IQV - Earnings call transcript Q2 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 second 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.

If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad.

to question, like one press would again. you withdraw please your star, If

this recorded. Nick is now a begin Corporate call As reminder, you Childs, being President, Relations turn may call Communications. Mr. Vice conference. like the Thank over Senior to Childs, your Investor and to I’d you.

Nick Childs

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

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

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

Ari Bousbib

quarter you Thank broader to environment good quarter of morning delivered our Thank second IQVIA Nick, for the issues. everyone. results. and global discuss this today the joining you geopolitical and despite results dynamics us various financial the macro strong

a key few of address me Let ones. the

you of funding continued the industry. the biotech impact on CRO of have to about Some ask

have several biotech in we funding recent said not impact business. the any occasions, significant our As on on decline had has

exposure to Our remains over backlog. just pre-commercial EBPs of XX% at our

on government-imposed on in client We slowdown bookings overall operations. the delays RFP lockdowns the segment the had any COVID impact or digits in clinical nor Actually, our from funding. have in increase the a mostly China, seen quarter. disruptions modest quarter not continued cancellations grow clinical RFPs, results, an dollars trial work laboratory biotech in or to In EBP and double from impact our to second from

commercial Our unaffected. was virtually business

been operational pandemic during experience has prior managing the impacts Our through lockdowns site in in the closures. on minimizing helpful

ensure the April. the IQVIA along recession. course In Our to past Russia, patients work with XX possibility monitoring, as patients broader trial continue over the in quarter. through conduct and recruitment a will of are in back of moving by has are crisis underway are we we the in in sponsors just to mitigate currently are employees would you, shown working impacts tracking continue resilience but ongoing communicated The crisis. and More the our Russia-Ukraine expectations guidance on of we we years, economic industry CRO that caused trials, to end sites note to safety while enrolled assumes generally, to trials other continued with to disruptions with the countries. downturns. new the I financial line clinical of third ensure to trials modest impacts that the the already of Ukraine, China we on In the COVID-related of safety lockdowns

never times well COVID-related recessionary The of course clinical clinical decades, quarter as industry grew nature research cycle industry upside. driven the by year versus of the X% primarily the X.X% second range revenues healthcare. reported operational the to will of and midpoint as business a Ron the including S&P an provide remarks, the our and The at some our business, year of long expectations, importance for each above the fully for generally nature $X as a our beat while as currency. Revenue and his at pass-through of CRO our With million in as critical whole resilience revenue additional of XX% over background, of a our CRO was constant numbers mission two IQVIA’s XX% well grew as and by defensive revenue on quarter. businesses Compared the annual reflects COVID-adjusted much second XXX let’s that review likely past base of basis as experienced constant on excluding more the organic as contracted guidance details of segments. timing basis. During periods, last decline. work both the from currency

reflecting Second discipline. and strong quarter XX.X%, growth increased our revenue adjusted EBITDA management ongoing cost

diluted Second grew our entirely XX.X% adjusted quarter of driven by EBITDA $X.XX adjusted growth. EPS

strong color Let driven by capabilities. the differentiated The highly more some performance and me business at IQVIA in provide the our updates on continued quarter. is

IQVIA’s for differentiator in you spaces commercial the and is As intelligence. the connected us know, clinical key

me how to few integrate action multiple most personalized clients XX%. data their a transforming healthcare with up engagement to best chose quarter, sources, and model you helps brands into platform go-to-market their next applications raw of XX solution their efficiency client transform leads IQVIA’s solve here course help a our improve IQVIA’s omnichannel of marketing medical the which across to data sales, multiple problems. countries eight our IQVIA’s relationships commercial examples top by recommendations pharma completely to Let AI-driven providers. personnel in give complex clients In deeper to and

their the brands. delivery client raw of content for healthcare optimize the Another directly example to one a were XX by we top to quarter, in selected brand respiratory of pharma providers

improve and highly metrics connects experience quality, digital to channels high deliver digital engagement here will This healthcare this brand client’s solution content sales field X.X results personalized providers. that in Our times. for by seamless

where area is been demand Another pharma co-vigilance. has growing

combines here and patterns safety-specific identify XX%. amounts client pharma catalog to our increase their to improving natural processing of efficiency data the to with mine risk by solution platform accuracy, terms the of language up non-compliance online top a over adverse vast data of events. and ultimately XX Our potential to to another unique and XXX,XXX quarter, In selected reduce

