ICLR - Earnings call transcript Q2 2021 | ICON Public Limited Company

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Operator

Good day and thank you for standing by. Welcome to ICON PLC Quarter Two Results Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I'd now like to hand the conference over to your speaker today, Jonathan Curtain. Please go ahead.

Jonathan Curtain

much. very you Thank and ladies gentlemen. day, Good joining Thank the this covering on ended you June for quarter XX, call us XXXX. Also on our CEO, the call today, we have Dr. our and Mr. Cutler; Steve CFO, Brendan Brennan. that this I our on accompany is note like to slides that call. would webcast to to website and there today's download are available call be today's statements. statements in forward-looking Certain call will statements differ including and future industry forward-looking conditions, These statements current to management's implied economic on due those expectations and or results that guarantees uncertainties current the may materially statements and are based information from stated of currently listeners are not associated available, business, company's risks actual forward-looking are by performance. with cautioned and

the of information about Forward-looking events SEC forward-looking publicly selected to reports made. filed they More any are presentation not new measures. or non-GAAP the statements either otherwise. and This to in risks statements these as be We a includes as information, forward-looking update are may company. statements of future financial result date relating uncertainties undertake only the do any by obligation found

directly presentation condensed GAAP operations the GAAP of consolidated most and to comparable release a For refer statements financial measures, the unaudited. U.S. the press of please statement

each to or with call would Brendan to one hour opportunity now this call GAAP today one While the non-GAAP hand we therefore keep measures information an to CFO, to over to ask purposes. participants be limiting one substitute to comparison Mr. We'll are not questions we question. like related to Brennan. ask investors for our to the follow-up useful financial comparable I their believe more a superior measures, is non-GAAP certain for historical

Brendan Brennan

times. million million the X.XX record of $X.X net ICON Consequently, and quarter business X.XX book-to-bill achieved In of in trailing wins times billion, the $XXX of Jonathan. a and $X,XXX of growth in book-to-bill resulting net were awards net you, a a cancellations. quarter two recorded worth XX-month Thank

grew million. was backlog on XX.X% billion. CDO awards, year-on-year of year-on-year XX.X%. two of a With a represents a represents the of new to increase currency $XXX.X This $XX.X This a XX.X% constant basis. quarter addition and basis our these or increase record in Revenue

Our XX.X% for in the XXXX. XX.X% two quarter compared represented quarter with top of revenue customer

top XX.X%. represented five Our customers

line quarter year. two Our revenue last in with

was two quarter for a the was million, year. $XXX.X XX% quarter. rate margin This XX% and represented would Of represented comparable quarter Our Gross compares XX.X% operating last in quarter, This the adjusted quarter year. top in note Group SG&A adjusted expense in of in XX% basis, of quarter last income XX while last quarter to period in share XX.X%. the to share last XX.X% which one margin of the quarter quarter to per customer last XX.X% $X.X the XX.X% last the a net per was in equating quarter last year. to for largest $X.XX adjusted have effective margin XX.X% and quarter quarter and our compared Adjusted the was XX.X% compared diluted last combined XX% year. XX% for -- The the of X.X% in XX.X% to to XXXX the comparable income year. a top compared been revenue. and year, was quarter interest of on the for Adjusted compared comparable million our two our in And comparable $X.XX. in And attributable to quarter. tax was $X.XX XX.X% XX.X% $XXX.X earnings XX company of net compared the to million, quarter last the revenue two,

equivalent revenue. U.S. to compared $X.XX $X.XX the -- GAAP amounted income Group $XXX.X integration and prior in XX% adjusted per $X.XX income the release transaction expense, note of share net or for to costs. related Included year. $XX.X and company company recorded from for and per the share This related to GAAP the of the share earnings per tax stock diluted attributable of will first million year operations During we during the benefits. earnings was period. U.S. quarter, million the compensation that press included costs slides, the and million you $XX.X or their respective of transactional the excludes amortization,

effective consequence, rate XXXX a adjusted for the estimated was XX.X%. tax we HX As

the balance in At XX $XXX.X $X,XXX million XXXX $XXX share is cash net of was we second of of guidance, $XXX.X of and diluted a the company from to $XX.X leaving March XXth shares In cash accounts the June addition, with Net at compared $XXX million days were at XXth, during XX March, million. basis, cash the June, XX.X balance quarter XXXX. compares accounts end of the of of of at expect was the XXXX days XXXX. XXth, $XXX XXXX, with quarter This million. XXXX. net with million. million receivable approximately expenditure June be compared XXXX March, and XXst, at a This gross count cash balance days generation Cash the of Capital at comparative activities a respect June to to On a at XXXX. million for our net of fully outstanding XXth, net XX million half $XXX end as had and million [ph] was operating days cash XX receivable $XXX.X at XXXX. million sales June,

As PRA you acquisition combination funded through know, of and equity was the cash a debt.

Markets of financing, worth we Over engaged long-term sharing. a outcomes Capital the secure to number May of resulting in June, course and with

and decrease previous highest status, a of represents and investment from one This we relative relates BaX the ratings Moody's, first and notch we to industry. position, agencies where respectively. achieved rated rating S&P double CROs credit remain our grade at our the both B only one to The in plus from

billion debt broke required finance five-year to of a seven-year transaction. term billion fixed bond over Secondly, tenor. $X tenor and floating yield notes high was This loan of B $X.X we a two positive very the over $X.X billion instruments, process had the raising a into

will sorry half excess us secure an global in high with current two X.X to of -- means we the oversubscribed rate us times, of was and to by turns, adjusted XXXX. X.X a ratio Demand with to X%. just of that a debt inclusive offering B debt to X.XXX%. X%. maximize was The over repayment of yield [ph] of our times to billion, $X for completed end secure of goal a us approximately loan a of helping structure bond, term all of high This all-in transaction rate of subscriptions having blended below interest very also Our have will synergies rate reach allow EBITDA quickly. our do more We and adjusted finance to -- EBITDA what our with the just

million. our debt, to credit increased $XXX $XXX currently In addition undrawn. long-term from to facility facility revolving this million This is we

