IQV - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA Fourth Quarter 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. you. Thank like President, call Investor now Markwick, to turn Vice Senior Relations to would over the Andrew I and Treasury. Mr. your begin please conference. Markwick,

Andrew Markwick

Analysis. Today, Thank Childs, that also and Executive XXXX our Executive General will Relations be will Thank Vice quarter visible you. and Chairman presentation Planning Eric and today President, everyone. Sherbet, joining presentation call be Officer; Bousbib, on Senior we and Good referencing fourth Ron a Counsel; the Investor Chief Executive our Events website of Presentations Officer; e be at Bruehlman, will are you Ari Financial on webcast. and and President call. This and Vice earnings you for year that President section Chief Nick ir.iqvia.com. -- With available IQVIA Vice for me full of during this those morning, our Financial

have morning, be We that momentarily. our this posted noticed in administrative be issued issue. This that apologize we missed Now, presentation slide our website due available an to will P&L will P&L inadvertently you quarterly error. we our may to when this made for release and press the

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

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

Ari Bousbib

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

and quarter. all We will review strong double-digit last again quarter finished I’m how financial We growth very guidance. more the close our to financial although we with reported delivered since year we metrics a fourth remarkable and financial in pleased This report above so was key discuss results targets. year’s strong. once is XXXX XXXX

third provide update outlook best had end which As some at the performance. to than you earlier to that the to share as XXXX this full as tried you be we we same has of quarter the know, we’ve try watch to sidelines, In when through and saw. outlook the guidance financial our decided would and and visibility, to the was navigated know, soon become usual. as our you transparent all we did with We raise Today, pandemic, normally what clearer from our the highly as as expected such unusual and withdraw visibility but be provide and difficulties we these reaction decided circumstances, here through quarter guidance. to as we possible we default a

and beats million little from quarter over reviewing was favorable less XX.X% organic beat here A was Revenue of $X.XX of above performance, Fourth revenue to range. guidance diluted fourth came adjusted high performance. on The exchange. EBITDA basis than the adjusted of which dropped high results. our quarter the $XXX start reflects Fourth through. strong organic million million range guidance at above currency. entirely revenue our reflecting was our grew reported XX.X% quarter constant entirely $X,XXX measures. EBITDA the came Let’s The in XX% from of $XX EPS Revenue a million fourth by for end $XXX XX% our of XX.X%, foreign these growth growth the productivity quarter end due at and stronger adjusted grew XX.X%. the beat

Our during A with color achievements technology total more in deploy numerous technology. bit achievements since strong Demand bringing for XXXX. financial year, were on OCE client XXXX. new those results clients operating little remained driven of fourth XXX last by to our OCE XX number decided offerings launch. to strong starting quarter our wins

in you the top now are almost to OCE liaisons at for science XX expanding deployment client client has client conjunction X,XXX deployment of know, management a beginning of is global in with global engagement platform. global XXXX, platform ensure in technologies decided begin We during U.S. to regulations. namely, medical the medical As global pharma compliance began are worldwide. there This their this all teams, launched engagement of through HCP IQVIA use management activities works OCE its also with same This commercial OCE our executed HCP XXXX.

team we XXXX real business been the advanced onset it and our the OCE use In of new OCE the approaches, research which remote has sales data, marketing working of pivot plans. map-based monitoring and HCP well-insulated world seen relatively world Optimizer. and the world rep their year. virtual from have quickly in impact their management, real-time will to pandemic. improve a has in is strong our for the also The secondary growth addition business sales is alignment to real to solution, Switching engagement help of the activity Optimizer remote rep the helps that which territory virus and plan launched business, the at during clients you our

has clinical impact differentiation. rich rich into our on data now include to these authorities these non-identified experience assets data and better and key CARE, data the assets Our clinical understand communities this public XXXX, over In population. active integrating COVID-XX active help the busy is launched to registry team we our research. of rich research the COVID billion health X globally, patients in and world clinical team assets invest real continued to The are

our offerings, large patients. world leverages to with partner to COVID those application a become incrementally our we of TAS support vast governments any choice the capabilities. FDA We Similarly, new individuals the world and connected contributed registries affect they It’s analytics help or capabilities platform sequential a our the are are perfect leveraging with various to of experience, segment. understanding medications whether the real to supplements by monitoring the exposure symptoms of better series affected taking This in work along people and are with symptoms length assist the and growth severity identify our this and and have symptoms. partner testing how healthcare of of which authorities of with COVID. severity scale This will experience to diagnostic of of around strong

