IQV - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA First Quarter 2024 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 Kerri Joseph, Senior Vice President, Investor Relations and Treasury.

Mr. conference. your begin please Joseph,

Kerri Joseph

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

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

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

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

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

Ari Bousbib

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

numbers bottom expectations. above our or year. We We had a slightly start strong delivered on top and the line to

work, exchange impact and grew our the X%. Excluding foreign revenue of COVID-related

to see industry. environment continue our a We for demand favorable

R&DS solid. our remain On from clients side, demand the clinical

Our and versus a new grew year. reached record X% prior almost backlog

CNS area aware were and many included for public the substantial that bookings the domain, the quarter you X.XX. This is representing I'm approximately of. a are book-to-bill cancellation quarterly billion, of in in new $X.X sure Net a of

which cancellation, first cancellation large book-to-bill been see X.X, ]. X.XX typical this well our [ have ratio quarter, over in to would is actually the quarter outside closer we Excluding size a

X% value, dollar quarterly it to that's high RFP terms. year-over-year, driven meaning growth and in customer in up by terms, was segments, in dollar was flow single-digit and in all Our again, mid-

pipeline prior year, a digits again, value qualified Our to strong funding biotech very which as use BioWorld, grew versus terms. dollar in was in consistently we double Emerging according source.

funding which quarter QX is First last of billion, the year. triple more funding was EBP than $XX.X

of expected. Shifting our in to side TAS, commercial the quarter our as business, revenue grew

we With anticipated for to the this year, back modest improvement of the in activity in year. an continue later the uptick forecast half

We continue to some signs. see favorable

remains persists this of [ XXXX. can more macro clients, tell is yesterday. Fed's clarity compared the For the as conversations said, clients strong. budgets, example, see starting that Now our timing from we is second everyone In uncertain toll the overall remains with there And are our cautious. the with environment our remarks on some to clients to half the fact decision ] and faster pipeline with

line to periods, now we reported COVID-related just currency a acquisitions. Turning a at the constant basis on approximately over and basis, quarter. for grew quarter excluding on Revenue of currency. X.X% from constant from both the for including work X% the to point first results Compared X.X% year, a this grew contribution last top and

diluted first and in quarter quarter $X.XX. adjusted First million, at $XXX adjusted was came EPS EBITDA

share I'd few of activity. business highlights like to a

Let's start with the segment. TAS

be from platform, partnership provide IQVIA partnership Cloud Salesforce's available strategic a engagement customers expected single will innovation have late expanding You are we with XXXX. to new integrate with to Life that end-to-end will The seen with global OCE our Salesforce. which Sciences is

built is advanced exciting the expertise next-generation for and powered and HCPs platform as to the with that's with we analytics. expect OCE very CRM domain patients IQVIA engagement with and data, the This on news industry transform that's by

as to manages Separately, be that we past, on the the how patient way in and in evolution continues HCP discussed an the industry engagement. and

there example, ongoing from in shift HCP interactions. digital For engagement an in-person is to

On support, side, services, the patient on and there patient hub education. medical market including programs, emphasis through support increased is direct-to-patient solutions access financial

traction. you in these digital we getting good building know, investing out capabilities, we've been As and are market

and the in across contract client earlier journey that into awarded areas drug to example, a the therapeutic quarter, X factor provider smart IQVIA pharma development solution For a engagement online for our in the care top understand health process.

