IQV - Earnings call transcript Q4 2018

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the IQVIA Fourth Quarter 2018 Earnings Conference Call.

During the presentation all participants will be in a listen-only mode.

As a reminder, this conference is being recorded Thursday, February 14, 2019. I would now like to turn the conference over to Andrew Markwick, Vice President, Investor Relations. ahead. go Please

Andrew Markwick

Executive IQVIA Good Counsel; fourth Analysis. Alison. are Thank the for Senior today Vice Mike you is who Bousbib, Officer; member Chief Thank Sherbet, Nick Eric XXXX morning, of Investor Childs, Vice earnings has team years us just Investor over President, our Executive markets IR. a McDonnell, of Officer; in Director, with extensive Executive quarter joined Financial and and today Relations. President Jen call. joining and experience, Also Chairman Financial General here you, experience in President Planning the Halchak, Chief Relations and everyone. with Jennifer XX Vice and new With Ari me capital Senior working

presentation and will about our Relations website she during of you. We this call Jen, know and forward working Investor of referencing team IQVIA be be for This the that will our the joining a on this with Presentations I to excited those presentation be on section Events visible at of Today webcast. all following call looking is available will you are ir.iqvia.com. we also

on with changes Securities Form impact report SEC the in the listeners begin, statements, due statements. business, to revenue including call to filings risks that Before to the or uncertainties with during forward-looking by are including subsequent differ Commission, stated implied results information and like our I materially management we and could standards, the will discussed by would Actual certain of discussed filings. forward-looking recognition the caution Company’s the this include from associated those and XX-K Company’s Exchange annual accounting which

A would presentation. and now the call and discuss press GAAP certain GAAP. and non-GAAP over is a this these financial in like the not of Chairman a call In to substitute measures, included turn to supplement call, which addition, accordance measures conference Bousbib. on in our financial I release the with for should reconciliation comparable prepared be considered Ari measures we measures to CEO, will non-GAAP

Ari Bousbib

Thank you, our XXXX and for you earnings morning Thank quarter call. good Andrew, fourth everyone. joining

We review at quarter, for I'm financial consistent or a the report solid year end that XXXX. another to pleased and financial XXXX had guidance closed provide we high how we capping IQVIA. again, at targets. operating will results reported we strong above our of Once performance

a less this revenue, expected technology perspective. currency. growth. a than with to the $X.XXX our Let's the an of constant was little billion organic in over analytics segment higher currency review XX.X%, range, constant guidance the and over From On and our midpoint half R&D associated range, segments, constant of Fourth was at the Relative growth above rates organic our pass-through guidance the numbers. quarter solutions revenue basis, was a than of resulting growth X%. and both driven revenue in of by Technology of currency acceleration by analytics an X.X%. came driven and grew beat growth half organic revenue revenue

organic will growth this this consistent note historical our segment. a of represents X% growth You rate acceleration significant in

Which business other expect commercial growth was year-end organic an by in Also into strong driven beyond. solid momentum continue which several revenue constant from X% expected was real grew double-digit the our of for tech-businesses is our and We anniversary in demand M&A contribution R&D have of the this marked we XXXX. XXXX X.X% currency, performance why organic. This tempered solutions world sequentially. growth has we higher to offerings. acquired at quarter, and the during than

medical business, rate third book reflects anticipated, pace quarter constant to was than helping acceleration about of the rate, quarter. X.X% brought growth at through we end growth was Fourth in a execute which currency. faster organic You represents our business new of will the significant early rate to core a the note unique turn R&D expected. With and faster performance of acceleration the R&D at at a contract than high also contributed team existing the growth pass-through business, sales in down at growth. originally quarter, the our of parts acceleration business, X% growth winning extremely had of to The these which in revenue approach constant resulting currency an we signs in of This revenue strong revenue enabled strong the the our has our and segments. had from in solutions organic

help and XXXX, XXXX, Since our platform, previously In our December the over currently XXX OCE progress pipeline Nordisk. Customer With sales Versus of growth the for operational stabilization had like midpoint Adjusted active beat seeing adjusted some XX the opportunities technology, of $X.XX turnaround to end grew recap which in XXXX are driven EBITDA end Smart a currently the guidance of more competitive have team the EBITDA as been and this launched countries. through business, in solid decline during Orchestrated and our our we platform deployed and announced We I the beyond. range take including the $XXX end our XX% third was the expected we currency. diluted guidance guidance also with the at was both Adjusted in engaged we contracts with was leads. than high XXX and drive early or wins, would have, over in XX,XXX live at in constant Engagement million of of XX%. X.X% is our users is to of Roche quarter. over than being of of OCE stronger of and high performance. and going diluted grew the Novo significant we the range at EPS key tool range, minute CRM entirely on our made had accomplishments and will adjusted by signs a product. EPS

you an clinical of know, sales and OCE aim technology powered Health by is on partnership, Force.com the the suite force to we expansion integrated we as Cloud of platform. announced As our build

