- Revenue of $3,409 million for the first quarter grew 23.8
percent year-over-year
- Adjusted EBITDA of $744 million for the first quarter
increased 32.4 percent year-over-year
- GAAP Diluted Earnings per Share of $1.09 for the first
quarter; Adjusted Diluted Earnings per Share of $2.18 for the first
quarter grew 45.3 percent year-over-year
- R&D Solutions contracted backlog of $23.2 billion grew
18.3 percent year-over-year; next twelve months revenue from
backlog increased to $6.5 billion, up 31.1 percent
year-over-year
- Full-year 2021 guidance raised for revenue, Adjusted EBITDA
and Adjusted Diluted EPS
IQVIA Holdings Inc. (“IQVIA”) (NYSE:IQV), a leading global
provider of advanced analytics, technology solutions, and clinical
research services to the life sciences industry, today reported
financial results for the quarter ended March 31, 2021.
First-Quarter 2021 Operating Results Revenue for the
first quarter of $3,409 million increased 23.8 percent on a
reported basis and 21.4 percent at constant currency, compared to
the first quarter of 2020. Technology & Analytics Solutions
(TAS) revenue of $1,348 million grew 20.7 percent on a reported
basis and 17.1 percent at constant currency. Research &
Development Solutions (R&DS) revenue of $1,868 million grew
29.6 percent on a reported basis and 28.1 percent at constant
currency. Excluding the impact of pass throughs, R&DS revenue
increased 21.9 percent year-over-year on a reported basis. Contract
Sales & Medical Solutions (CSMS) revenue of $193 million was
lower by 1.5 percent on a reported basis and by 4.1 percent at
constant currency.
R&DS contracted backlog, including reimbursed expenses, grew
18.3 percent year-over-year to $23.2 billion at March 31, 2021. The
company expects approximately $6.5 billion of this backlog to
convert to revenue in the next twelve months, representing growth
of 31.1 percent compared to March 31, 2020. The first-quarter
contracted net book-to-bill ratio was 1.41x including reimbursed
expenses and 1.41x excluding reimbursed expenses. For the last
twelve months ended March 31, 2021, the contracted net book-to-bill
ratio was 1.52x including reimbursed expenses and 1.45x excluding
reimbursed expenses.
“We had a record quarter, with strong double-digit growth across
all key financial metrics and strong free cash flow conversion,”
said Ari Bousbib, chairman and CEO of IQVIA. “Our business momentum
continues to accelerate, with TAS and R&DS reporting
exceptional organic growth rates in the quarter. As a result of
this outstanding performance, and the sustained strength of our new
business wins, we are raising our 2021 financial guidance. We
expect demand for our differentiated clinical and commercial
offerings will continue to grow beyond 2021, on top of an
increasingly favorable outlook for the life sciences industry.”
First-quarter 2021 Adjusted EBITDA was $744 million, up 32.4
percent compared to the first quarter of 2020. GAAP net income was
$212 million, and GAAP diluted earnings per share was $1.09.
Adjusted Net Income was $425 million and Adjusted Diluted Earnings
per Share was $2.18, up 45.3 percent compared to the first quarter
of 2020.
Financial Position As of March 31, 2021, cash and cash
equivalents were $2,305 million and debt was $12,236 million,
resulting in net debt of $9,931 million. IQVIA’s Net Leverage Ratio
was 3.9x trailing twelve month Adjusted EBITDA. Free Cash Flow for
the first quarter was $718 million.
Share Repurchase During the first quarter of 2021, the
company repurchased approximately $50 million of its common stock.
IQVIA had $867 million of share repurchase authorization remaining
as of March 31, 2021.