IQVIA's A top and customer return solution optimize performance to interactions assess make decisions data-driven and marketing Navigator X measure campaign strategies. Omnichannel to bought on marketing pharma investment,

midsized compliance care countries. professionals to health global These a pharma our multiyear A obligations our compliance contract to awarded XX clients' transparency, with in solutions. implement over IQVIA regulatory allow will solutions interactions with commercial in be

a client relationship their real-time view the provides offering, helps of program. manager and impact EBP comprehensive journey the patient bought support maximize IQVIA's which An patient's patient of

demand TAS sophisticated solutions. seeing technology-enabled analytics for the more general, is In segment our

example, in improving IQVIA data data client data eliminating processing file provides streamline quarter, updates. operation speed technology awarded management unnecessary processes. the contract For the sharing, to clinical and real-time pharma a a IQVIA's top XX of

and a IQVIA ROI. stakeholder clients' targeting the large the go-to-market offering ultimately quarter, firm med the enhancing tech that bought enables execution, better Also in

cancers. to a on used which The is based types multiple access real-world. different to of across goal specific in a A XX the cancer of standard to biomarker. their treatment, effectiveness of be single with care the client help Moving for conduct of study treatments gain company the against marker patients for pharma market a XX top IQVIA and can comparative chose reimbursement

to the with a IQVIA by a contract multiple of eye a patients movement top pharma XX novel demonstrate awarded sclerosis. common was effectiveness addressing symptom in technology,

as site operational expertise global IQVIA, XX top real-world were and and a our well our awarded to scientific vaccine infection study. as We on augment A selected respiratory large execution. epidemiologic, effectiveness client pharma footprint based strong therapeutic identification

looking on reduce I'd highlight work improve segment, life conclude for to area extend doing inequalities It's to overall the and to health been and like TAS public to increased of finally, we're access of care. expectancy, governments an in quality the health. my focus And commentary

Some area, this Africa work a to help largest vaccines initiative and and eradicate surveillance focused in on response health IQVIA one IQVIA in that polio strengthen of deploying contracted with response the all of major IQVIA's to areas. in outbreak to polio UN hard-to-reach agencies is improve examples of viruses with children. personnel to types

IQVIA's across countries. XX visits So [ health XX,XXX conducted workers over more than XXX,XXX far, sites African team trained to and ]

] selected our patient EU-funded national to treatments large of will connect in reimbursement network of example Ministry to IQVIA country's project low Health in cost-efficient of risk create and a a IT to and that [ improve work single A Another this and the conduct fund manner. rates. for oncology one analytics database national The was European's and cancer improve platform country. to data area, the oncology platform hospitals in curated manage will survival leverage a the

health, checks. commodities assurance disruptions supply on XX through countries support the public more on-site the of spot chain visibility mitigate and of to services, the selected Global IQVIA availability service provide their ensure Fund and stronger Lastly, African performance, frequent improve to

us in extremely for project tracer to products extremely in on facilities are in analytics well. health. The our This who as focuses global malaria. over and important area pharmaceutical also work tuberculosis public X,XXX and HIV, clients, important pharma health diagnostics is It's from active to very this

Moving to R&DS.

represent top by significant vaccine, a targeting distinguished viruses breakthrough respiratory development start selected support A novel vaccine respiratory the simultaneously. a more Let's of IQVIA could which X highlighting awards. the XX to vaccine as only pharma development multiple

a strategic XX top secured unique partnership a and expertise, laboratory pharma model. innovation based on preferred IQVIA's with IQVIA delivery

continue our well. and share this fair in As FSP past, win segment discussed demand the for to is we stronger as there in services, we

their example, For we innovative quarter, midsized services the disease pharma a extension data therapies. known secured an rare of blood with leading in FSP management for

the includes as and secured timelines. deal III to we on differentiated based is usually large EBP the U.S. Coast X large us We AI-enabled and selected enrollment selected client and X protocol patient by simultaneously. new Phase capabilities inclusion, global client criteria on a displaced AI-enabled our to This In trial a complex IQVIA cohorts is large segment, our the were aggressive West as oncology big based and exclusion we studies incumbent capabilities. CROs awards, conduct scale EBP where

leveraging We by startup, also enrollment capabilities. incumbent, won another identification, large and activation the our EBP full-service again, AI-enabled III trial, Phase displacing site

