IQV - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA Second Quarter 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 Planning you, our today you joining Senior Relations. Senior Officer; everyone. Ari Financial Investor and Officer; Director, Mike Analysis; Good quarter XXXX and morning, Fedock, Ron Executive second Chief me President, Chairman Thank Vice earnings President Bousbib, Chief Financial for Vice and operator. Executive and call. are Perrone, With Gustavo

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

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

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

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

Ari Bousbib

the earnings The for and excluding our X% impact in results. IQVIA strong quarter in today everyone. for adjusted exchange of industry which business. us confidence quarter discuss supports and per X.X% growth the the operational revenue to our of foreign COVID-related morning, Kerri, second another good and growth, healthy, remain Thanks you, results of outlook share. with Thank our delivered joining fundamentals work diluted

continue such those to while exercise to and things new on projects see launching On faster decisions with gradually focus budgetary are more as side, improve. we associated starting mission-critical the cautiousness, customers And drugs. commercial out carrying

recall, XX, XX, second FDA the for you in at XXXX. largest year-to-date are which new years. As the for was last XXXX with And is which in year approvals average line X the approvals fact, since were

TAS In sequentially TAS we said the the that cited in of better about XXXX came consistent TAS revenue in the growth and and foreign little Both fact, analytics the image growth in X% our improving it excluding be year. in And COVID mirror quarter. and second second for consulting revenue quarter, this expectations, the X% We indicators revenue a was quarter, exchange. was the improved XXXX. going and in earlier to first real-world quarter, with was leading than

the year. confident on looking X% and remain implies year we currency, growth At at we on the beginning based our constant forward-looking X% of to for the target balance full for year consistent full established -- resulting in year the forecast of with in TAS again, growth, mid-single-digit the indicators, This TAS. for

solid. pharma largely over On to money continue and year most the R&DS have we we large large ones clinical the with our see in side, attractive reprioritizing clients programs reallocating portfolios observed demand the while in trend of the the their to pharma response IRA, from remains past to

funding. acceleration We also encouraged by of the EVP are continued

quarter funding up reports second BioWorld fact, is year. prior emerging billion, the was for In which versus biotech XX% $XX.X

equal entire essentially For about is $XX half, the of the to year XXXX. funding first billion, biotech

for Obviously, our long-term mid take EBP it to it funding certainly bodes in time segment. but translate does for flows RFP well prospects into

X.X% pipeline in you that's indicators, versus $XX.X recorded actually bookings reached pipeline up. of a of when billion, flows, book-to-bill of a growth our representing usual year. fact, X.XX. of approximately overall RDS quarter, of new prior And foreign net of new billion, forward-looking qualified course, record RFP all the the In Backlog And of good which impact and remove exchange. $X.X X.X% are is

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

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

Second increased quarter year-over-year. X.X% adjusted of $X.XX diluted EPS

like time highlighting client contracted some OCE AI/ML of IQVIA's a I'd our XX IQVIA a technology ecosystem. starting data commercial to of TAS. infrastructure optimize to top expand clients business to technology to implementation Now on of with engagement. with our client's spend our bit and effectively the their integrates offerings, manage allow customer and into including more seamlessly their analytics activity, and

a IQVIA to quarter, digital the a effectiveness In increase the clients X top won communication strategy. contract multiyear with of the

and selection content solution custom innovative our Here, delivery. targeted audience enables

of division X,XXX shared quarter large April top incumbent. the displacing X preview is for is our users offering. a current implementation global and of client a in a call, a for awarded pharma first major In multiyear our we This OCE deal a with

know, you IQVIA developing As AI a health has for of history rich care.

development and machine clinical last clients that algorithms commercialization. our heavily the years, artificial XX we've learning For in invested through support from intelligence

privacy engineered health meet in specifically required of precision, Our that the speed, standards care. trust are AI and offerings to demanding are

it have analytics in Whether patient or proprietary is support become AI solutions market-leading. pharmacovigilance, or software our services

