IQV - Earnings call 4 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 Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded. Thank you. I would now like to turn the call over to Nick Childs, Senior Vice President, Investor Relations and Treasury. Mr. conference. your begin please Childs,

Nicholas Childs

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

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

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

Ari Bousbib

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

quarter. You good that we had a saw

call with the latest of start the XXXX. key by end along accomplishments our we markets, are in seeing sharing our me for what Let

the remained bookings of quarter second the X.XX. R&DS history, Net largest side, exceeded On IQVIA strong. quarter book-to-bill our for billion, the demand quarterly from in new clients clinical $X.X a representing

flow large pharma. XX% RFP driven quarterly by was year-over-year, Our up EBP and

qualified $XX.X the [ biotech versus was highest sequential Our According funding quarter billion, quarter funding pipeline ] double throughout year. X to prior improvement the Emerging BioWorld, years EBP continuing the in was digits seen last fourth we've year. the strong. grew

year, up 'XX we For due outstanding prior if to XX% billion, for year, largest the [ that the ] full when years outlier represents EBP was and versus COVID. dramatic the was $XX.X the funding on and of year there 'XX, XXXX record exclude

in bookings what close we're XXXX, of $X.X $XX.X including record R&DS. business, we proud have of booked high we billion As billion. service net achieved The of business new

year-over-year. rapidly biological diseases which countries. offering, We by countermeasures at Epidemic strategies. progress the Innovations, through stands a We capabilities And Preparedness CEPI, are billion, enhance the other with research of management the network of that's business ability new recruitment business discovery in and great patient differentiated partnered antibody animal-derived study organization and through is customers added for who used and significantly Coalition that We for in nearly antibodies new world's made up The net lab we the the $XX.X underdeveloped launch clinical infectious acquisitions clinical further XXX competitors. the against from synthetic traditional research vaccines to the our conduct clinical coordination backlog capability. research and feasibility year. that our expanded offer our with expanded Our X% site strategic R&D emerging

and cautious as containment. their our commercial clients with of The Turning business the spending of their the face to our to we've course, described in TAS. side macro that remain cost continues, environment past

Our had what expected. we than better slightly the results in quarter were

to continues that spending we rebounded do and yet be a market point not to leading has levels upcoming the to an they Fundamentally, improvement. discretionary headwind. Although it expect, indicators will,

$XXX than up XX% new the X-year over the own next the almost drug For sentiment our year to new our pharma past, and clients be launches engagement customers expected X billion the over by the XXXX over compared XX% an is That's level improved the on recent approved FDA is in customer that's with during molecules XX instance, years. and in prior in XXXX. period. Frankly, spend highest it since more noted quarter. to prior we The the

we pipeline the the on second as the remain end as as demand of Based the the to growth to decision dynamics, of the up, XXXX result, half a the of see similar to [indiscernible] We fact, lines what these we growth year. of of strong may the continue we last negotiations experienced for time be what even but difficult XXXX. inverse and XXXX In gradually opportunities more short resembles back first to quarter. to elongated And and the in expect revenue pick move the see indicated trend remains we sequential to before quarter we year. quarter improve in might that grow of fourth not

business difficult in achievements despite XXXX. some Now more macro environment, had the TAS significant

first-in-kind reported devices consumption XX successfully our expanding and commercial to platform, which and performance acquired suite We introduced metric from using clients offering we health the launched providers. the quality technology care patient of complex take to drugs medical a of supports covering added manufacturer outcome our that new health analytics tools as med outcomes. extend continued assessments a And patient a travel million on tech that measurement our across they clinical technology offerings diseases journey successfully fact, OCE We countries. platform. tracks new XXX in We, XX X.X We software

increase. fourth and results currency approximately X% quarter ongoing quarter to quarter X%, EBITDA tax the acquisitions. Fourth continuing adjusted and the headwind quarter. EPS our Revenue the interest year grew on the reported contribution points me rate grew of constant the diluted and the of expense last faced work the from for Let for of increased $X.XX both Fourth basis, to including turn adjusted reflecting currency step-up compared U.K. a excluding periods, at now in constant from discipline. management top approximately basis COVID-related X.X X.X% a corporate we on X.X% line cost