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

Ronald Bruehlman

Thanks, Ari, everyone. morning, good and

revenue. Let's start by reviewing

X.X% versus first First a basis at quarter constant $XXX about grew X.X% quarter reported million, million of approximately revenues and down XXXX. currency. COVID-related $XX were $X.XXX revenue of billion, on

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

this to just XXX already As points acquisitions contributed over mentioned, growth. basis

reported X.X% for Technology first & Solutions constant and at revenue $X.XXX up currency. the was X% quarter billion, Analytics

first X.X% in currency quarter and all X%. currency. in Excluding billion TAS in currency reported was X%. R&DS constant revenue Solutions $X.XXX was was that growth COVID-related COVID-related growth work, all was up R&D X.X% work, excluding constant And constant

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

Adjusted EBITDA down million. $XXX That's move of X.X%. was Let's the P&L. growth

per quarter X.X% $X.XX, ]. year-over-year. GAAP and down quarter, to diluted X.X% for million grew up share Our X.X% Adjusted income year-over-year, first X% [ adjusted income net year-over-year; EPS net the diluted were $XXX million, and up was GAAP was earnings $XXX $X.XX

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

year-over-year. And a at which year-over-year. next billion, to months backlog revenue record stood up XX increased March at XX ], backlog [ X.X% $XX.X $X.X was Our growing X.X% billion from

sheet. to Let's the balance turn

and $XX.XXX $XX.XXX the As of cash those equivalents Gross of billion. $X.XXX of was XX, result billion, net debt March and two debt is million. cash totaled

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

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

now to guidance. Turning

revenue full-year currency are We our a reaffirming on constant guidance basis.

now on to strengthening between representing are actual to U.S. last we year-over-year X.X% of X.X% and billion $XX.XXX revenue growth billion, currency by million $XX.XXX the a reflect $XX We dollar reported guided. the of expect downward We to at revenue since adjusting basis. be

Now for a we And FX XXX headwind. this FX includes of we guidance points. remind about basis looking XX guided, that approximately when last of headwind points you year-over-year I'll basis now were

changes of X.X%. We FX million revenue growth billion, from COVID-related in continue of $XXX which about to EBITDA to represents $X.X to had revenue approximately to M&A negligible year-over-year guidance work XXX impact We're step-down and of a billion on impact $X.X of X.X% points contribution to our The of reaffirming EBITDA. basis adjusted activity. assume

adjusted EPS up continues to year. prior reaffirming versus to be We're XX.X% X.X% the also to guidance, which $XX.XX $XX.XX, our diluted

Okay.

second by Let quarter me guidance. providing conclude

For includes toughest approximately the FX year-over-year quarter expect ]. billion compare second a billion quarterly XXX This will the and [ $X.XXX of anticipate be FX basis to the revenue points, we year. the second and we quarter, $X.XXX headwind between of be

As a reminder, the towards is the step-down in half work weighted the COVID-related of first year.

improvement in the back gradual expect year. the to of TAS revenue Also, growth continue we in half

EBITDA And be is $XXX For $X.XX between foreign provided expected second and the the be ], million quarter, expected the is [ diluted all continue between adjusted that balance and and for $X.XX. as to to XX, $XXX [ EPS million April the assumes of rates, of guidance I year. currency of adjusted ]

a in back R&DS end of to the TAS our came So to the over start of for backlog bringing we and revenue improvement billion billion expected, continue first year. the to was $XX time year. summarize, $X.X QX the look as delivered for net strong history. bookings, to in in

we're in to see finally, strong for reaffirming let it XX.X%. With pipeline qualified growth for as RFP the forward-looking growth X.X% hand earnings indicators including back that, diluted the the and guidance continue flow, business, Q&A. to adjusted strong favorable to me clinical our strong operator funding. of EPS biotech trial such And year, We

Operator

Anderson, line our We'll ISI. Ms. [Operator your from Anderson Elizabeth open. take question first is at Instructions] Evercore

muted. yourself have may You

Ari Bousbib

Let's to queue, move operator. next the on in the one

Operator

Shlomo We'll Rosenbaum go to at Stifel.