HCPs this countries and analytics over of tools. week about using This We would normally wins interactions our a across in me inputs clients work GenAI share and examples their to which and delivers at take multiple a quarter. and last their AI insights launched messages human Let TAS how for a resonated. in and solution, in analysts from brand on minutes structured awards XX survey collects few XX,XXX unstructured least languages existing

sales in the be would enables form to entire consolidating legacy and client contextual implement comprehensive proactively solution their centralized trends, required. charts, The the the our AI tools. XX contract different solution of U.S. user top also force, IQVIA KPIs. analytics that get anomalies ask and key users IQVIA's alerts reporting changes graphs across awarded to of GenAI solution responses and questions This and GenAI

of In another client and recommendations. adherence take U.S. implement utilize AI selected patients to automated promotes diabetes. protocols. engagement IQVIA their to to control IQVIA's analysis, medical transcription which, of to IQVIA's treatment Medtech onboard for solution device patients real-time their example, train provides better more and treatment, to solution smart sentiment a It course, empowers AI incorporates

MedTech quality winning AI is in of of Xth connects eQMS, simplifies called which Enterprise in sciences AI Quality for solution Awards. TAS, intelligence Lastly, Management life artificial health quality the X,XXX Breakthrough out SmartSolve for IQVIA's IQVIA here regulatory award of processes in the customers. best Annual care and and use won System, compliance nominations

previous Moving responded to who their won well recruitment patients approach burden. to combined on were to have our effectiveness site treatments. and IQVIA expertise selected real study world. reduce with a an not therapeutic accelerate our due to focusing We client with pharma migraine direct-to-patient midsized strong

in share as is A The could Japan U.S. and coronary device, post-approval client real-world of intravascular safety EBP in as for the client awarded help register which of study other regions. IQVIA therapy. efficacy well effectiveness their the the market demonstrate in project the to Japan safety potentially increase the clients' aim device a their and

post the of and will awarded comprehensive client therapy The physicians, schizophrenia. data sources a of XX quarter, patients IQVIA therapy effectiveness pharma and real-world settings to top link significant view a the a contract caretakers. pre tokenization to for multiple use then a and apply Within to to AI data study study provide patients in

may actionable insights global third-party medical IQVIA regulatory and customers into end-to-end medical Finally, solutions enable in have research affairs the of as that can to was recognized you organization, IQVIA's evidence manage seen affairs by a transforming enable a respected the that organization curate richness initiatives. operations. leader data life sciences coming into and independent

Let me move R&DS. now to

Let's start ensure of trending result selected high-volume this to Labs market study conduct with speed globally A in where XX It area is timelines is therapeutic a harmonized client therapeutic testing enrollment. will key. this to accelerated reduction obesity significant IQVIA pharma to for top treatment. the area expected

development for volunteers. Phase that vaccine a XX,XXX the area to led conduct major trial approximately to in new enroll will vaccine award strength influenza III a Our another

therapeutic therapeutic this focused due top delivery a study. focusing study XX A effective which high oncology, again strong as our R&DS in capabilities a once on data includes to our unit need is project clients' proven well a staffing and to oncology delivery expertise, a client offer that examples. dedicated on to as Turning approach, analytics cancer, largest bookings study We large which treatments. exclusively our the area won selected conduct cell III this represents lung with disease few IQVIA quarter. a I'll Phase small for

especially deploying some multiple time By unique study for customers this delivery have been way, approach the an portfolio large therapeutic complex areas. for across we've now, who

biotech to a and cancer. validate III selected Phase their program A to complex and client for test large-scale colorectal IQVIA therapy innovative global gene vaccine cell support

were on XX develop solutions U.S. to awarded study based an the strategy timelines. the that engagement IQVIA's Lastly, in to awarded and optimal We in feasibility meet this help client top a contract cancer IQVIA, aggressive and site oncology, pharma client selection AI-enabled clinical execute a bladder will a

client add trial enablement is IQVIA's of RDS. TAS examples. other success likelihood fact, need well each in AI I U.S. AI to protocol biotech the full-service in the for such couple which amendments trials, trial, starts. countries awarded as IQVIA increasing clinical X and are reducing of discuss data by will sites and after as A initiatives and in AI-enabled also of A the analytics, the risk pervasive supported