of our items, impact growth adjusted XX%. these EPS diluted the was Excluding

Now of quarter. this this activity a business few highlights

a via commercial pharma quarter, pharma a IQVIA single we in with strategy rheumatology client IQVIA, TAS. intelligence comprehensive to allow real IQVIA our X-year to areas. provide support the market won public time. monitoring of Similarly, global end with This therapeutic established The the outsourcing data. In health detailed services local won will start to brands prescribing targeting countries. following large selected cycle than access Let's significant analyzing enhanced accessible COVID X-year pharma a globally in program converting countries. data a midsized source of the large sales XX life contract awarded a program contract in status. client and and in to to over-the-counter IQVIA their more a dermatology, emergency in markets, in oncology XX HCP clients with of CDC The CDC the near will provide support patterns the

past and the a contract National at-home response, Service our efforts Health support contract enable to and IQVIA, patient a improving health. In and privacy is groups that faster On including which data and includes Services large pharma influenza quarter, large Patient to technology at-risk our adherence co-pay significant business, RSV, within and of with administration. identifying for showing segment highest England business, real-world overall our the the growth population monitoring, controls. to ensure deploy treatment the In standards the awarded respiratory NHS a secured governance of our virus privacy

multiyear expanded major This automatically includes provider. in and sources. clinical was stage key effectively. In with firm, We development X of The Moving biotech was provider an is X selected client trials. to information studies as for local selected trial another gene primary were ALS uses a top our promising in improve autoimmune chosen to a top to In from monitoring full-service capability on recruitment manage an needed partnership QX, provider. our late-stage like X X is pharmacovigilance lines. IQVIA. In IQVIA's ours adverse the systems early drug were quarter, large costs of securing capabilities and our to us program to oversight their expanding disease. company selected global its IQVIA expertise unstructured here complex innovative of a is in as oncology a its trial pharma program allow to This II partnership [indiscernible] vast the RDS, more ALS, ability to disease. a and client initial We also research. of A a selected legacy due a the technology extract a cell that with QX, Phase biotech IQVIA top due a from clients major to efficiently large-scale to been targeting help which become that consisting comprised contract which from by global time identify trial quarter, sites our to data XXX% IQVIA develop leading complex and will conduct a a cancer AI manage therapy FSP sole generative as global XX AI IQVIA safety selected IQVIA and IQVIA Noteworthy had platform known pharma strategy. Also study myositis, client a a event and partner pharma competitor trials. due clinical as awarded trials, oncology client to conduct the awarded mix new replacing faster IQVIA disease well in expertise previously. our

a take around acknowledge nice to just for to opportunity detailed to and I would the Finally, the recognition review, our for before it company received. and I Ron the like world congratulate turn financial the employees

in was world's seventh For our third category. row, admired And the year of one IQVIA year, survey. company named Fortune's was admired in in the annual a IQVIA most named companies the #X for the most consecutive

senior to like XXXX by honorary, [ the it Lastly, one ] leaders, prestigious recognition PharmaVoice Scientific industry-wide Officer mention XXX before our named business. is over turning Chief Christina IQVIA's to is Christina received Ron, honor. for was Mac of the specifically peer-recognized real-world who a I'd

IQVIA in are and care health accelerating through evidence-based We very innovation Christina's decision-making. work of our for the passion of at use proud

it financial me turn now our to Let Ron review. for

Ronald Bruehlman

Okay. Thanks, good Ari, everyone. and morning,

$XX the revenue of $XXX by million, down approximately [ grew start quarter X.X% X.X% COVID-related million basis on XXXX. billion which revenues and about reviewing fourth of reported Let's versus ] was In quarter $X.XXX a were constant currency. quarter, the revenue. Fourth

mentioned, and constant revenue currency all was basis X%. $X.XXX COVID this work related both Solutions growth. Technology up excluding last, Ari XXX of and constant Analytics was currency. the Now for approximately this And fourth quarter from year X.X% reported & billion, about X.X% as acquisitions contributed growth points

all excluding R&D in reported constant X%. and Excluding and $X.XXX fourth COVID-related and in COVID quarter up was at currency where was TAS X% all revenue quarter. related X.X% Solutions work, R&DS growth currency of was constant X.X% constant growth the billion currency

and Finally, X.X% of Contract reported quarter Sales Medical at CSMS currency. $XXX million fourth constant and Solutions revenue X.X% or grew

X% For a for revenues year, billion, was on totaled basis $XX.XX and the COVID-related year. the revenue constant growing currency. full X.X% at $XXX million at approximately reported

X%. currency reported was currency Full currency all in work, and X%, at growth R&DS excluding at was currency Excluding constant years, related X% & work growth $X.XXX growth at growing up year a and In was X.X% R&D revenue currency both both constant was and was XX%. constant excluding Solutions constant all Solutions COVID-related all a billion, COVID $X.XXX constant revenue from work, X%. Technology full related Analytics reported, in TAS basis, year on billion, COVID

revenue was constant currency. CSMS reported $XXX full X.X% for at and Finally, year in X.X% which the million, down was

Okay.