For, example.

our Virtual Trial is see increasing transformative as We in built to diverse levels this to as reach Cloud. already recruit clinical market research participation sponsor live we which increasing Health leverage bring on have to we ultimately technology interest, platform Hub, of Study and difficult clients, We help patients, patients. directly the

safety our also platform, in have may for the regulatory Cloud, seen build XXXX. first You we also our go and which of releases Health on half press recent live

do space. the report on to solid OCE the world builds CRO our real success standard As stay further clinical our tuned we closed not with In development organic world, revenue is together what of numbers technology the real growth industry, platform, numbers. clinical for double-digit year team the our with updates the in in we contrary

Solutions has included So unlike our The is into in infusing data research. growth R&D significant world business our by growth. to team not in XXXX industry smartly peers, success and continues had real business shape the

has For of XXXX. number study example, team wins during single-arm for a the

world You this the will the recall, of we arm approach, study. real single-arm where results clients is use data an benchmark to innovative a

clinical important make whole-genome the We collaboration will with linked largest that England, of pool world's also for Genomics research. sequence an data available signed

with has team by research now unique XX medicine. real Genomics and that a overall to employing Across data partial contracted genomes such world wins. focus patients genomic annually, people England speak our scalable another snippets DNA, know, sequence. about greater to whole companies As globally. you genomic in The the when commercial as is of access resulting XXX or sequence, solutions, board, sets data, your analyze world healthcare they new R&D all real continued efficient that link have over a more and which closed non-identified patient's accelerate technology personalized of very much Alongside will this to record records received novel granular and quarter and of We the machine business drug scale a this genomic novel strong creates complete more platform, on they bookings. sets. the billion data. and had faster approach to We year clinical over analytics EXXX our expensive the de-identification million record, usually data XXXX business, learning

in over the Bookings Our strength fourth business, net of cylinders. news was the We quarter bookings fourth good which segments. for excluding contracted on book-to-bill engine is the saw quarter was to across the R&D resulted a billion, that is compared $X.X X.X And quarter. growth all XX% XXXX. new all pass-through of firing

business, marketplace. bulk bookings was over now not continued for bookings. full where to new our of as with XX%. in If include From business pass-through. billion to segment our bookings of small also in you are of increasingly still you a still which make XX%. we the of in from over accelerate comeback Solutions, know, at over of of which billion, We a year-over-year backlog is you offering growth, pharma EBP with a XX% the clinical, have of growth rationale full-year functional this bookings look Solutions comprise R&D over it's itself $X.XX when strategic customer overall $XX to The perspective, need was which bookings contracted part segment XX%. service be strength growth still growth product provider majority still is R&D and bookings. proving net we representing trying saw in, the our a quarter. The The merger grew lab the over strong, It bookings XX%. particular we perspective, grew large represents our

we has with large over gross core that can XX,XXX offering over drive about be used in the been And alone, It Smart this our Automation pipeline, from associated XXXX, next analytics indications gaining have automated quarter to this yet when to analytics, proportion bookings. XXX one-third supposed our core libraries this of in million, be generate smart pharma team less our Today about We we the we shelf. introduced exited awards XXX operation. than now resulting to XX,XXX XXXX. total enabled core for as offering gone plan another XX% trials scale total, $XXX enabled pharma differentiated generation for sales in we we development smart which of at in As of countries operation, weeks. XX%, smart nearly quarter. over has that increasing representing The than applied over to trials. X,XXX enrolled we trials of this next represents covering our key analytical In of revenue. the more XX enabled in XXX analytics excludes to can patients to of Trial to has sites. The team has pass-through generation use trials our having automated in R&D business of strong new XX% built have clinical an minutes,

of our will for of recruitment next the underlying smart XX% generation of capabilities. patient again, these power global the United outside over fact, Once In place trials, the States. take

new win Additionally, and see more. our we more, call, strategy consistent with which post-merger, go-to-market

have in RFP XXX We through year. more general, XX% in and new during business seen XXXX, clinical the volume than clients more the we won space with than increase

we won in contracts Importantly, pharma five significant that has the R&D not with team many done years. business with accounts large

more. are winning are seeing more we clearly We and

benefits come Our of to differentiated sponsors highly realize the capabilities. our

