IQV - Earnings call 3 2023 | IQVIA Holdings Inc.

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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's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. Thank you.

to President, call Investor like Childs, to now Vice Senior Relations would turn over the Nick I and Treasury. Mr. your begin please conference. Childs,

Nicholas Childs

Planning Thank Vice Vice earnings Vice Relations. Counsel; morning, Analysis; our you, Perrone, and Sherbet, Chief and are good Executive you Ron Chairman President, Chief Regina, joining Bruehlman, Mike Senior Financial Officer; for Eric Executive Ari everyone. Bousbib, General third and Gustavo With Fedock, President Investor call. Thank XXXX Financial and Executive Senior me President today and quarter Director, and Officer;

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

begin, we management by forward-looking this Before listeners caution would to information statements. I that will discussed certain conference include call during like

differ statements Securities are on or the and could Commission, business, XX-K stated which filings materially discussed those risks results annual our including filings. with Exchange company's subsequent Form associated the with to actual uncertainties company's due SEC The the from forward-looking and in by report implied and

measures financial non-GAAP of these for non-GAAP should and on as included with A call reconciliation In financial the accordance is GAAP. presentation. GAAP will in and discuss conference a measures a measures supplement addition, we the certain this which substitute considered press call, measures be to prepared release comparable in to

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

Ari Bousbib

third discuss joining good us you, you to Thank results. and for Nick, Thank quarter our morning, everyone. today

from our we deliver in well. actions of TAS our expectations, revenue business us R&DS versus in but to our and to expected. our weakness Despite shortfall productivity half TAS So shortfall, The guidance, guidance. persistent of what About revenue came revenue continued allowed fell total the with is the performing profit segment. headwinds in from on other foreign grow, previous the our very half demand TAS exchange short had line

We customer like questions we give of the in continue market. of health I'd latest you And what industry the and to the to about are receive the seeing demand.

ever difference Demand remains new quarter, between bookings services the X.Xx $X.X in and book-to-bill R&DS on services pass-through, of there clinical billion, a strong. representing resulting the our overall, And this in Net with a book-to-bill. segment that significant billion, bookings services highest given development start a I side. X.XXx exceeded including pass-throughs. that at Let's bookings is quarterly bookings were note $X.X the

reached backlog versus prior Our $XX.X billion, high. growing year, XX.X% historic another

Our segments. quarterly year-over-year XX% RFP flow customer all growth with across up was

$XX.X was performance strong to healthy Our versus Year-to-date, the this was in supported the year. biotech quarter According billion, Emerging EVP strong third funding prior continued market QX quarter year. dynamics. largest funding EVP is X% through by up funding BioWorld, quarter. was

trial industry XX% pharma at you look indicators, half, Based the within as remains large above first strong healthy. continued well. on If clinical activity R&D R&D it net of was revenues, spend, large pharma highlighting these the

confidence position, give market strong growth. above-market that offerings Our scale market deliver business differentiated and to R&DS continue us will wins, our

to Turning TAS. now

we obviously facing tougher side environment. business, are commercial of a the macro On our

announced saw a normally And are we programs. pharma and Our decision-making have beyond expected. that have with have we remain what large lines vendor significant to cautious would sure spending large several reduction I'm cost clients their extended their also pharma. time significant you obviously,

happen. slower months. progress year, see as improvements up to It summer July, September specifically in quarter, we pick in we had didn't anticipated through see usually the the we Now the activity after August

our real-world growth the segment and slower-than-expected Consulting from in declines parts well further in some as business our experienced a still we business as growth of we as situation. somewhat While have Analytics the for the impact whole, China discretionary

remain are expected, decision on this based we taking acceleration we in because remain our with even pipeline, of there than anticipating customers lines We in the opportunities strong the and will longer that demand become pipeline time are be more as difficult. confident have know sometime elongated, While XXXX. our is a rebound negotiations

the year We The also within spend was know or adapts pullback back industry every back X. going a this XX years, in a because comes historically, time there on side. and commercial

the and X.X third at quarter excluding X.X% With and that X.X% points quarter this reported context, top approximately from constant to periods, a let's on from acquisitions. includes of last currency. related work we now as year, the COVID for contribution X.X% currency grew both grew third results. the approximately basis, on review Revenue constant a Compared line basis,

Third quarter cost increased growth revenue EBITDA X.X%, discipline. by adjusted and driven ongoing management

Third adjusted headwind and the expense interest in corporate of the rate. quarter the step-up diluted $X.XX faced EPS ongoing of tax U.K.

