IQV - Earnings call transcript Q4 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 Fourth Quarter 2024 Earnings Conference Call.

[Operator Instructions]

As a reminder, this conference is being recorded. to President, call Investor like Joseph, to now Vice Senior Relations would turn over the Kerri I and Treasury. Mr. now may you begin conference. Joseph, your

Kerri Joseph

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

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

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

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

Ari Bousbib

was and you our in to us at Kerri, you person great morning, to It see year full for you, discuss joining XXXX -- you of Thank results. good we many showcased at our you and some Thank quarter tour and today of product helps as of Day appreciate headquarters. demos I industry-leading Innovation breadth Investor our December depth the offerings and our Park laboratories. hope everyone. this

of number executed. the that a and being capabilities with how outcomes patient afterwards is fact, commented of improve our depth understanding and a to of you our me breadth to strategy left In they deeper

As we with results versus and flow X% currency, at revenue full the we of over cash step-down, as earnings well which delivered income. of growing net solid as COVID XXXX, XX% $X.X closed year XXX% per of year represents growth constant of growth revenue billion, adjusted diluted excluding share free last X.X% adjusted

the challenges and deliver results was that Act, in We faced to Inflation to Reduction portfolio reduced decision-making led consequences saw reprioritizations. discretionary industry spend of the of team IQVIA proud the able which very customer an significant I'm in delayed XXXX. the

and and noise high the U.S. around rates we created Additionally, which unrest, that persisted inflation, of all macro challenging questions and of a had continued impact with and the political the incremental tremendous foreign of interest currency about headwinds amount geopolitical environment uncertainty. elections in world,

specifically, growth achieved in in results. IQVIA strong an we had stood the really In as few our More broader very quarter, companies that out positive outperformer. sector fact, saw fourth you industry and operational

a delivered per Revenue share, impact in flow. free came the and we cash of excluding record foreign of high X.X% about growth of our work. growth, COVID-related diluted earnings in guidance adjusted quarter range, above representing the We exchange under end and just achieved XX%

team our and business the side, the for highlights the new done contracts. net all in work that by billion, over R&DS was bookings quarter new securing On $X.X clinical great were this

we helped quarter had anticipated. the materialize This outsized the mitigate of level in that as did cancellations just

consolidated even some XXXX. as our large their this of significant and R&DS pharma partnerships environment, alliances. macro We Now successfully despite year, business reevaluated strategic tough all the had renewed past in achievements many clients the

we In positioning growth. and our established incumbents new for business partnerships, several work future relationships, positively the scope of addition, expanded in displaced

XX top partnerships companies. IQVIA of made We the business. with XX now our significant pharma has global advancements health in

control Health CEPI, Innovations, in with a swiftly Epidemic the Africa. Marburg collaborated outbreaks we in Poliovirus so respond example, Coalition were for Organization the We For virus to disease Rwanda, helped we to World Preparedness -- able outbreak.

were we outbreak Sub-Saharan needs. trial a biotech selected Finally, a mpox medical a large critical expedite by client unmet in addressing for and vaccine to Africa,

public health show This crisis, to. there whenever is the that to all a officials comes IQVIA is turn company

TAS. low gradually moving and ramping it quarter. trajectory we would, growth materialized said to each just the up the growth The half Now single-digit first way in

exceeded by the growth than second XXXX, was fact, demand had but organic expected stronger world across this Obviously, versus half. with the subsegments to in growth. also second half of our In real all returning helped double-digit actually expectations compares easier we

We about was with which the step-down, excluding finished the currency constant year at of X.X% end growth COVID and the of our X.X%, guidance. high

Reflecting TAS. highlights. what XXXX, in proud past on achieved We this of XX couple including introduced favorable innovations applications. this XXXX. into AI-enabled of A expect we're we XX to year, sustain business We trend

IQVIA interact number our products our and of Gen a allows AI get answers with introduced first-ever almost It example, their growing For AI we instantly. to interface. Assistant, customers questions to

clients, patient X which deployed pharma. We been relationship X a number AI-enabled at XX offerings, launched has of manager, patient including top our including already

has the begun business, doubled which digital network. we've U.S. our largely websites, Europe, of expanding partners was number where into digital now to are that Our into integrated publishers up now and

at are reaffirming Day. you Investor guidance Now the XXXX, to at looking -- we provided the December we