are decide their on Beyond pharma, solutions they also mass resonating commercialize commercial own their EBP to assets approval. especially when our clients, with following

a quarter manage and data EBP end-to-end their and to engagement client to modeling. management with support data and programs. leading massive management, patient commercial the access For This example, in provisioning, implement includes and entire we information data contracted their

offer XX% of ability generating solutions. Our versus services multi-vendor on up to allow a a integrated fully savings platform these to will streamlined implementation, more for

turn our to [indiscernible] to identify AI continues across the capabilities major misdiagnosis near IQVIA The in real These know, patient XX five outcomes. world will quarter, you will ML which areas. and provide and different project in awarded the improve medical As leverages IQVIA insights be project leader real-time affairs. treatments a evidence. In top insights therapeutic help in disease global pharma a

ECOA clinical voice the product Assessment Clinical clients more to thereby assessments enables engaged innovations. over has from ECOA, eliminate site sooner weeks that This includes our X,XXX patient’s our on-boarding won library prebuilt real assessments time. an patients with for deploy by or sponsors amplifying breakthrough outcome platform randomization patients, ultimately than of we patient feedback awards multiple allows couple patient platform competitors’ reduces risks XX patient reducing improve activities and five data a and its to this study sponsor Outcomes Electronic tool to to redundant As estimated which know, recently to XX%. workflows, our The you engagement capture offerings. to accuracy A up top efficiency timelines so compliance, IQVIA start-up

of X.XX billion. pass-throughs. the at overall services $X.X in in over R&D including net The recently seen quarter business, over second in resulted X.XX excluding momentum, of including the book-to-bill pass-throughs, delivering we we Finally, remained $X.X quarter, total new also pass-throughs. ratio continued bookings have our and This of high strong contracted historic business the net billion a as

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

see, portfolio for of our be and strong business to unprecedented now the momentum clients the continues on businesses to financial and our it Ron performance. you an our there across clinical across positive with commercial despite turn As level more details I can over of will environment. engagement broader

Ron Bruehlman

morning good and Ari, everyone. Thanks

Let’s reviewing revenue. start by

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

at was reported organic excluding TAS $X.XXX Excluding and X.X% constant second all in development of COVID-related revenue at constant Contract revenue quarter declined growth X.X% $XXX was constant COVID-related medical of but grew sales all solutions, currency currency. XX%. up billion XX%. and Research at currency in solutions R&DS work, X.X% growth at currency, second organic or reported, constant CSMS quarter and was X% work, million and

currency in CSMS growth X%. organic work, COVID-related all constant was Excluding at

on first analytics a our and $X.XXX Technology constant half First and COVID-related reported organic currency. half In constant billion for currency. at business, half was billion, X.X% growth revenue was reported for X.X% up X.X% work, X.X% basis is at base the of grew constant that the and excluding first all revenue $X.XXX XX%. solutions at currency

half at at the Excluding up R&D first constant FX at for all COVID-related rates revenue actual work, and was half. XX% TAS of growth X.X% X.X% in $X.XXX constant solutions currency was currency. first organic billion

work, in at was all Excluding R&DS XX%. constant currency COVID-related growth organic

contract solutions, revenue declined X.X% Finally, X.X% reported of first sales million medical grew and currency. half $XXX or constant CSMS and

in growth organic work, at CSMS constant COVID-related all Excluding X%. was currency

$XXX billion, XX.X%, growth while the adjusted Now move down million, the of up year-over-year. XX% $X.XXX was EBITDA first EBITDA half let’s Adjusted representing in P&L. quarter was

million net $XXX earnings was was GAAP and share Second diluted income $X.XX. quarter per GAAP

million to For and per of the half, of adjusted net had diluted $X.XX quarter XX.X% earnings first second earnings $XXX Adjusted share. million we was net the grew for or $XXX income $X.XX. share diluted income per GAAP

million per or was adjusted For $X.XX net half, $XXX share. the income first

yet our few As currency actual R&D the that we’re past another backlog This shows it years COVID through showing and of quarter the growth demonstrates graph sustained clinical over new of strength here strong rates business delivered highlighted, our solutions pandemic. business. already the at of the

a spanned concern told we be you as and of You’ll levels then therapeutic you bookings in recall by that’s pandemic, expressed our new happened. programs during replaced about COVID that bookings fact of a our what many cliff, that so-called breadth would record reached the that COVID-related our and expertise, looming

