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IQVIA Holdings 8-K Report, Financial Results (Oct 31, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 31, 2024
Period End
October 31, 2024
Security
IQV
In the record · 2016–202610-K1110-Q338-K130

IQV filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 130 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’18Jun ’18
  2. Leadership change8-K · Jul ’20Jul ’20
  3. Leadership change8-K · Oct ’22Oct ’22
  4. Material agreement8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed October 31, 2024. Cited figures are marked; the original filing is the authoritative source.

IQVIA Holdings Inc. filed this Form 8-K on October 31, 2024 to furnish its press release reporting third-quarter 2024 results, along with an update to full-year 2024 guidance and the announcement of an Investor Day on December 10, 2024.

Third-quarter revenue was $3,896 milliona, up 4.3 percent on a reported basis, with GAAP Net Income of $285 million, Adjusted EBITDA of $939 million, and GAAP Diluted EPS of $1.55 versus Adjusted Diluted EPS of $2.84. Technology & Analytics Solutions (TAS) revenue of $1,554 million grew 8.6 percent reported, while R&D Solutions (R&DS) revenue of $2,162 million rose 1.9 percent reported. R&DS contracted backlog reached $31.1 billion, up 8.0 percent year-over-year, and the third-quarter book-to-bill ratio was 1.06x, which includes a large program cancellation due to drug futility.

Management lowered full-year 2024 guidance to revenue of $15,350 million to $15,400 millionb, Adjusted EBITDA of $3,675 million to $3,700 million, and Adjusted Diluted EPS of $11.10 to $11.20. The company attributed the update to delays in two fast-burning mega trials caused by client-related short-term logistical challenges, which are now expected to ramp in the second half of 2025. Operating cash flow for the first nine months was $1,831 million and free cash flow was $1,393 million, while net debt stood at $11,940 million, a Net Leverage Ratio of 3.27x trailing twelve-month Adjusted EBITDA.

The company repurchased $200 millionc of common stock in the third quarter and had $2,163 million of authorization remaining as of September 30, 2024. Chairman and CEO Ari Bousbib stated that margins expanded, free cash flow was strong, and TAS growth accelerated, while R&DS fundamentals remain solid based on RFP flow, qualified pipeline growth, backlog growth, and next-twelve-month revenue from backlog.

02—Key points

Key Highlights

  1. Third-quarter 2024 revenue of $3,896 million rose 4.3 percent on a reported basis and 4.2 percent at constant currency.
  2. TAS revenue of $1,554 million grew 8.6 percent reported; R&DS revenue of $2,162 million grew 1.9 percent reported, and CSMS revenue of $180 million decreased 1.6 percent.
  3. Full-year 2024 guidance was updated: revenue of $15,350–$15,400 million, Adjusted EBITDA of $3,675–$3,700 million, and Adjusted Diluted EPS of $11.10–$11.20, reflecting delays in two mega trials now expected to ramp in the second half of 2025.
  4. Q3 GAAP Diluted EPS was $1.55 and Adjusted Diluted EPS was $2.84, up 14.1 percent year-over-year; Adjusted EBITDA was $939 million, up 5.7 percent.
  5. R&DS contracted backlog was $31.1 billion, up 8.0 percent year-over-year; the third-quarter book-to-bill ratio was 1.06x, or 1.22x excluding a large program cancellation due to drug futility.
  6. Nine-month operating cash flow was $1,831 million and free cash flow was $1,393 million; net debt was $11,940 million, a Net Leverage Ratio of 3.27x.
  7. The company repurchased $200 million of common stock in Q3 and has $2,163 million of remaining authorization; an Investor Day is scheduled for December 10, 2024.

03—Questions

Frequently Asked Questions

  1. Why did IQVIA lower its full-year 2024 guidance?

    The company cited delays in two fast-burning mega trials due to client-related short-term logistical challenges. These trials are now expected to ramp in the second half of 2025, which reduced the full-year 2024 revenue, Adjusted EBITDA, and Adjusted Diluted EPS ranges.

  2. How did the business segments perform in the third quarter?

    TAS revenue of $1,554 million increased 8.6 percent on a reported basis and 8.2 percent at constant currency. R&DS revenue of $2,162 million increased 1.9 percent reported and 2.0 percent at constant currency, or 3.2 percent excluding pass-throughs. CSMS revenue of $180 million decreased 1.6 percent reported.

  3. How is the R&DS backlog and bookings trend?

    R&DS contracted backlog, including reimbursed expenses, was $31.1 billion at September 30, 2024, growing 8.0 percent year-over-year. The company expects approximately $7.8 billion of this backlog to convert to revenue in the next twelve months. The third-quarter book-to-bill ratio was 1.06x, including a large program cancellation due to drug futility, and 1.22x for the trailing twelve months.

  4. What is IQVIA's leverage and capital return position?

    As of September 30, 2024, cash and cash equivalents were $1,572 million and debt was $13,512 million, resulting in net debt of $11,940 million. The Net Leverage Ratio was 3.27x trailing twelve-month Adjusted EBITDA. The company repurchased $200 million of stock in the third quarter and had $2,163 million of authorization remaining.

04—Continue

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