Medpace (MEDP) 11 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Lauren Morris	executive
August Troendle	executive
Jesse Geiger	executive
Kevin Brady	executive
Daniel Leonard	analyst
Max Smock	analyst
Eric Coldwell	analyst
David Windley	analyst
Jailendra Singh	analyst
Justin Bowers	analyst
Charles Rhyee	analyst
Ann Hynes	analyst

Call transcript

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

Operator

Good day, ladies and gentlemen, and welcome to the Medpace Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

And now I'd like to introduce your host for today's conference call, Lauren Morris, Medpace Director of Investor Relations.

You may begin.

Lauren Morris

Good morning, and thank you for joining Medpace's fourth quarter and full year 2024 earnings conference call. today and CEO, our call President, Troendle; the Geiger; Jesse CFO, on is August our our Also Kevin Brady.

factors I as responses inherent known and during Reform Act begin, our assumptions meaning of differ forward-looking with materially we as would XXXX. rely discussed other even Please actual statements Securities remind obligation to any on the as our that with and from results to no uncertainties Before Litigation These Private you our forward-looking statements forward-looking not of remarks could within and risks teleconference as These to and views SEC. factors in other this questions if after of important of today's current estimates unknown the are your cause well may include any note the like representing that statements XX-K assume date update expectations. that change. we our statements today. Accordingly, Form to should filings you involve

in in at to with measures most earnings provided slides During GAAP call investor.medpace.com. today's such the non-GAAP or gain this non-GAAP of superior measures we investors of call. referring these not financial to measures Investor available connection complete measures more available the is are of we measures. to be non-GAAP earnings believe financial are slides the the results. certain replacement section GAAP presentation measures, A These in for help directly comparable but will understanding reconciliation our a comparable a press call, and The also Relations release website

August to like I to would With turn the now call that, Troendle. over

August Troendle

day. Thank you, Lauren. Good

QX range. our normal in cancellations within were Backlog

down as the up weakened by overall in but projects book-to-bill slightly QX business the relative prior of influenced were environment QX enter to pipeline X.XX some Our backlog. to compared to as well RFPs XXXX. was QX as cancellations previously expected somewhat, delay ratio remained

increased X%. XXXX year, calendar the For backlog

outstanding we work, the and backdrop pre-backlog and cancellations was This this unperformed awards down in XXXX. growth to considering provides challenging backlog experienced All awards However, total of reflects slightly. XXXX. level in both high a

our range does not deteriorate, book-to-bill with to in the that achieve environment Assuming we growth continue ratio and of historical the bookings in digits. the can remain hopeful expected remain above the in a XXXX cancellations for in half we second is Revenue year. X.XX low single be to growth business

comments will I for on things to now turn over Jesse QX.

Jesse Geiger

Thank morning, and you, everyone. good August,

increase quarter to X.X% XX.X% business net in XXXX. XXXX revenue of revenue was book-to-bill. was XXXX $XXX.X a fourth from $XXX.X the the represents of resulting $X.XX million, prior year the year and billion, XX.X% full quarter in entering a in backlog Net Our fourth million, an awards X.XX decreased new year-over-year which from increase

beginning a new net of was $X.X ending of year the backlog XX.X% XXXX, increase the X.X% were prior billion convert the months, approximately $X.XX of For billion, the billion, XX, and XXXX, in will project as and backlog full to decrease revenue of in approximately fourth backlog. awards from quarter $X.XX year. next backlog business X.X% conversion of an that We XX was December

Kevin? Now review to in discuss Kevin performance call more turn with will financial XXXX our detail over that, I our the guidance. and to

Kevin Brady

Thank you, Jesse, and listening good morning to in. everyone

in compared to fourth which year compared comparable of EBITDA EBITDA points period. XXXX. Full quarter the and XX.X% impacted by quarter XXX margin was decreased XX.X% million for to for XX.X% costs, quarter increased and margin period. favorably increased full from prior million year XXX the to EBITDA XX.X% was points, and increase by on quarter XXXX of revenue XXXX. X.X%. $X.XX was and year benefit basis The As saw and the in reimbursable XX.X% growth. year the of XX.X% in $XXX.X U.S. margin from headcount billion activities in EBITDA direct was foreign XXXX. and of EBITDA were year exchange million from Full increased productivity the million the the periods. benefited comparable basis year fourth This dollar the fourth the quarter prior a the Jesse XXXX. $XX.X revenue represented margin quarter. prior service fourth XX.X% mentioned, in slower of from respectively, EBITDA year behind in $XXX.X $XXX.X Full compared in strengthening the additional also year-over-year was