Shlomo Rosenbaum

I about cancellation ask out. a the called to bit little that you large wanted

also more of You numbers. on And would that's the little revenue us revenue bookings? that could due terms you're to Could give unusual. and a there the what impact of an highlighting or/and bit help [ you a the absorbed context kind it little Because cancellation to with also into booking over be rolling incremental bit side. us ] also maybe then FX, to absorbing but the in you're specificity

Ari Bousbib

Yes. look, Well, Thank we cancellations. to you, normally don't speak Shlomo.

I were gross but might highest before highest by As in [ cancellations. you know, the it, bookings second our bookings. out, we way, that ] to net just new haven't point -- the our speak the history we provide

past is whenever the news. have of billion, one been Now, cancellation normally we the almost large. the about this in kind this typical the range. million, cancellation. $XX look, $X.XX we So cancellation we've is unusual $XX that done in because, And one reason very, is This highlighted a very had -- okay? million in has it's It's an

talking are reassure what I knows the think everyone business underlying everyone about. to that wanted be strong. continues we to very And we

are absorbing to I large it, a respect With look, we company. yes. mean,

time, years for those at staggered trials. These and We X,XXX working trials. staged are revenue and are, any given the over point several through around year, in each on flows of one clinical

So a in out that change global we Ron absorb as the enough and are you your question, large And to can reminded the such is due entirely we pointed enough, No FX. cancellation. us large even adjustment to guidance.

Ronald Bruehlman

jump Shlomo, one would in just thing, I there.

out trials, our actually too. And ongoing many year. our that because And trial, in the have numbers. obviously, over I a that revenue program we're an think play you're some current normal it about impact is would with asking a revenue, this absorbing of But in years. does series to

in So outsized there impact year. an this isn't

Operator

next Blair. from We'll take at Smock our Max question William

Max Smock

up Maybe saw you flows quarter. on [ in RFP just that ] the following

mid- You across high to customer groups. mentioned all up digits single

I had digits out think up last double all quarter, customer across called you groups.

forward? So then, saw of was just with in about And how on in should expectations? thoughts to terms sense book-to-bill, any this for you moving what flows into we line get RFP going quarter I think whether wanted your a

Ari Bousbib

Again, I wouldn't variation read a lot the in quarter-to-quarter.

an was number. 'XX [ year the as flat the example, flow versus ] last Just RFP

think EBP we up the which growth, with therapies. very consistent expectations. So more had the We large pharma depends that growth is terms RFP good. of single than in high flow. in It's the a medicine, a The diseases bookings, of there. bit on the our mid-single higher infectious a segment, digits was internal large lot kind lot of this drove at of and was little

] into well the awards [ The teens. grew

So look bookings. contracted awards. we often at We report

if to stage some the As you earlier EBP haven't peers that as the which were and of in reassure you digits our process. at a awards, the large And as quarter the indicator, come up report down leading in at an we by strong you just know, last what driven we double was said is in trials, will, awards that well. maybe full-service from

and digits, again strong the double record qualified up very up pipeline And look the We at qualified a is actually digits. high. at double pipeline, it's

So changed nothing our versus expectations. here that has

Operator

We'll go next at Samuel JPMorgan. Anne to

Anne McCormick

and the maybe more pipeline the and strength positive In there. about TAS positive business, some you conversations talked in some signs

are at convert more you as potential the of just areas to that any the had the As you same of year, starting you're And pipeline things initially moving with rate maybe maybe through up speak seeing you expected? your there? kind upside are macro slightly to loosen stable, can

