SYNH - Earnings call transcript Q4 2021

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Operator

Good morning, and welcome to the Syneos Health Fourth Quarter and Full Year 2021 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to Ronnie Speight, Senior Vice President of Investor Relations. Please go ahead, sir.

Ronnie Speight

Good morning, everyone. With me on the call today are Alistair Macdonald, our Chief Executive Officer; Jason Meggs, our Chief Financial Officer; Michelle Keefe, President, Medical Affairs and Commercial Solutions; and Michael Brooks, Chief Development Officer and Global Head, Clinical Development Solutions.

press is slide at available the our corresponding investor.syneoshealth.com. to remarks prepared on addition release, presentation a to In our website anticipated them. provisions pandemic XXXX, any constitute Remarks plans, statements Act for and about of make the forward-looking Private expectations financial safe obligation Securities of trends, Reform harbor our COVID-XX that disclaim prospects the results to and the future regarding we purposes update and under we growth, expectations, Litigation indicated those by forward-looking results may from Actual various materially a as factors. of these result differ statements important of factors Form December in These other discussed the are and XXXX, for Risk SEC ended Factors year section our the filings. our XX-K XX,

certain These to and During be be consider prepared which financial supplement to measures, effects non-GAAP considered with of a replacement transactions a this in will exclude core our measures accordance we call, GAAP. outside discuss should operations. non-GAAP measures for of we not the events and

reconciliation please the For I like a measures call comparable to our Macdonald. turn to over would appendix refer GAAP presentation. now Alistair? the with of directly most Alistair the to of non-GAAP financial measures,

Alistair Macdonald

drove and Ronnie. joining us fundamentals growth. year full you earnings Good cash thank across robust in and ongoing quarter revenue XX% for flow execution growth morning, our strong The Thanks, for the growth today. everyone, business the over XX% and and accompanied by

to resonate robust remains across of solutions. market terms pleased our innovative business healthy, dynamics strategy the We mindset unique in organization. how market and in with continue drive development macro both are environment our for pipelines strong product and demand The our new demand and

growth. Illingworth engagement business are our made we innovative Assembly continued long-term Solutions and of of our model and position our to have years through customer past the developing capability by for proud several modern the fueling the technology our over We include DCT StudyKIK. growth investments by Kinetic, that and expansion progress enabled evolve business we offerings data integrated have are Dynamic to as

in Specifically, in of the our greater clinical pandemic, which business, sites we've decentralized delivery regulators, the acceptance and of deployment by expanded catalyzed trial patients. capabilities and drove digitally response to enabled methods these customers, our rapid

streamline revenue also a with for the exchange of that development the process headwinds, we revenue innovations result expenses, these reduced expect a on quarter, the this in a change they reimbursable profile. COVID in lower lasting saw customers, foreign our our in While mix revenue come full expectations which, now We we've adjustments mix to visibility have total caused and these along continuation which of impact trends. clinical expectations. fourth reflect work better book-to-bill providing additional our into fourth year will the are our these on expenses, into to Jason improve awards XXXX. quarter further dynamic, and To for detail go to backlog the below information this adjusted for and future we net metrics and impacted our reimbursable your dynamic

for impact in confident excluding expenses, along continued margin of for our double-digit with reimbursable remain XXXX, growth we revenue clinical Importantly, the expansion. low expectations

from highlights the key some quarter. for Now

XX.X% company Commercial reported XX-month XX.X% in trailing excluding of reimbursable resulting the Total ratios we X.XXx and clinical and XXXX a ratios driven quarter, increase and X.XXx in First, book-to-bill XXXX, X.XXx fourth for book-to-bill grew expenses, of year for for increase the expenses, in of XX.X% to for Solutions solid commercial. commercial. for Solutions reimbursable a compared net awards clinical Clinical full impact X.XXx excluding for by

XXXX. Solutions resulting growth low commercial XXXX, growth. performance well full-service to demonstrate in continues ending beginning business remains our With for revenue in achieve of approach to for backlog customers Solutions portfolio resonating strong Commercial Deployment positioned our with Syneos the with milestones, business and Second, our One teens commercialization XX.X% growth XX.X%

flow debt cash the during during $XXX a full operating of the fourth This year. QX, to record net million $XXX.X generated enabled of for million resulting reduction we leverage quarter, level $XXX million reducing of in Third, net X.Xx. ratio our

our total year-over-year further as fourth company quarter from Now grew including quarter, In details of results. the acquisitions. the to to XX.X% delivered impact the In growth we Clinical on revenue the we through XXXX, compared manage the pandemic. XX.X% of Solutions, moving of revenue into recovery continue fourth

