01—Abstract
Summary
Summary of the 10-K filed February 13, 2025. Cited figures are marked; the original filing is the authoritative source.
IQVIA Holdings Inc. reported 2024 revenues of $15.41 billiona, up $421 million, or 2.8%, from $14.98 billion in 2023, with constant currency revenue growth of approximately $510 million, or 3.4%.
Income from operations rose to $2,202 millionb from $1,977 million, and net income increased to $1,373 million from $1,358 million. Diluted EPS was $7.49, compared with $7.29 in 2023. Cash provided by operating activities increased to $2,716 million from $2,149 million, which the filing attributes primarily to higher cash from accounts receivable and unbilled services.
The company ended the year with its highest-ever total remaining performance obligations of approximately $33.5 billionc. By segment, Technology & Analytics Solutions revenue grew 5.1% to $6,160 million and Research & Development Solutions grew 1.6% to $8,527 million, while Contract Sales & Medical Solutions declined 1.2% to $718 million. Research & Development Solutions contracted backlog rose to $31.1 billion from $29.7 billion, with approximately $7.9 billion expected to convert to revenue in the next 12 months.
Management noted challenges in Research & Development Solutions in the latter half of 2024 that it expects may persist into 2025, which it considers more short-term in nature. Balance sheet and capital allocation: cash and cash equivalents were $1,702 milliond at year-end, against total indebtedness of $14,045 million and $825 million drawn under a $2,000 million revolving credit facility. The company repurchased 6.4 million shares for $1,350 million in 2024, and on February 5, 2025 the Board added $2,000 million to the repurchase authorization, bringing the total authorized to $13,725 million.
Remaining authorization as of December 31, 2024 was $1,013 million. The company paid no dividends in 2024 or 2023.
02—Key points
Key Highlights
- Revenues of $15,405 million in 2024, up 2.8% from $14,984 million in 2023.
- Income from operations of $2,202 million, up from $1,977 million; net income of $1,373 million, up from $1,358 million.
- Diluted EPS of $7.49 in 2024 versus $7.29 in 2023.
- Net cash provided by operating activities of $2,716 million, up from $2,149 million.
- Record remaining performance obligations of approximately $33.5 billion as of December 31, 2024.
- Research & Development Solutions contracted backlog of $31.1 billion, with approximately $7.9 billion expected to convert to revenue in the next 12 months.
- Board increased the share repurchase authorization by $2,000 million on February 5, 2025, to a total of $13,725 million.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 13, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $15.40B$14.98B | +2.8% |
| SG&A Expenses | $1.99B$2.05B | −3.0% |
| Operating Income | $2.20B$1.98B | +11.4% |
| Interest Expense | $670.00M$672.00M | −0.3% |
| Net Income | $1.37B$1.36B | +1.1% |
| EPS (Basic) | $7.57$7.39 | +2.4% |
| EPS (Diluted) | $7.49$7.29 | +2.7% |
| Shares Outstanding (Basic) | 181.30M183.80M | −1.4% |
| Shares Outstanding (Diluted) | 183.40M186.30M | −1.6% |
05—Questions
Frequently Asked Questions
How did IQVIA's segments perform in 2024?
Technology & Analytics Solutions revenue rose 5.1% to $6,160 million, with segment profit up 2.1% to $1,522 million. Research & Development Solutions revenue rose 1.6% to $8,527 million, with segment profit up 1.7% to $1,948 million. Contract Sales & Medical Solutions revenue fell 1.2% to $718 million, and segment profit fell to $47 million from $49 million.
What challenges does management identify for the Research & Development Solutions segment?
Management states that the segment faced some challenges in the latter half of 2024 and anticipates that some of these will persist into 2025. It considers these to be more short-term in nature and describes the segment overall as a long-cycle business. The risk factors also note that most R&DS clients can terminate contracts on 30 to 90 days' notice, and that contract delays and cancellations are a regular part of that business.
How much debt does IQVIA carry and how much liquidity does it have?
As of December 31, 2024, total indebtedness was $14,045 million, excluding $1,170 million of additional available borrowings under the revolving credit facility. Cash and cash equivalents totaled $1,702 million, of which $713 million was held in the United States. The company states it was in compliance with its financial covenants in all material respects and expects its liquidity to fund operations for at least the next 12 months.
What did IQVIA do with its capital in 2024?
The company repurchased 6.4 million shares for $1,350 million during 2024 and did not pay dividends. It states it does not currently intend to pay dividends, though it will reevaluate its policy regularly. Remaining repurchase authorization was $1,013 million at year-end, and the Board added $2,000 million on February 5, 2025.
What drove the increase in operating cash flow?
Operating cash flow rose by $567 million to $2,716 million. The filing attributes the increase primarily to a $570 million increase in cash from accounts receivable and unbilled services, along with a $129 million increase in cash-related net income. These gains were partly offset by $152 million more cash used for accounts payable and accrued expenses.
06—Continue