Ari Bousbib

mean, the a And Yes. stabilizing, Well, unless we there [ the really be is here wouldn't won't now about know talk I far. anytime stabilizing then ] not fact call upside macro rate soon. I cut so that you

anticipated type continue on back same [ that and the of ] based you on we when expect the the see clients; -- is exactly based impact. prior we as budgets rate firming look, the pipeline, of it, year, same our to again, upside we to COVID our of second in towards telegraphed in the And So of guidance, currency business continue the more year TAS on with and back expected up, performance performing year. conversation growth we the exactly the half based that exclude

more term introduced related maybe have than we've know, as macro and preservation of IRA And pharma overall the this to significant a in programs. that Large you in And the cautiousness is companies, cost and margins. some driven by prior has budgets long concerns driven lot environment, discussed, years. reduction scrutiny

numbers. client is reporting doing and base our fairly well know, generally you good is very As

also have think our they is And clients well. we doing more to encouraging out, that when -- they propensity an see they are sign. that we when And usually, we spend out. are So are

So encouraging. those are all of signs

as they to up flattish give the expected. business perform low digits. could bit continues TAS, you I color data are exactly perspective. a single of surprises, to a the business on The for No little in just

being The strong down, growth rebounded very signaled now mid-single quarter, has growth we gone then slowing fourth in has digits to a is performer flattish. from in earnings double-digit prior quarter somewhat real-world actually the was which negative the business, and call, to

see that we we bottom that So we there. out think

business our to and analytics had And in good tech is little expected, And do business, quarter. shortest and cycle as perform continues ebbs the It the which and last flows strong. quarter. consulting started to business, better the a

our that's better backwards, TAS. and This even quarter, than didn't in perform went it we expectations why

all So real-world It variability we and better pipeline to by analytics expected. have kind a of And has all, strong little a there. less than in still but doing than consulting definition. be thought, we doing we that's And more thought.

to we don't promise the year that's on that, that. think Again, So can't be improve that end what know. quarter-over-quarter. that TAS, back gives will we us will And the of continue good. I confidence I upside,

Operator

move question Windley We'll next David at to Jefferies. our from

David Windley

I transition to wanted you R&DS. to

You business I highlighted FSP side. though on your your full-service deals. strong you also highlighted prepared was wins, that some you about heard of flow some the in remarks say the RFP

in state reached of So you past how some those I we've us given FSP maybe talked maybe X that models the could kind equilibrium between about does and thought you've headwinds, some play that there. margin of the on update present

your thoughts FSP FSO So [ on just ]. versus

Ari Bousbib

our total Yes. I about R&DS mean, look comprised as a FSP revenue, ] percentage of [ XX%.

that's -- you totality. if now, in So

grow every know a the it's is and so a I continues, you the say. continues there pass-throughs; higher If pass-throughs, X would to XX%, services portion it percentage FSP, and less you business, point no little only year. XX% meaning is in excluding at of look that And between as typically somewhere which, or little a

productivity, mix those our increase mix margins we -- and lower to But ] are those unfavorable that EBITDA reductions, work pressure impact with our more well puts global of company, operate areas course, on to cost and is margins, on FSP new -- and those on continue margins come playbook, has a margins margins. margins. [ on faster an to of offset to grow again, efficiency, our which usual with contracts large costs revenue because and more FSP consequently find us we contain it So impacts continue than just at

Operator

Jailendra We'll Singh Truist to go Securities. next at

Jailendra Singh

I partnership the Salesforce up on follow wanted to comments.

still announcement? that customers curious, Just from you reaction your can share it initial if any post is Or OCE early?

Also just drove [ Trying conversations to for the with what what engagement IQVIA of to leading prefer understand has curious, what given decision seen, were partner terms like up partnership? to the the Salesforce, HCPs what in digital et marketing, cetera. ]

Ari Bousbib

clients after the nice in impressive Well, a a the you. in and market we years the later know, look, XX as incumbent Thank we over global of a in XXX,XXX CRM And Life we behind which large from than market seats carved about Sciences, short quite market. guess few have is I out XXX much the position entered the you dominant today, more this footprint in we've in game. business, years. came for

what has competitor dominant announced product their a from platform. their a of re-platforming happened own is Now that here in-house to Salesforce

OCE ensure the agreed Now to next-generation on that the Salesforce we we market. in of is to in time over and product. for market to that result years. that product has And the it we've X It's platform. is Salesforce a best want strategic been partnership the continue based have develop the a And

Cloud, new to also re-platformed. We will which is on more advanced. based be current Science much the as Life be it should application on And Salesforce's agreed OCE based be it that

makes ]. in the sense this application, based be on will do Now lead takes [ It for IQVIA time IP to next-generation it it take developing to and Salesforce that.