Moving to R&DS.

and high. Phase including the virtual to the responded funded know, over To-date, in the deployed vaccine development our digital an it has R&DS that trial IQVIA studies we and sciences. development the sales that expand you awards five trials for using support the the outsourcing recruited working is R&DS pandemic telemedicine, business R&D As for top an help and leveraged for team speed and COVID-XX. direct-to-patient and with in National of these for healthy. areas, speed. adoption The through environments the on force X year. turn that helping trials Capital four In This technology in Phase and sponsored the clients. vaccines for been platform cloud, and are of the our The therapies and solutions, important across accelerated advertisements. more factor funding secure we’ve a and won than remains full include trials life involved of molecules our XX two record new strong including continues clients was to Association is use all time virus, Venture patient for registries vaccine awards we’ve of XXXX differentiated therapeutic with by reporting at total, in U.S. Government trials. is with accelerated risk-based COVID The research, technology. remote new Biotech We’ve patients of XX need very of XXX,XXX solutions technology service pipeline over pharma clinical healthy to our eCOA number health and and on. with strong, XXX and quickly recruitment, is combines we that made capabilities, five monitoring purpose team. the communication The for It environment has built in suite were deals late-stage COVID which in operational which work To the virtual our has platform team remains XX speed in e-consent, resulted the studies being the X trials to combined the healthcare clinical

XX, December including XXXX. pass-throughs XX.X% grew contracted $XX.X backlog to year-over-year at billion Our

As to next XX.X% billion, months a $X.X result, up from our revenue increased XX year-over-year. backlog

build net book-to-bill on strong our pass-throughs. exited contracted pass-throughs to excluding fourth and quarter, ratio including X.XX an X.XX momentum the of pass-throughs and LTM X.XX with a the of with contracted continue We excluding team pass-throughs. year ratio book-to-bill X.XX in including delivering We the

over We as I’ll a turn of is expect of on continued strong across financial for R&DS double-digit and both performance. therapies. pipeline range our it in wide to opportunities activity very forward now going our growing details more Ron volume dollars

Ron Bruehlman

everyone. good Thanks, Ari, morning, and

year. quarter As Ari a strong mentioned, this to the close was

revenue the comparison was and again you grew million, tailwind strong at Technology constant in currency. the on XXX to increased a quarter rate. FX reviewing note double-digit a was at due $X,XXX due for currency. of Technology fourth third mentioned. revenue at that the actual the fourth delivered and COVID-related currency. organic constant at grew COVID of for quarter $X,XXX full the fourth quarter & rates Fourth revenue revenue XX.X% Solutions The growth was fourth at work quarter year both XX.X% growth, R&DS year Let’s Revenue Ari performance, double-digit service when start million reported and X.X% R&DS sequential that X.X% million, should currency. bump work. XXXX, the Analytics services up growth $XX,XXX Full Pass-throughs reported up quarter this at Analytics of and a to organic at quarter XXX and of entirely were which quarter tough revenue to R&D X.X% by revenue the of $X,XXX reported XX.X% considering revenue. up Solutions million also especially constant basis But X.X% & $X,XXX on Solutions points reported XX.X% the constant versus XX.X% and was in XX.X% constant to million currency. basis growth was basis, X.X%

For year on essentially basis. the million, Solutions R&D constant flat $X,XXX currency reported both the revenue was full and

revenue XX.X% fourth and on down reported the revenue a of $XXX full pass-throughs currency XX% quarter. of grew in was X.X%. CSMS reported Solutions constant R&D the Excluding year impact basis million

X% down actual and X.X% for was the full continues reps field FX environment. million at year revenue be For currency. CSMS current Demand soft of $XXX to at constant rates the in

we performed business a activity But than clients the retained is As largely result, modestly businesses expected existing field have our reps. as development slowed. better

Now EBITDA moving for growth the adjusted quarter, of down XX.X%. was $XXX was the which million P&L, fourth

income Fourth For million. $X,XXX year, $X.XX. million adjusted per quarter was earnings was GAAP GAAP the share full diluted EBITDA net $XXX and was

