- Revenue of $3,737 million
- GAAP Net Income of $288 million, Adjusted EBITDA of $862
million
- GAAP Diluted Earnings per Share of $1.56, Adjusted Diluted
Earnings per Share of $2.54
- R&D Solutions quarterly bookings of $2.6 billion,
representing a book-to-bill ratio of 1.23x
- R&D Solutions contracted backlog of $30.1 billion, up
7.9 percent year-over-year
IQVIA Holdings Inc. (“IQVIA”) (NYSE:IQV), a leading global
provider of advanced analytics, technology solutions, and clinical
research services to the life sciences industry, today reported
financial results for the quarter ended March 31, 2024.
First-Quarter 2024 Operating Results Revenue for the
first quarter of $3,737 million increased 2.3 percent on a reported
basis and 2.9 percent at constant currency, compared to the first
quarter of 2023. Technology & Analytics Solutions (TAS) revenue
of $1,453 million increased 0.6 percent on a reported basis and 1.0
percent at constant currency. Research & Development Solutions
(R&DS) revenue of $2,095 million increased 3.4 percent on a
reported basis and 3.8 percent at constant currency. Excluding the
impact of pass throughs, R&DS revenue grew 6.9 percent on a
reported basis. Contract Sales & Medical Solutions (CSMS)
revenue of $189 million increased 3.8 percent on a reported basis
and 7.1 percent at constant currency.
As of March 31, 2024, R&DS contracted backlog, including
reimbursed expenses, was $30.1 billion, growing 7.9 percent
year-over-year and 8.3 percent at constant currency. The company
expects approximately $7.7 billion of this backlog to convert to
revenue in the next twelve months. The first-quarter book-to-bill
ratio was 1.23x, including cancellation of a large central nervous
system program (over 1.3x excluding this cancellation). For the
twelve months ended March 31, 2024, the book-to-bill ratio was
1.26x.
“The IQVIA team executed well in the first quarter, including
strong bookings and robust free cash flow generation,” stated Ari
Bousbib, chairman and CEO of IQVIA. "The TAS segment revenue grew
as expected in the quarter, and we continue to anticipate gradual
improvement later in the year. The R&DS segment continued to
see strong demand in the quarter, with healthy RFP growth. We
anticipate R&DS will grow consistent with our prior
expectations, bolstered by strong bookings and our industry leading
backlog of over $30 billion."
First-quarter GAAP Net Income was $288 million and GAAP Diluted
Earnings per Share was $1.56. Adjusted Net Income was $468 million
and Adjusted Diluted Earnings per Share was $2.54. Adjusted EBITDA
was $862 million, up 1.3 percent year-over-year.
Financial Position As of March 31, 2024, cash and cash
equivalents were $1,444 million and debt was $13,536 million,
resulting in net debt of $12,092 million. IQVIA’s Net Leverage
Ratio was 3.38x trailing twelve-month Adjusted EBITDA. For the
first quarter, Operating Cash Flow was $522 million and Free Cash
Flow was $377 million.
Full-Year 2024 Guidance The company reaffirms its
full-year revenue guidance on a constant currency basis. After
adjusting for the $75 million impact of the strengthening US dollar
since February 12, 2024, the revenue guidance is now $15,325
million to $15,575 million on a reported basis, resulting in growth
of 2.3 to 3.9 percent. This guidance represents a year-over-year
foreign exchange headwind of ~100 basis points, versus the ~50
basis points headwind included in the previous guidance. This
guidance continues to assume approximately $300 million of
COVID-related revenue step down as well as ~100 basis points of
contribution from acquisitions.
The company reaffirms its full-year Adjusted EBITDA guidance of
$3,700 million to $3,800 million, representing growth of 3.7 to 6.5
percent.
The company reaffirms its full-year Adjusted Diluted EPS
guidance of $10.95 to $11.25, up 7.4 to 10.3 percent
year-over-year.
All financial guidance assumes foreign currency exchange rates
as of April 30, 2024 remain in effect for the forecast period.