compared fourth million In XXXX, income year $XX.X to prior net period. the the quarter of of $XXX XX.X% in net increased million of income

income year ahead quarter For growth interest increase. of by to which compared the in was net a lower tax driven was EBITDA effective represents income prior the $X.XX and for XXXX, year in million the income $XXX.X XX% Net per full Net growth rate. $X.XX income compared XXXX, diluted was million $XXX.X period. share to a

income income XXXX, year was net $X.XX net $XX.XX, diluted of full to compared per share XXXX. in diluted share the per For

Regarding top top respectively, X customers revenue. our year and roughly XX% full of customer XX%, XX concentration, XXXX our and represent

quarter, our from net million activities, outstanding sales In generated operating $XXX.X the days and was days. negative fourth we in flow XX cash

December of XXXX, had in cash. $XXX.X we As million XX,

we share end under XXXX, During had $XXX.X the our program. and authorization fourth million. the repurchase the approximately quarter we $XXX.X of full XXX,XXX repurchased At for quarter, remaining million year shares

$X.XX for the XXXX. to represents flat growth in now X.X% of XXXX Full $X.XX over revenue to total billion guidance to range year our billion. XXXX total revenue billion, expected which of $X.XX Moving is

EBITDA decline $XXX.X share net the based million. This XXXX $XX.XX on of to XXXX million X.X% Earnings shares $XX.XX. exchange EBITDA XXXX. expected Our XXXX. million $XXX interest XX% XXXX. for of our of of diluted is There Guidance average of XX%, be million, $XXX $XX.X no expected repurchases a to weighted in effective rates is per XX, million tax $XX.X assumes year of to in compared foreign in range and We of the share as diluted full in to a to the in December forecast X.X% million additional range income $XXX reflected income of are growth to million outstanding rate guidance XXXX is to $XXX of representing guidance. range

With the the operator that, take questions. back can your to turn we so I will over call

Operator

today line [Operator question Instructions] Leonard UBS. for of Dan from And our the from comes first

Daniel Leonard

A questions. couple of

First whether off, component. related the factors on that the drove on service gross pass-through or was other could you mix the I otherwise. be elaborate the margins in I on that headcount the outperformance line, they understand hoping some of quarter.

Kevin Brady

the in nicely. very backlog Kevin. just Dan, that this are productivity the is programs of existing progressing It's and really staff our

second big seen service direct it's side. on progress And we've so quarter of really the the the that kind

Daniel Leonard

a the Okay. assumptions as high what the of guidance XXXX? get follow-up, your would And are that then you in end to revenue

Kevin Brady

Say that again, sorry. Dan,

Daniel Leonard

you the high guidance XXXX? get your would that assumptions the in end are revenue to of What

Kevin Brady

I of that and really just as are in progressing business Yes. environment mean those in continuing. awards a kind that bucket pre-backlog the the your programs improving and sitting programs bit backlog

Operator

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

Max Smock

caused environment Do XXXX, little would you mentioned deteriorated here. of else of be these think going by funding that there saw some is, that taking is it you by pause is guess, business deterioration? better you I surprised election, and may given couple that last a guess over environment you to months that the call that what August, we the the question do could a something be in really is are just that behind companies weakness? the bit think on my some the I some digest, out of or uncertainty driving of you

August Troendle

it was it. really And don't for thing. an subjective a is just explanation have I Yes. this and --

I it's going had and wasn't I don't of because it that it of concerns the the in getting as turn I what as whether so. think RFP what if terms of business around aspects robust as thought flow to of it's seen and note seemed to type forward. some. decelerated in accelerating couple projects or robust qualitative been I going And the couple yes, situation quite as type And things we've of was department. prior of the it about them just and kind quarters really size know it which fine. of was did as It's where moving quarters, in is, are the core the But prior likelihood wasn't of of election we're just and

cancellations some. to there's the abated opportunities, mean of kind maybe is that kind X side, X and were really. environment other relative weakening cancellations I quarters, Now new But is have in to the of on the prior QX bit. X and sides a down

first the think high of that still had a closer was quarter we cancellations So although I normalized cancellation kind side. towards the rate, were year to the the it of

see QX. business environment weaker. may We'll bit be improving just cancellations a to So little have