EPS exclude nonoperational XX%. items, growth you underlying impact these was diluted If the our adjusted of

activity of share business highlights Let me the few in a quarter.

me let And TAS. with start

quarter, our IQVIA several contracts support strategies. awarded This noteworthy analytics go-to-market was to clients'

client around decade. to win payer For IQVIA secured from with has quarter, contract selected another U.S. provide example, over this a clients EBP been trends competitor key products. for buying data significant and an analytics In a their prescriber a top for XX analytics that IQVIA women's a health pharma large

support into the We product an branded to client market. their diabetes launch EBP the first of received from also award an

support has solution, the This card Africa data the Middle information around received field engagement. an and platform compliance the markets. saw world to from infrastructure, will co-pay Sanofi that the commercial reps, sales we and OCE, many award I'm OCE management sure IQVIA deploy in HCP be an to Also markets analytics, end-to-end our you Sanofi reps, operations. quarter, in inside including launch been using within East

expertise And a that On sciences questions our been to I the plan has combining to tech side, to Salesforce. this continue and platforms. many we've with partnership and life just And been for that with intelligence getting technologies Salesforce, commercial. sales want force years about domain confirm we Salesforce partnership now life with IQVIA key span to offerings with sciences from partner some strong clinical our

of diseases awarded examples. treatment both nervous unique We clients, multiple innovative post-marketing and disease differentiated IQVIA rare highlighting The and large on patient were top Real-World. large The XX large improve now Moving and solutions. a expertise awarded liver genetic patient within IQVIA for muscular study AI-enabled the our including disease. client pharma technology awarded systems. XX-year to and studies X circulatory area couple A from provide design, to studies therapeutic offerings pharma surveillance rare in study rare recruitment biotech growing this Japanese EVP a to

with biological Preparedness Innovations, We R&DS. for into enhancing to Epidemic against aimed the for at clinical strategic ability collaboration the to conduct Coalition vaccines a vaccines collaboration effective entered to within emerging other key countermeasures rapidly diseases. accessible of now and research and CEPI, goal, globally Moving CEPI's develop mission GX XXX emerging This is disease infectious GXX enabler world's countries by outbreaks safe, which days. is a sponsored and against the

new an to from safety to therapies We've collaboration to connected tracking. disease intelligence biotech strategic global This allow also ranging into Argenx end-to-end accelerate market with integrated bring development to immunology a Argenx, capabilities services, of technology-enabled authorization rare company asset autoimmune together regulatory pharmacovigilance innovative market entered launch we will patients. the leveraging our

solution will FSP with expertise, their launch In exceptional to the IQVIA look the partnership IQVIA design new as remained as IQVIA the and the by provider monitoring only IQVIA differentiates market they quarter, successfully solution tech-enabled an delivery approach medical one a renewed client for center have information has model. pharma large leveraging top clinical sole in medical AI, and utilized performance. the innovative the codevelop language clients. global information. XX processing provider pharma of our natural our to

cutting-edge case last unparalleled company few selected continues awards won delivery analytics after program years, a to in As has the oncology developing identify an immuno-oncology late-stage to ability This III selected an trial, company. trial win and from we multiple treatment a populations We in carcinoma medical this as accelerate R&DS for big options awarded for cancer our biotech as few start-up. patients therapies, with with earlier been and successful a biotech help our data examples. with the given of to the as quarter, stage endometrial expertise well unmet was need were is Phase IQVIA IQVIA our needs. with as in important limited patients condition. a trial a in the unmet oncology trial well large were

in oncology due our and of experience molecules. Also, was unique from managing IQVIA large a our complex operational strategic including X ability and design trials oncology midsized was trials awarded these multiple safety profile to large IQVIA global expertise to client. the pharma our manage in selected

financial our Ron that, more I turn over on With to for will performance. it details

Ronald Bruehlman

everyone. Thanks, Ari, good morning, and

Let's reviewing revenue. start by

a on reported Third million at of quarter currency. and X.X% constant $X,XXX grew revenue basis X.X%

$XXX quarter, million million, Now were quarter XXXX. about revenues $XX about versus third the COVID-related of in the down

last, year Excluding all was COVID and approximately X.X%. constant this related currency work from both growth

As mentioned, contributed acquisitions this points about XXX of growth. basis Ari

TAS $X,XXX of all up Analytics constant excluding at & COVID-related currency. growth revenue work, at basis reported Technology up R&D X.X% that's X.X% million, X%. constant currency. Solutions a revenue and constant And was X.X% on Solutions was was and X.X% currency $X,XXX reported in million

