SEGMENT AND GEOGRAPHIC REPORTING

3 Months Ended

Nov. 30, 2021

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC REPORTING

NOTE 10: SEGMENT AND GEOGRAPHIC REPORTING

We account for segments and geographic revenue in accordance with guidance issued by the FASB. Our reportable segments are strategic business units that offer different products and services.

Results for each business unit segment and consolidated results for the three months ended November 30, 2021 and 2020 were as follows:

(in thousands)	Three Months Ended November 30, 2021
	Software		Services		Total
Revenue	$	7,362	$	5,055	$	12,417
Cost of revenue		735		2,021		2,756
Gross profit	$	6,627	$	3,034	$	9,661
Gross margin		90%		60%		78%

Our software business and services business represented 59% and 41% of total revenue, respectively, for the three months ended November 30, 2021.

(in thousands)	Three Months Ended November 30, 2020
	Software		Services		Total
Revenue	$	6,212	$	4,489	$	10,701
Cost of revenue		812		1,621		2,433
Gross profit	$	5,400	$	2,868	$	8,268
Gross margin		87%		64%		77%

Our software business and services business represented 58% and 42% of total revenue, respectively, for the three months ended November 30, 2020. 

Revenue by product and consolidated revenue for the three months ended November 30, 2021 and 2020 were as follows: 

(in thousands)	November 30,
	2021			2020
Software revenue
GastroPlus	$	3,985	54%	$	3,336	54%
MonolixSuite		1,570	21		1,165	19
ADMET Predictor		1,459	20		1,172	19
Other		348	5		539	8
Total software revenue	$	7,362	100%	$	6,212	100%
Services revenue
PKPD	$	2,326	46%	$	2,245	50%
QSP/QST		1,466	29		1,122	25
PBPK		859	17		628	14
Other		404	8		494	11
Total services revenue	$	5,055	100%	$	4,489	100%
Total consolidated revenue	$	12,417		$	10,701

Revenue by division and consolidated revenue for the three months ended November 30, 2021 and 2020 were as follows:

(in thousands)	November 30,
	2021			2020
Simulations Plus	$	6,515	52%	$	5,432	51%
Cognigen		2,503	20		2,668	25
DILIsym		1,717	14		1,372	13
Lixoft		1,682	14		1,229	11
Total	$	12,417	100%	$	10,701	100%

In addition, we allocate revenue to geographic areas based on the locations of our customers. Revenue for each geographical area and consolidated revenue for the three months ended November 30, 2021 and 2020 were as follows: 

(in thousands)	November 30,
	2021			2020
Americas	$	8,459	68%	$	7,123	67%
EMEA		3,025	24		2,478	23
Asia Pacific		933	8		1,100	10
Total	$	12,417	100%	$	10,701	100%