Full-Year 2021 Guidance For full-year 2021, the company
is raising its guidance ranges as follows:
($ in millions, except per share
data)
Updated Guidance April
22
Updated Guidance April
1(1)
Guidance Feb
10(2)
Revenue
$13,200 - $13,500
$12,550 - $12,900
$12,550 - $12,900
VPY%(3)
16.2% - 18.8%
10.5% - 13.6%
10.5% - 13.6%
Adjusted EBITDA
$2,900 - $2,965
$2,760 - $2,840
$2,760 - $2,840
VPY%(3)
21.6% - 24.4%
15.8% - 19.1%
15.8% - 19.1%
Adjusted Diluted EPS
$8.50 - $8.75
$7.89 - $8.20
$7.77 - $8.08
VPY%(3)
32.4% - 36.3%
22.9% - 27.7%
21.0% - 25.9%
(1) Updated on April 1, 2021 as a result of the Q2 Solutions
transaction. (2) As disclosed on Q4 2020 earnings call on February
10, 2021. (3) Growth rates are at actual foreign currency exchange
rates.
Second-Quarter 2021 Guidance For the second quarter of
2021, the company is providing guidance as follows:
($ in millions, except per share
data)
Guidance
VPY%(1)
Revenue
$3,225 - $3,300
27.9% - 30.9%
Adjusted EBITDA
$690 - $715
42.9% - 48.0%
Adjusted Diluted EPS
$2.00 - $2.10
69.5% - 78.0%
(1) Growth rates are at actual foreign
currency exchange rates.
All financial guidance assumes current foreign currency exchange
rates remain in effect for the forecast period.
Webcast & Conference Call Details IQVIA will host a
conference call at 9:00 a.m. Eastern Time today to discuss its
first-quarter 2021 results and its second-quarter and full-year
2021 guidance. To listen to the event and view the presentation
slides via webcast, join from the IQVIA Investor Relations website
at http://ir.iqvia.com. To participate in the conference call,
interested parties must register in advance by clicking on this
link. Following registration, participants will receive a
confirmation email containing details on how to join the conference
call, including the dial-in and a unique passcode and registrant
ID. At the time of the live event, registered participants connect
to the call using the information provided in the confirmation
email and will be placed directly into the call.
About IQVIA IQVIA (NYSE:IQV) is a leading global provider
of advanced analytics, technology solutions, and clinical research
services to the life sciences industry. IQVIA creates intelligent
connections across all aspects of healthcare through its analytics,
transformative technology, big data resources and extensive domain
expertise. IQVIA Connected Intelligence™ delivers powerful insights
with speed and agility — enabling customers to accelerate the
clinical development and commercialization of innovative medical
treatments that improve healthcare outcomes for patients. With
approximately 72,000 employees, IQVIA conducts operations in more
than 100 countries.
IQVIA is a global leader in protecting individual patient
privacy. The company uses a wide variety of privacy-enhancing
technologies and safeguards to protect individual privacy while
generating and analysing information on a scale that helps
healthcare stakeholders identify disease patterns and correlate
with the precise treatment path and therapy needed for better
outcomes. IQVIA’s insights and execution capabilities help biotech,
medical device and pharmaceutical companies, medical researchers,
government agencies, payers and other healthcare stakeholders tap
into a deeper understanding of diseases, human behaviour and
scientific advances, in an effort to advance their path toward
cures. To learn more, visit www.iqvia.com.
