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, 2023.
First-Quarter 2023 Operating Results
Revenue for the first quarter of $3,652 million increased 2.4 percent on a reported basis and 4.7 percent at constant currency, compared to the first quarter of 2022. Technology & Analytics Solutions (TAS) revenue of $1,444 million grew 0.3 percent on a reported basis and 2.9 percent at constant currency. Research & Development Solutions (R&DS) revenue of $2,026 million grew 4.8 percent on a reported basis and 6.5 percent at constant currency. Excluding the impact of pass throughs, R&DS revenue grew 3.1 percent on a reported basis. Contract Sales & Medical Solutions (CSMS) revenue of $182 million decreased 6.7 percent on a reported basis and 1.0 percent at constant currency.
As of March 31, 2023, R&DS contracted backlog, including reimbursed expenses, was $27.9 billion, growing 10.1 percent year-over-year and 11.3 percent at constant currency. The company expects approximately $7.3 billion of this backlog to convert to revenue in the next twelve months. The first-quarter book-to-bill ratio was 1.28x. For the twelve months ended March 31, 2023, the book-to-bill ratio was 1.35x.
“IQVIA delivered another quarter of strong operational and financial results, including strong underlying revenue growth, margins and cashflow,” said Ari Bousbib, chairman and CEO of IQVIA. “Industry demand remains healthy, as reflected in our $2.6 billion of bookings in the quarter and record RFP flow. While there continues to be some customer cautiousness in discretionary spending, the scale of our business, the breath of our differentiated offerings, and the resilience of our long cycle business support our strong underlying organic growth momentum.”
First-quarter GAAP Net Income was $289 million, and GAAP Diluted Earnings per Share was $1.53. Adjusted Net Income was $462 million, and Adjusted Diluted Earnings per Share was $2.45. Adjusted EBITDA was $851 million.
Financial Position
As of March 31, 2023, cash and cash equivalents were $1,494 million and debt was $13,176 million, resulting in net debt of $11,682 million. IQVIA’s Net Leverage Ratio was 3.45x trailing twelve-month Adjusted EBITDA. For the first quarter, Operating Cash Flow was $417 million and Free Cash Flow was $253 million.
Share Repurchase
During the first quarter of 2023, the company repurchased $129 million of its common stock. IQVIA had $1,226 million of share repurchase authorization remaining as of March 31, 2023.
Full-Year 2023 Guidance
The company’s guidance for full-year 2023 is unchanged. The company reaffirms its revenue range of $15,150 million to $15,400 million, representing growth of 5.1 to 6.9 percent on a reported basis and 4.7 to 6.5 percent at constant currency. This revenue guidance continues to assume about 100 basis points of contribution from acquisitions and approximately $600 million of COVID-related revenue step down versus 2022. The guidance represents 9 to 11 percent revenue growth at constant currency excluding acquisitions and COVID-related work. The company is also reaffirming its Adjusted EBITDA guidance range of $3,625 million to $3,695 million, representing growth of 8.3 to 10.4 percent, and reaffirming its Adjusted Diluted EPS guidance range of $10.26 to $10.56, up 1.0 to 3.9 percent on a reported basis. This Adjusted Diluted Earnings per Share guidance includes the year-over-year impact of the step-up in interest rates and the increase in the UK corporate tax rate. Together, these non-operational items impact the year-over-year growth rate by approximately 10 percentage points. Excluding these items, Adjusted Diluted Earnings per Share is expected to grow 11 to 14 percent.
All financial guidance assumes foreign currency exchange rates as of April 25, 2023 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 2023 results and its second-quarter and full-year 2023 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.
Source: https://www.businesswire.com/