strength ramp driven the was segment was our SMID of customer the growth quarter book-to-bill our in related clinical service backlog accompanied X.XXx. Including ongoing organic fourth adjustment, by of Our the full pharma expenses reimbursable in XX-month resulting business. a trailing primarily for and ratio book-to-bill the our our oncology continued portfolio, in relationships larger ratio and impact by our X.XXx,

book-to-bill was our X.XXx resulting ratio of quarter for period, trailing the ending Excluding reimbursable backlog for year-over-year X.XXx and growth in fourth the clinical expenses, XX.X%. XX-month

part Revenue to of significant, Turning quarter approvals by of drug new Commercial pace the market fourth biotech environment. XXXX. our to compared funding Commercial and to Solutions. in Services remains growth accelerated the the XX.X% innovation, for driven The

Our in resources Deployment SMID growth high segment. in Solutions in record ending record and broad-based backlog our new remains the full year highest XXXX. rates customer Solutions continued a consulting, during reached and growth strength our team deployed starts including along with X-year with Deployment new

for quarter book-to-bill saw commercial medical for quarter of ratio remained in in the impact also The had a and communications X.XXx XXXX, X.XXx fourth XXXX. full of net strong strong team awards with of resulting the Full-service the businesses. our quarter, of year XX% robust compared growth commercial awards and the year growth through We reimbursable to another when full over relations gross expenses. public including

these of growth success for in revenue lead to continued the total company our commercial the XXXX. rates expect and we the offerings, strong One backlog, way Syneos of the impact With

development development medical development in and capabilities. expertise we We Michelle our be from drive of has of have our innovation, unique clinical parts Similar and which alternatives, ideally our as growing customer affairs combined science of continues affairs of adoption business Continuing our we access had solutions. affairs to As concept One, offering, as capabilities required end-to-end customers, integrated commercial and across in integrated options. providing commercial fully medical limited with our our specialized grow work full-service leading Syneos an a patients. positions integrated become relevance will all see to medical which evidence, better under we introduced of brand the development providers importance consulting breadth health outsourcing ensure is the who communications into real-world payers, and are integrated research, limited Syneos connecting us product attractive offering, continued Today, to clinical our disciplines. recently resonate integration customers high-value to liaisons, to an a capabilities, solutions this medical in One, medical Keefe, evidence this offering, leadership across traditional deep focus, Syneos integrated outcomes with is medical the space. our product to Health that to believe affairs of alternative approach mindset, and category economics, in outsourcing product combines situated

launch XXXX other approval subject January. second receipt with FDA following the commercial additional expected from for in Planning and underlying in to product underway launches also is this now started XXXX, final in have portfolio product regulatory The of activities launches beyond. for approval

commercial already into One the coming portfolio In awards clinical it revenue Syneos is business, addition our years. the the to growing and driven substantial contribute expect to we awards, over to increasingly

the additions with over ESG our Directors, of hand to our I before to Jason, I other wanted recent to progress. Board highlight areas Finally, along of

to they Bodem pleased expertise add are and are and We and welcome perspectives biopharma Barbara depth of about unique Board. Zulueta strong excited our to Alfonso the additional already

comments and XXXX Equality Our XX,XXX-plus thank colleagues our emissions other Human participation Index. recent Campaign's they and will the I new and notable on Jason? solutions accomplishments ESG as to by dedication tirelessly Rights excellent continue their our patients. closing, and work to want include provide provide to and our Syneos net-zero our innovation in financial performance In now Jason customers, of to my Health guidance. for service commitment sites to all additional Corporate

Jason Meggs

good Alistair, morning, everyone. and you, Thank

context clinical Since results, of approaches that pandemic, the some due want the monitoring expenses experienced primarily the trends have expenses virtual lower and to prevalent This is remote and COVID-XX details as our start to of have other and due the I for reimbursable discuss items as I reduce our expenses expenses provide part become our cost highlighted. Before lower to travel Alistair reimbursable additional sustained reimbursable we meetings on trials. staff medications. remaining of monitoring, levels more a decrease for in such investigator study of remote DCT

given with customers continue. our are forefront and we sites provides, long-term and trend of to expect We benefits the this it this the transition at

new across our reduced have awards. expectation As reimbursable underlying outlook in adjusted portfolio such, our for in excluding deeper our view reimbursable as ending seeing into growth our adjustments book-to-bill impact on of expectations strong reflect or expenses, profitability. asking and response backlog our received we in what expenses key We, backlog for therefore, not for confident we remain the impact to drivers, additional profitability investors awards, information well XXXX. as business only our our demand feedback reimbursable are of going our forward, existing These mirroring proactively are expenses. insights to from we've providing we and Further, metrics, in of

