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

October 25, 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 October 25, 2023, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its fourth quarter and fiscal year ended August 31, 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 October 25, 2023, the Company held an investor conference call reporting its financial results for its fourth quarter and fiscal year ended August 31, 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 October 25, 2023.
99.2	PowerPoint presentation used at the Investor Conference Call on October 25, 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: October 25, 2023	By: /s/ Will Frederick
	Will Frederick
	Chief Financial Officer

2

EX-99.1

Exhibit 99.1

Simulations Plus Reports Fourth Quarter and Fiscal 2023 Financial Results

Fiscal 2023 revenue increased 11% year-over-year to $59.6 million

Provides Fiscal 2024 revenue guidance of $66 - $69 million (+10-15%) and EPS guidance of $0.66 - $0.68

Simulations Plus to host its Investor Day on November 14, 2023

LANCASTER, CA, October 25, 2023 – Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical drug discovery and development, today reported financial results for its fourth quarter and fiscal 2023, ended August 31, 2023.

Fourth Quarter Financial Highlights

•Total revenue increased 33% to $15.6 million

•Software revenue increased 59% to $9.3 million, representing 60% of total revenue

•Services revenue increased 8% to $6.3 million, representing 40% of total revenue

•Gross profit increased 35% to $12.3 million; gross margin was 78%

•Adjusted EBITDA of $4.9 million, representing 31% of total revenue

•Adjusted EPS of $0.18

•Net income of $0.5 million and diluted earnings per share (EPS) of $0.03, compared to net income of $1.0 million and diluted EPS of $0.05 in the fourth quarter of 2022

Full Year Financial Highlights

•Total revenue increased 11% to $59.6 million

•Software revenue increased 12% to $36.5 million, representing 61% of total revenue

•Services revenue increased 8% to $23.1 million, representing 39% of total revenue

•Gross profit increased 11% to $47.9 million; gross margin was 80%

•Adjusted EBITDA of $20.6 million, representing 35% of total revenue

•Adjusted EPS of $0.67

•Net income of $10.0 million and diluted EPS of $0.49, compared to net income of $12.5 million and diluted EPS of $0.60 in fiscal 2022

Management Commentary

“We delivered strong revenue and earnings results for fiscal 2023, marked by our team’s impressive execution on building strong customer relationships,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Our ability to drive growth while navigating a challenging environment demonstrates the strength of our customer-centric business model and the effort and dedication of our colleagues throughout the year.”

“Fourth quarter revenue increased 33% year-over-year, driven by strong contribution across our software segment offerings, with notable performance by GastroPlus, and solid performance in our services offering, especially in our quantitative systems pharmacology (QSP) business unit, which benefitted from our Immunetrics acquisition in the quarter. Gross margins for the fourth quarter remained strong at 78%, reflecting a favorable mix of higher margin software sales and our ability to pass along price increases. We achieved our fiscal 2023 guidance for both revenue and adjusted diluted EPS.”

“Our renewal harmonization initiative to simplify and align contract renewals played out as expected and is essentially complete. We achieved our goal of gaining greater visibility into our revenues, and with contract harmonization now

embedded in the normal course of our business processes, we expect that both Simulations Plus and our customers will see the benefits going forward.”

“The integration of Immunetrics is going well. Immunetrics brings its strong reputation in the immunology and oncology markets and has a healthy pipeline, including new accounts sourced from our Simulations Plus customer base.”

“We believe that we enter fiscal 2024 well-positioned for continued growth. The underlying fundamentals of our market are resilient, our pipeline is healthy, our profitability is strong, and our balance sheet is sound. Our team remains committed to innovative and disciplined growth that delivers long-term returns for our shareholders.”

Fiscal 2024 Guidance

	Fiscal 2024 Guidance	Annual Increase
Revenue	$66M - $69M	10 - 15%
Software mix	55 - 60%	—
Services mix	40 - 45%	—
Diluted earnings per share	$0.66 - $0.68	35 - 39%

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 November 6, 2023, to shareholders of record as of October 30, 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

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 Time to discuss the 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 1-877-451-6152 or 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.