On things anticipated. continued side, we as the TAS to have recover

another cancellations. quarter of the portfolio we bulk we the of On completed. been the X think But and reprioritization pharma R&DS has side, at large some so elevated we still or demand fluctuating see have volatility, might

R&DS environment the feel favorable. be fact, leading indicators In good demand we to about continue because

was mid-single actually For in example, little our QX higher EBP RFP flow digits, the up segment. a

is EBP was funding, across strong segments. you pipeline with as qualified positive Our up XXXX. growth also all noted, through

higher than has it in is funding XXXX. which XX% year biotech was billion, Full over been $XXX

much have we Now XXXX ever before. than did higher in cancellations

digits average XXXX, higher XX% at the an constant for currency cancellations up at even constant X led than nearly end-of-year year of a to new which higher than But $XX.X before fact, years. which X.X% currency, again, the stronger previous XXXX billion, of is, versus mid-single ago. in gross backlog were our bookings and XXXX In

quarter. the turning Revenue the quarter fourth constant for results to currency. on and Now at the for X% basis grew reported X.X% a

of included on Compared acquisitions, to both and quarter of top work line the and mostly COVID-related X points the constant in basis, about contribution from last we currency year a from excluding that periods, about grew X.X% quarter adjusted of in revenue X.X%, on X.X% $X.XX the TAS year-over-year. diluted expansion. by side. growth ongoing discipline, XX cost margin driven increased Fourth EPS bps quarter EBITDA increased management adjusted and which Fourth resulted

to now raise bar business color and you give me in by in achieved on Let investing is every highly success year capabilities. IQVIA's the some differentiated activity. innovation continuing

transform life You addressing potential NVIDIA has sciences on AI agentic commercial to care example, clinical trials transform saw the lengthy processes improve the expedite to the and and in helping and side collaboration our patients. by advance solutions. our treatment recent to adherence health with by complex or announcement of AI diagnosis for industry, by

AI researchers, accelerate with AI will collaboration essentially agents companions help HCPs workflows our to with Our the digital agents introduction of within patients. becoming and NVIDIA

evolving established achieved deliver partnership and ability our the solutions is of was that win for to IQVIA what longer-term larger, commercial technology clients portfolio. to some as and enabling offerings. awarded because combined see examples information, top of strategic utilize start client IQVIA was and analytics unique TAS. few examples. give will is a to services. these a solutions The analytics, outsourcing integrated deals To me omnichannel capability. demand our us deliver let me much with quarter, promote you we pharma here a with XX information, combine Let give marketing in rapidly This more increasing you to business

is clients' commercial cancer, This launch comprehensive biotech also and expertise launch partnering IQVIA deal regulatory ovarian activities. to leverages capabilities first market. IQVIA's in for be treatment company which large execute new a product our commercial and process, will with a to

comprehensive Another includes support asked commercial in condition compliance client them new sales, by for therapy that and full and infrastructure, a to commercial severe field communications, and launching IQVIA providing pediatric OCE. a medical EVP the cell

sources IQVIA reducing data information countries, that integrating client's support and to efficiency. we A its system operating. global will will IQVIA operations to be single large the XX diverse strategy over all streamline enhancing client engaged and centralize pharma simplify standardized information a from complexity by management into

new Moving markets. gastric IQVIA XX efficacy now in world. top support and is to real using AI a advanced demonstrate pharma to approval gain treatment cancer to client for

XX XX submissions regulatory various Europe. efficacy to chose help in support and track top IQVIA pharma treatment client disease of in The

operational and wins capabilities our that me success now RDS earlier across RDS. I Let to dynamics. some to team, the highlight noted our represent notable therapeutic of segments, and areas I want move

start full-service top client another addressing conduct III global study IQVIA complex III for Phase full Let breast won pharma. selected Phase pharma to We me XX large pharma. and cancer The asthma with study top service a a COPD patients. X

IQVIA, XX pharma awarded top client a large FSP Another contract.