X.X% Adjusted was Moving quarter EBITDA adjusted down Fourth GAAP GAAP the million $XXX million earnings share net per year-over-year. $X.XXX was growth, billion, represented quarter. EBITDA fourth full while to $XXX which P&L. X% was up $X.XX. for was year and diluted was income That

share. share full earnings net For fourth million or [ GAAP $XXX was adjusted earnings diluted ] per was quarter of diluted $X.XXX Adjusted was net $X.XX $X.XX. the and billion for income the year, income per

EPS adjusted For $XX.XX. the full year, diluted billion in $X.XXX income was was adjusted net

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

Now strong quarter already R&D another it's of Solutions bookings. reviewed, delivered really

X.X% up years. backlog Our over billion. and last the XX X December stood a XX% That's at at record $XX.X year-over-year

Okay.

Let's turn balance sheet. to the

million our to As [ ratio of Fourth net due that at $XXX debt resulted operations $XXX trailing cash and debt of X.XXx totaled cash billion XX-month quarter and billion, capital was and flow cash . of net $XXX flow was from quarter. year-end adjusted in $XX.XXX free for the equivalents expenditures gross million And billion results December XX, $X.XXX ] math in was the cash million, EBITDA. was leverage $XX.XXX which

an per million $X.X repurchased slightly with average share program. leaves quarter, shares This our price $X Now current year full just below $X.XX under at repurchase in the repurchase us bringing remaining of of activity just share of we billion. share to our authorization the under billion $XXX

took share Now for as investments, and accretive shareholders. significant environment repurchases, the which merger, you capital advantage interest for of know, of amount rate the we acquisitions and coming out our of internal deployed low quite were a

slightly flat XXXX, that billion drove over through up net rates, relatively Now annual XXXX over of $XXX steady and but a million EPS experienced in adjusted XXXX. the our interest was per causing rapid our rise we expense at period, end to just almost middle at in year, which interest of around and $X.XX unprecedented the by interest be expense,

we debt allowed November, X.X% be $X.XX approximately rates. we demand interest over extended that our IQVIA we swaps. million pricing reduced tighten strong interest fixed issuances we refinancing, XX% to expect for us at this billion our to successfully expense $XXX approximately The those an With locking for below XXXX. saw average in XXXX and fixed to XXXX risk in our as by now Now maturities. of refinanced of of after and rate lock experienced near-term exposure in in refinancing rate net and billion debt you $X.XX debt maturities approximately This

net our the expense forward more curves opportunities future. and to guidance. would the We've reductions our rates interest a open Now current consensus [indiscernible] in lower Further in our to debt refinance variable in the on rate the included in reduction debt additional potentially point XXXX future.

Now go I'll XXXX our review to let's which guidance, in detail.

points be revenue and $XX.XXX billion of the about [ COVID-related from this $XX.XXX $XXX XXXX. of million and year-over-year approximately and XXX For ] M&A points in basis billion full approximately to ] work contribution step-down expect further XX total of a basis we includes year, between headwind versus activity FX [

Our guidance adjusted $X.XXX billion. is billion $X.XXX to EBITDA

Our to adjusted $XX.XX. diluted $XX.XX EPS is guidance

interest guidance million under guidance this of share an million $X an of average between expense. assumes Now deployment effective includes amortization split rate, [indiscernible] about repurchase. count tax Approximately XXX income and just depreciation $XXX billion XX% diluted million about This acquisitions share also expense, and evenly $XXX operational shares. and

for year. rates currency foreign of as XX the the balance that assumes of guidance February continue our Finally,

$X the expect revenue last Now TAS at the segment significant $X.X level, and billion. TAS. we revenues we was quarter QX had between to that XXXX be in billion COVID-related

for So the COVID balance step down in TAS will year. of be the minimal the

revenue points reflects the R&DS guidance rate. The headwind now to additional commercial R&DS an basis latest to is points end anticipates COVID revenue. XXXX in already will which step result is which step-down for still approximately between also to headwind digits. CSMS As phasing pass-through represents guidance towards in the This single of COVID-related year-over-year headwind, down of year-over-year. expected R&DS XXX expected which billion. almost back $X.X guidance includes low our XXX down mid-single growth in is results the revenue entire the be year-over-year. Adjusting R&DS $XXX of billion an million, in growth be improvement the year, business in a $X.X remain digits. expected approximately revenue $XXX to in to the the the mentioned, million in the is of to And and growth slightly high that pass-through basis approximately of revenue

guidance. the review let's Now quarter first

said. impact the and For $X.XXX the the we year work weighted between The mark year, be with is in billion we've to as back in the billion. TAS quarter the beginning in to EBITDA $XXX be of expect and expect expected Adjusted expected $X.XX. we is conditions and QX. first revenue to is Also, be of first half $XXX quarter, the $X.XXX million, between and EPS largest the million in decline $X.XX to COVID-related adjusted towards only recover diluted and between

adjusted the XXXX. diluted the to is we comparison throughout mind interest toughest due saw rate keep QX that in for increases Now EPS