For net grew $X.XX. Adjusted per Full per GAAP the XX.X% $XXX year. full quarter GAAP adjusted year was the the share million diluted per $X.XX. for year, diluted was to $XXX earnings and share $X.XX. fourth full was quarter diluted million for million income earnings income and earnings the $X,XXX was fourth in net Adjusted share

close strong, activity to backlog Now at R&DS group $XX.X XXXX XX.X% billion. as Ari remains year-over-year highlighted, business new

shortly. We this a represents I XXXX of to a guidance, convert XX expect which year-over-year will the and to which next for XX.X% months, billion increase provides over basis of discussing our this revenue be $X.X backlog

At to and XX, cash sheet. Now the $XX.X December cash equivalents $X.X was let’s go billion. totaled balance billion and debt

was debt $XX.X net our So billion.

we deleveraging compares leverage we’ve of Our the times peak trailing that exit December net XX-month times end of the And at X.X leverage committed recall of the to that EBITDA to and the X.X second between at and to times XXXX. times quarter X.X improved net end XX at times as quarter. X.X you’ll adjusted and a X ratio third

we’ll our quarter, adjusted in growth free was spot. $XXX double-digit XX% good The conversion. XXXX this flow cash of You operations improved fourth a to from continues CapEx and bright year-over-year. make in flow flow flow in due resulting Cash can the was cash progress to expect million up million. $XXX $XXX million, that target towards free EBITDA be cash

outstanding up and shares. at For repurchase the XX% cash the share full shares We year diluted free billion, quarter, year, the repurchase of during $X.XX ended resumed fourth was our program. currently remaining repurchases million XXX.X million flow repurchasing Full billion share were share $XXX We of under have year-over-year. year million. $XXX authorization activity our $XXX

cash free and at balance billion our now capital the a year, our of of $X.X the on result As decisions pandemic the have allocation the billion. flow access we onset undrawn dried we capital the and billion to actions cash took during markets sheet $X.X performance, of revolver balance between $X.X powder of of strong

We net will judicious leverage. we consistent be reducing with this in of continue use goal our to how liquidity

Okay, let’s turn to now. guidance

quarter our full remainder revised low includes revenue the from million stronger under driven favorable half and versus guidance is million versus FX end revenue raising of end I by of is million. note our FX increase third by the to the $XXX at range. basis that business are guidance on the year guidance range high $XXX by prior about this million new We a tailwind the The A movements of the for XXX year. $XX,XXX is $XX,XXX guidance a the points outlook the little at provided call. of we for and

year versus also on impact profit of are raising of the in million by at We end the versus $X,XXX resulting mix your $XX The high due adjusted $X,XXX negative range, FX low range the norm. increased profit unusual $XX guidance to fluctuations our in million historic EBITDA the to a the million prior at full of and had million. actually guidance full guidance, end we’ve by currency the change of slightly our year

result you more of entirely stronger that guidance output. is in than increase our revenue organic the EBITDA adjusted a the So see

models. some the you high year-over-year XX% provide help We’re raising XX.X%. represents of the to by diluted a and low EPS to to let $X.XX range $X.XX And at our growth the at end adjusted range with $X.XX to of little with guidance deeper by of me $X.XX. you the your end This go color to

be depreciation modeling that And the amortization fourth approximately adjusted comparison. and diluted First, keep within minority we’ve over and of and expense of our second quarter $XXX interest in a the items revenue, of operational quarterly when quarter assumed the $XXX will mind will you’re interest comparison easiest activity. share the below be guidance, as EPS million, expense of other slightly repurchase $XX continuation approximately line million such million, toughest

XXXX. Our line tax assumes effective the guidance also will rate in that remain largely with

the year. exchange the in rates XXXX effect assumes that year guidance current full Our foreign of remain for balance

rates give Now Solutions before turning revenue expect to the at Solutions X% XXXX. Tech you year & between the first R&D XX%, includes expected CSMS is and year. reported between quarter be guidance, for a and We in currently reported to pass-throughs. growth look X%, down be let growth segment XX%. me Analytics recovering revenue weaker headwind in growth be to and to about which from later reported revenue earlier the XXX-basis-point growth XX% And

to first that XX.X% million, guidance that to $X,XXX growth Now be basis, million representing revenue quarter as All FX three we’re between to this On end assumes for of and in expected the $X,XXX the reported rates providing and past, coming also of constant XX.X%. constant the XX.X%. segments and through should quarter. the remain quarter. is rates quarter Adjusted is adjusted XX.X%. fourth currency to be EBITDA $X.XX $XXX saw to $X.XX, XX.X% $XXX is be million in to million, what representing growth and up expected deliver EPS finally, similar between diluted reported we expected at growth XX.X% And to between the

