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 3, 2024

(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 3, 2024, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its second quarter of fiscal year 2024 ended February 29, 2024. 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 3, 2024, the Company held an investor conference call reporting its financial results for its second quarter of fiscal year 2024 ended February 29, 2024. 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 (together, the “Exhibits”), 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 in the Exhibits 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 3, 2024.
99.3	PowerPoint presentation used at the Investor Conference Call on April 3, 2024.
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 3, 2024	By: /s/ Will Frederick
	Will Frederick
	Chief Financial Officer and Chief Operating Officer

2

EX-99.1

Exhibit 99.1

Simulations Plus Reports Second Quarter Fiscal 2024 Financial Results

Total revenue of $18.3 million and diluted earnings per share (EPS) of $0.20

Maintains full-year revenue guidance of $66 to $69 million (+10-15%) and EPS guidance of $0.66 to $0.68

LANCASTER, CA, April 3, 2024 – Simulations Plus, Inc. (NASDAQ: SLP) (“Simulations Plus”), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its second quarter fiscal 2024, ended February 29, 2024.

Second Quarter 2024 Financial Highlights (compared to second quarter 2023)

•Total revenue increased 16% to $18.3 million

•Software revenue increased 11% to $11.6 million, representing 63% of total revenue

•Services revenue increased 27% to $6.7 million, representing 37% of total revenue

•Gross profit increased to $13.2 million; gross margin was 72%

•Adjusted EBITDA of $7.1 million, representing 39% of total revenue

•Net income of $4.0 million and diluted earnings per share (EPS) of $0.20 versus net income of $4.2 million and diluted EPS of $0.20

Six Months 2024 Financial Highlights (compared to six months 2023)

•Total revenue increased 18% to $32.8 million

•Software revenue increased 16% to $19.2 million

•Services revenue increased 22% to $13.6 million

•Gross profit increased 3% to $23.1 million; gross margin was 70%

•Adjusted EBITDA of $10.5 million, representing 32% of total revenue

•Net income of $6.0 million and diluted EPS of $0.29 versus net income of $5.4 million and diluted EPS of $0.26

Management Commentary

“Our second quarter results reflected strong performance in both our software and services segments,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Total revenue increased 16%, driven by higher software revenues in our Clinical Pharmacology & Pharmacometrics (CPP) business unit and the Cheminformatics business unit, whose ADMET Predictor® platform continued to gain adoption and added another new Artificial Intelligence (AI) biotech customer in the second quarter. Services revenue growth was primarily driven by higher revenues in our Quantitative Systems Pharmacology (QSP) and Physiologically Based Pharmacokinetics (PBPK) business units.

“Since the beginning of calendar 2024, we have seen encouraging signs in biotech funding with notable strength from biotech companies that have candidates undergoing clinical trials. Regarding large pharmaceutical companies, funding continues to vary depending on their near-term direction and business outlook, but the overall market is healthier compared to a year ago. For the balance of 2024, we remain cautiously optimistic that demand for our comprehensive suite of modeling and simulation software products and services will continue to gain momentum as the funding environment improves.

“During the quarter, we also launched our corporate development initiative to intensify our focus on strategic investments and partnerships in early-state technology companies. While strategic acquisitions to complement

organic growth remain a priority, we believe there are hidden gems among early-stage companies developing high-potential technologies. We believe that our ability to identify and evaluate commercial applications for emerging technologies will complement our own R&D efforts and position Simulations Plus at the forefront of innovation.

“Our strong performance in the first half of the year, combined with market improvement, puts us on track to achieve our guidance for fiscal 2024. We entered the third quarter with a healthy pipeline and a solid balance sheet, and we are confident that Simulations Plus is firmly positioned to advance its critical role in drug development workflow. Our unwavering focus remains on delivering disciplined growth and achieving 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 May 6, 2024, to shareholders of record as of April 29, 2024. 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 website to read our 2023 ESG update.