XX As assumes rates currency the foreign of as mentioned, our guidance year. of the continue we balance that for February

quarter. delivered double-digit second booking with another was So let's R&DS along the QX IQVIA quarter $X.X another largest at quarter in summarize. of billion, over growth. history strong RFC

X% of grew XXXX, year constant revenue currency, full the work. excluding at For COVID-related

group net XX most $XXX the impact XXX% diluted adjusted and IQVIA million, XX% of named rate. points ranking the of in Our X% a consecutive per EPS by year-over-year for strong up underlying expanded year year. was margin flow place Fortune's exclude quarter income. to expected of Companies X% [indiscernible] interest full within revenue EBITDA adjusted margin first and we XXXX up growth year list continued tax basis the to the the at World's earned X%, was of the increase and issued lastly, EPS industry U.K. our expansion you diluted resumption of with seventh Free cash adjusted to rates in the to for representing third earnings XXXX the with and was And guidance Admired XX%. consecutive growth share be

a have working have and moving Nick of Nick the quarter, served follow-up together our them. finance years, for the join call unit during to to of years. open as has so IQVIA's make roles member leadership Kerry years who many become you Kerry past on we change Nick already responsibility this chance succeeded been increasing finance has with organization, to company. past the treasury of for aware like I'd by team CFO functions the before Kerry will Relations led Investor our Kerry, all CFO finance North business. X and ably Joseph, He leadership of responsibilities is transition a our who Now to very Childs, within is the who be to will and global meet the X you calls American of that on Q&A, business had XX-plus has his

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

Operator

from first of Your comes line from question the JPMorgan. Instructions] [Operator Anne Samuel

Anne McCormick

[indiscernible] on great first Congrats TAS. question My was the on just

your expectations seeing this maybe to and your comments that. half others And IT what the conference that indicators green TAS you in space And early that others the in expect business first seems are sciences was that happening part will recovery business. the early some the life do recent business? wondering around spoke our see for on I in You recovery optimism a of those It back just be based like to shoots? is from of some start to at what

Ari Bousbib

Well, thank early you, of year, that as expecting things Anne. last year. second you around I we happen. last -- And mean, know, it didn't look, half would we're turn

Now point. at got it's to some happen

So we quarter okay, of quarter 'XX. third thought, then at year's quarter, of thought, I the -- well, later of last second second by the end

so drugs years, into our mentioned over are provide, from since introductory period. the some launch very the for for generally as whether expecting services We compares these, of support those consulting, pharma market And that points really so now remarks. significant data and own XXXX. of the launching expectations favorably bodes of That by than and happen and next type commercial few the for level second is to our prepare the data of we support this FDA I business marketplace. clients Look, to approved XX% more in year come planning, spend well access, half. market the fact, in pricing molecules all prior in And And support highest on my last launches those forth. it's the

TAS for note, in TAS before, cautious the these XXXX. been build that we're I but been conversations on our XXXX detailed noting we business that business. even of And to the a we on has the don't pipeline than [indiscernible] Now And if year the tell appropriately said when have before outlook tried year forecast pipeline, But of really, our own or that's time. might can proven planning. it with up we optimism numbers methodology for on higher I think the with I in based opportunities a is you we've ever we been for we've any our because report perhaps for the more here, clients, be over pipeline very

about enough gives -- tax here it. if that and built that we is that we'll So we've caution XXXX things well. have be us as favorability we comfort the presented hopefully, appropriately business built But perfectly work out feel on for forecast upside we the the forecast good

previous business a saw being word decline XXXX one. every Now the caution, the in through with a of quarter growth worse than

We the year up image first the of with expect that. as more quarter to year's 'XX building of momentum second progress like and through through be cetera, quarter third 'XX. is That more fourth sort quarter, quarter the to last ramp and the hopefully like mirror the be we the et

Anne McCormick

was then on little given the And hoping all R&D cadence you how think just maybe XXXX. maybe could the bit color about just to provide on I a moving just for of side. the I'm pieces.

