01—Abstract
Summary
Summary of the 10-Q filed May 2, 2024. Cited figures are marked; the original filing is the authoritative source.
IQVIA Holdings Inc. reported first-quarter 2024 revenues of $3,737 milliona, up $85 million, or 2.3%, from $3,652 million in the first quarter of 2023.
Income from operations rose to $506 millionb from $471 million, but net income was essentially flat at $288 million versus $289 million, as interest expense increased to $166 million from $141 million and other expense (income), net swung to an $11 million expense from $26 million of income. Diluted earnings per share were $1.56, up from $1.53, helped by a lower diluted share count of 184.3 million versus 188.6 million. Management attributed the revenue increase to constant currency growth of approximately $105 million, or 2.9%, led by Research & Development Solutions, which grew $69 million, or 3.4%, and saw contracted backlog rise to $30.1 billion from $29.7 billion.
Cash flow from operations improved to $522 millionc from $417 million. Cash and cash equivalents ended the quarter at $1,444 million, and total indebtedness was $13,611 million, with $1,895 million of additional revolving credit availability. The company repurchased no shares under its equity repurchase program during the quarter and had $2,363 million of remaining authorization.
Results were also affected by a lower effective income tax rate of 14.4%d, compared with 19.6% a year earlier. The filing also describes ongoing legal matters, including the Veeva Systems litigation, in which trial has been scheduled for early 2025, and a Korean privacy-related lawsuit that is on appeal. Management believes that pending proceedings are not expected to have a material adverse effect on results, cash flows or financial position.
02—Key points
Key Highlights
- Revenues were $3,737 million, up $85 million, or 2.3%, from $3,652 million a year earlier; constant currency growth was approximately 2.9%.
- Income from operations increased to $506 million from $471 million, while net income was $288 million compared with $289 million.
- Diluted EPS was $1.56 versus $1.53, supported by diluted weighted average shares of 184.3 million compared with 188.6 million.
- Interest expense rose to $166 million from $141 million, reflecting higher base rate interest costs and an increase in net debt.
- Operating cash flow was $522 million, up from $417 million; cash and cash equivalents totaled $1,444 million at March 31, 2024.
- Total indebtedness was $13,611 million, with $1,895 million of additional revolving credit availability; no shares were repurchased during the quarter, leaving $2,363 million of authorization.
- Research & Development Solutions revenue rose $69 million, or 3.4%, and contracted backlog increased to $30.1 billion from $29.7 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, IQVIA Holdings kept $0.08.
- Revenue$3.74B100.0%
- Cost of revenue−$2.91B77.9%
- Gross profit$827.0M22.1%
- Operating costs−$321.0M8.6%
- Operating income$506.0M13.5%
- Interest, other & tax−$218.0M5.8%
- Net income$288.0M7.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 2, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $3.74B$3.65B | +2.3% |
| Gross Profit | $827.00M$802.00M | +3.1% |
| SG&A Expenses | $508.00M$513.00M | −1.0% |
| Operating Income | $506.00M$471.00M | +7.4% |
| Interest Expense | $166.00M$141.00M | +17.7% |
| Net Income | $288.00M$289.00M | −0.3% |
| EPS (Basic) | $1.58$1.56 | +1.3% |
| EPS (Diluted) | $1.56$1.53 | +2.0% |
| Shares Outstanding (Basic) | 181.90M185.80M | −2.1% |
| Shares Outstanding (Diluted) | 184.30M188.60M | −2.3% |
05—Questions
Frequently Asked Questions
How did IQVIA perform in the first quarter of 2024?
Revenues increased $85 million, or 2.3%, to $3,737 million, and income from operations rose to $506 million from $471 million. Net income was $288 million, nearly flat with $289 million a year earlier, as higher interest expense and other expense offset the operating gain.
What drove the revenue growth?
Constant currency revenue growth of approximately $105 million, or 2.9%, was driven mainly by Research & Development Solutions, which grew $78 million on a constant currency basis, with smaller increases in Technology & Analytics Solutions and Contract Sales & Medical Solutions. The company said Technology & Analytics Solutions benefited from information and technology services, while a decrease in COVID-19 related work weighed on growth.
How is the company's liquidity and debt position?
Cash and cash equivalents were $1,444 million at March 31, 2024, up from $1,376 million at December 31, 2023. Total indebtedness was $13,611 million, and the company had $1,895 million of additional borrowing capacity under its revolving credit facility. Management believes these resources will meet its needs for at least the next 12 months.
Did IQVIA repurchase stock this quarter?
No. The company did not repurchase any shares under its Repurchase Program during the first quarter of 2024. Remaining authorization under the program was $2,363 million as of March 31, 2024.
What are the main legal matters disclosed?
The filing describes a lawsuit against Veeva Systems alleging misuse of IQVIA intellectual property, with trial scheduled for early 2025, and a Korean privacy-related civil suit that is on appeal. Management does not expect pending proceedings to have a material adverse effect on results, cash flows or financial position.
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