reimbursable earnings We our amount the are also expenses including quarterly in of the of presentation. appendix

trends business into there industry and disclosures, investors of leading margins. we strength believe in and regarding the drive EBITDA revenue they our these of expansion that continue is the our to visibility diversity practice across our improved indicators the Although underlying adjusted

financial details to of our moving results. Now the

reimbursable over DCT due the of for continued by the exchange to across certain XX%. we XX.X% year COVID-related included the for compared expectations and growth to projects. to commercial, highlighted in full XXXX down bringing expenses trends XXXX. was clinical XX.X% fourth segment earlier constant driven foreign growth our with in revenue up in billion, quarter this quarter the of SMID and came Clinical currency faster-than-anticipated headwinds, total customers and Revenue below wind lower of This fourth both strong customer Our $X.XX Solutions

in resulted also EBITDA an margin. this higher-than-expected revenue adjusted mix, However, improved driving

$X.XX expenses and compared fourth contribution Our were a and ramp for recovery tailwind of These our in oncology or X,XXX basis growth our our billion, of Clinical to by in anticipated in basis not XXXX, was the guidance. the pharma XX.X% total full including growth strengthen we service portfolio, to reported from reflects reimbursable driven This constant in acquisitions the the XX% a increases This up currency fourth to the point expenses. reimbursable quarter as Solutions revenue although from level our XXXX. XX quarter includes relationships point compared large business.

XX.X%, adjusted benefits increased XX.X% an adjusted cost quarter the driven ForwardBound XX constant growth quarter businesses, of of commercial was revenue $XXX.X revenue a across XXXX. in primarily to million, in higher and compared from of XXX Medication compared currency offset XXXX the $XXX divestiture the was consulting. Growth commercial of expenses less partially solutions the quarter the revenue fourth expansion up and in of XX.X% points includes was and of Our from labor XXX the to EBITDA tailwind point by a to in growth in with This XXXX. reimbursable deployment or XX.X% Commercial an EBITDA program, particular for and strength Adjusted our basis initiatives our contract million, a of headwind Solutions increase our result management favorable increase a the The business. by representing of fourth basis revenue mix. Adherence margin quarter fourth fourth mix core EBITDA basis margin point

This margin basis million. full $XXX.X the EBITDA year-over-year XX XXXX, adjusted of EBITDA XX.X% increased year For represents to and points. adjusted expansion XX.X%

unadjusted growth is full bound grew and primarily In initiatives. benefits to margin, and income it driven This growth by XX.X% given our in was revenue note related the XXXX. operating EBITDA in our of robust that addition, important by

increased from driving $X.XX, We $X.XX diluted of this primarily to Adjusted expense. adjusted XXXX. resulted year-over-year, trend EBITDA XX.X% adjusted driven the and for XXXX focus we as by in conversion. continue our EPS fourth increase in quarter the This interest EPS diluted year in cash on up by full flow lower expect growth XX.X% maintain of XXXX

tax level XXXX of and total to the the strong generated our by payments a net operations quarter, Act. record under days. collections for operating payroll and was of strong cash performance to driven $XXX.X the million XX CARES fourth declined million. quarter offset by This DSO flow income activity, Our $XXX partially for cash bringing deferred billing

for million $XX.X quarter. were expenditures fourth capital the Our

net repayments total million, for During million cash expansion the $XXX end declining debt leverage targeted outstanding balanced fourth and was by billion offset the revolving to quarter consistent Term credit of ended lower of debt our Loan securitization year-end. unrestricted This of outstanding lower-cost $X.XX voluntary range we approach facility. our AR with We deployment. A, by through our with at to with the $XXX.X quarter, partially of the and our capital X.Xx our our reduced accomplished on facility

for of Our rate reflect our outside in non-GAAP growth quarter effective XX.X%, of full to earnings fourth by tax U.S. driven was the lower XX.X% the increased year rate

Given of income $XX approximately for NOL outlay net cash XXXX benefit actual the was our deductions, taxes our million. in

Turning of of related This of now XXXX the our recognizing control guidance. to to COVID-XX the company's our business, COVID-XX contemplates are on view subject change. to guidance factors updated impact estimated outside the current and our

We XXXX expect Solutions growth approximately including our Clinical of reflects also to XX.X%, total to $XX revenue a $X.XX million. in $X.X from representing exchange This headwind foreign billion expenses. reimbursable revenue headwind the for from range X.X% billion, to of expected

revenue our It teens. growth also estimated for XXX from expect double acquisitions reimbursable of low in Excluding approximately net contribution XXX of includes expect in and this an a the revenue commercial also continued headwind, reflects business we in the basis we expenses. growth strength points growth which low from basis headwind points Total revenue clinical digits.

