Pharmaceutical modeling and simulation software company Simulations Plus has made up ground on total revenue and services revenue, according to its third quarter earnings report. The company attributed the increases to a backlog the company built over the past few quarters.
Simulations reported increases across the board in services and software revenue, marking a 17% increase in total revenue to $15 million.
“Looking at our software business, our efforts to expand our addressable market continued to pay off as we saw increased upsells, continued expansion in Asia, and deeper penetration of modeling and simulation with smaller biotech firms,” Shawn O’Connor, chief executive officer of Simulations Plus, said in a statement.
Year over year, total revenue increased by 15% to $42.2 million for the Lancaster-based company. Simulation’s price per share has risen $10.92 or 25.32%, in the last month, not long after the company’s stock experienced a significant drop in mid-June.
“Now that we’ve completed our third quarter and have one quarter remaining in the fiscal year, we are reiterating our full-year revenue guidance at $52-53 million and tightening the growth rate to 12-15%,” O’Connor added. “Our fourth quarter has historically been impacted by seasonality related to our industry in the summer months and we expect this year to be no different.”
Simulations expects software revenue to exceed 60% of total revenue for the fiscal year.
Shares of Simulations closed down more than 1% today, closing at $54.04 per share.