transition. working over his Curtain, hand in to for has the Head I four team corporate transition ensure their to best our them lead Vice Corporate change of team, department. across who like finance responsibilities announce roles. of Investor led existing commercial pleased our out of And with from Kate Jonathan smooth I as Relations succeed to very this as development both was will will Before closely will to that I'd our of Kate Finance new Relations. IR Steve, function Jonathan the make Group. Investor Haven, luck to of aware alongside President wish role be you a I'm over our who moving Jonathan in years,

with so over of all And I'd call that to like hand said, the Steve. to

Steve Cutler

organizations similar On intelligence to everyone. delighted July, high the were Thank growing become and to values of good clinical transaction PRA. the innovative, you, world's together Brendan two This Xst, leading ICON's day, culture healthcare acquisition CRO. close and we and brings quality, with

to paradigm accelerate and monitoring a has the the help key With flexible milestone the in for trials clinical significant need this will pandemic the The COVID-XX to manner patients, by was create presented vaccine agile with data environment bringing to novel going deliver the the solutions to delivering forward. conducted a the The in COVID more monitoring and clinical the monitoring addition emerged, efficient will offering are process. industry fundamentally and customers, an review this change framework we and first approach flexible for market time, in in of clinical our capabilities ICON created has while to ICON A demand to applying PRA, which opportunity for clinical shareholders. the changes value to expanded way research and new which record model.

trials on non-COVID PRA in proportion the ability the scale wins first revenue, execute And year, of a large both influence with projects and a this relative half ICON this of to very level Our these work. saw has vaccine during area. pass-throughs business these to of both of in resulted higher our healthy

begin As a change. opportunities is we decentralized industry remainder to in an year, of the level. space. transformational progress to about future traditional mix seen the we excited through from to return we poised increased pass-through a expect hybrid have parallel, to more In and models, shift are we trial The for normalized our

ICON. resources We market-leading both and strength, skillsets PRA significant are now combined and in a of with of the position

support individual mobile forward, the than development. to key be I and easier create of trials capabilities new ICON success. resources manage be parts. of site telemedicine, be novel required sum believe for investigator patient-centric direct-to-patient these solutions to much will provide enable for testing, management. the PRA distribution to compelling integrated and it central also and models, collectively, of And ICON long technology to our the differentiated integrate position execute we services with in while drug and have able patients unique clinical customers. histories site to patients, and burden, the Both decentralized and and new components the stronger to to Moving to is the labs to will solutions making ICON to in-home on require customers company process delivery ease these our part patient Successful

is expertise, activities goal from will functional CRO, healthcare have ensure are talent geographic single the offerings to and both leading legacy intelligence seamless team from functional well underway broader and expansive technology, company. healthcare therapeutic transition customers well footprint, we create capabilities. service and Our are innovation, to our to a a where collaborating Integration and benefit world's organizations deeper

our central positive, Imaging. of we and customer Health specialty are new and in business customers' and complimentary Services as the Already, synergies site projects. strategic generated of As base. being execution we across services from clinical revenue The broader customers integrate continuity -- being prevent initiated nature areas present the on our such with labs, will Home and partnership network, discussions in our day-to-day interest opportunities delivery also our ICON, and remained focus Accellacare seeing the cross-selling

internally as announced number already our our are also pursuing benefits, not to of are similar that This in but $XXX cost will offices million have consolidation situated their actively we also of locations. best office P&L target work, the post-pandemic. the a We do to help drive returned synergy and will teams only of

to mission of As innovation continues to the remain focused getting evolve, faster. to drugs will that core marketplace market be on our devices it facilitates important and

research to XX patient across offer in United as million patients diversity Our reaches option research new driving our Veradigm process systems technology increasing Allscripts clinical enable StudySource clinical alongside extends existing that care accessibility this with research, HER-based Veradigm trials. XX,XXX include physicians the aims more across expertise, to to patients, leading the the clinical eSource and Using clinical a network and will create than efficiencies trial States. network their and platform, partnership which and EHR to industry's research clinical proprietary physicians

follow-up sponsors to growing a real followed In world in addition, have enrolled a from be trial clinical and authorities. deidentified Tokenizing regulatory tokenization. we increasing identify outcomes interest patients sponsors to trial and of our our key reporting data to ability within in long-term setting them improving enables clinical seen manner, data

launch expertise is for ICON our and linkages which asset Through data information implemented a Symphony and and patient allow the translate organization to in New compliant end-approach. resources has will multiple support meet we clients, has growing benefits secure in registration environment and and to positively into actionable ecosystem ICON top clinical analytic Sonoma, only deliver trial three their truly needs populations ongoing to utilizing that tokenized end-to to our solutions pricing XX are differentiated world's goals. product existing since XXXX partnerships. initial Current May, impact Alongside customer the trial pharma can about include capabilities, of the development, customers for a of a tokens customer-friendly data vast development. companies

leading patient delivering and X.XX of billion book-to-bill As new solutions shorten year provide X.XX. Ultimately, the and patient, quarter in participant book-to-bill recruitment and hard these we components continued will year-on-year. and competitive and actively beyond, integrate performance backlog our record grew set our increased advantage the rest earnings strong space diversity of growing delivering XX% create basis strategy, of to patient-centric a key be data increase We build investing site our trial This to the ICON's standalone goal a adjusted by to $X.X million, medium development our a our a billion, momentum by X.X Revenue where quarter, we On to that net nearly is into retention, per and long-term PRA solutions. accelerate and for compelling customers quarterly during able the and a confidence business will of clinical to $XXX.X of innovative timelines. and $XX.X and clinical wins to business a to XX.X% over operational the customers' heading. increase sustainable commitment to is ICON to wins net billion, demonstrates share and helps the were also delighted an for the see XX% to $X.XX. in increased

shareholder combining our with growth solutions, model. by service best-in-class global revenue support increase value from to offerings, services create significant scale expect innovative We enhanced and long-term

billion, we range As share a are outlook of range to the of our $X.XX. billion this guidance acquisition, and $X.XX in guidance result of $X.X with the revenue per in $X.X earnings to adjusted XXXX updating

their from Q&A, gentlemen, hard the and to ready commitment teams and now like moving during Instructions] we're our to all Operator, all will Securities. PRA Pleaseyou’re your colleagues I and [Operator now Draper we ICON for you. Truist comes Before question-and-answer of session. quarter. again first question Thank work for welcome to our new begin the from the Ladies thank questions. of the question. Your line Sandy would

Sandy Draper

is about question congratulations issue think but targets do I you a target cash and also about of sort the really on flow quarter, for and going be about of pacing have the an the Brendan, talked deal free your should be to it deleveraging? in or much we getting that thinking delever, it, My financial terms for so side. delevering, strong a on Thanks and like percentage -- a done. you when what's of to

Brendan Brennan

debt-to-EBITDA up Yeah. called I to remarks we end about X.X it by XXXX. there. the the Sandy, on try to prepared of get Obviously, want times to

in on So, that that, we'll stay focused interim period.

