IQV - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the IQVIA Fourth Quarter 2019 Earnings Conference Call.

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

As a reminder this conference is being recorded, Wednesday, February 12th, 2020.

I would now like to turn the conference over to Andrew Markwick, Senior Vice President, Investor Relations and Treasury. ahead. go Please

Andrew Markwick

Officer; Relations. Good President fourth Pama. Senior Analysis; With Investor Thank for Senior Eric Financial Chief you today and President Vice Thank Financial Vice General Chief and morning Jen Counsel; full and Director our Officer; Executive and Chairman quarter Ari Executive call. and McDonnell, year joining Halchak, Executive are President Vice you, Sherbet, Bousbib, everyone. Michael and XXXX Planning me Charles, earnings Nick

Today, a those visible you following presentation referencing IQVIA the we'll this on during Relations our be of on also Investor This be be Events website will that presentation section ir.iqvia.com. and webcast. call available of for call will Presentations this our at

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

GAAP which considered reconciliation of non-GAAP these certain measures addition will is accordance A conference GAAP. for, in in measures we comparable call with included release a In and discuss financial non-GAAP a and substitute to on should this not financial the to, call, presentation. be supplement measures the press prepared measures

Chairman the over our CEO, like and Ari turn now Bousbib. to call would I to

Ari Bousbib

where our XXXX XXXX fourth morning how everyone. good year you financial we quarter call for and guidance provide will full and closed XXXX. review Andrew joining for we earnings you, and Thank Thank

have had XXXX know, we our quarters since am delivered We've EPS at expectations. closed. XX merger As revenue, of above program. or pleased and final And three-year that I consistently EBITDA, marks merger year integration our you the

guidance detail. more currency on $X.XXX reported recent $XX was review the came quarter in above Let's Fourth Revenue constant in million basis on billion our of X.X% quarter most a basis. this range. of growth revenue X.X% end and a high

would take and X.X% XXXX at or constant back exited was told during growth growth this be at basis revenue average integration. X.X% as the merger XXX And third our XXX know merger, look at on we higher of you exiting the points our that company currency performance, we our achieved we merger at third of on the total X.X% to grew Recall If a we year time the of integration. revenue basis. a you year three-year

Full organic an of on and over currency Mike basis will grew year later. revenue revenue currency X% an constant almost constant see XXXX. rate to more into this strong compared points X% provide We of basis. XXXX topline growth organic XXX growth and at That details acceleration billion $XX.XXX continuing well represents XXXX

quarter, a revenue the Solutions X% perspective, Analytics & at Technology to Back constant currency. segment from grew

as well Analytics our This performance contribution a strong moderated as the was As sequentially. Solutions result expected, QX of & Technology lower unusually M&A. growth from organic slightly

X% organic historic the Technology of well is days will which trend which the from at over IMS X.X% & some growth be range. was Solutions precise -- But recall despite this, X% Analytics above in more came the to in you

in So, acceleration. segment, significant this

currency. R&D solutions revenue grew X.X% at constant

rate, pre-merger acceleration just organic services basis representing services contribution of approximately points, XXX growth which also on be M&A and last And of XXX constant the an significant versus pass-throughs exactly currency quarter. services a growth would growth quarter in basis in the R&DS to points under XX%, you higher organic told we of was basis fact, accelerated impact adjusting for the fourth that approximately X%. Now, organic a

a turned & Sales currency continues Contract Medical that in X.X% quarter. has Solutions on demonstrate basis a constant corner, it the growing to

but fourth year. Now an undoubtedly would you, it strong was comparison easy remind last also performance, quarter I this very against is

We expect very forward. CSMS maintain to modest growth going

Fourth in margins EBITDA in in continued quarter expand quarter. to $XXX adjusted adjusted the at that million, EBITDA resulting came

investments know, which you talent technology go-to-market clinical very also wins, tech we've of deploying We've our dilutive in tech As all been in a impact companies acquiring developing offerings, margins. making technology and been all resources. the commercial and on our active of and have

are this very results. context, pleased we with in So our

the you at range our take results Fourth quarter operational financial grew adjusted I'd and of guidance These like XXXX and driven $X.XX EPS achievements. milestones. our were of by strong through diluted XX%. high operating some of achievements to was end numerous

XXXX gained to OCE XX deals have was the full to new We OCE deserved in a market. XX post earning traction in in pivotal year launch. seats deploy. business. compared was significant first which now won XXXX, contracted almost for credibility XXXX year our We XX,XXX the technology