EBITDA points from an EBITDA adjusted expect margin $XXX our of approximately million total basis to We from XX.X%, to to XXXX. This range up million. XX $XXX reflects XX% adjusted

to we $X.XX EPS expect adjusted $X.XX to Lastly, diluted to XX.X% year-over-year of from growth range XX.X%. or

non-GAAP of to count and million, interest of effective $XX net during guidance million range taxes we expense $XX a from cash diluted incorporates expect Further, million. income million rate XXXX our shares. $XX XX.X% $XX of to for an to XXX.X million outlay Our estimated share tax

of basis headwind first the revenue XX.X% expect an points of points, compared estimated million and XX.X% reflects of quarter staff This X.X% and XX revenue a growth modest $XX FX $X.XXX includes the along $XXX million EBITDA normal related revenue to billion of $X.XXX to to growth of headwind of productivity, approximately reflects to to XXX seasonality. the as-reported of pressure $XXX total of of on billion approximately million. X.X% approximately variant quarter We XXXX. This Omicron contribution reimbursable This adjusted first from acquisitions growth and adjusted basis to to due an expenses. site and impact with EBITDA

well impacts similar XXXX be we to quarterly any the our launches XXXX Omicron of commercial. Syneos as and accelerating of large expect questions. product our as prepared in be we We subside, of partnerships pacing answer to happy One This an ramp the would in that see clinical and as to Operator? pharma completes remarks,

Operator

Our Instructions] with comes from first [Operator question Coldwell Eric Baird.

Eric Coldwell

focus CRO which sure today. Not on optical headwind we're supposed to

on give I that account get of backlog, the mid sure a lot if there taken bookings, the love even could Q&A your it's have I'm situation. percent concern, focus I to exposure. revenue a whatever? on even on pass-through So and will of that. your about industry revenue. nutshell, But detail the biotech, biotech mix a half at guys is curious truly clients what in small But And small maybe you want total of you if Would you report which client be precommercial us mix, was on more the in total represent to prior some might total, details company, a within by division? as at look

Alistair Macdonald

week, that I we've Eric, a at go good obviously, taken earlier element yes, unpack all we'll -- questions looked we that, But earnings in walk as of on Yes. that it. the lot comments through with the some we think that through today. a of have expecting

strength the at the work very from see in customers as the more is. we've across the the of of emerging the that SMID, kind seen So We do in moment. and well, of as I'll kind been strong ends start the biotech SMID of both as where environment we've that We've in the well majority the SMID in. larger mature, our SMID of kind great

us But look at would equity that what have with clinical partners, SMID. I what think we funding et pre-revenue who development, we private cetera. for strong people includes that, we're through that across houses the funding I sub-XX% company, we money pulling you when through call on sit would are incredibly -- where think,

good healthy with Synteract of very model the win standard kind and And as that of approach see that see the that, of at out the trends, transactional let's go do to RFP look solid we go-to-market the market, set I model. kind have we flow. SMID through think project the we take that tool well as So Syneos we kind old

infrastructure. can it You've it got They want light. that also One it's Syneos very affairs keep bring for don't commercial. attractive the They because clinical use to development, medical they to to

domestically And that. as diverse, our it's here our have to jurisdiction. pipelines, by So U.S. that internationally. we a the when sector, both proposition attractive market, lot work we also I well but in in look by think of through market the come sector very not a just at as

lot So Pac, been strong U.S. always are we're Asia we work seeing that we've of and a winning in the Europe, where

a So we we're were healthy look don't where environment. positioned And actually that very where sector. well. year, in were at see we was year, strong last which as time we well see when last we this problems We at against

I funding. customers, balance engagement So sheets the that. hear for on not We're pipelines, strong, concerns good good, them, those around healthy the environment. with well-funded a seeing cash We're seeing

Eric Coldwell

a that's great Alistair, response.

commentary? that you've the strong change say in big growth mix that probably what in commercial? people any that pre-commercial made But some pipeline you're lot -- on fear between we’re what qualitative a a when no any additional than sounds less volumes, clinical update seeing your the demand. been think Ironic -- driver out comments has values, And and environment, on break then just any you overall like is chance I but any feared was to past, thought. in a could

Alistair Macdonald

of the the I'll catch-up COVID QX of give the I look values lot start of Well, you last we in volume mean you They're were very had I pipeline. the you time at the period. pipeline, of kind I'll think when you strong. -- where back on a year, that

So SMID we We And like cetera, environment attacks devices, and a SMID, healthy in a strong problem. there that. we healthy were of levels. space, the levels that probably pharma. far across record see record We're a big competitors. parts the all of through philosophy compounds And It's a small our a market, off of environment. of have biologics. go-to-market large development, going and see see, large compounds not lot that see we going -- well, don't We et

