Certara Inc (CERT) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Certara Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 Certara 2022 年第四季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, David Deuchler, Investor Relations. Please go ahead.

我現在想把會議交給今天的演講者，投資者關係部的 David Deuchler。請繼續。

Good afternoon, everyone. Thank you all for participating in today's conference call. On the call from Certara, we have William Feehery, Chief Executive Officer; and Andrew Shimek, Chief Financial Officer.

大家下午好。感謝大家參加今天的電話會議。在 Certara 的電話中，我們有首席執行官 William Feehery；首席財務官 Andrew Shimek。

Earlier today, Certara released financial results for the quarter ended December 31, 2022. A copy of the press release is available on the company's website.

今天早些時候，Certara 發布了截至 2022 年 12 月 31 日的季度財務業績。新聞稿的副本可在公司網站上獲取。

Before we begin, I would like to remind you that management will make statements during this call that will include forward-looking statements, and actual results may differ materially from those expressed or implied in the forward-looking statements. Please refer to Slide 2 in the accompanying materials for additional information which you can find on the company's Investor Relations site.

在我們開始之前，我想提醒您，管理層將在本次電話會議期間發表聲明，其中包括前瞻性聲明，實際結果可能與前瞻性聲明中明示或暗示的結果存在重大差異。有關更多信息，請參閱隨附材料中的幻燈片 2，您可以在公司的投資者關係網站上找到這些信息。

In the remarks or responses to questions, may mention some non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are available in the recent earnings press release available on the company's website. For additional information, please refer to the reconciliation tables in the accompanying materials.

在評論或對問題的回答中，可能會提及一些非 GAAP 財務指標。這些非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬可在公司網站上最近發布的收益新聞稿中找到。如需更多信息，請參閱隨附材料中的調節表。

This conference call contains time-sensitive information and is accurate only as of the live broadcast today, March 1, 2023. Certara disclaims any obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise.

此電話會議包含時間敏感的信息，並且僅在 2023 年 3 月 1 日今天的現場直播時準確無誤。除法律要求外，Certara 不承擔更新或修改任何財務預測或前瞻性陳述的任何義務，無論是因為新信息、未來事件或其他信息。

And with that, I'll turn the call over to William.

有了這個，我會把電話轉給威廉。

Thank you, David. Good afternoon, everyone, and thank you for joining Certara's fourth quarter and full year earnings call. Andrew and I will start with prepared remarks, and then we will take questions. We are pleased with the strong finish to 2022, and we have made significant progress across our key initiatives throughout the year. We believe we are well positioned for 2023 and beyond as we execute Certara's mission to disrupt drug innovation with our proprietary biosimulation technology and services.

謝謝你，大衛。大家下午好，感謝您參加 Certara 的第四季度和全年收益電話會議。安德魯和我將從準備好的發言開始，然後我們將回答問題。我們對 2022 年的強勁表現感到滿意，並且我們在全年的關鍵舉措中取得了重大進展。我們相信，我們在 2023 年及以後處於有利地位，因為我們執行 Certara 的使命，即通過我們專有的生物模擬技術和服務顛覆藥物創新。

At Certara, we are focused on safely accelerating the drug development process by lowering the cost and increasing the probability of success in trials to improve the health and well-being of millions of people globally.

在 Certara，我們專注於通過降低成本和增加試驗成功的可能性來安全地加速藥物開發過程，以改善全球數百萬人的健康和福祉。

Before we get into the details of the quarter, I would like to announce the appointment of John Gallagher as Certara's new CFO effective April 1. John is approving finance executive with experience as a public company CFO at Cue Health and a prior career in senior finance roles at Becton Dickinson, GE and Ford. After 8 successful years as CFO of Certara, Andrew Schemick has decided that this is a good time for him to pursue other career goals, and I am very pleased that he will be staying with Certara in a key operational and strategic role after helping with the transition to John.

在我們了解本季度的細節之前，我想宣布任命 John Gallagher 為 Certara 的新首席財務官，該任命將於 4 月 1 日生效。約翰正在批准財務主管，他曾在 Cue Health 擔任上市公司首席財務官，之前曾在高級財務部門工作過在 Becton Dickinson、通用電氣和福特擔任職務。在擔任 Certara 首席財務官成功 8 年後，Andrew Schemick 認為現在是他追求其他職業目標的好時機，我很高興他將在幫助 Certara 完成關鍵運營和戰略角色後留在 Certara過渡到約翰。

For the full year of 2022, our revenue and profitability metrics exceeded the upper end of our guidance ranges provided in August. Reported revenue of $336 million grew by 17% year-over-year and 10% year-over-year, excluding Pinnacle 21's contribution. We are encouraged by the pace of adoption and expanding awareness of Certara biosimulation platform worldwide. The strong demand for biosimulation in 2022 contrasted with the underperformance of our regulatory business, which resulted in total company growth, excluding Pinnacle 21 in the low double digits compared with our historical rates of mid-teens.

對於 2022 年全年，我們的收入和盈利能力指標超過了我們 8 月份提供的指導範圍的上限。報告收入為 3.36 億美元，同比增長 17%，同比增長 10%，不包括 Pinnacle 21 的貢獻。我們對 Certara 生物模擬平台在全球範圍內的採用速度和不斷擴大的知名度感到鼓舞。 2022 年對生物模擬的強勁需求與我們監管業務的表現不佳形成鮮明對比，這導致公司整體增長，不包括 Pinnacle 21，與我們的歷史增長率相比，兩位數較低。

I am optimistic that our regulatory business has turned a corner, and we are seeing early indications of the changes we made in the second half of 2022 will translate into better performance over time. Andrew will discuss more about the company's financial outlook, but we expect improved performance in our regulatory business in 2022.

我對我們的監管業務已經轉危為安感到樂觀，我們看到早期跡象表明我們在 2022 年下半年所做的改變將隨著時間的推移轉化為更好的表現。安德魯將更多地討論公司的財務前景，但我們預計 2022 年我們監管業務的表現會有所改善。

Pinnacle 21 has been operating within Certara for over a year, and we are pleased with the contributions from the Pinnacle 21 team. Pinnacle 21 delivered at or above all our expectations in 2022. And we are excited about what the team has been able to do with the platform headed into 2023. We continue to reach new customers with our end-to-end platform and finish 2022 with 2,376 customers. Our land and expand strategy delivered solid growth among existing customers in 2022 as well with about 50% of total company revenue generated from the top 50 global therapeutics companies.

Pinnacle 21 已經在 Certara 內運營了一年多，我們對 Pinnacle 21 團隊的貢獻感到滿意。 Pinnacle 21 在 2022 年的交付達到或超過了我們的所有預期。我們對團隊在 2023 年之前能夠使用該平台所做的事情感到興奮。我們將繼續通過我們的端到端平台吸引新客戶，並在 2022 年結束2,376 位客戶。我們的土地和擴張戰略在 2022 年實現了現有客戶的穩健增長，全球 50 強治療公司產生的總收入約占公司總收入的 50%。

As of December 31, 2022, we had 370 customers with an annual contract value of more than $100,000, representing growth of 24% year-over-year. We had 57 customers with an annual contract value of more than $1 million, up 12% from 2021. Our fourth quarter revenue was $86.6 million, representing 15% year-over-year growth on a reported basis and 18% on a constant currency basis. Revenue growth was driven by software and biosimulation services as we continue to see strong demand across all customer categories.