As contracted increase June of XXXX, backlog, a our record our X%. $XX.X over pass-throughs. is contribution early COVID three XX, at The a about XX% billion, to backlog in approximately peaked years. XX% at now which That’s including stands

sheet. Let’s turn to balance the

debt $X.XXX As totaled equivalents XX, billion, cash of billion billion. debt cash and in of $XX.XXX June net and gross $XX.XXX resulting was

leverage XX net of June Our was EBITDA. times months XX trailing X.XX ratio adjusted as

capex $XXX somewhat mainly Second we the prior of $XXX and normalize quarter. cash and expect to of quarter million timing reflected was which the cash half. collections, lower cash second This flow free resulting million it flow million, $XXX in in from the operations for was than quarters, was

our market, year-to-date repurchase the of with program. You activity This under puts authorization were in in $X at $X.X of active quarter saw shy billion. repurchasing of $XXX repurchase and just our billion remaining slightly current the million the us leaves that over share shares, share quite this

year translation $XXX since approximately revenue constant the as our unchanged. guidance, foreign at million, on full the currency revenue from currency April expectation has an On reported headwind of incremental rates Monday, based to a dollar of Moving this caused XXXX XX. basis, remains July strengthening full-year of

revenue our updating this. guidance reflect to We’re

actual X.X% FX billion, year, currency represents we to at For between to X.X% revenue expect constant growth year-over-year $XX.XXX and rates. billion of X.X% the which now and X.X% $XX.X full at to be

to excluding to growth COVID-related work. low As this a mid-teens reminder, currency, at constant equates organic

revenue profit, M&A. XXX FX Since over fluctuations growth projected guidance on adjusted contribution Our our includes basis EBITDA points remains have just had unchanged. of a our from impact minimal

and year-over-year of We which are $X.XXX billion, to range XX.X% billion tightening between to the represents guidance growth XX.X%. be $X.XXX

unchanged. also adjusted guidance EPS remains Our diluted

to We XX%. between to $XX year-over-year translates and XX.X% growth which $XX.XX, are tightening the here of range to

revenue FX Our full full headwinds continue analyst of foreign balance fluctuations guidance currency year as November, XXXX July Since caused year guidance have issuing assumes investor million. the rates the of XX for and our in that year. over at of conference initial our $XXX

of guidance, be $X.XXX to currency third or reported $X.XXX billion, constant growth basis. expect and on and X.X% basis, on to a billion to Moving a to we X.X% X.X% our quarter X.X% revenues between

organic up delivered currency million, between third revenue to quarter. is in quarter. at Excluding a EPS the COVID-related teens Adjusted expected expect the XX.X% second $XXX mid we XX.X%, in expected constant $XXX adjusted growth million is to and between to EBITDA and work, we to low $X.XX, to growing be $X.XX to diluted summarize, and To strong XX.X%. X.X% very be be

Our delivered currency, base growth constant mid-teens excluding organic work. business at COVID-related

our shares XX our over X% in hit had new another the record exchange months a million maintaining guidance new We EBITDA, but year-over-year. business. our the $X.X unchanged. up at business Q&A. $XX.X With R&DS end and net with guidance adjusted earnings billion ratio leverage Contracted Our we nearly turn repurchased trailing adjusted of it of me bookings our quarter back of strong quarter reflect billion, $XXX while to net over Operator of times of changes finally, held that, for let approximately over revenue X.X our to foreign backlog

Operator

comes first line from Sandy go open. question Guggenheim. [Operator ahead, Draper from instructions] your Please is Our

Sandy Draper

on and and ask question, actually tough there solid people questions there, solutions be congratulations in a Thanks to other my the side. Ari I’m will environment. let TAS sure but of R&D on guess is I’m very - quarter a much, lot Ron, a about I going

it Have certainly buying act a focused getting patterns We’re what past and either out in way. so or of on not all, at COVID are changed normal to more people trying you was but are shut people get short-term solutions we being tech of there know, certain offices. sales focus a during COVID - can’t trials doctor’s into because or need these are we whatever further down,

side? shift out, new As any general or is and Thanks. the areas you persisting refocus on trend on seeing we’re tech coming are the

Ari Bousbib

of saying you good is you. Sandy, start absolutely and to those simply thank there answering your none Yes, morning I’d question by concerns.

of seen any haven’t We that.

very - growth pleased in say world high we and and Mike, buckets: think like XX%-- with board, that growth of technology, is ones, across and our that the which the We’re to know I’m continued about three business our represents business, TAS you to really the real of going

Mike Fedock

More like XX.