They long the existing displaced award which happy. say next in supported years, least understand for to we on all dominant the and very yesterday, OCE the incumbent continue a are actually player very pharma client, well-known for a time. large, significant they be will with even the I can a Our have of and X client, that. we space, customers at been large won

transition, next-generation product together years is They to next need with clients the Salesforce. for we so. reacting market help the that from to to the go process are product our the customer are So When will ready new and we or X jointly to Strong very do are customers will going we favorably. understand platform, wish transition so, Salesforce and shepherd with do ready they so when base. and reaction who this positive with the

Operator

next We'll Hynes Securities. Ann go Mizuho to at

Ann Hynes

surprised what following you on that last the wondering the upside Ari, on pass-throughs. What XX% you ex up for thank clarity, us quarter just think about to time? and XX% be the gave on the you maybe FSP its question, in the you And do most over would max downside?

Ari Bousbib

first the part? was What

Ann Hynes

the... What surprised on to you

Ari Bousbib

business a of -- I assessment kind to on be on predictable. is zero this nature quarter. this was hate the -- boring. reported. I we been as and better results the by lack surprises I really in It of had it's boring based quarter. the of Look, it The environment I thought. well pretty words, of clients. very always mean, cancellation the for It's large on came the was was exactly think exact --

unwind usually so And takes time the study. it to

so And coming. was knew we it

of but know timing So those in -- the the finalized, quarter. all this was [ it would be when we ] exact

the helm Everything boring expectations. drop. much on this ]. no parts, frankly, [ quarters of in seen, at no the moving like way the it, that, but way. was by up There pretty nothing than one came surprises other the That's -- I've But are we most always

companies, of essentially to to pharma project today, by types to ebbs and of I question, bring almost are management the similar many remember it full contacts them, X FSP FSP. going models. in-house service, to was shift shifting business clients flows. was, your effort is there And these now indeed, and told of very FSP to be terms with first replacing I some an large my ago, this of to In years

pendulum. a So it's and think I swings It back forth.

seeing seeing more competencies what towards the of all for where tasks. to we the a we think starts little in seeing study, trends And in-house. we're an don't we're with defining full it's taking In years on saw thing, similar client hard not a we have a ago. What they specialized as client hybrid X the Again, the be parameters do highly we're always service studies, also up because one very out to might -- a as add more I trend end models, FSP progress bit program. the this, of we call to

And in it's full And outsourced. not But of service. that, of it's that They're aren't they kind ]XXX% parts either. the between program fully FSP manage. [ in we continue to

really of more with the and client, it's So partnership. closer a integration becomes it more

don't I EBP theoretically, permanent will Plus remember, So a XXX% it see virtually FSP. to midsized FSP point trend for I this see that is the as happening. where, pharma. long-term or become nonexistent don't

Operator

We'll next Ryskin question of Bank take from Michael at our America.

John Kim

I delay quick for I'll turning sounds is down one. pendulum to solid comment But that comment, anything John On RFP appreciate on half? sales do just the in the terms is Kim FSP go ask flows. that This that solid, great, expect some a that flows, swing hinder point? at second that there into or there. of Mike. may you percentage And the in

Ari Bousbib

the Okay, this a is when things takes it I X, a execute thank that will long-cycle X to you years I business. don't remind you. on contract. an average comment, -- these know Well, FSP

of book have very business. we large a So

the I our think Is of that FSP XX%? is it backlog? also backlog, in proportion about what

Ronald Bruehlman

Yes.