Webcast and Conference Call Details

Shawn O’Connor, chief executive officer, and Will Frederick, chief financial and operations 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 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. 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 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| X| 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:

Lisa Fortuna

Financial Profiles

310-622-8251

slp@finprofiles.com

Renee Bouche

Simulations Plus Investor Relations

661-723-7723

renee.bouche@simulations-plus.com

1

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
(in thousands, except per common share amounts)	February 29, 2024		February 28, 2023		February 29, 2024		February 28, 2023
Revenues
Software	$	11,614	$	10,487	$	19,203	$	16,561
Services	6,691		5,263		13,602		11,153
Total revenues	18,305		15,750		32,805		27,714
Cost of revenues
Software	1,348		843		2,339		1,728
Services	3,736		1,777		7,397		3,563
Total cost of revenues	5,084		2,620		9,736		5,291
Gross profit	13,221		13,130		23,069		22,423
Operating expenses
Research and development	1,312		1,317		2,529		2,483
Sales and marketing	1,949		1,730		3,938		3,215
General and administrative	5,518		6,049		11,200		11,813
Total operating expenses	8,779		9,096		17,667		17,511
Income from operations	4,442		4,034		5,402		4,912
Other income	810		1,034		2,256		1,774
Income before income taxes	5,252		5,068		7,658		6,686
Provision for income taxes	(1,223)		(894)		(1,684)		(1,267)
Net income	$	4,029	$	4,174	$	5,974	$	5,419
Earnings per share
Basic	$	0.20	$	0.21	$	0.30	$	0.27
Diluted	$	0.20	$	0.20	$	0.29	$	0.26
Weighted-average common shares outstanding
Basic	19,975		20,112		19,961		20,200
Diluted	20,315		20,529		20,288		20,657
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	(15)		(23)		(69)		30
Comprehensive income	$	4,014	$	4,151	$	5,905	$	5,449

2

SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)		(Audited)
(in thousands, except share and per share amounts)	February 29, 2024		August 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	37,031	$	57,523
Accounts receivable, net of allowance for credit losses of $30 and $46	13,114		10,201
Prepaid income taxes	1,364		804
Prepaid expenses and other current assets	4,975		3,904
Short-term investments	71,473		57,940
Total current assets	127,957		130,372
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $17,962 and $17,199	12,333		11,335
Property and equipment, net	843		671
Operating lease right-of-use assets	1,062		1,247
Intellectual property, net of accumulated amortization of $10,117 and $9,301	7,873		8,689
Other intangible assets, net of accumulated amortization of $2,606 and $2,107	12,935		12,825
Goodwill	19,099		19,099
Long-term investments	9,024		—
Deferred tax assets	2,323		1,438
Other assets	524		425
Total assets	$	193,973	$	186,101
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	360	$	144
Accrued compensation	3,184		4,392
Accrued expenses	2,992		659
Contracts payable	5,110		3,250
Operating lease liability - current portion	425		442
Deferred revenue	2,457		3,100
Total current liabilities	14,528		11,987
Long-term liabilities
Operating lease liability	607		755
Contracts payable – net of current portion	1,800		3,330
Total liabilities	16,935		16,072
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; 19,983,703 and 19,937,961 shares issued and outstanding	148,472		144,974
Retained earnings	28,776		25,196
Accumulated other comprehensive loss	(210)		(141)
Total shareholders' equity	177,038		170,029
Total liabilities and shareholders' equity	$	193,973	$	186,101

3

SIMULATIONS PLUS, INC.