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

on million Solutions flat of basis a Year-to-date constant Lastly, was at X.X% up of CSMS X.X% constant basis Contract currency. reported & or revenue $XX,XXX million Medical reported Sales currency. and $XXX on revenue at and X.X% a grew

TAS constant growth was XX% and revenue work, at year-to-date at Analytics and million, currency work, COVID-related constant Technology currency Solutions currency growth X.X% and up COVID-related year-to-date. X%. all was all reported X% Excluding & $X,XXX constant was year-to-date excluding

up revenue was year-to-date $X,XXX X.X% at of rates Solutions R&D constant at FX X.X% million currency. actual and

R&DS declined work, and And currency Sales currency. reported year-to-date and at and of year-to-date. Contract COVID-related revenue at constant $XXX X.X% Solutions growth Medical all million XX% constant Excluding increased finally, X.X% was

in $X,XXX adjusted up growth year-over-year. the year-to-date Let's while was the EBITDA X.X% $XXX move EBITDA was of million, P&L. down Adjusted X.X%, quarter representing million,

diluted net was diluted share diluted and income million share or Year-to-date, income net adjusted for $X.XX GAAP quarter of net per was adjusted per income earnings $XXX income earnings GAAP net the per $XXX Adjusted was or per million, Year-to-date, was $X.XX. million third diluted $X.XX was $X,XXX GAAP was earnings million, $X.XX. and $XXX share. quarter, Third share.

third impact in tax adjusted rate, per diluted the of corporate the and step-up the XX% XX% in increase in the rates earnings U.K. grew share Excluding year-to-date. and year-over-year the quarter interest

at the Solutions billion, R&D strong delivered bookings. last year-over-year reviewed, and $XX.X stood XX% already higher it's X up almost Backlog quarter XX XX% another of September Now years. at in

review sheet. balance let's the Yes,

cash debt equivalents As and million. September and net $XX,XXX of million that in million debt cash and gross of totaled XX, $X,XXX $XX,XXX resulted was

net Our at XX-month ended trailing EBITDA. X.XXx leverage quarter adjusted ratio the

and was cash were capital million. flow of cash free from in expenditures quarter resulting operations Third $XXX million, flow $XXX million $XXX

activity repurchase in slightly of our just just share the us You which saw repurchased under billion leaves repurchase quarter million. our million $XXX $X.X puts with remaining current we under of that the below $XXX share shares, authorization year-to-date program. This

Yes.

updating both $XX,XXX our Let's year-over-year and $XX,XXX our which from rates segment reflect million in to to compared growth growth we guide, and We're currently revenue TAS of the X.X% between slower the turn foreign expect to guidance. to to exchange the guidance be headwind represents previous million, X.X%.

approximately $XXX approximately of of currency about down COVID-related this points represents versus basis step Excluding guidance revenue XXXX, contribution XXX constant X%, from million acquisitions. including of at growth

for also $X,XXX and To to also million the basis X.X% $X,XXX represents implies this full changes XX million, points we're of revenue, EBITDA expansion It year updating reflect these growth to year. for our adjusted year-over-year X.X%. of in guidance margin to

for adjusted our in increase we're impact year. which to to versus flat year-over-year to rates is the and Lastly, prior of the includes guidance X.X% EPS step-up corporate interest the in U.K. This $XX.XX, diluted up $XX.XX rate. updating tax the

items, these diluted XX% now is share per adjusted exclude XX%. to were you grow to expected earnings to If

But this guidance implied year fourth follows. full our based outlook, is as quarter on

X.X% a $X.XX For $X,XXX X.X% and million, constant yield EBITDA points to on expected quarter. is million $X,XXX expansion basis to X.X% in expected diluted about be reported XX million margin currency and basis of $X.XX, of the to and growing or we up Adjusted X% X.X% Net and revenue, growth X.X%. is Adjusted basis. year-over-year. between on be between million X.X% between a expect X.X% to to to $XXX $XXX EPS

we're rate, grow Excluding step-up adjusted tax diluted EPS to fourth to in and U.K. quarter the interest expense increased the XX% XX%. expecting

year. currency XX the of assumes Now for our balance that continue guidance as of foreign rates of the October all

our Now QX to plan provide full in detailed February. you on year a with as is our call we guidance custom, XXXX earnings

in we However, in midst process, share while see help digits it's about $XXX our which mid-single of growth planning is would covered XXX This of preliminary We down XXXX. be in revenue thought in points frame revenue basis reported see view approximately growth. early, how step the we and XXXX. of includes the headwind we're you helpful it that to a still revenue, would a further to million

basis of basis assuming XXX drive remain adjusted points, effect another as rates expanding XX from growth. headwind of well points single-digit in see currency foreign diluted We As XXXX. EPS and margins high rates, foreign exchange will this exchange adjusted current EBITDA