Webcast & Conference Call Details IQVIA will host a
conference call at 9:00 a.m. Eastern Time today to discuss its
first-quarter 2024 results and its second-quarter and full-year
2024 guidance. To listen to the event and view the presentation
slides via webcast, join from the IQVIA Investor Relations website
at http://ir.iqvia.com. To participate in the conference call,
interested parties must register in advance by clicking on this
link. Following registration, participants will receive a
confirmation email containing details on how to join the conference
call, including the dial-in and a unique passcode and registrant
ID. At the time of the live event, registered participants connect
to the call using the information provided in the confirmation
email and will be placed directly into the call.
About IQVIA IQVIA (NYSE:IQV) is a leading global provider
of advanced analytics, technology solutions, and clinical research
services to the life sciences industry. IQVIA creates intelligent
connections across all aspects of healthcare through its analytics,
transformative technology, big data resources, extensive domain
expertise and network of partners. IQVIA Connected Intelligence™
delivers actionable insights and powerful solutions with speed and
agility — enabling customers to accelerate the clinical development
and commercialization of innovative medical treatments that improve
healthcare outcomes for patients. With approximately 87,000
employees, IQVIA conducts operations in more than 100
countries.
IQVIA is a global leader in protecting individual patient
privacy. The company uses a wide variety of privacy-enhancing
technologies and safeguards to protect individual privacy while
generating and analyzing information on a scale that helps
healthcare stakeholders identify disease patterns and correlate
with the precise treatment path and therapy needed for better
outcomes. IQVIA’s insights and execution capabilities help biotech,
medical device and pharmaceutical companies, medical researchers,
government agencies, payers and other healthcare stakeholders tap
into a deeper understanding of diseases, human behaviors and
scientific advances, in an effort to advance their path toward
cures. To learn more, visit www.iqvia.com.
Cautionary Statements Regarding Forward-Looking
Statements This press release contains “forward-looking
statements” within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including, without limitation, our full-year 2024 guidance. In this
context, forward-looking statements often address expected future
business and financial performance and financial condition, and
often contain words such as “expect,” “assume,” “anticipate,”
“intend,” “plan,” “forecast,” “believe,” “seek,” “see,” “will,”
“would,” “target,” similar expressions, and variations or negatives
of these words that are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Actual results may differ materially from
our expectations due to a number of factors, including, but not
limited to, the following: business disruptions caused by natural
disasters, pandemics such as the COVID-19 (coronavirus) outbreak,
including any variants, and the public health policy responses to
the outbreak, and international conflicts or other disruptions
outside of our control such as the current situation in Ukraine and
Russia; most of our contracts may be terminated on short notice,
and we may lose or experience delays with large client contracts or
be unable to enter into new contracts; the market for our services
may not grow as we expect; we may be unable to successfully develop
and market new services or enter new markets; imposition of
restrictions on our use of data by data suppliers or their refusal
to license data to us; any failure by us to comply with
contractual, regulatory or ethical requirements under our
contracts, including current or future changes to data protection
and privacy laws; breaches or misuse of our or our outsourcing
partners’ security or communications systems; failure to meet our
productivity or business transformation objectives; failure to
successfully invest in growth opportunities; our ability to protect
our intellectual property rights and our susceptibility to claims
by others that we are infringing on their intellectual property
rights; the expiration or inability to acquire third party licenses
for technology or intellectual property; any failure by us to
accurately and timely price and formulate cost estimates for
contracts, or to document change orders; hardware and software
failures, delays in the operation of our computer and
communications systems or the failure to implement system
enhancements; the rate at which our backlog converts to revenue;
our ability to acquire, develop and implement technology necessary
for our business; consolidation in the industries in which our
clients operate; risks related to client or therapeutic
concentration; government regulators or our customers may limit the
number or scope of indications for medicines and treatments or
withdraw products from the market, and government regulators may
impose new regulatory requirements or may adopt new regulations
affecting the biopharmaceutical industry; the risks associated with
operating on a global basis, including currency or exchange rate
fluctuations and legal compliance, including anti-corruption laws;
risks related to changes in accounting standards; general economic
conditions in the markets in which we operate, including financial
market conditions, inflation, and risks related to sales to
government entities; the impact of changes in tax laws and
regulations; and our ability to successfully integrate, and achieve
expected benefits from, our acquired businesses. For a further
discussion of the risks relating to our business, see the “Risk
Factors” in our annual report on Form 10-K for the fiscal year
ended December 31, 2023, filed with the Securities and Exchange
Commission (the "SEC"), as such factors may be amended or updated
from time to time in our subsequent periodic and other filings with
the SEC, which are accessible on the SEC’s website at www.sec.gov.