Ari Bousbib

somewhere about like and -- FSP. $X our that billion $XX $X.X so billion, Yes, of billion is worth is over backlog

deliver the is the vast about to X continue we're to the of one going other. it's see way influence going full-service over next revenue the X years to or and be not to majority programs, you So or

been takes way It's to It it. momentum, an a like needle the the that's we on move one other. and or We've the business. upward lot way a slow-moving continuously

now. to I affecting And swings horizon don't certainly it no, your similar So from have type just see then commentary second the about have an years ] that on is [ will question These too impact X half, same impact. an of happening. the short

Operator

Cowen. at Rhyee We'll go next TD to Charles

Charles Rhyee

whether maximize earlier revenue IRA be I you benefiting of want in as once of X more in of part that's with how before at companies [ going that sort Ari, mentioned engaging if multiple do the a do client function the the structure start? to EBP to local to I'm could ] you curious [ that trials And trials of winning think And decision the do in -- an about kind foresee guess, of in IRA, could potential X Medicare. simultaneous ] about oncology. curious the pricing think studies do to future? terms I'm you benefit companies that for be IQVIA negotiating on trials reason. the you could in be And general, at that do

Ari Bousbib

because it's X addressing don't with we can this, it's I what in on the but I why here. of about, post mean -- I you happens different Again, but Well, [ call that's studies, but think ] case I it that's X here different not over different Yes. thinking -- to different more a clever see was some are thought molecules. IRA. color you're not it material X it's be the the diseases case here. These give -- But think

property true one respect because of are, protection that to possible is what the the the intellectual time apply. with will to Look, protection is accelerate clients -- during of it IRA, IRA timelines the impacts apply trying will will period is reduce of which that

clients anything, simultaneously. And launch as to question, several induce if then, for of programs kind a the to that, anything that's probably if and want revenues result, -- your the again, context that maximize you

So I correct. am study, an if in this replacing we're rescue case, I a think and incumbent, particular one is of them

context the there. So that's

Operator

to next Tejas at Morgan go Savant We'll Stanley.

Tejas Savant

on questions Ari, here a R&D Solutions. I have few

you pricing versus what are environment, pricing you in back of the half on 'XX? broadly just discipline First, from peers to more your saw the starting see

that the for is ], work, of phasing Second, CNS 'XX? through nature [ revenue cancellation R&D that from there of the on the remainder the any faster in given implication of burn

And then last on AI enablement.

translating You some just highlighted into share And peers quite with why was yet? Could do of I your can you the you? aren't thought wins driver that it's which some that quarter, EBP share color interesting. a is in AI for your what you as gain offering it of on

Ari Bousbib

Okay. The three questions are totally independent.

but So to and negotiations having be first working pricing not Look, there's than that pricing from price maybe large history, change more their savings from in that than pharma as clients here. little pressure clients, on we are a different maybe There had pressure on pricing. on than we're more they're tough. no initiatives, We continues mentioned before before usual. always it's

speak want no being with and I nothing acquired, can largely have them don't respect failed smaller that's book But we there have on look, to -- spoke unusual led I that can't idea, reason in to to just competitors, which they competitors struggling to to pricing. a know. are signal nothing have past. could about comes I I and the I think that But result, what put versus as what pressure But business do, to

second our few it's this cancellation. revenues cancellation. question a are an years, the But and it look, said are a in spoke over was on It's that And very including we Your we guidance. next impact we on No, we company, fine. in before, absorbing has it address year. that. We earlier large yes, large

changing -- have hadn't not we if would hasn't for So we're you better been program it But yes, if guidance okay, canceled. it's the will, if the that.