XXX XXXX in expected over to grow note, The we launched in approaches remains clinical XXXX. to of data, that closed the years. use clinical growing FDA number high next as the total development, continues and years. will an at to up address in we XX and compared five five Science the grow, healthy. to continues The of strong support XX in approved up and The mid-single XXXX. we the and to pipeline IQVIA digits risk. XX% analytics molecules look institutes, the next molecular on years, be is Now, to XX% accelerate markets the late-stage clinical The the regulatory Life R&D specifically a estimate drugs development activities all-time reduce technology XXXX, with to five industry last XXXX development FDA over new innovative from entities

clinical of healthy. our In is fact, science, remains space. Pharma current innovative from programs. the recent data to client secondary and the finally, continue announcements FDA on research in bullish the And research support commentary from base real-world use the

drive in funding. R&D efficiencies, allow commercial Our growth SG&A to for clients through continue to outsourcing increased

disruptor Chief Our side, is it but it's currently major clients development pricing is And is than Mike their also industry me backdrop Financial a clear, turn and these the compelling ever our acknowledge under it better scrutiny the very clinical dynamics. to don't let initiatives. that anticipate Taking over positioned on this this on a IQVIA capitalize with that commercial become to Officer. to McDonnell, to together, for

Mike McDonnell

good and Ari you morning Thank everyone.

sales and at of grew at FX constant at billion X.X% FX the billion, Fourth medical Contract $X.XXX rates now rates at $X.XXX details. financials million XX.X% at quarter, constant declined currency. $X.XXX revenue XX.X% $X.XXX X.X% X.X% million As solutions revenue of Contract grew seen, we of of and Full-year and billion full-year at currency. X.X% of X.X% you of strong sales revenue XX.X% constant R&D constant currency. analytics at XX.X% Full-year at currency. at the constant solutions, would billion solutions billion, $XXX with grew currency. Fourth actual X.X% review revenue $XX.XXX analytics have X.X% and fourth solutions revenue currency. revenue Technology at rates revenue of and solutions $X.XXX of closed Full-year, and quarter declined and at and and reported constant X.X% solutions grew technology grew reported and year quarter X.X% $XXX and revenue R&D and medical actual XX.X% constant X.X% currency. grew reported XX.X% constant reported reported and FX currency. billion actual

quarter EBITDA reported income, XXXX X.X% GAAP expansion reported adjusted constant of now XX.X% $X.XX. $X.XX per quarter and share to offset in XX%. reported bookings net of Fourth tax X.X% fourth quarter Fourth adjusted currency. resulting adjusted earnings business. well by interest both margin at grew the and net R&D Year-over-year of adjusted $XXX quarter our higher million basis. XX%. at adjusted currency, and share grew higher and currency discussed, of grew diluted primarily and billion, earnings partially Turning constant EBITDA on in diluted of profit. GAAP lower of quarter. Fourth net were which adjusted diluted income I had as $X.XXX $XX was XX.X% was XX.X% the adjusted Growth million, just per basis another expense. growth stronger which in year-over-year. grew D&A constant driven $XXX EBITDA points share $X.XX solutions as income grew and Adjusted earnings a per XX share million by count was of We XXXX record was by EBITDA driven Full-year efficiencies,

Let's and team. $X.XXX Contracted record excluding growth review XX% a of new grew XXXX the of representing and now the $XX.XXX almost net pass-through business XXXX year-over-year stands solutions billion, new in net full-year for backlog. XX.X%, Backlog was business, at for billion. R&D

results see of million from of an including backlog next over pass-through. the reminder, pleased which XX of As $X.X as our XXXX. during in We a visibility were we report revenue to backlog XXXX $XXX acceleration in billion revenue months quarter, December XX,

Now equivalents and let's cash resulting cash sheet. At $XX debt the was balance XX, net review billion. million $XX.X about $XXX debt and of totaled billion, December in

the expenditures repurchased Capital $XXX including were stock December. private We our cash our equity in quarter, ratio free gross sponsors of XX of trailing was million million times. Our leverage was Net X.X Cash was during $XXX and flow $XXX from our ratio million. flow quarter. adjusted million fourth leverage operating million from $XXX month X.X times in cash, the EBITDA. $XXX activities was

about have billion is of outstanding. share since our $X.X at average equity increase our XXXX price approved shares , Yesterday, of with $XX.XX. approximately of a remaining us of ownership leaving of Board share authorization repurchases, with billion, repurchase billion. a and of $X private As during XX% billion completed authorization an remaining $X.X by now We the $X an result total executed merger, the repurchases we our