These factors should not be construed as exhaustive and should be
read in conjunction with the other cautionary statements that are
included in this release and in our filings with the SEC. We assume
no obligation to update any such forward-looking statement after
the date of this release, whether as a result of new information,
future developments or otherwise.
Note on Non-GAAP Financial Measures This release includes
information based on financial measures that are not recognized
under generally accepted accounting principles in the United States
("GAAP"), such as Adjusted EBITDA, Adjusted Net Income, Adjusted
Diluted Earnings per Share, Gross Leverage Ratio, Net Leverage
Ratio and Free Cash Flow. Non-GAAP financial measures are presented
only as a supplement to the company’s financial statements based on
GAAP. Non-GAAP financial information is provided to enhance
understanding of the company’s financial performance, but none of
these non-GAAP financial measures are recognized terms under GAAP,
and non-GAAP measures should not be considered in isolation from,
or as a substitute analysis for, the company’s results of
operations as determined in accordance with GAAP. The company uses
non-GAAP measures in its operational and financial decision making,
and believes that it is useful to exclude certain items in order to
focus on what it regards to be a more meaningful indicator of the
underlying operating performance of the business. For example, the
company excludes all the amortization of intangible assets
associated with acquired customer relationships and backlog,
databases, non-compete agreements, trademarks and trade names from
non-GAAP expense and income measures as such amounts can be
significantly impacted by the timing and size of acquisitions.
Although we exclude amortization of acquired intangible assets from
our non-GAAP expenses, we believe that it is important for
investors to understand that revenue generated from such
intangibles is included within revenue in determining net income.
As a result, internal management reports feature non-GAAP measures
which are also used to prepare strategic plans and annual budgets
and review management compensation. The company also believes that
investors may find non-GAAP financial measures useful for the same
reasons, although investors are cautioned that non-GAAP financial
measures are not a substitute for GAAP disclosures.
The non-GAAP financial measures are not presented in accordance
with GAAP. Please refer to the schedules attached to this release
for reconciliations of non-GAAP financial measures contained herein
to the most directly comparable GAAP measures. Our full-year 2024
guidance measures (other than revenue) are provided on a non-GAAP
basis without a reconciliation to the most directly comparable GAAP
measure because the company is unable to predict with a reasonable
degree of certainty certain items contained in the GAAP measures
without unreasonable efforts. For the same reasons, the company is
unable to address the probable significance of the unavailable
information. Such items include, but are not limited to,
acquisition related expenses, restructuring and related expenses,
stock-based compensation and other items not reflective of the
company's ongoing operations.
Non-GAAP measures are frequently used by securities analysts,
investors and other interested parties in their evaluation of
companies comparable to the company, many of which present non-GAAP
measures when reporting their results. Non-GAAP measures have
limitations as an analytical tool. They are not presentations made
in accordance with GAAP, are not measures of financial condition or
liquidity and should not be considered as an alternative to profit
or loss for the period determined in accordance with GAAP or
operating cash flows determined in accordance with GAAP. Non-GAAP
measures are not necessarily comparable to similarly titled
measures used by other companies. As a result, you should not
consider such performance measures in isolation from, or as a
substitute analysis for, the company’s results of operations as
determined in accordance with GAAP.
IQVIAFIN
Table 1 IQVIA HOLDINGS INC.
