- Revenue of $3,814 million
- GAAP Net Income of $363 million, Adjusted EBITDA of $887
million
- GAAP Diluted Earnings per Share of $1.97, Adjusted Diluted
Earnings per Share of $2.64
- R&D Solutions quarterly bookings of $2.7 billion,
representing a book-to-bill ratio of 1.27x
- R&D Solutions contracted backlog of $30.6 billion, up
7.7 percent reported and 8.1 percent at constant currency
year-over-year
- Full-year 2024 guidance updated for revenue to be between
$15,425 million and $15,525 million, Adjusted EBITDA between $3,705
million and $3,765 million, and Adjusted Diluted Earnings per Share
between $11.10 and $11.30
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 June 30, 2024.
Second-Quarter 2024 Operating Results
Revenue for the second quarter of $3,814 million increased 2.3
percent on a reported basis and 3.5 percent at constant currency,
compared to the second quarter of 2023. Technology & Analytics
Solutions (TAS) revenue of $1,495 million increased 2.7 percent on
a reported basis and 3.8 percent at constant currency. Research
& Development Solutions (R&DS) revenue of $2,147 million
increased 2.4 percent on a reported basis and 3.3 percent at
constant currency. Excluding the impact of pass throughs, R&DS
revenue grew 3.5 percent on a reported basis. Contract Sales &
Medical Solutions (CSMS) revenue of $172 million decreased 2.3
percent on a reported basis and increased 2.8 percent at constant
currency.
As of June 30, 2024, R&DS contracted backlog, including
reimbursed expenses, was $30.6 billion, growing 7.7 percent
year-over-year and 8.1 percent at constant currency. The company
expects approximately $7.8 billion of this backlog to convert to
revenue in the next twelve months. The second-quarter book-to-bill
ratio was 1.27x. For the twelve months ended June 30, 2024, the
book-to-bill ratio was 1.26x.
“IQVIA delivered second quarter results at the high-end of our
guidance, driven mainly by better-than-expected TAS performance,"
stated Ari Bousbib, chairman and CEO of IQVIA. "The team is focused
on strong operational execution. In the quarter, profit margin
expanded, free cash flow was strong, and Adjusted Diluted EPS grew
8.6 percent. The R&DS segment continued to perform well and
again delivered strong bookings, reflecting demand for IQVIA’s
highly differentiated solutions. Forward-looking indicators, such
as RFP flow and qualified pipeline, remain healthy. TAS performance
in the quarter provides a smoother path to our full-year total
company and segment targets."
Second-quarter GAAP Net Income was $363 million and GAAP Diluted
Earnings per Share was $1.97. Adjusted Net Income was $487 million
and Adjusted Diluted Earnings per Share was $2.64. Adjusted EBITDA
was $887 million, up 2.7 percent year-over-year.
First-Half 2024 Operating Results
Revenue for the first six months of 2024 was $7,551 million, up
2.3 percent on a reported basis and 3.2 percent at constant
currency, compared to the first six months of 2023. TAS revenue was
$2,948 million, representing growth of 1.7 percent on a reported
basis and 2.4 percent at constant currency. R&DS revenue was
$4,242 million, up 2.9 percent on a reported basis and 3.6 percent
at constant currency. CSMS revenue was $361 million, up 0.8 percent
on a reported basis and 5.0 percent at constant currency.
GAAP Net Income was $651 million and GAAP Diluted Earnings per
Share was $3.53. Adjusted Net Income was $955 million and Adjusted
Diluted Earnings per Share was $5.18. Adjusted EBITDA was $1,749
million.
Financial Position
As of June 30, 2024, cash and cash equivalents were $1,545
million and debt was $13,258 million, resulting in net debt of
$11,713 million. IQVIA’s Net Leverage Ratio was 3.25x trailing
twelve-month Adjusted EBITDA. For the second quarter, Operating
Cash Flow was $588 million and Free Cash Flow was $445 million.
Full-Year 2024 Guidance
The company updated its full-year 2024 guidance for revenue to
be between $15,425 million and $15,525 million, Adjusted EBITDA
between $3,705 million and $3,765 million, and Adjusted Diluted
Earnings per Share between $11.10 and $11.30.
