IQVIA Holdings Inc.
CEO : Mr. Ari Bousbib
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q2 | 5.3% YoY | 15.7% | 18.4% | 2023-08-01 |
Ron Bruehlman says,
Revenue Performance
- Second quarter revenue of $3.728 billion grew 5.3% on a reported basis and 5.5% at constant currency.
- COVID-rebated revenues were approximately $120 million, down $140 million compared to the second quarter of 2022.
- Organic growth at constant currency, excluding COVID-rebated work, was 9%.
Segment Revenue
- Technology & Analytics Solutions (TAS) revenue was $1.456 billion, up 3.4% reported and constant currency basis.
- Organic growth at constant currency, excluding COVID-related work, was 6% in TAS.
- R&D Solutions (R&DS) revenue was $2.096 billion, up 7.5% reported and 7.6% at constant currency.
- Organic growth at constant currency, excluding COVID-related work, was 12% in R&DS.
- Contract Sales and Medical Solutions (CSMS) revenue was $176 million, declined 3.8% reported and was flat at constant currency.
Financials
- Adjusted EBITDA for the second quarter was $864 million, representing 8% growth.
- First half adjusted EBITDA was $1.715 billion, up 6.4% year-over-year.
- GAAP net income for the second quarter was $297 million, with diluted earnings per share of $1.59.
- Adjusted net income for the second quarter was $454 million, with adjusted diluted earnings per share of $2.43.
Backlog and Balance Sheet
- Backlog at June 30 stood at a record $28.4 billion, up 11% year-over-year.
- Cash and cash equivalents totaled $1.382 billion, and net debt was $12.395 billion.
Guidance
- Revenue guidance for the full year is between $15.050 billion and $15.175 billion, representing year-over-year growth of 4.4% to 5.3%.
- Total company organic growth at constant currency, excluding COVID-related work, is expected to be between 8% and 9% for the year.
- TAS is expected to grow approximately 6%, R&DS segment is unchanged, and CSMS revenue is expected to decline approximately 3%.
- Adjusted EBITDA guidance for the full year is $3.600 billion to $3.635 billion, representing year-over-year growth of 7.6% to 8.6%.
- Adjusted diluted EPS guidance is $10.20 to $10.45, representing year-over-year growth of 0.4% to 2.9%.
Ari Bousbib says,
Positive Industry Trends
- 9% organic revenue growth in Q2 2023, excluding the impact of foreign exchange and COVID-related work
- Emerging biotech funding increased by 33% compared to the prior year
- Clinical trial starts were up over 10% sequentially compared to Q1 2023
- 26 FDA approvals in the first half of the year, up 30% compared to the average of the prior five years
- M&A activity in the biopharma sector remains strong with over $90 billion spent in the first half of 2023
Strong Demand and Performance
- Net new bookings in Q2 2023 were just under $2.7 billion, the second largest quarter ever
- Quarterly book-to-bill ratio of 1.28
- Services book-to-bill ratio for the quarter was 1.34
Q & A sessions,
Bookings and Backlog
- Trailing 12-month book-to-bill ratio is 1.34, indicating strong bookings.
- Backlog reached $28.4 billion, growing 11% YoY.
- Quarterly RFP flow was the largest ever, up 8% YoY and 6% sequentially.
Commercial Business Segments
- Some subsegments, TAS and CSMS, have seen cautious client spending due to uncertain macroeconomic conditions.
- Commercial businesses expected to perform similarly to the first half of the year, with approximately 6% organic growth for the TAS segment.
Financial Performance
- Q2 revenue grew 5.3% on a reported basis and 5.5% at constant currency.
- Adjusted EBITDA increased 8% driven by revenue growth and cost management discipline.
- Adjusted diluted EPS faced headwinds but would have grown 14% excluding non-operational items.
Business Highlights
- Awarded significant contracts with top 10 pharma clients for commercial data and analytics solutions, analytics project for tracking sales performance of immunotherapy oncology drug, and deployment of AI-powered multichannel sales management application.
- Selected to deliver regulatory-mandated plus post-approval safety studies in Europe, including a five-year pregnancy exposure study.
- Recognized with awards for AI-based solutions in healthcare and designated as innovation of the year by two top 10 pharma companies.
- Strong performance in R&DS segment, including key wins in oncology trials, FSP partnership renewal, and award for largest laboratory service provider.
Staffing and Site Start-up
- Attrition rates back to pre-pandemic levels of 10% to 12%.
- Continuing active recruitment to meet organic growth demand.
- Improvements in site staffing issues, but sporadic challenges still exist.
No bad stock 