We have superior the four top XX adopt platform. pharma have clients, decision our who made to

several complete is underway are Asia. With we rollout digital deployment for is that to well the successful delivery, deployment Roche's accelerate to working feedback very enable has been The globally Roche in Nordisk Our Novo countries and worldwide with strategy. positive.

excited Additionally, seen our as first start U.S. large in deployment one for AstraZeneca business you've to we OCE. U.S. are

I want we During today progress Trials. highlight clinical in our XXXX, space, investment ramped to in also Virtual technology the our and

Salesforce's key Hub built the several on in delivery market and basis recall on on studies global success a will all in Health now Virtual We're transformative Trial scalable our having Study executing technology this is a SaaS Cloud. model. with geographies. that technology We're platform You

multiple areas, form of can or traditional a including and Virtual few. Trial combination a digital either Studies a oncology, Virtual study full name both the execution Trial. CNS, span the of therapeutic therapeutics and to take And

and in a premier ourselves this Virtual as have space into pipeline have strong We going XXXX. a provider established Trials in

selected over Roche to engagements real-world, real-world a with next in build Company continue preferred years. provider over were the real-world In position by as we our the market. Pharma XX We already leading five

license FDA-approved company an extension helped also for oncology real-world arm. the a We using obtained, an pharma product top comparator XX

technology analytics. The to patented real-world advance, in rich our enhancements linked will use has real-world to data research to globally. patient rich of continue data platforms, our Genomics to genomic XXX through assets, EXXX team the space clinical continues non-identified to patients invest million non-identified grown we in now which the which lastly, And make

Moving to R&D.

ratio quarter, basis the on including For pass-throughs. our both X.XX a fourth services was book-to-bill and

For the full was X.XX. year, our book-to-bill the book-to-bill was And including pass-throughs, services X.XX.

Our record backlog at a of the year was billion. end the $XX

million further won clients Our space by from with in we next $XXX increased XXXX, new XX clinical months In $X.X billion. backlog over year. revenue business XXX well the a the during to

previously. preferred XX top Importantly, with provider clients been that we two pharma had agreements locked captured out

more as sponsors and realize to winning are differentiated come capabilities. of our the benefits more We trials clearly highly seeing

our fact to drive CORE-powered new In business Smart wins. trial continues offering

business we to site quarter, pharma and excluding million Today, to the trial the speed of top XX identification increase Smart pass-throughs. approach CORE-powered $XXX over are During trial XX up patient companies improve using recruitment. design our of were awarded to CORE-powered

have we speak, XXX patients. As than trials Smart in we over operation, more enrolling XXX,XXX

to XX% with like the pipeline a with activity molecules the words all-time R&D just environment. few to an development high is about growing late-stage business in total continues XXXX. grow at Finally, say of in clinical number

FDA average over XX has approved three last On drugs. the years, the new

patients. to for spend clinical turn complex recruiting has Importantly, of and running increasingly companies in penetration to expertise as addressable grown increasingly trials almost CROs outsourcing find pharma XX% to hard

deals Capital slightly reported Association funding in XXXX The National invested a sciences robust. of with Venture companies moderating a record XXXX. Venture of life in number set Capital over record remains dollars only

very a very All of very, very again, Once supports industry quarter the and go a these strong for we all as businesses. across solid strong another backdrop our XXXX. into year

more will now Mike review financials the detail. in

Michael McDonnell

morning, Good Ari. Thank you, everyone.

seen have it solid quarter strong out year. a running you a As very very was

Let's full to year grew reported. and grew million X% was $X,XXX for constant and the reported. first at revenue. of constant $XX,XXX revenue million turn currency Revenue at currency Fourth quarter X.X% X.X% X.X% and

currency of Technology X% Solutions year million million Solutions X.X% X.X% Technology Analytics $X,XXX Analytics the constant & constant revenue revenue at fourth for $X,XXX and reported. reported. and & currency and grew was grew XX.X% quarter at

X.X% grew million constant of X.X% X.X% currency quarter Full X.X% year and fourth at at $X,XXX R&D currency Solutions revenue R&D grew revenue constant million of $X,XXX solutions and reported. reported.

constant was up for quarter, CSMS a on Contract revenue Medical Sales on million million, of currency basis. reported. & X.X% basis at X.X% constant year X.X% revenue reported grew a currency X.X% and Fourth the $XXX Solutions $XXX and

profit. EBITDA of million year was full to $XXX Fourth diluted $X.XX. GAAP the diluted earnings XXXX. $X.XX. GAAP net share and the was for was million now $X,XXX million $XXX income Turning income Adjusted and was for was earnings per net Full fourth and GAAP quarter GAAP quarter year per share million $XX