revenue strong segments. on posted fourth both our results metrics growth of quarter key TAS We fourth strong in and to financial in summarize, R&DS XXXX. So a delivered we quarter for growth and double-digit top with all that’s mid-teens

that, adjusted up growth, see back and closed year, in EPS We activity margin undrawn full XXXX, and a million quarter with posted R&DS including $XXX reduction it cash. XX%, for a double-digit flow revolver the Our leverage robust leverage Operator session. Q&A for to the let we times free billion, bookings our and We for our diluted for improved quarter X.X me year. further strong year-over-year. growth And a net revenue liquidity continued And of an XX-month and ratio. position, of to and healthy $X.XX $X.X of as over hand very a fourth the cash to we with R&DS XX.X% look the over expansion, billion backlog $XX.X adjusted billion net XXXX EBITDA trailing

Operator

Robert [Operator Sachs. Instructions] Goldman Your first question comes with Jones from

is Your line open.

Robert Jones

the morning. despite of portion correctly, business, management Good the Great. evidence then real Thanks of be coming was other not it by acceleration of sustainable in it that and taking XXXX of kind work And really heard questions. curious guess on for I on real to in segment, seems guidance helpful? would world for assuming, driven this in the XX% sounded thoughts healthy I’m world my of constant from the maybe like guidance TAS, TAS? assumed if like the some I’m record just quarter TAS a any just I into just growth be you good the what’s fully how Ari, the X% government. back. might And advanced evidence of pieces currency outside

Ari Bousbib

Look, came we were there more a right? the the business, halt. general, XXXX only Thank real insulated from world much CSMS, of had has COVID had the So, data, in essentially you. pretty than know unaffected, that issues consulting, been TAS, pockets R&D which or you we noted, analytics, as to events and were Yeah. all business impacts where management -- during

let’s was as work about, the due, basis is sequential incremental to third COVID-related the quarter, it, activities. points rates that a you in quarter, already return we growth in to growth growth know fourth had TAS the The increase X.X% returned normal think, entirely noted, in from the rate. call normal posted Now, business in growth which currency fourth quarter. third in to constant I quarter the rate XXX It underlying the

we this the So to continue contribution pace same first into expect incremental the about quarter.

work It’s into is work now, But similar similar XXXX the we that’s you XXXX for quarter in that sales for built can the we work, the of see TAS quarter, the COVID not that’s does change, mainly using our the governments, quarter to in TAS in that my stop -- is bulk a in of in I guidance. second could no R&DS, analytics the and there it. you, this that to essentially include in and our COVID has going work give fourth crisis. have faster second real related execution right? that by bit to, in COVID to and I It’s what of so in guidance still projects remarks. Now, but COVID tell work right we of in of for the XXXX work visibility What COVID to been authorities The abruptly. half little It’s year, early the first the people the in the real for terms the and introductory way? as world work support described FDA management is the

-- as scale have forward. also to going we’re go-to-market be and we’ve guidance. testing in of work world. -- Asia, the of going offerings diagnostic assuming guidance, and other -- to patience set away be that’s prove Europe but we COVID And intend it’s large could expectation continue go that’s monitoring But not We really middle to our year of expectation we developed to governments, a could that new for in and capabilities an similar and will type the the have around of that built by that again, performing an I the which certainly again,

Robert Jones

implications on of target, COVID thoughts similar R&DS the R&DS And on past but Ari. if about could been you’re for has COVID kind the just non-COVID-related one the would in I No. moving ask appreciated in I a similar be thinking That’s how helpful, question. versus just the guidance work work or that know XXXX. side,

Ari Bousbib

Yes.

anticipated double-digit accelerated, but I we COVID So, the pre-pandemic. in the significantly new look, to high growth always TAS not again, work single-digit R&DS is growth. growth in TAS, contribute said growth to mid just as did that it mean, normal. TAS We’ve accelerated Obviously,

we you expect We we to did back the eventually reach gave, to TAS guidance X%, business. But gave high growth If XXXX. in and underlying the guidance X% of the that’s June go single-digit long-term TAS XX%.