Investor Day

Simulations Plus will host a virtual Investor Day on Tuesday, November 14, 2023. Presentations will be made by CEO Shawn O’Connor, CFO Will Frederick and business unit leaders. The presentations will provide an in-depth overview of Simulations Plus’ paths to win through stronger customer alignment, its growth strategy, and financial outlook. Attendance is by invitation only to institutional investors and analysts. Presentations are expected to begin at 1:00 p.m. ET, and the event is expected to conclude at 3:00 p.m. ET. Dial-in information will be available at a later date, and a more detailed agenda, presentations and a live webcast will be available on the day of the event on the Simulations Plus website at https://www.simulations-plus.com/investorscorporate-profile/conference-calls/. A replay and transcript of the webcast will be available shortly after the event.

Non-GAAP Definitions

Adjusted EBITDA

Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign currency denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. 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.

Adjusted Diluted EPS

Adjusted diluted EPS is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, and tax provisions / benefits related to the previous items. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods.

The Company believes that the use of non-GAAP measures helps investors to gain a better understanding of the Company’s core operating results and future prospects, consistent with how management measures and forecasts the Company’s performance, especially when comparing such results to previous periods or forecasts.

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 successfully integrate the Immunetrics business with our own, as well as expenses we may incur in connection therewith, 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, 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:

Tamara Gonzalez

Financial Profiles

310-622-8234

slp@finprofiles.com

Renee Bouche

Simulations Plus Investor Relations

661-723-7723

renee.bouche@simulations-plus.com

1

SIMULATIONS PLUS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

	Years ended August 31,
(in thousands, except per common share amounts)	2023		2022		2021
Revenues
Software	$	36,517	$	32,642	$	27,670
Services	23,060		21,264		18,796
Total revenues	59,577		53,906		46,466
Cost of revenues
Software	3,627		3,060		3,235
Services	8,003		7,762		7,365
Total cost of revenues	11,630		10,822		10,600
Gross profit	47,947		43,084		35,866
Operating expenses
Research and development	4,504		3,208		4,047
Selling, general, and administrative	34,718		24,965		20,566
Total operating expenses	39,222		28,173		24,613
Income from operations	8,725		14,911		11,253
Other income (expense), net	2,970		204		(168)
Income before income taxes	11,695		15,115		11,085
Provision for income taxes	(1,734)		(2,632)		(1,303)
Net income	$	9,961	$	12,483	$	9,782
Earnings per share
Basic	$	0.50	$	0.62	$	0.49
Diluted	$	0.49	$	0.60	$	0.47
Weighted-average common shares outstanding
Basic	20,075		20,196		20,045
Diluted	20,465		20,749		20,743
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments	167		(265)		(101)
Comprehensive income	$	10,128	$	12,218	$	9,681