Let's now turn XXXX guidance. to

at some billion worth This in is of the key a the that since guidance against guidance Full-year year. rates based us XXX from foreign It Our foreign currency moved is billion. currency headwind noting XXXX then, have assumes . currencies on beginning points, XX.XXX basis revenue to of $XX.XXX effect

the million approximately FX here today, $XX sit in by key to we has relation increased headwind these as currencies. So

the amortization $X.XX $XXX we items, full-year interest as be line adjusted adjusted For minority and and interest diluted of billion between such EPS depreciation and assumes to our at to profit, the year. expect XX% adjusted $XX for guidance share book EBITDA Again, below this $X.XX. and Tax million for approximately assumes are rate. continuation $XXX approximately of of and adjusted effect $X.XXX XX% to tax $X.XXX currency cash remain approximately in year beginning of expense billion the The for a expected EPS of tax rest foreign approximately rates rates adjusted the be the guidance diluted the of other between approximately activity. repurchase Operational and expense million, that million. rate be the

analytics Now, and in solutions as as growth technology businesses, acceleration and well solutions we to see revenue the CSMS are in R&D of stabilization excited our an business. our

to a $X.XXX more solutions of XXXX be constant R&D our on between basis. between solutions expected $X.XXX bit and analytics representing to and constant $X.XXX review is a is CSMS revenue expect X% be to Let's be representing about X.X% growth basis. and a X.X% guidance flattish to We technology billion currency million, detail. growth currency $X.XXX on of currently X.X% a billion, constant in revenue revenue representing currency billion, on growth basis. revenue to billion expected $XXX

to to You should is note transition CSMS, the during expected year. growth

company, X.X% total basis approximately than more two-thirds expected revenue this to technology which X.X%, constant of contribution contribution to the growth one-third third points higher, R&D is would the points, told analytics be we time that is be For and little in integration. includes points merger, split to of at merger Solutions. growth in XXX the XXXX of our XXX growth total a acquisition you exiting Recall to XXX solutions year company and basis the revenue basis currency

are integration, there. the as third year we enter Now merger our already of we

earlier faster clinical pace. than enabling acceleration capabilities of number business, at by are expected we a solutions a R&D which and the execution driven opportunities, has team the trial been Smart by our encouraged our of Specifically greater winning

of now first some provide color on quarter you with me the XXXX. Let

the constant at the quarter. of rates Xst, through end remained FX January Assuming

EPS to net delivered growth of between We basis reflecting quarter $X.XXX financial $XXX to and expect revenue about almost billion LTM be of million to and adjusted $X.XX reflecting billion, solutions grew contracted between from million results. services be of $XXX a strong points. be summary, XX.X%. Adjusted $X.XXX new we another headwind and and between $X.XX to XXX XX.X% In EBITDA business FX diluted R&D XX%.

merger. differentiated generation since secured $XXX team development to XXXX awards our awards $X.X $X.X over closed next for Our of or billion, billion of million offerings, the bringing full-year clinical we

merger and share XXXX above delivering are our businesses. million EBITDA and reported constant XX than our We the of and an analytics expanded bringing We growth repurchase adjusted authorization that... $X margins quarter, basis the price the repurchase technology in $XXX on to at our Board authorized another expected post-merger us R&D average total earlier executed $X And with in revenue has to and promise just currency repurchase by expand the accelerate points $XX.XX basis. to billion. of share billion

Ari Bousbib

a on Mike. second Hang

to hard where deliver at to Q&A, of over Before good of. be XXXX. am were we for I feels look we Everyone worked very, our back just all really of that to Frankly, we merger. super couple the really year to want a how performance it in performance can after years ago, proud turn it very incredibly I - just proud team a say the closing

we other years the we returning M&A execute included to share just strategy, XXX - basis year a after that of the and line And strategic the acceleration merger, here are $XXX And by shareholders at to third recall points were we margins three-year our a synergy beginnings. on to $XXX and grow plan looking repurchases. already course target are adjusted we are at for. top-line which on all we well cost points throughout productivity And basis merger to capital to execute were cost that expand You the our accelerate at acceleration diluted our by synergies. and through EPS there set of improvements of growth, the to double-digits to XXX finalizing million to two path exiting beginning revenue looking allocation top out journey, and those and million cash of

hard their thank contribution. So I XX,XXX and again, for more than their want employees work collective to our

and I open heights okay, build You have to our take for continues forward continuing to momentum program and questions. to journey this you the with IQVIA guess, I up to look really new now get as and to back

Mike McDonnell

Yes.

first I we question, operator. please, take think will our

Operator

question you. from [Operator comes of The with proceed. JPMorgan. first Thank Peterson line Tycho Please Instructions]