Phase MedTech. and condition. X ability efficiently. a global device notable trials study specifically a study medical notable to oncology incumbent on was strong long-time CROs. This a complex critical based IQVIA award is cardiovascular evaluate we include because novel III approach a awarded displaced few to awards large Biotech, data-driven our targeting manage a

XX for X,XXX global another pulmonary for full-service fibrosis progressive which nearly biotech involves study Another client study in disease, patients countries.

expertise. to with The able pharma, in conditions we're II marketplace on And our win results, but based work Ron large around with a previous congratulate for acknowledge therapeutic to their Phase tech challenging, again, for the call world trial take for Lots past footprint passing team. we It I'd and year. EBP. limited before this CNS our a over and the global more to research. And of success detailed to financial rare this extraordinary of delivered review was the great like our a minute employees and med

best in in XXXX was received Customer to Laboratories Leadership few. Award I XXXX throughout use want by certifying QMS care. of Sullivan Award Leadership solutions excellence also of IQVIA just MedTech awarded health regulatory Value and My highlight to recognitions Zero care & awarded in year. Breakthrough AI Race the our XXX% Frost the the AI Enterprise We for Awards. for Lab SmartSolve quality Green health laboratory. for Global IQVIA amazing the IQVIA's recognized a

was companies named Forbes a most one as the in #X fourth and row, leader most Best of IQVIA category for named in admired recognition year in importantly, of And annual services. eighth the company world's lastly, other and pharmacy care, for the our in year row, in health Sciences admired IQVIA World's a received Fortune's Healthcare Management. a We survey. And the was Life

#X management innovation, of assets. corporate addition, In categories of the global use ranking IQVIA and competitiveness, people earned in

Now on Ron our will financial performance. give details you more

Ronald Bruehlman

good everyone. and Ari, morning, Thanks,

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

currency and all Excluding COVID-related constant X.X%. from mentioned, Ari both approximately X year as from work, growth. points about And this growth was acquisitions of this contributed last,

at currency. declined constant X% which currency. Analytics in Solutions X.X% was $X.XXX X.X% quarter X.X% and over and down reported But Solutions & of at COVID-related fourth constant $XXX currency. all and was revenue fourth currency. Technology fourth at for Medical Sales finally, excluding quarter was and billion quarter constant $X.XXX million of X.X% up revenue X% X.X% And Solutions work, revenue Contract the reported revenue grew R&DS constant billion, reported R&D

was full billion. the $XX.XXX for year, Now revenue

for revenue COVID-related That's the currency. up X.X% X.X% and totaled million year. approximately constant reported $XXX at

X.X% Excluding for currency. at R&D billion. all constant the in revenue X.X% Solutions was and at currency. Full in billion, year. X.X% X.X% & this currency constant $X.XXX revenue COVID-related a year last, Analytics was reported, year up growth Solutions excluding constant basis, X% all X.X% revenue $X.XXX Technology Full That on work at up and reported was constant COVID-related from currency work was year

million, constant Excluding work, finally, was up in currency. in over growth constant X%. X.X% X.X% currency CSMS our revenue R&DS all was at full year down And COVID-related $XXX but reported,

the XXXX with growth in out Ari anticipated remarks, as played mentioned we improvements his every in TAS opening quarter. trajectory As

growth in XXXX that to softening would our discretionary a we experienced predicted throughout forward-looking in cautious indicators year based XXXX on we due a spending, and if turnaround rates -- had we be recent Now customer history.

XXXX, organic strong TAS significantly, In In second the that's growth. by with happened. what high single-digit driven up finishing half picked mid-single-digit growth growth fact,

is part TAS short-cycle of business. know, you our As a

that the insight And behavior the token, the the in seen, early good TAS downturn. leading during as customer gave us same indicator industry's spend expect turnaround XXXX of recovery as a By we've for we XXXX. into XXXX serves

billion, X.X%. was move net P&L. Let's diluted was $XXX growth earnings in down that's quarter adjusted million, share GAAP income of per $X.XXX and GAAP representing EBITDA EBITDA million was the $X.XX. up was X.X% the Full Fourth Adjusted quarter year $XXX year-over-year.

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

about about why backlog retranslation alone. that that QX, backlog the net we considerably billion the $X.XX get at $XX.XX. to for of for was year XX the that share I year-over-year each constant billion of per during the anticipate the knocked to strengthened flat an fourth at That full quarter, end you and at December question earnings and think currency. income was $XX.X brought billion, adjusted R&DS diluted adjusted have recall to dollar the X.X% reporting sequentially backlog, the we'll increase versus quarter and that off to And to backlog X.X% and $X.X retranslate

