01—Abstract
Summary
Summary of the 10-Q filed July 22, 2024. Cited figures are marked; the original filing is the authoritative source.
IQVIA Holdings Inc. reported second-quarter 2024 revenues of $3.81 billiona, up $86 million, or 2.3%, from $3.73 billion a year earlier, with constant currency revenue growth of approximately $130 million, or 3.5%.
Net income rose to $363 millionb from $297 million, and diluted earnings per share increased to $1.97 from $1.59. For the first six months, revenues were $7.55 billion (up 2.3%) and net income was $651 million versus $586 million. Income from operations for the quarter was $520 million, roughly flat against $524 million, as cost of revenues and SG&A growth outpaced revenue growth; restructuring costs rose to $28 million from $20 million.
Other income, net of $67 millionc in the quarter was driven mainly by revaluations of contingent consideration arrangements. Cash flow strengthened, with net cash provided by operating activities of $1.11 billion for the six months versus $819 million a year earlier. Cash and cash equivalents were $1.55 billion at June 30, 2024.
Total indebtedness was $13.33 billiond, and the company had $1.995 billion of additional available borrowing capacity under its revolving credit facility. The company did not repurchase any shares under its Repurchase Program during the six months, leaving $2.36 billion of remaining authorization.
The filing also reports that on July 11, 2024, the Supreme Court of South Korea dismissed appeals in the IMS Korea privacy and criminal matters, making those decisions final in the company's favor. The Veeva litigation remains pending, with trial scheduled for early 2025 and Veeva claiming damages in excess of $200 million on its counterclaims.
02—Key points
Key Highlights
- Q2 2024 revenues of $3,814 million, up $86 million (2.3%) from $3,728 million in Q2 2023; constant currency growth of approximately $130 million (3.5%).
- Q2 2024 net income of $363 million versus $297 million a year earlier; diluted EPS of $1.97 versus $1.59.
- Research & Development Solutions segment revenues rose 2.4% to $2,147 million in Q2 2024, and segment profit rose 5.3% to $493 million; R&D backlog increased to $30.6 billion from $29.7 billion at December 31, 2023.
- Six-month operating cash flow of $1,110 million versus $819 million in the prior-year period; cash and cash equivalents of $1,545 million at June 30, 2024.
- Total indebtedness of $13,328 million at June 30, 2024, with $1,995 million of additional available revolving credit capacity; the company was in compliance with its restrictive covenants in all material respects.
- No shares repurchased under the Repurchase Program during the first six months of 2024; $2,363 million of authorization remained at June 30, 2024.
- On July 11, 2024, the Korean Supreme Court dismissed appeals in the IMS Korea privacy lawsuit and criminal indictment, with decisions final in IMS Korea's favor; the Veeva litigation remains pending with trial scheduled for early 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2024, IQVIA Holdings kept $0.10.
- Revenue$3.81B100.0%
- Cost of revenue−$2.95B77.4%
- Gross profit$863.0M22.6%
- Operating costs−$343.0M9.0%
- Operating income$520.0M13.6%
- Interest, other & tax−$157.0M4.1%
- Net income$363.0M9.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed July 22, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $3.81B$3.73B | +2.3% |
| Gross Profit | $863.00M$850.00M | +1.5% |
| SG&A Expenses | $509.00M$482.00M | +5.6% |
| Operating Income | $520.00M$524.00M | −0.8% |
| Interest Expense | $163.00M$169.00M | −3.6% |
| Net Income | $363.00M$297.00M | +22.2% |
| EPS (Basic) | $1.99$1.61 | +23.6% |
| EPS (Diluted) | $1.97$1.59 | +23.9% |
| Shares Outstanding (Basic) | 182.20M184.40M | −1.2% |
| Shares Outstanding (Diluted) | 184.30M186.70M | −1.3% |
05—Questions
Frequently Asked Questions
How did IQVIA perform in the second quarter of 2024?
Revenues rose 2.3% to $3,814 million, and net income increased to $363 million from $297 million. Diluted EPS was $1.97, compared with $1.59 in the second quarter of 2023. Income from operations was $520 million, compared with $524 million a year earlier.
What drove the increase in net income despite flat operating income?
The filing attributes other income, net of $67 million in the quarter, primarily to revaluations of contingent consideration arrangements, with a lesser contribution from foreign currency gains on transactions. Income tax expense also fell to $75 million from $81 million, and the effective tax rate was 17.2% versus 21.6% a year earlier, favorably affected by changes in the geographical mix of earnings.
How is IQVIA's debt position and liquidity?
Total indebtedness was $13,328 million at June 30, 2024, down from $13,752 million principal at December 31, 2023. Cash and cash equivalents were $1,545 million, and $1,995 million of revolving credit capacity was available. The company stated it believes these resources will fund operations and debt obligations for at least the next 12 months.
Did IQVIA repurchase stock in 2024?
No. The company did not repurchase any shares under its Repurchase Program during the six months ended June 30, 2024. Remaining authorization under the program was $2,363 million as of June 30, 2024.
What are the key legal developments disclosed?
On July 11, 2024, the Supreme Court of South Korea dismissed plaintiffs' appeal in the civil privacy lawsuit and the prosecutor's appeal in the criminal case against IMS Korea, making those decisions final in IMS Korea's favor. The Veeva litigation continues, with trial scheduled for early 2025, and Veeva has counterclaims claiming damages in excess of $200 million.
06—Continue