Trended Financial Information*

(Unaudited)

(in millions except earnings per share amounts)

	FY 2022												FY 2023												FY 2024						FY 2022			FY 2023			FY 2024
	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4			Q1			Q2			Full Year			Full Year			YTD
Revenue
Software	$	7.4		$	9.8		$	9.6		$	5.9		$	6.1		$	10.5		$	10.6		$	9.3		$	7.6		$	11.6		$	32.7		$	36.5		$	19.2
Services	5.0			5.0			5.3			5.8			5.9			5.3			5.6			6.3			6.9			6.7			21.2			23.1			13.6
Total	$	12.4		$	14.8		$	15.0		$	11.7		$	12.0		$	15.8		$	16.2		$	15.6		$	14.5		$	18.3		$	53.9		$	59.6		$	32.8
Gross Margin
Software	90.0		%	92.0		%	92.4		%	86.1		%	85.4		%	92.0		%	91.5		%	89.4		%	86.9		%	88.4		%	90.6		%	90.1		%	87.8		%
Services	60.0		%	59.3		%	65.6		%	68.2		%	69.7		%	66.2		%	63.4		%	62.1		%	47.0		%	44.2		%	63.5		%	65.3		%	45.6		%
Total	77.8		%	80.9		%	82.9		%	77.2		%	77.7		%	83.4		%	81.8		%	78.4		%	67.9		%	72.2		%	79.9		%	80.5		%	70.3		%
Income from operations	$	3.8		$	5.5		$	4.9		$	0.7		$	0.9		$	4.0		$	4.1		$	(0.3)		$	1.0		$	4.4		$	14.9		$	8.7		$	5.4
Operating Margin	30.6		%	37.0		%	33.1		%	5.9		%	7.3		%	25.6		%	25.2		%	-1.8		%	6.6		%	24.3		%	27.7		%	14.6		%	16.5		%
Net Income	$	3.0		$	4.4		$	4.1		$	1.0		$	1.2		$	4.2		$	4.0		$	0.5		$	1.9		$	4.0		$	12.5		$	10.0		$	6.0
Diluted Earnings Per Share	$	0.15		$	0.21		$	0.20		$	0.05		$	0.06		$	0.20		$	0.20		$	0.03		$	0.10		$	0.20		$	0.60		$	0.49		$	0.29
Adjusted EBITDA	$	5.3		$	7.2		$	6.5		$	2.5		$	3.0		$	6.2		$	6.5		$	4.9		$	3.4		$	7.1		$	21.5		$	20.6		$	10.5
Adjusted Diluted EPS	$	0.15		$	0.21		$	0.20		$	0.06		$	0.07		$	0.21		$	0.21		$	0.18		$	0.10		$	0.20		$	0.61		$	0.67		$	0.10
Cash Flow from Operations	$	3.6		$	2.6		$	3.8		$	7.9		$	4.7		$	5.5		$	8.5		$	3.1		$	0.2		$	5.8		$	17.9		$	21.9		$	6.0
Revenue Breakdown by Region
Americas	$	8.5		$	9.7		$	11.2		$	8.4		$	8.5		$	10.6		$	10.8		$	11.0		$	10.9		$	12.5		$	37.7		$	40.8		$	23.4
EMEA	3.0			3.7			1.9			1.7			2.1			3.6			3.4			2.6			2.3			4.7			10.4			11.7			7.0
Asia Pacific	0.9			1.4			1.9			1.6			1.3			1.5			2.1			2.1			1.3			1.2			5.8			7.0			2.5
Total	$	12.4		$	14.8		$	15.0		$	11.7		$	12.0		$	15.8		$	16.2		$	15.6		$	14.5		$	18.3		$	53.9		$	59.6		$	32.8
Software Performance Metrics
Average Revenue per Customer (in thousands)
Commercial	$	71		$	101		$	95		$	65		$	68		$	110		$	97		$	88		$	79		$	113
Services Performance Metrics
Backlog (in millions)	$	15.4		$	17.0		$	16.7		$	15.9		$	15.8		$	15.4		$	15.7		$	19.5		$	18.9		$	18.0