2

SIMULATIONS PLUS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)	August 31, 2023		August 31, 2022
ASSETS
Current assets
Cash and cash equivalents	$	57,523	$	51,567
Accounts receivable, net of allowance for doubtful accounts of $46 and $12	10,201		13,787
Prepaid income taxes	804		1,391
Prepaid expenses and other current assets	3,904		3,377
Short-term investments	57,940		76,668
Total current assets	130,372		146,790
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $17,199 and $15,672	11,335		9,563
Property and equipment, net	671		632
Operating lease right-of-use assets	1,247		1,420
Intellectual property, net of accumulated amortization of $9,301 and $7,928	8,689		9,057
Other intangible assets, net of accumulated amortization of $2,107 and $2,662	12,825		7,560
Goodwill	19,099		12,921
Deferred tax assets	1,438		—
Other assets	425		439
Total assets	$	186,101	$	188,382
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	144	$	225
Accrued compensation	4,392		3,254
Accrued expenses	659		931
Contracts payable	3,250		—
Operating lease liability - current portion	442		461
Deferred revenue	3,100		2,864
Total current liabilities	11,987		7,735
Long-term liabilities
Deferred income taxes, net	—		1,456
Operating lease liability	755		943
Contracts payable – net of current portion	3,330		—
Total liabilities	16,072		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; 19,937,961 and 20,260,070 shares issued and outstanding	144,974		138,512
Retained earnings	25,196		40,044
Accumulated other comprehensive loss	(141)		(308)
Total shareholders' equity	170,029		178,248
Total liabilities and shareholders' equity	$	186,101	$	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			Q3			Q4			FY			FY
Revenue
Software	$	7.4		$	9.8		$	9.6		$	5.9		$	6.1		$	10.5		$	10.6		$	9.3		$	32.7		$	36.5
Services	5.0			5.0			5.3			5.8			5.9			5.3			5.6			6.3			21.2			23.1
Total	$	12.4		$	14.8		$	15.0		$	11.7		$	12.0		$	15.8		$	16.2		$	15.6		$	53.9		$	59.6
Gross Margin
Software	90.0		%	92.0		%	92.4		%	86.1		%	85.4		%	92.0		%	91.5		%	89.4		%	90.6		%	90.1		%
Services	60.0		%	59.3		%	65.6		%	68.2		%	69.7		%	66.2		%	63.4		%	62.1		%	63.5		%	65.3		%
Total	77.8		%	80.9		%	82.9		%	77.2		%	77.7		%	83.4		%	81.8		%	78.4		%	79.9		%	80.5		%
Income from operations	$	3.8		$	5.5		$	4.9		$	0.7		$	0.9		$	4.0		$	4.1		$	(0.3)		$	14.9		$	8.7
Operating Margin	30.6		%	37.0		%	33.1		%	5.9		%	7.3		%	25.6		%	25.2		%	-1.8		%	27.7		%	14.6		%
Net Income	$	3.0		$	4.4		$	4.1		$	1.0		$	1.2		$	4.2		$	4.0		$	0.5		$	12.5		$	10.0
Diluted Earnings Per Share	$	0.15		$	0.21		$	0.20		$	0.05		$	0.06		$	0.20		$	0.20		$	0.03		$	0.60		$	0.49
Adjusted EBITDA	$	5.3		$	7.2		$	6.5		$	2.5		$	3.0		$	6.2		$	6.5		$	4.9		$	21.5		$	20.6
Adjusted Diluted EPS	$	0.15		$	0.21		$	0.20		$	0.06		$	0.07		$	0.21		$	0.21		$	0.18		$	0.61		$	0.67
Cash Flow from Operations	$	3.6		$	2.6		$	3.8		$	7.9		$	4.7		$	5.5		$	8.5		$	3.1		$	17.9		$	21.9
Revenue Breakdown by Region
Americas	$	8.5		$	9.7		$	11.2		$	8.4		$	8.5		$	10.6		$	10.8		$	11.0		$	37.7		$	40.8
EMEA	3.0			3.7			1.9			1.7			2.1			3.6			3.4			2.6			10.4			11.7
Asia Pacific	0.9			1.4			1.9			1.6			1.3			1.5			2.1			2.1			5.8			7.0
Total	$	12.4		$	14.8		$	15.0		$	11.7		$	12.0		$	15.8		$	16.2		$	15.6		$	53.9		$	59.6
Software Performance Metrics
Average Revenue per Customer (in 000s)
Commercial	$	71.0		$	101.0		$	95.0		$65.0			$68.0			$110.0			$97.0			$88.0
Services Performance Metrics
Backlog	$	15.4		$	17.0		$	16.7		$	15.9		$	15.8		$	15.4		$	15.7		$	19.5

*Numbers may not add due to rounding

4

SIMULATIONS PLUS, INC.

Reconciliation of Adjusted EBITDA to Net Income*

(Unaudited)

(in millions)

