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CFO Anna Bryson stated that while larger customers will continue to lead growth, the company is seeing exciting traction with SMB and new customers through its agency partner program, viewing it as a long-term growth vector. CSO Dr. Nate Gross added that while policy uncertainty exists, the science behind new therapies is strong, and Doximity's high ROI makes it a resilient, 'well-insulated platform' even if budgets tighten.

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Executive John Johnson confirmed that no risk corridors have been hit this early in the year. He explained that while minor variations exist at a granular contract level, there are no predictable, macro-level margin differences by state or line of business. He noted the percentage-based savings opportunity is consistent across populations.

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CFO John Johnson explained that the EBITDA from organic growth is front-half loaded, driven by deals already live. He noted that while new Performance Suite contracts won't contribute much EBITDA in 2025, their ramp to mature margins is now expected to be faster at 18 months. CEO Seth Blackley added that the large national plan win is expected to go live around mid-year 2025.

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John Johnson explained that the recent spike in medical costs has impacted all contract cohorts, not just new ones. While reaffirming the mid-teens long-term margin target, he noted that the company is evaluating symmetric risk corridors with partners, which could trade a slightly lower margin for greater downside protection.

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CFO John Gallagher indicated it was too early to provide a timeline or quantify the financial impact of Non-animal Navigator, suggesting it would be a post-Q2 development. CEO William Feehery discussed AI initiatives like the Co-author product, noting they have meaningful revenue and attract significant customer attention. He clarified Certara's strategy is to enhance its core biosimulation offerings with AI, not to become a general AI company.

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CFO John Gallagher explained that the guidance range is contingent on end-market conditions, specifically the spending patterns of Tier 1 and Tier 3 customers, which remain challenging despite strong Q4 execution by the commercial team. He added that the 2025 adjusted EBITDA margin guidance of 30-32% reflects continued R&D investments in software and AI, as well as the initial margin impact of integrating the newly acquired Chemaxon.

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Executive William Feehery stated that while some year-end budget flush is possible, it is not factored into guidance. He attributed strong performance to investments in the commercial team and inherent demand for biosimulation. Feehery explained that Certara Cloud is acting as a platform 'glue,' lowering customer IT costs, simplifying security audits, and making it easier to cross-sell products, thereby fostering overall software growth.

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Executive Shawn O'Connor explained the PBPK partnership is a 12+ month project that was in the works for about six months. He described it as a key method for developing technology that will be integrated into their GastroPlus product. O'Connor reiterated that the ALI (Pro-ficiency software) revenue is lumpy and tied to clinical trial starts, which were slow in Q2. He noted that the differing business cadences of the legacy and acquired units are smoothing the company's overall seasonality across the second, third, and fourth quarters.

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Executive Shawn O'Connor explained that the seasonality of the acquired businesses is not evenly distributed, with the calendar year-end (SLP's Q1) being a slower period. He expects activity to peak in SLP's Q2-Q4. Regarding client activity, he stated it's 'all over the map' with no single clear pattern, though he noted obvious trends such as financially strong companies and active therapeutic areas like oncology and obesity showing more robust activity.

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Executive Balaji Gandhi explained that not all 170 million visits are monetized through all revenue streams. He noted that Network Solutions revenue per visit continues to increase, a trend incorporated into the fiscal 2026 outlook, and confirmed their positive view on the pharma selling season remains unchanged.

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Executive Balaji Gandhi attributed the strong outlook primarily to operating leverage on expenses below the gross margin line. He explained that with gross margins now stable after prior investments, revenue growth is the biggest driver of EBITDA expansion against disciplined operating expenses.

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CEO Peter Gassner described Veeva Pulse as a 'revolutionary' product that generates privacy-safe industry benchmark data from CRM activity for segmentation and targeting. He noted plans to add more countries in Southeast Asia and Japan. He highlighted its strong start, with the first deal being a 7-figure contract with a top-20 pharma company.

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CEO Parth Mehrotra reported that the program is progressing well, using the Community Medical Group in Connecticut as an example. While the long-term goal is to migrate providers to Privia's integrated tech stack, the Care Partners model serves as an effective lever for near-term expansion, attribution growth, and value-based care performance.

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CEO Parth Mehrotra explained that their approach with health system partners is highly customized to each specific situation. He described the model as flexible and a unique value proposition for health systems looking to manage their affiliated or employed provider networks. While acknowledging not every partnership will be perfect, he views it as another valuable and strategic angle for market entry.

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