XXXX small most elements that got in really getting opportun Sandy, or and definitely We'll looking our back. So, acquisitions where you've -- to save supply timeframe. that be towards XXXX of small at target, cash going

And will course, our level the to of about will know, managing be that we continue build it desks using out as So, we it'll percentage be much a that certainly it, high leverage very an set we off point. we at free to like exact then, get to on really percentage cash to and of but -- until still from point do. more that resources flow, haven't have cash organization,

Sandy Draper

my also is financially And Brendan. Thanks related. Okay. follow-up

Are much the strategic any that two, the future quarter costs -- over transaction? let let one-time smart cash or with the ask I'll charges next there basis done cash for questions. on others transaction a charges you or the pretty in Now,

Brendan Brennan

Most of just to like I'd true. Sandy, have Yeah. not that, say, that’s done. unfortunately

more majority take quarter, off expenses by taking vast then. third be the but will the We care will the cash in

maybe majority saw second a be in will after a the still chuck our certainly, to that higher done. not there third So, go, even quarter that enough the similar order in and number where the little we

Sandy Draper

much. so Thanks Great. Okay.

Operator

your Elizabeth comes Evercore. of question question. from next from ask the Anderson Your line Please

Elizabeth Anderson

things. on update congratulations any speak overlapping the your I was coming so their on question and Hi, guys. and thoughts of some win? from then Thanks any completion. also two, to efforts could of larger two clients sort staff talk you perspective? And and potential combined retention broader integration for the one, transaction wondering on about and Could just the on to feedback, early internal you much

Steve Cutler

Sure, Yeah. Elizabeth.

discussions positively clients, overlapping had I contemplated that in and to we those we seeing been those than and received before, have -- We're do customers those point. with that before, one the perhaps as a of two number been the transaction. have We've we've discussions we're customers risk reasonable of terms less we public In a or degree. think to anticipated not very had overlap

of and those number combine to customers. areas they're delivering number make and a part discussions. a involved to key good that both of of for place. in continue circumstances, offering we've the I'm as So, those We had customers in -- a those are well that we in, sure looking They're companies

comments -- alluded strategic as very particularly what And bring of as past I it's a combined been well, had a interested to my over are with well. they in with company as years. strategic customers number So, been, neither the few in entity discussions who And general, in had also has positive. we've relationship we've the can

So, net-net, the response particularly a terms uniformly. very well. a large positive almost in pharma strong, companies and across as been board, It's right positive customer biotechs of

to directly out market in as the pretty believe certainly at attrition, I of In -- States is certainly the staff across market, probably quite of terms staff moment over the in of really. we necessarily, not It and a It's we retention, restructuring the this pandemic. retention labor in XX last the the months is the last we believe, the a tickup related -- transaction. labor don't little United world hot of kind particularly attrition seen -- bit it's come frankly, of

uptick market cetera. have when cetera, new make obviously moving in salaries, it. paying this lot in little et et on And paths seen we're going the graduates to sure in we've such. to people as market bit to career an there plans to are of bring addressing I parts we think -- labor There in So, place we're a of various are a

I I attrition that related uptick just I money to to certainly think or what to spent our the seeing clinical you'll or is there's acquisition It's don't transaction. a we're development. think same ICON with in don't as industry well. it's a something the related it's lot in directly of find the And think being competitors done. across we've as

So, we're companies with well. as CROs for other We're not for just pharma competing -- competing and companies biotech staff. with

we And strong develop so one then the of of the have business consequences it's same at and development capital being So, the the market well. wins time, availability probably growing higher as take -- other complain and attrition being the be drugs. to that's about market, to you with the can't

Elizabeth Anderson

it. very Thank helpful. That's Got you.

Steve Cutler

Okay.

Operator

Your next from question. question Credit line Please comes of Wright your Suisse. from the ask Erin

Erin Wright

Thanks. Great.

been relates what combined in of to the prior in it you your Thanks. for operational the terms some outlook to the any basis? just meaningful standalone As business more are changes basis guidance, changes Have expectations on half for second there that since front what's gave each relative key of it of on the year? your implied on a

Brendan Brennan

Not meaningful, Erin.

about moving income and year-over-year. in that with in the XX.X quarter-over-quarter underlying I million to that has half elements, other that. we'd and shares, see I outlined of XX.X of be in direction we're -- both moving we'll right operational year There of a both bearing the second pleased year. course, are organizations on or strong think in half the of that operating to But solidly are made kind numbers indeed count, good the the of And the are a that fact the stock obviously the companies We number. terms about the EPS reference my second and million uptake of direction. EBITDA in apologies, the

synergies long-term, six place in direction. in the and that synergies next over first think, XXXX that of around some start regard. putting see work right a but we're little course. benefit I of it's We'll this months, really the And, the more years. certainly the XXXX will So, now number thinking bit the the impacting, course, steps in of we're to for but we're about And of doing the predominantly, moving

operational QX a QX. So, rolling performance strong forward and into

Steve Cutler

Those as to these trials, had in add involved this Erin vaccine think towards we've only thing I'd a the first been their significant I are larger said, have end. is, of the PRA, coming year. that with element half studies have which pass-through I as the

-- was Now, still it'd now, big we've revenue probably towards be business are COVID big still of end It the this a coming the over very the lot little is vaccines, it of work. of we've significant which our attenuating a a studies of sort those -- quarter. seen pass-through the last couple bit got wins quarters. in those of part growth rapid But

the played only probably that think thing that's well. into our bit So, a little would I guidance as

Erin Wright

on at that basis little of on question, goes And us the right I And associated revenue in COVID-related the that'd provide of quarter give each if a color trends a you've detail you of commented be already is, guess, which but Great. the with dynamics second throughout to could you COVID on work? kind could COVID-related helpful. combined into the percentage the of more front, year, my a Okay. the the and little of on sort that bit awards businesses, on or date bit

