4			1.9			1.6			1.3			1.5			5.8			2.9
Total	$	12.4		$	14.8		$	15.0		$	11.7		$	12.0		$	15.8		$	53.9		$	27.7
Software Performance Metrics
Average Revenue per Customer (in 000s)
Commercial	$	71.0		$	101.0		$	95.0		$65.0			$68.0			$110.0
Services Performance Metrics
Backlog	$	15.4		$	17.0		$	16.7		$	15.9		$	15.8		$	15.4

*Numbers may not add due to rounding

4

SIMULATIONS PLUS, INC.

Reconciliation of Adjusted EBITDA to Net Income*

(Unaudited)

	FY 2022								FY 2023				2022		2023
(in millions)	Q1		Q2		Q3		Q4		Q1		Q2		FY		FY
Net Income	$	3.0	$	4.4	$	4.1	$	1.0	$	1.2	$	4.2	$	12.5	$	5.4
Excluding:
Interest income and expense, net	(0.1)		(0.1)		(0.1)		(0.4)		(0.8)		(1.0)		(0.7)		(1.8)
Provision for income taxes	0.8		1.1		0.7		(0.1)		0.4		0.9		2.6		1.3
Depreciation and amortization	0.8		1.0		0.9		0.9		0.9		0.9		3.6		1.9
Stock-based compensation	0.6		0.7		0.7		0.7		0.9		1.2		2.7		2.0
Mergers & Acquisitions expense	—		—		—		0.3		0.3		0.1		0.3		0.4
Adjusted EBITDA	$	5.3	$	7.2	$	6.3	$	2.3	$	3.0	$	6.2	$	21.0	$	9.2

*Numbers may not add due to rounding

5

EX-99.2

1 | NASDAQ: SLP April 5, 2023 1 Earnings Call - Q2 - FY23

2 | NASDAQ: SLP With the exception of historical information, the matters discussed in this presentation are forward- looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission. Safe Harbor Statement

3 | NASDAQ: SLP • Second quarter results in line with guidance • Revenue seasonality impacted by expected shift in software renewal timing ◦ Continue to see slower pace of sales cycles due to customer budget constraints ◦ Churn in small biotech accounts ◦ $0.2M constant currency negative impact on revenue • EPS ahead of guidance; EBITDA back to historical levels $0.20 Diluted EPS $16M Revenue 40% Adj. EBITDA as % of Revenue $15M Backlog Second Quarter Highlights

4 | NASDAQ: SLP • New AI/ML drug discovery collaborations • pKa collaboration with large agrochemicals company extending ML models • 4 new FDA grant submissions • Critical PBPK service support to multiple clients • Supported multiple high profile regulatory submissions with pharmacometric modelling and simulation support • Initiated additional projects with investment groups following prior quarter success Supporting Client Success

5 | NASDAQ: SLP GastroPlus® MonolixSuite® -8% • 5 new customers • 6 upsells to existing customers • Impacted by renewal harmonization and forex Second Quarter Software Highlights +18% • 6 new customers • 6 upsells to existing customers • 25 peer reviewed journal articles published in Q2 ADMET Predictor® • 1 new customer • 8 upsells to existing customers • Impacted by Biotech churn -2% Q2 Revenue Growth Q2 Revenue Decline Q2 Revenue Decline General • Overall software revenue growth of 7% • Renewal pattern and revenue seasonality shifting as anticipated • Slower pace of new sales with new customers delaying purchases • University+ program has 278 individual licenses across 54 countries • Good yield on price increase -1% YTD Revenue Decline -5% YTD Revenue Decline -12% YTD Revenue Decline

6 | NASDAQ: SLP PBPK QSP/QST PKPD Second Quarter Services Highlights +19% -32% +29% Q2 Revenue Growth Q2 Revenue Decline Q2 Revenue Growth General • Overall service revenue growth 4% • Total backlog $15.4M - projects to be performed within 12 months increased from 70% to 78% • Successful recruiting quarter despite continued competitive market (2 new hires) • 188 total projects for the quarter • Shift to higher margin time and materials contracts vs fixed priced projects with positive margin impact • Multiple new client relationships • Nature of QSP/QST projects more volatile • Prior quarter included significant CRO pass through revenue • Reflects deeper implementation of PBPK modeling – expanding use cases and perceived value/impact • 4 FDA projects in process +21% YTD Revenue Growth -30% YTD Revenue Decline +50% YTD Revenue Growth

7 | NASDAQ: SLP Capital Allocation Strategy Update • Acquisitions • Strategic investments and partnerships • $50M share repurchase program authorized • $20M accelerated share repurchase (ASR) implemented • Maintain current level ◦ $0.06 per share paid Feb. 6th ◦ $0.06 per share payable May 1st • Product R&D • Employee Recruiting and Retention • Enterprise Technologies Corporate Development Share Repurchases Dividend Payments Internal Reinvestment

8 | NASDAQ: SLP Maintaining FY23 Guidance Total Revenue $59.3M to $62.0M Total Revenue Growth 10% to 15% Software Revenue Mix 60% to 65% Service Revenue Mix 35% to 40% Diluted EPS $0.63 to $0.67

9 | NASDAQ: SLP Financial Results

10 | NASDAQ: SLP Q4 Revenue (in millions) $7.8 $9.8 $10.5 $5.3 $5.0 $5.3 $13.1 $14.8 $15.8 Software Services 2Q21 2Q22 2Q23 67% 33% Software Services (in millions) 66% 34% Software ServicesSoftware RevenueTotal Revenue Services Revenue Revenue - Q2 +6% +7% +4% 2Q23 Mix 2Q22 Mix