Ari Bousbib

Then through have --XX% market COVID be experiencing mid the grows research, single to digits continued growth, to strong same the and has of all, strong the and and hasn’t same which labor-based business about-- that’s and during the continues at total, very abated sell primary essentially been at pace. high through that’s and we COVID, at consulting, pace, to analytics continues

Mike Fedock

Twenty-five percent so. or

Ari Bousbib

quarter-in, --XX% last and essentially been up and of data historic COVID approximately, or kind is that’s X%, its crisis. through so growth our flattish the business, balance, to in IMS XX% basically quarter-out, has flat X% of the terms also the

that’s was pandemic for peak, at or As Ron pandemic all revenue growth XX% mentioned, before anything really versus XX% changed constant--organic we’re constant for COVID not the also TAS and peak. the currency the half, excluding so again quarter first seeing in the

Sandy. Thank momentum. strong you Continued

Operator

comes from ahead, line Baird. go Coldwell your from Eric open. is Our next Please question

Eric Coldwell

on good Thank morning. hit capital you, Wanted structure. to

’XX on issues assumptions relation first etc., I with recession, point, any to do interest year doing rate With the been the and looking the of structure those capital and discuss know about in interest effectively then current from debt, about you have how or at terms, instruments talk is fronts, and guidance the seen guidance have number so capital obvious potential comments much a a a at for your far. the because maturities increases strategies. impacted changed of to interest fixation rate you’re rising that what majority your maybe I’m for could if your in you your total their is various curious on companies we’ve allocation rates, in I lot, believe the fixed has that’s guidance what debt embedded rate this but-- variable

Ari Bousbib

Eric. from I expect less No, you, wouldn’t

pack you XX and question in one to one! ask You manage questions

Eric Coldwell

right? [Indiscernible] comments,

Ari Bousbib

a at and rates. environment, are can looking we topical the It’s the global imagine obviously, question, you

know. basis saw cross as the there point and points do those of You at which some is certain debt, you bump ECB have XX thresholds we Obviously euro changes morning, this modeling it does how an making or not and structure, those on of our are different allocation capital we change capital all impact have to scenarios and and strategy. as we our a

was. going it now, I’m remains give more question. to what specifics it you the For address of and Ron ask your to detail Ron?

Ron Bruehlman

XX% much of the our--in Yes essence about going of how forward. specific Eric, of but so your to so-- to of with about now shy debt decision, our variable interest floor debt just much asked XX% did fixed the is know We recently, is our any you the About is up our group even is affected rate fixed at and think debt that more rate, until event. how I floor euro this versus I had rate, recent about fixed is whether swaps. in we’re a question, debt of our fixed have with ECB

Ari Bousbib

like-- Up today, it was, to

Ron Bruehlman

percent-- Seventy-five

Ari Bousbib

Seventy-five percent fixed.

Ron Bruehlman

but forward shy of like Yes, XX% will it going be just more fixed.

had market increases times. assumes, fourth increases basis XX quarter followed in much and guidance point the consensus there is what basis a September, U.S. and U.S. about the our You and XX two in asked pretty in we’ve of July in about point assuming the couple the what

assumed out line numbers. over our with baked slightly euro, a the consensus through now. XXX of in the of market right totaling smaller series the For pretty into have points we basis the increases, That’s increases year, just much balance

year, look the had so and our not rates impact, go put has much expense guidance asked or obviously, to we but I handy. at obviously in it back that. initial out. Nick the November, assumptions has also the the I’ll increases unless you in about rate the much year second guess, interest with to half has answer an pace come of since to been the our the when in how Now, have We’ll back of as interest It’s expense--the in increases back-end loaded increase half rate of year. have more first affected that, an

Nick Childs

helped thinking we’re now that the some a to we’ve all to right of interest, us that able million of that that on has Yes, our terms manage of had we’ve that line, been share $XX number, million in so better. EPS seeing bit assumptions seen and somewhere $XX hold between it’s the count little we’re kind favorability you’ve on below but

Operator

comes is open. go Evercore. next Elizabeth line Please ahead, Our from Anderson your from question

Elizabeth Anderson

guys, the I’ll Hi and at combo. so talk the regarding China quarter. guidance, much implies One, the for embedded your thanks a XQ combined about you a Eric’s gave Maybe could step-up XQ, in nice the fourth question. take and EBITDA if looking have assumptions guidance that for you then in specifically it