So on Jason, of I think you got pre-revenue? split thoughts the the

Jason Meggs

Eric, you Yes. -- I during we able but by if around to mean, we at biotech a reason, we remember were liquidity time, pay and for back XXXX, metrics different being providing were on segment. pre-revenue looking

XXXX, in Fast than Those that's right commercial numbers forward is commercial in less continuously be in or and clinical a still XX% well. below to obviously, is we as but ticked bit, going and a now, XX% market. up X% pre-revenue said below and clinical acquired at biotech have than less Synteract is XX%. we So and strong well been is X%

the that's to of get this point data from and about we just a math were you overall well. So how as talking when XXXX

Operator

comes question next Jefferies. David with Windley from Our

David Windley

year up Picking elaborate, you of response your Could year-over-year on of where in on COVID on the it. catch-ups last you Alistair, part question. Eric's a lot had commented

year us more bit And from not understand that view it above that down like help sounds but still still is okay? Maybe a little you're strong. to level so as little you last a bit why

Alistair Macdonald

COVID away, when to I think big you know we go for is the Larger middle look of -- the you've years, programs carried time hold. X the got a pharma to or got last you've at over of on because into put hold. kind if the go middle and money on XXXX, the is really X start right, people back them. COVID programs of in Well, SMID card pandemic trends on

get energy kind you 'XX, right, we pacing, didn't into pharma. coming did kind So and out pandemic back market 'XX. to of the see of difference through the of in the but of SMID of came The programs much QX in pipes, a saw QX of up. we large those caught that

biotech, into that catch-up, XXXX you at across larger have to quarters we at sectors. all pandemic we as before speak, go and call pipelines the are that, XXXX. we into them. pharma, don't the look SMID, whatever you want just when so Large seeing you great went So were in to where we emerging this But beyond time, SMID

So issue an that. we with don't see

we're we're to expected mean, be that, But that peak, the far not off of We say of off catch-up and was kind the peak that record. it when all. at not far I I

see in the strong as mean So I with pipes, a big think anybody. And the commentary strong of we of we RFPs. throughput were there's it concern. surprised don't week, earlier I have some we

David Windley

there. color additional the Appreciate

that the pivoting So you're want the is conference? to just consistent? and then, January to giving that I thing the on early expect you first revenue us basically at that ask, top to confirm, Tycho’s particularly Is line, told of today guidance exactly what on in

Jason Meggs

we Yes, change a sight headwind. said pipe phasing the line had obviously as FX little in there's the to is the and the on been we in bit Dave. of going what mean backlog also flow. of reimbursable in was expense exactly, of and then, But build in this I terms the

David Windley

backlog really for not incremental to today to the significant expectations we're say information -- you action the is adjustment or your differently, incremental So 'XX? that to to seeing it relative

Jason Meggs

mid at right, the a in the if quarter. revenue, that what's shields vaccine down kind right, reimbursable clinical That's a that XX%, correct. And percentage were I trends revenue, back look and -- high take direct go on XXs you our it, you XXXX saw dump then it then And out as per of hit, net we've of you sort a we if expenses, on in top into low COVID we just Dave, range. came service were XX% mean and of reimbursable. to we happening of of XX% you that, pre-COVID, fee in our seen, the you and range. we go

XX%, was we're portfolio in that as that's the forward. adjustment go what the reflects. underlying at mid we high looking knew And we and to So

David Windley

guess, then, relative And you've time Okay. I this that to backlog terms made your second the reimbursement adjustment I is of in the to finally, the nuance, think estimates. an

kind peers be You load is your execution much would relates as DCT that how strategy your you reimbursement than be have triangulating Do it where strategy influencing think answered that go-to-market your to different different and to. peers? you of you're that and your might than remote

Alistair Macdonald

Yes.

think to I actually, X factors Dave. there's that,

think things StudyKIK, I do that delivering XXX fundamental direct. that DCT Illingworth, have are that some we been bought -- we've in-house cetera. And actually in et properly, revenue pass-throughs would instrumental to have kind XXX of converts

that's of we're profitability for So driving good us, and off that.

factor, other terms overall provision think, behind DCT we the went is into pandemic. when I X probably The we in were the ball of

started in I So leaders now that probably level, one think the up and caught delivery. I've we lower and a of from

And reimbursables more. is reflects in so of but faster gap and an moved where adjustment some it some that inferior kind it of this -- model of we higher overtaken it that the our bridges taking because quarter have position from shifts started

Operator

comes Peterson with Our from next JPMorgan. question Tycho

Tycho Peterson

Maybe where just terms the following of think you term where think are we're near up little about decentralization kind and a talk just trials? on we headed percentage that of Alistair, you do can of you here today in on in and bit theme.