is Our again, XXX% currency. foreign to adjustment, only guidance related

opportunity, anything if because health would limited massive -- available has think in your not in data, than people question AI, third and readily of to respect look, amount care AI saying publicly. you general, here, more not AI say, on will, are shocking With a ingredients, perhaps has the I

for best jurisprudence really, maximum diagnostics, frankly, identify that are that get for and trials, get need legal can for not patients sites for really suited for But You that's you you the identified information. And be those are search you to literature opinions. tough effectiveness if chatbot, to answers. to fastest look questions medical enrollment, for to could going to a ask

within our lot However, once environment, that's you more then are possible. a

clinical was patients. technology the out about analytics particularly you when entire it, of development to IMS Quintiles timelines, disease years do amounts difficult-to-enroll if set ago, accelerate and and so and and And merged we to of to data applicable premise X we precisely leverage massive to think rare oncology, what

easier. use set is With can for advance not of to and as a new of us. AI, some new this capabilities. the those wins ] environment, good within we've we've some imagine, to are But it our the the that And you the becomes [ are of been put initiatives results of at of tools, while, even direct had

Operator

comes at Sergott question Barclays. Luke next from Our

Luke Sergott

to I more get drug TAS how recovery so the and want of about discretionary approvals just sense how in side, better it to things and that. commercial kind the and -- a relates of on like think to

So last we we're this to XX had see but strong April. to quarter, in XX quarter start approvals starting only versus already a

the in about engaging work pharma to of just when ultimately those you for different have flowing but been start start when know starts growth approvals guys then think slower? and as bookings the when seeing it get regions, starts a accelerating, coming I'm pieces I how trying the it's in to discretionary sense and that you for through, and particular

Ari Bousbib

had will, TAS wish I the a you of on and I predicting crystal ball Look, been business. wrong here, comeback, I've before if a

in cautious my be commentary. I'll So

approvals was You're more a right think highest number point prior think, high think record to the XX% to XX last was level, there than the and approvals, I mean, were the year. in of must I that's very 'XX -- And know, the that year, almost be or I approvals. It year since, last I you year. level a certainly 'XX. as

these associated usually approvals. the launches and years significantly spend X new launches for Now the is the these follow new with that up

expect to card The the -- about do within X launch new XX% [ usually years. the we the be do. clients The what when those occurs first wild decide ] launches strong. spend TAS of is occur, to So business

So again, years it X happens over years. the the following first usually and X

confident it in year. rebounding mean, out that and we strongly, in TAS given But the has we the here, reasons be an anticipate business just year. bottom, will will this the think and -- think But it with next quarter. the reached more And the year, improvement I was of a somewhat uptick last in. XX quarter-to-quarter, come of balance approvals has we should the we we that yes, see real see the and bottomed one coming general, it are rebound only we of that's

we tone than customer optimism surfaced. are higher there improvement it is This has increased in to 'XX. have pipeline In And QX, continuously, more see frankly. The in been, sentiment. the that ever is continue this we pipeline outlook scrub better, the opportunities for

budget What because budget, the trimmed the [indiscernible] year, but uncertainty are and spend is they happened a were of towards [ sometime internally. the aware can in with ] was people the we the bit of clients second end half became negotiating quite of of last clients year -- as got in what budgets there conversations

in measure down favorable clarity helps now and is timelines feel of Also We lot is awards decision decisions, with budgets, reduced, sign. confidence a that there which have started we and for and the timeline, those come a -- the balance more on year. to get that

Luke Sergott

right. All

basically timing, approval lag -- between safe company to the So XX on with a the like guess drug there's I but like like and big months when an to be X post commercialization working in launch of going obviously, difference and between start the you there's efforts? there actually assume

Ari Bousbib

correct. That's

Operator

Yes. That I'll Joseph, to at does our you. turn time. Mr. over call Q&A back this conclude the

Kerri Joseph

today, to have. taking time to our you'll and available follow-up earnings Thank you any quarter join look the with you call. you. us take second Thank that speaking will forward day to team questions in we the of rest The again be the XXXX for

Operator

conference thank concludes for call. participation. This your you today's Again,

disconnect. You now may

IQVIA (IQV) 2 May 242024 Q1 Earnings call transcript