Simulations Plus, Inc. (NASDAQ:SLP) Q2 2023 Earnings Conference Call April 5, 2023 5:00 PM ET
Company Participants
Brian Siegel - IR, Hayden IR
Shawn O'Connor - Chief Executive Officer
Will Frederick - Chief Financial Officer
Conference Call Participants
François Brisebois - Oppenheimer
Matt Hewitt - Craig-Hallum
Mitra Ramgopal - Sidoti
Dane Leone - Raymond James
Operator
Greetings, and welcome to the Simulations Plus Second Quarter Fiscal 2023 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce Brian Siegel from Hayden IR. Thank you. Mr. Siegel, you may begin.
Brian Siegel
Good afternoon, everyone. Welcome to our second quarter fiscal 2023 financial results conference call. With me today is our CEO, Shawn O'Connor; and our CFO, Will Frederick. After their portion of the call, we will open the floor to questions.
Before we begin, I want to remind everyone that except for historical information, the matters discussed in this presentation are forward-looking statements that involve risks and uncertainties. Words like believe, expect and anticipate refer to our best estimates as of this call, and there can be no assurances that we will -- that these will actually take place. So our actual future results could differ significantly from these statements. Further information on the company's risk factors is contained in the company's quarterly and annual reports and filed with the U.S. SEC.
With that said, I would like to turn the call over to Shawn O'Connor. Shawn?
Shawn O'Connor
Thank you, Brian, and thank you all for joining us on our second quarter conference call. This was a solid quarter for Simulations Plus. Second quarter revenue grew 6% year-over-year. Our software business grew 7%, generally in line with expectations reflecting the changes we proactively made in our renewal program and the service business grew by 4% year-over-year, highlighted by the PKPD and PBPK offerings.
From a profitability perspective, we maintained solid margins and saw improvement over the first quarter as revenues grew, leading to $4.2 million of net income, or $0.20 per diluted share. This result exceeded our guidance for the quarter. We continue to successfully navigate a challenging economy and its impact on our sales cycle.
Drug developers are delaying purchases and elongating the sales cycle. For the most part, we have not lost opportunities, but this did impact our growth in the second quarter. I reiterate that we've taken this into account when preparing our 2023 full year outlook.