the the it harder the R&DS, it’s been to understand. MDS, of business R&DS would be with COVID business, what services to look trials right, been that’s COVID the determine to a COVID would say, would work, without our can privilege way, as growth other as course, well. on, large in Now, Obviously, at had underlying hard the also, the without that there normal have have mid had even that strong and been essentially it’s been growth. work, would work to by to fourth we’ve R&DS very double-digit misleading because in absence you quarter But the have pushed the we right, --

in require of conditions. are which course, there delays. we and R&D or are safety are need the COVID do all are are be vaccines programs populations variants regulators, meet to developed issues for a targeted there’s expect work specific us and at into are treatment continued that work. commitments of There vaccines that of or to to because new virus. are demand. with novel for There vaccines maybe events also needed global adverse case XXXX post-approval of that And manufacturing Now, manufacturers XXXX, quality alternative through multiple There for being

have to backlog we of look, the execute, large Now, XX.X end billion a XXXX. at

continue backlog next we to revenue from ability improve. continues and look, improve. have backlog to the recruitment The are, XX got Site this has that will We patient on and ability existing increase. startup execute to month

pipeline is guidance. XXXX this basis guide for COVID The opportunities, good revenue R&DS very So, showing growth. strong. our pipeline opportunities of all of we provides is If our exclude the

oncology double is least Cardiovascular XX%, growth. digits double is strong and very strong example, pipeline growing the low-double up the The at very, mid double-digit is digits. pipe diabetes CNS XX%. in digits, pipeline For to

happens not suggesting we off So a post-COVID? know We’re is cliff. what if question that your falling

obviously. majority vast COVID, not We the backlog is have the -- of

at COVID-related for represented in work services our it X-X. XX% bookings exactly XX%, of the quarter, was think, for look our bookings. first except and between obviously, XX% quarter year, every And the you I XXXX, If

all So very good we post-COVID. even therapy our solid to and expect across we areas continue in R&DS to Thank strong you. business book growth very, continue

Robert Jones

Ari. Thanks, Great.

Andrew Markwick

can in the Operator? next move we please, to question If queue

Operator

Yeah.

Your next with Tycho question from comes Peterson JPMorgan.

Your line is open.

Tycho Peterson

first think follow given but talked start previously why about up Thanks. you pandemic I Hey. lot picking on of have you lingers, up real evidence need were the more people a symptoms, understand that, severe vaccines question, world the actually a Ari, just to as rushed to market.

curious that So growing and you real the to as world drop there being a off given I’m be just to why quarter are evidence? about think first most piece peers strong after pretty need year your will for seems talking a it of

Andrew Markwick

Yeah.

Ari Bousbib

Yeah. Go Yeah. Yeah. ahead, Andrew.

Andrew Markwick

I I I earlier. guess, mean, Ari think, Yeah. alluding was Tycho, to

severe still we look, very this then but a it. COVID that to ahead other as prepared have of our Ari drug environment on, early and of been remarks of the the with And their obviously, its people the we and contracts. said, patients. we’re aren’t ourselves the work quarter second and growth population what as of treatments his looking our sight could therapies he in with been the people saw moving regimen symptoms the to year doing fast beginning, or don’t guidance, have kind in obviously impacting It’s want execution think I have I we’re maybe in bake and on is mean, at first work COVID we how and good at and FDA get we anything quarter and mentioned it’s change and into fast line TAS. the into in expect repeat

seat here. got And table the so obviously we’ve at a

of we’re Ron, governments that you world. becoming don’t choice and want We’re just talking think think of and we I around the kind I anything have? But other if think government here of of the ourselves to ahead with get else. company means to

Ron Bruehlman

the Yeah. up in very guidance, pop Yeah. we add, would we’ve this things is and environment but our to, what Tycho, time. fast I that have visibility direct all just moving included a

change. could it So

Ari Bousbib

I yeah. just mean, look, like. It’s

picture is to it We’re are as that the crises, right? work, I excited, bad for super delighted mean, have strategically everyone. broader was, as COVID this because these we here

company company, of we’ve for -- terms this situations our like In almost existed been like it’s this. talking

our side, investment governments, sudden, sets commercial capabilities of that And All -- so bigger to going clients our side relationship strengthened. a be needed has expect very the whether been the spent And on R&DS to world clients and side. we’ve effort capture developing, or what help on side. are R&DS on an exactly our it’s the and real to again proved pipeline on This much spend with and capabilities sciences the the of we life demonstrated in commercial both excited opportunities, the help the sets forward long-term have industry. on of we continue into and of was share of ever to really to very the side the by been

Tycho Peterson

helpful. follow curious on trends, you I’m Okay. quick where ups, in terms of stand recovery two accessibility. just And then That’s just site

of was it coming out XX% think XQ. I

OCE? curious So think Thanks. hear mentioned where then, about you with how didn’t just separately, and potential I that rollout And does that stand today? OCT. synergies we I’m any should

Ari Bousbib

your was question. the first What -- what -- your was first

Andrew Markwick

First site. was question on

Ron Bruehlman

Yeah.

on the access XX% to remained was site number. First and fairly question actually close site access

Ari Bousbib

Right.