all a and The worldwide client enhance In data work productivity, case to AI-enabled AI another capabilities. we solution reduce IQVIA is were to manage example, cost, quality a large by designed project biotech processing pharmacovigilance dramatically using our improve accuracy. awarded

continue hopefully, future AI initiatives forums. across will to more We at exciting businesses, investor the share

for now more I Ron to performance. details it turn on our over financial

Ronald Bruehlman

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

Let's start revenue. reviewing by

X.X% revenues versus of the is X.X% the down constant revenue currency. which Second at XXXX. second quarter In of were $XX approximately COVID-related quarter grew $XX reported on basis million, a and million million about $X,XXX quarter,

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

X% growth. which and at X.X% it we was constant Solutions Technology X.X% million, years, was reported both exactly up from And currency. $X,XXX work exclude COVID & was revenue if Analytics

with recall, the quarter you QX last in As XXXX TAS. COVID activity may meaningful was

constant of million X.X% reported R&D Solutions revenue up and was $X,XXX X.X% currency.

at COVID-related work growth constant currency was X%. R&DS Excluding and all

Medical X.X% grew Solutions currency. And lastly, $XXX and Sales constant declined million X.X% revenue at Contract of reported but

company revenues were half, X.X% up first currency. reported $X,XXX million, the constant For and at total X.X%

& million, up $X,XXX currency. COVID-related was and first And was constant all in all growth half currency Analytics work, X.X% X.X%. Excluding Solutions constant the first Solutions first up Technology was at COVID-related for reported million the in excluding X.X% TAS work, was revenue constant in growth in half X.X%. actual at of $X,XXX X.X% constant FX currency at currency. half revenue X.X% R&D and rates

Excluding COVID-related of was at X% currency CSMS currency. in for R&DS at X% $XXX reported growth the work, revenue half. X.X% million constant increased half constant And first and all lastly,

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

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

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

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

strong already reviewed, as the R&D quarter. were again Now bookings Solutions in

Our billion, June at at $XX.X and was currency. backlog X.X% constant at currency up X.X% actual XX

revenue from growing billion, $X.X X.X% months to XX backlog increased Next year-over-year.

now let's the to balance Okay, sheet. turn

million. debt and net million $XX,XXX results totaled June equivalents $X,XXX of was cash of in and That gross cash As $XX,XXX XX, million. debt

was ratio net Our adjusted X.XXx ending the XX-month EBITDA. leverage quarter trailing

$XXX cash flow cash capital and were free from that million, $XXX Second million, of resulted was million. expenditures quarter $XXX in and operations flow

Okay.

Turning guidance. to

the the for half us year. financial and better year our now we're of first the With forward guidance refining balance visibility, behind the of

earnings diluted million, $XX.XX revenue $X,XXX between $XX,XXX adjusted $X,XXX should share million and and and to the be $XX,XXX we For be and now year, between per million EBITDA between $XX.XX. million adjusted expect

to COVID-related There impacts about our assumptions foreign exchange material previous acquisition change and impacts. is no step-down,

year unchanged range. versus X% By at is constant gave will grow and we the this currency, in our around and segment, full February, X%, you back say remains TAS R&DS in ex-COVID, guidance is what to which the same

third Moving guidance. now quarter to

expected is revenue $XXX million expect $X.XX. $X.XX be We to $X,XXX EBITDA adjusted between million $XXX $X,XXX diluted should and to and EPS adjusted be million between be between million, and and

balance of Now all assumes for exchange our year. XX, the continue foreign rates guidance of that as the July

EPS solid another performed We're expectations. and of X.XX. increased share delivered TAS against the are financial book-to-bill per well of now diluted Adjusted remain X.X% at confident the provided revenue back quarter growth. first summarize, strong the the moving flow and the R&DS strong, to and billion we with year. by bookings target performance. driven quarter behind TAS $X.X we achieve half for earnings double-digit our resuming So full and of we year the were growth interest headwinds will R&DS of had performance, cash leaving strong that beginning Free a towards for for collections both expense year-over-year.

the let session me for operator that, with the to to Q&A. And open it hand back

Operator

[Operator of Instructions] Rosenbaum Your from the question Stifel. line comes of Shlomo