Steve Cutler

Yeah.

terms new the high of coming of in COVID now of it's terms our but teens sort still that's little vicinity in RFPs. flattened off a -- in, bit, In opportunities

of It's high message I teens on is suppose, a proportion RFPs. work. here. our significant So, COVID it's still the There's cliff, no a overall

New mid on it's than And business, high digits. bit backlog, a it's single our higher that. little -- in the

continues of important work It's an to away. be So, it’s COVID -- not portfolio. a our going part

long-term probably trials, an I are There's vaccine big towards vaccine diagnostics. different trials, towards trials There's trials. moving As patient treatment space. end, the more we're in population but coming follow-up say, the those days

a rest -- very well. the we've said in all RFPs and may it as with uptick in I COVID the also for knows requirements -- of positive as couple seen it it's work. a the booster who I And boosters, work, of to and significant through, before, even years, or certainly work, continue it's environment another think, I going our COVID that coming And for as requirement potential so that non- impact well. been from But variants

have sort a off RFPs COVID have growing the that. RFPs substantially replace been been the to quite if flattening non-COVID So, of little bit,

So, positive environment. it's a business

Erin Wright

Perfect. you. Thank Okay.

Operator

next Blair. William your line of John comes question. question Please Your from from C. ask the Kreger

John Kreger

healthcare Steve, know company, Thanks legacy I you us the Can company about Are on a the very clinical intelligence you're of intelligence tell leading expand little Thanks. just new world's primarily CRO. the really thinking calling much. that business, what the the is part you're or PRA/Symphony that we Just broader? healthcare bit part? that thinking about with tagline?

Steve Cutler

world to to wear development questions answer take It's data those the John. a ongoing been of decisions our way we do in in able component manner good make talked products Symphony use is a question, differently and response a products in real an and track a the we see -- a organization, their able but I interpret deidentified different that If that do to and patients mean, we'd the lot coming and things they're the of immune we think healthcare timeframe the allows insightful portfolios, and of to pricing that only and the society basis. do sort helping how that Yeah. are us support, indications the of products, that but sponsors' for being about on to that bit are in data, of the compliant the it. thinking another products, important vaccine and we the those intelligence, able just analyze are and part than need really part a What's intelligence people registration to sort way the booster? the tokenization. up evidence of I way of information those of we -- actions, of data a we've not data. about as we value in out? that's We So, not of the able the very that important and on being be the long-term. it's just now,

Symphony it. and using of identify So, sites. we're one to lot the talked is big part about We've a tool a right view our how that

that's directly And and wearables strategy, our sort patient used is things data to but approaches where of a really bit so, intelligence more and and been that more perhaps using way DC. like technology in data we're data It's nuanced and little a in variety and patient around a of sites, it ultimately insightful the the us gathering has efficiently. going different in past, our are site to effectively trials bit patient more deliver side things way, little of than allowing a much and a at

John Kreger

follow-up forward, are maybe a all question great. at That’s bids? Thank does thinking you. And Do labor higher quick pass to this to Elizabeth's you on about costs going staff. along you’re change -- you able margins or your in

Steve Cutler

it's at compete There's marketplace. And the certainly a marketplace active as the little actively to said, need very pressure I've a on the wage we line. in And moment.

might there. very a get the short-term, in pressure So, little we

studies handle more on more efficient importantly, patient that move more and that efforts doing our We adjust within our we're the they're we their work-life into can to work that also basis computers, physically our to model more be also our the we being I than It's we do a going to essentially, of that. at bit because plane sites moving -- a desk really all do efforts monitor on And their a efficient I contracts think And offsite to remote sponsors staff monitoring, on it's think are supercharging can allow where can that. pricing to us the buying better allow got to fast. time and those to inflation. their remotely. able allowing fair causes balance, rather gain them certainly think to of our monitoring I

sort well. talents is as we that market what it's -- got and some we the helping from This So, as during that. pandemic, did also is labor we

offset of we we're So, one sorts are But handle we I challenges help the certainly -- long-term. think working opportunities there certainly believe and there these that's any can to and that us will short-term, think we things in we wage a to inflation them. as have And through always perspective, well. of from medium And that the cost in it. are opportunities

John Kreger

you. good. Sounds Thank

Operator

of Please ask Next Coldwell line question. from question comes your from the Eric Baird.

Eric Coldwell

A have a couple few, -- think pretty Thanks very much. quick. I they're but I hopefully

largest pro largest both First you largest basis that quarter. said X.X%, down the in customer think to you customer would on be companies, remarks, revenue you in the of Were said looking brought I specifically ICON's across the a citing X.X%? the level, spectrum was one, prepared or forma would of customer your be

Brendan Brennan

companies, spectrum the across boat Eric. of That's

The would customer top our be So, new X.X%. base new customer of customer that's base. that

Eric Coldwell

That's great.

one, you half. second rate your on hoping in the us Second thoughts I'm give can tax

Brendan Brennan

We we'd of it start way around Yeah. the ballpark and off XX% Eric. down work that, our said from in

We -- haven't one. on our that mindset changed mind

we're at of XX% second stage, the half this thinking we'd for -- XXXX. So, be

Eric Coldwell

those in a who for at were next transition about for one, service provided if able a you're And kind that the start this comparable to tracking full I'm have don't us number in level just Okay. and you historically bookings, would of bookings purposes unique did or past? it. approach. PRA know share year if of have curious you But hand, They PRA The adding ago.