You something the the SG&A EBITDA in step-up a obviously understand call in this particular I job so nice was to specific if just managing or that guys there, explanation line driving Thanks. was that out there. there there to did wanted quarter, what’s

Ari Bousbib

fourth Yes, start level some quarter, on case fourth one, side, the me has one. very distinct These there the - commercial fourth seasonality always is the strongest let thanks questions, second with is of the two both Look historically the always it so and side the been are quarter. traditionally our clinical Elizabeth. on the quarter and business, in

that third the so inconsistent. obviously the - and a the of side, year, last end higher to are data of on, force specifically or year. the the analytics to that a on sequentially than in a know, the little to let’s end in look make tend are have purchases in at of end depending at always, commercial if board general that, and and to commercial it’s a quarter in the of year the year, out, than commercial alluding quarter go for and quarter, and example, That’s margins both budgets our little on so year the and fourth minute, forth and there’s That the across stronger before sales would lot EBITDA, this higher our as than, so less lot you our that be of You than the just bit general, quarter on a back the done years, you kind and point whether our for year about I a it’s point or spent that, momentum do little more get indicated on but it’s in, the maybe because is close more clients side, pushes, want maybe of the year in sales always the the it’s prior not they might case portfolio. it’s and say,

fourth to year, to tends sequentially because well something? years, bit execute project as done we than Again, revenue it’s all is where the driven of that’s side, general nothing it you inconsistent. do clinical work prior and we by project the bottom-up and probably of want we the not it to again that incurred be anticipate know, that’s that’s clinical how the the and On that quarter work roll-up by but and and recognized, a really--you people so comes side in more Ron, will backlog execution before when a do Agree and want converts, end historically, costs when out. the try say that’s unusual. the be so stronger of in the and to

Ron Bruehlman

answer to just in there, impact your question modest and Yes, impact QX. on China the

right say where happen impact of exactly forth, but would where The mainly all we’re around a as only continued in in clinical assuming or are our restrictions. caution not lab there’s the what’s might future expected business modest a shutdowns impact. to QX, sites that trials not us is areas I and lockdowns China, We’re and now there open happen none going just knows big in so

Ari Bousbib

China, than in less total it’s mind Yes, X% on our of remark revenue. just a bear

are strong very and competitors We presence our have to doing a we there well. relative

the it the that it, have was and continues case to side the be Remember, the today. commercial side is impact at exactly of case is. where the we zero pandemic the impact On the lockdowns the during peak clinical - on from

we is to China at through learned obviously and side, that lockdowns, when numbers. remote closed. do it’s accessing have our have far so we with have the how pandemic sites, to issue But that clinical whatever it’s you and and the and in etc., financial the least, closed, in work was Shanghai been during the On other and essentially extensive, been absorbed Thank Elizabeth. from to you Tianjin able areas, impact some know, which as and manage visits, impact

Operator

next Our America. comes line Bank go Bruin ahead, from is question de Derik open. of your from Please

Derik de Bruin

you good along I’ve but Hi, Thank the a lines the that for my Quintiles the appreciate gotten was taking resilient question. the done back RD&S growth morning. recessions, bunch past remember of absolutely business of then. the investors I very IPO, questions from having people think right during you’re rates - I

think of, that on of sort and question Thank some goes, just you. of how the I’ve there. business, like, the consulting side any on I business, TAS impact particularly sort the from gotten and the recession potential

Ari Bousbib

on obvious question. Yes, clinical side, in the that’s as resilience - by born my mentioned it’s long-term the for remarks. Look the thank the I introductory you history,

the is On commercial most type at clients. side, - you to consulting because I are correct guess discretionary mean, our usually I the of consulting spend pointed you

not not one--nothing. say far, one noise, would So not one--I

somehow much if people the in you they commercial what therapies side are and - clinical going aspect, that automatically on am have complementary from clinical merge your business that whatsoever revenues. merge one side to is is in--if generally in were crisis the budgets Bear so There ’XX, have consolidations, the their by affected factors. no large looking--I when can pharma trials the you you and indication the on are very really commercial are pharma two asking continue. large was pharma the I the had clients We and you mind, ’XX, you in tell in let merge, affects the when with the in side. are go curtailing and companies the so client, on authorities pharma every there day, of that recession Not every a generally different XXXX, the last end two commercial business big on therapy, the same housing won’t merger, we along