Shlomo Rosenbaum

nature the the for you at pacing. fourth is could we're lowered A maybe imply a for but have solid look the if a year. seeing definitely little a question you bit. got bit about EBITDA revenue talk could quarter, the the so the and and kind could in midpoint about it expect Maybe is just quarter little I We coming EPS the fourth ramp the that's what's very and raised at little Ron, guidance third And guidance, terms a TAS the the heartening. like the of you through and quarter. of of Ari also Looks is the on which revenue if we talk you improving, just in And quarter. bit was going

Ari Bousbib

and FX it we we guidance. much all time that than business Shlomo. more tweaks whatever up, The our reported. falls. forecast, read falls slightly Look, it favorable the It's last all wouldn't Thanks, unit is -- it in Yes. build I of into the and we review was

aggregate, bit higher So there. the wouldn't that kind of -- Again, is higher driving revenue. little I read in on a bit little much

as delivering fell, offerings little you But mean, we're result the whatever certain you've what look, have mean. than a more see mix whatever of of business And growth. and a I it's okay? even -- still the EBITDA fell. margin When fell got it bit others I yes, margin you

-- next These could -- frankly, I wouldn't I small vary I that. mean, we quarter. didn't even tweaks, it focus don't and are on again

fell, level. high mix the at business frankly. XX So this end. wherever there's than other here, still the margin the points nothing midpoint at about basis of the We're What's delivering expansion XX at and

the the markets navigating half. we've first here that's strong very the So given been from -- for

turns I think control And of CapEx, favorability on largely more the in on D&A. EPS, better which it's

pay it's EPS. draw -- so the that. line basically below And are the drives on that I much these Again, EPS the I wouldn't higher wouldn't on conclusion tweaks, much. points

Operator

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

David Windley

kind willingness assessment in context you price your asking from of mentioned think, of In Ari, up expectations sensitivity, kind or in your pay commentary budget about of Could current talked remarks, TAS. of to public the customers. market us you've in on terms price recent environment bring pressure price? of your opening customers' you I of just to your the some

Ari Bousbib

there first past introductory mentioned their with that a that good dollars. talk massive like of mean, different no a not large all vendors, true. large I did pharma has practices I segment focus we multibillion not vendor And pharma. pharma barely of about remarks, the company program, their there comes are I a clients, in a first in It change has a question. procurement cost-cutting is announced is often Again, a to that moved review to environment, my sudden is on top and bullish announced. and it's and there. and this to A we've

surprise no there's here. So

budgetary we price still can want. of we course, the said it's constraints persist. valid. like persist, cautiousness I whatever is not And What Those before

projects, still confident which them more Now we is not that improve, but Decision need cautiousness forecast. improved this some postponed do and been before to delayed. the and why started many has We to see more improved significantly, of had dramatically. have clients improving. they begun, were where feel timeline They're whole they with they've now

therefore, that. No approaching in that clients clients negotiations. expect frankly. you with you respect itself I think about the bunch they of go in advantage on in segmented side, disciplined mean, tougher way taking more clients true their And to undisciplined has a the obviously, out business true TAS on in about large terms some sometimes -- and and who At of their question got you've of kind so R&DS, yes, becoming desperate and fight bids look, in there pharma large forth. time, it's spending really that. R&DS CRO three it's Pricing, more it's are including a players get smaller the an you And side, with a so ones, how same fully can and on and who of are for industry and

continues well to programs commercial our deployment always own Obviously, full question on when can just respond the R&DS benefit. answer for our as I of is the continued get We, implement be productivity things operations. the again, the lag pricing. there But is what's a So a increase course, AI on we programs, time. solutions these tough as to before lot your happening pricing side. of and within in that's take Those reasons containment with of cost mentioned, the both we

Operator

line comes next Your question of Anne from of the Samuel JPMorgan.

