IQVIA Reports Third-Quarter 2024 Results and Announces Investor Day
-
Revenue of
$3,896 million -
GAAP Net Income of
$285 million , Adjusted EBITDA of$939 million -
GAAP Diluted Earnings per Share of
$1.55 , Adjusted Diluted Earnings per Share of$2.84 -
R&D Solutions quarterly bookings of
$2.3 billion , resulting in trailing-twelve-month bookings of$10.4 billion and a trailing-twelve-month book-to-bill ratio of 1.22x -
R&D Solutions contracted backlog of
$31.1 billion , up 8.0 percent reported year-over-year -
TAS Revenue of
$1,554 million , up 8.6 percent year-over-year -
Operating Cash Flow of
$721 million , bringing year-to-date Operating Cash Flow to$1,831 million , up 31 percent year-over-year -
Free Cash Flow of
$571 million , bringing year-to-date Free Cash Flow to$1,393 million , up 49 percent year-over-year -
Full-year 2024 guidance updated for revenue to be between
$15,350 million and$15,400 million , Adjusted EBITDA between$3,675 million and$3,700 million , and Adjusted Diluted Earnings per Share between$11.10 and$11.20 -
Investor Day to be held on
December 10, 2024
Third-Quarter 2024 Operating Results
Revenue for the third quarter of
As of
Third-quarter GAAP Net Income was
Year-to-Date 2024 Operating Results
Revenue for the first nine months of 2024 was
GAAP Net Income was
Financial Position
As of
Share Repurchase
During the third quarter of 2024, the company repurchased
Full-Year 2024 Guidance
The company is updating its full-year 2024guidance to reflect delays in two fast-burning mega trials due to client-related short-term logistical challenges. These trials are now expected to ramp in the second half of 2025. As a result, full-year 2024 revenue is now expected to be between
All financial guidance assumes foreign currency exchange rates as of
“IQVIA reported strong third quarter results,” stated
Investor Day
Webcast & Conference Call Details
About
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
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 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
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
$ |
3,896 |
|
|
$ |
3,736 |
|
|
$ |
11,447 |
|
|
$ |
11,116 |
|
Cost of revenues, exclusive of depreciation and amortization |
|
|
2,518 |
|
|
|
2,426 |
|
|
|
7,450 |
|
|
|
7,267 |
|
Selling, general and administrative expenses |
|
|
522 |
|
|
|
502 |
|
|
|
1,539 |
|
|
|
1,497 |
|
Depreciation and amortization |
|
|
278 |
|
|
|
297 |
|
|
|
811 |
|
|
|
809 |
|
Restructuring costs |
|
|
28 |
|
|
|
30 |
|
|
|
71 |
|
|
|
67 |
|
Income from operations |
|
|
550 |
|
|
|
481 |
|
|
|
1,576 |
|
|
|
1,476 |
|
Interest income |
|
|
(13 |
) |
|
|
(14 |
) |
|
|
(36 |
) |
|
|
(24 |
) |
Interest expense |
|
|
170 |
|
|
|
181 |
|
|
|
499 |
|
|
|
491 |
|
Other expense (income), net |
|
|
44 |
|
|
|
(35 |
) |
|
|
(12 |
) |
|
|
(77 |
) |
Income before income taxes and equity in earnings of unconsolidated affiliates |
|
|
349 |
|
|
|
349 |
|
|
|
1,125 |
|
|
|
1,086 |
|
Income tax expense |
|
|
65 |
|
|
|
51 |
|
|
|
189 |
|
|
|
203 |
|
Income before equity in earnings of unconsolidated affiliates |
|
|
284 |
|
|
|
298 |
|
|
|
936 |
|
|
|
883 |
|
Equity in earnings of unconsolidated affiliates |
|
|
1 |
|
|
|
5 |
|
|
|
— |
|
|
|
6 |
|
Net income |
|
$ |
285 |
|
|
$ |
303 |
|
|
$ |
936 |
|
|
$ |
889 |
|
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.57 |
|
|
$ |
1.66 |
|
|
$ |
5.14 |
|
|
$ |
4.82 |
|
Diluted |
|
$ |
1.55 |
|
|
$ |
1.63 |
|
|
$ |
5.08 |
|
|
$ |
4.76 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
182.1 |
|
|
|
182.9 |
|
|
|
182.1 |
|
|
|
184.4 |
|
Diluted |
|
|
184.2 |
|
|
|
185.5 |
|
|
|
184.3 |
|
|
|
186.9 |
|
Table 2
|
||||||||
(in millions, except per share data) |