Brendan Brennan

which type great only one booking, only and Not this XXX, apologies. at one a hand, there's in believer My of one, the of revenue on Eric. type feelings I'm there's is my

we'll where forward. that's go So be as we at looking

Eric Coldwell

much. very it. appreciate Thanks Okay. I

Operator

Jefferies. David of Next question. your from question from comes Windley ask the Please line

David Windley

there add my of not Several the questions. kind a Good your stayed or hit within has afternoon. gotten seeing in remarks, how questions what you about changed I've was Steve, at maybe for color to, at or I'm if I -- hybrid thanks. but but rate within mentioned environment, little more bit the models. submitting. or then Hi, demand you're RFP Thanks RFPs could the And wondering perhaps was the you're just hoping that, point prepared of seeing, the Good that taking also you're all? bid evolved trends, stable relatively morning. maybe RFPs, maybe

hybrid your it more is with If proactive RFP into how you're to DCT the and creeping being study, about front? that approaches type

Steve Cutler

the RFPs. me with David, Sure. start let

right but not large we're across I to I the in just operate it's the dollars. of RFP spectrum think and positive all terms biotech, we the biotech annual right that in in the and midsize, indicated, pharma, in as across segments a space, in very been environment, high-teens increase be continues

with the So, it's -- be that's moving forward. happier way couldn't

both think as also seeing really I mid-teens And seen seen sort think of -- we've in ICON, and of a organizations. increases -- certainly PRA similar that. that's have then RFP. across I sort their across

So, again, we've seen both that.

evidenced awards. the in that's think I

late win of hit again, and dollar PRA Actually, uptick stage morning early uptick hit is this and stage. in the I ICON at terms at our we've the in our detail have our and standalone. this stage an our don't in across a in spectrum, business In looked Health, Accellacare an strike the rates I to rate see basis, was I as seen on business, for rate, particularly this our Home But rates. pleased.

again, increased So, really the has all us rates pretty position. that's put of a in hit with numbers good increased opportunities,

make execute, to have customers I the think our to but ability that really in this does to go confidence integration well. it speak our also ability our

at sort a whether terms a and as that we're In of there's of seeing a of these work almost There's well it component, and you we moment sort going collection of sort say hybrid forward. certainly operating and wearable I a data of talk mode. a in know, the remote lot area sort be majority a how hybrid hybrids trials that the -- of of discussion would or that. lot monitoring a trials direct-to-patient there's relates have of propose the how technique, around component trials, they're lot would or interest of to some lot

more much there's to component do decentralized of other, of down even a trial, So, an up and component trial gives next It a I'd the then fully right a and lot to component a of decentralized become between. us the the approach. or hybrid say, find the now, to propose of for on, positive. which build But or the us deliver it very have build sort hybrid that we something sort end opportunity on and they really hybrid gives decentralized to are vast that more sort one it of spectrum, we in the of one that hybrid really from some trials some goes and majority,

trials much sorts to spent. again, more it's our open and their very those and deliver much They trials. makes it their budgets that feel are particularly those efficiently -- So, of and very we aware customers discussions confident it can where of

David Windley

follow-up of It offer areas, a to a those that the number to me go-to-market cross-selling Thank encouraging. on kind services. might an in your My those prepared of is little you seems sounds where question opportunity. some That you. mentioned related to ability the -- that, be also of touched remarks, and you

ready. more base before central integration little of might I more versus how that. give revenue some others. if integration bit opportunities PRA your example, whereas perhaps capabilities the some client you with wondered technology a DCT the be of trial see require go-to-market agree be immediately us development might sense Or you some approach might and For could a if might for synergy the things for and strategy to labs immediate, you

Steve Cutler

just with opportunities, say, seen broadly and flow We in we'll see I front, and would year, those half to do flow certainly lab labs starting already on Dave. I from imaging starting the to some revenue the that's revenue certainly would of second into, you the -- immediate happening. language said, agree services, I wins what

that. around million think basis. like way of on our a run in well run annual expectation an we to have think We rate, I synergies we're it. $XXX to potentially And exceed I'd on rate revenue can And

play. to right. mean, unified We're build and of terms things the are more platform. those to our to the decentralized, of I come some into health a platform In working very hard mobile going bit time little you're take

that bit will of end next going go, the and to time. year, the replace But we're changing platform towards but are ready a those We these believe couple take number platforms, this things have having have and to a unified of platforms forward investing our of moving then and platform discussions we're we which current no That the further and in we capabilities little into have will of I space of in XX terms in our It's the again, integrate that. and But aspects longer, active will resources decentralized to, that not question next very we of allow always significantly take get decentralized months, and within -- with those year away. we'll as various certainly, approach. little of think, about that a totally implementing that years it's approach. sort be us

David Windley

Very helpful. Excellent. you. Thank

Operator

Your Peterson the next from of your question from JP Morgan. Please comes ask Tycho question. line

Tycho Peterson

Hey, the synergies follow-up out hear that with. the of the currently customers. third resonating then think I'm kind great business don't of pharma XX to line It's of customers, to last top as revenue of about rate. about on going and you hit curious, thanks. questioning. a talking just kind to Steve, we really you're what's I'm If do

of what's resonating? And network. then that that through pitch is the at talk you doing thinking you to of you about the How angle time new accelerated about it it was, deal well? table? are talked another recruitment the about patient go Accellacare Is you the As Can just you scale? them, little a kind the of capabilities bring to kind bit to as

Steve Cutler

capabilities, about. things -- cetera, it's is Sure, want mean, us of -- there's Tycho. important depth therapeutic talk breadth, we talk to and to usual Obviously, all I'd cetera, customers they et et scale say, those that I resources, as to it's to them.

respect. as mobile interested doing we're tokenization we're some these and what hear also creating lot to think a is interested how of strategic their creating is have the different -- I site us on around our trials well. is Accellacare clinical interest developing a then lot trials but have Health network, interest. to of there network, which of discussions. The that, gives and for we they're that and The we decentralized platform a You also patients approach health in Accellacare decentralized on to increasingly bring Home be They're the in that slant

So, a capabilities, integrated that increasingly really also solution space. bringing of ability resources of and clinical we're opportunities highly the scale the it's the the that's data a to sort technology, but usual combination and put in and together

particularly the I customers, our think ones, about excited new that's offering. got the very what's larger

-- of decentralized there's trials with to you have In network don't the believe any still approach. sites -- -- trial in sites, nicely going decentralized our the on the fitting terms Accellacare, involved. it's be there's We

believe You can decentralized performing our it's area still the to they an and be financially that They're that. have strongly revisit. both and we to operational, And for have we continue foundation offering.

The big for quality really come we're doing with and in to sites, we're vaccine those look up the to and their rates like. of data at first-class sites has providing involvement been able role those are the to what played trials. how continue recruitment they We what speed major that a fast us with they at are

really exciting got that and components to be going about And the approach customers. we that very role for that they're so, performing We approach I'd they're in can hybrid solutions really key feel -- as of particularly they're go forward. more the with say, and to pretty we've pleased excited the together I'm all bring way decentralized play decentralized

really I particularly customers new getting that's interested. what's think these

Tycho Peterson

that business world How about to being And of of focus at how they part real market. about therapies Obviously, lot the kind the pandemic real rushed with are thinking solutions, this world you data are and you of feeling data the bring? a there's point?

