Guidance Confidence
Q: How confident are you in meeting revenue guidance?
A: Despite tracking toward the lower half of our revenue guidance due to Tier 1 services underperformance , we remain confident we won't slip below the bottom end. Strong software performance, positive signs among Tier 3 customers, and typical second-half seasonality support our confidence.

Cost Reductions and Growth Impact
Q: How will cost reductions affect long-term growth?
A: We've reallocated resources to focus on high-growth areas like software and AI without cutting investments in new products or our long-term vision. Cost actions will yield about a 500 basis point benefit, impacting cost of sales and operating expenses. These measures help maintain our EBITDA margin guidance while preserving growth opportunities.

Chemaxon Acquisition Rationale
Q: Why acquire Chemaxon?
A: Chemaxon expands our reach into the preclinical and discovery phases, areas ripe for biosimulation impact. Their tools help clients make informed decisions on drug optimization, enhancing our biosimulation suite and enabling greater success in drug development.

Biotech Funding Dynamics
Q: How are biotech funding trends affecting you?
A: We observed a pickup in small biotech funding in Q1, which started to flow through in Q2 after a lag. This is encouraging after prior weakness in this segment. Larger customers are showing more caution in spending, which we've factored into our guidance.

Services Environment Impact on Software
Q: Is services weakness affecting software offerings?
A: Despite a tougher services environment, software spending remains strong as customers view it as critical infrastructure. Our new product CoAuthor offers significant cost savings, making it appealing in any environment focused on efficiency.

Software Bookings and CoAuthor Impact
Q: What's driving software bookings growth?
A: Strong growth in core products like Simcyp and Pinnacle 21 drove bookings. CoAuthor was fully launched at the end of June, too early to impact Q2 significantly, but it's received considerable interest.

Services Pricing Strategy
Q: How are you handling services pricing?
A: Given cautious spending and slower decision-making among Tier 1 customers, we're still increasing prices but more modestly.

Potential for Services Pickup
Q: Will services revenue improve in H2?
A: We anticipate a typical seasonal pickup in services in the latter part of the year, especially in Q4, similar to last year. Our guidance includes this expectation.

Adjustments to Investments
Q: Why adjust investments made earlier in the year?
A: Market conditions changed since our initial plans; Tier 1 services customers underperformed. We've slowed headcount growth and targeted underutilized areas to maintain EBITDA while continuing to invest in software and AI.

Impact of Certara Cloud
Q: Did Certara Cloud affect Q2 bookings?
A: It's still early for Certara Cloud to materially impact bookings. While it's key to our strategy, it wasn't a meaningful part of Q2 results.

Tier 1 Services Weakness
Q: Is services weakness confined to specific areas?
A: The weakness in Tier 1 services is across both regulatory and biosimulation services.

Expectations for Biotech Performance
Q: What's the outlook for biotech customers?
A: We're not planning for an uplift in Tier 3 biotech customers for the rest of the year, expecting stability instead. We anticipate typical seasonality and a pickup in Tier 1 activity in Q4.

Smaller vs. Larger Customer Trends
Q: Do large customers follow small customers' trends?
A: The markets operate differently; large customers are reassessing portfolios, while small ones focus on specific drugs. We don't see a causal link affecting large customers based on small customer trends.