$X.XX grew adjusted Full XX% diluted million and Fourth Adjusted fourth the year-over-year adjusted net earnings year. the income for $X.XX. for share diluted $X,XXX full earnings per of million $XXX year quarter share grew per was to XX.X%. quarter

now the Closing December over that $XX increased XX $XXX XXXX And of million amount the turn by revenue XX, months at was to Solutions billion. R&D Let's expect approximately backlog. we to backlog $X.X next billion. to to convert backlog

Ari are well-positioned in As in revenue R&DS acceleration further for XXXX. we growth mentioned,

and review $XX,XXX resulting totaled $XXX At cash December Let's debt sheet. cash million. of million, XXst, debt and equivalents now net was balance million the in $XX,XXX

Our net leverage our trailing X.X adjusted EBITDA. XX-month times ratio was

activities spent and full quarter. the million, million of was fourth in the for year $XXX fourth million $X.X in the operating the quarter was $XXX was for Cash year. which flow CapEx from $XXX billion

resulting Fourth stock the quarter free year. year full our flow fourth free As free repurchased large flow $XXX in ramp for $XXX totaling $XXX cash fourth the expected, million cash of in we million. during was of had million million, $XXX a We quarter in the quarter. cash flow

XXXX guidance. turn let's to Now,

$XX Our full to million. year $XX,XXX XXXX guidance million is revenue

adjusted X, rates and foreign we for rest the to For remain in be $X.XX between the and and adjusted at expect diluted currency $X,XXX million This $X,XXX EPS assumes profit, of year. guidance $X.XX. effect full EBITDA year be February between XXXX to million

that foreign to and rates for of us plans of we our against note the and -- beginning $XX resulting year, resulted million. since in should our moved headwind year, XXXX a originally about You have the have when set plan the revenue currency

year would XXXX So, about revenue million have higher. been guidance $XX absent these movements, full

In will -- impacts guidance primarily affect of guidance our addition, guidance best potential our our assumes segment. our assessment financial assumes which R&D coronavirus includes our Solutions and

are You in already our sites this evolving real-time, is can in can China. that appreciate mostly but disruptions see which hospitals we to

of $XX hoping assuming our to an this full currently short-term first resolution guidance. million and drop-through carried with quarter and to outbreak and revenue are therefore impacts a these have heavy assumed year We have impact to for

XXXX. to quarter is which over considerably of contribution, basis. to lower assumes XXX approximately last a M&A what three years. X.X% the or on has points of guidance X.X% few regarding growth than about points constant between Before for $X,XXX been This additional currency X.X% X.X% and million, revenue Technology our it segments year, be basis million the & $X,XXX turning to full first our to a We Solutions currently expect guidance, representing reported Analytics

R&D basis. a reported X.X% this $X,XXX is million expected X.X% between to solutions million, constant and revenue or Note X.X% growth X.X% currency rate $X,XXX to be of on representing growth to headwind point to basis of points XXX assumes services from pass-throughs, M&A approximately a be This Solutions' so expected basis assumes XX.X%. X.X% to contribution. is constant R&D XXX guidance growth currency

to R&D solutions expect We growth be lumpy quarter-over-quarter. revenue

should to growth not expect the rate linear. You be

quarter past XXXX, our at as the Specifically, first look encourage relates I of it would performance. to you to

You not will quarter. from for R&D down unusual Solutions it quarter to rates to growth fourth the the is in first step see

of Additionally incorporated impact just this coronavirus, year, discussed. the we I which the have

to expected or approximately growth rates. representing of CSMS million, at constant FX $XXX for about XXXX revenue is X.X% X.X% reported be about

many of the for of highlight revenue a acceleration While overall, so to business there. the know I'd you take are like Solutions, we the acceleration our focused to we minute progression at R&D on look

been we have you service we has XXX pass-throughs is This know, impact growth but pass-throughs to ASC a in continued lumpy, from the grow rate the than of at XXXX, adoption to since slower see revenue. As of the is to projects solutions look where in number to best adjusted the for phase, impact have services pass-through Therefore, the believe pass-throughs. it less of growth start-up at is R&D due we generated.

