- Revenue of $3,868 million for the fourth quarter, $14,984
million for the full year
- GAAP Net Income of $469 million for the fourth quarter,
$1,358 million for the full year
- Adjusted EBITDA of $966 million for the fourth quarter,
$3,569 million for the full year
- GAAP Diluted Earnings per Share of $2.54 for the fourth
quarter, $7.29 for the full year
- Adjusted Diluted Earnings per Share of $2.84 for the fourth
quarter, $10.20 for the full year
- R&D Solutions quarterly bookings of over $2.8 billion,
representing book-to-bill ratio of 1.31x
- R&D Solutions contracted backlog of $29.7 billion grew
9.2 percent year-over-year
- Full-year 2024 revenue guidance of $15,400 million to
$15,650 million, Adjusted EBITDA of $3,700 million to $3,800
million and Adjusted Diluted Earnings per Share of $10.95 to
$11.25
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 December 31, 2023.
Fourth-Quarter 2023 Operating Results Revenue for the
fourth quarter of $3,868 million increased 3.5 percent on a
reported basis and 2.6 percent at constant currency, compared to
the fourth quarter of 2022. Technology & Analytics Solutions
(TAS) revenue of $1,531 million grew 2.1 percent on a reported
basis and 1.3 percent at constant currency. Research &
Development Solutions (R&DS) revenue of $2,151 million grew 4.5
percent on a reported basis and 3.7 percent at constant currency.
Excluding the impact of pass throughs, R&DS revenue grew 6.0
percent year-over-year on a reported basis. Contract Sales &
Medical Solutions (CSMS) revenue of $186 million grew 2.2 percent
on a reported basis and 1.7 percent at constant currency.
As of December 31, 2023, R&DS contracted backlog, including
reimbursed expenses, was $29.7 billion, growing 9.2 percent
year-over-year and 8.8 percent at constant currency. The company
expects approximately $7.5 billion of this backlog to convert to
revenue in the next twelve months. The fourth-quarter book-to-bill
ratio was 1.31x. For the year ended December 31, 2023, the
book-to-bill ratio was 1.28x.
"The IQVIA team delivered solid 2023 results in a challenging
macro environment," said Ari Bousbib, chairman and CEO of IQVIA.
"The TAS segment continued to grow despite persistent client
caution and lower spending levels. In R&DS, clinical demand
remained strong with double-digit RFP growth and a 1.31
book-to-bill ratio for the quarter. As we begin 2024, the
fundamentals of our business and the outlook for our end markets
remain healthy."
Fourth-quarter GAAP Net Income was $469 million, up 106.6
percent year-over-year, and GAAP Diluted Earnings per Share was
$2.54, increasing 111.7 percent year-over-year. Adjusted Net Income
was $523 million, down 0.2 percent year-over-year, and Adjusted
Diluted Earnings per Share was $2.84, up 2.2 percent
year-over-year. Adjusted EBITDA was $966 million, increasing 5.0
percent year-over-year.
Full-Year 2023 Operating Results Revenue of $14,984
million for the full year of 2023 grew 4.0 percent on a reported
basis and 4.1 percent at constant currency, compared to 2022. TAS
revenue was $5,862 million, up 2.0 percent on a reported basis and
2.1 percent at constant currency. R&DS revenue was $8,395
million, up 6.0 percent on a reported basis and 6.0 percent at
constant currency. CSMS revenue was $727 million, down 2.2 percent
on a reported basis and 0.3 percent at constant currency.
For the full year of 2023, GAAP Net Income was $1,358 million,
up 24.5 percent year-over-year, and GAAP Diluted Earnings per Share
was $7.29, up 27.4 percent year-over-year. Adjusted Net Income was
$1,901 million, decreasing 1.9 percent year-over-year, and Adjusted
Diluted Earnings per Share was $10.20, up 0.4 percent
year-over-year. Adjusted EBITDA for the full year of 2023 was
$3,569 million, up 6.7 percent year-over-year.
Financial Position As of December 31, 2023, cash and cash
equivalents were $1,376 million and debt was $13,673 million,
resulting in net debt of $12,297 million. IQVIA’s Net Leverage
Ratio was 3.45x trailing twelve-month Adjusted EBITDA. For the
fourth quarter of 2023, Operating Cash Flow was $747 million and
Free Cash Flow was $568 million. For the full year of 2023,
Operating Cash Flow was $2,149 million and Free Cash Flow was
$1,500 million.
During the fourth quarter, the company refinanced approximately
$2.75 billion of near-term maturities, effectively extending
maturities to 2029 and 2031 at an average fixed rate below 4.9
percent after swaps. As a result of this transaction, over 80
percent of the company's debt is now at fixed interest rates.
Share Repurchase During the fourth quarter of 2023, the
company repurchased $229 million of its common stock, resulting in
full-year share repurchases of $992 million. IQVIA had $2,363
million of share repurchase authorization remaining as of December
31, 2023.