Tycho Peterson

wondering can sales on contract commentary healthy Thanks, and on color you the know, about BXB. call a a and helping lot and bit bookings more part medical. if provide it the you congrats seems pass-through revenues more on faster just quarter. at Ari, the pace And like of executing some your this also a little on

on So, touch two dynamics well if you would could that helpful. those as be

Ari Bousbib

bit on to try give more on. the questions growth heard a you we color. little and well, bookings We Yes, so our

as So are the to question and we faster, your could really we growing business wanted much pace. to with NextGen provide that understanding capabilities. we at respect our will hopefully as help on really unexpected book-of-business that data a our our With executing

of trials, pass-through faster executing well. faster the technology. That trials, had part recognize really, on we that we revenues a bringing deploy aggregate burn people the through method have are we that, know, growth changed we down revenue revenue the board. pass-through, and of the a to as But one actually because know, because specific the actually higher - growth goes recognition very that is Smart And really are higher as anticipated. see across would revenue difficult the On we we that of why very to we rate. you level mathematically NextGen as rate was on also one-line. focused bookings see use of now we are absent are volume at accelerating where result but time. in bringing than It's a accounting in than report we burn much faster that and trials revenue Because metric very at in You an high it's in the the booking the large aggregate, But accelerating in since see service we it. we executing And rate we that, Trial capabilities. we are it's pass-through fact, And

on I have think, well. the as been the as is as FSP kind the and still, distancing itself our margin clinical mentioned pharma, is company strong bit extremely which weaker, strong on a large from bookings side, of full strong, the majority of as I know, EBP lower mostly you FSP have been bookings, the work.

merger, bookings the obviously are bookings in not and that come declared small this been Before it again, we and segment are our we to some according still But - we we intend part but our making progress. has of it's outstanding. back a there yet. And to

Tycho Peterson

And gives talk you little transitioning underpin back Okay. follow-up, then more this can in [indiscernible]? to bit the What drivers CSMS for just growth a the confidence about you your year. that

Ari Bousbib

on So plan we sometime heartache we that was revenue. business, is didn't in is thought to in a it. to built. of it had what our organized That to flat it for know were XXXX growth we year. year decided quite align make gave kind you operating with The business during the structure the regionally. we But we we and know, transition was very this the separately, where We that inefficient, guidance said, and essentially of going

puts field. relationships our where That makers to the us decision taking And rest work. this local more with decentralized closer approach We is will stronger type unit, regional commercial client the business our offering the for offerings. operating the selling of in this in much a with along are more are of

use a offerings of better the analytics sale the and partner to in We client some the with technology solutions process. opportunity have also and

see beyond, many outlook So the overall, a way in had positive business years. that in in XXXX and we we for haven't

has the double As know, digits. business declining you been

thank you. So Yes,

Tycho Peterson

Okay, thank you.

Andrew Markwick

operator. Thanks

question next on take please. can You

Operator

Muken with proceed. The next of Please question line Ross comes Evercore.

Ross Muken

color. of all highlighted degree has a guess ton where maybe sort OCE in launch implications long-term of think traction are for of that the here, for line you the of eventually of that that of that you to we you does investments allow customer this of you operating what sort what elevated business. will the getting guess, you how in of sustainability technology cadence the the should accelerated maybe be sort that I that as I offering seems do We think you sort Ari, and where I some sales of and long-term in the margin it growth and maybe a scope to the the technology maybe sort and attractive? of first, remind like, then the sort then Thanks is and about are now cost of seeing are quite about to material on are obviously margin rate pretty now growth do of profile rate making that that business. us the for you the piece. get guess, on

Ari Bousbib

initial revenue, thanks phases undeniable correct. know, be comments. high you - and Ross, revenue. which Yes, is your deployment margin for can long-term SaaS once Yes, of business implementation attractiveness is absolutely The margin the this are license deployed expansion That The technology is is costly. and it's essentially

it's do not implementation is a lot ourselves. business, margin content this involved. labor most of We a our So, of

organization. large number. some Roche very contracts, won As you our very a know, big really deal, is which We in it's it's mentioned the big, unprecedented

partners the technology, good been superior generates sustainable, In is our with long-term. to We in and much been clients higher essentially for are very the - know, growth. add, unimpeded. in a partnership very want are That so them large value they clients very long-term, possibility it's margin. and our with fair a a in technology margin in share. to But and And I you as are - are a margins, and business trying it headwind. attractive the investment why and And is claim comeback why an And us is to long-term everything But an want is it you we and we these very would partnership stages, are point initial long-term is be the fundamental who's out, player is ours. once hard dislodge which is it's high, sustainable there very of It's this as are you for we to very been embedding this which we dominant do in and the strategy a very, area. CRM, the making why builds incumbents switching fact costs very, our very struggle for is technology the

Ross Muken

something out on then to of and base. will next of the momentum Thanks going know the terms the on and the I the of runway sustainability obviously where superior in build. think building for up of you the it seeing XX much pharma R&D of that. it there, your you of And what you in of a base. that renormalizes to side how maybe business a Biotech industry, have continuing have you and even it's put maybe back back you that off we the sort base this you done lengthen maybe share of bookings out, kind of taken as means in or guess you feel business level the sort months. the guess, are feels average sort not continues on general, versus better of proving what are think structural Yes, of the sort to just do about like, still a to low like months, mass lead feel business. then lot step-up amount peer to like share are over you outperformance the you from the the the peer group advantage, versus XX I taking but But