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

Our net cash a flow record adjusted year and $XXX X.XXx leverage of Fourth $XXX quarterly the at CapEx flow for resulting quarter ended EBITDA. cash million operations for million million, from ratio the was XX-month in free was free flow. quarter, trailing $XXX cash

was the billion, year-over-year. XX% free Ari as up said, $X.XXX cash full For flow year,

quarter, Now you we of year $X.XXX full share $X.XXX to in bringing the our note that billion. our shares, repurchase billion repurchased

IQVIA which Board billion. Directors increases $X share to $X the actually, repurchase authorization approximately total billion, remaining yesterday, authorization just replenished the And the of by

Now let's guidance. to turn

into which of reaffirming to constant growth per of and X%. For share X%, points the up to EBITDA will our first full X% a the which the and in over revenue at adjusted COVID outlook, X% in which for XX% second adjusted billion ex expansion translates we're currency entirely basis XX of in margin diluted XXXX year, half This in earnings total between includes step which $XX.XXX XX% is million just to down growth COVID-related R&DS and $XXX revenue billion is $XX.XXX half. be work, and of

approximately to XXX should M&A contribution expect headwind of FX XXX basis versus from points XXX basis of and continue points We an activity XXXX. rates

Our billion The cash an tax $X.XXX operational This to and ], expense, adjusted also share effective million share adjusted of interest assumes of guidance D&A $XXX about $XX.XX about guidance guidance average count split income XX.X% $X.XXX million deployment diluted and is to diluted $XXX of of includes billion an EBITDA is acquisitions rate EPS billion XXX net [ $X $XX.XX. shares. and approximately approximately of between repurchase. million

continue And rates foreign finally, the balance for guidance year. assumes that the currency the as of February X of

level, changes segment TAS, the segments. the at Now and No also is unchanged CSMS. R&DS of any for guidance in

COVID-related of translates grow step-down to constant million revenue. TAS into to billion billion X% at billion. expected ex currency, I into COVID, half second to easier This comps is $X.X revenue. R&DS billion of expect grow includes revenue half. than translates in the which X% revenue $X.X $XXX to over X% X% which have currency at the to guidance $X.X in we'll to $X.X We constant first note

of XXX growth thereafter. headwind basis rates half anticipate will growth points to We improve that in first and R&DS represents rate. the lower sequentially R&DS That be about

CSMS to revenue be approximately million finally year-over-year. expected $XXX and Our flattish is

Now let's at first look quarter guidance.

down and to adjusted total be basis year revenue $XXX for $X.XX first the QX EPS in $X.XXX points headwind. be expected the is has quarter to Adjusted $X.XXX between of quarter, we the For COVID is and a to the of million EBITDA in be $X.XX. exchange approximately impact XXX diluted step revenue expect million foreign expected $XXX between and largest and billion. both that Note for billion between and

year. of guidance rates continue X that for assumes And February balance of the foreign the as our currency mentioned,

So closed delivered let's quarter, an out year. fourth summarize. a which strong excellent We

up year, In to X.X% repurchased revenue billion, over and to diluted million, the at of $X.XXX shares. we at flow COVID-related For continued X.X% excluding Adjusted full constant quarter, grew $X.X the was record Free billion XX%. a full year adjusted was the currency, work. in $XXX our cash expand up margin quarter bringing the EBITDA EPS

$X.XXX For the billion. repurchase full year, share was

the Our to billion, $X authorization Board authorization share $X by billion. brings repurchase approximately of which remaining Directors increased our

During IQVIA ranking the the year first for continues announced year. was consecutive of list Admired the place Fortune's build XX year, applications collaboration XX we in recently the most our and including named World's and AI-enabled to NVIDIA. Companies with our for innovations, introduced momentum consecutive eighth group earned fourth industry with the

to X% X%. And guidance of basis lastly, per X% share our of margin year growth full up to we expansion currency formal to adjusted constant and of reaffirmed our And X% remarks. diluted adjusted growth XXXX revenue points that at XX concludes EBITDA earnings

up over for back the Let it me hand open to call Q&A. to operator the

Operator

[Operator Instructions]

comes Rosenbaum from question Shlomo first from Stifel. Our

Shlomo Rosenbaum

to expecting Ari, of relative We about [ next could I reassessing more change that the some is change there back vendor Is there of you talk some kind in ask into still as is to work the in you ending last you it would -- the divided quarter? way quarters. wanted Or maybe through the relationships environment that part about what of and on little bit expecting dig your were in fourth about, some for ] you it and that, XQ? any into fourth to you progressed end that? the the discussion or X And potential X expectation quarter contracts how We're the just in expectation reprioritizing any operating quarter? of discussed to in volatility pending. quarter a those kind coming were had talking about