Now, to specificity Again, custom, look you. is I we as year. XXXX guidance for early trust more year preliminary you our is XXXX our full release earnings and we give this when helpful at detailed will, next

levels summarize, TAS to business growth our below So the spending continued in client the despite caution expectations, and its quarter.

the rebound constant performance new demand In of a book-to-bill we bookings quarterly we strong over COVID-related previous with $X.X representing confident revenue the book-to-bill and of representing strong growth growth is as R&DS XX% below near-term out. at expectations, net high quarter, there longer-term historic at bookings X.Xx be billion, in fundamentals indicate of billion a reached outlook business work, for X.XXx, a currency, a TAS of services in in were pipelines services in $X.X another our sometime the the While XXXX. our we're delivered in will excluding

approximately Our growth remains year, side on by record XX% versus XX% indicators quarterly reached as industry-leading clinical prior with segments. strong our of And of evidenced the leading customer up all finally, a backlog new billion, $XX.X across growth RFP the year-over-year.

up operator me Q&A. the over With hand to back let to that, for conference it open the

Operator

of Evercore with ISI. first Elizabeth from the Anderson Your [Operator line question Instructions] comes

Elizabeth Anderson

sort of that you you're and us next I continued is and growth of of help of remind to pharma's what out where R&DS terms I work think pharma be to R&D Ari, of spend for benefit you was that going the played is cycles? of and sort Could to in sort trying of of about of thing pullback on my RFPs. in strength sort of And of alluded the year about terms commentary think, of prior through seeing the remainder of the One the X just maybe commentary, you And that's own in you terms in sort sort side. in bookings those how how this think -- year? factors of us that sort think some

Ari Bousbib

Yes.

You're asking -- your for Elizabeth, question. thanks

versus in pullback spend R&DS. on in the continued commercial contrasting about the side strength asking You're

Elizabeth Anderson

more specifically, Sorry, R&DS, sorry?

Ari Bousbib

back I I sorry the R&DS is no think -- no said there said opposite. been Yes. on that. pullback than pull But R&DS R&DS. been quite introductory the pressure been the Funding there has I was strong. is if about, misunderstood, spend misspoke EBP in opposite. in last don't funding EBP people in the very in at have actually year. I -- I'm but if mentioned you look the see which I under in sector, my concerned quarter was and we has higher it comments that

think that I up And year-over-year. I year-to-date, X% funding mentioned was

RFP up XX% the growth. a mentioned flow that are It's also strong year-over-year. in quarter continued experiencing I So we actually

opposite. So think it's quite I the

high very at than to level, a more XX% be To color, some record strong. again, year. and give pipeline up year-over-year higher world last is qualified continues you Our our continue very,

is Our strong, X.Xx. our you and book-to-bill total X.XX X.XXx pass-throughs, focus as I basis, mentioned historically. you services, pipeline and high the including book-to-bill quarter record pass-throughs when on and in well, our just [ very exclude ] is

Our a services quarter. bookings for That's were $X.X historic billion in high the us.

anything and or there see the R&DS been in changed an we've over spend. believe metric internal over we again us that to nothing all again, So leads on point the this in handling and environment is

clients, hybrid see and of course, with of in the type lower explore the other very that, in strong the more our be spend large which pass-throughs amount explains, of prospects R&DS on than large true mentioned that are I FSPs, services have some new especially we won pharma, quarter bookings. But or for continue to business the the our There -- is different strong side. FSP we awarded. our models we It dynamics. is

Elizabeth Anderson

that's Ari, helpful. super

the they're there, said maybe say within maybe broader of some anecdotal strength -- large costs the in about cuts that of there's we and to sort of you're cutting FSP pushing pharma the are the what interpret -- of that companies segment, more and yes, pharma strong specific And would some the by with spending large further you take are you're and R&D That's into so you commentary pharma? seeing guys still pullbacks across that sort on you seeing the demand when that. pharma that way some correct cutting saying that