Alistair Macdonald

to be. on probably or form a -- that's them I our we have used We Yes. of some trials And partial now, half elements. heavily decentralization think big either uptick from about of where

for thinking they're across thinking more kind delivery them We of -- for -- people with terms the what their are to I as in easier decentralization where their of as do. industry, are get it's comfortable market, kind what are about the more. a about evaluation certainly trials we've lot been together footprint platform put in operational will be what into it of phase, bring to of get people trial. think look I People kind about would questions think, become like a

setup, implementable, DCT have settle. ideal out of pragmatic can most wizard kind that we kind kind most a of the it and operational have We the put -- we in of information a most pops

So I that. certainly think to stay. here it's We believe

to up more think drive It more -- drives I et engagement, it execution. then include inclusive more cetera, diversity certainly better which participants, more opens should better better trials enrollment, the diversity as well. potential

modernization sites they're very things. I And So we're trials engage think in and more think I overdue of of able terms to remotely. for being clinical long and all with good technology patients

it's So I thing. think good a very

Where it be stay. it goes will it to sudden here it's decentralized. I overnight. from think -- be here, Everything a don't will I think fully I think a is

I think right regulators, that et progress patients, and first But has of been the it sector, a to are will less keen now. people about side. on be customers cetera, slow try the certainly, big as across regulatory made step kind suspicious it

Tycho Peterson

XX% how you doing think through we EBITDA about guidance then 'XX? And in XX% the should of long-range terms adjustments you're gave December the to XX% at the today Analyst Day, growth top line and

Alistair Macdonald

missed of we the the question sorry, start was question. Tycho the -- What

Tycho Peterson

your guidance? through you’re we of longer-term How do guidance prior had making here Analyst today you from think guidance about that December The adjustments XX given in ‘XX. Day, context the

A –Jason Meggs

XXXX, I the about pipeline. talking the despite that very look obviously, Yes. we’re now company mean numbers. as overall – position right, that range at have is strong of reimbursable we’re if we through flowing a upper at end and you look in at the this clinical, Alistair When mentioned, of headwind we you the had

cohorts. all that’s customer We have very across market end right a robust

have XX-plus percent in reimbursables businesses. Solutions, TTM growth, book-to-bills in both and percent Deployment backlog excluding We XX-plus XXX are TTM XXX and clinical,

through continue to our that XX% on X% positioned So to we well very journey XXXX. feel

Alistair Macdonald

Yes.

Tycho. to as something well, add me Let that

world, that. If you shoot think for we a used about all XXX happy to we a with X.X were book-to-bill, and

of spread happy It’s out, revenue, and zero-calorie that’s that. with we’re strong X.XX, X, growth. reimbursable at what, driving very X goes adjustment backlog We’re our the that years. The across whole

it’s it time. – in over will pace So

we’re reimbursables to across that You’ll growth the healthy compared but need and in driving both that super time, to book-to-bills are drive EBITDA backlog, where them we see growth. revenue the sectors difference that to over the be that

over comfortable more the given the last the of We’ve the to that. reimbursables, in we with We those visibility made this book posted. very adjustment. that you years materials we’re So X pacing

So better handle to how we it. gives as visibility you

so variability and see of manage You pass-throughs they’re there and the through in in kind handle. why tricky to

underlying So as we that that is swing. hopefully, healthy move kind we work upward you see very real business, do that a revenue that and on forward guys EBITDA of generating

Q –Tycho Peterson

Great.

other lastly, this EBITDA XX comment to of margin wage you maybe bps expansion just get and a pulling that the year? so guiding this environment inflationary -- that’s expansion are Just the can year levers of you on in been some you’re topic

A –Alistair Macdonald

we’ve productive, terms Yes. us I mean, that in of very cost the handling really program been That’s ForwardBound good increases in had. base. we continue for the with

a FSP our have through deployment and of We solutions, revenue cetera. et portion comes big

So a model. cost-plus that’s

adjusts it goes through. it So as

to rate able sit since we we’ve the year, et of we and with that started a XXXX. down year, start visit a couple about a customers sensible cetera, on through times the of to as have that see adjustments, we We’re at this the go been conversation and working

a We’re second the Forbes employer on list.

