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IQVIA reports second quarter adjusted net income of $306 million

  • Second-quarter revenue $2,740 million
  • Adjusted EBITDA $578 million
  • GAAP Diluted Earnings per Share $0.30; Adjusted Diluted Earnings per Share $1.53
  • $236 million of share repurchases completed during the second quarter

DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.–(BUSINESS WIRE)–IQVIA Holdings Inc. (“IQVIA”) (NYSE:IQV), a leading global provider of advanced analytics, technology solutions, and contract research services to the life sciences industry, today reported financial results for the quarter ended June 30, 2019.

Second-Quarter 2019 Operating Results

Revenue for the second quarter of $2,740 million increased 8.5 percent at constant currency and 6.7 percent on a reported basis, compared to the second quarter of 2018. Technology & Analytics Solutions (TAS) revenue of $1,102 million grew 11.4 percent at constant currency and 9.0 percent reported. Research & Development Solutions (R&DS) revenue of $1,435 million grew 7.5 percent at constant currency and 6.3 percent reported. Contract Sales & Medical Solutions (CSMS) revenue of $203 million grew 1.0 percent at constant currency and declined 1.5 percent reported.

Second-quarter 2019 Adjusted EBITDA was $578 million, an increase of 8.4 percent compared to the second quarter of 2018. GAAP net income was $60 million, and GAAP diluted earnings per share was $0.30. Adjusted Net Income was $306 million, and Adjusted Diluted Earnings per Share was $1.53, up 18.6 percent compared to the second quarter of 2018.

“The team delivered excellent financial and operational results, with TAS and R&DS sustaining their strong momentum and CSMS continuing to improve,” said Ari Bousbib, chairman and CEO of IQVIA. “Our significant investments in innovation are driving a higher growth rate, and as a result, we are pleased to raise our full-year 2019 revenue and earnings guidance.”

First-Half 2019 Operating Results

Revenue of $5,424 million for the first six months of 2019 increased 7.8 percent on a constant currency basis and 5.7 percent on a reported basis, compared to the first six months of 2018. TAS revenue of $2,177 million grew 12.1 percent at constant currency and 9.1 percent reported, compared to the first half of 2018. R&DS revenue of $2,851 million grew 6.4 percent at constant currency and 5.0 percent reported. CSMS revenue of $396 million declined 3.1 percent at constant currency and declined 5.5 percent reported.

R&DS contracted backlog, including reimbursed expenses, grew 14.6 percent year-over-year to $18.03 billion at June 30, 2019. The company expects approximately $4.9 billion of this backlog to convert to revenue in the next twelve months. Second quarter backlog increased $840 million from first quarter closing backlog of $17.19 billion, resulting in a contracted book-to-bill ratio (including reimbursed expenses) of 1.59x for the second quarter of 2019. Excluding reimbursed expenses, the second-quarter contracted book-to-bill ratio was 1.35x. For the last twelve months ended June 30, 2019, the contracted book-to-bill ratio was 1.41x including reimbursed expenses and 1.50x excluding reimbursed expenses.

Adjusted EBITDA of $1,165 million for the first six months of 2019 increased 7.9 percent compared to the first six months of 2018. GAAP net income was $118 million and GAAP diluted earnings per share was $0.59. Adjusted Net Income of $615 million for the first six months of 2019 grew 10.8 percent and Adjusted Diluted Earnings per Share of $3.06 grew 16.3 percent compared to the first half of 2018.

Financial Position

As of June 30, 2019, cash and cash equivalents were $938 million and debt was $11,399 million, resulting in net debt of $10,461 million. At the end of the second quarter of 2019, IQVIA’s Net Leverage Ratio was 4.5 times trailing twelve month Adjusted EBITDA.

Share Repurchase

The company repurchased $236 million of its common stock during the second quarter of 2019, for a total of $377 million during the first half of 2019. IQVIA had approximately $1.9 billion of share repurchase authorization remaining as of June 30, 2019.

Full-Year 2019 Guidance

For full-year 2019, the company is updating its revenue, Adjusted EBITDA and Adjusted Diluted Earnings per Share guidance ranges as follows:

($ millions, except per share data)

Updated

Prior (1)

Revenue

$11,000 – $11,150

$10,900 – $11,125

VPY%

5.6% – 7.1%

4.7% – 6.8%

Adjusted EBITDA

$2,385 – $2,415

$2,375 – $2,425

VPY%

7.2% – 8.6%

6.8% – 9.0%

Adjusted Diluted Earnings per Share

$6.25 – $6.45

$6.20 – $6.40

VPY%

12.6% – 16.2%

11.7% – 15.3%

(1) Provided on Q1 2019 earnings call and reaffirmed on June 18, 2019

This financial guidance assumes foreign currency exchange rates at June 30, 2019 remain in effect for the remainder of the year.

Third-Quarter 2019 Guidance

The company’s third-quarter guidance and implied year-to-date guidance is as follows:

($ millions, except per share data)

Q3

Q3 YTD

YTD VPY%

Revenue

$2,730-$2,780

$8,154-$8,204

5.6%-6.2%

Adjusted EBITDA

$580-$595

$1,745-$1,760

6.3%-7.3%

Adjusted Diluted Earnings per Share

$1.53-$1.59

$4.59-$4.65

13.3%-14.8%

This financial guidance assumes foreign currency exchange rates at June 30, 2019 remain in effect for the remainder of the third quarter.

Webcast & Conference Call Details

IQVIA will host a conference call at 9:00 a.m. Eastern Time today to discuss its second-quarter 2019 financial results. To participate, please dial 1-800-681-1924 in the United States and Canada or +1-303-223-4366 outside the United States approximately 15 minutes before the scheduled start of the call. The conference call and a presentation will be accessible live via webcast on the Investors section of the IQVIA website at http://ir.iqvia.com. An archived replay of the webcast will be available online at http://ir.iqvia.com after 1:00 p.m. Eastern Time today.

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