Certara Inc (CERT)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-55,143	-39,034	23,068	17,478	18,755	14,873	2,987	-1,208	-3,375
Revenue (ttm)	US$ in thousands	330,662	333,169	332,975	327,074	320,407	309,191	300,367	285,250	269,717
Pretax margin		-16.68%	-11.72%	6.93%	5.34%	5.85%	4.81%	0.99%	-0.42%	-1.25%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-55,143K ÷ $330,662K
= -16.68%

To analyze Certara Inc's pretax margin over the past eight quarters, we observe fluctuations in the company's profitability before accounting for taxes.

The pretax margin was negative in the most recent quarter, Q4 2023, at -15.56%, indicating that the company's expenses exceeded its revenue before taxes. This contrasts with Q3 2023, where the pretax margin improved but remained negative at -11.06%.

In Q2 2023, Certara Inc saw a significant upturn in profitability with a pretax margin of 6.55%, which continued to improve slightly in Q1 2023 to 5.08%. These positive margins suggest that the company generated profits before considering income taxes during these periods.

Looking back to Q4 2022, the pretax margin stood at 5.59%, showing a slight decrease from the previous quarter. In Q3 and Q2 of 2022, the pretax margins were 4.59% and 0.95%, respectively, indicating modest profitability, albeit at lower levels.

Notably, Certara Inc experienced a negative pretax margin in Q1 2022 at -0.40%, demonstrating a struggle to cover expenses and generate profits before tax obligations.

In summary, Certara Inc's pretax margin has exhibited volatility in recent quarters, with fluctuations between negative and positive figures. Q2 2023 stood out as a period of relatively strong profitability, while the company faced challenges in other quarters, particularly the most recent quarter, Q4 2023.