All financial guidance assumes foreign currency exchange rates
as of July 18, 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 second-quarter 2024 results and its
third-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 88,000
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 June
30,
Six Months Ended June
30,
(in millions, except per share
data)
2024
2023
2024
2023
Revenues
$
3,814
$
3,728
$
7,551
$
7,380
Cost of revenues, exclusive of
depreciation and amortization
2,488
2,443
4,932
4,841
Selling, general and administrative
expenses
509
482
1,017
995
Depreciation and amortization
269
259
533
512
Restructuring costs
28
20
43
37
Income from operations
520
524
1,026
995
Interest income
(12
)
(4
)
(23
)
(10
)
Interest expense
163
169
329
310
Other income, net
(67
)
(16
)
(56
)
(42
)
Income before income taxes and equity in
earnings (losses) of unconsolidated affiliates
436
375
776
737
Income tax expense
75
81
124
152
Income before equity in earnings (losses)
of unconsolidated affiliates
361
294
652
585
Equity in earnings (losses) of
unconsolidated affiliates
2
3
(1
)
1
Net income
$
363
$
297
$
651
$
586
Earnings per share attributable to common
stockholders:
Basic
$
1.99
$
1.61
$
3.58
$
3.17
Diluted
$
1.97
$
1.59
$
3.53
$
3.12
Weighted average common shares
outstanding:
Basic
182.2
184.4
182.0
185.1
Diluted
184.3
186.7
184.3
187.6
Table 2
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(preliminary and unaudited)
(in millions, except per share
data)
June 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,545
$
1,376
Trade accounts receivable and unbilled
services, net
3,255
3,381
Prepaid expenses
191
141
Income taxes receivable
41
32
Investments in debt, equity and other
securities
133
120
Other current assets and receivables
457
546
Total current assets
5,622
5,596
Property and equipment, net
503
523
Operating lease right-of-use assets
265
296
Investments in debt, equity and other
securities
106
105
Investments in unconsolidated
affiliates
181
134
Goodwill
14,477
14,567
Other identifiable intangibles, net
4,608
4,839
Deferred income taxes
158
166
Deposits and other assets, net
478
455
Total assets
$
26,398
$
26,681
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
3,313
$
3,564
Unearned income
1,811
1,799
Income taxes payable
185
116
Current portion of long-term debt
1,167
718
Other current liabilities
144
294
Total current liabilities
6,620
6,491
Long-term debt, less current portion
12,091
12,955
Deferred income taxes
149
202
Operating lease liabilities
192
223
Other liabilities
632
698
Total liabilities
19,684
20,569
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in
capital, 400.0 shares authorized as of June 30, 2024 and December
31, 2023, $0.01 par value, 258.0 shares issued and 182.3 shares
outstanding as of June 30, 2024; 257.2 shares issued and 181.5
shares outstanding as of December 31, 2023
11,061
11,028
Retained earnings
5,343
4,692
Treasury stock, at cost, 75.7 and 75.7
shares as of June 30, 2024 and December 31, 2023, respectively
(8,741
)
(8,741
)
Accumulated other comprehensive loss
(949
)
(867
)
Total stockholders’ equity
6,714
6,112
Total liabilities and stockholders’
equity
$
26,398
$
26,681
Table 3
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(preliminary and unaudited)
Six Months Ended June
30,
(in millions)
2024
2023
Operating activities:
Net income
$
651
$
586
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
533
512
Amortization of debt issuance costs and
discount
11
8
Stock-based compensation
104
125
Losses (earnings) from unconsolidated
affiliates
1
(1
)
Gain on investments, net
(12
)
(10
)
Benefit from deferred income taxes
(80
)
(70
)
Changes in operating assets and
liabilities:
Change in accounts receivable, unbilled
services and unearned income
187
(134
)
Change in other operating assets and
liabilities