Steve Cutler

disparate world -- we're The Yeah. real world it has side feeling the data we're from together bring really from on from individual that. real a introduces it of things, data. to the and in like genomics us deidentified progress the feel basis lab aspect data, in making that another record different data, and track data, of patient allow We good from ability sources an to data tokenization health to bring

already be of in a randomized nice is gives a trial areas we've perspective. story We feel real process to along operational down, over working that another portfolios, to now. going we're forward and other The years it we come And role do is and assimilate development. our world a from really nice real arrow world And future of real clinical analyze going the extremely basis believe the that fundamental critical. I tell real evidence valuable. at to we insights, to a that the major seeing certainly world and and us out probably played that absolutely that's data would is that, a are the quiver hundred delivery ability in of world patients extremely been and really data with on long to with some as the real and So of put to last, direct world going ability the on have front. take look controlled the be part a valued the certainly the forward But pandemic think a collect vaccine, who vaccine the

believe have and that's area an so, real on highly some we're focused we very And advantages.

Tycho Peterson

see Last this pieces now PPD at Covance in back private space How for and of that We one There's changing assets discussions focus with number out happens much to have as being moving this equity. Labcorp. you a me. is your hands? obviously these a acquired with, of what for Parexel lot of are a customers, go and

Steve Cutler

Tycho. one, That's a tough

different from of recognize concerns in in changes They by what's dynamic huge about our competitors. a I our think I'll happening much their to what are precipitated about into they haven't too projects. we're and heard sort of doing be talked lots I we industry. I we're think about customers get of our things. any customers lot industry. don't There what honest a

to so, sort And of I'd get it, where prefer changes? -- into what don't does of But those presuming I discussions talk and many with doing. about it's customers. about competitors aware too we're they're ICON I'm our our

Tycho Peterson

Thank Okay. you.

Operator

question Jack from your Nephron the Meehan comes you. Research. Thank next And from of line

is line now open. Your

Jack Meehan

-- morning on the more on I give Thank afternoon. in big good PRA and color sequential Wanted you. start had a a They bit was could to the Good hoping you revenues. results quarter. step-up little

you could if dynamics there. work contributed any COVID path that might've or curious was about Just through talk

Steve Cutler

year I trials. the in saw second a work fairly Yeah. Jack, amount quarter from of the the and comments vaccine half significant of think in our we specifically in prepared alluded think large that I we these both first

significant trials. which revenues position to there, I think led jump up the in a were that pass-throughs because large both of companies those predominantly in in similar

So, no surprise. huge

say probably I the there's think we think those end. more, cliff, no work. the follow-up but et follow and trials of going diagnostic the pulled of forward, and it vaccine sort But on there trials, days I not coming out, towards ICON. PRA is going this There certainly -- I side the I hit things we've think trials as revenues scale on on cetera, a to peak that factor for are forward, on was of was trials, going because be we're those those think for the it -- trials. There's smaller of a treatment doing

Jack Meehan

Great. And one for Brendan.

in Just color number, parts, I to the within could year around around color the give lot full the quarter, of Or your phasing for expectations in guidance, any just up if fourth there's was the would any you obviously moving helpful. third be wondering just quarter. it -- a building

Brendan Brennan

the through I very the to of of the strong probably in of Jack, as better half obviously That's said first Steve that were higher is back the the somewhat that guidance the indicated end of mean, year. the midpoint pass-through coming the even. that in to around the to consequence kind be revenue dissipate certainly year, -- lot going expect at half Yeah. the and of I previously we on a and revenues, a continue as made sequential. answers. will growth do to point give [ph] We

off continue -- income see and on probably sequentially, be you you to yes, work it'll but that pace. direction an yourselves, absolutely math sequentially So, moving on in that can can even op at the the right

a see even bit so. I of think QX, we a pickup a into more little from little QX might

get do that's progress through to it we to I we where broadly that good continuing year. think pick as say expect So, the with sequential up --

Jack Meehan

Thank you.

Operator

your line question Barclays. from the of question. Please Sergott next from ask Luke comes Your

Luke Sergott

for just want take get thanks question. -- the that to to comment. guys, Steve, on your I Hey COVID get just cliff want I

that on Just business industry enough your that, bakes So, indications. as is as and for there under capacity starts online, kids the vaccines soft and that going about extra this then therapeutic versus the XX thoughts landing work on? think for know into hear I that's we to capacity handle regular adding cliff. and and But back are how different kind variance the of love would the to there all coming

Steve Cutler

enough. mean, enough this. there's about I think we've directly, certainly I trials question to think way got more think these we're capacity I monitoring. The talked more your -- answer doing industry Luke, is I do now, the I've effective. remote The remote efficient, Yeah. to

some of world have We mega and major contributions the around numbers. certainly made patient have in sites Accellacare some our of sites terms

have low because a trials, to you themselves of oncology volume They're just you of of patients well, with have of remote huge trials, So, They you it a relatively at intensity of suit is way. lower they a patients in those trials, lot and put a very work that very patients type they're a not number that can have sense. large sites. don't lot much while makes you of necessarily a intensity approach. If have these -- type sites, decentralized do

very That studies, vaccine future. very have do. the confident doing think be we're mean asked be I'm these on large doing various capacity to And say won't be we're XX,XXX, the the kids, doesn't we to patient we the going that to going to a subpopulations. the I -- So, we're those. do doing to don't work XX,XXX that did in the trials make comment follow say I

at RFP high-teens quarter. the in are the last indicated I still As percentages the in

the important in quarters, part get significant of uptick see trying backlog. part important of And, the don't those work just as revenues. quarters, couple So, was our pass-throughs of it But across. COVID what I last to in course, that our really I remains you'll of -- remains we've that's of anticipate portfolio, seen an the in future

Luke Sergott

FSP about then the just those how And you about with then think talk been lastly, now in RFPs guys and the mix that helpful. any on FSP? forward can of demand with PRA trends if -- you there's That's work, the on mix Yeah. And the changes how going a of -- book?