截至 2022 年 12 月 31 日，我們擁有 370 家客戶，年度合同價值超過 100,000 美元，同比增長 24%。我們有 57 家客戶的年度合同價值超過 100 萬美元，比 2021 年增長 12%。我們第四季度的收入為 8660 萬美元，按報告基礎同比增長 15%，按固定匯率計算同比增長 18% .收入增長是由軟件和生物模擬服務推動的，因為我們繼續看到所有客戶類別的強勁需求。

Fourth quarter software segment revenue of $29.2 million represented 14% year-over-year growth on a reported basis and 19% on a constant currency basis. Our core Simcyp and Phoenix biosimulation software performed well as did Pinnacle 21, delivering at or above our financial and strategic expectations for the year. Our software updates and new products in 2022 included the annual updates on Phoenix and new versions of the immunogenicity, immuno-oncology and vaccine simulator, which were introduced into the Simcyp platform.

第四季度軟件部門收入為 2920 萬美元，按報告基礎同比增長 14%，按固定匯率計算同比增長 19%。我們的核心 Simcyp 和 Phoenix 生物模擬軟件與 Pinnacle 21 一樣表現出色，達到或超過了我們今年的財務和戰略預期。我們在 2022 年的軟件更新和新產品包括 Phoenix 的年度更新以及引入 Simcyp 平台的免疫原性、免疫腫瘤學和疫苗模擬器的新版本。

Also in 2022, we launched the Pinnacle 21 data exchange module and the Simcyp Discovery Simulator. We are committed to finding new ways to leverage Pinnacle 21's data organization and management platform across Certara. We are also encouraged by customer traction with Simcyp Discovery, an example of our effort to expand Certara's biosimulation software into adjacent use cases. Similarly, we are excited to announce the acquisition of Vyasa in early January, an artificial intelligence company with scalable, deep learning software.

同樣在 2022 年，我們推出了 Pinnacle 21 數據交換模塊和 Simcyp Discovery Simulator。我們致力於尋找在 Certara 中利用 Pinnacle 21 的數據組織和管理平台的新方法。我們也對 Simcyp Discovery 的客戶吸引力感到鼓舞，這是我們努力將 Certara 的生物模擬軟件擴展到相鄰用例的一個例子。同樣，我們很高興地宣佈在 1 月初收購 Vyasa，這是一家擁有可擴展深度學習軟件的人工智能公司。

We are working to integrate the technology throughout the existing Certara platform to help customers answer complex questions across structured and unstructured biomedical information. Vyasa was relatively small bolt-on transaction, and we expect the software integration process to evolve throughout the course of the year.

我們正在努力將該技術集成到整個現有的 Certara 平台，以幫助客戶回答結構化和非結構化生物醫學信息中的複雜問題。 Vyasa 是相對較小的補強交易，我們預計軟件集成過程將在全年不斷發展。

Fourth quarter technology-driven services segment revenue was $57.5 million, which grew 15% on a reported basis and 18% on a constant currency basis compared with the fourth quarter of 2021. Biosimulation services continued to see robust demand with 2022 growing approximately 20% for the year. We expect continued strength in biosimulation services into 2023 due to encouraging bookings trends throughout the year. This is a testament to the strong demand we are seeing for biosimulation as our clients expand use cases across biologics, cell and gene therapies and small molecules.

第四季度技術驅動服務部門收入為 5750 萬美元，與 2021 年第四季度相比，按報告基礎增長 15%，按固定匯率計算增長 18%。生物模擬服務繼續保持強勁需求，到 2022 年增長約 20%那一年。由於全年令人鼓舞的預訂趨勢，我們預計到 2023 年生物模擬服務將繼續保持強勁勢頭。隨著我們的客戶將用例擴展到生物製劑、細胞和基因療法以及小分子，這證明了我們對生物模擬的強勁需求。

Technology-driven services reported growth was impacted by the weakness in regulatory services during 2022, as we've discussed on previous calls. The regulatory business finished 2022, in line with our expectations laid out in the second quarter earnings call in August. Over the long-term, we believe regulatory services is a strategic business for Certara. It drives incremental value to our customers, and it's a solid business from a financial standpoint. Andrew will discuss the near-term outlook for this business in more detail shortly.

正如我們在之前的電話會議上討論的那樣，技術驅動服務報告的增長受到 2022 年監管服務疲軟的影響。監管業務在 2022 年結束，符合我們在 8 月份第二季度財報電話會議上提出的預期。從長遠來看，我們認為監管服務是 Certara 的一項戰略業務。它為我們的客戶帶來了增量價值，從財務角度來看，這是一項穩固的業務。安德魯將在短期內更詳細地討論這項業務的近期前景。

In 2022, we continue to invest in our business and expand our team worldwide. We prioritized hiring leading scientists and subject matter experts to support our growth. At the end of 2022, we had over 1,200 employees, including more than 380 with doctorate degrees. We believe we are the employer of choice in the biosimulation industry, and we offer a strong culture and commitment to innovation.

2022 年，我們將繼續投資於我們的業務，並在全球範圍內擴大我們的團隊。我們優先聘請領先的科學家和主題專家來支持我們的發展。截至2022年底，我們擁有員工1200餘人，其中博士380餘人。我們相信我們是生物模擬行業的首選雇主，我們提供強大的文化和對創新的承諾。

In summary, we're pleased with our performance in 2022 with the rapid development and adoption of biosimulation and the proven success of our business development strategy. We believe that our team is well positioned to drive success in 2023 and over the long term, as we support and catalyze the adoption of biosimulation for drug research and development.

總而言之，我們對我們在 2022 年的表現感到滿意，因為生物模擬的快速發展和採用以及我們業務發展戰略的成功。我們相信，我們的團隊有能力在 2023 年和長期內取得成功，因為我們支持並促進生物模擬在藥物研發中的應用。

I'd like to close my remarks by extending my deepest appreciation to the entire organization of Certara. The hard work and dedication of our people to drive our mission forward.

最後，我想對整個 Certara 組織表示最深切的感謝。我們人民的辛勤工作和奉獻精神推動我們的使命向前發展。

I'll now turn it over to our CFO, Andrew Schemick, to discuss our fourth quarter and full year financial results in more detail.

我現在將其轉交給我們的首席財務官 Andrew Schemick，以更詳細地討論我們的第四季度和全年財務業績。

Thank you, William. Hello, everyone. Total revenue for the 3 months ended December 31, 2022, was $86.6 million, representing year-over-year growth of 15% on a reported basis and 18% on a constant currency basis. For the full year 2022, total revenue was $335.6 million, which represents 17% growth on a reported basis and 20% growth on a constant currency basis.

謝謝你，威廉。大家好。截至 2022 年 12 月 31 日止三個月的總收入為 8660 萬美元，按報告基準同比增長 15%，按固定匯率基準同比增長 18%。 2022 年全年總收入為 3.356 億美元，按報告計算增長 17%，按固定匯率計算增長 20%。

Excluding Pinnacle 21, full year 2022 growth was 12% on a constant currency basis. Note that we have owned Pinnacle 21 for more than a full year as of October 2022, and we will be reporting the business as part of our consolidated financials going forward.

不包括 Pinnacle 21，按固定匯率計算，2022 年全年增長率為 12%。請注意，截至 2022 年 10 月，我們擁有 Pinnacle 21 已超過一整年，我們將在未來報告該業務作為我們合併財務的一部分。

Bookings which provides visibility into the year ahead came in at $408.9 million for the trailing 12-month period ended December 31, 2022, and were up 20% year-over-year. Our total company book-to-bill ratio ended the year at 1.22x. Software revenue was $29.2 million in the fourth quarter, which increased 14% over the prior period on a reported basis and 19% on a constant currency basis. The growth in the quarter was driven by Pinnacle 21 new products and biosimulation software.

