Costine David's questions to Simulations Plus Inc (SLP) leadership • Q4 2024
Question
Costine David, on behalf of an unnamed analyst, asked about the company's pricing strategy for the upcoming year and how it compares to the previous year. He also inquired whether the company expects to see more operating leverage on its sales and R&D expenses in fiscal 2025 after several years of elevated growth.
Answer
Executive Shawn O'Connor stated that the price increase approach for fiscal 2025 is relatively comparable to last year's, which was less aggressive than in fiscal 2022. He affirmed that the company expects to gain more leverage from past investments in sales, marketing, and R&D, noting these investments have already driven strong execution. O'Connor emphasized a focus on returning the business to its historical profitability target of 35%+ adjusted EBITDA.