On the X.X% year growth first the XXXX, which constant was in was full currency after basis, services R&D Solutions that merger.

midpoint the year constant the growth XX.X%. our period, first currency full XXXX, solutions guidance is merger our R&D For of after integration services

have see rate growth you doubled we nearly acceleration. can represents So, which a our dramatic

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

assumed adjusted remain a EBITDA million, and between constant $X.XX as and be mentioned is of of million and the X $XXX rates we quarter, FX adjusted million first million revenue $X.XX. February at to be quarter our have $X,XXX earlier, And and end the expect the be reflected and EPS to impact to this between $X,XXX between in in the we through $XXX diluted I disproportionate guidance. Assuming coronavirus

rates currency of rest effect foreign February quarter quarter. XXXX the First assumes at guidance for X, remain in the

beginning has mentioned have of resulted I since a the against to plan which quarter headwind of us the first As in revenue currency our year, about million. moved rates foreign $XX earlier,

about movements, quarter these higher. absent would revenue guidance so first $XX And have million been

And organic to growth constant EBITDA and so in over quarter compound revenue, at currency with XXXX growth XX.X% Full fourth or earnings points year diluted accelerated our in XXX XXXX. basis financial compared continues summary, to in above adjusted mid-teens EPS were XXXX. targets. the Adjusted revenue

momentum for deals We won acceleration. XX $X growth billion successfully backlog billion months. repurchase planning to stands very a to XX $XX CSMS operating strong in and new demonstrating with R&D deployed next stabilized $X.X revenue strong share We XXXX. XXXX, OCE XXXX. in expected and to almost at billion continued are Solutions over the we convert

back for to operator hand And the it with let that Q&A. me

Operator

question Thank your line question. Our you. first from Please Coldwell of proceed Instructions] with Eric the Baird. comes [Operator with

Eric Coldwell

Thanks morning. I have questions. good and two very much

in first tough & how there's a obviously best about Technology to a of ask. not is investment, one The lot of A this been wins. Analytics. new sure to lot go I'm but

coming top that the here. pharmas with you've a lot of got You've highlighted onboarding

and actual on offset have that I'm a wins, the momentum you grow absorb In clients clients been that maintain able current words, during it onboarded XXXX, onboarding the sense and the pipeline other investments the might on the of onboarded the you have you where if incremental or a onboarding point? when EBITDA your segment? be can or to current and you're based Is have performance XXXX curious phase? future making that when in do see more you with revenue

Andrew Markwick

is this Eric, Andrew. Hi,

I clearly expect laid frame. we XXXX the we the slower three grow Analyst think, through committed for EBITDA I in that, technology. mean been out in we in new the Day going our putting expansion We to a June plan the past. XXXX, has currently to and are the out if business investments expansion back years deployments go said we're and seeing next in to it the than margin but We're margin for we're to looking that pressure we're time

of large of go-to-market obviously, revenue global we're We're likes got now. come for to going some being see with and through as our we've deployments planning But Roche active that on the well.

an guidance. higher during revenue underwrite that the bring asked get layering math the base everyone years, on to the the of assuming Hopefully, midterm natural of XX, to margin to because accretion place which forward, margin, not But as if you growth, going deployment investment technology in into XX points, go will the next we the do this to that's we're the so continued three kind about is but we're wins. take average basis EBITDA assumes we've

Ari Bousbib

Eric, good morning.

selling obviously, seats in continue momentum you're is as the question investments. on trying our the the hoping your offsets when to accelerate margin, going And of If benefit higher-margin always understand business. to we to we're revenue license that are this

of deploy we'll hard market because to isolate contribution invest grow And hopefully to the new continue seats. just line we So of our EBITDA that and business, and share it's expand. to continue

whole. have more isolation period margins, EBITDA our margin in business will some three-year as and to in it expect the continue the top the Andrew the a to be for reminded and But is time than as our us, over grow in next to line we company When faster aggregate period. accretive accretion

second You question? had a

Eric Coldwell

the on Yes. now Yes. agree future. the rather it's investments than It's wins -- making absolutely sort the business that see you I of we'd a follow-on and for

reports. in missed or The OCE couple So the toggling I follow-on we're tech broadly? of anything I it you either about apologize did But that. pipeline mention more a thank and you for if

you've wins and based on coming of on clients' since the your do does curious pharmas? to be had line top XX-plus the you cited And additional rolling out may You those be. might OCE. here market? I'm cycles call like look this that pipeline sight what year What on next renewal pipeline over XX that who a have

Ari Bousbib

mean Yes. are we I -- dialogue. it's look, in

who's and in upgrade really large or platform. either with We or CRM since the a switch all a to essentially anyone product dialogue have pharma their contemplating been an launched we renewal

pipeline it's likely precise but than have active we numbers others, to of hard in So, and isolation give an for client. that are you more me some

addition, In the know, you all as add-ons. we have

highlight. active the products to other safety the I content and analytics, I with on my have others MDM mentioned Trials technology the But -- very, clinical in ePromo, in regulatory We suites, the conversations that also stitched Virtual modules certainly, with can that clinical are management. together be are And technology modules of we discussions side, remarks we wanted and in very OCE. active with on our

So, It's our why up. we represents very Analytics feel lot pipeline large there going This with conversations. the have the versus to a a comfortable guidance history. & a is ramp of and on That to acceleration significant is continue we Technology segment.

in think I our IMS a history range. with growth and "best-in-class" rate the bit organic the are X% was you more familiar at

business, is say, XX% And zero bear our at percent. segment or of our grows about in mind which so significant portion, third Tech & that Info Analytics let's a or a Solutions

piece growth will do the is and that significant. Analytics you the So, Technology when you the the math, piece realize on

Eric Coldwell

you answers, the outlook. strong and the much Yes. for so congrats on great. That’s Thank

Ari Bousbib

Thank you.