*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								FY 2024				FY 2022		FY 2023		FY 2024
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Full Year		Full Year		YTD
Net Income	$	3.0	$	4.4	$	4.1	$	1.0	$	1.2	$	4.2	$	4.0	$	0.5	$	1.9	$	4.0	$	12.5	$	10.0	$	6.0
Excluding:
Interest income and expense, net	(0.1)		(0.1)		(0.1)		(0.4)		(0.8)		(1.0)		(1.1)		(1.3)		(1.3)		(1.3)		(0.7)		(4.1)		(2.6)
Provision for income taxes	0.8		1.1		0.7		(0.1)		0.4		0.9		0.9		(0.5)		0.5		1.2		2.6		1.7		1.7
Depreciation and amortization	0.8		1.0		0.9		0.9		0.9		0.9		0.9		1.1		1.1		1.1		3.6		3.9		2.2
Stock-based compensation	0.6		0.7		0.7		0.7		0.9		1.2		1.1		1.1		1.3		1.6		2.7		4.2		2.9
(Gain) loss on currency exchange	(0.1)		(0.1)		0.2		0.2		—		—		0.3		0.2		—		0.1		0.2		0.5		0.1
Impairment of other intangibles	—		—		—		—		—		—		—		0.5		—		—		—		0.5		—
Change in value of contingent consideration	0.1		0.1		—		—		—		—		—		0.7		(0.1)		0.4		0.3		0.7		0.3
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	$	3.4	$	7.1	$	21.5	$	20.6	$	10.5

*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								FY 2024				FY 2022		FY 2023		FY 2024
	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4		Q1		Q2		Full Year		Full Year		YTD
Net Income (GAAP)	$	3.0	$	4.4	$	4.1	$	1.0	$	1.2	$	4.2	$	4.0	$	0.5	$	1.9	$	4.0	$	12.5	$	10.0	$	6.0
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	$	1.9	$	4.0	$	12.8	$	13.8	$	6.0
Weighted-average common shares outstanding:
Diluted	20.7		20.7		20.8		20.9		20.8		20.5		20.4		20.4		20.3		20.3		20.7		20.5		20.3
Diluted EPS (GAAP)	$	0.15	$	0.21	$	0.20	$	0.05	$	0.06	$	0.20	$	0.20	$	0.03	$	0.10	$	0.20	$	0.60	$	0.49	$	0.29
Adjusted Diluted EPS (Non-GAAP)	$	0.15	$	0.21	$	0.20	$	0.06	$	0.07	$	0.21	$	0.21	$	0.18	$	0.10	$	0.20	$	0.61	$	0.67	$	0.29

*Numbers may not add due to rounding

6

EX-99.2

1 Earnings Call – Q2 - FY24 April 3, 2024

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, 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

Second Quarter Highlights $0.20 Diluted EPS $18.3M Revenue 39% Adj. EBITDA as % of Revenue $18.0M Backlog 3 CURRENT PERIOD Prior Year Comparison (2Q23) $15.8M Revenue $0.20 Diluted EPS 39% Adj. EBITDA as % of Revenue $15.4M Backlog

▪ Overall software revenue growth of 11% ▪ Good renewal rate, upsell and new logo activity ▪ Active and strong pipeline Second Quarter Software Highlights +38% +2% ▪ 6 new customers ▪ 9 upsells to existing customers ▪ 8 new customers ▪ 18 upsells to existing customers +14% Q2 Revenue Growth Q2 Revenue Growth Q2 Revenue Growth General GastroPlus® (Physiologically Based Pharmacokinetics) MonolixSuite® (Clinical Pharmacology & Pharmacometrics) ADMET Predictor® (Cheminformatics) ▪ 7 new customers ▪ 10 upsells to existing customers 4 +21% +11% +10% YTD Revenue Growth YTD Revenue Growth YTD Revenue Growth