Ari Bousbib

by basically X/X know large vast have large cost-cutting you Concerns but majority we to raised companies continuing mean the I internally issues course, the and environment, wars market saw, IRA the in corporations that that, which challenging. have frozen East. see case. pharma, China the all general due we very and top the pharma publicly of which that's over XX is the the announced of that's world, either Middle problems China. macro situation the large multinational or significant for program, I geopolitical think all The we And has of in Europe, pharma Yes. in -- a the

result, COVID those of pressure all the headwinds on dramatic and of cost would and during large putting say, very And all unusually companies seeing so, margins. programs. were in aggressive plus active pullbacks that So been is years -- the revenue in are that launching pharma I very reduction as are has a

that said I reflected. before Now is that, not

slowdown no the strong the to there strength. all seen a in the the and mean very haven't side that metrics want in R&D that good there. show I is far, business momentum house. So of reiterate we Again, I

not long-cycle Again, business. surprising. a It's

all has on to we be harder a revenues. terms certain are this But the come rebound. the of should this short projects of of brunt lot reduction on than time taking us TAS caused very because cost the get And take We know awarded. And see to or more time again, lot that ever the we initiatives amount they bearing were. see a in is we're negotiating TAS that continue confident we're our where our segment. to on strong pipelines those decided will that the segment However, clients segment on a TAS that

'XX back you we you legislation a look there in at if of big pullback a the to -- XXXX, every then it from a and source was go our anytime large the history, back, or was And some is pharma time business whether enacted. with There back innovative comes and the came of pullback. bit And along always -- little industry was very back company goes it. growing period

we'll that 'XX. you, confident come sometime we're Thank So back in Elizabeth.

Operator

Your comes Rhyee next the from with question Cowen. Charles line TD of

Charles Rhyee

to up follow Just here. TAS wanted segment on the

kind a year? is have mentioned of And overall? do pharma sense reacceleration of sort into 'XX, sort that's projects the is talked But you how And hold? clients, stretch much in process -- in to do are discussions you do intention the longer you would about How when an that time of with could You projects? that sort next of of lines. year? of on to much IRA. -- could attribute continue of and the sort just of but mentioned later of they think you You kind you're continue reviewing pipelines next Or to companies how Or early express kind with take? they sometime long this

Ari Bousbib

clinical are standpoint. again Yes. look, spend the shorter from development side line the part are time where house you, that of the of more between more a I commercial house there Charles. to distinguish discretionary and Well, thank want of cycle pockets I the mean,

on yes, So analysis. pipelines are of are house, which more clinical worthwhile and again, there's there the developing, so on molecules and reviews the of side

early, But of is early stage at the this the process.

entirely are know, primarily trial Phase company. you we a III As clinical almost

were number so down not pipe that all pipeline. to approval backlog And very FDA the of are will be all not coming seeing it we you clinical RFPs, that I our the a that another is that we the And molecules and high. a seeing of very, for number bookings of that, for business years, The remind to are we high. and affect and if record to see is the strong. funding at well several metrics awards, from at record to bodes

quarter Once ratio again, high $X.X excluding of record -- we in historic had book-to-bill billion, services bookings the in of a a representing historically X.Xx, pass-through.

of the side clinical the house. what that's So

have not any impact so seen of or rethinking the revisions pipelines far. We of

the part, be back most we seeing But done, do, side, where the are clients and better respect of clients there of terms cautious, for price to so that's the do. is and On of planning to for discretionary from were part, commercial of again in more except area our course, an discretion some more projects reductions they we what with seeking aggressive being being stepping the timing. impact must conservative, the on. are And terms more

entails the pipelines say in then we demand they will to means our indicate remains is it. that there. have The your us, clients if to pipeline, a no our project, intends pipeline. in people question, still it's But To the it that do point when still that do longer longer post-COVID no economy, of it the right. sharp it's, pushed what revenue from concerns decision-making for line pressures the view. about concerns declines, geopolitical general from and the that general the just been a resulting explains It's macro issues, about margin has What to again, it, time

a well to remarks, And further reductions particular. reduce seek in we lines, their that costs. vendor come I As margins, large side. to obviously, to mentioned in pharma erodes my us time are large to as improve course, pricing on elongates and when our for pharma to introductory and large they they And pharma very of and seeks

as with, the remarks, FX mentioned in that revenues TAS, we what had the introductory of to All in versus headwinds guided on significant resulted short before. coming in our we along has us

that Thank the question. environment. So for that's you

Charles Rhyee

the Sorry, portfolio and review?