Operator

the with your sir. line Thank Please our question. of Continuing you, Sachs. on, question with next Goldman Robert from comes Jones proceed

Robert Jones

obviously like an enterprise-level year-over-year look step-down sequential last what does year, and for guys again XQ what's XXXX. guess as to to lot the of And indicating then that. play are the talk number confident just that sight you at total a might as else think for Great. next bit about about Thanks far get as easier to obviously to detail a off easy know deceleration through line for at what's to the look year? a just you're out I year-over-year? you from of adjusting seem comp for I an little if as far laid I bit XQ so year you a Is wanted full But much. corona. in of of cadence revenue it in thinking guys there revenue guys the sound us this help year anything why achieving then, the very be comp

Ari Bousbib

it quarter just I'm of the overstate result I because it's a of And QX, piece our what's the disclosing of sites. unfortunately is. in we question is than QX, represents tiny happening as again in China China is Yes. the number less the coronavirus. -- we If have business. happening what over on very want region the sure in -- a QX not overall XXX,XXX sites sites is Without China that where don't we question assumed this well why see particular XXX will it's worldwide. to

-- I now. all The patients that's think more of But sites. might simply CRAs send have patients simply sites the in China, not to the where them. visit of around are in dangerous kind couple people enrolled who are the And spot somewhere will China, in a trial right not going a are we thousand are because hospitals going. not then obviously

$XX million in and quantified quarter little so first through a if there's are profits assuming $XX then that so, the in of hopefully. well. we're impact business still -- that is dropping result resolution there, by of costs the as and this paying obviously be And of most million bigger we've you a pause will a that as of bit to So, environment,

quarter. the And the -- Yes. so of first carried that's we've that little a that explanation. to depression kind main causes in And

Robert Jones

No.

we of as the impact versus way. asked the a I there cadence ton makes we've sense be growth should seen contemplating maybe sorry. last guess the guess think as I cadence corona, of far XXXX normal that I revenue that I the of is year. from anything out ex-ing another

Ari Bousbib

percentage represents for Generally had mean less couple the over is points first look operation, it's than QX generally, I IQVIA the in of quarter example. we've lower which No. other year, every little at revenue you mean a look I of right? if quarters, the like a proportion a three for QX so instance, little years. than in

XX%. take XXXX, of was revenue year our If of of basis, on XX%. you And a look and at our for if revenue a was look QX QX full XX% the QX XXXX EBITDA -- was you QX and was XX%

So X X represent. that generally, there's of the difference because to points proportion they

So, it's generally the case.

at significant the actual when look FX year, you I year-over-year year-over-year impact the if more very numbers in quarter. to relative prior first think you significant. furthermore, then -- is significant And And is of compare FX is

Andrew? add to wanted something You

Andrew Markwick

not million. against the No. that Obviously of to headwind to FX year-over-year for We We're FX $XX year us since might beginning call growth out first is quarter. that has about year. see going obviously the by in a full moved the the

the over So had million hadn't our dollar guidance if few last would have strengthening higher, been $XX weeks. the we the of

growth you're XX on -- basis year-over-year points basis reporting well. on obviously would constant FX basis calculating The XXX to dollar about a rate reported as probably that a on headwind be for higher

Ari Bousbib

first the quarter. In

Andrew Markwick

quarter. In the first Yes.