Max Smock

delays, behind the into was those Is And this of delays risk half following next Understood. the up projects expected Helpful first a here? comments quarters called that were that your And in I a how you provide you of bookings much projects think about visibility those how quarter. have any that of year? -- just couple out can then then -- couple those hit you eventually about the to on think commentary. of delays? you that around bookings in cancellations the what in hitting color couple those were turn some do into there And

August Troendle

are I a cancels. that kind in do delayed. I delayed, of those We first was have expect XXXX. us But that hit year. anything studies slightly here the of of top being in delayed projects of we'll I little that cancellations half think are pushed performing out hold risk I do greatly there's longer And can't kind of pattern. risks always progressing, of still this being I some most just mentioned Yes. of that is edge QX not terms bit what and think of mind a my

Operator

question from from of line Baird. comes next the Eric Coldwell Our

Eric Coldwell

in Is we've to between revenue, expecting fourth mix to mix you a beginning the over the the the this back seen indirect drop in up? expectations the go the the direct what it revenue big is anticipating linear percent Are I'm component of range. here X% Is the Are like And and and revenue through growth it fees, more a curious year the then a year off ramp deceleration then half? growth at towards you quarter year? and it here last X% about What's or phasing please? of indirect component. down the with back you the year? saw through stabilize

Kevin Brady

suggest a as percentage fourth indirect, somewhere the be Eric, our as relates it quarter landed in we where XXXX will to around revenue modeling the Yes. would of that here.

from similar what where your were we fourth here. at to saw question? total part in first What was year we in quarter of down the the levels 'XX So

Eric Coldwell

through growth are to the the end linear low back level Phasing the on production. the on at the Is thought Just starting moving rate revenue, the year? in and X% timing process higher to we it half? X% range, a more

Kevin Brady

Yes, opportunities. on of it will a programs throughout those the those we've somewhat depend how pipeline backlog into year. Certainly, got awards progress

So would it first how throughout to revenues depend some major year linear year. progression throughout the quarter the sequentially there but from I there, bookings expect the progress wouldn't hopefully, here. the But in be as expect step-up growing I on a will well.

Eric Coldwell

then if a could get doesn't airtime, XQ. X just billings did of more. you in And kind squeeze XQ, Advanced quarter-to-quarter advanced billings but topic lot increases I XQ, in of show intriguing an

slowed. the level not You and billings X plus bit finished what, fourth where and year that quarters? and in the keeping how high quite little a a revenue advanced sequentially I'm down XX% the a year-over-year. billings XX% down, improving such that in drove through at quarter, X% sure last year these were advanced what actually bookings happens What's with up

Kevin Brady

lot schedules timing you doing. programs I active the nice Eric. the based that backlog, to rates how on mean, bit a question, of programs in and on Good side we've kind that the and that that work business, we're direct be ahead progressing? of try payment And going of those and milestone that we seen of the staying payments to a growth Yes. are are the saw is create

ability programs a is on just related of this and and so the our on is against milestone to milestone lot that going -- build of how according to And collect it timing payments mix this.

we're we stay as of of know, on to going credit you As that sponsors top kind paid sure work. making and we're getting and

August Troendle

work. Yes. Fewer continue not to clients we paying that are us,

Operator

of from And Windley from our next line comes the question Jefferies. David

David Windley

being at little wanted when were November, talked levels leading I a we norms, much and together side bit. cost productivity. focus you I to that on retention high was to greater historical than in levels wondered about of the very higher

and much your get next and the that at margin assumes continues. was that think it was some fourth I of better was quarter couldn't expectation seems like probably better. least that, a year expectation it The peak at

the if restarting you be year more wondered you basically you 'XX kind assumes of if are at precision provide relatively productivity or staff any if bit hiring a anticipate that little the anticipating during So point when around guidance levels flat. could or the maybe would and staff I of to calendar continues the