▪ Overall services revenue growth of 27% ▪ Total backlog $18.0M – strong as we enter second half of fiscal 2024 ▪ Good momentum into second half fiscal 2024 ▪ Continued volatility for project completion due to data delays and drug program start/stop decisions Second Quarter Services Highlights +78% +10% ▪ Solid performance despite impact of volatility Q2 Revenue Growth Q2 Revenue Growth General Clinical Pharmacology & Pharmacometrics (CPP) Quantitative Systems Pharmacology (QSP) ▪ Benefiting from immunology and cancer model projects 5 Physiologically Based Pharmacokinetics (PBPK) ▪ Strong performance after sluggish first quarter+39% Q2 Revenue Growth +89% +11% YTD Revenue Growth YTD Revenue Growth +11% YTD Revenue Growth

Financial Results

63% 37% Software Services 67% 33% Software Services Revenue - Q2 FY24 (in millions) Software RevenueTotal Revenue Services Revenue +16% +11% +27% 2Q24 Mix 2Q23 Mix 7 $9.8 $10.5 $11.6 $5.0 $5.3 $6.7 $14.8 $15.8 $18.3 Software Services 2Q22 2Q23 2Q24

59% 41% Software Services 60% 40% Software Services Revenue - YTD (in millions) Software RevenueTotal Revenue Services Revenue +18% +16% +22% FY24 Mix FY23 Mix 8 $17.1 $16.6 $19.2 $10.1 $11.2 $13.6 $27.2 $27.7 $32.8 Software Services FY22 FY23 FY24

61% 39% Software Services 59% 41% Software Services Revenue - Trailing Twelve Months (TTM) (in millions) Software RevenueTotal Revenue Services Revenue +19% +22% +14% 2Q24 Mix 2Q23 Mix 9 $30.8 $32.1 $39.2 $19.1 $22.3 $25.5$49.8 $54.4 $64.7Software Services 2Q22 2Q23 2Q24

Gross Margin Trends - Q2 FY24 10 92% 92% 88% 59% 66% 44% 81% 83% 72% Software Services Total 2Q22 2Q23 2Q24 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense. 1

Gross Margin Trends - YTD 11 91% 90% 88% 60% 68% 46% 79% 81% 70% Software Services Total FY22 FY23 FY24 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense. 1

Gross Margin Trends - TTM 12 90% 90% 89% 59% 68% 54% 78% 81% 75% Software Services Total 2Q22 2Q23 2Q24 1 Decrease in gross margin was partially due to a shift in reporting effective 1Q’24, where certain cost items are reflected in cost of revenues for services that were previously in SG&A expense. 1

18% 54% 4% 24% Software Revenue by Business Unit 13 Software Business Unit as % of Software Revenue 2Q24 17% 53% 7% 23% CHEM PBPK QSP CPP YTD 19% 55% 6% 20% TTM

Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q2 FY24 Commercial Customers Renewal Rates 14 $101 $110 $113 2Q22 2Q23 2Q24 87% 80% 85% 96% 94% 94% Accounts Fees 2Q22 2Q23 2Q24

Avg. Revenue per Customer (in thousands) Software Performance Metrics - TTM Commercial Customers Renewal Rates 15 $85 $85 $95 2Q22 2Q23 2Q24 86% 83% 84% 94% 92% 93% Accounts Fees 2Q22 2Q23 2Q24

25% 27% 43% 5% Services Revenue by Business Unit 16 Services Business Unit as % of Services Revenue 2Q24 22% 29% 45% 4% PBPK QSP CPP REG YTD 22% 30% 43% 5% TTM

$17.0 $15.4 $18.0 2Q22 2Q23 2Q24 72 72 59 25 20 24 63 63 77 21 28 16 181 183 176 PBPK QSP CPP REG 2Q22 2Q23 2Q24 Services Performance Metrics Total Projects Backlog 17