Full-Year 2024 Guidance For the full year of 2024, the
company expects revenue to be between $15,400 million and $15,650
million. This revenue guidance assumes approximately $300 million
of COVID-related revenue step down, about 50 basis points of
headwind from foreign exchange, and about 100 basis points of
contribution from acquisitions.
The company expects Adjusted EBITDA to be between $3,700 million
and $3,800 million and Adjusted Diluted Earnings per Share is
expected to be between $10.95 and $11.25.
All financial guidance assumes foreign currency exchange rates
as of February 12, 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
fourth-quarter and full-year 2023 results and 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, 2022, 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
CONSOLIDATED STATEMENTS OF
INCOME
(preliminary and unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
(in millions, except per share
data)
2023
2022
2023
2022
Revenues
$
3,868
$
3,739
$
14,984
$
14,410
Cost of revenues, exclusive of
depreciation and amortization
2,478
2,407
9,745
9,382
Selling, general and administrative
expenses
556
583
2,053
2,071
Depreciation and amortization
316
357
1,125
1,130
Restructuring costs
17
13
84
28
Income from operations
501
379
1,977
1,799
Interest income
(12
)
(6
)
(36
)
(13
)
Interest expense
181
128
672
416
Loss on extinguishment of debt
6
—
6
—
Other (income) expense, net
(47
)
(18
)
(124
)
33
Income before income taxes and equity in
(losses) earnings of unconsolidated affiliates
373
275
1,459
1,363
Income tax (benefit) expense
(102
)
48
101
260
Income before equity in (losses) earnings
of unconsolidated affiliates
475
227
1,358
1,103
Equity in (losses) earnings of
unconsolidated affiliates
(6
)
—
—
(12
)
Net income
$
469
$
227
$
1,358
$
1,091
Earnings per share attributable to common
stockholders:
Basic
$
2.58
$
1.22
$
7.39
$
5.82
Diluted
$
2.54
$
1.20
$
7.29
$
5.72
Weighted average common shares
outstanding:
Basic
181.9
185.7
183.8
187.6
Diluted
184.3
188.6
186.3
190.6
Table 2
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(preliminary and unaudited)
December 31,
(in millions, except per share
data)
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
1,376
$
1,216
Trade accounts receivable and unbilled
services, net
3,381
2,917
Prepaid expenses
141
151
Income taxes receivable
32
43
Investments in debt, equity and other
securities
120
93
Other current assets and receivables
546
561
Total current assets
5,596
4,981
Property and equipment, net
523
532
Operating lease right-of-use assets
296
331
Investments in debt, equity and other
securities
105
68
Investments in unconsolidated
affiliates
134
94
Goodwill
14,567
13,921
Other identifiable intangibles, net
4,839
4,820
Deferred income taxes
166
118
Deposits and other assets, net
455
472
Total assets
$
26,681
$
25,337
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
3,564
$
3,316
Unearned income
1,799
1,797
Income taxes payable
116
161
Current portion of long-term debt
718
152
Other current liabilities
294
152
Total current liabilities
6,491
5,578
Long-term debt, less current portion
12,955
12,595
Deferred income taxes
202
464
Operating lease liabilities
223
264
Other liabilities
698
671
Total liabilities
20,569
19,572
Stockholders’ equity:
Common stock and additional paid-in
capital, 400.0 shares authorized as of December 31, 2023 and 2022,
$0.01 par value, 257.2 shares issued and 181.5 shares outstanding
as of December 31, 2023; 256.4 shares issued and 185.7 shares
outstanding as of December 31, 2022
11,028
10,898
Retained earnings
4,692
3,334
Treasury stock, at cost, 75.7 and 70.7
shares as of December 31, 2023 and 2022, respectively
(8,741
)
(7,740
)
Accumulated other comprehensive loss
(867
)
(727
)
Total stockholders’ equity
6,112
5,765
Total liabilities and stockholders’
equity
$
26,681
$
25,337
Table 3
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(preliminary and unaudited)
Year Ended December
31,
(in millions)
2023
2022
Operating activities:
Net income
$
1,358
$
1,091
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
1,125
1,130
Amortization of debt issuance costs and
discount
18
15
Stock-based compensation
217
194
Gain on disposals of property and
equipment, net
—
(10
)
Losses of unconsolidated affiliates
—
12
(Gain) loss on investments, net
(20
)
27
Benefit from deferred income taxes
(269
)
(115
)
Changes in operating assets and
liabilities:
Accounts receivable and unbilled
services
(388
)
(421
)
Prepaid expenses and other assets
34
7
Accounts payable and accrued expenses
267
427
Unearned income
(29
)
31
Income taxes payable and other
liabilities
(164
)
(128
)
Net cash provided by operating
activities
2,149
2,260
Investing activities:
Acquisition of property, equipment and