We’re on approach for D&I. We’ve to noted the Fortune list. our been

work. a place We’re to good

cetera. in culture to We and commercial want to people hired we to last clinical We powerful et of top on year reasons for cetera, the that. here. got plus have the provide, people come et X,XXX People benefits, into a at want Syneos good Health recruitment terms net of culture. be alone We’ve

So our we’re sector, turnover not to is of our west tough steady. just handling and the it. down. and It’s to across The steady. business it. world up higher, the everybody not It it It’s environment, but in a level adjusted just is seems of it’s is and be we’ve else but swinging

great Our are careers out well. people recruitment We straight current do bring of college they in place. into engines and

to I we’re, So handle equipped very think, it. well

Operator

Blair. comes question next William John with from Kreger Our

John Kreger

follow-ups, of had kind of the again, relating pass-through, Alistair. I sort to X

seems guess I one of be first, Jason. for in So is like more it this the Since accelerating. sort might business picked the and has shift of this up layer

of As standpoint, the operational really you building half question as move change And impact it relative what should way that. the we this and in mean staffing P&L really does you think of versus of commercial? this is the filters kind does And 'XX other about sort could half? you 'XX is, of the larger then through And clinical? an larger 'XX through maybe the you assume how this 'XX, Is to about get impact the just if operations the speak second you? from in to business? first the is only to think the beyond, Does and it

Jason Meggs

John, to we quarter XXXX, By work John? But we'll does depends X. get this little pressure it, some the to out a XXXX. last we the in and of second continue. lowest and because just when did consistent. in the and part next a the reimbursables the the So that pure large, quarters expect to pandemic of of to see But continue and side, it happens out -- to XXXX type of look of going had bit work -- the we type going but we probably the have COVID down monitor question, And what on sort that's by relative and all from in through third right, think you the how in sort reimbursables second vaccine imagine, of trend the X time the in year the to most back have to was into clinical we impact, at to start of And sequencing then pressure growth, you're you're flattish pressure travel quarters. of would because year, that. to work, we'll quarter on what some with of be the little about the X most still on and that bit right? But first just be I all flatten year

John Kreger

Operational.

about relatively So change. the a accounting I a business add the the business. and impact difference like shift -- Does change you it sort the What you're this in you way to is durable that communicating and that significant it really adding? sounds think where staff goes staff? of you're an guess, want in

Alistair Macdonald

more come changes, bringing and out move Alistair. different find it's that fundamentally, I patients each trial people training remain trial in remotely, like the always that as and more designs DCT them come John, more I you think through skill arm we change we've trial and might will where have think technically, you through There's I digitally, Yes, trial Algo PCP it What And model now we'll will been the in, you've remain. mean community of more or sets. had in execution past, and model into vendor something therapies not of went you model. certain them. about that. that need in does. kind of jurisdictions an do you'll of think kind channel, trials a the mean, management. seen it's like of the as the future, X trial. trials, we've I trial will more you'll when a see will then aspects investigators bunch is the with just future dealing trial There's of have delivery There found I PCP sites, in what more because X a But piece. and kind are

to to those managers project handle different who can going have So you're streams. have

clinical You're work folks. in with Home going to have can deploy staff have who to a the We stream. Health

buying in-house already deliver there some dispatched, Syneos by plugged changed way when that Illingworth of we've from of we just went. in in somebody they the weren't model So part that before we to

own the we in them company. organization. cross-train We that from within deploying -- We're them. Now

productive, the revolution look does it change overnight. we doesn't you solutions. for So yes, do RxDataScience it but bringing patients a nature. things we It the are design more It's cetera, like evolution, that do an way et change that in how things the How in it people, change about cetera. does that differently, not et think sense,

transition. So but it already becomes on more a that we're complicated market,

Operator

with question Citi. comes Patrick next Donnelly from Our

Patrick Donnelly

decentralized about a on stay. it that sounds remote talked you here that like mean trials, how making bit Alistair, they I to are little up. does guess guess certainly and monitoring percentage the are the I of this? be give that of terms metrics of helpful. around us I'm old wondering those of changes can how you the the would orders? orders side, margin the that to relative If financially, any versus just structure some on Obviously, those in I Even change

Alistair Macdonald

I metrics of an real when of at little difference any at any Yes, have there's I I'm I Actually, margin. those we're not on I improvement that. in on elements trials to bit in see don't look it, a handle the decentralized or But margin. sure see where

Jason Meggs

trial Michael Patrick, as over in mean, can expenses comment of certainly a about margin us, and -- margin reimbursable that what we've as But and That's is a and Brooks little is obviously reimbursables do down lower health of management the that, coming it home data than better into clinical enable we a talked part well. our I XXXX and these Yes. he here moves to provide think in more bit come saw cetera. what clinical. time margin X. services -- perhaps shifts is the the I capture, quarter end we higher-margin well story with some of little help, traditional traditional the in around bit maybe with monitoring, that that's monitoring So -- the of et down, on right? probably data side that a

don't well, to learn I So know, I the fee benefit as do revenue Michael, the there. more there's comment. side, on to you direct want service if but some think net