Ari Bousbib

side? Portfolio R&D on the

Charles Rhyee

no. No,

environment had reviews On their sounds it they is has meant, IRA saying have put it's general has just much discretionary macro like an side, you're pharmas spend, effect the on more impact misspoke. but I the I when an and that the on? commercialization portfolio -- sort that's impact of where had how a as

Ari Bousbib

all hasn't the Yes. on concrete the impact We developments -- This market. down significant had the concrete any line. based is measure IRA and yet hypothetical on

that adds seek cloud and That's cost to another of anticipation management containment. uncertainty that just teams all. in So causes that uncertainty appropriately of

Operator

Dan Your with UBS. of next question comes Leonard from the line

Daniel Leonard

wanted your circle XXXX direct speak revenue? to Can any segment back growth commentary, XXXX, R&DS segment? then just TAS in R&DS to growth mid-single-digit to framing between that I you meaningful figure. the do you the in expectations total revenue in difference fee expect And your in the rates between and

Ari Bousbib

is give that's very -- we that, the COVID, again, And this just helpful there's to will thought in helpful decided this we're guidance be uncertainty. -- it that hope peak So we you doing because And because a to the you. recall early. even you we of would at

where Now based we process. in are an it's initial our on outlook planning

We have planning that completed not process.

release So by earnings full is, guidance our I would when with will cetera. caution we you et 'XX precise again, in back detailed as we year is custom segments, early that this come and and preliminary,

Just on from digit I mid-single in that's your growth. That to guiding question, includes million revenue think overall of R&DS. COVID step-down and essentially $XXX are we are

you expect foreign remains basis would basis points hundred they be today. our another back of if XXX assuming that. revenues, of -- of And points have course, that that we where So top rate couple of FX exchange total headwinds to on added we are

it basis which billion too I an the agree give mean, okay, but think a it's single reported that environment. R&DS, you idea, you more an -- quite is on have it high for it's digits, adjustment. that you just we achievement tell to company and revenue I I'm about could sure to adjust we that's and when to assume gave that the when early really the across With the is I we you for just for So step-down about to say, COVID would FX, segments, we once We impact $XX current you mid-single in digits, COVID the growth, is respect in are same you. segment -- assume actually I expecting mid-single XXX% COVID before is digits, now, obviously should what the say

Operator

line question [Operator come will Windley Jefferies. from Instructions] Your with the next of David

David Windley

on to margin. wanted focus I Ari,

You prepared EBITDA bookings you're you to quarter, the commented productivity be could the mix that growth. in R&DS and about being your heavy took beneficial talking in remarks third to service, so initiatives that in about

talk productivity to take? initiatives any are EBITDA Just that be drivers kind of expansion And to might you get you wondered able for next basis that further margin to if the points you could expansively what of about year? XX

Ari Bousbib

been brunt the time. It of able headwind Thank lot productivity just revenue the Look, third falling shortfall programs. reduction offset and the to not you, takes started to we in address completely We've will that I EBITDA. reduction the bear the through able David. of a cost of recall, that initiatives I with those year. this you quarter, mentioned, mean, to not towards end us what led be last That's has

that the As in year. going to in you -- benefit not we QX know, QX, if we QX, are actions of QX took next be

includes of that all those that all spans our to factors that It cost So includes to infrastructure overhead infrastructure restructure structure, estate. possibly our includes mix need our we taking IT. our programs footprint really of It actions our business outsourcing. the offshoring to of continue and of we're along review control review of run proper in-sourcing, globally, the to real mix to with --

America, mentioned, cetera, And in Bangladesh, activities South as different of of taking centers, arbitrage done benefit will the in labor QX. for and India, materialize in in those advantage took, et whether in it's benefit and carryover things the actions on continued ongoing are all we basis, Philippines, I offshoring in certain example, among the our we the in third being see year. quarter, And an our this of margins the

that expansion So we course, don't about reason is basis XXXX. of to carryover full XX year see we point in benefit selectively. actions during following we XXXX will year stop margin it's quarters in the the on we the confident a those XXXX. -- feel And The intend this a and actions of basis because took that

Operator

of line the Justin Bowers from Deutsche come will Bank. question next Your with

Justin Bowers

I and large of participate savings, the and some to in embedded we've on the step is those M&A what's take drive pharma for some cost-cutting help to secondarily, wanted IQVIA's some to assumption So just the -- that XXXX, whether sort of in seen respect programs of growth announced, in that sort it's of what for back with or TAS? a outlook that of rate? opportunity And R&DS then