place yes, tax of driven consolidation wave it So time, lot affected laws, that our commercial business. pharma those a took that by at that considerations,

any We’re not seeing so that far. of

none unusual was that was was and the a XXXX was There expiries molecules there of phenomenon unusual we an pharma and circumstances the feel that. coupled today, we and approvals. as a and in trough But in that commercial fairly a we Thank of new that know there so-called which exclusivity, in was new to you. The and had business we’re net exclusivity, was peak and commercial patent--or we pipe was that so patent XXXX unusually were trend. by that’s low loss supposed approvals don’t is of a on, LOEs unique are sort soon, see the concerned well. the a approvals At is a usually number of that time that and number an of the obviously net reverse where loss versus of see and with driven so those product large We anytime to patent be positive. Secondly, that then, not cliff, well there insulated business approved know the expiries, new pipeline, of frame. time, we and accelerating the

Operator

next go ahead, David Our from line your is from Windley Jefferies. open. comes question Please

David Windley

my for question. The that really R&DS be taking you’ve Ukraine navigating thanks. really, business touched morning. Good on through very well. Ari, Thanks effectively. and Hi, seems to China

things how system, in the broader we affecting healthcare acute and heard the sites like to overwhelmed the site that of in those in addition wondered we’ve that be capacity certain sites things we I the I be have turnover environment of where global somewhat that supporting in navigating continue that to of talk parts of network Some world, are kind have site-level the and general that are issues that staff capacity are like wonder seem burnout your really to you for you and an affected. get you again, guys might are to trials you sites processed be that if so the know, is to if--you well, the using. could able to

Ari Bousbib

assume you to it globally, said, first doesn’t Ukraine. work were and question, the work. Thankfully of mean attention easy so amount able Russia that, clinical Ukraine, we was or sites. didn’t we effectively. to Yes, Russia, management reallocate resources and That of - quite other that an not enormous part just I as and you your Look mean that it consume addressed

not does Now, this sites. to itself the of the existing burden add existing incrementally

lot most point mentioned second think most and current our that a It operational is work valid. requires execute, challenge operational important challenge, that is Your important many we as of truly recruiting, development the more--I is to People true people. single times. our environment. is and retention in single is is have execution, This

book I think have are more somewhat and jump the do also have may of. exciting company that do diminishing. hopefully, something environment high ship. see exciting I have before, and be mentioned business seen and attrition plateauing people with environment I’ve fact part work the It more with may a and want strong believe, we to of perhaps and to recessionary to are, a to really we I That more trend a to we’ve levels continuing, less the likely

work individual, just if be people people. of the our burnt yes, sites on? do. not asking nature seeing--I’m so to Yes, that’s type and we doing more to out. you again that to I’m The retain specifically they’d our work themselves, we of sure the say the but We’re part are Are we productive try and to more asked

difficulties seeing We’re people quote-unquote, any a of out. burnt being, not result execution as

and a employees’ remain tone address employees with dramatic for skilled we’ve more in that. the had pandemic has considerations We We’ve how to part to what prioritize they on people accelerated. are mentioned during and either our We’re the to be or not of even always for we and our else, change and just do burned that’s the employees, myself in allocated not. quite the at employees have but When to before, to ask they address we valued issues I employees, try doing to that work may involve than flexibility. do. this wellbeing we live company and something different compensation, environment so tried out, where downwards, are and a work

people to hired to of In attrition end and support We the the have just this year year, replace be the we the XX,XXX continue growth. hire. to than will by the XX,XXX-plus by more and we end year, people of

level are issue are managing management world, our We’ve really very sophistication artificial resource around the analytics are really and is of functions an workload to dramatically machine. tools type improved we and so it We we of the of human dramatically, and a our hiring the intelligence employees’ it. unprecedented, track use

Mike? something, add to wanted You

Mike Fedock

with out out not, color to the our Yes, not burnt providing a thing I sites, to which think clearly I our execute R&DS, but sites to seen of they to work, we’ve support them. just is service offering if think try have us Dave, to they’re going so we’re engaging on-site on and do sites work the on help to are we that reaching within one I’m or a comment is say have lot to great. them assist

Operator

Research. open. Nephron from from comes go Please Jack Meehan ahead, is your question line next Our

Jack Meehan

good was you given you, environment, share morning. just hoping Thank I on perspective more could RFP commentary. your R&D the Ari,

