01—Abstract
Summary
Summary of the 8-K filed July 22, 2024. Cited figures are marked; the original filing is the authoritative source.
IQVIA Holdings Inc. (IQV) furnished an 8-K on July 22, 2024 under Item 2.02 (Results of Operations and Financial Condition), attaching a press release (Exhibit 99.1) reporting results for the second quarter ended June 30, 2024.
Second-quarter revenue was $3,814 milliona, up 2.3 percent on a reported basis and 3.5 percent at constant currency. GAAP net income was $363 million, or $1.97 per diluted share, and Adjusted EBITDA was $887 million. Adjusted diluted EPS was $2.64.
Management said the quarter came in at the high end of guidance, driven mainly by better-than-expected Technology & Analytics Solutions (TAS) performance. R&D Solutions (R&DS) showed continued strength: quarterly bookings were $2.7 billionb, a book-to-bill ratio of 1.27x, and contracted backlog reached $30.6 billion, up 7.7 percent reported and 8.1 percent at constant currency year-over-year. The company expects approximately $7.8 billion of that backlog to convert to revenue in the next twelve months.
Contract Sales & Medical Solutions revenue of $172 millionc declined 2.3 percent on a reported basis. Balance sheet metrics show total debt of $13,258 million and net debt of $11,713 million as of June 30, 2024, with a Net Leverage Ratio of 3.25x trailing twelve-month Adjusted EBITDA.
Second-quarter operating cash flow was $588 milliond and free cash flow was $445 million. The company updated full-year 2024 guidance: revenue of $15,425 million to $15,525 million, Adjusted EBITDA of $3,705 million to $3,765 million, and Adjusted Diluted EPS of $11.10 to $11.30, assuming foreign exchange rates as of July 18, 2024.
02—Key points
Key Highlights
- Q2 2024 revenue of $3,814 million, up 2.3 percent reported and 3.5 percent at constant currency
- GAAP diluted EPS of $1.97 and Adjusted diluted EPS of $2.64; Adjusted EBITDA of $887 million, up 2.7 percent year-over-year
- R&DS quarterly bookings of $2.7 billion with a 1.27x book-to-bill ratio; contracted backlog of $30.6 billion, up 7.7 percent reported
- Approximately $7.8 billion of R&DS backlog expected to convert to revenue in the next twelve months
- TAS revenue of $1,495 million, up 2.7 percent reported, driving a quarter at the high end of guidance
- Net debt of $11,713 million and Net Leverage Ratio of 3.25x; Q2 free cash flow of $445 million
- Full-year 2024 guidance updated: revenue $15,425-$15,525 million, Adjusted EBITDA $3,705-$3,765 million, Adjusted diluted EPS $11.10-$11.30
03—Questions
Frequently Asked Questions
How did IQVIA perform in the second quarter of 2024?
Revenue was $3,814 million, up 2.3 percent on a reported basis and 3.5 percent at constant currency. GAAP net income was $363 million and Adjusted EBITDA was $887 million. Management said results were at the high end of guidance, driven mainly by TAS.
What is the status of IQVIA's R&D Solutions backlog and bookings?
R&DS contracted backlog, including reimbursed expenses, was $30.6 billion at June 30, 2024, up 7.7 percent reported and 8.1 percent at constant currency. Second-quarter bookings were $2.7 billion, a 1.27x book-to-bill ratio, and the twelve-month book-to-bill ratio was 1.26x.
What did IQVIA change in its full-year 2024 guidance?
The company updated guidance to revenue of $15,425 million to $15,525 million, Adjusted EBITDA of $3,705 million to $3,765 million, and Adjusted Diluted EPS of $11.10 to $11.30. Guidance assumes foreign exchange rates as of July 18, 2024.
How is IQVIA's balance sheet and cash generation?
As of June 30, 2024, cash was $1,545 million and debt was $13,258 million, for net debt of $11,713 million and a Net Leverage Ratio of 3.25x. Second-quarter operating cash flow was $588 million and free cash flow was $445 million.
04—Continue