Anne McCormick

of TAS your perhaps you could speak some to more a thinking you where perhaps I different about that bit business the started was outperformance? little segments within performance and of see

Ari Bousbib

Yes.

mid- Look, I rest of seen there. the has the is have business everywhere. to the Sequentially, business, You the flattish. grow overall. of mean improve. high rest business single in And data digits digits, the continues the to up. in business, started mean the as low the begun improvements FX know, and we've within different of single aggregate, COVID aggregate, data excluding news the rest And to Again, TAS, segments. no it's you Year-over-year, same,

up in past I will quarter. Real particular particular, picked world, real this say, in significantly has world, --

Operator

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

Elizabeth Anderson

you of this year? creep we see something view based do talk kind through in the the rate that on could that you mix Can Ari back about that sequentially? is half? progress How up think of the of sort burn half of point you as you back can at the the maybe business

Ari Bousbib

side I On the fluctuates. look, Yes. yes. this clinical mean,

COVID excluding hard First even of it's reported FX, are predict all, the mean, come I going pass-throughs exactly after in. to sometimes and revenue and where to

of quarterly if is pass-throughs. the will, the through some what so and you fluctuation, -- fourth quarter we quarter. see that essentially this we next And passed quarter rebounding of probably for and then That's mix saw what

see after we at we for concurrency in you the constant year, and -- the range. is growth COVID R&DS, it exactly X-plus percent in basically, But forecasted at the of the where beginning which adjust

capabilities disproportionate to bookings therapeutic the come our decision the oncology critical result, as the we unique out oncology surprising you well data, as in enroll of respect share and as rare not our mix our more With of where in. a here do patients, factors expertise AI to diseases. complex offerings, which ability continues a in and studies the is the of mix and have And with towards programs there. to increase know, Again, analytics solutions are our backlog those as

So rate by largely the is influenced burn that.

trend the by in You a can way, is this the industry. that see,

they for the burn our down. competitors, going also rate are You at and could look

the that expecting was little be Now higher, in burn what I And similar. the was X%. about balance year, bit of It Is recall, same. QX X%. first X.X%. backlog the we're a backlog it And burn the the was for very quarter was to first quarter,

up. We encouraged next that months, XX the are are bookings

billion. up is $X.X first from we say think That's next XX we recollection billion? revenue my $X.X months from quarter, it correct, was backlog where if is reported I

Ronald Bruehlman

right. That's

Ari Bousbib

this It's $X.X billion up billion, up. X.X% $X.X quarter, last. about that's And then

the on So projects we balance growth feel and next confident our and year. in and our of year of in consequently conversion revenue the burn

Operator

line comes the next Max question from Your William Smock of of Blair.

Max Smock

then of But the potential this. R&DS, pipeline second were the timeline I much to if up are year, a how you within more here? where before the in bookings at in an end meaningful about Could qualified more event? in you how a missed apologies of those flows you thinking above we did Or the at are in is X.Xx acceleration for year the bookings? RFP we are end convert potential book-to-bill And a given And in we quarter? the a of to the now rebound point kind quantify think of XXXX uptick see where

Ari Bousbib

strong. happy just reported when of COVID the years, I'm here are They become I know X.X I the We're with but Max. past benchmark. largely ratios book-to-bill amazing so in on, because because are we're with the over we We're mean with you, happy did Thank these -- X.XX. we X.X. laughing and couple very, of very studies happy book-to-bills. very X.X

ever. know about good, the we we And highest quarter no There's reported bookings, you're are -- happy what bookings talking are have It's I excellent think this bookings. rebound rebound. in the don't third performance. this I very with we

I'm is So well? conversion the Did about sorry, didn't... bookings. I'm sure you I to with not what respect as question ask

Max Smock

Yes.

Ari. Just high such the in first part a the yes, terms question. of of But bar,

Ari Bousbib

take the price, We true. but... That's

Max Smock

Yes, detail any qualified sort just RFP or sorry. you or more was provide can in the detail first of of flows my not around around of But part pipeline... how much whether Victim expectations. question the just

Ari Bousbib

I'm Yes, sorry. Yes.

was total pipeline pipeline flows, XX%. right? basically XX%, RFP this up as and What... pipeline, single close qualified again, Total was around. all up qualified are is RFP to up number, pipeline grows up The So digits. think, in I well,

Ronald Bruehlman

Mid-teens.

Ari Bousbib

Mid-teens, right.