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(preliminary and unaudited)
Three Months Ended March
31,
(in millions, except per share
data)
2024
2023
Revenues
$
3,737
$
3,652
Cost of revenues, exclusive of
depreciation and amortization
2,444
2,398
Selling, general and administrative
expenses
508
513
Depreciation and amortization
264
253
Restructuring costs
15
17
Income from operations
506
471
Interest income
(11
)
(6
)
Interest expense
166
141
Other expense (income), net
11
(26
)
Income before income taxes and equity in
losses of unconsolidated affiliates
340
362
Income tax expense
49
71
Income before equity in losses of
unconsolidated affiliates
291
291
Equity in losses of unconsolidated
affiliates
(3
)
(2
)
Net income
$
288
$
289
Earnings per share attributable to common
stockholders:
Basic
$
1.58
$
1.56
Diluted
$
1.56
$
1.53
Weighted average common shares
outstanding:
Basic
181.9
185.8
Diluted
184.3
188.6
Table 2 IQVIA HOLDINGS INC.
AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(preliminary and unaudited)
(in millions, except per share
data)
March 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,444
$
1,376
Trade accounts receivable and unbilled
services, net
3,426
3,381
Prepaid expenses
173
141
Income taxes receivable
35
32
Investments in debt, equity and other
securities
131
120
Other current assets and receivables
442
546
Total current assets
5,651
5,596
Property and equipment, net
513
523
Operating lease right-of-use assets
278
296
Investments in debt, equity and other
securities
109
105
Investments in unconsolidated
affiliates
154
134
Goodwill
14,516
14,567
Other identifiable intangibles, net
4,725
4,839
Deferred income taxes
152
166
Deposits and other assets, net
476
455
Total assets
$
26,574
$
26,681
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
3,455
$
3,564
Unearned income
1,914
1,799
Income taxes payable
155
116
Current portion of long-term debt
717
718
Other current liabilities
207
294
Total current liabilities
6,448
6,491
Long-term debt, less current portion
12,819
12,955
Deferred income taxes
164
202
Operating lease liabilities
204
223
Other liabilities
595
698
Total liabilities
20,230
20,569
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in
capital, 400.0 shares authorized as of March 31, 2024 and December
31, 2023, $0.01 par value, 257.9 shares issued and 182.2 shares
outstanding as of March 31, 2024; 257.2 shares issued and 181.5
shares outstanding as of December 31, 2023
11,016
11,028
Retained earnings
4,980
4,692
Treasury stock, at cost, 75.7 and 75.7
shares as of March 31, 2024 and December 31, 2023, respectively
(8,741
)
(8,741
)
Accumulated other comprehensive loss
(911
)
(867
)
Total stockholders’ equity
6,344
6,112
Total liabilities and stockholders’
equity
$
26,574
$
26,681
Table 3 IQVIA HOLDINGS INC.
AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (preliminary and unaudited)
Three Months Ended March
31,
(in millions)
2024
2023
Operating activities:
Net income
$
288
$
289
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
264
253
Amortization of debt issuance costs and
discount
5
4
Stock-based compensation
56
75
Losses from unconsolidated affiliates
3
2
Gain on investments, net
(12
)
(4
)
Benefit from deferred income taxes
(66
)
(27
)
Changes in operating assets and
liabilities:
Change in accounts receivable, unbilled
services and unearned income
65
(107
)
Change in other operating assets and
liabilities
(81
)
(68
)
Net cash provided by operating
activities
522
417
Investing activities:
Acquisition of property, equipment and
software
(145
)
(164
)
Acquisition of businesses, net of cash
acquired
(142
)
(18
)
Purchases of marketable securities,
net
(1
)
(4
)
Investments in unconsolidated affiliates,
net of payments received
(24
)
(7
)
Investments in debt and equity
securities
(2
)
(36
)
Other
—
7
Net cash used in investing activities
(314
)
(222
)
Financing activities:
Repayment of debt and principal payments
on finance leases
(43
)
(39
)
Proceeds from revolving credit
facility
275
475
Repayment of revolving credit facility
(275
)
(100
)
Payments related to employee stock
incentive plans
(60
)
(58
)
Repurchase of common stock
—
(129
)
Contingent consideration and deferred
purchase price payments
(3
)
(62
)
Net cash (used in) provided by financing
activities
(106
)
87
Effect of foreign currency exchange rate
changes on cash
(34
)
(4
)
Increase in cash and cash equivalents
68
278
Cash and cash equivalents at beginning of
period
1,376
1,216
Cash and cash equivalents at end of
period
$
1,444
$
1,494
Table 4 IQVIA HOLDINGS INC.