	FY 2022								FY 2023								2022		2023
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		FY		FY
Net Income	$	3.0	$	4.4	$	4.1	$	1.0	$	1.2	$	4.2	$	4.0	$	0.5	$	12.5	$	10.0
Excluding:
Interest income and expense, net	(0.1)		(0.1)		(0.1)		(0.4)		(0.8)		(1.0)		(1.1)		(1.3)		(0.7)		(4.1)
Provision for income taxes	0.8		1.1		0.7		(0.1)		0.4		0.9		0.9		(0.5)		2.6		1.7
Depreciation and amortization	0.8		1.0		0.9		0.9		0.9		0.9		0.9		1.1		3.6		3.9
Stock-based compensation	0.6		0.7		0.7		0.7		0.9		1.2		1.1		1.1		2.7		4.2
(Gain) loss on currency exchange	(0.1)		(0.1)		0.2		0.2		—		—		0.3		0.2		0.2		0.5
Impairment of other intangibles	—		—		—		—		—		—		—		0.5		—		0.5
Change in value of contingent consideration	0.1		0.1		—		—		—		—		—		0.7		0.3		0.7
Mergers & Acquisitions expense	—		—		—		0.3		0.3		0.1		0.4		2.5		0.3		3.3
Adjusted EBITDA	$	5.3	$	7.2	$	6.5	$	2.5	$	3.0	$	6.2	$	6.5	$	4.9	$	21.5	$	20.6

*Numbers may not add due to rounding

5

SIMULATIONS PLUS, INC.

Reconciliation of Adjusted Diluted EPS to Diluted EPS*

(Unaudited)

(in millions, except Diluted EPS and Adjusted Diluted EPS)

	FY 2022								FY 2023								2022		2023
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		FY		FY
Net Income (GAAP)	$	3.0	$	4.4	$	4.1	$	1.0	$	1.2	$	4.2	$	4.0	$	0.5	$	12.5	$	10.0
Excluding:
Mergers & Acquisitions expense	—		—		—		0.3		0.3		0.1		0.4		0.9		0.3		1.7
Immunetrics transaction costs	—		—		—		—		—		—		—		2.3		—		2.3
Cognigen trade name write-off	—		—		—		—		—		—		—		0.5		—		0.5
Tax effect on above adjustments	—		—		—		(0.1)		(0.1)		—		(0.1)		(0.5)		(0.1)		(0.7)
Adjusted Net income (Non-GAAP)	$	3.0	$	4.4	$	4.1	$	1.2	$	1.5	$	4.2	$	4.3	$	3.7	$	12.8	$	13.8
Weighted-average common shares outstanding:
Diluted	20.7		20.7		20.8		20.9		20.8		20.5		20.4		20.4		20.7		20.5
Diluted EPS (GAAP)	$	0.15	$	0.21	$	0.20	$	0.05	$	0.06	$	0.20	$	0.20	$	0.03	$	0.60	$	0.49
Adjusted Diluted EPS (Non-GAAP)	$	0.15	$	0.21	$	0.20	$	0.06	$	0.07	$	0.21	$	0.21	$	0.18	$	0.61	$	0.67

*Numbers may not add due to rounding

6

EX-99.2

1 Earnings Call – Q4 - FY23 October 25, 2023

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 successfully integrate the recently acquired Immunetrics business with our own, as well as expenses we may incur in connection therewith, 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 2

▪ Strong revenue and earnings results for fiscal 2023 ▪ Conditions in our market remain similar to what we have seen past several quarters ◦ Small biotech slowdown ◦ Large Pharma spending cautiousness ▪ Integration of Immunetrics going well ▪ Achieved revenue and adjusted diluted earnings per share guidance Fourth Quarter Highlights $0.03 Diluted EPS $16M Revenue 31% Adj. EBITDA as % of Revenue $20M Backlog 3 $0.18 Adjusted Diluted EPS

▪ Overall software revenue growth of 59% ▪ Continued market spending cautiousness ▪ Renewal harmonization essentially complete - results as expected ▪ Renewal rate negatively impacted by several non-renewals due to M&A activity in client base ▪ Good yield on price increase Fourth Quarter Software Highlights +18% +76% ▪ 10 new customers ▪ 11 upsells to existing customers ▪ 22 peer reviewed journal articles published in Q4 ▪ 6 new customers ▪ 5 upsells to existing customers +46% Q4 Revenue Growth Q4 Revenue Growth Q4 Revenue Growth +11% FY Revenue Growth +15% FY Revenue Growth +6% FY Revenue Growth General GastroPlus® MonolixSuite® ADMET Predictor® ▪ 7 new customers ▪ 5 upsells to existing customers ▪ Held highly successful PKAnalix Summer School; educated +450 scientists from 40 countries 4