Jesse Geiger

Dave, productivity to XXXX. of Yes, productivity, continues, in at a hiring terms does on experienced accelerating Good XXXX. a staff here diligently work Jesse. level. in just continues, it flat very growth headcount The lot high it's of anticipate fairly continuing good retention projects. in was We do remain

hiring the mid-single-digit progresses how to environment So the the throughout we in at year. a And year of anticipate somewhat aggressively by through the we like likely have targeting will more be what that kind maybe do of as looks for margins. bit bit an impact and mid- we hiring upper the But moment, and little progresses. restarting will are year. growth that little a engine How headcount on business the level work that the determined

Kevin Brady

what XXXX similar costs, reimbursable be fourth a comes to revenue in and which down do to of in call as that, out look the bit. at build guidance a we We percentage that's that. the question to other previously just 'XX if would to to on headwinds that level Dave, indirect And the there. on margins, mean do little the I as expect on we thing you a saw the quarter, expect out answered it relates And at

David Windley

through On cost I the is was back-office that, data like X the some quarters functions, those quarter show I maybe things expectations. financial talked can't other think And benefits in beginning remember of do had to about, activity if the X investment in your last Right. of that things you of it actions, where that management, of are stand? or offshoring ago, some beginnings

Jesse Geiger

you Yes, I August. ahead, don't go -- think we

August Troendle

still I was times, going go but to I ahead, early say Jesse. think it's

Jesse Geiger

long-term Yes. say I mean just getting that's there. there. And play a I'd of started we're just more

really We that seen yet. of positive haven't any impact of just the

of and We margin a are continuing anything any a margin in be a or but longer-term in materialize in of so India major but office that overall back some, profile, you sort tailwind about functions. I picture will that think help it couple administrative But hire if to think to that, won't it here than functions be driver XXXX. margin play of just more the is than we're expecting creates

David Windley

environment into of competitors, traditional normally they bigger I demand aggressively. you around more that Got it. more your thinking and And it in know say moving you stronger a a but to the comes would here sustainability market standpoint then but last question it sounds we I'm question, space for from me margin is kind it in would just, see be is about bookings a what the I competition the absence guess, typically back of broadly again more like down that are what

reaction but speak be wonder that, sacrifice to I could you that. if maybe August, and your you're not price, assume would seeing would I So to

August Troendle

I tightened has Look, built some. the Sure. think everybody's environment

at yes, challenged think I think And that. our and competition that, our the margin. in defend Certainly, think pricing is our possible. well clients competitive clients. efficient funding to and as have be And as least had in table. there to is I to price value are to I bring we've And of part as frequently be heightened a our have as we is volume you part and of --

Operator

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

Jailendra Singh

and And not like demand it on funding be it it any put that. they're cetera. seen putting driving comment seems that, know that? any they're forward project? dollars pressure there sponsors the companies, is And you understand I your related on the that's term. going case, But companies key near signs Any are could on some the is are to these biotech Because if have in to with conversations slow thoughts these issue. before might create comfortable to the that back et going what based play? delays, tough catalysts into pent-up watching decision-making around So with for an to

August Troendle

Yes.

to issue. spend for don't have speak want I our the can't think cash I it. clients, clients just funding to is and that

I look, clients I and not So time their also take just do IP that things mean, have other know. there's don't to cash forward may ready move with -- do reasons. for be

on but don't our don't want to of to a holding despite forward So perceive that, I -- spend see I and I have just cash know. clients they to think I that's number a it. don't don't I mean, ready program move don't significant

Jailendra Singh

makes my research in RFPs? Can slightly trends kind RFP Phase the Are and or on drug down of quarter remind quality That seeing mix of drugs X. with of and you the still being follow-up RFPs you sequentially pretty prioritizing X Okay. your to can the across is speak little you a to in And more where us bit to mix sense. that our focus promising point, then customers QX. And more data versus consistent? on later-stage trials

August Troendle

Yes.

Okay.