Ari Bousbib

You mean the anyone has cadence? any... Yes,

Anne McCormick

cadence The revenue of yes.

Ari Bousbib

Yes.

Nicholas Childs

-- prior Yes. that mean pickup to sort I off in a I drop seen no. you significant would of you've I mean guess tell any I the look [indiscernible] at I years think or either, you linearity

Operator

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

Shlomo Rosenbaum

maybe about us the large boosted certain Ari, really it? that in talk that. little little were quarter? it? a there deals of signings therapeutic contract largest can company's boosted might Maybe bit have there areas the give about Were just the in second you color A significant a certain history, bit that

Ari Bousbib

that. highest Shlomo, mentioned just Again, would particular you, was record. very in like the There I if exclude on thank by funding or that Well, contract strong. Okay. award the the segment, quarter. question. particularly segment you the COVID or anything was I specific for say EBP years. strong was no

talk we if our again, EBP than was higher EBV don't segment, about will, per And say so you but book-to-bill, the with strong. particularly book-to-bill was -- I'd X.XX.

But no anything the pretty time of say I [indiscernible] one big guys? color award in board. about or numbers XX%. were skewed can of correct, Is give that nothing the that -- I our had year across and we XX% comparatively, So -- strong that little So a bit you. the would bookings that's

Unknown Executive

in complex no excel [indiscernible], to cell and trial, we and therapy gene continue in clinical change. oncology a

Shlomo Rosenbaum

-- been anything comment or TAS Is out there? long with just changes? know R&DS talk Anything business. you about well-known the any you a on in are of can marketplace? Has cycle competitors the any there could there about it's either that I competitively

Ari Bousbib

of like competitors. generally spun level But acquired comment equity been don't be some have companies there to markets. these of often. Happens. on been always competitive, acquired been public It's of off being It's I the yes, that have in that And to trouble. less of some is by The they've in in disruptions space. off I Does number Well, fact tell. disruption. that mean spun the or disruption more sort conversely private mean or a that introduces company they'll hard competitive? CRO

gradually of question, believe disrupted that market that from advantage to clear us believe which think ago, we the significantly a But merger we don't past the If that, large comments. we mean, other gain view a and X years that I enabled resulted to have I any was you industry we further longer the over of to this take share. led what established few subsequent our years competitive reactions than number transactions

Operator

from comes of line the Tejas Morgan next Stanley. from Your Savant question

Tejas Savant

mix mix my side hybrid a the versus and implications margin through means rates? things. work might And service area in So that think question is FSP of you that on you shift head in the into shift work of what here -- as your Ari, help first what versus just on sort basis? of us R&D for similarly, backlog full in of can any the 'XX burn that? therapeutic And

Ronald Bruehlman

and Question correct? was shift the about service, mix margins FSP full in between

Tejas Savant

right. That's

Ronald Bruehlman

service. FSP than somewhat tends margin be lower Yes. Look, full to

that with account, pass-through revenues pass-through service take Now FSP significant doesn't. though, into comes that full --

so that you degradation result at -- shift as a passers, been look there And yes, average towards has they're FSP. not there margin is of margins, in some including when the the But different. general,

huge to plus hand, that's a shift, other On It's of flight over place shift talking this very on. is about FSP, to -- gradual points trial and complete. points it the for not of time, single you're the remember, going shift average years takes

So the there independent of any our time whatever improve to and all do that. our to hasn't of we been and a contracts result margins impact out optimize we're signing. margins dramatic happen And on costs really things to take be working as of course,

to being I our impact see say, you R&DS EBITDA a overall. over our And continue they've in that's not improve XX% with of would revenue. So margins, actually big And there.

Ari Bousbib

your And question? second then Yes.

Tejas Savant

could you second My Yes. to second are in -- TAS mean, encouraging a half some Is back about of have it see just pipeline through that it detailed there. on in versus clear getting 'XX? talked sight the sort projects sort to the contracted versus something my coming of actually, of you point just a your pushed of And sort year? of timing sort to the through you question, question that bottom-up that work related XH comes recovery, put in comments, Or the of guys. right? So the switch expectations of I'm to is back see to confidence delayed? going of you 'XX finer to what build I the large gives I to work But recovery real-world want it you be terms evidence in line of here half?