Michael Brooks

into fee Yes, revenue shifted those solutions. seeing at of different side, dollars when being are types we are service I look the

monitoring benefits comes and into things into remote as But So to deploying to of the those that tools medical there we're able some automation like think, that, sophisticated margin trials. I customers leads, be the will our them. are data over to play scientists, higher or particularly we're those, return more that time,

our And good Jason. some with able the product have last has them I that over time. we've give to been benefits the work us to to really really the help X also clinical shape mindset development good brought years with trials same value We using examples exact clients when at that agree

of the see customers to on lot think side, are as our going well. benefit from that a indirect I

Patrick Donnelly

just And obviously it. be that sheet, quiet just elevated small the then, funding, on sufficient on to are appreciate last to funding market lot continue guess, you it. the biotech on confident levels circle here balance public mean durability maybe particularly that maybe helpful execute would can guys balance a 'XX, durability the even bit on like and just focus you it the talk couple a of I about to visibility from the it the to relative be I but the cash I cash of you sheet, the past little touch quarters, talked biotech on of I about visibility that Alistair, sounds have into I but to guess, of that. there. maybe back pretty apologize, maybe might you're of years,

Alistair Macdonald

Yes, development, all lot of problems Yes, things with be assets the and sure, therapy, They've when of cell I are the a vaccine are incredible And at, but cetera. we for you've investment looking our people America, it's a -- moment don't problems I good we on that Jason coming clinical global of stuff signs COVID, team that that funding amount at of see money stuff. and captures raise can got people we the XXXX through that but have checks driving got think we I'm customers, don't like part said right? remember anyway, the Funding with So at and any Asia do of All gist We're the we at aware and lot product emerging think head, sector. in looking seeing it. an I look now of we're through I -- mRNA kind mRNA et as truly and a like it comes little technologies, for and market, well, having When that there coming Europe Pac, about flag Index see that the of I delivered biotechs. kind before. forward. obviously mean, we be gene think science. that have out indicators financial is we collection there shaking he working are development that bit that a might Biotech Blackstone of back now. mean at indicator, problems, et of was, not the that kind They biotechs, great in from projects through are a got somebody this business we things fund and that bringing obviously credit seeing. to development any of of that we an through into in on that his the going Vein We're and who portfolios, cash companies look technology, saw I crisis cetera, like that into that are the to you 'XX

we early And in in the sector. coal the clinics, haven't go look the that's guys, mine at our where looking also, II the at just the tip as they're because pipelines businesses, early going demand can in that problem. process that. we have in the not -- And from phase you to our phase translational canary to looking seen Phase of at we far And record of assure we Phase we I the -- and you, phase and forward a can it. team science our is science It's spare. with we're at as look we're seeing onwards. lot And a in So I early where it's compounds

Operator

Instructions] We Baird. Eric Coldwell have [Operator follow-up from with a

Eric Coldwell

to the brain bookings If here able if adjustment get could math, I to a cells, quarterly spoon-feed it XQ? more us on did pass-through you to, the it. just that So kind I there's the couple somehow little I'd you to more figure of had but from in think, a of maybe components be probably separate bit. I backlog quantify time missed But apologize I out. and

Jason Meggs

that Yes. Eric, it's And Jason. will. No, we not at didn't it. thinking point, quantify we this

mentioned first at in that to of that of that the that size wanted This it the think when X we Dave our and is we look of I XXXX -- I and portfolio, trends think above and made -- back about we to range. that in if quarter awards time, just you out the take sort new because going all if can. to we you continued we've we're well at be seeing we're the think, of we XXX this, the to as talked adjustment, 'XX, believe existing

it, of XXX XXX it. just everybody still of wavelength, Eric, strong excluding in quarter But the TTM. so really right, same that's about and the reimbursables, -- had think in a way we on book-to-bill So sizing the a is terms and to clinical

Eric Coldwell

Okay. if the it. did think I of get part but we would, wasn't sure optics I or you

So thanks, again.

Operator

there Macdonald the are queue. remarks. back questions call like And to turn Alistair for I'd in to no other the closing

Alistair Macdonald

you. Thank

So growth for again, forward remain value our plan. all market in delivering execute pandemic Syneos as through entire our look We creation sincere strong to Health to in while our continue to do they beyond customers. and for team our confident the manage the on thanks positioning we XXXX to very a in and profitability

safe. So much. your investment in be please you good. And organization. thank Thank our Have for be today, great attendance you and your very a interest day and

Operator

today's concludes conference This for call. Thank you participating.

You may now disconnect.

Syneos Health (SYNH) 17 Feb 222021 Q4 Earnings call transcript