I in in So RFPs just think QX, tends bit a were lighter be okay little general. to QX. it

of many of I the size was the side volume -- the So qualitative opportunities my fine. was was and cetera. RFPs so I didn't of forward, et it that that dollar there promising think From perspective was looked moving quite likelihood as in think volume -- terms

the than little like. churn a So I bucket in RFP bit more would maybe

my just to assessment, qualitative is which difficult of kind was that So quantify.

if an CPU-type oncology, -- generally I now, In a about small Phase Phase itself X%. percent you talk our terms I, couple through It's et talking other We're of very part business. I operations a our of is the IV, and II our Phase III. about type phase and -- very breakout Phase late business. type comparable of are majority in we the trials. And the have numbers, business with a III Phase dollar then size somewhat you cetera, II of throw the Phase That's of of and lot don't of

Operator

our Bowers And Bank. question next Justin of from from Deutsche comes line the

Justin Bowers

cancellations and seeing seeing of online the sort about trends or that seeing above, you're you're in talk awards, Is what a you how you're are the in there your bookings below Can that pattern backlog? pre-backlog there? in similar trending

August Troendle

cancellation the in pre-backlog? sorry, I'm

Justin Bowers

The yes. pre-backlog awards,

August Troendle

okay. -- So

new our kind volume of [indiscernible], just asking what So the award was there? you're

Justin Bowers

divergence versus backlog. you to goes was there in -- any cancellations net you're Volume then there This is business, your seeing seeing one right? the are and -- in what

August Troendle

kind awards awarded yet in that have Okay. have that Yes. that of been And awards are that not -- we backlog.

So is I little flow that Again, win bit the rate in still okay. think think environment our I QX, did soften the but was fine. business a

down And still came everything across phase. remains in backlog that things a we same. and our looking think is not pre-backlog good kind that Cancellations kind reduction of as of else are both get half so our get kind enough range I year backlog this yet of but for portfolio, into in in normal of cancellations where second if the both the to moving to more want awarded cancellations so as into okay well

the So those XXXX actually of and of a our difficulty cancellations group they most than came part pre-backlog bigger and in that down also, booking were from itself. quite group were rather bit backlog drove the

nicely So backlog they with the also down came cancellations. along

Justin Bowers

of the as a of trend, stabilizing, started last late just throughout is and was Is Like delays all? Is is change and questions. other And then that sort at piecing that of on comments smidge. change at terms still XXXX. a just quality Understood. some that improving there the maybe a like to or demand then velocity seems And of year direction maybe together, in It improve decision-making. of lot there's least trajectory, or the been the persistent sort environment well? pricing

August Troendle

So the business environment was quarters I much think first for improved X the 'XX. of

the 'XX was -- from think of accelerating cancellations. kind out I with So came And opportunities. aside

but There business pulled not of problems a was funding So and with was they opportunities the not or little of clients. just things being environment maybe, weaker, lot QX was new in if opportunities, bit environment at is we accelerating. of still horrible. our and were of kind happening what our a many look

funding was So really to things are things I bit cancellations. or are be direction of -- don't could and it push going really, -- delays a signs delays Delays had that financial of been going. I prior It know and in little it more and QX down slowing and like then few reaccelerate, that difficulty wasn't a it's hasn't delays of things things QX, we've the the just a in was but more. out which in just could it quarter-to-quarter year. be maybe slowdown

Does that answer your question?

Justin Bowers

Yes, yes.

Operator

Our question from Rhyee [Operator next from the of Instructions] Cowen. line Charles TD

Charles Rhyee

we rates. little a bit think the cancellation of clarification more maybe about as just sort Maybe

of that book-to-bill we're we from you You're we've of at back feel know of that. dynamics saying cancellations that like -- expect end normal. should move much we be Do How it's kind kind about as to of these of come longer kind of kind course impacting of getting year? to pre-backlog. I talked the the the sort through

some we cancellations when between back book-to-bill in year. How reducing sort let's of or a of about that so quarter and to characterize to we X.XX between, mix And awards? fourth and sort of kind growth as for this RFP the pre-backlog say, get these would of the as X.XX the just getting the you half the difference think expectations

August Troendle

Yes.

pre-backlog of throughout of in elevated accelerating and that of et bookings cancellations year which 'XX weak moving I upon the have pre-backlog up a translate look at. take the kind above that X.X, that's think to will get of portfolio cancellations but then cetera, to backlog. of expect trajectory we into first bookings in I the X.XX hopefully, the work, to can second that an 'XX. seeing Hopefully XXXX. our threshold in I based throughout sort in are And So the And quarters will half, impact XXXX getting couple

Charles Rhyee

Okay.

up follow there. So just to

to first down saying function think you're the we So When you you said be sounds is here activity quarter quarter weaker first if about in you we slightly, assume relatively the -- activity you're half -- to we that that that, seeing it's -- like think, was going constant. going RFP feel fourth activity in kind expect a the RFP should bookings, where lower. of

so that it to book right is And to bill... think

August Troendle

were projecting I that's what I'm not I'm bookings. asking the projecting about... thought future RFPs. you