Ron Bruehlman

just learned We’ve to it. ways work around

would we it expect Although, improve to gradually.

Ari Bousbib

Yeah. the access worst business, less like moment at I really look, than as of mean, XX% our you when for huge the in -- know. were the trough in we the that crisis, -- and R&DS created of headwinds first the site

we the had access. -- that that And gone that XX% metric, of have news to at XX%. we site the told XX% we access. about call, the at up here end kind earnings we remained quarter would Second bad of news third good And at you site quarter, not it improved were we

new our access, good the the of the it’s However, to these because news was been really to we and research nothing. site level But looked up But -- we cetera. delivery XXX%, today mass with that which versus because about main not again, gone to this remote got other around hasn’t here can networks, of ups, we running material is found to of much capabilities the can work prevent critical of the we is where site again, metric it’s why we’ve out right, The yet we site that disruption got sites, that services number found sites think are back the are the that beginning it’s hit. monitoring reason frankly, faster We’ve we and metrics. there in then of flare all when it relationships, we at a clinical pivot pandemic is general. you’ve whereby learned is without not so much that but for because work around et all the and our access, pandemic remote monitoring now,

you another virus. this of that levels the had good halt, looking which metric news. Now, or now activity, hasn’t to come been a to at is pre-pandemic look And due baseline increases we back also there new if is from at, were extremely to major COVID any the which important variants cases and change startup that’s the in

essentially here another those strong very startup, work and the activity, levels learned So have Patient sites to are pre-pandemic with it’s we see to pre-pandemic close patients changing. essentially the don’t important metric. returning but essentially to we and very trends virus site are Obviously, people to and lag recruitment, startup back levels. that

encouraged we’re again, very So, by that.

You have question another on…

Tycho Peterson

the and… rollout clinical OCT trials, Orchestrated

Ari Bousbib

OCT.

Tycho Peterson

… you about think how that? do Yeah.

Ari Bousbib

to in remarks the really that, my been here context front trials, virtual brought mentioned of in technology has I prepared Well, COVID. our that the Yeah. Yeah.

what portal, suite, go with through There digital then back there’s about you on trial virtual with and blocks. is four have monitoring risk-based what the trial -- OCT is, Vigilant. Then e-consent, study where a there you with really is management think the suite digital Then don’t the essentially -- suite eCOA, with the and and you the hub. the on site payments, is have patient the pin to compliance Smart suite RIM focus CTMS, digital ETMF. the site patient the which If step has that’s you

first shortly, in the most quarter, the trial technologies second the suite during So went site patient suite suite technologies the end likely will suite, of live And XXXX. in beginning the and the year. be quarter going our our compliance this management of of live

compliance, very strong live management the will these on live this they seeing and to probably site, are trial patient clients. the we April be March, are the all timeframe be all four year. again, the XXXX suites, interest And So, during went and suite

in increase not for the an suites whole for RFP seen activity products, individual or platform, just OCT standalone have We but for platform.

live are We [ph] are and segments report of answer is, will the and of products your second AVP operational mid the tuned. interest most customer stay by question be more on the we live quarter. But to seeing We’ll on all for the fully beginning and it that. and large,

Tycho Peterson

you. That’s Okay. Thank very helpful.

Ari Bousbib

you. Thank

Operator

next Ricky Stanley. question comes Your from Goldwasser Morgan with

Your line open. is

Ricky Goldwasser

Yeah. Hi. Good morning.

project So backlog when we back benefit. even COVID improved the COVID benefit -- conversion clearly

patients you designs, and about think potentially talking when we question, or that patients to then the expect pre-COVID the pace impact it any on is of the XXXX, coming we we of design like the back when sort pre-COVID to Are But new kind of about starting we vaccinated now And the to as over as would of should X.X% people recruitment see vaccinated. trial. of when to mean, that backlog level? XXXX are XXXX? impact to patient trial the how percentage Should think trial I relatively you how population that at still you on sites be recruiting are see clearly second So seeing more fact about levels? a back the right more low second to you’re conversion about and spilled half think

Ron Bruehlman

a So, bad Ricky, was there. little We to line you pretty bit. hear struggling the were

I Difficulty] getting and in up of the of question -- and back people recruitment and besides. terms around pick we was population your part the seeing guess second returning expecting patient [Technical are I think

what from I seeing… think, are we

Ricky Goldwasser

in So, actually change someone about compromised trials? the designing think vaccine, question of has is, be trials? you guys If vaccinated. that are this if think -- we and about is are sort a it, might that can’t participate mean does they COVID If how individuals

Ron Bruehlman

No.

Ari Bousbib

think No. so. No. I don’t

Ron Bruehlman

No.

all of seeing think it’s I and… that general part recovery the we’re

Ari Bousbib

No. Yeah.

Ron Bruehlman

the we But seeing. way are

Ari Bousbib

the But another And offices that a with no. I negative or with same healthcare it mean, trials. would or just -- doesn’t then with that somebody been professionals. -- a design the It second test to a design, sites patient -- I doesn’t have element would change antibodies. anything to or the to first... be change the the the anything of allows mean, interact access

Ron Bruehlman

was Ricky, we What hear side? on to our -- was I of part struggling first the question, really were

Ricky Goldwasser

the So first think clearly conversion, one was, about backlog if you backlog conversion…

Ron Bruehlman

Oh! Oh! Yeah.

Ricky Goldwasser

… we COVID. excluding in the quarter when even

we half return timeline? early XXXX model when about you it that the in levels or the -- think second pre-COVID XXXX we do when X.X%, of time -- So to to should expect is

Ron Bruehlman

to really burn, any on it backlog conversion adding Look, on model quarter. depends much statistic how tough like, backlog backlog depends out, the we’re to it a because is because the in

conversion guidance what is to of that. question how much burn there. from So But to going not work. during depends year, just difficult much we be other tell you than goes we up course it it and to the do, don’t been guide But to burn it’s the the booking a goes provide the than months because booking, because XX also like, take you’re burn thing. work and think down. you revenue allow have There’s rate does lot, particular happen the we’ve backlog next the to no on it’s rate, about quicker COVID the Yes, a if do obviously you that’s a to backlog tried too bad to recently we how

we bookings additional be the book of remains a COVID-related normal as of see seen work, of we COVID-related And question how the would more much through would I which still on going work in we’re yes, and was XXXX. mark. That’s So, you service rest of think the rate XX% XXXX to faster backlog. still a our burn go it to I about mentioned a burn expect

Andrew Markwick

Thanks. Thanks, Ricky.

the think we next question to please. move if can queue, I in the

Operator

Your next Eric question with Coldwell from comes Baird.

Your open. line is

Eric Coldwell

I one question and technical Thanks more very strategic one. have then much.

FX XXX I’m tailwind months who people the first few off, more ago? total that inbound bps of plus it. update. a could it us missed since today curious XXXX an The is that’s or on full just year be you for XXX guidance clear a the gave maybe was incremental couple bps in clarify, XXXX, update for first the asks I’m you So, for if getting FX guidance

Ron Bruehlman

if So at when looking currency guidance and look our when you growth constant the get a impact, at you’re guidance, trying FX to you’re ultimately, reported rate, it’s… to year-over-year take the

Eric Coldwell

Yeah.

Ron Bruehlman

… R&D, lower XXX-basis-point tailwind year-over-year. Similar to little that XXX in points in basis TAS about a R&D. maybe in and CSMS bit and

Ari Bousbib

He asking No. guidance… previous the is versus

Ron Bruehlman

Versus the previous…

Eric Coldwell

few see Yeah. so back, is, could delta? in follow embedded was guidance be the months just we a on the the would what That

Ron Bruehlman

guidance was XXX. Previous

Ari Bousbib

Yeah.

Andrew Markwick

Yeah.

So...

Ron Bruehlman

Yeah. Yeah.

guidance the XXX and points previous this to basis basis So, on points tailwind. goes will XXX

Eric Coldwell

Perfect. you. some break Thank been you flow am pieces. more big seen I the maybe and I know Ron, very question, much focus -- trends little positive it’s improvement the just for a really for last into it’s I here over been know, few in We’ve that. cash interesting A you this here nice hoping can quarters. -- two I’m

fundamental maybe anything First that operationally versus, here pass-through off, parse much say, higher the quarter, core on the two, tailwind that the and driving work give perhaps timing number finally some And that little precise the of vaccine on COVID was number how in did could if a you was let’s or -- a out fourth of one? contribution more really specific us underlying improvement? the what’s get improvement from you that

Ron Bruehlman

put question. I collecting to our We structuring billing -- flow flow dent receivables, overdue of also them processes part Look, ball our persist of and put And the off improvement a bit little XXXX all was bit. And of eye a in the fashion we flow and much on in of place, substantially but a our cash performance. of collections of our and in has The quite see contracts, driver, built focus that the timely lot you in so whole helped earlier. can a overdue we a a the to in lot the lot put -- we driver on our as our that took a from that’s which And quicker, improve cash on good that in which was bringing cash focus pretty statement, we’re should effort, of combination collections free receivables. principal more a able due it’s fact, in XXXX. think put down

have to continue and we But We expect to on to emphasis improved it. our put that continue. we’ve processes

cash as would high. cash terms to so net cash XXXX did was net strong a income in XXXX as a cash you a is amidst in adjusted the net benefit as that normal more flow But in very it it year. percentage that’s at our of bounces XXXX very around. as me, had did a lumpy, year income, excuse something We advance lot COVID-related percentage percentage fundamentally, you of customer in future. and conversion continued you that the bill when important, a net We be going that terms so in able we’ve should quite XX% a But improved XXXX. flow percentage cash of is work from to in won’t into as unusually probably advances income free in Now of target income, look of benefit XX% quite and strong see I the bring that some identify which our being -- flow, a helped adjusted of XXXX flow.

Eric Coldwell

That’s guys. Thanks, very helpful.

Andrew Markwick

Thanks.

question, close more we hour. one we if think can please. the to But are I coming take out

Operator

Absolutely.

Your last question comes UBS. with from Dan Brennan

line is open. Your

Dan Brennan

for the you. guess question. Thank One was Thanks two-part Great. on I a taking question. OCE.

there. just talked what’s and kind see if any when guidance OCE about begin timetable to it? we you to-date, wins the and show generate progress do then in when that discussed do to color not that baked we So, in wondering XXXX on see deployed begin of revenue XXX about was and with obviously, continued the you I’m up traction then

Ari Bousbib

Yeah.

continue marketplace. the created keep XXX very three by environment see We Obviously We had to two client Total So, in of it launch. sell. times we obviously, good again, and should the to out, traction difficult winning wins deploy. to despite XXXX win pandemic, point time out against clients competition. takes continue we in the I since XX

We which we are large before. clients deploying disclose

with deployment global Roche. a have We

We with U.S. deployment have Operations, well. global Nordisk deployment as AstraZeneca Novo International

We deploying pharma teams. other XX top for a deployment that’s globally for the pharma medical top have another XX in companies and country Asia

this not but I’m -- tens mean, is have we do I of already should users if we have, thousands already. sure we So of number, disclose

where billion Now certainly, we expect it but complete is it revenue in through the XXXX, very growth. over strong area $XX.X move as And implementations. company, did margin no, that providing an significant is time drop needle on not we

much implementation. drop revenue a and to know, we starting to through we’re it’s license and is -- you As increase attractive as will becomes complete it continue more driven that, deployments but the when see

sell. to continue we Now,

technology So the you company, require for We we the HCP the And resolve saw the it. is know, is also which I that will HCP same management, as any compliance. engagement as model, implementation. the expand overall mentioned strategy and and land

additional We are expand. and modules to continue launching

then OCE, OCE continues anything? So just it to the and centerpiece was it’s of Ron, kind not grow.

Ron Bruehlman

just growing broader a that. much as it performance mean, I saying, business, as equate media, about your just But Ari tendency have payer management, Yeah. about have lot tech management, lot clinical tech tech and I a -- we have have talks then all a business compliance, across say, well. Yeah. then information wanted provider our we sometimes we we’ve was competitor a I it social and segment. we OCE, in a talked to to think, with that that because a space investors

So, more that tech IQVIA. emphasize a OCE lot is the than just just to that want for

Ari Bousbib

Yeah. Thank you.

Andrew Markwick

Thanks very much, Dan.

the at of top now. we’re So the hour

to the for time questions and Thank forward our taking join with on be the any of we’ll might available everyone. first earnings us follow speaking that quarter call again and for everyone, look rest take the to day you up XXXX have. you today we thanks, So to you

Operator

conference This concludes today’s call.

disconnect. now may You

IQVIA (IQV) 10 Feb 212020 Q4 Earnings call transcript