Ari Bousbib

Look, Yes, large and with a our to ask vendor we Thank actively and large Justin, question. across help them. clinical we to to reduction the to, are pharma board, to with us their TAS. they your them us you, cost for are customers programs. engaged help And come have we

we that. in primarily TAS an terms the R&DS, growth, mostly to impact that's changes almost in and our have revenue Obviously, where us less it pricing because immediately, So renegotiated case the opportunity so that's in affects do but the TAS.

to of they the a Now that opportunities, bigger reductions. been with is try a our price conversations, try services spend those share capture at seek lower in the to exchange clients offer always for we engaging will, to has in more deliver their able cost way us, point. our for of if when those We being a That's that services, you case. traditional

seen the vendors, get for we it but a that, that benefit switch X when as side And years R&DS term, couple to will certainly commercial the on frankly, need years the merger. because and let them convey over the and and materialize, to so piece us side, give And takes We've will volume. certainly to clients to time they take us X, longer more bigger past we on us. a since it happen, contract of is materialize hope the that the

was question on Your the... next

Justin Bowers

impact. Acquisition

Ari Bousbib

XXX basis about -- This when assumption back look really formal are. you for on That's points, stage. that's what's really we the It's yes, XXXX yes. guidance. in Yes. not we at baked -- this Thank about guidance. preliminary come a where Justin. you, give we'll It's Again, is

Operator

will Stifel. line from question Shlomo Rosenbaum Your next with the of come

Shlomo Rosenbaum

down a bit to little I drill just want TAS. into more

think to how helpful Maybe growth bit discretionary can of don't beneath a consulting, software it detail revenue-wise, the going of is out it is there? more exactly of trending to one about I just the break -- a each but little get surface BPO, kind within is talked bit You as little on sales? it more what's you the subsegments. know data kind into areas. you Maybe about of just

Ari Bousbib

for sharp the and the need continued Shlomo, cap you -- question Look, large grow can to declines and you, life can you TAS the clarify. supporting segment in Thank for who to showing you market have sciences at services, serve that those quarter that in mean, products they this industry are year, the introduction look has reported. uniformly the in the Yes. almost but I and you the growth companies declining post-drug and see know with quarter. and

to is this for Now the have about speaking is because of recurring stuff that and term reason licenses, that growth. is, some I'm continue mission-critical. continues somewhat deliver is and data, we of the growth. enabling that's to technology us continue as subscription, what to And stuff longer revenue, that's is all

I small when to "slim-down And means say discretionary. what a less in more our be mean are that that a it we happens, that's to ahead. it of done way, clients I business be It that in simply can our don't of decide say discretionary, later. can -- we parts means version", go better not than thought. sell. different It but perhaps may that the a proportion It done However,

showing part and would we know as business, the a our And of so than our expected. analytics you declines, which consulting of sharp quarter revenues. It bad sharper is have is

done. pipelines simply 'XX. projects be in have but have fallen confidence projects That's us these still off, what the to aggressively. gives are us a that longer and happened. are lot has lot We the And lot this rebound They a a what time negotiating decision. The know Some taking more of for a more a is are make clients to there. just

them those are that in the have These They quarter, since won project year. last This with some we is are few the in remarks, their introductory done. pipeline my won first TAS, these launch in products should examples and mentioned of helping quarter. that clients significant in launch were have to in almost things new frankly, wins we uniformly types -- -- strategies. be And go-to-market Helping these in the markets, projects. I of a of a the

happened. hope lines and have expanded I helps decision That's has the So you. that the terms what tougher. have time been color

Operator

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

Luke Sergott

win. more you model. seeing at about hybrid margin. that lower this talked know I in large you're cyclical And being about the a in type come also lot FSP to nature. in the shift past talked So a this of you've really has But

we from think side. headwinds some regarding the should the future over about next And year had. business us wins like X you to help So -- FSP of the mix expect a R&DS to if on duration, that size this your months the