▪ Overall services revenue growth 8% ▪ Total backlog $20M – projects to be performed within 12 months decreased from 80% to 79% ▪ Successful recruiting quarter (2 new hires, 12 YTD) ▪ 201 total projects worked on during the quarter Fourth Quarter Services Highlights +60% -1% ▪ Q4 saw higher % of fixed price projects impacting growth ▪ Recent trend of larger % of T&M expected to return and continue in FY24 ▪ Temporary impact by lower billable hours ▪ Outlook strong -1% Q4 Revenue Decline Q4 Revenue Growth Q4 Revenue Decline +10% FY Revenue Growth 1% FY Revenue Growth +22% FY Revenue Growth General PKPD QSP/QST PBPK ▪ Benefit from Immunetrics acquisition 5

Capital Allocation Strategy Update ▪ Product R&D ▪ Employee Recruiting and Retention - 27 new hires for FY23, including 13 from Immunetrics ▪ Enterprise Technologies ▪ Acquisitions ▪ Strategic investments and partnerships ▪ Immunetrics acquisition consummated in Q4 ▪ Maintain current level ▪ $0.06 per share paid Feb. 6th ▪ $0.06 per share paid May 1st ▪ $0.06 per share paid August 7th ▪ $0.06 per share payable November 6th ▪ $50M share repurchase program authorized ▪ $20M accelerated share repurchase (ASR) implemented and completed in Q3 INTERNAL INVESTMENT CORPORATE DEVELOPMENT DIVIDENDS PAYMENTS SHARE REPURCHASES 6

Fiscal 2024 Guidance 7 Guidance Total Revenue $66M to $69M Total Revenue Growth 10% to 15% Software Revenue Mix 55% to 60% Services Revenue Mix 40% to 45% Diluted EPS $0.66 to $0.68

Financial Results

50% 50% Software Services Revenue - Q4 (in millions) Software RevenueTotal Revenue Services Revenue +33% +59% +8% 4Q23 Mix 4Q22 Mix 9 $5.3 $5.9 $9.3 $4.5 $5.8 $6.3 $9.8 $11.7 $15.6 Software Services 4Q21 4Q22 4Q23 60% 40% Software Services

61% 39% Software Services 61% 39% Software Services Revenue - Fiscal 2023 (in millions) Software RevenueTotal Revenue Services Revenue +11% +12% +8% FY23 Mix FY22 Mix 10 $27.7 $32.6 $36.5 $18.8 $21.3 $23.1$46.5 $53.9 $59.6Software Services FY21 FY22 FY23

Gross Margin Trends - Q4 11 85% 86% 89% 56% 68% 62% 72% 77% 78% Software Services Total 4Q21 4Q22 4Q23

Gross Margin Trends - Fiscal 2023 12 88% 91% 90% 61% 63% 65% 77% 80% 80% Software Services Total FY21 FY22 FY23

Software Revenue by Product 13 Software Product as % of Software Revenue Q4 FY23 FY23 54% 15% 21% 10% 54% 19% 19% 8% GastroPlus® MonolixSuite® ADMET Predictor® Other GastroPlus® MonolixSuite® ADMET Predictor® Other

Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q4 Commercial Customers Renewal Rates 14 $65 $65 $88 4Q21 4Q22 4Q23 83% 85% 80% 97% 92% 85% Accounts Fees 4Q21 4Q22 4Q23

Avg. Revenue per Customer (in thousands) Software Performance Metrics - Fiscal 2023 Commercial Customers Renewal Rates 15 $121 $110 $126 FY21 FY22 FY23 87% 88% 82% 96% 95% 92% Accounts Fees 4Q21 4Q22 4Q23

Services Revenue by Type 16 Services Type as % of Services Revenue Q4 FY23 FY23 Other 39% 37% 20% 4% PKPD QSP/QST PBPK Other 45% 25% 23% 7% PKPD QSP/QST PBPK

132 129 132 24 37 54 81 114 14562 42 85 299 322 416 PKPD QSP/QST PBPK Other FY21 FY22 FY23 Services Performance Metrics Total Projects Backlog 17 $13 $16 $20 FY21 FY22 FY23