Ronald Bruehlman

RFP single up is digits. flow

Ari Bousbib

Yes.

Operator

Your next of Jailendra Securities. Truist from comes Singh line of question the

Jailendra Singh

go back I the want individual to businesses. to

high volatile? the think room about considering in half, Or relatively teens there? recovery And there out You for that RWE, slowdown expectations these Consulting consulting, second Last consulting quarter, still recovery mid- remain down. step businesses How is to in RWE TAS, to talked you about is recovery individual some about a growth taking are you called second in as QX. and TAS in back thinking some rate? both after improving quarter. RWE you

Ari Bousbib

the higher in to are that, what No. assumptions -- where and in after we in And second aggregate. the forecast, always at That's that the constant overall concurrency, to their and see see I mean up range half that's are and X% are we rolling okay? some We TAS X% they X% obviously, environment could take you we contingency. we X% the yourself. than in make but the we evaluate discount now range businesses

see the that get that's that is order could essentially of the You in to data. to XX% flattish, if business

to the us single So has in those grow the to digits in high XX% aggregate numbers. in get order to

So feel we that's that, where we on see based the indicators forecast. leading at. confident like very And we the look that

Jailendra Singh

numbers optimistic... real-world down Your

Ari Bousbib

Which one, double digits?

Jailendra Singh

Yes. Well...

Ari Bousbib

No, No, real teens, for the low not not single but be high teens, yet. high teens to Maybe could no. world. low

Operator

question next line from of DB. Bowers Justin Your of the comes

Justin Bowers

in you of the in tools the year, some rest sense its just the of with and fair much for terms underlying winning of outlook that that the of is TAS share the So in improving the your have? of business versus how strength IQVIA market

let's And some two this the would that then to the of you've last this part are changes the year what versus, of year part of manage at business time? that say, be made

Ari Bousbib

Well, thank you.

we for They half. not now it's the they have, to was last say cautiousness the mentioned is and And delayed. are not the It's We our what were especially at in away. are and happening rebounding. those time were pharma. all, offerings before client But discipline this happen, within large to continues, along that point, that at what I budgetary time pushed And there that did market what that is clients. we second things we year go at what see mission-critical portfolio those that expected all didn't said of of First the right, things things we and that like that happening some certain before is happened okay? have last be done. to is

like market overall that are market they our second in that has It's must half. finally and grown. of the be happening will the not are it's So clients the the do happening, for segments

market. for one the number that's So

spend that negotiations the before, from a mentioned you that the are But say tougher. sense sense, willing little I are the that So is better the again, could market clients to in money. that

differently we're and the answer is that to question, there, client out obviously putting in to responsive more that aggressive the our we bid. what your actually accommodating do are projects are being clients we So doing here with putting out second to markets their commercially being for being those are make of are the terms, needs, more there we more part sure

Justin Bowers

Understood. One quick follow-up.

the decision-making you In some to too, out seeing some earlier that terms as more was for that the of that that Or new is that right? broadly? or referenced something is is the of you're for improving around that pushed -- stuff timelines opportunities well just

Ari Bousbib

stuff critical be It's needs true and broadly. done. is critical Obviously, to the mission mission

is for improved the I average. that yes, So improving overall decision-making, faster even, timelines. seen But would we've think say, even the I rest,

Operator

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

Tejas Savant

particularly that speak? following line dynamic up we of TAS. of color timeline sort share could as gives decision-making cycle of given you on what I bit sort confidence you a questioning that's guess, up this heating that just little election improved of here, the on Ari, around continues

heading the you approvals that the on TAS, last talked backlog? within consulting then Or both are you come and in about the starting is into year new drug starting related work And those piece still to see 'XX? to to year-to-date project year-end and and upside show analytics up to

Ari Bousbib

approved. second of to election approvals, and going that Thank been not I the is question, respect respond to don't answer to launching yes. with the common obviously, of has sites that's The to -- day-to-day launch client you. part those Well, think much they're drug for your the decision-making influence drugs the a on not look, it's

-- time us. to work is the lag the before comes launched and -- the that So approval there X the with to associated usually is it which at time to and months and X months' leads X between drug actually

much, what not was bit little it versus this been. delayed longer So have a should