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,572 |
|
|
$ |
1,376 |
|
Trade accounts receivable and unbilled services, net |
|
|
3,196 |
|
|
|
3,381 |
|
Prepaid expenses |
|
|
195 |
|
|
|
141 |
|
Income taxes receivable |
|
|
54 |
|
|
|
32 |
|
Investments in debt, equity and other securities |
|
|
140 |
|
|
|
120 |
|
Other current assets and receivables |
|
|
475 |
|
|
|
546 |
|
Total current assets |
|
|
5,632 |
|
|
|
5,596 |
|
Property and equipment, net |
|
|
513 |
|
|
|
523 |
|
Operating lease right-of-use assets |
|
|
259 |
|
|
|
296 |
|
Investments in debt, equity and other securities |
|
|
117 |
|
|
|
105 |
|
Investments in unconsolidated affiliates |
|
|
203 |
|
|
|
134 |
|
|
|
|
15,091 |
|
|
|
14,567 |
|
Other identifiable intangibles, net |
|
|
4,734 |
|
|
|
4,839 |
|
Deferred income taxes |
|
|
164 |
|
|
|
166 |
|
Deposits and other assets, net |
|
|
467 |
|
|
|
455 |
|
Total assets |
|
$ |
27,180 |
|
|
$ |
26,681 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued expenses |
|
$ |
3,434 |
|
|
$ |
3,564 |
|
Unearned income |
|
|
1,824 |
|
|
|
1,799 |
|
Income taxes payable |
|
|
161 |
|
|
|
116 |
|
Current portion of long-term debt |
|
|
1,219 |
|
|
|
718 |
|
Other current liabilities |
|
|
354 |
|
|
|
294 |
|
Total current liabilities |
|
|
6,992 |
|
|
|
6,491 |
|
Long-term debt, less current portion |
|
|
12,293 |
|
|
|
12,955 |
|
Deferred income taxes |
|
|
128 |
|
|
|
202 |
|
Operating lease liabilities |
|
|
188 |
|
|
|
223 |
|
Other liabilities |
|
|
612 |
|
|
|
698 |
|
Total liabilities |
|
|
20,213 |
|
|
|
20,569 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock and additional paid-in capital, 400.0 shares authorized as of |
|
|
11,106 |
|
|
|
11,028 |
|
Retained earnings |
|
|
5,628 |
|
|
|
4,692 |
|
|
|
|
(8,941 |
) |
|
|
(8,741 |
) |
Accumulated other comprehensive loss |
|
|
(826 |
) |
|
|
(867 |
) |
Total stockholders’ equity |
|
|
6,967 |
|
|
|
6,112 |
|
Total liabilities and stockholders’ equity |
|
$ |
27,180 |
|
|
$ |
26,681 |
|
Table 3
|
||||||||
|
|
Nine Months Ended |
||||||
(in millions) |
|
|
2024 |
|
|
|
2023 |
|
Operating activities: |
|
|
|
|
||||
Net income |
|
$ |
936 |
|
|
$ |
889 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
811 |
|
|
|
809 |
|
Amortization of debt issuance costs and discount |
|
|
16 |
|
|
|
13 |
|
Stock-based compensation |
|
|
158 |
|
|
|
172 |
|
Earnings from unconsolidated affiliates |
|
|
— |
|
|
|
(6 |
) |
Gain on investments, net |
|
|
(29 |
) |
|
|
(5 |
) |
Benefit from deferred income taxes |
|
|
(114 |
) |
|
|
(117 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Change in accounts receivable, unbilled services and unearned income |
|
|
259 |
|
|
|
(241 |
) |
Change in other operating assets and liabilities |
|
|
(206 |
) |
|
|
(112 |
) |
Net cash provided by operating activities |
|
|
1,831 |
|
|
|
1,402 |
|
Investing activities: |
|
|
|
|
||||
Acquisition of property, equipment and software |
|
|
(438 |
) |
|
|
(470 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(649 |
) |
|
|
(869 |
) |
Purchases of marketable securities, net |
|
|
— |
|
|
|
(4 |
) |
Investments in unconsolidated affiliates, net of payments received |
|
|
(68 |
) |
|
|
(16 |
) |
Investments in debt and equity securities |
|
|
(2 |
) |
|
|
(36 |
) |
Proceeds from sale of property, equipment and software |
|
|
25 |
|
|
|
— |
|
Other |
|
|
(2 |
) |
|
|
4 |
|
Net cash used in investing activities |
|
|
(1,134 |
) |
|
|
(1,391 |
) |
Financing activities: |
|
|
|
|
||||
Proceeds from issuance of debt |
|
|
— |
|
|
|
1,250 |
|
Payment of debt issuance costs |
|
|
— |
|
|
|
(19 |
) |
Repayment of debt and principal payments on finance leases |
|
|
(130 |
) |
|
|
(118 |
) |
Proceeds from revolving credit facility |
|
|
685 |