Ari Bousbib

Yes. Thank is I a mentioned, into level, one that you, pipeline No, Tejas. -- not had a up specific contract it's or bubbling I that overall highest sentiment the any we've the ever. anything as mentioned,

last some a indication we've on here from the delayed a we year. and built so level cushion that's it because but and forth, up should It's of metric flash good as we've doesn't be probability adjusted year. always translate burned Now so that is. pipeline And standpoint been exactly for the

along programs. a sudden, a wouldn't seeing us reduction the is significant containment. okay? And of so that's cost pharma, we're on are little our -- bit Our not having not uptick -- I sharp conversations all like focused all with we're cost -- especially what announced gives clients. Again, with kind clients this very confidence They've a of large of very,

of number anticipation impact we're tended pharma be LOEs of having some significant the and conversations of in so but that some of Some which respect variables, cost so compensations, pricing on. and That the negotiations processes number into are projects, fact the with a of of these discussions other have life soon there on back having them, those towards we to vendor the those well, request unknown the into and there. The And in all are to we are cycle still years and anticipation therefore, of are more for would large the translate the anticipating and that as them the clearly few of as the past number pipeline, year. is next opportunities, proposals we know with sales really is than of clients in the they a the sales given we're IRA, were in up. end difficult or concretize of coming that

Ronald Bruehlman

hundreds one just hundreds emphasis Tejas, In business and point of here, the of too. is And particularly TAS projects.

You're any there. not have going needle move to individual project the

Operator

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

Luke Sergott

the that strength has like side about double-click give back there's weakness that about? writing, we the like about and talking change things -- the been of has in regulatory I a recovery confidence what Can the in where and lot medical that or kind to have, the guys you TAS discretionary sticky but if And half there's you're any like side? into looks more where on -- you that. and pipeline versus keep that the confusion of improvement talking the actually TAS been? but recovery, you of about versus talk big can think

Ari Bousbib

continues our way business putting caution ourselves a last in call to what you consistent the environment our grow. Look, it Yes. year. far large businesses own of that their we the of Well, last look, if because own And you've forecast in as that want at conservatism, mentioned, that business some are, so seen we've 'XX. of general of is to forecast I year. mentioned and sales end experienced the I'm you with we companies actually before, cap same were declining amount factors fair for even The the for experiencing operate

started that services data out, well. as continues we never point up not but holding sell business, to are in growth It's discretionary I you a growth to segment, because been say the is some we're consulting the so sequential compared analytics But for business these Now the example, exactly the fast not to correctly discretionary, of look, part business, there headwinds TAS a pick hold that saw to it's with the of more have QX. bit improvements QX which in up business. up. We and in

not more side, uptick, but positive saw steep saw this even a on not side. a the we -- So an even discretionary movement discretionary again, curve, we

discretionary the business, in the within is on little cycle bit We of of impact and seeing continued longer a business it part and the real-world a of our started QX is TAS, performance real-world little that project in QX. did QX, the that in Now cycle. longer bit impact a

we more piece, the need and So little business do. that's more QX. if totally real-world and got a a I numbers hasn't consulting, might stuff summarize it's [indiscernible] a it's analytics piece doing better. the further our are in to holding longer a you've The some they that in then data And up -- changed. better, That QX discretionary The little cycle, because more uptick bit maybe bit movement deceleration the is little perceiving. even and discretionary of impacted there that

we early world seeing started you enough we're continue that we But seeing. we sense Consulting in the year, color QX what part in QX. So gives of the hope if you and saw issues in expect that QX, for to I in in a get to the and and real -- here Analytics

Luke Sergott

does, It there's -- on follow-up of a here. a the And concern then lot I does. guess it

in you're pushed of actual sales is get And more more XQ? as the back paces the about half you're -- out stuff as But year. closing you're obviously, a bookings of quarterly kind the getting at of enough we Some level bookings look the maintain next see you year to your this here just X had. to segments step-up But and softening thinking slowing see cycle, the when all peers the the out some to that book-to-bills full just volume of levels of talking Do the could as dynamic just in the about some what RFP actual sustain about. maybe could you across that it needed guys biotech RFP XQ. talked that, you Or your is that have months? over of