在截至 2022 年 12 月 31 日的過去 12 個月期間，提供未來一年可見性的預訂量為 4.089 億美元，同比增長 20%。我們公司的總訂單出貨比年底為 1.22 倍。第四季度軟件收入為 2920 萬美元，按報告基礎比上一時期增長 14%，按固定匯率計算增長 19%。本季度的增長是由 Pinnacle 21 新產品和生物模擬軟件推動的。

For the full year, software revenue was $115.5 million, up 33% on a reported basis and 38% on a constant currency basis. Excluding Pinnacle 21, full year software revenue grew 14% on a constant currency basis. Ratable and subscription software revenue amounted to 60% of total software revenue for the year up from 54% in the prior year. Subscription ratable revenue accounted for 67% of the fourth quarter revenues. Software bookings were $39.5 million in the fourth quarter, which increased 22% from the prior year period. Trailing 12-month software bookings were $124.8 million, up 32% year-over-year. The software aggregate renewal rate was 88% in the fourth quarter, down due to timing but resulting in a 91% rate for the year, which is in line with our plan.

全年，軟件收入為 1.155 億美元，按報告基礎增長 33%，按固定匯率計算增長 38%。不包括 Pinnacle 21，全年軟件收入按固定匯率計算增長 14%。收費和訂閱軟件收入佔全年軟件總收入的 60%，高於上年的 54%。訂閱費收入佔第四季度收入的 67%。第四季度軟件預訂額為 3950 萬美元，比去年同期增長 22%。過去 12 個月的軟件預訂額為 1.248 億美元，同比增長 32%。第四季度軟件總更新率為 88%，由於時間原因有所下降，但全年為 91%，這符合我們的計劃。

Services revenue was $57.5 million in the fourth quarter, which increased 15% over the prior year period on a reported basis and 18% on a constant currency basis. For the full year, services revenue was $220.2 million, up 10% on a reported basis and 13% on a constant currency basis. As we discussed -- as we previously discussed, biosimulation services revenue growth remained strong in 2022 and was 20%, while regulatory services was a drag on the overall growth rate.

第四季度服務收入為 5750 萬美元，按報告基礎計算比去年同期增長 15%，按固定匯率計算增長 18%。全年服務收入為 2.202 億美元，按報告基礎增長 10%，按固定匯率計算增長 13%。正如我們之前討論的那樣——正如我們之前討論的那樣，生物模擬服務收入增長在 2022 年保持強勁，為 20%，而監管服務拖累了整體增長率。

Technology-driven services bookings in the fourth quarter were $80.9 million, which increased 1% from the prior year period. Trailing 12-month services bookings were $284.1 million, which increased 15% as compared to the prior year. As expected, regulatory services bookings growth was down in the quarter, while biosimulation bookings trends continue to be strong. The cost of revenue for the fourth quarter of 2022 was $31.8 million, an increase from $29.3 million in the fourth quarter of 2021, primarily due to $3.5 million increase in employee-related costs $1.1 million increase in other costs of revenues such as equipment, travel and software licenses, offset by lower stock-based compensation and outside consulting costs of $1.6 million.

第四季度技術驅動的服務預訂額為 8090 萬美元，比去年同期增長 1%。過去 12 個月的服務預訂額為 2.841 億美元，比上年增長 15%。正如預期的那樣，本季度監管服務預訂增長有所下降，而生物模擬預訂趨勢繼續強勁。 2022 年第四季度的收入成本為 3180 萬美元，高於 2021 年第四季度的 2930 萬美元，主要原因是員工相關成本增加 350 萬美元設備、差旅等其他收入成本增加 110 萬美元和軟件許可，被較低的基於股票的薪酬和 160 萬美元的外部諮詢成本所抵消。

Total operating expenses for the fourth quarter of 2022 were $43.5 million, an increase from $42.6 million in the fourth quarter of 2021. The components of operating expenses are as follows: Sales and marketing expenses were $7.8 million compared to $6.7 million for the fourth quarter of 2021. This increase is primarily due to $0.6 million in employee expenses due to the expansion of the sales force and $0.5 million increases in marketing and travel costs.

2022 年第四季度的總運營費用為 4350 萬美元，高於 2021 年第四季度的 4260 萬美元。運營費用的構成如下： 銷售和營銷費用為 780 萬美元，而 2021 年第四季度為 670 萬美元2021 年。這一增長主要是由於銷售人員擴張導致的 60 萬美元員工支出以及營銷和差旅成本增加 50 萬美元。

R&D expenses were $6.6 million compared to $6.5 million for the fourth quarter of 2021. R&D expenses were up slightly due to R&D expense from acquisitions in 2021 and the timing of other related investments in research and development. G&A expenses were $18.3 million compared to $18.7 million for the fourth quarter of 2021. The decrease was primarily due to a $1.8 million decrease in transaction and M&A costs, $1.5 million decrease in stock-based compensation, offset by $2.2 million of employee-related costs.

研發費用為 660 萬美元，而 2021 年第四季度為 650 萬美元。由於 2021 年收購產生的研發費用以及其他相關研發投資的時間安排，研發費用略有上升。 G&A 費用為 1830 萬美元，而 2021 年第四季度為 1870 萬美元。減少的主要原因是交易和併購成本減少 180 萬美元，股票薪酬減少 150 萬美元，被 220 萬美元的員工相關成本抵消.

Intangible asset amortization was up slightly at $10.3 million compared to $10.2 million in the fourth quarter of 2021. Depreciation and amortization expense was $0.4 million, flat with last year. Continuing down the P&L, interest expense was $5.4 million compared to $3.3 million for the fourth quarter of 2021 due to higher interest expense relating to our term loan. Miscellaneous expense was $2.2 million compared to $0.3 million for the fourth quarter of 2021 due primarily to $2.5 million in remeasurement loss related to fluctuation in foreign currency exchange rates. The income tax benefit was $5.4 million, bringing the full year provision to $4 million compared to $9.9 million in the prior full year as a result of a change in the mix of earnings among jurisdictions the impact of nonrecurring income tax rate changes and the tax planning project completed in the second half of 2022 to take the benefit of previously unrecognized foreign tax credits.

無形資產攤銷從 2021 年第四季度的 1020 萬美元小幅上升至 1030 萬美元。折舊和攤銷費用為 40 萬美元，與去年持平。繼續降低損益表，由於與我們的定期貸款相關的利息支出增加，利息支出為 540 萬美元，而 2021 年第四季度為 330 萬美元。雜項費用為 220 萬美元，而 2021 年第四季度為 30 萬美元，主要原因是與外幣匯率波動相關的重新計量損失為 250 萬美元。所得稅收益為 540 萬美元，使全年準備金從上一年度的 990 萬美元增加到 400 萬美元，這是由於不同司法管轄區的收益組合發生變化、非經常性所得稅稅率變化的影響和稅收籌劃項目於 2022 年下半年完成，以利用之前未確認的外國稅收抵免。

Net income for the fourth quarter of 2022 was $9.2 million compared to a net loss of $9.7 million in the fourth quarter of 2021. Reported adjusted EBITDA for the fourth quarter of 2022 was $31.9 million compared to $28.2 million for the fourth quarter of 2021, representing 13% growth. Adjusted EBITDA margin was 36.8% in the fourth quarter of 2022 and 35.8% for the full year of 2022. Reported adjusted net income for the fourth quarter of 2022 was $25.2 million compared to $9.8 million for the fourth quarter of 2021.