Ari Bousbib

operating is the you environment. not versus Shlomo. long and remarks, I environment told then reasons difficult we the unexpected we of my then in operating and reasons we to respect we sentiment the what that last macro in there changed shared rally, look, spoke futility has Not no, environment, Well, year. IRA, we Thank the ago in of cancellations to a Okay. reiterated December you, with all that our introductory a bunch was consequences mentioned large due for there much had

here, And that projects, just bulk the delayed. And We 'XX. fast then changed the independent for had the because be some then said to Nothing's the think closer the were quarter. We we started have have still basically that X what quarters end of the we reprioritization trials of back now, back has nature second X first or reasons quarter we it's occurred. just of of to you IQVIA, X here. In pushed they sitting the the we're December, of going more burning I'll to can't these repeat going And tell cancellation, volatility. to end to I visibility. of quarter, large were of so

out just Frankly, tell. deals X quarter? net a I going as going the have to or what We going be month be year, can we have predict are no a never bookings much month pushed -- may we the to no here in are are are -- in to people idea. What next I month the to not bookings of sell? what this after going which quarter. may stand their cancellations quarter not idea shocked always first when book, happens. to quarter, occur which are quarter, January, able quarter, you the into to this given in come will especially I X

large -- the is there, of our maybe know that pharma would X/X, of order. essentially XX%, XX% it the what So mean, is of XX% reprioritization somewhere yes, X/X, I say a I we

or change delayed, you still what not to some bit very to The good that. So no happen, we clients little And costs still and do can't but It and margin we those the that. trials may that's the our fluctuation was to quarter have respect costs, tell want causes changed. said, back nothing gross X, to on. They're We'll of but happen. certain will about okay. of year, feel because these the we question, with us much as were your maintain I which And next be the year. manage stranded here end kind through that that's that, there a of a affecting may or X little in have may for second bit

Operator

from question from Anderson Next ISI. Elizabeth comes Evercore

Elizabeth Anderson

was a things. little I give you wondering if more could on bit X color

the the environment, And was you year, sort bit pharma nice raised drivers think been giving could of Are last that are? how about spend? how real-world I little seeing the you've if then acceleration flow? also you're you more talk I of talk more kind some the of biotech funds but bit of color. what about wondering a that's any unlocking seeing a little some think were evidence going, RFP on not you

Ari Bousbib

All right.

respectively. the and number. was number $XXX billion X for has number mean, year, quarter stats were, 'XX record And that's was million. over last but like guys, look, in the been of is of last sort funding, use -- year, So okay. booking a million. that it ever segment huge number. for terms okay? think, going We fluctuation billion is to the years those the a consistently -- happen That's million, leading of exclude out, for XXXX. what last environment stats, biotech according quarter $XX the $XXX which the $XX and to indicator that's it's I $XXX of million you I $XX strong, and There's year, in, 'XX, what if same been But a which

growth So funding. in significant

in today, again, that's take said current the than yes, mean And we the we're starting the And flow, a gets months, And this. we pick And very funding year, trial good before, it take to that And takes it's good. okay, I a indicator. than strong higher is that, a environment. mid-single the RFP it digit okay? year funding award EBP was was to leading just day, very, start as the portfolio, as about time. next said, see Now doesn't us translates into ago. up so for across X%. environment up X therefore, clinical a which, but biotech because higher already saw It

the and about opportunity, of feel segment, that. EBP good we're we chasing lots think all I of So

Operator

Ann Hynes from comes from question Mizuho. next Our

Ann Hynes

it you on about going QX, in from thought I it would landscape? Or was billion. you RFP a and competitive said into pricing billion? be just how all renewed playing $X I cancellations, Just you into those you Did your know activity. that then And Can on that it know renewals out come talk that's successfully $X higher?