Ari Bousbib

of you've look, mean, lot got I here. a hypothetical

are that. kept that years now, EVP interesting. you see to of to mentioned, at This at as competitors weren't whining, commentary. result going this going of It a seeing I something. anything, who world about and least, it. of even stock a badness suffered We hear not You're back referring "whining seeing funding." people any If is that drop-off it's being dramatic would correct. again. further was couple record competitor to see didn't in I that I as all and And we're People a hat didn't want telling levels. had point their up no the we we ended There funding. happen. on our

good. the come actually trend the of things get very over When very, in that terms bookings. continuing. strong a of in is quarter, That So course EVP We bookings in typically year. the was see following funded

see yes, the So reprioritization little of segment. Large happening EBP I that is a bit pharma, don't of there projects. on

opposite. anything every But all believe that moving play don't You've doing a not we a anymore. we sudden, to the in pendulum I heard to saying, in that a at of but too. be lead it's Ron we're dynamics, as worried, segment, quite people programs, again, But segment. the little have all We that moment, research different others, from would towards are a that There's than looking earlier we me not FSP. bit mentioned -- at see more bit of from other these us, discussed of of sudden, like a play

large our XX% said, flow in board, I that's in EBP and QX, the and pharma RFP double was up across digits in strong As as well.

if the -- a bookings a is report even year. the small very and you risk and For and stronger because contracted EBP which leading year same was on QX. based actually as will, maybe know, book we to for sort that of you indicator Full strong full of, bookings work. Awards, in thing, others number of

report which and still before level. at kind contracted awards also only Some record of is high a awards, are

to at our is we again, think the at digits, across very and board. double we are qualified that that high pipeline, is those pipeline, look the pipeline to come and digits, pursue have our come record fruition. most total single is are opportunities to we again, the -- up strong methodology and viable a most the in screen single to the down high all likely the ones look which you level. pipeline at The own up to we digits, If Qualified want

don't tell I know, I me let I know. to you. So know what you -- that don't don't else heard anything

Luke Sergott

in I'm No. in That's seat. you're my and your why seat

Operator

Your next Elizabeth Anderson ISI. line comes of from question the Evercore from

Elizabeth Anderson

you for obviously, shift is I very course But I complexity year. you you're incremental current of a just sort set said [indiscernible] with the demand over about FSP? on seeing the what color it, the be in the there? revenue question would comment environment environment. much bookings. the of curious the so I Thanks the percentage the had on what of Can know was XQ

Ari Bousbib

our The bookings how question was of is much FSP.

that I correct? think over is little a XX%,

Nicholas Childs

the [indiscernible] the for full for year in bookings quarter Yes. that FSP. the -- and was that's

Ari Bousbib

more be much -- much was can EVP? How -- Well, how you

Ronald Bruehlman

EVP bookings is of about our Total for year. the X/X

Ari Bousbib

large mostly pharma, is FSP think right? I And

Ronald Bruehlman

Yes.

Elizabeth Anderson

FSP? how on we think XXXX both card rate of And the in then full service would as about terms you sort of comment work and

Ronald Bruehlman

Talk about pricing?

Ari Bousbib

better mean, so be card, the the negotiations biggest you I capabilities, that's -- from and should got rates, several clients continue clients I got and before, are be then for we clients don't able we've got this to -- delivery labor on. to you've look, me [indiscernible], But I better pressure a surprise over better and actually and been continues we the company, to behold, said have. years, better that negotiate lo past and that is as want to more. system rate a a charge that know competitors. tough Yes. And

the We lower a listen, a sell my have answer And I CEO a when to me lot strong we need And tells competitor and client have the and relationships. with whom to it's this hard say we is reduction on says, [indiscernible] we you cost lot to because sell the calls stuff. help you, no. than in rate I'm better going here you it's to program, of

So there. managing hide don't to the we yes are on long-term more that -- and than pressure the is say generally There's maybe before, but I we part pricing that's of having relationships, had secret our we fact this board. [indiscernible] across no everything, we

Operator

line Jefferies. question Windley the of comes David from Our next from

David Windley

kind in principally Ari Elizabeth spent cycle of A think, there. little I pharma. bit follow-up large a of environment December, to bit time talking quite of the decision about we a with,

late, good. So look I pretty I've but joined RFP your heard describe that you flows

that were loss the question How do -- awards Your for that. lot up, Elizabeth's on I'd that also elaborate mulling answer like to longer in processes back speak? we exclusivity of bit to little whether and it? that important closer things of -- I or suppose seem you be to products Elizabeth Or it And of look and pharma you're that is Those be it? like clients of environment? would business, good. you think was of prioritizations but large a to their When you around the a or probably described holding middle still feel targets and kind of over to your than pricing part normal. budget end the you had pretty trying pending IRA whatever to And do are love things meet will we cut so of

Ari Bousbib

Well, mean, double make I RFP flow up and our again. they are are The -- it's is backlog like look, want continues to grow. to I hold not doing not anything I people again, digits. sure not business, back to mean, like on