(285
)
(197
)
Net cash provided by operating
activities
1,110
819
Investing activities:
Acquisition of property, equipment and
software
(288
)
(324
)
Acquisition of businesses, net of cash
acquired
(221
)
(444
)
Purchases of marketable securities,
net
—
(4
)
Investments in unconsolidated affiliates,
net of payments received
(49
)
(13
)
Investments in debt and equity
securities
(2
)
(36
)
Proceeds from sale of property, equipment
and software
25
—
Other
—
3
Net cash used in investing activities
(535
)
(818
)
Financing activities:
Proceeds from issuance of debt
—
1,250
Payment of debt issuance costs
—
(18
)
Repayment of debt and principal payments
on finance leases
(86
)
(77
)
Proceeds from revolving credit
facility
375
1,559
Repayment of revolving credit facility
(585
)
(1,784
)
Payments related to employee stock
incentive plans
(60
)
(58
)
Repurchase of common stock
—
(619
)
Contingent consideration and deferred
purchase price payments
(10
)
(71
)
Net cash (used in) provided by financing
activities
(366
)
182
Effect of foreign currency exchange rate
changes on cash
(40
)
(17
)
Increase in cash and cash equivalents
169
166
Cash and cash equivalents at beginning of
period
1,376
1,216
Cash and cash equivalents at end of
period
$
1,545
$
1,382
Table 4
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET INCOME TO ADJUSTED EBITDA
RECONCILIATION
(preliminary and unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2024
2023
2024
2023
Net Income
$
363
$
297
$
651
$
586
Provision for income taxes
75
81
124
152
Depreciation and amortization
269
259
533
512
Interest expense, net
151
165
306
300
(Income) loss in unconsolidated
affiliates
(2
)
(3
)
1
(1
)
Stock-based compensation
48
50
104
125
Other income, net (1)
(66
)
(37
)
(45
)
(52
)
Restructuring and related expenses (2)
39
30
61
60
Acquisition related expenses
10
22
14
33
Adjusted EBITDA
$
887
$
864
$
1,749
$
1,715
(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 June
30,
Six Months Ended June
30,
(in millions, except per share
data)
2024
2023
2024
2023
Net Income
$
363
$
297
$
651
$
586
Provision for income taxes
75
81
124
152
Purchase accounting amortization (1)
133
132
262
255
(Income) loss in unconsolidated
affiliates
(2
)
(3
)
1
(1
)
Stock-based compensation
48
50
104
125
Other income, net (2)
(66
)
(37
)
(45
)
(52
)
Restructuring and related expenses (3)
39
30
61
60
Acquisition related expenses
10
22
14
33
Adjusted Pre Tax Income
$
600
$
572
$
1,172
$
1,158
Adjusted tax expense
(113
)
(118
)
(217
)
(242
)
Adjusted Net Income
$
487
$
454
$
955
$
916
Adjusted earnings per share
attributable to common stockholders:
Basic
$
2.67
$
2.46
$
5.25
$
4.95
Diluted
$
2.64
$
2.43
$
5.18
$
4.88
Weighted average common shares
outstanding:
Basic
182.2
184.4
182.0
185.1
Diluted
184.3
186.7
184.3
187.6
(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 June 30,
2024
Six Months Ended June 30,
2024
Net Cash provided by Operating
Activities
$
588
$
1,110
Acquisition of property, equipment and
software
(143
)
(288
)
Free Cash Flow
$
445
$
822
Table 7
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CALCULATION OF GROSS AND NET
LEVERAGE RATIOS
AS OF JUNE 30, 2024
(preliminary and unaudited)
(in millions)
Gross Debt, net of Unamortized Discount
and Debt Issuance Costs, as of June 30, 2024
$
13,258
Net Debt as of June 30, 2024
$
11,713
Adjusted EBITDA for the twelve months
ended June 30, 2024
$
3,603
Gross Leverage Ratio (Gross Debt/LTM
Adjusted EBITDA)
3.68
x
Net Leverage Ratio (Net Debt/LTM Adjusted
EBITDA)
3.25
x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240722784620/en/
Kerri Joseph, IQVIA Investor Relations (kerri.joseph@iqvia.com)
+1.610.244.3020
Grafico Azioni IQVIA (NYSE:IQV)
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Da Ott 2024 a Nov 2024
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