Medpace Holdings, Inc. (Nasdaq: MEDP) has announced its financial results for the third quarter ending September 30, 2024.
Third Quarter 2024 Financial Highlights
- Revenue: Medpace achieved $533.3 million in revenue for Q3 2024, an increase of 8.3% from $492.5 million in the same period last year. On a constant currency basis, revenue grew by 8.1%.
- Backlog: The company’s backlog rose to $2,927.4 million, reflecting an 8.8% increase from $2,689.5 million as of September 30, 2023. Net new business awards totaled $533.7 million, resulting in a net book-to-bill ratio of 1.00x, compared to $611.5 million in the prior year.
- Costs: Total direct costs for the third quarter were $364.3 million, up from $359.3 million in Q3 2023. Selling, general, and administrative (SG&A) expenses increased to $49.2 million from $41.4 million.
- Net Income: GAAP net income for Q3 2024 was $96.4 million, or $3.01 per diluted share, compared to $70.6 million, or $2.22 per diluted share, in the prior year. This resulted in net income margins of 18.1% and 14.3% for Q3 2024 and 2023, respectively.
- EBITDA: EBITDA rose 31.7% to $118.8 million, representing 22.3% of revenue, compared to $90.2 million, or 18.3% of revenue, in Q3 2023. On a constant currency basis, EBITDA increased by 32.3%.
Year-to-Date 2024 Financial Overview
- Revenue: For the nine months ending September 30, 2024, revenue was $1,572.5 million, reflecting a 13.3% increase year-over-year.
- Net Income: Year-to-date GAAP net income was $287.4 million, or $8.96 per diluted share, up from $204.5 million, or $6.42 per diluted share, in the prior year.
- EBITDA: Year-to-date EBITDA was $346.7 million, representing 22.0% of revenue, with a 30.0% increase compared to the same period last year.
Balance Sheet and Liquidity
As of September 30, 2024, Medpace had cash and cash equivalents totaling $656.9 million and generated $149.1 million in cash flow from operating activities during Q3. The company did not engage in any share repurchases in this quarter and has $308.8 million remaining in its share repurchase program.
2024 Financial Guidance
Medpace forecasts revenue for 2024 in the range of $2.090 billion to $2.130 billion, which represents growth of 10.8% to 12.9% over 2023’s revenue of $1.886 billion. GAAP net income is projected to be between $376.0 million and $388.0 million, while full-year EBITDA is expected to fall between $450.0 million and $470.0 million. Based on this revenue and net income guidance, diluted earnings per share (GAAP) is anticipated to be in the range of $11.71 to $12.09, assuming a tax rate of 15.5% to 16.5%, interest income of $24.4 million, and 32.1 million diluted shares outstanding. This guidance does not factor in the impact of any potential share repurchases after September 30, 2024.