Robert Jones

it. Got

Operator

on, with Continuing of next Please you. Barclays. Jack from line Thank proceed. our comes the question Meehan

Jack Meehan

-- wonder upside I morning. Good you. in the fourth quarter. focused on Thank the

was you was look number, guess actually At had first a the the headwind. assumed saw pass-throughs, your was came it revenue least you the plan pretty opposite. the the quarter I I where it versus I if above but when out So was upside? comfortably. that it in laid Obviously guidance fourth for at

I on would nitpick the EBITDA line, be, one you see drop-downs. didn't And any then think

could the just on there you as So back if wondering business whether in well? reinvestment comment was some

Ari Bousbib

for operational Jack. entirely the you guidance from Thank and performance revenue question. you businesses came the of thank the from Well on versus pass-through. Yes, upside underlying the not Yes. the

said headwind. pass-through a was you As

Technology during this to business technology the starting segment. segment. to -- remarks of versus Solutions on just We're the talked Eric's our The was guidance, majority question. see & revenue vast the technology Analytics answers in ramp and my We majority about beat the

deployment. are very very But mitigating the the strong technology is, in side, which of EBITDA the the investments EBITDA side is And strong drop-through that the by mitigating on continuing flip drop-through. way

revenues we at world very clients a SaaS when deploying of again in other parts they top is XX in we're no-margin at a for that are licenses. those in because high finish so implementation margin Asia same deployment essentially and But the So time, business. come our the

that that that want expansion margin I generated we just Nevertheless point investments as had you the offsets in our and margin to pointed quarter. -- offsets So continuing out. out accretion

Jack Meehan

And Yes. the the curious was it's fair. assessing on went side? I comment there But ability the I this coronavirus know impact million any potentially predominantly point. your That's impact as you Mike all from tech about is best of to the this $XX the at and just on R&D segment? Is

Michael McDonnell

of the it's I'd Yes. XXX% The majority any where see is rest R&D would business, the of impact. on material on we The the don't it side. the say side impacts. virtually see we R&DS

Ari Bousbib

I constraint. of is not physical just physical add movement the a rest a it's Solutions actual to The -- the again, of does side. mean people there's Technology obviously -- business require Analytics Yes. & just less on

on is I say R&D side. XX% can as think said, Mike we the So

Jack Meehan

Thank you.

Operator

next... on Continuing you. Thank

Ari Bousbib

sorry. I'm

and to Just mitigating we're contingencies a on on little working this all comment obviously We bit. have issues. these of

expect up cetera. also new And et want this be of plans So is working sites currently sites -- don't I mitigation China that opening we obviously will certain it situation outside but we're evolving reorienting resolved. an on internally we to are

sitting be not like for sites it's So open to these and blindly. we're just waiting

you sure make to want for absorb issues year. just I company contingency we're large a the within and can understand the we our So

things if appropriate as change. will We revisit

Operator

sir. you, Thank

comes of with proceed. line the Elizabeth Evercore. Please Now question our Anderson next from

Elizabeth Anderson

the conversions on for was the obviously taking and terms starts impressive the of and into trial in had question that I question. there very should delays about the Thanks of sort anything Is a also into or -- the just like think book-to-bill quarter outlook. to of take spoke and in lumpiness you the some account? guys. we Hi, length in

Andrew Markwick

I'm Sorry, you say question. followed. hear We of your Elizabeth sure beginning can couldn't not the that we again?

Elizabeth Anderson

Can Sorry, can that. you hopefully better hear you about now. -- me

guys up it a very the impressive several you put on book-to-bill other back obviously really nice book-to-bills. of and comes So

on you the to the conversions the I trial about to was impact of about, spoke broader but seeing sort if that comment movement wanted So delayed that or your sort the trial of some times level you of had start in like I would of, more anything know or know guidance. lumpiness some there increased potentially play also complexity quarter, intra-quarter a of anything or guys you're into sort of in that

Andrew Markwick

No.

I I what think first pretty the think mean at of when much quarter look we're if we've history at trying unusual, There's look historically. I lines no seen you you along delays. the nothing

if think our backlog. forward anything we're moving I in

shows XX this Next nice months' us for increases business quarter its every and at revenue as and everywhere stage healthy usual is and continued else.

Ari Bousbib

a strong think had pretty book-to-bill row seven Is if very across and that strong share very correct? level had continuing believe market Very, I where We've Yes. of X.X. size bookings the we've board. gaining at above the quarters ratios you in we've I we're our it's -- that revenue can we see before look think obvious that the and the of

Andrew Markwick

Yes.

of last Over the couple years.