XXXX years in two in had in down back, we banner funding XXXX. Things have markets slowed and XXXX. public of obviously here Looking the

on things you look funding now, a when you sense I the this late think do at trying to showing for for you bidding they cycle where guess for in have funded? you’re it and work. we are were I’m up stage just As get a sense

Ari Bousbib

late that board I for asking volume I night, you level almost commercial that of This the unless Again, sign there you monitor before do and the good to is I side, people same obviously mentioned is Again, certain is good I as activity. across no far, the Okay, be every segment. assure saying of the it well this simply wouldn’t is I a thank the confidence of indicators side, last a very in down, and question. daily can number is so down, clinical on am a slowing RFP know, morning. slowing had pipeline--you the early I

was The never I that was we’re the bookings. think record awards--the it there can concerns, second the large, is volume and quarter volume tell down, ever, or the so not into quarter as or quarter the second you, either just translating seeing volume has and of has it’s and slowdown RFP the highest another are know in I of volume, I true it. a bookings. record gone not our just growth awards funding pipeline or of and the strength numbers, dollars the growth both

takes down. be did actually say, Now, by you today it are maybe get asking the is are the funding the clients, are are who is what business you whether prior they It’s and that absolutely so have is A well, is years, quarter going now three low just a is offerings very, therefore on requesting who that disbursed not to to in correct and or raised not. in very two pertinent want large years three our public to experience funding was to question, their cash these Again, funding; we’ve you from just which each pipeline, going booked--with pre-commercial booked EDP, midsize, not proposals when historically. before say, lot years, of periods, go I’m should whom dependent now, spent. - secondary That’s business pharma EDPs. the maybe try is bookings companies from raised

have lot going we scale. few are benefit a of that’s the world, happen Remember know, the any of world. all where--you in business years CRO to largest things over next of are we the of the volume over Secondly, the

well At given another one not working another segment, geography. clients, are a over XX trials. We’re clients, to any geography, client, X,XXX segment, in exposed on two we time, point a

and ship, every ship, a big big very We hard. like are it’s

hand never but You’re not a also the on going going is to other the to XX% from see happen. in converse growth quarter, us

affect our a not long direction want the these other are very of big business in We ship, to do disturbances comments Any business. and cycle make? you a

Ron Bruehlman

think I you covered good. it No,

Next question?

Operator

comes Shlomo question Please from next Our Rosenbaum ahead, is from your line Stifel. go open.

Adam

on it on in earnings company is Shlomo. headwind this first What versus FX is quarter call? for today XXXX for is the was expecting the difference the what Hi, facing Adam

Ron Bruehlman

FX on in April. revenue million, headwind It full guided the on the was was $XXX year versus what we

Ari Bousbib

guidance, half? So the question? second What mean you the is

Ron Bruehlman

year the our headwind, FX actual on so FX The full guidance-- headwind

Ari Bousbib

On yes. revenue,

Ron Bruehlman

--was $XXX million.

Mike Fedock

basis Ninety worse last than points quarter.

Ron Bruehlman

Correct.

Adam

you. Thank

Operator

your comes line ahead, from is next from Morgan go open. Our Savant Stanley. Please question Tejas

Tejas Savant

good Ari, morning. Hey

of point of couple quick up needing these to backlog work estimates death some basis, choose follow-ups in beating or ’XX. again. R&D the for go-forward third here Does of here, your the at a some of and at change apologies We’ve capital possibly calculus triggers risk closer pre-commercial needing valuations. said these raise Just companies margin get quarter, near to to sort of how and as landscape comment on adjustment backlog the at M&A your of heard who a higher with that take to all your do just a you in also repos terms a funding as raise? companies to separately term curious to you’re thinking the know perhaps priority, asset have you to you’d being I some if you Then could about but that. last on on

Ari Bousbib

Tejas, okay and are exposed much having morning. again, the your not industry, good question a theoretical is one thank to folks. more and for funding Well, on pre-commercial we good those the Look - needing you question correct very just and issues EBPs

vetted funding. pre-dating solid very backlog behind long our have independently and take will purchased because large decline carefully in the is that’s have guarantee vetted developed science the have a worst current molecule of that believe in that that the and pharma. We of go science That with in. Those clinical of that process, be case little scenario, EBPs on very have trials never and by pre-commercial pre-commercial on itself because our EBPs. experts be that’s a doesn’t science biotech been that our funding, the scientific it, will We will