Income Statement Summary - Q4 18 (in millions, except Diluted EPS and Adjusted Diluted EPS) 4Q23 % of Rev 4Q22 % of Rev Revenue $15.6 100% $11.7 100% Revenue growth 33% 19% Gross profit 12.3 78% 9.1 77% R&D 1.1 7% 0.8 7% SG&A 11.5 73% 7.6 65% Total operating exp 12.5 80% 8.4 71% Income from operations (0.3) 2% 0.7 6% Income before income taxes 0.1 —% 0.9 8% Income taxes 0.5 3% 0.1 1% Effective tax rate 674% 8% Net income $0.5 3% $1.0 8% Diluted earnings per share (in dollars) 0.03 0.05 Adjusted EBITDA $4.9 31% $2.5 22% Excluded items $3.1 $0.3 Adjusted Diluted EPS 0.18 0.06

Income Statement Summary - Fiscal 2023 19 FY23 % of Rev FY22 % of Rev Revenue $59.6 100% $53.9 100% Revenue growth 11% 16% Gross profit 47.9 80% 43.1 80% R&D 4.5 8% 3.2 6% SG&A 34.7 58% 25.0 46% Total operating exp 39.2 66% 28.2 52% Income from operations 8.7 15% 14.9 28% Income before income taxes 11.7 20% 15.1 28% Income taxes (1.7) 3% (2.6) 5% Effective tax rate 15% 17% Net income $10.0 17% $12.5 23% Diluted earnings per share (in dollars) 0.49 0.60 Adjusted EBITDA $20.6 35% $21.5 40% Excluded items $3.8 $0.3 Adjusted Diluted EPS 0.67 0.61 (in millions, except Diluted EPS and Adjusted Diluted EPS)

Balance Sheet Summary 20 August 31, 2023 August 31, 2022 Cash and short-term investments $115.5 $128.2 Total current assets 130.4 146.8 Total assets $186.1 $188.4 Current liabilities 12.0 7.7 Long-term liabilities 4.1 2.4 Total liabilities 16.1 10.1 Shareholders’ equity 170.0 178.2 Total liabilities and shareholders’ equity $186.1 $188.4 (in millions)

STRONG FY 23 ACHIEVEMENTS IN LINE WITH GUIDANCE Delivering on our commitment to scientific leadership Challenges being addressed 21 • Internal R&D investment • Expanding industry and regulatory partnerships • MIDD+ – 3rd annual SLP sponsored conference Enhancing our client facing capabilities Focus on Capital Allocation CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET Conclusion • Growth and maturity of business development team • Focus on expanding our local coverage of EU market • Focus on supporting accelerated growth in distributor network • Software renewal timing changes on track • Small biotech churn • General market dynamics: inflation, recession & forex • ASR program has been completed • Immunetrics acquisition completed in Q4

Adjusted EPS Non-GAAP Reconciliation* 22 FY 2022 FY 2023 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY Net Income (GAAP) $3.0 $4.4 $4.1 $1.0 $1.2 $4.2 $4.0 $0.5 $12.5 $10.0 Excluding: Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 0.9 0.3 1.7 Immunetrics transaction costs — — — — — — — 2.3 — 2.3 Cognigen trade name write-off — — — — — — — 0.5 — 0.5 Tax effect on above adjustments — — — (0.1) (0.1) — (0.1) (0.5) (0.1) (0.7) Adjusted Net income (Non-GAAP) $3.0 $4.4 $4.1 $1.2 $1.5 $4.2 $4.3 $3.7 $12.8 $13.8 Weighted-average common shares outstanding: Diluted 20.7 20.7 20.8 20.9 20.8 20.5 20.4 20.4 20.7 20.5 Diluted EPS (GAAP) $0.15 $0.21 $0.20 $0.05 $0.06 $0.20 $0.20 $0.03 $0.60 $0.49 Adjusted Diluted EPS (Non-GAAP) $0.15 $0.21 $0.20 $0.06 $0.07 $0.21 $0.21 $0.18 $0.61 $0.67 (in millions, except Diluted EPS and Adjusted Diluted EPS) *Numbers may not add due to rounding

XML

Cover	Oct. 25, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 25, 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