IQVIA Holdings Inc.
CEO : Mr. Ari Bousbib
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 2.8% YoY | -18.1% | -26.9% | 2023-02-10 |
Ron Bruehlman says,
Revenue Growth
- Fourth quarter revenue of $739 million grew 2.8% on a reported basis and 7% at constant currency.
- For the full-year, revenue was $14,410 million growing at 3.9% on a reported basis and 7.8% at constant currency.
- COVID-related revenues totaled approximately $1 billion for the year.
- Organic growth at constant currency was 10% in the base business, excluding all COVID-related work from both this year and last.
Adjusted EBITDA and Net Income
- Adjusted EBITDA was $920 million for the fourth quarter, representing growth of 11.1% while full-year adjusted EBITDA was $3,346 million which was up 10.7% year-over-year.
- Fourth quarter GAAP net income was $227 million. And GAAP diluted earnings per share was $1.20. Full-year GAAP net income was $1,091 million or $5.72 of earnings per diluted share.
- Adjusted net income was $524 million in the fourth quarter. And adjusted diluted earnings per share grew 9% to $2.78.
R&D Solutions
- R&D Solutions fourth-quarter revenue of $2,058 million was up 5.9% reported and 9.3% at constant currency.
- Backlog at December 31 stood at a record $27.2 billion which was up 9.6% year-over-year on a reported basis and 11.6% adjusting for the impact of foreign exchange.
- Full-year net new business increased $10.8 billion, growing 6.2% year-over-year on a reported basis.
- Full-year revenue in R&D Solutions was $7,921 million growing 4.8% reported and 7.7% at constant currency.
2023 Guidance
- For the full-year 2023, total revenue is expected to be between $15.150 billion and $15.400 billion representing year-over-year growth of 5.1% to 6.9%.
- Adjusted EBITDA guidance is $3.625 billion to $3.695 billion, our growth of 8.3% to 10.4%.
- Adjusted diluted EPS guidance is $10.26 to $10.56 representing year-over-year growth of 1% to 3.9%.
- Our guidance implies adjusted EPS growth of 11% to 14%.
Debt and Balance Sheet
- Net leverage ratio ended the year at 3.45 times trailing 12-month adjusted EBITDA.
- As of December 31, cash and cash equivalence totaled $1,216 million, and gross debt was $12,747 million.
- December 31 marked the end of our Vision 2022 three-year plan and we exceeded our commitments.
Ari Bousbib says,
Record Year for R&DS Business
- Bookings of $10.8 billion, highest ever, and backlog at a record $27.2 billion
- Added over 275 new customers in the year
- Improved access to critical research and expanded decentralized clinical trial capabilities
Real World Business Advancements
- Increased active data sources by more than 30% across more than 50 countries
- Enhanced access to real world data for European and U.S. regulators through partnerships
- Expanded digital marketing capabilities with the acquisition of Lasso Marketing
Capital Deployment and Debt Reduction
- Deployed capital of $3.7 billion during the year, including $1.3 billion in acquisitions
- Reduced net leverage ratio to 3.45 times adjusted EBITDA
Confidence in 2025 Goals
- More molecules in development than at any other time in history
- RFP flow up 13% for the full-year with acceleration in Q4 to 22%
- Net new business reached a record $3.1 billion in Q4, up 29% versus prior year
Strong Financial Performance
- Revenue for Q4 grew 2.8% on a reported basis, 7% at constant currency compared to last year
- Grew the top line 10% at constant currency on an organic basis
- Fourth quarter adjusted EBITDA increased 11.1%
Q & A sessions,
ome factors specific to our industry that are driving wage inflation.
Impact of Foreign Currency Rates
- Foreign currency rates led to a loss of approximately $500 million in revenue in 2022.
Expected EBITDA and Earnings per Share
- Company is confident of achieving its ’25 goals for EBITDA and earnings per share.
Market Share Gains
- Company has been gaining market share since its merger and is displacing competitors.
- Rescue studies have not played a significant role in market share gains.
Segment Growth
- The fast-growing segments in the business are real-world and technology.
- The more discretionary spend segments, such as analytics and consulting, saw slower growth in Q4 2022.
Impact of Macro Factors
- Macro factors such as interest expense, wage inflation, and geopolitical risks are affecting the company’s operations.
- The company is taking actions such as productivity initiatives and cost-cutting to address wage inflation.
- Interest expense will have a one-time step-up, and the company is reducing its debt levels.
Inflation Reduction Act
- The Inflation Reduction Act is subject to negotiations, and many details are yet to be finalized.
- Pharma CEOs believe that the act could be harmful to innovation and patients.
Wage Inflation
- The company is experiencing significant wage inflation due to high demand for healthcare, data science, and software development expertise.
- Competition from other healthcare, tech, and data science companies is also driving up compensation programs.
No bad stock 