today. You are seeing it

to a are have It good, Number company pharma because That’s happen trial companies will number the doesn’t going the pre-commercial have no pre-commercial funding. of exposure. funding two, not We we what. that continue before one. we thorough so but of into large for seeing it may out we issues is running backlog, project into are therefore You do backlog buying us. EBPs those number just don’t our a a into EBPs matter put our be take vetting doesn’t the financial that science

to don’t qualified other do go is and EBPs that and around they pre-commercial business Our into that We essentially different with up that’s really--you are level it’s really, quarter the backlog. model which smaller funding some comb, oncology than lots perhaps raise CROs put that’s--I there we team - our their pre-commercial probability, - that, huge a EBPs, pipeline, of so the neither the slew nor fine I’ve the am is very pipeline, at Again, here. very high pipeline, seeing is in volume, seven pipeline speaking qualified the we’re one, a with this why of at a looking got different the not of nor fine Look and granularity to, bookings. I’m the really oncology know, up about XX% reason our numbers, at year-over-year. nor if look RFP awards very, - anything again,

that in growth medicine, are that numbers in in pipeline in in the for pipeline! in XX% record dollars I’m The and XX% up look internal I I at pipeline literally but I that, the is I of up wouldn’t - stuff, know, at street. Could be had a the where believed EBP, I didn’t another numbers, volume, tomorrow qualified noise. is so You up that’s--you The falling is year-over-year wouldn’t apart? general looking disease pipeline. questions. speaking both I Did the have wake world have - rare there’s lot looking at If if confidently quarter. the I mean, and rest these numbers. don’t and You I’m you two cross question? numbers. know?

Ron Bruehlman

the Tejas? what second Yes, was question,

Tejas Savant

Ari. M&A Thank you, just It was and on vis-à-vis prioritizing repos.

Ari Bousbib

not execute that’s We we a it’s got in half corporate we’ve strategic M&A, want had lots first We’ve mean, sometimes. of in Yes, whether M&A. saw, did almost reasons of job. those, point very for didn’t - dollars billion you rarely as activities. given large, on our shares. and to. mid, little the of any financial always or I lots, acquisitions, small, year We the time, because hundreds purchased potential At for development we reasons Well,

As to and you and valuations down bit for said, a whack. always market valuations come little the environment. time out takes It valuation adjust of public to have been expectations those

have binary, done nothing more that it if our and opportunities of so the with anything don’t bit in we’ve are - perhaps is makes don’t a the execute I past. in we strategy fits here that, but know or seeing we just have--you to we’re little half, in the sense, of I know big think second more will acquisition out acquisitions whack

what know You do. we

We’re it makes valuation on strategy in Thank and you ahead the very side go if for sense. we’ll if your the question. our clinical disciplined, then fits it or and do side, the commercial

Operator

from UBS. go last will John UBS, your your open. line from from Please ahead, Our come Sourbeer open. question is John is line Sourbeer

John Sourbeer

hear Hi, you can me?

Ari Bousbib

Yes. you. Yes, can we hear

John Sourbeer

other ’XX it’s in year, this at do is with think year but that term know year be on the low and long $X funding about biotech then, day? that comment on headlines from guidance to for double-digit next the ’XX you easing line you the guidance, billion to going hand, comps that growth think a potentially last was investor provided the I the little the early has COVID when Great. in RDS headwinds company RDS

Ari Bousbib

there guidance are little over and macro of you past lots the course Okay, forth. discussed dynamics let on kidding! as the me bit we know. so so give of - don’t just ’XX It’s a and and early, I hour,

and fundamentals again, so is that business. we of dynamics of strategically and year changed and We’re prices the fundamentals the our of today not but to There and so in underlying over the energy Russia-Ukraine, of dynamics you basically businesses, start of nothing or from told what What’s different is we’ve environment and operationally. at underlying said the and financial because venturing. end doesn’t going the last forth, our dynamics as of risk because affect, over the

your the those in November. you long term guidance here question. gave you when are were for back we sit Thank they today, I as As same

Operator

I Mr. out are Childs, you. back turn call the to questions We time today. over of for

Nick Childs

call everyone thank Thank end call any you take look other at all for next follow-up after Okay, our be the If questions, to on third for talking happy the anyone has to you them. and today. joining of We to joining. the we’ll us forward you quarter.

Operator

call. conference today’s concludes This

disconnect. now may You

IQVIA (IQV) 21 Jul 222022 Q2 Earnings call transcript