AND SUBSIDIARIES NET INCOME TO ADJUSTED EBITDA RECONCILIATION
(preliminary and unaudited)
Three Months Ended March
31,
(in millions)
2024
2023
Net Income
$
288
$
289
Provision for income taxes
49
71
Depreciation and amortization
264
253
Interest expense, net
155
135
Loss in unconsolidated affiliates
3
2
Stock-based compensation
56
75
Other expense (income), net (1)
21
(15
)
Restructuring and related expenses (2)
22
30
Acquisition related expenses
4
11
Adjusted EBITDA
$
862
$
851
(1)
Reflects certain non-operating income
items, revaluations of contingent consideration and certain
non-recurring expenses.
(2)
Reflects restructuring costs as well as
accelerated expenses related to lease exits.
Table 5 IQVIA HOLDINGS INC.
AND SUBSIDIARIES NET INCOME TO ADJUSTED NET INCOME
RECONCILIATION (preliminary and unaudited)
Three Months Ended March
31,
(in millions, except per share
data)
2024
2023
Net Income
$
288
$
289
Provision for income taxes
49
71
Purchase accounting amortization (1)
129
123
Loss in unconsolidated affiliates
3
2
Stock-based compensation
56
75
Other expense (income), net (2)
21
(15
)
Restructuring and related expenses (3)
22
30
Acquisition related expenses
4
11
Adjusted Pre Tax Income
$
572
$
586
Adjusted tax expense
(104
)
(124
)
Adjusted Net Income
$
468
$
462
Adjusted earnings per share
attributable to common stockholders:
Basic
$
2.57
$
2.49
Diluted
$
2.54
$
2.45
Weighted average common shares
outstanding:
Basic
181.9
185.8
Diluted
184.3
188.6
(1)
Reflects all the amortization of acquired
intangible assets.
(2)
Reflects certain non-operating income
items, revaluations of contingent consideration and certain
non-recurring expenses.
(3)
Reflects restructuring costs as well as
accelerated expenses related to lease exits.
Table 6 IQVIA HOLDINGS INC.
AND SUBSIDIARIES NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE
CASH FLOW RECONCILIATION (preliminary and unaudited)
(in millions)
Three Months Ended
March 31, 2024
Net Cash provided by Operating
Activities
$
522
Acquisition of property, equipment and
software
(145
)
Free Cash Flow
$
377
Table 7 IQVIA HOLDINGS INC.
AND SUBSIDIARIES CALCULATION OF GROSS AND NET LEVERAGE RATIOS AS OF
MARCH 31, 2024 (preliminary and unaudited)
(in millions)
Gross Debt, net of Unamortized Discount
and Debt Issuance Costs, as of March 31, 2024
$
13,536
Net Debt as of March 31, 2024
$
12,092
Adjusted EBITDA for the twelve months
ended March 31, 2024
$
3,580
Gross Leverage Ratio (Gross Debt/LTM
Adjusted EBITDA)
3.78x
Net Leverage Ratio (Net Debt/LTM Adjusted
EBITDA)
3.38x
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version on businesswire.com: https://www.businesswire.com/news/home/20240502235006/en/
Kerri Joseph IQVIA Investor Relations kerri.joseph@iqvia.com
+1.610.244.3020
IQVIA (NYSE:IQV)
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