2022 年第四季度淨收入為 920 萬美元，而 2021 年第四季度為淨虧損 970 萬美元。報告的 2022 年第四季度調整後 EBITDA 為 3190 萬美元，而 2021 年第四季度為 2820 萬美元，代表增長 13%。 2022 年第四季度調整後的 EBITDA 利潤率為 36.8%，2022 年全年為 35.8%。報告的 2022 年第四季度調整後淨收入為 2520 萬美元，而 2021 年第四季度為 980 萬美元。

Diluted earnings per share for the fourth quarter of 2022 was $0.06 as compared to a loss of $0.06 in the fourth quarter of 2021. Adjusted diluted earnings per share for the fourth quarter of 2022 was $0.16 compared to $0.06 in the fourth quarter of 2021.

2022 年第四季度攤薄後每股收益為 0.06 美元，而 2021 年第四季度為虧損 0.06 美元。2022 年第四季度調整後攤薄每股收益為 0.16 美元，而 2021 年第四季度為 0.06 美元。

Now moving to the balance sheet. We ended the quarter with $236.6 million of cash and cash equivalents. As of December 31, 2022, we had $297.5 million of outstanding borrowings on our term loan and full availability under our revolving credit facility.

現在轉到資產負債表。我們在本季度末擁有 2.366 億美元的現金和現金等價物。截至 2022 年 12 月 31 日，我們的定期貸款中有 2.975 億美元的未償還借款，並且在我們的循環信貸額度下完全可用。

Turning to the guidance for the full year 2023. We expect total revenue in the range of $370 million to $385 million, representing 10% to 15% growth compared with 2022. Our revenue guidance assumes continued strength in software and biosimulation services where we have good visibility given our trailing 12-month bookings. The guidance also assumes regulatory services growth in the low single digits as compared to 2022 and software subscription revenue continues to rise to increase as a percentage of total software revenues.

轉向 2023 年全年的指導。我們預計總收入在 3.7 億美元至 3.85 億美元之間，與 2022 年相比增長 10% 至 15%。我們的收入指導假設軟件和生物模擬服務持續強勁，我們擁有良好的鑑於我們過去 12 個月的預訂，可見性。該指南還假設與 2022 年相比，監管服務以低個位數增長，並且軟件訂閱收入繼續上升，佔軟件總收入的百分比增加。

We expect adjusted EBITDA in the range of $131 million to $137 million, adjusted EPS in the range of $0.50 to $0.55 per share, fully diluted shares in the range of $159 million to $162 million, a tax rate in the range of 25% to 30%. And one last thing before we turn the call over to questions.

我們預計調整後的 EBITDA 在 1.31 億美元至 1.37 億美元之間，調整後每股收益在 0.50 美元至 0.55 美元之間，完全稀釋後的股份在 1.59 億美元至 1.62 億美元之間，稅率在 25% 至 30% 之間%。在我們將電話轉到問題之前的最後一件事。

With today's announcement, I want to take the opportunity to welcome John to Certara. John has an impressive background and his experience with Cue Health and Becton Dickinson have prepared him well for the opportunity with Certara. Over the past 9 years, Certara has evolved and grown significantly since becoming public, we have put a long-term strategic plan in place that the team has been successfully executing against. After 6 years as a private company CFO and 2 years as a public company CFO, now is a good time to transition CFO responsibilities to someone else. Following a transition period that will ensure a smooth and orderly transition of responsibilities to John, I intend to remain with and focus on operations and growth initiatives.

通過今天的公告，我想藉此機會歡迎 John 加入 Certara。 John 擁有令人印象深刻的背景，他在 Cue Health 和 Becton Dickinson 的經歷使他為 Certara 的機會做好了充分準備。在過去的 9 年裡，Certara 自上市以來取得了顯著的發展和壯大，我們制定了一項長期戰略計劃，團隊已成功執行該計劃。在擔任私營公司 CFO 6 年和上市公司 CFO 2 年後，現在是將 CFO 職責移交給其他人的好時機。在確保職責平穩有序地移交給 John 的過渡期之後，我打算留在並專注於運營和增長計劃。

I will now turn the call back over to our CEO, William Feehery for closing remarks.

我現在將把電話轉回給我們的首席執行官 William Feehery 以作結束語。

Thank you, Andrew. I'd like to personally thank Andy for his outstanding job as CFO of Certara. During his 9 years as CFO, the company transitioned through 2 private owners and then had an IPO in 2020. Also during that time, the company has grown over 6x in people and revenues, and it remained consistently profitable. And most importantly, he helps Certara build a world-class finance organization that we will continue to benefit from for years to come. I'm very happy that we are able to retain someone with Andy's qualifications and knowledge of the company as we plan for the next phase of Certara's growth.

謝謝你，安德魯。我想親自感謝 Andy 作為 Certara 的首席財務官所做的出色工作。在他擔任首席財務官的 9 年中，公司經歷了 2 位私人所有者的轉型，然後在 2020 年進行了首次公開募股。同樣在此期間，公司的人員和收入增長了 6 倍以上，並且一直保持盈利。最重要的是，他幫助 Certara 建立了一個世界級的金融組織，我們將在未來幾年繼續從中受益。我很高興在我們計劃 Certara 的下一階段發展時，我們能夠留住具有 Andy 資歷和對公司了解的人。

To summarize our message today, we're pleased with our 2022 results, and we believe that Certara is well positioned for growth this year and in the future as we continue as a global leader in biosimulation.

總結我們今天的信息，我們對 2022 年的結果感到滿意，並且我們相信，隨著我們繼續作為生物模擬領域的全球領導者，Certara 在今年和未來的增長中處於有利地位。

We will now open up the line for questions. Operator, can you please open the line?

我們現在將開通提問熱線。接線員，你能打開線路嗎？

(Operator Instructions) Our first question comes from the line of David Windley from Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 David Windley。

The -- I guess in biosim, you talked about some real strength there and particularly, I guess, in services. It looks like you are having nice luck with new logo, nice effort, maybe not luck, with new logos over the last year or so. Could you, Bill, help with kind of the relative strength of demand between large customers and small and just kind of help us understand what's pushing that? And what their uptake is, is it software, i.e., large customers or more services in the small customers? I'm just interested in the by customer cohort commentary.

- 我想在 biosim 中，你談到了那裡的一些真正的力量，特別是，我想，在服務方面。在過去一年左右的時間裡，新徽標看起來你很幸運，努力，也許不是運氣。 Bill，你能否幫助我們了解大客戶和小客戶之間的需求相對強度，並幫助我們了解是什麼推動了這一點？他們的吸收是什麼，它是軟件，即大客戶還是小客戶的更多服務？我只對客戶群評論感興趣。

Yes. Thanks, David. I appreciate the question. So about 50% of our business across the company is with the top 50 pharma and the other 50% is with the other roughly 1,700 customers we have. And during the fourth quarter, both of them grew fairly equally in revenue. So I think it was about 15% for both segments. But it's also true, what you said the buying patterns are a little bit different. The larger customers tend to skew more towards software sales.