Nicholas Childs

ever. Second highest bookings quarter

Ari Bousbib

pass-through the billion, a award. -- if in very had the $X why and first that from over was large recall, the had that specific last like of that think was We second highest I bookings we the -- was which quarter proportion Right. highest, ever one I big That's quarter. year, was it

like -- quarter, this billion one-timer ]. $X.X quarter we nothing big mean had, no regular was So that and with award [ that. what, like unusual, I or a anything

-- pretty the a are it's numbers So numbers. the

to answer continuing the EBP, this -- number your We difficult, very funding particular the and but more And and volume negotiations, it are conversations the on EBP year. is of high. the question going the I saw volume up. see longer, strength opportunities, more all-time keeps that strong, we think again, Now

Elizabeth the hold ourselves on. were on thinking side in question I a we Anne, we business. side, the environment negotiation and before, the us that with That's asking of sign not and the segment, some we're shoots we pressure, think, so So or TAS commercial respect we told back that are of pricing like and to on and as of, on when shoots we see about green the middle the perhaps are one to on to difficult are R&DS and But used green end expression, the experiencing more some year. was the back the

board. digits But one saying, Again, the the are in and anything. or is not numbers and qualified of those one to double no going are like pipeline I'm doing high, I'm across conversations. going up RFPs, showed the strong an the not We numbers segment there's all-time pipeline another. hold, at It's

I So opposite. quite would say the

proposals, the are number very and in think opportunities to very, busy. terms of request very is chasing we responding of I for environment the fertile opportunities,

David Windley

Okay.

could I with if the step revenue are might a the and award then. growth. influencing below to RFP that between disconnect pace up To single-digit ask a perhaps next the factors be mid-single-digit what follow go So high double-digit

I Part to I little the bit going TAS. of that of try in off that a know part head TAS, past. I'm understand is is So to that.

to to So is see conclusion a given and but any I attribute year up. now we'll also ramp some in that you it And people aside. would like small project any that to that COVID transition that other those ramp big project set a come you new is know COVID, and enough

growth would growth, revenue seem should backlog and you're be there's R&DS there. where to it that the a point disconnect translating a So to

what would So attribute to you that?

Ari Bousbib

Yes.

-- [indiscernible] any it's other. like points to by a XXX specific That project to in coming one points. it's basis $XXX specific. R&DS, like 'XX, down not case. not growth basis So you it's again, represents of really And direct resources, not headwind We the took if a It's specific R&DS projects. XXX very have it's million. take It growth,

remarks, In of slower lower. we time. therefore, and oncology. The issue of number that And happy because oncology And revenue addition, a to the rate that's has We're It in all the this more area. in around. [indiscernible] therapeutic for than it share my been complex. down is continue more about market. a in a much anything area into fastest-growing is takes patients. be. difficult are continue to a that and mix in mentioned issue is wins, hands area, introductory and have while It's win we therapeutic burn It will with winning more that else. the recruit that It's disproportionate And to I we

in but pass-throughs happen reason that's headwind we tailwinds we the years, years, some pass-throughs. we've do hard Third to -- to mix, from have some have from got a we explain, It's be, and and just consequence.

for approximately pass-throughs. XXX fact a with growth going I'm just that forecast inclusive accounting be to and to artificial to points come headwind R&DS irrelevant, know, of basis not but to -- top 'XX, are of our an you represents R&DS, add again, will pass-throughs headwing line buildup pass-throughs no the say our [indiscernible] of growth, but -- come it's with They profit. As they

basis XXX So mix, if COVID you that's add of points. and points COVID headwind down pass-through the XXX XXX of in from headwind points basis from step from the basis

on business is side. high normalize you digits and this the back digits, high add single growing you if But right. you're So our R&D single very underlying

that's I reconciliation. the think So

reported behind don't I we that should here. think you the actions smart that thank put Dave, you a growth analysts the certainly growth question. to we and those But well. barely of 'XX. everything last But bodes It our out 'XX. the apparent here. between be You're again, think hope be I want was 'XX 'XX, in point we're about on which, for all We're of seeing, disconnect and in to 'XX issues. the talking you're to Dave, based bookings I [indiscernible] should certainly be strong right, of

Operator

back you. question-and-answer ends turn Mr. This to I session. the call our over Childs,

Nicholas Childs

earnings We forward speaking available will I rest follow-up to again everyone, to thank Thank team on questions first April. you, Thank you day any for have. much, call the be answer much. the very and and you you you joining quarter The to us our look today. of very in

Operator

This concludes today's call. conference

may now You disconnect.

IQVIA (IQV) 14 Feb 242023 Q4 Earnings call transcript