Ari Bousbib

not is normalizing term know culturally. I you mean, a I like that Yes,

my is remarks we out time what there accelerate that we mentioned industry, That any is do we is are of So of and very looking big here. to is momentum. in are about, I no There are the - what believe normalization no, no, in the a introductory fundamentals market point we attractive. there. is there looking are

market at globally. precise that rigorous shares. the R&D look analytical make we we whole small-medium, what with being the is what really internal, Secondly, size is the external market sense of CROs, as whether is the spent a market with can't spend care don't is a in really I and

know, you our And share, here. there ratios, share I bookings, market are conclude even is not a ignore hard the of book-to-bill by far. think to our the very though then a it's move very, that largest we significant market size

it don't publicly Not going is is bookings every disclosed that. same from manner. is competitor different People the way. I'm what lump not everything being to in speculate taken not a We know, Now - trading.

same, account bookings, been way same we and the it's for changed haven't the our We forever. it's the

there contracted other the consistently is basis, the applied, it's which it's at consistently the conservative, is applied. to more we change, no made other as than a So to switching change merger, which awarded we than but basis, just believe was that, opposed

clinical. of our And each and wallet every the we domestic, FSP, and spend biotech, clients. just to global, with pharma, spend, share so share large aggregate We looking buy our are customer of full increase in at look

program then, top large We we companies. locked And I over But territory whatever it XXXX we mentioned, accounts think five since the XXX we on and we can in many business previously, was Again are And that not shift. is market XX the and the alone the we centralized, to That significant. so moves. clients, that the do no management new also we you there had mentioned segment got numbers, merger pharma account is a that times I have on of. with business of specifics hard I And have now have it's that pharma, among many unified of share a didn't lot clients continue mentioned strategy. at, looking I are that with out didn't the will that doing called, ignore stunned large before. it's hard to and ignore

Ross Muken

and Thanks so congrats. much

Ari Bousbib

Thank you.

Andrew Markwick

the take operator. question Thank We you. next please

Operator

of Please proceed. comes The question Meehan Jack Barclays. with next line

Jack Meehan

on you. pleased see Hi, you XXXX, cultural initiatives things color R&D is that I more to bit walk on versus side expansion. thanks. was some I little margin on some could going TAS the side. us know for give you But to the through for the could have progression streamline hoping of the the you And investments a if of just

those Just would pieces moving helpful. be

Ari Bousbib

always growth will the rate more you we you, Thank do Like take Jack. over Look for margin math you. faster Yes. expansion.

equal, that, expand again, is a margins. it and a grow more, margin. Having to accelerate faster everything growth said want our said We You we a point will to a both. a also to and point, say repeatedly worth I want it I value more being want we revenue know have and our point that do else lot of of than growth

where the be times quarter Now no quarter there But continue could margins. margin will be expansion. expand out, or be when to it will us, a may in our there trends for be to

and Investments are investments when and orchestrated be People patient in Investments nation we means Roche very Investments mentioned XX,XXX investments XXXX. and the in over aggregation merger I about at have we million large now virtual people, at resources, Smart suite the level we other launching many Trial have. EXXX, we platforms what products is, lives. data. are of automation the platform, you OCE in it of people merger have Now some to wins in or in in in business, OCT all I the in and of wins in with like investments we that the started technology, Nordisk XXX the clinical talked of growth. additional the these Novo terms back that NextGen, that launching - in will the deploying for trials, doing have XXX look more. we step we since business been of support XX,XXX the think sourcing

demand. emerging in different We technology a high are compensation of of also in assets, in high areas, makeup specialty skill set much in scientists are very higher markets. people, sales data who population, recruiting in levels, demand, Investing

of who those and So capitalized. to , would well look what initial are resources anyone lot again, of that that - Very means. a be of at little investments served

a merger. carrying development are is from Our to expenses software and degree, core redundant the still we

to integration, systems two cases, not in is some in That over. programs systems got have that parallel, We still forces carry

the We dedicated to are resources cannot merger that having are and et cetera. we capitalize that

should in So margins of have we gone that margin haven't looking should XX of anyone, down basis accept normally, XXXX. at expansion they all points that,

are So in the already those continue we of to investments that, accelerate fruits as I seeing and we suggest would XXXX, earlier anticipated. than

we to that. cases margins, how these do downs long-term ups to little continue losses. Obviously, margin will Why because with headwind. headwind that the come we always investments will be mention trend in there will some and these I or margin able to acquisitions. think, are omitted they have I our profit be expansion. all and and Despite invest, very zero, the in but

that So containments. all all actually that able is headwinds. cost is expansion Why of been on overcome have we headwind as are margin you generate focused and said culturally, because, we to

company the in a are culture. We we merger and from lean the instilling are generating the synergies