Steve Cutler

Well, very strategic good about our solutions FSP, group. feel a we

industry some area. by that in distance We leader are the

space. in believe, have compelling functional very coming a successful a that organizations offering We've top-notch, We a to -- I extremely we had believe, two groups. services make together really

to continue we our our market that believe about the good very in really going market and to feel forward. we dominate ability position So,

It's part In demand, in important offering. the supports an demand strong space. as terms see functional It still of business of our full we our service well.

really market a short-term basis. own but group ability it It's fast also for speedy and relatively benefit to a a market resources and and it allows is itself, us. a double in us -- the So, a bring from in strong market our it's growing in

from as So, sort of it for entity for some not number more alone a course, of business, benefits our both provide -- we And, has hybrid pure an our our functional, just data but and full growing of service. analytics. opportunities functional of these and in where terms are

-- we one provide growing. on outcome, and -- a do I basis we delivery or for the we some developing is project business take should very connected a an will responsibility that and a unit about than the just and it evolving, So, this and passionate rather of management feel emerging to on say

Luke Sergott

All Thanks. right.

Operator

Mark. question. Capital KeyBanc Hooker ask Please Your from next your the line question comes of from Don

Donald Hooker

Great. questions been asked have A lot here. of

to of already a didn't data I access new I'd interested with what's perspective what give entering So, a I was partnership -- about there. new to you your partnership tool, in and that Allscripts just Allscripts terms so they have what going are and this one. you You you with of this of you kind and have? love lot Veradigm in led have interesting partnerships,

Steve Cutler

installing of to Yeah. the we're expand sites, to really this to that practices it's helping moved network, to it patients are really those install software, clinical for in identify their opportunity on. But patients business. then the where love the much of an going That's These like. are -- allows and research them into to become our or trials for this. candidates PRA is our it's -- you very clinical for put -- which I'd capabilities side if

for probably but initially trials -- go particular there's clinical who if will themselves. the their people net physicians refer be But whatever area, the network can were the a site, -- them, because will stage the be research either will patients dictate, circumstances whatever spreading need of simple trial know of sites be stage site they will trials, have. become more naive, a physicians available they a sort offered we're this in which are that patients wide of of the late those will So, part treatment more they to can they these into and many relatively later would the or to that site most

as really the a introducing patients, were clinical which of clinical research. we So, believe certainly option for care is future researchers I

one diversify the clinical our have more we're people to is talked get patients, of Only doing patients find democratizing involved. look involved as X% This have then as practically been We at to electronic option offer the conscious and sites in way research way an expand to about need and patient allowing people trial. that. clinical the of population. trials, them. or We to that, a the typically to is a to -- diversifying health clinical records in being intangibly us X% This that that these

for a our Allscripts take has I that as it's for number being really driven able we're I has Kent to whatsoever. partner So, with this these this patients. option credit Thoelke sorts Officer, about of can Innovation initiatives, no an Veradigm is area. but excited and a and make exciting of Chief driven he One sites

Donald Hooker

Well, for the thanks question. Great.

Operator

question Citi. Patrick Please from question. Your ask the of next Donnelly your line from comes

Patrick Donnelly

hood are on for the things there, tires? gotten now term maybe some the you taking just going shape a you near kick opportunities. It Brendan, for then of the to synergy and how already you've confidence side. progress sounds level and near bit of under one cost Thanks about talk the Great. term that some through opportunities to that's the Can questions, kind like starting guys. take

Brendan Brennan

Yeah.

we've of we're happy those which starting consolidation obviously the to early doable think to that And infrastructure the think around the will sense XX we maybe that fact to really office of and facilities that could organizations of taken in good we made a keen cultural to XX% that certainly project. point is look bring very two progress XXX a announced It of we as some the XXX, I the numbers the And together. percent, is would through of about be probably sense from sense. the imagine as a and infrastructure. financial actions I getting that is think, range course. of the makes exceed folks have we're is area already to office said get that past, Steve there makes to management. we've we'll we're And we've it, of and into the get that's in already. reference or teamwork, we're savings It's for facilities -- out those one better of so the do an also a some office, -- view making number in have around and -- of the with XXX, types about in even of identified

early some there's pieces So, of the we are doing.

will we our had running that our efficiency time well, in very as models to and of that that also wide good ICON course, areas and managers bring that the quite the Of some discipline, systems terms organization other for in onshore/offshore cost services the we're models have now. but looking the and for enterprise we've of stringent at we support be

think pieces, we'll make facilities a good that line sight. there, we see -- can but in. as to It's So, coming said, the we good start of more progress days. early the probably of I And

back that so for down ready of certainly, good in putting blocks a bit, year, in but half XXXX. the progress in little the said, obviously back not half the this building year, As I for much this we're

Patrick Donnelly

profile, of one shift, a COVID mean, about No, any about we just pass-throughs I and non-big some it. not? obviously, you've work lot we a talked you of as things that's work reason non-vaccine vaccine that the but kind see the into of the COVID work? trials the Can of profile, talked get just about big margin margin should helpful. next we on some that talk and versus COVID One -- away the should large how some the like vaccine child about shifts think into work, year of mix COVID specific from the we some

Brendan Brennan

to get think not will pretty the revenue, trial but those mix same into terms certainly pastures that beneficial Yeah. the we extent a large Well, the non-vaccine those very are obviously as I trials, positive significant not a of course, margin has have of in patient nearly to element mix [indiscernible]. postures, without the to have that a same is extent And overall or our XX,XXX would profile.

so, half and and first expect get we've to XXXX on as half And margin do we the improve of impact we significantly into certainly we that as particularly, to come seen gross into this as start year, back of well. the the year that certainly through

Patrick Donnelly

you. Thank That's helpful.