Ari Bousbib

all, Well, take billion work the if said about will of quarter anyone said of billion. be amount to there on is cancellation the and I I that's quarter never of quarter that where average, average And were is had so out. I -- first said historically, where past And a word $X given look I Right. But million. that large the the the I you if we find That's are double predict what number, a okay? we quarter was $X.X the pharma they at that in, quarters what kind quarterly ever. in a was surprised doing was $XXX $XXX cancellations increased were fourth there and I given million, had on -- that the it's a the quarters saw those flow. where the we level be placing that. scrutiny quarter would we programs the of years, suggesting cancels mean, through

way basically have billion, imagined. but what of $X end could it wasn't higher above the that And we it was was

billion. $X not So -- it not was quite but somewhere from billion, $X far around

very was it So high.

look a you let's fact, average cancellations for I I X $X -- given of that's years, experienced. right, and mentioned think year, bit if a for my at somewhere to in the think it's example, I remarks, the introductory billion, an what take close okay, it couple billion, just a under In with year, interesting we in the for consistent last year, the little

higher meaning despite this because grew gross able offsetting than that's business almost was and XX% higher XXXX it we grew, more our that, cancellations. level last to we year, on than even book And level -- -- backlog of year, the than more year, was This offsetting that. XX% higher, the were

in on we surprises things And bulk what as came expected. next is are quarter are that X, navigate So sit demand here, don't know cancellations -- environment. to us. there. to good just the very are It good. feel they but I the side, that as I elevated that were We going going essentially we behind of or The be

You pricing about environment, the right? yes. asked

I CROs there tend don't are all X,XXX you go around So I it's are going out look, environment, would there, EVPs out lot shop is and there. that bid, forget they deal I to mean, of difficult competition. in There not that current it's the people to be expect they of mean, tough pricing yes, mean in because lots to every more when they okay? a single CROs participate their people. unusual talk around, but anticipate and

we And side we resigned for were it and good, was exercise, consolidate future. wanted last the large spend, mentioned, pharma We winning the thankfully, pharma year And of on on bodes their these all that they won. decided side, the partnerships. very and the partners with as Large fact, all we reopen portfolio. well to and that in expanded to our

Operator

Our from Jefferies. Windley next David question comes from

David Windley

about Ari, the FSP. you from A good amount last. segue the fair talked push toward a

also pricing pressure reprocurements. also just And then at all. in mega partnership trials. You've about was pressure but could kind generally, Investor the about as you've that margin costs these with FSP I talked these for highlighted pricing Day at actually of surprised expand talked that you you carrying

be little are and on we navigation And some in the bit to that of quarter? versus business EBITDA, that seeing the pressures. toward FSP SG&A what is, gross able the up you're in margin simply, just the levers pulling margin more in to And those fourth P&L mix shift are just already in like cost a face eke so all of then the my question your

Ari Bousbib

recall, you're How of always, Well, I tasks we absolutely margins. are how we grow those you you adjusted bear offset that quarter the the we mean, still over margins. since the right to Thank We might are margins. we're in days, the headwinds? highlighting grown were of out. XX% expressed ended surprise Dave. Yes, and with have we've I In we do as and mind, 'XX, day day of you essentially our merger in the kind you, able on XX% mark mean EBITDA those in correct. range. more all end

So margins. we expanded

Now expanded margins we in a the years, more. lot early

margin But faster in that our what was the our right. we and do grow we harder. do QX. in not that our try don't FSP mix Yes, do higher I was try you're it precise to The FSP that? is mix time, it's your obviously, to QX, Yes, Now think to be our That's grow and operating mode I question. here. the that, than case in mix. the going think think depressed influences we P&L little answer the revenue. How don't It's take a the is how margins see can our is in reflection okay? influence but higher here. profits -- gross We can margin. you It's gross I bookings. The yet to our best a see of

you out, more margin of at in, if It's look example, quarter quarter year, QX, had for we expansion. gross last

obviously, recognize a quarter, of the really TAS plus, revenue you business also it's influences given the in So that mix that.

was analytics lower mentioned little I For tech. to margin in the tell lower than back that fourth It really margin can right? the and very is world lower than example, real you than I world double strong, data, real digits. was TAS, margin margin quarter, than within And is rest, it lower strong. a

course, affects the And mix. so that, of

economies you've increase optimize across we of the explore We had costs stranded high also remind the opportunities while, of I'll for us covering on rate flatten margin. gross you usual those know our pull trials been that scope quarter, that affected we our We But X lever We of from our mega level fourth And levers. constantly to the this a then restructure, the do. you And that IT is constantly constantly evaluate all infrastructure. to geographies. what how labor organization. average we

next help that the past us our just and can mitigate AI the within and that are as we to much processes. that, for some tools all of we of plan that And is you we've the use mentioned that cost tools accelerated AI workflows to the to start be, own it of pressures thing, own those. our as and And the year, impact big deployment deployment levers operationally highlighted. these within continue see certainly leverage before I

and deep it's out So optimize costs. relentless day our discipline a continuing strong in a trenches, operational focus in, on to the day