Kaizen-ing every are process. We

continue We margin can we And better, reviewing looking we them can into to well our future. organization do expansion are transforming how things. machine really faster, how the that at do deliver to execution and smarter lean

Jack Meehan

for the detail. Thanks all

Ari Bousbib

you. Thank

Andrew Markwick

please. can Operator, take you Jack. Thanks, question next the

Operator

of next the Your proceed. with from Please line comes Rosenbaum Stifel. question Shlomo a

Shlomo Rosenbaum

business focus you Hi, XXXX. much. platform. very you thank Are I big the a OCE on a won lot end know, the it of of at was

XXXX kind you You had the you that - along or of area far kind cycle How see continue are of get. market to renewal could XXXX? mentioned cycle? share should the more felt gain company of cycle of belong company the wanted kind at level or what this this software a time there recapture of wins to we contract that, in into a and the was of where or And in more we

Ari Bousbib

Thanks, Shlomo.

introductory that now these Virtually very, my call accounts, took we client a a Thank We won IQ, renewal head-to-head explain provider. provide the just organizing to it, a be about to and OCE it's to answer with the favorable initiative Actually, leads. of record here to sales so. - active look, every a pipeline, The it's send entrench over - is our right to a I bouquet mentioned of with that. and I cycle, on was little experience XX for to we ones. and respect that XXX it it two difficult top before, didn't investors, to because you question, for And your Before know able of on is I over few remove you wanted I hard large have even that technology single remarks outstanding including competition. get mentioned you one investor very and . their quite in

is As you all high, are not deterred very difficult. platform and switching are know, any or The any that. costs in technology ERP by but we application

We market. good are in out to we to prospects to a fair continue share win going that have that find

to is believe is used that field and share big gain is be opportunity. a clinical out of automated, where need field opportunity, there to to also our others fighting not can only realize mentioned that a observe we renewal bigger a the lot on are there. cycle. This we of capabilities. superior We we beyond a processes with intensive We labor paper, CRM, That where OCT it's side, no the fair currently But emerging well lot because market a out as will ones and that of be it technology

are we very yes, on So bullish technology.

really time and have for the been board. the it's longest across We

you. thank So,

Shlomo Rosenbaum

get follow-up. If I a can

through where Just you on the is of can give hint will wins. getting how us seems - - are you kind touching expansion, a Is but I go a a Is to some you to there there about. it deployments was to a have take? of - before, the the deploy long XXXX you know for before we someone long way that know, through How think despite this margin think instead like I significant these XX 'XX. start that margin halfway being investments just as to talked to these material should about going is really more they headwind? contribution expansion investments in actually

Ari Bousbib

they some We in to supposed space, that the global, we they look, four, years. they competitor are X.X one main, the countries cases you are implementation of be year, or some Yes, this contract, I this take have know five mean brought know still big after were in can in. the - is years, deploying when the dominant

deploy believe, the can at technology. of I rate. That we rate, advantages our deploy of is faster We a at can advantage. one believe competitive a Now we the faster main

the plus business. years, implementation. all we - So this finish these winning hope In one But it's continue. We X.X again, win implementation going words, to will a we because year, for XX other is just still wins. to the

more continue offsets manageable we hopefully revenue our we it deployed than when then associated time, So the is to already a new the implementation the becomes - have will headwind but implementations. software all That have can margins with and to

Shlomo Rosenbaum

earlier. for you the shadowed thank And Okay.

Ari Bousbib

you. Thank

Andrew Markwick

Thanks, Shlomo. question, take please, next We our operator.

Operator

The proceed. Please next question the comes Eric line with Baird. from Coldwell of

Eric Coldwell

and very thanks much morning. good Hi,

so have I divert I'm to could going a hit things many So here, but on I different little...

Ari Bousbib

we to Because many numbers you give dissect there. too

Eric Coldwell

Yes.

are - filibustering morning no, this us all good. You it's

doesn't commercial one. a market, you ton CSMS, things working get it. side attention I'm consistent since positive hearing that of you So the But day sales market. and that very are the the contract rejuvenating been of more on to division, have in looking on

in pipeline if I think probably seeing color me salesforce US two the to for things, rumor love contract sure. get more growth yell least are second engagement the but half, could would a think, better sales returns peers it that why big year. seeing straight you you talk to on what little at wins? curious at will I you about you are just your on decent heard little pretty in the and I want I'm a offline, this a you