Charles Rhyee

to Yes, be of book-to-bill of in fourth back sorry. bookings than -- to sorry up? here expecting sort be first lower quarter I'm I'm kind the are ramping then you half the and

August Troendle

Well, I hope I do terms than not. lower in book-to-bill. is nothing QX of

I'm still that So well that below X.XX. that, has improved but hoping

So I run for it rather quarters I I'm more here longer-term be looking And not above kind X.X. rate. every XXXX. to near weak but bookings in the a have first our of reason that's of will hope couple certainly believe anywhere just

Operator

line And next comes from Mizuho. from Ann the our question of Hynes

Ann Hynes

I guidance, think guidance uncertainty. your you this they sort the your environment. given have your you know is do when do environment, just the talk of So I in but how revenue to And funding much a guess, encompasses visibility customers,

at point confident figure what be to how with new in time? downside, are at the versus what time you And this you trying drive do upside just have this think great. point in this you I'm in So visibility guidance, out that would maybe

August Troendle

little have is going. business no I idea confident environment A in Look, XXXX. I how Okay. business where the in. am The bit

out the and we we've guidance to about make the came tried I think path that's assumptions future with. reasonable

XXXX. into well of as been most I had range and think environment substantial business environment in cancellations, potential upside further strengthens to business cancellations our it the substantial and with drop normal really a opportunities there's weakening if downside

we're So of equipped kind I here. think

completely It's know that very cancellations else be destroy But I think is established say those of guidance that environment can comfortable going in, is can big business it of this certainly have. is I a reflects I for bit. place. we the has Yes, the cancellations a a quite we've already but get guidance we're lot hopes. got cancellations a this there's I are backlog matter that can what Look, XXXX good you also opportunity the in with a driver. -- the to and don't and that's there's low, to

Ann Hynes

would the on like competitive the out? on Maybe just sequentially surprised any any of notable part, then meaning than that then the you Yes. call cancellation would there industry that different that there you, trials is drivers And were great. And historical acting changes cancellations? are environment, canceled be

August Troendle

products On for a reasons. had very competitive for changes. real fail largely part various occur, past least environment been it's cancellations, a No of to funding. funding good -- a broad related. come Like But There's in cancellations. reasons this cancellation of change for year, overwhelmingly, at number they've number reasons substantially. been cancellations We've linked for

So the cancellations. of that of terms see we driver in primary is that kind

Operator

from of And from our next the question is a line follow-up Blair. Smock Max William

Max Smock

I just wanted to margin. gross ask a clarifying question on

costs. tailwind that I received the for I completed for of that way been getting about whether there's cancellations questions that headwind those to think of margins is guess any bit the just XXXX gross cancellations. a that a in be I One the And payments that it, from would would wind in of you then, have in elevated and margin there's seems not year. given be around then your And for we've you therefore, down XXXX, payments any you sort a there of But saw to to incremental inflated the confirm sort wanted bit. cancellation to margins artificially just hoping normalizing work through can walk this

August Troendle

know Kevin, you to. want I if don't

Kevin Brady

Yes.

August Troendle

stab take Let first. me at a

at something been completion. our of accrual accelerates cetera. also a on think I aspects closeout. have tailwind it closeout, historically And lot about of for that up cancellations I some that think monitoring margin. percent et kind just a we're And routine think conservative of revenue often, I of reasonably catches work And sometimes

there any know that Kevin, general, tailwind I cancellations. think in don't a from quantification So something you of is of I that. a have if

Kevin Brady

slight nothing productivity of again slight the has been the base quantify. year tailwind can I what's programs, the tailwind and and the base, and year-over-year, programs. it's that organization is existing just while And by productive some been there base would mentioned, this and Again, be great execution. that's tailwind the closing that, Yes. be No, it's Yes, August I the just from say, of just some But there a and and flat from the employee employee margins retention margins. large, to on of utilization really continues cancellations. those out But core as there's employee driving is and good the might tremendous. advancing headcount

Operator

from next our the the Eric follow-up line Coldwell Baird. is question of from And

Eric Coldwell

help you hoping performance with was I us could obligations.