是的。謝謝，大衛。我很欣賞這個問題。因此，我們公司約 50% 的業務與前 50 家製藥公司有關，另外 50% 與我們擁有的其他大約 1,700 家客戶有關。在第四季度，它們的收入增長相當平均。所以我認為這兩個細分市場都約為 15%。但這也是事實，你所說的購買模式有點不同。較大的客戶往往更傾向於軟件銷售。

They tend to be members of our Simcyp Consortium, which accounts for software sales. And many of our biotech customers are services customers, although it's not 100% one way or the other, we have smaller customers that purchased software, and we have -- and we certainly provide services to the large ones. That's just sort of a general trend. I would say nothing particularly new in this area. It's been this kind of this trend for a number of years right now. And we saw just kind of a continuation of that progress in the fourth quarter.

他們往往是我們 Simcyp 聯盟的成員，該聯盟負責軟件銷售。我們的許多生物技術客戶都是服務客戶，雖然這不是 100% 的方式，但我們有購買軟件的較小客戶，而且我們有 - 我們當然會為大客戶提供服務。這只是一種普遍趨勢。在這方面我不會說什麼特別新的東西。多年來，這種趨勢一直存在。我們在第四季度看到了這種進展的延續。

Yes. Just as a follow-up to that. In terms of that -- you correct me if I'm wrong, but I presume a lot of your new logos come from kind of newly formed or relatively young companies in the biotech space, the funding environment for them has been more challenging in the last year or so, and Novavax had a kind of -- I think a lot of people shocking the announcement last night. What kind of diligence or vetting, balance sheet durability work do you guys do on that customer base? And are you seeing any potential risks there?

是的。就像後續行動一樣。就此而言——如果我錯了，請糾正我，但我認為你們的很多新標識都來自生物技術領域新成立或相對年輕的公司，他們的融資環境在去年左右，Novavax 有一種——我想很多人都對昨晚的公告感到震驚。你們在那個客戶群上做了什麼樣的勤奮或審查，資產負債表的耐久性工作？你看到那裡有任何潛在的風險嗎？

Yes. Good question. So the bulk of the revenues that are targets are in drugs that get to late phase development, clinical development. And what we're seeing is there's still financing opportunities for anyone who gets the drug that far. The work we do with the early-stage customers tends to constitute a fairly small fraction of our revenues, mostly -- we're doing small projects for them. We'd like to introduce the possibilities of Certara to them and develop our relationship as they hopefully get bigger. But they won't tend to spend a ton with us until they get their drug farther along. To answer your second question, I can -- Andy, can chime in here, but -- well go ahead, Andy, why don't you talk about that part?

是的。好問題。因此，作為目標的大部分收入都用於進入後期開發、臨床開發的藥物。我們所看到的是，對於任何獲得這種藥物的人來說，仍然有融資機會。我們與早期客戶所做的工作往往占我們收入的一小部分，主要是——我們正在為他們做小項目。我們想向他們介紹 Certara 的可能性，並在他們希望變得更大時發展我們的關係。但在他們的藥物走得更遠之前，他們不會傾向於和我們一起花很多錢。要回答你的第二個問題，我可以——安迪，可以在這裡插話，但是——好吧，安迪，你為什麼不談談那部分呢？

Well, just in terms of the diligence and obviously, with the accounting rules you're required to ensure that the customers got the funds available in order to recognize revenue. So we have a -- we do credit checks upfront and reviews of our AR on a monthly basis. So we're pretty on top of those things. We did see an increase in the bad debt reserve compared to last year. It was related to some isolated incidents, but not a widespread issue in terms of aging.

好吧，就勤奮而言，顯然，根據會計規則，您需要確保客戶獲得可用資金以確認收入。所以我們有一個 - 我們每月進行一次信用檢查並審查我們的 AR。所以我們非常了解這些事情。與去年相比，我們確實看到壞賬準備金有所增加。它與一些孤立的事件有關，但不是老齡化方面的普遍問題。

Got it. And then last question for me is just a description of the health of the reg services business. It sounds like you expect it to grow. I'd be interested if you put a number on what it actually delivered in 2022, was it down flat. You said it drag on growth? Like what was the performance? And then are you seeing some of those delayed projects come back? Are you seeing new bookings? What gives you of so they can grow a little bit in '23?

知道了。然後對我來說，最後一個問題只是對註冊服務業務健康狀況的描述。聽起來您希望它增長。如果您對它在 2022 年實際交付的內容給出一個數字，我會很感興趣，它是否持平。你說它拖累增長？比如表現如何？然後你看到一些延遲的項目回來了嗎？您看到新的預訂了嗎？是什麼讓你在 23 年有所成長？

Yes, I can start, Bill, on this one. In terms of the rate reg and access services, which we grouped together. Year-over-year, it was down 3%, and that's inclusive of the large projects that we've discussed for the past last quarter and previously relating to China and some reg ops work. So underlying that is a pretty healthy business and with a lot of opportunity. In the fourth quarter, we did see a return to growth there, but we're remaining optimistic as we kind of build our bookings and our pipeline through the first half of the year. So we incorporated low single digits into our guidance.

是的，比爾，我可以從這個開始。在費率註冊和訪問服務方面，我們將它們組合在一起。與去年同期相比，它下降了 3%，這包括我們在上個季度討論過的大型項目以及之前與中國和一些 reg ops 工作有關的項目。因此，這背後是一項非常健康的業務，並且有很多機會。在第四季度，我們確實看到那裡恢復了增長，但我們仍然保持樂觀，因為我們在今年上半年建立了我們的預訂和管道。因此，我們將低個位數納入了我們的指南。

(Operator Instructions) Our next question will come from the line of Vikram Purohit from Morgan Stanley.

（操作員說明）我們的下一個問題將來自摩根士丹利的 Vikram Purohit。

So 2 from our side. First, on the revenue guidance for 2023. Could you just kind of help us unpack the scenarios that are implied by the bookends of that guidance? And then secondly, on Pinnacle 21, I know you spoke about it a little bit, but I was wondering if you could provide some more detail on how cross-selling opportunities are materializing from that acquisition? And maybe mention sample project type or 2, where you've had the opportunity to bring together offerings from both Certara and Pinnacle 21 into one offering? And maybe talk a bit about how cross-selling there could continue throughout the year?

所以我們這邊有 2 個。首先，關於 2023 年的收入指導。你能幫我們解開該指導書擋所暗示的場景嗎？其次，關於 Pinnacle 21，我知道你談過一點，但我想知道你是否可以提供更多關於交叉銷售機會如何從收購中實現的細節？也許提到示例項目類型或 2，您有機會將 Certara 和 Pinnacle 21 的產品整合到一個產品中？或許可以談談那裡的交叉銷售如何在全年繼續進行？

I'll start first with the guidance bookends. So the 3 factors I mentioned on the call, we went into the year with a conservative mindset given macroeconomic environment today, but with high visibility. We have 80% to 85% visibility into the low end of the range, and that's a conservative visibility metric just accounting for the work that we sold and assuming a 90% renewal rate, which doesn't factor in expansion opportunities with existing clients. The -- so the midpoint of our base case is really bookended by conservatism around regulatory and just the general environment and the upside is related to opportunities associated with our new software products where we don't really have a track record to extrapolate the growth forward. Is that helpful?

我將首先從指導書擋開始。因此，我在電話會議上提到的 3 個因素，考慮到今天的宏觀經濟環境，我們以保守的心態進入了這一年，但具有很高的知名度。我們對該範圍的低端有 80% 到 85% 的可見性，這是一個保守的可見性指標，僅考慮我們售出的作品並假設續訂率為 90%，這並未考慮現有客戶的擴展機會。 - 所以我們的基本案例的中點實際上是由圍繞監管和一般環境的保守主義所決定的，而上行與我們新軟件產品相關的機會有關，我們沒有真正的記錄來推斷未來的增長.這有幫助嗎？

It is.