Ari Bousbib

the as business positive impact to of you When you stabilization head the growth. compare business look which to peers, is our showing Look XXXX. into signs at pleased we that are we mix, can have - mix, geographic CSMS our again service

For has Japan Japan. of none a is have we in and actually competitive No, fact, Japanese anywhere as our position in declining. to Japan. And been been example market what are we leading in near well-known very has a strong position peers the has

and as have also Europe Certain skewed So to an therefore, in headwind. America as their North business as are a peers markets our impacted is had been example. not more Europe

largest is Japan exposed not competitor those less or Europe. the markets, either Some exposed to of competitors, our US

mix. If you at the service look

communications, et cetera. toward with more peers CSO weighed CSO And MSLs the traditional are of both salesforce. of mix services, services, a along contract consulting, type We have legacy

a of is at and look contract are what you better the bag, dogs, some If of in doing it's than sales. which cats lot actually

hard it's peers to to us exactly. compare So

the peers done space. our in so have And M&A

we from standpoint. started basically, that haven't, We business the

sales, all the reasons, therefore and That peers of to pure so got - very there, it's it's our not in M&A, numbers, is also of compare without done we because stuff geographic, they've growth difficult those And kind rates haven't. clouds they've mix, really contract product

were said are that. say business, do that that, you to going have the having told we we correct to we you So reenergized

hopefully is it. Our And to and what to tell practice we are is do what we That you do done. to going have

we very to transparent, are have business that you and take we are going to regions. told We give it the

executive outstanding legacy, strong P&L incentivized We they and really their into very management, leaders it organizational regional operating structures have IMS rate. that operating are and to make We took are they it ownership stuck work.

business, to So transition spend as which here. the stabilize hopefully, And decline we to to needed we the and are, are are then going we we doing. growth

businesses We see have where we got like some land. would the good aggressive we stretch to and plans. We

than look favorably, are better a at you what but that, would little guidance gave are do That now, we be is we flat we if that great, and correct. for we be can growth looking but revenue So to

are winning a more. little bit We

it. you. stronger you Thank We Thank a ever decent much than don't some We have the enough talk bringing about Thank you. we business. other had. pipeline, wins. have good And we for got

Andrew Markwick

we if can. running would very to but in like just I we out Ari. think Thanks, of I Operator, are more quick one maybe squeeze question time, and try

Operator

line with comes Robert question of next The Sure. Please Jones proceed. Goldman Sachs.

Robert Jones

in. for sneaking Thanks me Great.

curious well, in as competitive are you you it's pinpoint, to like difficult across but market You from gains both, not have the the winning? seen what from that healthy know, the Ari, you I I'm end going know, seen have the been as from change it's any Have share a emerging just, landscape you in. RFPs that just in whether seems those or more appreciate from is with but only behavior reaction pharma, traction large strength biotech head-to-head

Ari Bousbib

know, at looking do. what look, you then is we I don't they time lot they would I time spend we we can do, looking spend a more at tell are what

doesn't know, you our be because Initially them to then losing those bucket do. totally technology data booking talked healthy our it different of it whatever matter, real it have you to we I about matter, was not one are And continue approach. is, was have into we good competition, more we to a competition. that got all strategy. they doesn't than got you And people, It's our competitors about we hard it's so group have really dismissive to respect are stuff, of

We a have very got they lot what in are that of do. players good

Our approach is just different.

V in you are technology, the we most XXX on what we delivering world capabilities analytics, on time we whether capabilities knowledge across those that markets. assets, Vision of what will next close and our different the other therapeutic and stages and three of the goals. that We are the mid-term And our journey, machine XXXX, our XXXX. of all leveraging meaning finalizing merger, advanced leg basis the combined internally early believe unmatched that XXXX we no That happen across we one bring side, do do information importantly a are areas gave to. promise We commercial a comes unparalleled, that which those very XXXX, leverage is strategy, year period on customers, call do. the and we everything of strategy XXXX in people that in it's unique - real capabilities domain - than the we to At global in learning on

give to of - would Day. our are we year, XXXX, us XXXX what position down our we Investor the pin you We three strategic for like the journey and hope be year timeframe. to in invite you our to plans Well, trying are a this next the dates. to are, join the all objectives to for Sometime

it Mike and and to your usual. I'm with calls So follow-up Thank Andrew and that you. for obviously going conclude. call. And a longer be for patience will as you Jennifer available all Thank was

Andrew Markwick

for Thanks you. will we today follow-up first the have. speaking up and you to look I again to and taking any us everyone. rest call. on Jen you day be join you, quarter earnings to of for XXXX forward the Thank time with questions take available Thank

Operator

that you line. please today. We conclude that and does ask Ladies and the your for participation conference for thank disconnect your you gentlemen, call

IQVIA (IQV) 14 Feb 192018 Q4 Earnings call transcript