Operator

line the from Juan America. from comes Bank Please of question ask question. next Avendano Your of your

Juan Avendano

Hi. Thank in. squeezing for me you

for one Just me.

reforms to is are deal. ICON? to and and is definitely you energies, being company, process inversion Irish the us evolution your on they updated if see favorable any this can given thought tax or would not thoughts that on the give proposed component minimum tax a the an there's apply anti-tax to whether global your But been On ICON proposed the

Brendan Brennan

Obviously, would we there's first by no, one, apply of rules, we this don't inversion the rules inversion really legacy don't cap, the they particular so were market the startup the risk think any around feel largest in good. company the transaction. on scales the organization organization. part, We're ourselves anti relative Second PRA and we Juan, anti

say, honest. it's part, too early to first be probably the On to absolutely

maybe can more and an minimum we based say get, non-Irish we are agreed if the peers chances company as see are public do The global what is course, that will now, than savings benefit thinking. that of tax because they Of different. currently tax proportion result than as that -- move of will rate, still we in still even will -- rates larger like, probably a ICON proportionally our up be effectively, albeit we're might still you they're are if possibly from or efficient be be, saving, where

course, what still a before there's As about what lot we're That's working the run, of starts work you that's to that to thinking geographies change. long still towards. know, be we're of says. legislation the and And, XX% of for a lot going

tax a as time that to minimum So, continue denial in goes certainly with to work by. rate with global that we'll

Juan Avendano

Thank you.

Operator

of the your Please Your comes next Nissen from question Vela ask line from [ph] Mizuho. question.

Ann Hynes

Hi. Can you hear me?

Brendan Brennan

Yes. Yep.

Ann Hynes

Ann Hynes. It's Sorry.

that. about Sorry

company? of Just missed but the did a might've combined combined you question. X/XX/XX a I both as backlog this, provide for

Brendan Brennan

full No. Not, a a past. have the on report our basis because Ann, contract not yet in have we'll that. And XXX think the at included looking way right to the to about basis. -- have have PRA -- not on would just value guys obviously what's do we're obviously would mainly -- We that

that time. our sheets you we know, closing be, still and probably that, of our bit the we're will Ann, about end at -- So, takes of balance a as talking

still we're QX on we'll So, on opening and process closing to have working an reconciliation that call. that -- for you have we'll the

Ann Hynes

so And getting the you can just about some other wage talk checks maybe shifting environment very but tighter. bridge of you're any I pressure strong, -- talk CRAs, my like the with about environment, Okay. environment's like especially know Can then, to can pressure environment, the much the is suggest -- demand recent just supply and you CRAs with you seeing?

Steve Cutler

Yeah. America, focal Sure, tighter. North Particularly points. the in parts is the Ann. probably Yeah. certain of It getting world,

good in an think world, parts much Europe's other as issue. so the The shape. of we're of I not

issue. other the to of place. focus tightening is to a clinical where a but Asia manner more increasing. And that promote is much call, And in an people new role, sort North train well, on and trial a in the to to is. and are you America bringing truly salaries of we not to good putting America of number timely And of really all as bit stuff. yeah, in things so bring focus are -- has in them guys in assistant little that new of a people that are graduates the more in sort Latin put alluded we're who doing earlier

hot at strong But a it's to from point fairly the of -- things from lot to of sort that demand fairly a there's and So, say view. market attenuate pressure. of as limit I or we're moment, doing that a

Ann Hynes

now assume companies? about have All PRA, right. those numbers talk comp yet? and with amortization the we stock expense you Do you're earnings just combined And one non-GAAP for know last what can question, you should doing I for

Brendan Brennan

that probably you XXXs, amortization that in significant somewhere, basis. quarter. as for like to in is be going give on granularity ballpark XXX next be account. the going the of the It's probably in obviously more It'll the of to The P&L annual in bit. running a pretty on We'll be an a number

Ann Hynes

Okay.

Brendan Brennan

stock of hump probably excess be million the will an $XXX mark. the And just

control mark million in change a probably [ph] contracts. of provisions and little kind $XXX XXX the to -- a of in of some as $XXX that's the So, albeit, the of million elevated and year yeah, this bit result

numbers So, just on with. clarity but better work you are of kind you to give those we'll a ballparks that, broad for

Ann Hynes

right. All so much. Thanks Great.

Operator

Your ask Dan last question. Fargo. Leonard from comes question line Wells of the from your Please

Dan Leonard

you. Thank

couple clarifications. a Just of

have on patient over off, in any changes from site enroll four variants trials, you worldwide First COVID weeks? to past clinical to the seen or six impacts willingness even availability,

Steve Cutler

the in back we of would -- of COVID. interpreting thought Dan, impact go. of not And we're of from some that if you're actually terms terms be into where asking. even patients bit having We question, to developing seem But as months And the few XX% about a of makes that more silly might before of to to about on we end. there. mark is We it to get availability, -- the a Site because keep quite sites I your hope, XX% -- think have generally be sites a question to having We recruitment top, this see It's point the I'm but sort no. trials, sort there. a of seems approaching towards, sigmoidal winter pandemic I moving XX% or still we certainly that of want that's sense. do any of now in kind curve, the it

right it's we're think I but some the direction, in impact. still moving

Dan Leonard

my there I comp That's Thank there's And follow-up, exact know as you said from a cliff, but tough you. to then trying Yeah. about trials. framing vaccine was I'm the COVID COVID question. XXXX, think no

does XXXX beyond a comment the revenue of normalized is single that high when you of digit year, consider XXXX a So, for full PRA inclusive work? does bump that more to apply of CAGR, the your or trial base COVID

Steve Cutler

think days. Dan, sort a we above well, digits, and someday. think, easily, the those through around more of these we sort normal, maybe we -- I business the X%, is X%, to little believe around high sorts -- sustain obligations And as not or probably single But X%, see we're be than is that being, market but certainly back maybe whatever basis. we that going that latter. fulfill the proposals. that's to significantly post-COVID what will Maybe through the we'll of into the think long-term higher this easily be we -- cadence more get a can on but think I fulfill we can can a of normal at

Dan Leonard

it. clarification. Thanks Got for the

Steve Cutler

right. All Okay.

of demonstrating growth. terms and times a for today. have listening progress future strong to and platform in new pleased certainly for another continuing exciting So, representing at us to delivered these strong like everyone we're closing for ICON, are thank remarks, the is I'd There quarter, --

continuing recognize also intelligence all have and great our CRM. quarter. you the our day. all clinical the We of healthcare creation to past opportunity world's them thank Thank and the to efforts to look want integration entire take leading and forward the finally, to their for workforce and I a And over

Operator

participating. call our for concludes This you Thank for today.

now You may disconnect.

ICON Public Limited (ICLR) 22 Jul 212021 Q2 Earnings call transcript