這是。

Yes. And then I can address the part about Pinnacle 21. So we have seen a number of cross-selling opportunities. The simplest one was there are services opportunities tied to Pinnacle 21's user base that we're able to tap into. We've also tied Pinnacle 21 into our integral data repository, which has provided maybe the most direct example of cross-selling opportunities in terms of additional software sales of that product tied to Pinnacle 21. So there's just a couple of things that are going on right now.

是的。然後我可以解決有關 Pinnacle 21 的部分。因此我們看到了許多交叉銷售機會。最簡單的一個是我們能夠利用與 Pinnacle 21 的用戶群相關的服務機會。我們還將 Pinnacle 21 綁定到我們的整體數據存儲庫中，這可能提供了交叉銷售機會的最直接示例，即與 Pinnacle 21 綁定的該產品的額外軟件銷售。所以只有幾件事正在進行現在。

(Operator Instructions) Our next question will come from the line of Luke Sergott from Barclays.

（操作員說明）我們的下一個問題將來自巴克萊銀行的 Luke Sergott。

Can you just give us a sense of the pacing throughout the year with regards to your guidance and how the margin expansion and how the growth how you guys are thinking about that kind of rolling on?

您能否就您的指導、利潤率擴張以及你們如何看待這種滾動的增長方式，讓我們了解一下全年的節奏？

Yes. The 2022 pacing, if you will, on the revenue side was more consistent with what we had historically, excluding 2021, where we had a bigger back half of the year versus the first half of the year? So in laying out our plan and our forecast, we see a very similar spread of revenue throughout the year. The difference with 2022 was the earlier in the year, we made some accelerated investments and the expectation is that those investments will be weighted towards the early half of the year, but less significant in terms of the impact on the EBITDA margin. So a little closer relationship between the revenue and the EBITDA margin.

是的。 2022 年的節奏，如果你願意的話，在收入方面與我們的歷史更一致，不包括 2021 年，我們今年的後半年比上半年更大？因此，在製定我們的計劃和預測時，我們看到全年的收入分佈非常相似。與 2022 年的不同之處在於今年早些時候，我們進行了一些加速投資，預計這些投資將在今年上半年加權，但在對 EBITDA 利潤率的影響方面不太顯著。因此，收入與 EBITDA 利潤率之間的關係更加緊密。

Okay. That's helpful. And then last for me, a lot of issue -- a lot of news on the non-human primate supply chain. I know it's going to take a long time for the FDA to adopt biosimulation for -- to replace those. But what are you guys doing from -- or having conversations with the FDA regarding alternate data and if you're even involved in those conversations?

好的。這很有幫助。最後對我來說，很多問題——很多關於非人類靈長類動物供應鏈的新聞。我知道 FDA 需要很長時間才能採用生物模擬來取代它們。但是你們在做什麼 - 或者與 FDA 就替代數據進行對話，如果你們甚至參與了這些對話？

Yes. We've been an advocate of this for obvious reasons for a long time. So Simcyp contains animal models in it as well. And it's been our position that a lot of animal testing is unnecessary given the modeling capabilities. And we've had conversations over the years with the FDA. The industry has been quite conservative on moving -- and despite what I said, the industry has been quite conservative on moving away from animal testing in particular primates. If that a step change, there's potentially an opportunity for us, but we want to be conservative and watch how this unfolds.

是的。出於顯而易見的原因，我們長期以來一直提倡這一點。所以 Simcyp 中也包含動物模型。我們的立場是，鑑於建模能力，很多動物測試是不必要的。多年來，我們一直在與 FDA 進行對話。該行業在行動方面一直相當保守——儘管我說過，但該行業在放棄動物試驗尤其是靈長類動物方面一直相當保守。如果這一步發生變化，那麼我們就有機會，但我們希望保持保守，並觀察這將如何發展。

(Operator Instructions) Our next question will come from the line of Dan Leonard from Credit Suisse.

（操作員說明）我們的下一個問題將來自瑞士信貸的 Dan Leonard。

So 2 for me. First, can you speak to whether you're able to capture pricing in the current environment? What is the expectation for pricing in 2023, and how that compares to historical.

所以2對我來說。首先，您能否談談您是否能夠在當前環境中獲取定價？對 2023 年定價的預期是什麼，與歷史相比如何。

Yes. So we -- sorry, I had a hard time hearing you. The pricing expectations for this year are consistent with historical and I'd say, across the product line in the 3% to 5% range.

是的。所以我們 - 抱歉，我很難聽到你的聲音。今年的定價預期與歷史一致，我想說，整個產品線在 3% 到 5% 的範圍內。

And then for my follow-up, similar to Luke's question. Have you had -- have your frequency, velocity of conversations changed at all following the FDA Modernization Act 2.0. And does that specific legislation impact your business opportunity in any way given the language around using computer modeling as a substitute for animal testing?

然後是我的跟進，類似於 Luke 的問題。在 FDA 現代化法案 2.0 之後，你有沒有——你的談話頻率、速度發生了根本性的變化。考慮到使用計算機建模替代動物測試的語言，該特定立法是否會以任何方式影響您的商業機會？

Yes. So the language of the act actually helps us a lot. So it fosters alternative methods like modeling, which basically falls into what we provide. So the answer -- the short answer is yes, it's a benefit to us.

是的。因此，該法案的語言實際上對我們有很大幫助。因此它促進了建模等替代方法，這基本上屬於我們提供的內容。所以答案 - 簡短的回答是肯定的，這對我們有好處。

(Operator Instructions) Our next question comes from the line of Max Smock from William Blair.

（操作員說明）我們的下一個問題來自 William Blair 的 Max Smock 系列。

It's Christine on for Max. Two for me. The first one in terms of sort of geographic strategy. Can you just discuss what are the biggest opportunities and challenges you see in each of your key geographies? I know you've recently called out some headwinds in China. If you could just discuss your business dynamics here and if the situation has gotten incrementally better or worse?

克里斯汀替麥克斯上場。兩個給我。第一個在地理戰略方面。您能談談您在每個關鍵地區看到的最大機遇和挑戰是什麼嗎？我知道你最近指出了中國的一些不利因素。您是否可以在這裡討論您的業務動態以及情況是逐漸好轉還是惡化？

Yes, I can start, and then Andy can chime in. China is an opportunity for us. We opened an office there at the very beginning of the pandemic and then it was a little hard to grow it given the travel situation and the pandemic situation and everything else. The opportunity still remains. We're -- we are making an investment in it.

是的，我可以開始，然後 Andy 可以插話。中國對我們來說是一個機會。我們在大流行開始時在那裡開設了一個辦公室，然後考慮到旅行情況、大流行情況和其他一切，它有點難以發展。機會仍然存在。我們 - 我們正在對其進行投資。

Having said that, I think China today, and Andy you can chime in, is like 2% or 3% of our revenue. So it's still got some ways to go, so. And then other geographies, we have the bulk of -- our -- Certara's revenue pretty much follows where the global pharmaceutical industry is. So the bulk of the revenues are in North America. And then Europe, we have been slightly underweight in Europe for the past couple of years. And so we've been -- we've made some investments in sales, and we -- a couple of bolt-on acquisitions as well to bolster our footprint there, and that's been paying off. So I think that's been growing.

