Certara, Inc.

Good day and thank you for standing by. Welcome to the CETERA First Quarter 2022 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1 on your telephone. Please be advised that today's conference may be recorded. If you require any further assistance, please press star then 0. I would now like to hand the conference over to your host today, David Diekler. Please go ahead.

Good afternoon, everyone. Thank you all for participating in today's conference call. On the call from Surtara, we have William Theory, Chief Executive Officer, and Andrew Schemick, Chief Financial Officer. Earlier today, Surtara released financial results for the quarter ended March 31st, 2022. A copy of the press release is available on the company's website. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. For a list and description of risks and uncertainties associated with Sertara's business, please refer to the Risk Factors section of our Form 10-K filed with the Securities and Exchange Commission on March 1, 2022. We urge you to consider these factors, and you should be aware that these statements should be considered estimates only and are not a guarantee of future performance. Also in their remarks or responses to questions, management may mention some non-GAAP financial measures. Reconciliations of adjusted EBITDA, adjusted net income, and adjusted EPS to the directly comparable GAAP measures are available in the recent earnings press release, which is available on the company's website. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, May 5th, 2022. Sartara disclaims any intention or 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. And with that, I will turn the call over to William.

Thank you, David. Good afternoon, everyone. Thank you for joining Sartara's first quarter earnings call. Andrew and I will start with prepared remarks, and then we will take questions. I am pleased with how the Sitara business performed in the first quarter of 2022 as we executed on our strategic and financial goals. We continue to grow our position as a global leader in biosimulation. We reported strong first quarter revenue of $81.6 million, growing 22% year over year, including Pinnacle 21. Software revenue was $29.2 million, growing 33% year-over-year with a 92% renewal rate, driven by double-digit growth in our core CIMSIF and PHENIC licenses and the impact from Pinnacle 21. Pinnacle 21 continues to meet our expectations. Technology-driven services revenue was $52.4 million, representing 17% growth compared with the first quarter of last year. We are pleased with the sequential improvement in our technology-driven services business. As expected and discussed on our fourth quarter call, we saw some impact from the Omicron variant in January, and several regulatory services projects continue to be delayed. We remain focused on navigating through the delays in our clients' clinical trials to better manage the conversion of our bookings to revenue in regulatory services. We effectively managed through issues related to COVID, and the business exited the first quarter at more normalized levels of employee and client availability as well as project activity. Looking forward to the remainder of the year, we expect the positive momentum in the business to continue. Booking's trends in both software and technology-driven services remain very strong, and we continue to add new customers. to continue to experience healthy double-digit growth in new customers over last year. As such, we remain well-positioned to achieve our 2022 financial guidance. Now, moving on to other recent highlights. Our sensitive COVID-19 vaccine model continues to get recognized for its contributions to combating the pandemic and improving patient outcomes. A few weeks ago, we were honored to receive a Thomas Edison Award in the Therapeutic Impact category. Winning an Edison Award is one of the highest accolades a company can receive for the successful launch of a game-changing new product or service. Results from our COVID-19 vaccine model have been submitted to global regulatory agencies, including the FDA, to support clinical trial designs. Our clients and we are currently using the COVID-19 vaccine model to optimize dosing for special populations, such as the elderly and children. The FDA continues to support expanded use cases of biosimulation to help advance the safety and efficacy of medicines. On our last earnings call, we highlighted our first quarter announcement that the FDA recently licensed our immunogenicity simulator to be used in evaluation of biologics. Immunity reactions can be a major problem in biologics and can lead to reduced effectiveness and or adverse events. Our simulator helps guide improved study design to drive better clinical outcomes. In February, the FDA released draft guidance providing recommendations for incorporating clinically relevant information into the labeling of products having immunogenicity assessments. We think that this is a growth area within the R&D pipelines at customers. Additionally, as I've mentioned, the FDA's Project Optimist is an initiative to reform the dose optimization and selection paradigm in oncology drug development. There was a dosing workshop just this week held by the FDA that we contributed to. This is a positive development for the use of biosimulation regarding dose finding and optimizing clinical study design. We continue to invest in capabilities that are strategically aligned with regulatory guidance. Innovation and growth are driven by the people at Sitara. We remain committed to growing, retaining, and developing talent at Sitara, and we have invested in additional professional development programs to support these goals. Our culture, people, and commitment to innovation and customer partnerships continue to make Sitara an employer of choice. We continue to invest in our global team of experts across the organization, and we're well-positioned to capitalize on the opportunities ahead. We started the year with a higher level of investment, particularly in software R&D and sales. Specifically, we're investing to expand the use cases of our SimSip simulator and also advancing R&D initiatives to support Pinnacle 21 enterprise software development. This elevated level of investment did pressure our reported adjusted EBITDA margins in the quarter, as Andy will discuss in a minute, but I remain confident in our ability to deliver on our EBITDA guidance for the year. A few weeks ago, Sitara issued its inaugural ESG report, which can be found on our investor relations websites. This report relays our commitment to understanding, managing, and monitoring our ESG impact to support sustainable growth, and we are pleased to share it with our stakeholders. In summary, I'm pleased with the performance of the company in the first quarter and our continued dedication to advance global adoption of our software and technology-driven services. We remain on track to achieve our revenue and adjusted EBITDA goals for the remainder of the year. I will now turn it over to our CFO, Anders Chemek, to discuss first quarter financial results in more detail.