reported clip in Your all actually performance accelerating as obligations filings year. grew a nice it SEC and

Third over it year-over-year, up was quarter quarter-over-quarter. was up X%

what future high bit correlation us an revenue you're versus to lower. this should what dramatically year, struggling are was bookings for the on revenue with between which spiked be positive that has been to the triangulate XQ much obviously trying in number telling growth, extremely outlook a a and So I'm which and historically

how to to obligations why quarter? pass come it performance So that that the in third that has been up as XX% as historically. And in revenue correlated not is were did growth 'XX

August Troendle

look very far Those out.

expect into but if gap duration a between -- got have up, our obligation. that backlog, stuff the break would I if project, that think only in obligations backlog, reaches being portion by of our We that of X-year it quantitatively award performance okay, so into obligation. that a that included canceling, performance get And signed even that's I backlog. It's near in, it usually we backlog. new and unexpected. mean But usually a something that's goes a down it's and you exactly, backlog, it's have and would be but backlog. all an it contract, a we it's the lot projects goes part of and a term, time and is is only the you average in not added of the increase in But lot got of you

have is all it's and stuff, Your to upon projects, fastest held backlog growth based early there's conversion, out. revenue going stage late-stage a your be still in of and lot stuff

Eric Coldwell

more could I Would there of nuance cancels us performance any in help you then And but an be XX-K the incremental Is for what know than with timing of be later. or would today have top anything the foreshadow coming look other is of that what the seen any duration would to programs the you coming this, longer of shift awards now like as don't obligations program -- be on in structural you in willing past. that the the nature the like there if will in hiring? finally, average there later,

August Troendle

Kevin?

Kevin Brady

And there's the factors mean, of tail because today. Again, mean largest that really I I like what delta the I an if a remember, only I later years study we only analysis. in as is than that the program the of difference foreshadowing, to driver the in be terms don't Yes. different first we quarter. had on mentioned, that studies analysis, we'll X third think other backlog. will the put interim the publish saw put that in the there's that in of in always you up dramatically interim

the guess, between differences lot changes, to So accounting there's words there. I consistent other a version backlog it's the of versus version, period from in period. structural but No

August Troendle

sometimes it's look, we we've even think But I reflection to we study. is that given -- holds think have do I we're We've do mean those we into even of that better likely a phase the backlog and qualified really perform. that our think of a do, likely are just next is -- I is and is we're price. to go backlog what what do reflection given the them get we a obligated client of they better if stuff that to options it not them -- think what

Kevin Brady

I agree. Yes,

Operator

the Windley And question comes David our of next Jefferies. line from from

David Windley

get is multiple not, or well. X conference have short if ask but maybe. call to know of a as I wanted The don't follow-ups beauty that like I to we you here,

First you gave of an just answer to Eric. all, to clarify

the and between the III, the I but difference of the late programs programs, -- than directly of into said part not point [indiscernible] I to stage III? latter more you think versus want burning was programs. I stage by early that August, III are Phase right? late-stage you rather you Phase earlier Phase of revenue your the So Phase need that So part that, mean the

August Troendle

all Correct. Correct. It's in backlog.

year it's and or going all the performance So next it's to in the X. to equal obligation, burn

David Windley

Right.

kind that we clear. So so purposes transcripts, just of of for get

Jesse Geiger

about. trials talking phase, latter Not their as but -- to late in trials That's to of we're opposed are progression earlier. a reference the part that early on a stage in comment versus what starting there clinical stage, trial

David Windley

and Right. then you believe, And hear And FX, didn't might I I is a guidance think Appreciate that. quantify quantification your benefit, that. you if what I margin, then, the some Kevin, from mentioned that. I of on wondered in assumption FX 'XX? for

Kevin Brady

for was Yes. the the about And XX. impact in The quarter, fourth quarter, impact probably terms guidance net. of assumes EBITDA of FX December the $X million rates as it in fourth

Operator

back the does program. further the like hand Morris to of today's remarks. question-and-answer for This conclude I'd to Lauren program any session

Lauren Morris

on to again call. joining with your interest for you look forward Thank us call We in on quarter our for and XXXX first Medpace. today's speaking you

Operator

the This your ladies gentlemen, program. for in you, participation conclude Thank conference. today's does and

You day. disconnect. now may Good

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.