Cautionary Statements Regarding Forward-Looking
Statements This press release contains “forward-looking
statements” within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
including, without limitation, our second-quarter and full-year
2021 guidance. In this context, forward-looking statements often
address expected future business and financial performance and
financial condition, and often contain words such as “expect,”
“assume,” “anticipate,” “intend,” “plan,” “forecast,” “believe,”
“seek,” “see,” “will,” “would,” “target,” similar expressions, and
variations or negatives of these words. Actual results may differ
materially from our expectations due to a number of factors,
including, but not limited to, the following: business disruptions
caused by natural disasters, pandemics such as the COVID-19
(coronavirus) outbreak and the public health policy responses to
the outbreak, international conflicts or other disruptions outside
of our control; our ability to accurately model or forecast the
impact of the spread and/or containment of COVID-19, among other
sources of business interruption, on our operations and financial
results; most of our contracts may be terminated on short notice,
and we may lose or experience delays with large client contracts or
be unable to enter into new contracts; the market for our services
may not grow as we expect; we may be unable to successfully develop
and market new services or enter new markets; imposition of
restrictions on our use of data by data suppliers or their refusal
to license data to us; any failure by us to comply with
contractual, regulatory or ethical requirements under our
contracts, including current or changes to data protection and
privacy laws; breaches or misuse of our or our outsourcing
partners’ security or communications systems; failure to meet our
productivity or business transformation objectives; failure to
successfully invest in growth opportunities; our ability to protect
our intellectual property rights and our susceptibility to claims
by others that we are infringing on their intellectual property
rights; the expiration or inability to acquire third party licenses
for technology or intellectual property; any failure by us to
accurately and timely price and formulate cost estimates for
contracts, or to document change orders; hardware and software
failures, delays in the operation of our computer and
communications systems or the failure to implement system
enhancements; the rate at which our backlog converts to revenue;
our ability to acquire, develop and implement technology necessary
for our business; consolidation in the industries in which our
clients operate; risks related to client or therapeutic
concentration; government regulators or our customers may limit the
scope of prescription or withdraw products from the market, and
government regulators may impose new regulatory requirements or may
adopt new regulations affecting the biopharmaceutical industry; the
risks associated with operating on a global basis, including
currency or exchange rate fluctuations and legal compliance,
including anti-corruption laws; risks related to changes in
accounting standards; general economic conditions in the markets in
which we operate, including financial market conditions and risks
related to sales to government entities; the impact of changes in
tax laws and regulations; and our ability to successfully
integrate, and achieve expected benefits from, our acquired
businesses. For a further discussion of the risks relating to the
company’s business, see the “Risk Factors” in our annual report on
Form 10-K for the fiscal year ended December 31, 2020, filed with
the SEC, as such factors may be amended or updated from time to
time in our subsequent periodic and other filings with the SEC,
which are accessible on the SEC’s website at www.sec.gov. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release and in our filings with the SEC. We assume no
obligation to update any such forward-looking statement after the
date of this release, whether as a result of new information,
future developments or otherwise.
Note on Non-GAAP Financial Measures Non-GAAP results,
such as Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted
EPS, are presented only as a supplement to the company’s financial
statements based on GAAP. Non-GAAP financial information is
provided to enhance understanding of the company’s financial
performance, but none of these non-GAAP financial measures are
recognized terms under GAAP, and non-GAAP measures should not be
considered in isolation from, or as a substitute analysis for, the
company’s results of operations as determined in accordance with
GAAP. Definitions and reconciliations of non-GAAP measures to the
most directly comparable GAAP measures are provided within the
schedules attached to this release. The company uses non-GAAP
measures in its operational and financial decision making, and
believes that it is useful to exclude certain items in order to
focus on what it regards to be a more meaningful indicator of the
underlying operating performance of the business. For example, the
Company excludes all the amortization of intangible assets
associated with acquired customer relationships and backlog,
databases, non-compete agreements and trademarks, trade names and
other from non-GAAP expense and income measures as such amounts can
be significantly impacted by the timing and size of acquisitions.
Although we exclude amortization of acquired intangible assets from
our non-GAAP expenses, we believe that it is important for
investors to understand that revenue generated from such
intangibles is included within revenue in determining net income
attributable to IQVIA Holdings Inc. As a result, internal
management reports feature non-GAAP measures which are also used to
prepare strategic plans and annual budgets and review management
compensation. The company also believes that investors may find
non-GAAP financial measures useful for the same reasons, although
investors are cautioned that non-GAAP financial measures are not a
substitute for GAAP disclosures.
Our second-quarter and full-year 2021 guidance measures (other
than revenue) are provided on a non-GAAP basis because the company
is unable to reasonably predict certain items contained in the GAAP
measures. Such items include, but are not limited to, acquisition
related expenses, restructuring and related expenses, stock-based
compensation and other items not reflective of the company's
ongoing operations.
Non-GAAP measures are frequently used by securities analysts,
investors and other interested parties in their evaluation of
companies comparable to the company, many of which present non-GAAP
measures when reporting their results. Non-GAAP measures have
limitations as an analytical tool. They are not presentations made
in accordance with GAAP, are not measures of financial condition or
liquidity and should not be considered as an alternative to profit
or loss for the period determined in accordance with GAAP or
operating cash flows determined in accordance with GAAP. Non-GAAP
measures are not necessarily comparable to similarly titled
measures used by other companies. As a result, you should not
consider such performance measures in isolation from, or as a
substitute analysis for, the company’s results of operations as
determined in accordance with GAAP.
IQVIAFIN
Table 1
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(preliminary and unaudited)
Three Months Ended March
31,
(in millions, except per share
data)
2021
2020
Revenues
$
3,409
$
2,754
Costs of revenue, exclusive of
depreciation and amortization
2,293
1,824
Selling, general and administrative
expenses
442
407
Depreciation and amortization
323
316
Restructuring costs
9
14
Income from operations
342
193
Interest income
(1)
(2)
Interest expense
99
106
Loss on extinguishment of debt
24
—
Other income, net
(37)
(13)
Income before income taxes and equity in
earnings of unconsolidated affiliates
257
102
Income tax expense
44
17
Income before equity in earnings of
unconsolidated affiliates
213
85
Equity in earnings of unconsolidated
affiliates
4
6
Net income
217
91
Net income attributable to non-controlling
interests
(5)
(9)
Net income attributable to IQVIA Holdings
Inc.
$
212
$
82
Earnings per share attributable to common
stockholders:
Basic
$
1.11
$
0.43
Diluted
$
1.09
$
0.42
Weighted average common shares
outstanding:
Basic
191.5
191.6
Diluted
194.9
195.7
Table 2
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(preliminary and unaudited)
(in millions, except per share
data)
March 31, 2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
2,305
$
1,814
Trade accounts receivable and unbilled
services, net
2,361
2,410
Prepaid expenses
159
159
Income taxes receivable
64
56
Investments in debt, equity and other
securities
97
88
Other current assets and receivables
593
563
Total current assets
5,579
5,090
Property and equipment, net
472
482
Operating lease right-of-use assets
437
471
Investments in debt, equity and other
securities
74
78
Investments in unconsolidated
affiliates
88
84
Goodwill
12,415
12,654
Other identifiable intangibles, net
4,915
5,205
Deferred income taxes
107
114
Deposits and other assets
380
386
Total assets
$
24,467
$
24,564
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
2,819
$
2,813
Unearned income
1,554
1,252
Income taxes payable
135
102
Current portion of long-term debt
144
149
Other current liabilities
216
242
Total current liabilities
4,868
4,558
Long-term debt
12,092
12,384
Deferred income taxes
337
338
Operating lease liabilities
347
371
Other liabilities
586
633
Total liabilities
18,230
18,284
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in
capital, 400.0 shares authorized at March 31, 2021 and December 31,
2020, $0.01 par value, 255.4 shares issued and 191.6 shares
outstanding at March 31, 2021; 254.7 shares issued and 191.2 shares
outstanding at December 31, 2020
11,068
11,095
Retained earnings
1,489
1,277
Treasury stock, at cost, 63.8 and 63.5
shares at March 31, 2021 and December 31, 2020, respectively
(6,228)
(6,166)
Accumulated other comprehensive loss
(376)
(205)
Equity attributable to IQVIA Holdings
Inc.’s stockholders
5,953
6,001
Non-controlling interests
284
279
Total stockholders’ equity
6,237
6,280
Total liabilities and stockholders’
equity
$
24,467
$
24,564
Table 3
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(preliminary and unaudited)
Three Months Ended March
31,
(in millions)
2021
2020
Operating activities:
Net income
$
217
$
91
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
323
316
Amortization of debt issuance costs and
discount
5
3
Stock-based compensation
32
—
(Earnings) from unconsolidated
affiliates
(4)
(6)
Gain on investments, net
3
8
Benefit from deferred income taxes
(39)
(40)
Changes in operating assets and
liabilities:
Change in accounts receivable, unbilled
services and unearned income
342
(84)
Change in other operating assets and
liabilities
(12)
(125)
Net cash provided by operating
activities
867
163
Investing activities:
Acquisition of property, equipment and
software
(149)
(141)
Acquisition of businesses, net of cash
acquired
(19)
(14)
Purchases of marketable securities,
net
(7)
(7)
Investments in unconsolidated affiliates,
net of payments received
(1)
17
Investments in equity securities
(1)
(6)
Other
1
1
Net cash used in investing activities
(176)
(150)
Financing activities:
Proceeds from issuance of debt
1,751
800
Payment of debt issuance costs
(32)
(11)
Repayment of debt and principal payments
on capital lease obligations
(1,758)
(25)
Proceeds from revolving credit
facility
—
990
Repayment of revolving credit facility
—
(1,250)
(Payments) related to employee stock
option plans
(56)
(41)
Repurchase of common stock
(62)
(345)
Distributions to non-controlling interest,
net
—
(5)
Contingent consideration and deferred
purchase price payments
(11)
(6)
Net cash (used in) provided by financing
activities
(168)
107
Effect of foreign currency exchange rate
changes on cash
(32)
(30)
Increase in cash and cash equivalents
491
90
Cash and cash equivalents at beginning of
period
1,814
837
Cash and cash equivalents at end of
period
$
2,305
$
927
Table 4
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET INCOME TO ADJUSTED EBITDA
RECONCILIATION
(preliminary and unaudited)
Three Months Ended March
31,
(in millions)
2021
2020
Net Income Attributable to IQVIA
Holdings Inc.
$
212
$
82
Provision for income taxes
44
17
Depreciation and amortization
323
316
Interest expense, net
98
104
Income in unconsolidated affiliates
(4)
(6)
Income from non-controlling interests
5
9
Stock-based compensation
32
—
Other income, net
(27)
(15)
Loss on extinguishment of debt
24
—
Restructuring and related expenses
19
15
Acquisition related expenses
18
40
Adjusted EBITDA
$
744
$
562
Table 5
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET INCOME TO ADJUSTED NET
INCOME RECONCILIATION
(preliminary and unaudited)
Three Months Ended March
31,
(in millions, except per share
data)
2021
2020
Net Income Attributable to IQVIA
Holdings Inc.
$
212
$
82
Provision for income taxes
44
17
Purchase accounting amortization (1)
225
239
Income in unconsolidated affiliates
(4)
(6)
Income from non-controlling interests
5
9
Stock-based compensation
32
—
Other income, net
(27)
(15)
Loss on extinguishment of debt
24
—
Restructuring and related expenses
19
15
Acquisition related expenses
18
40
Adjusted Pre Tax Income
$
548
$
381
Adjusted tax expense
(114)
(78)
Income from non-controlling interests
(5)
(9)
Minority interest effect in non-GAAP
adjustments (2)
(4)
—
Adjusted Net Income
$
425
$
294
Adjusted earnings per share
attributable to common stockholders:
Basic
$
2.22
$
1.53
Diluted
$
2.18
$
1.50
Weighted average common shares
outstanding:
Basic
191.5
191.6
Diluted
194.9
195.7
(1)
Reflects all the amortization of acquired
intangible assets.
(2)
Reflects the portion of Q2 Solutions'
after-tax non-GAAP adjustments attributable to the minority
interest partner.
Table 6
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CALCULATION OF GROSS AND NET
LEVERAGE RATIOS
AS OF MARCH 31, 2021
(preliminary and unaudited)
(in millions)
Gross Debt, net of Original Issue
Discount, as of March 31, 2021
$
12,236
Net Debt as of March 31, 2021
$
9,931
Adjusted EBITDA for the twelve months
ended March 31, 2021
$
2,566
Gross Leverage Ratio (Gross Debt/LTM
Adjusted EBITDA)
4.8x
Net Leverage Ratio (Net Debt/LTM Adjusted
EBITDA)
3.9x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210422005299/en/
Andrew Markwick, IQVIA Investor Relations
(andrew.markwick@iqvia.com) +1.973.257.7144 Tor Constantino, IQVIA
Media Relations (tor.constantino@iqvia.com) +1.484.567.6732
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