話雖如此，我認為今天的中國，安迪，你可以插話，大約占我們收入的 2% 或 3%。所以它還有一些路要走，所以。然後是其他地區，我們有大部分 - 我們 - Certara 的收入幾乎跟隨全球製藥業的位置。所以大部分收入都在北美。然後是歐洲，在過去的幾年裡，我們一直在歐洲略微減持。因此，我們一直 - 我們已經對銷售進行了一些投資，而且我們 - 還進行了幾次補強收購，以加強我們在那裡的足跡，這已經取得了回報。所以我認為這一直在增長。

And then in Japan, we have a long-standing customer base and significant interest and participation in biosimulation that's been going on for quite some time. Outside of that, then you get into places like South Korea and India, which are -- there's certainly an interesting set of customers starting there and an opportunity for us that we're sort of slowly building our sales force so that we can tap into that.

然後在日本，我們擁有長期的客戶群，並且對生物模擬的濃厚興趣和參與已經持續了很長一段時間。除此之外，然後你會進入像韓國和印度這樣的地方，這些地方肯定有一群有趣的客戶從那裡開始，這對我們來說是一個機會，我們正在慢慢建立我們的銷售隊伍，以便我們可以利用那。

Great. That's really helpful. And then my last one, in terms of your regulatory business upside, have you started to see any increase in the business wins potentially from the -- some large CROs given some of the restructuring and maybe potential distractions at a couple of the larger players?

偉大的。這真的很有幫助。然後是我的最後一個，就您的監管業務優勢而言，您是否開始看到一些大型 CRO 可能會因一些大型 CRO 進行重組以及可能分散一些較大參與者的潛在註意力而增加業務？

It's a good question. We did see a significant pickup in our bookings in the fourth quarter. So when Andy talked about a recovery in the reg that's what we're -- in our reg business, we're looking at that. I'd like to think some of that is due to the changes we've made in our management and our sales force. And so I'm not sure I could describe it exactly to confusion and CROs or something like that. So we are seeing -- we are seeing the business recover. It's going to take a couple of quarters to kind of rebuild the backlog to back where it was. So hence, the conservative guidance for the year for that.

這是個好問題。我們確實看到第四季度的預訂量顯著增加。因此，當安迪談到 reg 的複蘇時，我們就是這樣——在我們的 reg 業務中，我們正在關注這一點。我想部分原因是我們在管理和銷售人員方面所做的改變。所以我不確定我能否準確地將其描述為混亂和 CRO 或類似的東西。所以我們看到 - 我們看到業務正在復蘇。需要幾個季度才能將積壓的訂單重建到原來的位置。因此，今年的保守指導。

(Operator Instructions) Our next question comes from the line of Gaurav Goparaju from Berenberg.

（操作員說明）我們的下一個問題來自 Berenberg 的 Gaurav Goparaju 系列。

This is [Matt] on for Gaurav. First question here. Are your customers with larger ACVs typically large pharma? Or are some of these customers' biotechs as well?

這是 Gaurav 的[馬特]。第一個問題在這裡。您擁有較大 ACV 的客戶通常是大型製藥公司嗎？或者其中一些客戶的生物技術也是如此？

It's a mix. I would say large pharma is obviously the typical candidate, but we also have some biotechs and some foundations in the top 10 as well.

這是一個混合。我想說大型製藥公司顯然是典型的候選人，但我們也有一些生物技術公司和一些基金會進入前 10 名。

Got it. That's helpful. And then for my follow-up, just wondering in terms of revenue drivers, are you seeing more contribution from new customers joining the platform or more from existing customers increasing their consumption.

知道了。這很有幫助。然後對於我的後續行動，只是想知道在收入驅動因素方面，您是否看到新客戶加入平台或現有客戶增加消費的貢獻更多。

We saw -- we're seeing the, I guess, 17% revenue growth this year, we ended up with kind of a similar mix to previous years in terms of the revenue contribution from new logos to customers. So we're seeing, I think, a balanced growth amongst the new and used. And as Bill mentioned, it was actually TTM number. The Tier 1 customers grew about 15%, and then all other customers grew about 15% for the year.

我們看到 - 我猜今年的收入增長了 17%，就新徽標對客戶的收入貢獻而言，我們最終得到了與往年類似的組合。因此，我認為，我們正在看到新舊產品之間的平衡增長。正如 Bill 提到的，它實際上是 TTM 號碼。一級客戶增長約 15%，然後所有其他客戶全年增長約 15%。

Our next question will come from the line of Michael Ryskin from Bank of America.

我們的下一個問題將來自美國銀行的 Michael Ryskin。

This is Wolf on for Mike. So I wanted to start off with M&A, specifically on Vyasa, can you give us any color on the size, growth margin profile or at least the synergies and cross-selling opportunities you expect to realize there? And then more generally, you guys have been fairly acquisitive company historically. Does your outlook for the year embed any M&A contribution beyond the deals you've already closed? Or would that be a source of upside?

這是邁克的沃爾夫。所以我想從併購開始，特別是在 Vyasa 上，你能給我們任何關於規模、增長利潤率概況或至少你期望在那裡實現的協同效應和交叉銷售機會的顏色嗎？然後更一般地說，你們在歷史上一直是相當收購的公司。除了已經完成的交易之外，您對今年的展望是否包含任何併購貢獻？或者這會是上漲的來源嗎？

Yes. So the answer to the second one is quick, which is the outlook does not include any M&A that we've not already completed. And the answer to the first question is kind of similar to what we've been talking about and what we've been executing for a while now. So we look at acquisitions primarily in 2 categories. One are small bolt-on acquisitions where we can acquire talent. These tend to be quite small, but much easier than hiring people one at a time, for example. And then to the extent that we do more significant acquisitions, we're primarily looking at software products that would expand our position in biosimulation.

是的。所以第二個答案很快，即前景不包括我們尚未完成的任何併購。第一個問題的答案有點類似於我們一直在談論的內容以及我們已經執行了一段時間的內容。因此，我們主要將收購分為兩類。一種是小型補強收購，我們可以在其中獲得人才。這些往往很小，但比一次僱用一個人要容易得多，例如。然後就我們進行更重要的收購而言，我們主要是在尋找能夠擴大我們在生物模擬領域地位的軟件產品。

We kind of -- we look at the strategy of the company is being able to provide data modeling and analytics for the really critical decisions in drug development. And when you look at it through that lens, there's some interesting places that over the future, we can potentially go to. There's a big world out there. But as I've said many times in the past, we're in an exciting space. There's a lot of really good ideas. We can't do them all. We can vet them all internally. But at the same time, we we're perfectly happy if we find no acquisitions. It really depends on something -- finding something that's strategic, that fits really well with the company and that we can justify the price on an accretive basis with our shareholders.

我們有點——我們看公司的戰略是能夠為藥物開發中真正關鍵的決策提供數據建模和分析。當你通過那個鏡頭看它時，未來會有一些有趣的地方，我們有可能去。外面的世界很大。但正如我過去多次說過的那樣，我們正處於一個令人興奮的領域。有很多非常好的想法。我們不能全部做到。我們可以在內部審查它們。但與此同時，如果我們沒有發現收購，我們會非常高興。這真的取決於某些東西——找到具有戰略意義的東西，非常適合公司，並且我們可以在股東的增值基礎上證明價格合理。

Got it. Much appreciated. And then on an unrelated follow-up, are you seeing any change in customer behavior from your large pharma cohort due to the Inflation Reduction Act? Or are you taking any steps internally to (inaudible) position Certara for any changes in legislation over the medium- to long-term?