Income Statement Summary - Q2 FY24 18 (in millions, except Diluted EPS) 2Q24 % of Rev 2Q23 % of Rev Revenue $18.3 100% $15.8 100% Revenue growth 16% 6% Gross profit 13.2 72% 13.1 83% R&D 1.3 7% 1.3 8% S&M 1.9 11% 1.7 11% G&A 5.5 30% 6.0 38% Total operating exp 8.8 48% 9.1 58% Income from operations 4.4 24% 4.0 26% Income before income taxes 5.3 29% 5.1 32% Income taxes (1.2) 7% (0.9) 6% Effective tax rate 23% 18% Net income $4.0 22% $4.2 27% Diluted earnings per share $0.20 $0.20 Adjusted EBITDA $7.1 39% $6.2 39%

Income Statement Summary - YTD 19 2Q24 % of Rev 2Q23 % of Rev Revenue $32.8 100% $27.7 100% Revenue growth 18% 2% Gross profit 23.1 70% 22.4 81% R&D 2.5 8% 2.5 9% S&M 3.9 12% 3.2 12% G&A 11.2 34% 11.8 43% Total operating exp 17.7 54% 17.5 63% Income from operations 5.4 16% 4.9 18% Income before income taxes 7.7 23% 6.7 24% Income taxes (1.7) 5% (1.3) 5% Effective tax rate 22% 19% Net income $6.0 18% $5.4 20% Diluted earnings per share $0.29 $0.26 Adjusted EBITDA $10.5 32% $9.2 33% (in millions, except Diluted EPS)

Balance Sheet Summary 20 February 29, 2024 August 31, 2023 Cash and short-term investments $108.5 $115.5 Total current assets 128.0 130.4 Long-term investments* $9.0 $— Total assets $194.0 $186.1 Current liabilities 14.5 12.0 Long-term liabilities 2.4 4.1 Total liabilities 16.9 16.1 Shareholders’ equity 177.0 170.0 Total liabilities and shareholders’ equity $194.0 $186.1 (in millions) *Investments greater than twelve months, do not exceed eighteen months and can readily be converted to cash when needed.

Fiscal 2024 Guidance 21 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

STRONG START TO FISCAL 2024 Delivering on our commitment to scientific leadership Challenges being addressed 22 • Internal R&D investment • Expanding industry and regulatory partnerships Enhancing our client facing capabilities Focus on Capital Allocation CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET Conclusion • Appointed new CRO to lead sales effort • Reorganized operations to put clients first • Focus on supporting accelerated growth in distributor network • Small biotech churn • General market dynamics: inflation, recession & forex • ASR program has been completed • Corporate development initiative

Adjusted EBITDA Non-GAAP Reconciliation* 23 FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Full Year Full Year YTD Net Income $3.0 $4.4 $4.1 $1.0 $1.2 $4.2 $4.0 $0.5 $1.9 $4.0 $12.5 $10.0 $6.0 Excluding: Interest income and expense, net (0.1) (0.1) (0.1) (0.4) (0.8) (1.0) (1.1) (1.3) (1.3) (1.3) (0.7) (4.1) (2.6) Provision for income taxes 0.8 1.1 0.7 (0.1) 0.4 0.9 0.9 (0.5) 0.5 1.2 2.6 1.7 1.7 Depreciation and amortization 0.8 1.0 0.9 0.9 0.9 0.9 0.9 1.1 1.1 1.1 3.6 3.9 2.2 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 1.3 1.6 2.7 4.2 2.9 (Gain) loss on currency exchange (0.1) (0.1) 0.2 0.2 — — 0.3 0.2 — 0.1 0.2 0.5 0.1 Impairment of other intangibles — — — — — — — 0.5 — — — 0.5 — Change in value of contingent consideration 0.1 0.1 — — — — — 0.7 (0.1) 0.4 0.3 0.7 0.3 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 $3.4 $7.1 $21.5 $20.6 $10.5 (in millions) *Numbers may not add due to rounding

Investor Relations Contacts: Lisa Fortuna Financial Profiles 310-622-8234 slp@finprofiles.com Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com

XML

Cover	Apr. 03, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 03, 2024
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