And some no Again, year here. second year. earlier half happening of this these projects that the in should surprises of have are the happened

Operator

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

Daniel Leonard

the to recovery greater on sales elaborate than It conviction talk even of question TAS in inferred about is typical. seems a in in that you I guidance. So that perhaps a compared have the Can QX QX your bit the ramp on half? further back and drivers the the

Ari Bousbib

Yes, is about first you just that it of past to questions. all, talked TAS. in here. few I the We mean, recovery there at length answer in anyone want look,

that's understandable. So

We image that we first And favorable. year Secondly, deterioration of 'XX along year. resemble year, was the quarter the fourth in said mirror there compare is lowest more quarter quarter quarter. fourth a 'XX. would all That versus the is in the last will the a the had be last

quarter cetera. the resemble et second The third quarter, will

we see not up. fourth there -- years, So go the back and is it's stronger. case much that it's by quarter unusual, that in is the seasonality many if way, always QX do QX you a But

One, seasonality, which So reasons. recovery TAS two, these in is to... are want three, else, surprising. not the three and Anything guys, accelerating; you compares

Ronald Bruehlman

it. that as think No, I Simple covers that. Yes.

Operator

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

Charles Rhyee

ask I about want M&A. to

been year? And to curious, the points just And how has in basis back need do spent of you the do in guide because the so of $XXX-odd revenue I of terms far, about half. first the was been acquisitions XXX revenue contribution Can or both? maybe talk far I has about half for or was million -- TAS in it in in think of the RDS that you've much still what -- you think so growth. you maybe

Ari Bousbib

much. Thank Yes. you Yes. so

but and not it we to point year. contribute always we big are about but a acquisition to would our acquisitions, So that this be are be -- And to pipeline, will growth a do high, close. we along that to more look, we continue the we it's case -- valuations able have we'd wish all said

point. bit spend Yes. TAS far hope little haven't that's in a we spent half in the more year, So for but to little it's we'll than it's bit more a far, so And see look, happens. second X and in we the And much more but RDS, it. than what

Operator

from question Your Ryskin Bank Michael of of next America. comes the of line

Michael Ryskin

last before, couple trials there of a have industry addressed the months. I'm of you of the clinical this not prominent sure in couple cancellations in but been

specifically book-to-bill that then You out your and XQ your then. called one on performance impacted

cancellations always wondering happening know if -- news, below prominent surface any just but that the on recently? trended trend. I behind have that the wondering the ones make Just better what's

Ari Bousbib

the few every hypothetical I that this we've impacts down same No. not large they've my too mean, a and secret. look, profile has in Yes. and response in the And just they pharma and assumed felt The largely were existing line, world knows programs pre-IRA commentary, shelf launched. been quarters, programs. taken said I had past that it's programs the they that quarter reprioritizing other the didn't were mentioned when large those pharma with IRA the to risk-return some competitive or drugs off have that in their either

really result of as usual So cancellations for more past the few than have a that, quarters. bit there a little been

I think in net cancellations general, tell the look, we you don't bookings. what We the are. report

plus million that's quarterly in kind of range. $X.X to million. cancellations been $XXX That long whatever, the million Our $XXX a billion case time. $XXX for average are or minus, has And the

quarters more, million or to more. It quarters. million is be $XXX in could be some $XXX or So $XXX $XXX million It million some could less.

Most of about chose and last was well it because $XX onetime it number, huge let $XX we know are quarter these million that was cancellations publicized $XX a $XX to because it. million, you million, million, programs,

the that pre-call we had have we that were doing program. questions. had We And knew ones questions. Everyone

to So you about it. let we decided know

that Yes, exact But could in happen. quarter, that's billion it -- It shot. number the was I in $X what don't the was. remember one

and it usually no when And because It's simply partly a wasn't in supporting -- last announce simply data. just program We reprioritization. they the data it's reprioritization that It companies continuation essentially, of the discussed the that case the program. And the failed program. a this of the of in program I have disclosed wasn't sometimes quarter, often this that terminate a was industry. it we as happens

Operator

from Guggenheim Your of the next question line Wallace Jack of comes Securities.