Operator

Rhyee Cowen. from Our from Charles next TD question comes

Charles Rhyee

go I TAS segment. back then to the just wanted to Yes. maybe

separate think a sense consulting as you double-digit the sense it 'XX obviously, how of parts outlook maybe mentioned earlier, us those technology we kind of like seeing just give forward? of analytics kind both in see within across the RWE, of sounded you evidence you think growth for us had real-world I those the platforms quarter. you each the can trends or for you're and and relative for Maybe mix of give the a outlook, between said about sort going

Ari Bousbib

business business I question. look, should very for you mean, consistent type resilient been thank very growth. have remain Well, Yes. and Yes. should the the with -- TAS be of a should

of did subscription-based that a That's The where It's about sticky a that cautionary spend, a end of Consulting impact period. So shut you got a essentially single low business. know, spending the trends down. info, X% digit, some is 'XX early lower part of we Analytics had through of saw as and is and not the seen that 'XX repetitive discretionary that, a and very because change right? is we dramatic significant

and quarters in Consulting Analytics year. negative in had earlier the we So

higher the and basically been through growth, evolved higher quarter, towards in real-world we high full the into year, growth digits. double towards went back back single digits. it the went the mark back mid-single-digit tech, essentially as And year, of to this for quarter. And had businesses, the end the kind And of which

what we that's saw. So

and because because confident recovery clients. Now our and the tech the in of consulting a were real-world happen do anticipated work in we also are is why this must for lot analytics did why this, activities in we some and

a When drug know, get in record our XXXX and the year. approved, you as clients was

I way, in was think had approvals we By XX the good. 'XX XXXX. also

look that's you These in. months, back was X within product, I approvals where typically numbers, think historically. These you've XX are approvals. come about to if high launch we the got X and to it very

our the drug, where demonstrations supporting the launching safety for drugs. services efficacy the the commercializing pricing and et promoting cetera, supporting demonstrations drug, cetera, is drug, the et and in This drug, pricing play. the

in real-world All of what our that we our business. and in business is analytics put

why and a had And and so those the be that's to eventually, But return second. it, needed do in business to done saw clients they we that. of strong delayed the

Operator

Meehan Our Research. from Nephron from Jack next question comes

Jack Meehan

couple of had a income statement. I the questions for just Ron, on

was just First through was wondering if the the you dynamics fourth walk gross margins there. us in I the could quarter.

a have XXX you bps lower little So pass-throughs. year-over-year, they over down but were

costs just great. trials? would color trapped the this Or X be those to was related any So

Ronald Bruehlman

is and at you're thing I the at looking you're when first reported gross Well, looking adjusted. caution not would margins,

So to to numbers. statement into adjusted SG&A that, you give that. right there our margins tie are said and there's already insight on did having gross and difference those Ari because trying a our you're if the But reported adjusted not income some EBITDA, back

margin We us. strong trials tend have the growth that got business that businesses be associated Certain of stranded like for those real-world businesses with have costs lower delayed. our to

remember So a there's time like that again, the adjustments mix reported calculating you're any can at off numbers, get But certainly. percentages back you're the impact other statement. income looking that restructuring affect added the there, things or straight that in

Jack Meehan

it. Got

makes That And for one sense. Ari. Okay.

administration Just in we're the weeks in on new front, couple here. a policy of the

then just one thoughts Just get anything NIH would any that biotech how second, And is or great. related on implications question exposure for any to -- we just to pharma customers? be funding

Ari Bousbib

is impacts, in and of and net side that overall, molecules environment. have number I more There X, large that a on. that some and small so clear. at could think mean But of positive from on between reforms appropriate what we've maybe short a X new going some X longer IRA, answer into looking the to I adjust to open nothing. question gathered is is, business-friendly apparently answer it's be I aspects the administration to NIH, of The the That's The for reimbursement and side, frankly. again, dialogue the mean, on we adjustments, us, differences levels. is PBM of all be the are been the discussed

we And cetera. and the competing will manufacturing, support Europe sciences strong yes, there's to of don't like investments ongoing sector life a innovation new think more -- other positively mean, et or China administration economies research, I more relative possibility I U.S.-based embrace

are the nominations frankly. of see affecting of lot us positives here. any a specific there And don't at think the all, I noise I around

basically pleased just head head We're noise. of What and we far our been that's so of that and has think dialogue very and the and very with see I NIH. actually FDA positive. very constructive nominations

business The very are exactly in. be environment of more good, evidence-based all good M&A they we're science, which will strong and relationships, those support is the All very, favorable.