software
(649
)
(674
)
Acquisition of businesses, net of cash
acquired
(876
)
(1,315
)
Purchases of marketable securities,
net
(6
)
(5
)
Investments in unconsolidated affiliates,
net of payments received
(39
)
(20
)
(Investments in) debt and equity
securities
(38
)
—
Other
5
8
Net cash used in investing activities
(1,603
)
(2,006
)
Financing activities:
Proceeds from issuance of debt
4,000
1,250
Payment of debt issuance costs
(50
)
(5
)
Repayment of debt and principal payments
on finance leases
(2,873
)
(634
)
Proceeds from revolving credit
facility
2,384
2,350
Repayment of revolving credit facility
(2,709
)
(2,025
)
Payments related to employee stock option
plans
(61
)
(71
)
Repurchase of common stock
(992
)
(1,168
)
Contingent consideration and deferred
purchase price payments
(81
)
(26
)
Net cash used in financing activities
(382
)
(329
)
Effect of foreign currency exchange rate
changes on cash
(4
)
(75
)
Increase (decrease) in cash and cash
equivalents
160
(150
)
Cash and cash equivalents at beginning of
period
1,216
1,366
Cash and cash equivalents at end of
period
$
1,376
$
1,216
Table 4
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET INCOME TO ADJUSTED EBITDA
RECONCILIATION
(preliminary and unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions)
2023
2022
2023
2022
Net Income
$
469
$
227
$
1,358
$
1,091
(Benefit from) provision for income taxes
(1)
(102
)
48
101
260
Depreciation and amortization
316
357
1,125
1,130
Interest expense, net
169
122
636
403
Losses of unconsolidated affiliates
6
—
—
12
Deferred revenue purchase accounting
adjustments
—
—
—
1
Stock-based compensation
45
58
217
194
Other (income) expense, net (2)
(40
)
53
(132
)
104
Loss on extinguishment of debt
6
—
6
—
Restructuring and related expenses (3)
24
26
126
73
Acquisition related expenses
73
29
132
78
Adjusted EBITDA
$
966
$
920
$
3,569
$
3,346
(1)
Three and Twelve months ended
December 31, 2023 include a $125 million tax benefit due to an
internal legal entity restructuring.
(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 5
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET INCOME TO ADJUSTED NET
INCOME RECONCILIATION
(preliminary and unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
(in millions, except per share
data)
2023
2022
2023
2022
Net Income
$
469
$
227
$
1,358
$
1,091
(Benefit from) provision for income taxes
(1)
(102
)
48
101
260
Purchase accounting amortization (2)
149
149
560
563
Losses of unconsolidated affiliates
6
—
—
12
Deferred revenue purchase accounting
adjustments
—
—
—
1
Stock-based compensation
45
58
217
194
Other (income) expense, net (3)
(40
)
53
(132
)
104
Loss on extinguishment of debt
6
—
6
—
Restructuring and related expenses (4)
34
88
136
135
Acquisition related expenses
73
29
132
78
Adjusted Pre Tax Income
$
640
$
652
$
2,378
$
2,438
Adjusted tax expense
(117
)
(128
)
(477
)
(501
)
Adjusted Net Income
$
523
$
524
$
1,901
$
1,937
Adjusted earnings per share
attributable to common stockholders:
Basic
$
2.88
$
2.82
$
10.34
$
10.33
Diluted
$
2.84
$
2.78
$
10.20
$
10.16
Weighted average common shares
outstanding:
Basic
181.9
185.7
183.8
187.6
Diluted
184.3
188.6
186.3
190.6
(1)
Three and Twelve months ended December 31,
2023 include a $125 million tax benefit due to an internal legal
entity restructuring; the benefit is excluded from Adjusted tax
expense.
(2)
Reflects all the amortization of
acquired intangible assets.
(3)
Reflects certain non-operating
income items, revaluations of contingent consideration and certain
non-recurring expenses.
(4)
Reflects restructuring costs as
well as accelerated expenses related to lease exits and asset
abandonments.
Table 6
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW RECONCILIATION
(preliminary and unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
(in millions)
2023
2023
Net Cash provided by Operating
Activities
$
747
$
2,149
Acquisition of property, equipment and
software
(179
)
(649
)
Free Cash Flow
$
568
$
1,500
Table 7
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CALCULATION OF GROSS AND NET
LEVERAGE RATIOS
AS OF DECEMBER 31,
2023
(preliminary and unaudited)
(in millions)
Gross Debt, net of Unamortized Discount
and Debt Issuance Costs, as of December 31, 2023
$
13,673
Net Debt as of December 31, 2023
$
12,297
Adjusted EBITDA for the twelve months
ended December 31, 2023
$
3,569
Gross Leverage Ratio (Gross Debt/LTM
Adjusted EBITDA)
3.83x
Net Leverage Ratio (Net Debt/LTM Adjusted
EBITDA)
3.45x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240214916660/en/
Nick Childs, IQVIA Investor Relations
(nicholas.childs@iqvia.com) +1.973.316.3828
Grafico Azioni IQVIA (NYSE:IQV)
Storico
Da Ott 2024 a Nov 2024
Grafico Azioni IQVIA (NYSE:IQV)
Storico
Da Nov 2023 a Nov 2024