11 | NASDAQ: SLP Q4 Revenue (in millions) $14.0 $17.1 $16.6 $9.8 $10.1 $11.2 $23.8 $27.2 $27.7 Software Services FY21 FY22 FY23 60% 40% Software Services 63% 37% Software ServicesSoftware RevenueTotal Revenue Services Revenue +2% -3% +11% Revenue - YTD FY23 Mix FY22 Mix (in millions)

12 | NASDAQ: SLP Gross Margin Trends - Q2 89% 92% 92% 61% 59% 66% 78% 81% 83% Software Services Total 2Q21 2Q22 2Q23

13 | NASDAQ: SLP 88% 91% 90% 62% 60% 68% 78% 79% 81% Software Services Total FY21 FY22 FY23 Gross Margin Trends - YTD

14 | NASDAQ: SLP Software Product as % of Software Revenue Q2 FY23 Other 55% 20% 18% 7% 53% 22% 18% 7% YTD FY23 Other Software Revenue by Product

15 | NASDAQ: SLP Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q2 Commercial Customers Renewal Rates $84 $101 $110 2Q21 2Q22 2Q23 88% 87% 80% 92% 96% 94% Accounts Fees 2Q21 2Q22 2Q23

16 | NASDAQ: SLP Avg. Revenue per Customer (in thousands) Renewal Rates $97 $97 $103 FY21 FY22 FY23 87% 90% 81% 93% 96% 93% Accounts Fees 2Q21 2Q22 2Q23 Software Performance Metrics - YTD Commercial Customers University+ Customers: 278 in 54 countries

17 | NASDAQ: SLP Services as % of Service Revenue Q2 FY23 50% 20% 23% 7% 49% 19% 24% 8% YTD FY23 Service Revenue by Type PKPD QSP/QST PBPK Other PKPD QSP/QST PBPK Other

18 | NASDAQ: SLP Backlog Services Performance Metrics Total Projects 139 201 188 73 63 63 19 25 20 47 82 72 31 33 PKPD QSP/QST PBPK Other 2Q21 2Q22 2Q23 $11 $17 $15 Backlog (in millions) 2Q21 2Q22 2Q23

19 | NASDAQ: SLP Income Statement Summary - Q2 (in millions, except Diluted EPS) 2Q23 % of Rev 2Q22 % of Rev Revenue $15.8 100% $14.8 100% Revenue growth 6% 13% Gross profit 13.1 83% 12.0 81% R&D 1.3 8% 0.9 6% SG&A 7.8 49% 5.6 38% Total operating exp 9.1 58% 6.5 44% Income from operations 4.0 26% 5.5 37% Income before income taxes 5.1 32% 5.5 37% Income taxes (0.9) 6% (1.1) 8% Effective tax rate 18% 20% Net income $4.2 27% $4.4 30% Diluted earnings per share (in dollars) 0.20 0.21 Adjusted EBITDA $6.2 40% $7.2 48%

20 | NASDAQ: SLP Income Statement Summary - YTD (in millions, except Diluted EPS) 2Q23 % of Rev 2Q22 % of Rev Revenue $27.7 100% $27.2 100% Revenue growth 2% 14% Gross profit 22.4 81% 21.6 79% R&D 2.5 9% 1.8 7% SG&A 15.0 54% 10.6 39% Total operating exp 17.5 63% 12.4 45% Income from operations 4.9 18% 9.3 34% Income before income taxes 6.7 24% 9.4 35% Income taxes (1.3) 5% (2.0) 7% Effective tax rate 19% 21% Net income $5.4 20% $7.4 27% Diluted earnings per share (in dollars) 0.26 0.36 Adjusted EBITDA $9.2 33% $12.4 46%

21 | NASDAQ: SLP Balance Sheet Summary (in millions) February 28, 2023 August 31, 2022 Cash and short-term investments $115.3 $128.2 Total current assets 131.5 146.8 Total assets $173.2 $188.4 Current liabilities 6.0 7.7 Long-term liabilities 2.6 2.4 Total liabilities 8.6 10.1 Shareholders’ equity 164.6 178.2 Total liabilities and shareholders’ equity $173.2 $188.4

22 | NASDAQ: SLP Conclusion • Delivering on our commitment to scientific leadership ◦ Internal R&D investment ◦ Expanding industry and regulatory partnerships ◦ MIDD+ – 3rd annual SLP sponsored conference • Enhancing our client facing capabilities ◦ Growth and maturity of business development team ◦ Focus on expanding our local coverage of EU market ◦ Focus on supporting accelerated growth in distributor network • Challenges being addressed ◦ Evolving seasonality due to software renewal timing changes ◦ Small biotech churn ◦ Continued competitive market for scientific talent ◦ General market dynamics: inflation, recession & forex • Focus on Capital Allocation ◦ ACR program near completion CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET WELL POSITIONED TO ACHIEVE OUR FY23 GOALS

XML

Cover	Apr. 05, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 05, 2023
Entity Registrant Name	Simulations Plus, Inc.
Entity Central Index Key	0001023459
Entity Incorporation, State or Country Code	CA
Entity File Number	001-32046
Entity Tax Identification Number	95-4595609
Entity Address, Address Line One	42505 10th Street West
Entity Address, City or Town	Lancaster
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93534-7059
City Area Code	661
Local Phone Number	723-7723
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	SLP
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false