Ari Bousbib

had that full in start-up were those the bookings very of start-up lots phase because strong the the are of across year very proportion clinical very at we full for we've I work very, it were them phase. being you very, look have on vast XXXX X.XX And for board of And work. -- of we generated had And third we very, X.X. a ratios clinical majority bookings if remember strong year all are mean strong in and X.XX strong very last book-to-bill basis. or services in the we and they quarter those fourth And

in is from fourth right? pass-throughs phase -- during what's the quarter. And causing pass-throughs pass-throughs there are the So they higher obviously start-up that's that headwind no the -- headwinds from

the continue we or of are drop-throughs perform nice the higher -- spots sweet in Now full to And of and want the clinical margin deploy they to you next those have those good trials. the news strong expect as is we clinical years business CRO couple where margins. be

Elizabeth Anderson

like That's versus sponsors to And particular Is or share obviously assume qualitatively -- people very helpful. that some putting book-to-bill choosing and reasons products of, you'd Okay. with there I guys call revenue or what -- are offerings are you any up peers. your growth things? about, anything are you the not nice some gains other either sort out continued like

Ari Bousbib

Yes.

mentioned optimize supporting which in past of, and performance to our out SMART are faster that data on, design, demonstrated trial patient sort we capabilities the what trials. we've precise strategy technology early the trial all of unique course is site accelerate by protocols, optimize model and recruitment, that now more think those trial trials healthy analytics I the using the to, of our call on CORE-powered and identification a

that When after we about SMART trials $XXX And million of becoming we only awards business. million in talking the quarter. -- SMART pleased see think of million is that $XXX had my very, CORE-powered terms the quarterly trials. started this the we It's I over introductory award bookings, very in and the of service mentioned quarter being do were of a remarks past not merger but way $XXX I awards to we

of We rate Thank bid to you. majority result win as are trial on capabilities. applying today a CORE-powered a SMART the those what of with vast we higher

Elizabeth Anderson

Okay. Perfect. Thank you.

Operator

Stifel. next question comes Please line proceed, Okay. Shlomo sir. Continuing of from on our Rosenbaum with

Shlomo Rosenbaum

winning from given Also from Is can Ari, comments a bit response you the doing you little for some OCE, they're there? in pricing? I've the on that my to wins in competitor going had a a in of with you. that capabilities? speculation could Are of -- be pricing all you business in the you've fact just you the some there very questions. the on? subsidizing with competitive major out that big you you the order you that heard market? services. seen there's to going some such have that OCE subsidy Is terms Thank have base that you're Or Hi. about market based is competitive that much anything talk over that Thank the info of of a there taking win

Ari Bousbib

in had Thank as competitor I essentially of space is a decade. entrenched -- years has you, for we an there there's you Shlomo. know this noise. a essentially easy And And many lot dominant know for that

believe based we you their and product I from admire are we sure for is that our behind superior remind But Salesforce has fantastic that so in job the that done And on today different OCE functionality. of coming a terms we is platform and product Salesforce built the more Since on and the functionality that platform ago. The with years it's a totally platform a than XX which was being is from of we have then, benefited. competitor lot product platform the different was. into competitor performance. built

added those, built build into the modules. modules this at to So helps to In functionality order the really AI/ML is that us OCE not There custom-made exist win. do they match platform are competitors. have what

difference. fundamental difference That's from Now ours that's able are is the win. this and are why standard to and start, the fundamental we the built

more global a for most will the sophisticated Roche's dollars price does one things, switch. represent less pay we're Trust around. P&L. pharma In is a in it of They functionality. scheme companies item not of for better me few over them huge for the This for deployment in a higher I'm grand on line an Roche, a such XXX or tool important going as make doing countries Roche to not

not an are we So stress. underlying in Okay?

pricing actually We in below. priced premium. at some are a cases have not We

Shlomo Rosenbaum

want point has a response Okay. to it does you Or what Great. that look like out? you? there And competitive to been

Ari Bousbib

competitor a on usually know is I I was doing. I called I commenting all mean Look cross works bought which from -- of kind -- refrain with, think, [Indiscernible] that competitors company the is that what are

Andrew Markwick

Yes.

Ari Bousbib

additional. but But I'm executing that provide that works focused that strategy. there rather of are And or not is that, data what -- on data. sure I'd event Something bit capabilities on has we're it's not quite other I little our with clearly, a it just to -- be on that an then them like comment reactions frank.

Shlomo Rosenbaum

Thank great. much. very Okay, you

Operator

next comes William Blair. on of from with Continuing the proceed Kreger John question. your with you. question our Please line Thank

John Kreger

now question with for Hi. could as Ari the OCT sense technology seeing you. offer you Thank Thanks. Could a if OCE? you not the or Curious and opportunity an think whether us us you. about another timing of a products? suite give you on could give success that you're update similar

Ari Bousbib

Yes.