Ari Bousbib

Yes, in cyclical time Thank ago, industry comes you, service full-service the from legacy at time clients the profile. midst explained also very you're was that -- you're Quintiles that the X was they given work coming to program. it development Luke. Quintiles FSP its is than the lower and margin result And FSP. to which, switch years because booked a time, from industry. me as merger organization, the well that a didn't at correct back these servicing we award a pulled And the this now in recall into the FSP an the a do full I correct to margin had absolutely at has of at did want that a lower of

with the decided else. and full full hybrid our clients I then, including time FSP push thought and have serve service we error and at of of and the don't a everything to including We there strategic services, since portfolio including serve was We offerings. clients. course,

what us are the than margin cost to when recover that to cost impact. level so it to and more at try on them. mix interested in that's to work time, upon try incumbent we models, can in point will develop work containment structure hybrid then cost when or It higher to our offset we a this reductions sell more margins clients at if FSP execute the to we is we our out, So and booked continue

expanding a very trials before COVID We billion digits the those continue FX in margins. spending account well are at revenue cyclical again, pharma some EBITDA margins adjusted model it we given despite we a Look, into your to future environment step intend whether of switch large company we our company And that at a large TAS clients. headwinds a point is manage tougher side, and for on to the businesses. the XX%, of we in a $XX it FSP we And are are portfolio headwind. that growing we mid-single of the and are Once revenue thousands are down of from time. may occur, is executing about any whether

this, margins. for pass-throughs, to have our you you included wins, margin a continue You can will on bookings number saw excluding again, pass-through next in needle quarter, our large couple not the move offset your see and X.Xx, cost materialize historic high mix Thank fee the we a in next resulting FSP not in in the would less $X.X a of That anything increase our that that that to again, book-to-bill obviously, intend revenue, fully that with years, in of of dramatically. and services some billion like again, But our question. quarter, reductions bookings. we

Operator

line of come Your will the with next Jailendra Truist Singh Securities. question from

Jailendra Singh

months. is even deployment XX swaps your to down buyback one the ask allocation? off rolling versus the next year? in want strategy to there shares been quick priority change And clarification, next capital terms of about debt M&A Has over there what the I pay of any magnitude the or

Ari Bousbib

the second The to question, here. first the and I'll give technicians question

been first with level we I we others. leverage you, getting of one The fascinating, living tell reduce a to please do not higher from Look, allocation. please, messages. different our on is please, is, than change admittedly please investors leverage. your capital are One And your leverage. it's X that's question have And historically have

leverage levels are around at much -- lower in of and higher much right to market a conditions you that the flow we've had just want anecdote, now. and X.X tells for leverage We cash net the conversion. levels much past, more I of difficult

lived that a we've model. we with predictable, nicely And highly high-visibility have business because

expenditures, to through accretive share and, enable and has strategy b, our been, extremely products by to a, rates that in were especially the money Our when us innovate invest low. in new services; grow that capital repurchases. effective to return companies business faster; are a very that has add, strategy, c, and And been shareholders to

that, we've remind at seen history, of that And had never that rise treasuries in I'm a years X, us points period the Today, treasury at, mean sharp X.X? growth in are of such ago, leverage amount Obviously, and rates of paying the in XX earnings that brunt X. of leverage, very dramatic interest share. X is leverage. I per XX costing what, of short in time. were glad you our of because just a we such price it's that we points, I

X, would be our tell don't tailwind and going rates I be argue in else in or world. to interest increase brunt -- forward. sorry, should versus a believe that decline, to mid-single-digit needs it a a the this of also that if interest However, though curve, the we assuming you a of in it's end EPS that headwind rates 'XX. sharp going anticipate indicates the everyone potential even that forward, like rates assumes treasury then stabilization we and the sharp a that I'm expense And is year high increase not will but I

intend strong especially there, And stabilize of to question. in levels working you the swap? growth do will for sheet. in hopefully. faced so balance that continue and from for we to we share we be the forward. leverage. Having are continue therefore, But cash we to we the least, And 'XX, EPS year obviously, our in Thank our this alleviate that and at going we speak shorter-term the in do your business interest repurchase, said headwind should maturities, That's comment we use resume to and that the on, able invest as we'll soon, have Any some to that, to which are. expense and that at readdressing refinancing acquisitions continue and on where 'XX,

Ronald Bruehlman

rate average of an somewhere we X%. -- about, that, which have swaps million of call XXXX. $XXX in to second between that X.X% about is to at rolling add off Yes, about and anything Adding of the it, quarter

saw So year. this on it the but extent not headwind swap will the that off be rolled next a year, to you that

Ari Bousbib

very Thank much. Yes. you

Nicholas Childs

on next And other Well, the available questions any across any over team calls our forward look thank the We myself few be call. and joining talking follow-up the everyone day to and us you, follow-up everyone, today. have for days. you and to will for next

So free joining. reach out. everyone, feel for Thanks, to

Operator

This today's concludes call. conference

You may now disconnect.

IQVIA (IQV) 1 Nov 232023 Q3 Earnings call transcript