知道了。非常感激。然後在一個不相關的後續行動中，你是否看到你的大型製藥隊列的客戶行為因《通貨膨脹減少法案》而發生任何變化？或者您是否在內部採取任何措施（聽不清）讓 Certara 適應中長期立法的任何變化？

Yes. We're aware of the discussions in pharma about the Inflation Reduction Act, but we haven't seen anything that would affect us there. We tend to invest in whatever pharma does, whatever therapies or molecules that pharma is interested in as we tend to get pulled along. And so if there's a change in their investment from one therapeutic area to another that will eventually affect us, but we haven't seen signs of that so far or any discussion of a major shift that would affect us.

是的。我們知道製藥業對《降低通貨膨脹法案》的討論，但我們還沒有看到任何會影響我們的事情。我們傾向於投資製藥公司所做的任何事情，製藥公司感興趣的任何療法或分子，因為我們往往會被拉著走。因此，如果他們的投資從一個治療領域改變到另一個治療領域，最終會影響到我們，但到目前為止我們還沒有看到這種跡象，也沒有看到任何會影響我們的重大轉變的討論。

(Operator Instructions) Our next question comes from the line of Joy Zhang from SVB Securities.

（操作員說明）我們的下一個問題來自 SVB 證券的 Joy Zhang。

Congrats on the quarter, I think you've highlighted sort of the better-than-expected performance on the software side. And obviously, that [helping us] show a strong traction in the market place and execution. But curious if there's anything to call out in terms of any sort of improvement in the overall sales environment, especially compared to your prior commentary about elongated sales cycles in the past couple of earnings calls?

恭喜本季度，我認為您已經強調了軟件方面好於預期的表現。顯然，這 [幫助我們] 在市場和執行方面表現出強大的吸引力。但好奇的是，在整體銷售環境方面是否有任何改善，特別是與您之前在過去幾次財報電話會議上關於銷售週期延長的評論相比？

You want to start with that one, Andy or...

你想從那個開始，安迪或者...

Yes. I couldn't quite hear everything, but if you could start, I can -- I don't know if it's my...

是的。我不能完全聽到一切，但如果你能開始，我可以——我不知道這是不是我的……

Sure. Well, we ended the year with a book-to-bill ratio of 1.22x. And if you recall, the way we report bookings is on an annual. It is on annual basis. So on the occasions where we might do a 3-year deal, we only report 1 year to make it indicative of how we're likely to do for current year. So 1.22x is a number that is pretty healthy and ought to produce guidance revenue results within the guidance. We've clearly got a lot of work presold already as we're going into the year. I think during the fourth quarter, we saw healthy bookings. Our bookings tend to vary a bit quarter-to-quarter because you'll have -- large customers will book a little bit earlier, a little bit late. It doesn't really matter for revenues, which quarter they get into as long as they get into the year. So that's what we tend to guide everybody to look at the trailing 12-month bookings number, which is quite healthy as we go into 2023 on software and our services as well.

當然。嗯，我們以 1.22 倍的訂單出貨比結束了這一年。如果您還記得，我們報告預訂的方式是每年一次。它是按年計算的。因此，在我們可能進行 3 年期交易的情況下，我們只報告 1 年，以表明我們今年可能會做些什麼。所以 1.22x 是一個非常健康的數字，應該在指導範圍內產生指導收入結果。隨著我們進入這一年，我們顯然已經預售了很多作品。我認為在第四季度，我們看到了健康的預訂。我們的預訂往往每個季度都有所不同，因為你會 - 大客戶會預訂得早一點，晚一點。對於收入來說，進入哪個季度並不重要，只要進入一年即可。因此，這就是我們傾向於引導每個人查看過去 12 個月的預訂數量的原因，隨著我們進入 2023 年的軟件和服務，這一數字非常健康。

We've got a lot of -- we've accelerated our new product introductions since the IPO. So we've got some new products out there. which started to get some early adoption last year in which we've got, I think, some hopes and reason to believe we'll start to accelerate, and we've got more things in the pipeline as well. So I mean, overall, I think it's -- we're in pretty good shape, and there's a lot of really good things going on in terms of future development that we think will pay off as well.

我們有很多——自 IPO 以來我們加快了新產品的推出。所以我們有一些新產品。去年開始得到一些早期採用，我認為，我們有一些希望和理由相信我們會開始加速，而且我們還有更多的東西在籌備中。所以我的意思是，總的來說，我認為它 - 我們的狀態非常好，並且在未來的發展方面有很多非常好的事情正在發生，我們認為這些事情也會有所回報。

That's helpful. And as a follow-up, would you have any sort of update on the Memorial Sloan Kettering partnership you announced last summer, and how that's progressing. Now that's something that takes a few years to be meaningful on the revenue side, but any sort of early color on the product development side would be super helpful.

這很有幫助。作為後續行動，您能否提供有關去年夏天宣布的 Memorial Sloan Kettering 合作夥伴關係及其進展情況的最新消息？現在，這在收入方面需要幾年時間才能變得有意義，但在產品開發方面的任何早期顏色都會非常有幫助。

Well, it's still work-in-progress. The Memorial Sloan Kettering relationship gave us access to extremely valuable data that we can use to build biosimulation around it would be extremely -- it's kind of a one-of-a-kind, will be extremely difficult to get access to that. So we are investing in it and proceeding, but nothing to report yet. I mean, as we said before, these things tend to take 2 to 3 years before they come out with a product. So give us a little bit of time, and I think we'll see something pretty cool come out there.

好吧，它仍在進行中。與 Memorial Sloan Kettering 的關係使我們能夠訪問極其有價值的數據，我們可以使用這些數據來圍繞它構建生物模擬，這將是非常——這是一種獨一無二的，將非常難以獲得。所以我們正在投資它並繼續進行，但還沒有什麼可報告的。我的意思是，正如我們之前所說，這些東西往往需要 2 到 3 年才能推出產品。所以給我們一點時間，我想我們會看到一些很酷的東西出現。

And I'm not showing any further questions in the queue. I would now like to turn the conference back to William Feehery for closing remarks.

我不會在隊列中顯示任何其他問題。我現在想把會議轉回 William Feehery 作閉幕詞。

All right. Well, thank you very much, Victor. I just wanted to say before we end that Certara overall is proceeding quite well through 2022. Despite the hiccup, we had the regulatory business. That business is quite profitable, it's recovering, and we believe in it, and we think that it will add to the company as we go forward. The core biosimulation business is growing great. We have been extremely successful in integrating Pinnacle 21. We hit all the goals that we expected to hit, and we gained a really, really great software team that integrated into our software group, which has benefited us in a lot of different ways. So overall, I think the company is in a really exciting situation as we head into 2023, and we look forward to talking to you in the next call. Thank you very much.

好的。好吧，非常感謝你，維克多。在我們結束之前，我只想說，Certara 到 2022 年總體上進展順利。儘管出現了問題，但我們有監管業務。該業務非常有利可圖，它正在復蘇，我們相信它，我們認為它會隨著我們的前進而增加公司。核心生物模擬業務發展迅速。我們在整合 Pinnacle 21 方面取得了巨大的成功。我們實現了所有預期的目標，我們獲得了一支非常非常棒的軟件團隊，他們融入了我們的軟件團隊，這讓我們在很多不同的方面受益。所以總的來說，我認為公司在進入 2023 年時處於一個非常令人興奮的境地，我們期待在下一次電話會議中與您交談。非常感謝。

This concludes today's conference call. Thank you for participating.

今天的電話會議到此結束。感謝您的參與。