So have already we are a today, look that modules and are being available few sold. that

-- Trial, want portal, the don't Virtual actually a going And out monitoring quite pushing. with that's CTMS that and the also go in with it I patient live way technology on and site released And I photos. the full Risk-based e-consent like CRA that technologies in the the in way so sweep. additional -- successful. up we've context market Virtual will be the have really in been is like again Trials will discussed shows what context XXXX. of and There the are the future. China by which to specific of what's products mobile of investigated that quarter first In we've which QX, got We the in payments are again. bring are

As we be year, modules would said we're as essentially suite available the of the end we the by go. so releasing full

John Kreger

question a And Very you. helpful. Thanks. for Mike

year mix about ended years? I talked headwinds that margins increasing you next anything there that could backlog where last you of to Is be out shifts tailwind call XX% in the want backlog over couple perhaps or XXXX. to Thanks. of for a terms in compared think within

Andrew Markwick

Andrew. it's John, Hey,

mean pleased we And I in growth we're see backlog. backlog, next from think I XX we have very continued very which large months a with. revenue

it's tech client is a think had terms more post diverse really the on We've which in lot biopharma obviously focus products that of that for pharma merger I to towards clients with of on a of of a at emerging success kinds really is large we've increasingly we've mix, data think with but this lot segment those stage. hungry kind wanted concentrated right kind becoming they really the seen have there. Out the of solution, and where are gate that are that CORE-powered I of success that's our approach. show focused analytics

at million we running kind account at business of close Ari earlier, large grown CORE-powered and and coming $XXX mentioned pharma the merger our $X to looking of table and were has quarter, a really post million we're As offering. a that

I with So to is main all our mix still in client that. large mainly think within base revenue pharma the being assess it's segments,

John Kreger

you. Thank Okay.

Operator

from our with comes proceed your And Crédit line the Erin with next Please question. you. Suisse. Wright of Thank question

Erin Wright

thanks. Great,

very the guidance management initial your incremental in XXXX on cost diligent been post-merger. integration completed assume even the of But, or what historically You've on, savings in front. continued I Thanks. cost here beyond? understand terms does that you've

Ari Bousbib

We And indeed at pointed take-outs, for we you million synergy sometime the question. $XXX exceeded have we the time earlier our costs out as that in for achieved the XXXX. plans, thanks announced actually Erin merger. of the that Yes.

conference VXX larger and for But are to announced new our in at of advantage the named of in cost-elimination investor we XXXX, scale that the doing we this also June $XXX our order for which XXXX, were next XXXX, -- X-year launching business. we take initiatives new period: a million we

that, let to We're frankly, now have time, accelerating. time growth the in at same same growth. or that business line At up a revenue. with creep we of revenue point when or costs phase of we see an the to even happens inflection ahead a sure support we don't where make And we at this in got

initiatives Those So the systems. And it's have And to optimization, initiatives, program a whether gamut complex have a on running on dedicated from a it's run company. we estate, with across continued that's more important team, equation on that it's those to IT manage. infrastructure do we a an specific the program. therefore, real office, procurement, full-time

our and using And the to course Offshoring tools those more from South Eastern the which America, of our Philippines, Europe, operations. supporting our other up centers in bots complex within of growth continue offshore and our scaling continue automation, own AI/ML India, aspects in centers.

necessary that otherwise million else. more which generate combination, And of we margins, savings, if to we the all expect exiting would XXXX, nothing we than we offset did have, $XXX of those, in headwind believe to cost is to

going perhaps so believe XX% going the during of first we or another that, be then, XX'XX, million XXXX. in $XXX say last that ramping in to and portion XXXX, and then, the XX%, the And in so usually, smaller is or come year. that Maybe I'm balance to a will XX%

So have we Thank much, very estimate ramp up. that's best going here, Erin. is on you how this the to

Erin Wright

Okay the that's do pipeline do Virtual your -- now Trials? think Trials, concepts? market in a there are And you leading think that disproportionately you higher And mentioned with perfect. then, Virtual you're on in strong Trial that rates win Virtual you

you are Thanks. on And working now? Virtual many how actually Trials

Ari Bousbib

we It's I it's So -- Okay. that in the have right? Do number? double-digits, number? the think what's

Andrew Markwick

it disclose to want we think yet. don't I

Ari Bousbib

disclose Yes. And okay? We're you going than it's more to less all it pharma. not than XX, yet; large know with XX,

Erin Wright

great. Okay, Thank you.

Ari Bousbib

you Erin. Thank the asking for questions,

approaching I the now. the hour think top of we're

joining And time So call think for we'll today. end for I thank us you the taking everyone the there.

take of Thank the first will very for on questions rest and you follow-up And quarter we XXXX earnings you any again, may day. forward look to call. speaking you Jen our much. to with available I the be have

Operator

And you call for participation. does Thank We you disconnect your conference you. and Ladies please ask gentlemen, again. conclude Thank thank that the you today. lines. that, once for your

IQVIA (IQV) 12 Feb 202019 Q4 Earnings call transcript