|
|
|
2,009 |
|
Repayment of revolving credit facility |
|
|
(785 |
) |
|
|
(2,184 |
) |
Payments related to employee stock incentive plans |
|
|
(61 |
) |
|
|
(58 |
) |
Repurchase of common stock |
|
|
(200 |
) |
|
|
(763 |
) |
Contingent consideration and deferred purchase price payments |
|
|
(12 |
) |
|
|
(79 |
) |
Net cash (used in) provided by financing activities |
|
|
(503 |
) |
|
|
38 |
|
Effect of foreign currency exchange rate changes on cash |
|
|
2 |
|
|
|
(41 |
) |
Increase in cash and cash equivalents |
|
|
196 |
|
|
|
8 |
|
Cash and cash equivalents at beginning of period |
|
|
1,376 |
|
|
|
1,216 |
|
Cash and cash equivalents at end of period |
|
$ |
1,572 |
|
|
$ |
1,224 |
|
Table 4
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net Income |
|
$ |
285 |
|
|
$ |
303 |
|
|
$ |
936 |
|
$ |
889 |
|
|
Provision for income taxes |
|
|
65 |
|
|
|
51 |
|
|
|
189 |
|
|
203 |
|
|
Depreciation and amortization |
|
|
278 |
|
|
|
297 |
|
|
|
811 |
|
|
809 |
|
|
Interest expense, net |
|
|
157 |
|
|
|
167 |
|
|
|
463 |
|
|
467 |
|
|
Income in unconsolidated affiliates |
|
|
(1 |
) |
|
|
(5 |
) |
|
|
— |
|
|
(6 |
) |
|
Stock-based compensation |
|
|
54 |
|
|
|
47 |
|
|
|
158 |
|
|
172 |
|
|
Other expense (income), net (1) |
|
|
56 |
|
|
|
(40 |
) |
|
|
11 |
|
|
(92 |
) |
|
Restructuring and related expenses (2) |
|
|
38 |
|
|
|
42 |
|
|
|
99 |
|
|
102 |
|
|
Acquisition related expenses |
|
|
7 |
|
|
|
26 |
|
|
|
21 |
|
|
59 |
|
|
Adjusted EBITDA |
|
$ |
939 |
|
|
$ |
888 |
|
|
$ |
2,688 |
|
$ |
2,603 |
|
(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
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in millions, except per share data) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net Income |
|
$ |
285 |
|
|
$ |
303 |
|
|
$ |
936 |
|
|
$ |
889 |
|
Provision for income taxes |
|
|
65 |
|
|
|
51 |
|
|
|
189 |
|
|
|
203 |
|
Purchase accounting amortization (1) |
|
|
139 |
|
|
|
156 |
|
|
|
401 |
|
|
|
411 |
|
Income in unconsolidated affiliates |
|
|
(1 |
) |
|
|
(5 |
) |
|
|
— |
|
|
|
(6 |
) |
Stock-based compensation |
|
|
54 |
|
|
|
47 |
|
|
|
158 |
|
|
|
172 |
|
Other expense (income), net (2) |
|
|
56 |
|
|
|
(40 |
) |
|
|
11 |
|
|
|
(92 |
) |
Restructuring and related expenses (3) |
|
|
38 |
|
|
|
42 |
|
|
|
99 |
|
|
|
102 |
|
Acquisition related expenses |
|
|
7 |
|
|
|
26 |
|
|
|
21 |
|
|
|
59 |
|
Adjusted Pre Tax Income |
|
$ |
643 |
|
|
$ |
580 |
|
|
$ |
1,815 |
|
|
$ |
1,738 |
|
Adjusted tax expense |
|
|
(120 |
) |
|
|
(118 |
) |
|
|
(337 |
) |
|
|
(360 |
) |
Adjusted Net Income |
|
$ |
523 |
|
|
$ |
462 |
|
|
$ |
1,478 |
|
|
$ |
1,378 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
2.87 |
|
|
$ |
2.53 |
|
|
$ |
8.12 |
|
|
$ |
7.47 |
|
Diluted |
|
$ |
2.84 |
|
|
$ |
2.49 |
|
|
$ |
8.02 |
|
|
$ |
7.37 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
182.1 |
|
|
|
182.9 |
|
|
|
182.1 |
|
|
|
184.4 |
|
Diluted |
|
|
184.2 |
|
|
|
185.5 |
|
|
|
184.3 |
|
|
|
186.9 |
|
(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
|
||||||||
(in millions) |
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
|
$ |
721 |
|
|
$ |
1,831 |
|
Acquisition of property, equipment and software |
|
|
(150 |
) |
|
|
(438 |
) |
Free Cash Flow |
|
$ |
571 |
|
|
$ |
1,393 |
|
Table 7
|
||||
(in millions) |
|
|
||
Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of |
|
$ |
13,512 |
|
Net Debt as of |
|
$ |
11,940 |
|
Adjusted EBITDA for the twelve months ended |
|
$ |
3,654 |
|
Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) |
|
3.70x |
||
Net Leverage Ratio (Net Debt/LTM Adjusted EBITDA) |
|
3.27x |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031008271/en/
IQVIA Investor Relations
kerri.joseph@iqvia.com
+1.610.244.3020
Source: