IQV - Earnings call transcript Q1 2022

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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 First Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. you. Thank like President, call Communications. Investor now Childs, to turn Vice Senior Relations to would over the Nick I and Corporate Mr. please conference. begin Childs, your

Nick Childs

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

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

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

Ari Bousbib

broader despite first quarter Nick our results. financial that thoughts the discuss situation first Ukraine, is in good for note, this has the from of patients results today environment. Thank has and the morning On very macro support IQVIA our you regarding everyone. affected Thank around the our relocation concerns tragic We've safety ground the joining employees, with quarter the you, and the families strong in those and the well by and on all employees services the supporting financial actively their being been and we been ongoing assistance. evacuation beginning and and support, events. our to

we work. their example, payments of any bonus actually to our perform ability accelerated continue pay For and employees there, to we regardless

are In utilized to support addition, crisis. help capabilities resulting IQVIA being refugee the

have of providing on to are that support we to region patients In medicines. remain who patients Ukraine trial medical and refugees local countries treatment course their protocols. and help, identify are medical to medicines of generates the that sites Ukrainian with a ensure these on of those we've local established and our in-flight to products our are very and whichever trials To search clients support list countries free able to the the working clinical are equivalent. strength, we've professionals across of online surrounding in continue continuity professionals product entering medicines depend their on in service these a name, prescriptions with vulnerable and a been and effective clinical into who in Ukraine example, the ensure tool receiving prescriptions and the ingredients, around country the active to customers, for begun For Also, to convert information product closely our treatment seeking delivery matching is. suppliers ensure region

ethical ensure continue. already are concerns of trials. patient in have investigational direct enrolled to guided In we the patient We and ensure call clinical order patients patient products by established shipments to centers medical can of to in care Russia, safety

products, medical procurement infrastructure and of impacts of investigational utilizing samples care. and the patient logistics country into are our adverse minimize and We to to facilitate movement potential lab global kits, to out the

phase, we and X% of in countries, customers. or of little on global approximately from some Ukraine guidance. described, less that come we just are disruptions the recruitment Even startup studies the based early operational with Russia, are revenue though in into than will our to overall our redirecting updated For patient a have impact which financial consultations I X% incorporated and our have both other our patient countries recruitment

we will Now, and another in questions biopharma release forums. key of the a earnings for those environment. funding addressed multiple We since February emerging know, has focus the you in quarter, our in been number on area investors have as received topic this

our we have XXXX. concern same us the points. EBP private Number seeking contracts, observe up the and a) their the in relationships third the that assertion this mid However, slowdown continued on capital and focus, reduction to a in want opportunity are and according XXXX that cash again I take on own there XXXX of I pharma EBP the observed industry there EBP have comments been about funding on EBP in activities reiterate from once with step often companies customers. ever overstated. acquisition Association. venture of and start funding a but to long-standing that company's XXXX, four to the IPO with these the amounts Capital environment key compared Number specific and stating very funding in funding in the is market companies when b) by to one, or National the large benefits and some large as topic also with is I'll the two, EBP these levels lingering a our to frankly, XXXX will exposure firms I have markets be segment. the this support public the and funding to record cycles has first highest environment quarter questions Venture strong strong funding of to was want

Checkmate us when history funding EBP by of recent does seen it a on our In slows, Regeneron, effect significant acquisition which not point. three, very the this Pharmaceuticals fact, that you tells have business. illustrates may Number have

IQVIA in in the we For pipeline unit following we four, unusual EBP RFP unusual or in number no when our simply net any unusual delays activity, no not any look in example, growth, biotech saw activity, our finally, revenue new last funding either interruption at and XXXX, cancellation And have nor slowdown, increase cancellations. business XXXX, seen making. slowdown decision no

from overall show XX%. dollars in fact, continues up the year-over-year, strength. up quarter clinical over were RFP In dollars The were trials RFP broader our to and industry seeing XX% EBP We're R&DS quarter as that's you trial therapeutic in by predominantly is EBP. area, well to compared which X% a up XX% with sponsored year, the know, last in a oncology first start starts, increase

of those me the make four exposure X% and XX, EBPs most EBPs that Number only March IQVIA Now, as want came one, The point pre-commercial our and three, and focus science, And course and viability EBPs, I for rigorous includes, quality our XX% to pre-commercial extremely on vulnerable that exposed to and to exposure commercial pre-commercial less have the in another progress here underline history, are and specifically vetting of with three the revenue, but environment. not RFP zero let backlog. a a represented thorough. over example, dollars the our which own Number funding is payment the minimal, pre-commercial of of to are this R&DS review want of on clinical for of clients points. their quarter our to total process taking balances, developments. process also overall than two, I EBP just is same, out for EBP cash Number from EBP.

knocks both basis organic total basis. across an you year on partially the at XX% first adjusted prior three primarily virtually million kind And numbers me molecule And headwinds. battle. our our revenue in the above Number the related So, core for driven excluding exchange our a again, to from that and on at detail that a his IQVIA's COVID a at results. impacts this segments. interesting, exposure is by quarter first background, was who offset and will course said additional into The COVID makes delve commercial our of remind those for X.X% our businesses was years, X.X% currency. simply let R&DS midpoint EBP With provide there the exposure constant all guidance reported know, range it foreign four, segments. commercial will grew door work zero segment. by performance Compared every of Ron quarter you grew currency operational of our about for of beat constant $XX strong think that Approximately company three including remarks, side. differently, is each they XX% on now into Revenue pre-commercial comes as I businesses. of not with our

initiatives. our First productivity quarter as growth, grew as well EBITDA adjusted revenue reflecting X.X% ongoing

business indications deployed. familiar supporting recent quarter clinical guide, new industry. advanced which was pharma treatments diluted for expertise been In connected how about I'll our on their domain these from the multiyear with for you're which grew our portfolio XX.X%, analytics disease entire with for before example needs IQVIA's want framework, agreement let's X% commercial a is and approved a the and commercial product and a update the We've quarter commercialization the muscles. of of start spoken to improvements. and of critical emerging rare autoimmune with and of coming of technology the side. and across leverages entered the EPS being in into intelligence give an technology the now with are adjusted the and operational has rare currently $X.XX the beat disorder I First affecting Argenx of of the we capabilities development provide $X.XX that midpoint above

real potential for to Intelligence severe globally. the product and upside exciting Argenx this year. the autoimmune U.S. in in has next currently development six diseases treatment with for regulatory launch a the clinical of of expand to Plus approved This three to potential. potential is launched -- accelerate been has Japan already IQVIA's world for has plans and It's support this indications, collaboration incorporates to up an Our in product development, with evidence, and XX commercial to the of support drug Connected other and Europe indications. lot in

Another Interrogation clients. that's And easy example problems over of date, will [ph] labor-heavy we DARWIN, strategic is simplify Network. DARWIN of Management and European ML and our selecting our our have client implementation. an sure you've clients help to I'm proprietary four evidence, real scientific pharma with [indiscernible], our the IQVIA to a This different solutions a for as real that Platform technology automation or of processes. safety, Information adopted it World our regulatory support It IQVIA's and capabilities suites Data is seen major or our on area us Analysis benefit of technology's world and a selected Vigilance In This more a the integrated draws and from win sites complex integrated XXX is capabilities, relationship and and Real selected healthcare Technology. client initiative technologies. operational deepen providers deep AI within is headache for EMA. methods will activities, our solutions [Indiscernible] To Europe. streamline a and one were Regulatory solve recently across IQVIA's technologies, expertise.

Clinical Technology, the IQVIA in decentralized lead to clinical continues Moving industry trials. to

recruited our of XX patients end-to-end Today, countries, being are third over XX indications. across just of we've globally. XXX,XXX services solution service integrated capabilities trials full over utilized technology Our and covering one on over

increase clinical or date, since one XXX have Clinical traditional to quarter. modules for Orchestrated decentralized technology adopted our whether of digital or demand offerings the launch. To continued our within over Now, for suite clients suite more during trials, Technology first

top clients example, largest payments quarter to clinical timely sponsors clinical key and of across of the This investigator Four these and platforms IQVIA's its XXX a our have selected trial it a sites for our now payment studies and is of major in of accurate, encompasses The solution. This kind migrate is award of pharma top globally. ecosystem migration ensures industry of in key several site legacy XX their all solution the trials. their and XXXX the One driver this technology. technology phases, processing. XX technology technology It transparent for both the payment is payment top satisfaction. modules a to with the with XX scale over includes entire across XX sponsor

pass-throughs This momentum the client strong highlights, R&DS delivering new continued record contracted pass-throughs. in $X.X including quarter our net billion these services pass-throughs. in of Beyond $X.X net over quarter, over of excluding including X.XX of see the first overall ratio billion X.XX, to quarter and a businesses book-to-bill bookings, business, of included resulting of

was ratio book-to-bill net contracted our including pass-throughs. excluding months X.XX XX pass-throughs last the Over X.XX and

grew of March a XXXX. Our $XX.X R&DS contracted as to billion XX, backlog in X.X% year-over-year record

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

us. across macro a As in note, Survey. trial is a business, was of top world you the see Site in environment. CenterWatch's of is can the related is there momentum XX deal final survey, the trial by XX,XXX On This clinical to score named performance world regardless sites reputation representing positive that lot This CRO for XXXX and strong IQVIA Global the the the Benchmark asked is the choppy overall other around across respected nurses, and rank big Over highly CROs rigorous professionals independent coordinators, a and industry. were investigators, around clinical a trial research clinical sites from attributes. in XX

we top marks marks, in comprehensive and clinical more trials, decentralized on and financial specifically, for technology selected named received and We performance. our reputation overall now patient for turn will therapeutic it are high recruitment, regulatory have been proud Ron? direct over high expertise. details I Ron and the to especially to CRO to our

Ron Bruehlman

Thanks, Ari, everyone. good and morning,

by Let's revenue. reviewing start

from X.X% at Technology constant was First was constant revenues year and and at about organic the that quarter currency. million COVID X.X% is approximately work versus constant In X.X% to million, $X,XXX business, growth currency. quarter for first about reported Solutions were XX%. quarter excluding revenue first COVID million basis grew XXXX. at XX% $X,XXX X.X% $XXX this down and both of currency Analytic up all which of quarter reported the related our last, on and revenue In was base a related the

of at XX% of was at currency rates at first excluding Again, $X,XXX CSMS work, quarter currency. expectations. with and grew approximately first all consistent Solutions Sales currency. in X.X% which FX all just Excluding COVID work, at X.X% organic was constant was Tech at XX%. related quarter and organic constant million X.X% COVID our revenue growth growth related in Contract Solutions or actual constant million currency and R&D up Analytic revenue X% constant and reported Solutions R&DS was Medical $XXX over

the $XXX was related constant in which move growth X.X% COVID work, currency of on for at growth organic the down P&L And single first reported let's was Adjusted all represented digits. mid Excluding quarter, million now. CSMS EBITDA basis. a

year-over-year Adjusted $XXX was $X.XX million, up earnings that diluted the diluted income and to per quarter, up up $XXX XX.X% net $X.XX. for GAAP earnings was XX.X% with was year-over-year million and GAAP quarter XX.X% grew income First year-over-year. net share adjusted XX.X% per share

yet new Now another delivered as R&D net reviewed already outstanding quarter business. Solutions of

a backlog Our of X.X% increase stood March an at year-over-year. XX billion, at record $XX.X

strengthening to were would quoted months that they during XX and to numbers of backlog from that year-over-year billion at backlog quarter. would the the and over next lower by to revenue increased affected been the just just months they and XX I say have Next I otherwise end note the were X% $X due FX revenue quarter rates is dollar than both

from of quarter as which our cash the year net was CapEx $XX,XXX of first $XXX debt cash equivalents and is now resulted the moving each XX, million annual million bonus free timing quarter resulted cash by in flow reminder, sheet, Okay, free was operations That first debt of a the gross million. flow was payments. balance cash affected $XX,XXX million $XXX cash and and million in $XXX in At totaled and flow of $X,XXX March million. to

program. ratio of our quarter with $XXX us the authorization share In was under times XX slightly which repurchase the shares, over XX $X.X adjusted we repurchased trailing Our at remaining current billion million net leverage X.XX of months March EBITDA. leaves

to move let's guidance. Now

XXXX, growth full year organic be full revenue caused million unchanged, excluding fluctuations related have the at expectation of $XXX revenue low to our COVID headwind mid remains yesterday's as incremental teens will FX February that constant work Since For year over rates. an of currency.

the crisis to we our currently the revenue to guidance Russia-Ukraine reflect are factors. be $XX addition, $XX in from to In we million updating million range. two these the disruption revenue Accordingly, range estimate

and For which reported, between year-over-year compared to X.X now million, revenue at the XXXX. constant X.X% to X%, we currency both growth X.X% expect million represents full $XX,XXX and be $XX,XXX to year, of to

guidance reminder, provided Analysts at a $XX and we million from absorbed revenue growth activity. a over provided in our we November. of includes just points M&A versus we've headwind as February, contribution QX in Now in guidance the the in call basis Investor Conference FX revenue Objective initial XXX

there the reaffirming lost we our guidance, our Now, fourth guidance ranges full despite between and of affected year-over-year or growth provided the we XX.X% such we're and year adjusted to assistance as XX.X% that employees. as EBITDA This call. XXXX $X,XXX costs representing to as XXXX expect revenue Russia continue and Ukraine million remain that be in to on salaries be and absorbing continue expect the macro at includes EBITDA $XX.XX factors at to million adjusted adjusted and earnings XX.X%. between year-over-year adjusted $X.XX earnings provided quarter EPS and $X,XXX that well our we diluted to revenue EPS Accordingly, XX.X% growth to to impact

Now, in balance April rates our ranges XXXX currency for that as full yesterday, of foreign year the XX, assume the remain year. effect guidance of

to as represented terms half in year-over-year for should first you second of year be a that that, I'll on the revenues, the our second compare revenues. quarter toughest last Moving and remind result COVID of peak the quarter guidance, of related

to X.X% constant million expected and basis. So reported representing $X,XXX $X,XXX for to be of basis to million growth revenue X.X% the X.X% a a X% is on currency second between and quarter on

what low million diluted projected to to full adjusted the and actuals COVID currency expect had and mid be and revenue growth up between EBITDA XX.X%. X.X% teens, organic we work is growing million, year revenue XX.X% $X.XX, is to related constant Adjusted EPS our $X.XX to QX $XXX expected $XXX with be consistent between growth. to in be in expected we to XX.X% Excluding and at

to XXXX. So against on first both had very results summarize, of quarter we quarter strong bottom a been very delivered line what the top strong and first

maintained low and digit teens this organic both double constant business base excluding work basis at Our with currency, growth R&DS. on TAS in growth related COVID

leverage convert the recorded over business billion exceeded rising time to for basis and quarter of EBITDA We XX-month us, our importantly, guidance. most with ever around bookings at trailing revenue to accordingly finally adjusted the very contracted billion a service on over R&DS maintained remain $X $XX ratio outlook X.X Our backlog in maintained a largest for we and months. first expected the XXXX over year-over-year bookings, times X% have profit next net full year despite XX its turmoil our confident

let it to session. over that, Q&A with our back me So for operator hand the

Operator

the first Coldwell Eric Instructions] of [Operator comes Your question from from Baird. line

Your line is ask open, a please question.

Eric Coldwell

very quick both Two much. morning. on Thanks Good geography. ones,

majority sorry to if how I'm XQ, love million I First, in get love region, Thanks I very phased then rolling or out. impact? $XX the I in in your in how impact pandemic get but lot secondarily, that market through perhaps on portion actions of talk what in the broke missed lockdowns the first guess, million $XX Asia-Pac that to $XX company faced you COVID impact given these and $XX annual much. ongoing the to projected we'd update then the significant how today? in the but IQVIA first about China, days year? would it, seeing governmental operating of of tell Obviously, is million is a impact impact that on And from assume and across most of with China a QX Russia-Ukraine, the early the sense you're you on the could to us conversation an vocal I'd was and when you're that to the million

Ari Bousbib

Eric Good Thank morning, questions. for and your you. thanks

less. the not of one, revenue like above Ukraine, On first X% we're a actually or well Ukraine our X% little is even

right? needs come cannot say. a it's time of $XXX might delayed. point obviously, I that quarter? to the start be call want of QX, back, we takes February. because a of some on primarily obviously It trial R&DS. and be said impact some the the the to it's conflict $XX sized that million just done million, disruption, because you $XXX how much continue or didn't and specifically, answer million, the it late and million, to than it So may it's $XX -- And, the obviously, at let's We world significant will So proportion out until in in less per question displacement of

So dollars few we not million had a of in impact QX, huge a impact.

probably it's shifting get the we end because that going million million it's in takes loaded we think we to right, a bit $XX Eric, than you little But that in XX You're and that start front the is should as year late to year, take. probably recapture always longer work.

you we're or the recovery of a find Ukraine, outside activity you not a lot but of XXXX, that new as know next. we end in huge So, the trial in back year clinical we move ultimately, know, work recover patients probably and early of assuming should and Russia of

Now to commercial. half of about situate just global that's U.S. is and on and half and about our with conversation, revenues the China, to respect X.X% China

Now went Obviously, zero, on intact. crisis our on, some shut the the of services but the the to business PMR, to analytics, rest saw consulting business, like commercial that technology, requires down China was in and interactions obviously virtually commercial of the worst impact, some the even face at pretty face no so business. when COVID take we of much everything to first, continued side the the

So concerns there. we have no

the R&DS were our lock is ability access the On sites. they to if obvious downs concern

a fluid situation. now right Now, it's

expanded because going Shanghai, very tell. no happening we these that so on or to down time closely where to We patient to for again, one limited ground. are the has be are -- again and access We've site been prolonged a mostly It's far. some visits, lock tracking long that's hard the disruption China, seen what's in to toward imagine can but

it believe when we deal development these our and Again, adept how ex-site happen remote we've that things trials, to prepared learned China So much, any of are address the that point, with Eric. were more at anything and taken confident with We our is again we relatively this haven’t to or frankly, there those outside will forecast like have situations. for cetera, other forbid you, China deteriorate. where this are the decentralized adjustments true same haven’t we et we China. Okay capabilities we become the comments to and God that's thank are. in be if we situation But seen Any guys? minimus

Eric Coldwell

very much. you Thank

Operator

Your next question comes from the line of Shlomo Rosenbaum from Stifel.

Your line question. is open, your please ask

Shlomo Rosenbaum

Hi, and question, that of thank expected you is my is quarter with what much year-over-year just kind the a bit and Obviously lower didn’t taking pacing the revenue little just does second that have mean Russia and very into get the bit we guidance followup. little for just pacing years roll with COVID just could one A have and a start I than want the as the that, it expected. then be same questions. level at the the of street obviously not quick the year? detail entered kind profitability of question change stuff Street the you way like you of off have insight that that and I guys that to you I headwind

Ari Bousbib

last his mentioned remarks revenues your peak you introductory thank Shlomo question, half Ron that included Look, the the good for I highest, first in Well, from morning. COVID. year's think

be That's the in. step The quarter. of year-over-year COVID Right? The biggest second will factor. one compared second year-over-year down, revenue be quarter will in toughest with COVID the

worst rates help basis, balance the COVID okay? in are a when quarter, reported for the numbers, you at, assuming on rest terms year-over-year with second with are these of the quarter if FX, second the consistent where out they you look remain out, you comparisons year, FX yes and of guys impact, the FX take But the businesses is again, the Secondly, in underlying me of…

Ron Bruehlman

And rate. because quarters consistent. you items of volatility basis, across look of that And very giving XXXX, out the that on the that we're currency really you're it seeing. that consistent ex-COVID cleans you very that's Yes, the organic, at why growth a cause when lot constant

Ari Bousbib

I So at currency again, consistent forecast the, be work growth, quarter. I low can so organic digits, be TAS single to will constant high mean, reflected again constant is again you upper COVID excluding teens. And currency R&DS guidance CSMS the built our our will COVID excluding excluding organic first in to and work growth. in very in single related what's due organic constant digits, due COVID growth, currency with will be related tell

So you're a reported included is actual on and consistent underlying COVID number work choppy the right a business the reality the little with pretty the looks pretty is basis strong. But sequentially. it

Shlomo Rosenbaum

great. Okay,

Ron Bruehlman

I the the is what line I pretty and with we that how our progressing Yes thing it's the expecting. other and gave. over Shlomo would say that, that's quarter much is the, guidance in mean were linearity exactly we

Shlomo Rosenbaum

given would our up the in the more advantage of share trends stock dips, you pulled leverage good mean, I lot. consider it being, a just, take taking have having stock you Okay, recently lower the business stock time. being really back perfect. communicated changes fact the like a a Then of haven't you stock the and you in a is at this just history price? price, and seems on the when is of period to another Day repurchases longer the of Analysts the But one for Ari, aggressive changed actually for you you leverage in target know, despite really the that know,

Ari Bousbib

know, ratio there We My maintain that. flexibility we're allows you you articulating, a and repurchases. strong. can to going us first factory do frankly, affords are more that, inclination very us generation. And a our buy, as that do thankfully, do both, pretty to share is is ability you've And cash which not is the pursue aggressively third it's will but to be and seen, that been lower to leverage flow

$XXX in over we first saw the million bought You for quarter.

windows You cannot time. we lot leverage frankly, are in level where markets in as be buy. We earnings I we and time any think there XX, a reported know, February the of Difficulty] we [Technical

but repurchases, yes we your aggressive So increase no again, not is, the to the answer ratio. we leverage question share will do will

Shlomo Rosenbaum

you. Okay, thank

Operator

next Your from Meehan comes Jack of from Research. Nephron the line question

your is question. open, ask Your line please

Jack Meehan

Thank morning. you, and good

big You the did through turnover compare been know, on of you're that? you comment the in wage labor. has How one and how your debates this trends just industry year for also managing prior versus periods? Can to

Ari Bousbib

Yes, the hiring the we're is backdrop, really, incremental before, And actively we that same obviously the obviously which to We've, well we've the about and are talent. interesting. given look, really meet experiencing there's of competition recruiting it's for talked strength trend demand. industry

up We attrition also saw towards like the end. the rest of pick the industry

has the stabilized I basis. And come at Look thousands a it year. look past We even kind we we these say maybe have employees start to weekly few would little plateaued of have very on it of employees a to and seems think bit. and weeks. a down recruit I and it over carefully track

acquisition in And Ukraine also demand. and from the So we actually Russia, capabilities be -- we to to places. these different to now individuals countries, we in talent increased do Ukraine, geographies, the this utilize other situation, fascinating back actually have and are repositioning at it able is meet looking them we

little are us allows really bit we So footprint literally a more our global initiative.

flexibility, world, we from our pressure initiatives in pass looking what we margin some know, our cards are and ongoing, again, we've DNA, global and the have are optimization cost rate structure, have to our cost RFPs can. around and into part you we out do moving also seeing because we increases on arbitrage existing for along productivity actions. we increases, footprint pricing cost continuing. to That's day increased day are those some optimize of We that's the ways Look, do but our where things as labor course, of cost to of some we

in guidance. effectively. So the -- to in that, the I dollar set bonuses our we've pay, the to cycle short higher point the not by on a worst cycle higher see all we're allows actually bonuses highest all But manage these we again, continue us employee our And I employee to of of pandemic. about that talking our population, combination and high And cost loyalty on levers of level, wage do obviously, aggregate fairly XXXX we this think to ever the that's these level of special level that that of I would a even the my out, maybe are already frequently, I don't company. and always of do, pressures that way, price levels and in our our pretty in I pricing mean, some to to market. but factored during reflect also but respectable the employees, in the we've situation want the which series businesses for aggregate we easier all very is level we longer is where satisfaction priced that, combination paid surveys, easier to seen escalations, businesses in on the they inflation already

has You of little fact, that. or one specifically that very not every done our paid know, bonuses is And year. in other peer my peers understanding last we know zero has

benefiting So that peer from that some as at and well. employee also has some companies, created we're other Exodus

up. feel going so we address we for so that are Wages including confident can And these situation. forth. lot your complex ones. competitive guidance. moving parts a our are question. on, in There issues there anything Thanks it's is attrition, So of here, But without a changing and

Jack Meehan

Thanks.

Operator

from of comes John Sourbeer question the from next line Your UBS.

is line question. please your Your ask open,

John Sourbeer

of thanks going was some quarter this taking and little business if -- for the may double year? the evidence on the year growth work to in a is still could talk you you real wondering my going world growth bit away this I just be to digit be throughout COVID going a Hi, questions. the

Ari Bousbib

saw real look, Well we Okay. growth. strong world evidence,

in TAS in continued which revenue are as you segments, you capabilities. real evidence pointed world growth. in examples, course, know, all evidence strong And Commercial Tech space, just over growth and several excluding organic in was how that of And constant as the the our be to specific technology client we are examples real unique COVID world and saw utilizing world drivers of aggregate. and of commercial gave general, I out, growth, XX% high currency You

evidence doing not? So, real world here the is numbers disclose or

Ron Bruehlman

impacts. there mean, driver excluding to any I COVID teen, [indiscernible] continues high growth

So from excluded the world we've for real the have giving numbers beginning. been that

So in growth that that see to the upper high we rates business and teens continue. has been consistently

Ari Bousbib

crowded now, last is while this you. pandemic, R&DS turned real and vaccines, cetera and works with the commercial extremely it's in work the step To true on and therapeutics, for revenue, COVID John. that on essentially us. to business. that about we've COVID and true refocused question, We to or to of your certainly government monitor see because But or respect COVID, said for business, down dollars been is side, exactly during commercial what our out a the the patients, Yes, talking we've of et true which COVID have that for world, is height track rest the clients continuing. for always their whether they understandably the

were we put was some knew there lot the have hold had addressed been when would we that exactly you is demand that's that a that be happening. and then base the share market expressed away, that time and what that And of what know, to you that what up at very a a we when lot that told business happening. well of that that As because Well, concerns would there go come is, back, needed essentially is happens? goes time of of strong away on that had Exactly that that projects you appropriately. pent

evidence, R&DS. it and it's Now on that's side true in real with the certainly true you. true is world commercial Thank

John Sourbeer

color Thanks, one just maybe there and appreciate then I the followup.

you thoughts those? were and on approaching or around there M&A areas businesses be any at levered, times potential are of do looking type X.X if you would that As what

Ari Bousbib

and allow growth. within can By Well, can has look, value. we add between long-term and we've of our growth when X been we supplementing We we or have that's and top the adjacent always add capabilities our over core record been us at our gave make look where are consistent. our is the acquisitions we line strategic way X organic you they markets said businesses revenue done, guidance, points to enter think

taken XX we what did want we We environment companies And were very an for they percent buy. in not businesses frothy, We the the despite a lot who you've find like worth. felt to high. where have say owned very unfortunately, time of than equity But the acquisition want long the those I plus now would those points a owners that did the to from the for do pay beating you market. want private we yourself that more at that we current not have valuations were to, away, got assets valuations of for entry are and walk we to always away walked did we was did now so in and environment look very attractive, rate at

the we is And of cautious when just business I always spectacular. time. CROs capabilities These to And have that those and the and be yes. before. up, we accretive our we going so, that's to attractive. going said suggesting now. business, that very is Having of but acquisition again, are for quarter -- been our were reach and very to at which the like we the are our spending we been that the done don't in us. -- the believe we've much acquisition We take that, lab business, I actually, obviously, discussed And because step And I lab come cautious we going bulk that are on doing to and that continue has if and know they as am financials plate significant how will operations extremely to correct, bought attractive, very look up necessary to lab extremely we of out assets when valuation our we premiums strong it's

OCE make suite, a to solution, as we on side, commercial the clients businesses digital side, in that commercial with the lot does more for most we're enable targeting the the with with how AI ecosystem the look growing, the is CRM the space. our becoming becoming not got, of analytics to with technology a to will intelligence no you akin On sophisticated, world We've as what side live, the lot continue our timely talking ongoing, of at a strategies companies in is sophisticated system right users longer the look we've right larger, the OCE -- point increasingly to consumer decisions right at the a a go about respect strong see commercial better, interest grow much message. is know, and how our on bought market at of time to our simple the competition, with you embedded an continue case oriented is basis to customer with

spaces and at that European complements enter be look aggressive will and spaces most where the or will complement those anything our position advanced, capabilities. so our U.S. commercial digital digital And advances it's to we in and enough we

strategic what that's you just you gave terms I So my acquisitions. panorama know, here overall of in

John Sourbeer

questions. Thanks for taking the

Operator

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

your Your line question. is ask open, please

Luke Sergott

Good for question morning. Thanks here. the

of Just cleanups. a couple

remind how what step an in by into did that the this year, might so have we you XQ down On COVID last XQ, you one, can I just paces guys idea the have ? and us, us segments, remind missed out

Ron Bruehlman

you'll go stepping the a the which government through segment, work, vaccine work involved monitoring different working We did studies projects But safety COVID COVID therapeutics. also projects. lot R&DS this TAS we related some have of are down mega In is as on in were you in know, recall, we and a year. segment, combination we hundreds we of and of

you asking type are numbers? of or revenue So were work what doing we

Luke Sergott

a just I meant just trying No, was the get to numbers. I revenue. the sense,

Ron Bruehlman

told I or like about are numbers and $XXX we you in million did The QX you now? QX was, now talking

Luke Sergott

a have I'm QX you last, down billion the right? what rolling whole off the just of step sense to trying get

Ron Bruehlman

QX conference you it slightly what in was was, And the over you can numbers which on and last the gave larger than last million $XXX call infer was QX year, we year. from that

Luke Sergott

for. exactly right. That's was All helpful. what I looking That's

more a little here something about there's it. and So as you strategic think

guys and going bookings. came biotech, going right merger, you the fat of tails you after the on when all started mean, after I So after the

tight given are you sense add to the labor so getting capacity levels And just at additional it's handle? guess X.X guys it's booking more I I to market. you're bodies business now record up can of when And of what of, understand hard a your plus,

the the right capacity a taking if kind work on know, to give of expect continue or now? type changed. now if bookings So climb this overall of to you're should that's we at us sense of how your And peak is you

Ari Bousbib

first if would of But know. I capacity business, as say all merger. certainly to we people seems in -- driven anything, Well I always you is this

since take Our content, technology same the work merger data trials analytics, clinical increased more is decentralized the people that in increase in our process we've in improvements with significantly, done dramatic. ability of to The has on because capabilities. amount of very

with our amount significantly work to people So same more is of the ability enhanced. take on

we pre-commercial EBPs, based on I the have turning With that able, qualify comments, somehow and that to exception, knock don't eager we see, minor capacity, I all with vetting the that. of introductory don't So our do we described on don't Again, assistance, our for exception are that what our frankly work. rigorous willing, take process. away my any minor at because before just door work, for and don't in

And assuming expectation. to to also dynamics the a think which is and continue completely share, conservative gain that market continue I we hope very we which I continue of very, a expectation. certainly, grow, underlying I assumption conservative market assuming So the valid think, a is,

should long-term, to to bookings over about the grow continue no question expect our it. You

Luke Sergott

Okay, thanks.

Ari Bousbib

Thank you.

Operator

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

question. your ask is please Your open, line

Patrick Donnelly

helpful to higher comes process you down you're on and to are why versus some like script. Hey, some thanks vetting on if Then maybe where you not guess risk like sounds taking see you competitors, be questions. that coming it I the you to would yesterday, who process, one business others your I think up, clean even during back out? And I haven't seeing negligible. the just to softening pretty enough of commentary is anything. it really internally? But just wanted that circle guys, it down mean, impact date, for be wouldn't EBP Ari, seen to did the your it trials kind diversified called

Ari Bousbib

of terms Look, merger, I segments. don't what gets their I not or thorough into our what focus be of the have backlog. beginning I'm on this know, know, speak competitors. the people terms industry going of in were market to in we lot we Look, other for from of a obviously going in knowledge more to peers said

again, recall, lot mean, If kind you never are the "contracted meteorites backlog. you making it are specific ever to I vigorous want came became switched certainly "awarded the forbid business", hope some God some hear that we from an more from of analytics. we from to, in booking terms I our business" I the a will we and we to our adjustment us, because bookings, cosmos hit of

You the haven't heard us, that from quite opposite.

them that. support fact world the course, over few love and all are, hopes There of business. these And us and thoroughly those they or scrubbed. the to we IQVIA lot numbers high raise going call to -- many, do just you biotech take our it. and or That's and are vigorously help deal tell are what are so, not have are many numbers call lot we are I a clients that of supported they And money. by and they don't of the order with we in companies to them our that to firms sometimes repeat, we're staff not leverage or that want [indiscernible] they'd even with

money in the they go already vetted could money. EBP a -- that have around that basis, looking a cetera. you come the one nice has case team, their of more the an that and know, scientific better the know, et often involved You very at with CRO, raising and CRO with, they be credible chances that and early the And molecules there is least an -- and stage at it a is management high hopes raising assertion

Now do we is do. don't Others that. simple. It

are there business. how between differences that significant we do So

not about that going not to capacity have to said we us. on issue desperate business, Someone take a asked we we're But this going anyone. I earlier is capacity. And not for for business, be so it's look, are

have difference. any have, So focus, you be And I we market you other comment? said segment one that do think Mike may as

Mike Fedock

comments. build to Just those on

clinical think, down scientific timeframe, know, lot take feeling in the inhuman data the first You a whereby that EBP stage is we more is the an basis, later on know, historical the whether and space. vetting to typically financial in both work in you the I mainly in there's in or addition you're nature versus of preclinical

another think So that's to benefit a [indiscernible]. I the that's

Ari Bousbib

important. Thank you, and very

Patrick Donnelly

it. really that's I helpful. now Yep, appreciate

Ari Bousbib

And first right comment, it's was small part a the our then company. very business, your of one, which frankly, overall is our

Patrick Donnelly

Right, the yes, Ari And just environment. understood. a on pricing one then quick

power biotech like there? concern you get nice is reimbursed? soften a reimbursed getting the trying Russia, terms as and figure some Ukraine, I know falls you delay there. that, You wondering, see still on it guys of And of maybe in of alleviates well? Just a as trials that Thank in off, the just you any and have on as sounds margin order, out know, you the what in back pricing that pressure near-term shifting year piece and then put through you. in there to go that's change

Ari Bousbib

overall, piece Yes, we are yes, of and that course. But again, a it's cost. small, small absorbing of the

haven't do to profit for to we and There's reason are planning that changed it. now. no can do We we our So outlook absorb not that.

initiatives. enough have We

disruption We now. that situation can that's it trials are so it Russia, and large enough, is Ukraine what, is longer we the normal, what on handle that diversified clinical enough

Okay?

Nick Childs

day for Thank the for and to everyone look any you. will talking free Myself next forward available you We feel Patrick. us I reach team for the Thank to so to forward you, questions, again our speaking joining Thank all you up earnings rest today. on of again look to call. out. the soon. follow to be

Operator

conference This concludes for participating. Thank you today's call.

now disconnect. may You

IQVIA (IQV) 27 Apr 222022 Q1 Earnings call transcript