Jack Wallace

out reiterated go EBITDA I like if understanding could ask back us shift, which just strong guidance wonder impacting segment. sounds guidance shift back And there a for get second the just you it's a you earlier. the TAS year. intra the of was the with largely help quarter, called mix questions better half some wanted in mix to Ari, to and margins follow-up from the

Ari Bousbib

know It's very and just just we it where also two don't have acquisitions build the I low we acquisitions than I fell, this -- this much bit most at Yes. look questions. at the generally, can a and I would be it's up and We have a little just first okay? at the our more that's attracted where could that. give more that in color forecast, come margin in -- think range, you year. chips fell. would this -- to So again, appropriate range did quarter It

have So frankly, that impacted. a could of the grand number, in buffer big not scheme It's so things.

color can't that. I much than give more you So

Jack Wallace

sizable you client the a top reasons long-time Fair just Can to give switch us then chunk side for a from on that you a enough. of handful positive better led the a or understanding client. right, one X here, won that And incumbent? of the

Ari Bousbib

better, I gave of details go into them goal. just I they better. think they it the yes, the solution program. it achieve I liked think our more like their to That's ability can't --

Operator

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

Patrick Donnelly

Ari, moment. back you how you more little you maybe just bought the is know at wanting too not But M&A, stock. environment already friendly side about capital about are do guys a the talked thinking deployment the there, what's I have on bit some

would again, targets priorities with seem the And and then ratio. with the be Maybe You just comfortable any landscape? the helpful? to the pretty debt leverage side leverage on talk

Ari Bousbib

quarter, asked obviously cash the line reduce and actually our -- I saw little not -- came bit but Look, and you acquisitions. Yes. -- if very that deployment about flow capital understand, our the that I to across continue came helped leverage. blurry, strong performance you was in you a

to we contemplates -- And long-term you, I ended were ago a always I'll said X.XXx our would long to we guidance that too we -- EBITDA very look, think we we is as continue line. acquisitions the trailing XX-month we top remind basis, from of high not our in boost have to grows. Acquisitions, contribution on were the to yes, Xs. quarter naturally deliver EBITDA, going continue which at good. a couple points of

been second over and will it's half pipeline, a hard the have far, what for outcome. X binary to just years acquisition So do predict rich to we or Obviously, able a the we've be me It's come. point. in in to

I don't that's I I'm So know. question, not sure what if your was heard. but that

Kerri Joseph

This will last the operator. be question,

Operator

Understood.

comes Your Goldman from of Sykes Matt the last Sachs. question of line

Matthew Sykes

same service EBP seeing caution EBP in should some that? think the mix large still about full Ari the At funding How be in complications revenue of we large you're would the trends in there mix you potential mentioned pharma? any FSP strong versus time, pharma. versus segment. shift for And

Ari Bousbib

between time Thank you. then all, Well, between -- RFP lag time the first and RFP booking. when funding a and on there's a look, of and lag

business So is this a long that has cycles.

but mix. for that midterm when affect were So have going not strong. get we and -- it's a as quarter long-term like we affect going to our good excited to panic Yes, prospects, we it's just while. to cautioning it's us was very this you it's funding good because funding for the it's declined, don't not said not We

discussed mix certainly what's more large service many few the trend where, pendulum what's what in it's in we we backlog, swinging to change correct recent pharma have EBP, the we've not pharma, And happened it versus the And as times the going the bit are what's the seen the FSP more full little you in we large do history very has as the more the But past, Also, a industry. of meaningfully next a what the that towards large service, this full largest quarters. of have and industry. been FSP. EBP, helps mitigate that in

there'll as to full in there'll backlog converts standpoint, is work now. that when therefore from mix correct into FSP quarters that EBP revenue be more service more the and it a versus that to there, you're come relative higher So EBP be of funding what is

Operator

With now call the Mr. questions, I turn no further time Joseph. back for to over

Kerri Joseph

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

Operator

call. concludes This today's conference

disconnect. now may You

IQVIA (IQV) 22 Jul 242024 Q2 Earnings call transcript