I are of think that positives. all net

Operator

Our next from Michael comes of question Ryskin America. Bank from

Michael Ryskin

earlier. Great. I to go Ari, back want touched you to something on

quarters in to terms comments prepared You you a of still prioritization or XX% of expect sort of maybe reprioritization I some couple in be it? you're some thinking done. forward, think volatility going through rate made remarks working the it, all of pharma something the is mostly said about XX% of through

hours. card and Just -- you wondering arriving the decide -- in card, and just it never put that card. number? some fourth it come had still we've And last seems a they're and sort know we in. like how at could XX just third second there's to of announcements in more I just a you're companies mean, going do back I all the

having your XX.. are top pharma the conversations you're what just especially So with companies, the

Ari Bousbib

said Thanks for XX%. XX% question. you. when Thank earlier, X/X, the I maybe

is we he to XX%, maybe in XX%. maybe a saw you his tell I So Kerri told me them don't number with if it because XX%, hands his what give going because head XX%, somebody

And So what trying I Because know okay? a we you to Day okay, they're how looking we out. day at. in look, sense, clients, know? speak we're do to give our and

say to are an they're they still where back, to will don't decision. And of of that Again, more those or X/X kind programs are we they're know no that's estimate. okay? booked. if I in So repeat, get go. where haven't idea, okay? it's done, know, a done, go So that's just have few they're maybe made not get I I to like X/X quarter going that But given I there

they're on know We prioritizing their tell know what basing every clients know what programs and we're what looking is. pipe that conversations level. We are. they what myself that they have having I'm with they at at. us the are We

many them programs in we these reanalyze cases, and fact, help In them. review

all okay? So but tangent But bookings we that's the number? book-to-bill, the would caution I given on not another that's what infamous best heard are this -- reports the how about that quarter, mean to focus that I mean the me guess always here, obsessive someone I see for why -- it's based I analysis, you and now. you this on I'm my before. on What's a focus quarter? what's know. in on

you derive industry entire reports. What an implications then one from And what is it? company for

just you been It's long-cycle there. volatility. You window. just there very can't quarter that. the have business. don't do frankly, There be CROs are might know. a on X,XXX before, out a Also, There's said One is sector. visibility I I some some volatility. little

idea numbers have their You what are. no

about certainly next this report bookings. no no no competitor Actually, company, largest of nothing margins, larger competitor best book-to-bill. they no no backlog, and our part of is a ours, revenues, nothing,

idea. have we no So

we is idea. different X every others. CROs. have and traded publicly Each only have There extremely them idea, one no no from You the are of

them. what to report going what happen we from derive to cannot You what's we report,

one You cannot something, that earlier a us. derive or happen what saw to of I say a going our they stock report, past to in all down. our competitors few sudden, up quarters of because goes what's before just

extremely is everyone ridiculous, It's different.

extrapolate. You with Plus, just cannot issues causing our it's frankly, customers.

asking customers large pharma. know They pricing. quarterly our before about book-to-bill was a causes that. look That clients Someone and focus ratio this obsessive on that,

affects bottom It they investors. million $XX and So our of That it's haggle affects to detrimental another here, term million quarter, the the $XX end line pricing. long another at there.

So the quarterly obsessive numbers is a great. that that somewhat in not a on are there focus business long-cycle

CRO we've But done large in remind end book-to-bills or or We're a Do we company. have over I done. I about or you thesis my can quarter is any you, We've or we sorry to business here? are just just of cancellations sorry. CRO. people infer of our industry And intellectually question half on. the have I'll a The X on going another from share get if okay, with what I'm Plus what's that. is again, here a not I flawed agitated. business.

Kerri Joseph

time quarter first the Thank on be you. questions to XXXX have. rest today the join Thank The Thanks you, day of the might forward follow-up take to speaking call. of with to look for taking earnings will us our guys. any you you again and available team

Operator

This concludes today's conference call.

You may now disconnect.

IQVIA (IQV) 6 Feb 252024 Q4 Earnings call transcript