Full Press Release Details
Reports First-Quarter 2019 Results, Reaffirms Full-Year Guidance
revenue $2,684 million and Adjusted EBITDA $587 million
Diluted Earnings per Share $0.29; Adjusted Diluted Earnings per Share
constant currency organic revenue growth of 7.0 percent in Technology
& Analytics Solutions
R&D Solutions LTM contracted Net Book-to-Bill 1.51x, excluding pass
Solutions NTM revenue from backlog increases to $4.9 billion,
including pass throughs
million of share repurchases completed during the first quarter
guidance reaffirmed for revenue, Adjusted EBITDA and Adjusted Diluted
DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--May 1,
2019--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 March 31, 2019.
First-Quarter 2019 Operating Results
Revenue for the first
quarter of $2,684 million increased 7.2 percent at constant currency and
4.7 percent on a reported basis, compared to the first quarter of 2018.
Technology & Analytics Solutions (TAS) revenue of $1,075 million grew
12.9 percent at constant currency and 9.1 percent reported. Research &
Development Solutions (R&DS) revenue of $1,416 million grew 5.3 percent
at constant currency and 3.7 percent reported. This included a
year-over-year decline in pass throughs, resulting in over 300 basis
points of headwind to R&DS constant currency revenue growth. Contract
Sales & Medical Solutions (CSMS) revenue of $193 million declined 7.0
percent at constant currency and 9.4 percent reported.
R&DS contracted backlog grew 16.0 percent year-over-year to $17.58
billion at March 31, 2019. At the end of the quarter, the company became
aware of a client's decision to end a significant trial. The project
wind down is being assessed and contractual arrangements are still in
process. However, termination of this clinical trial was announced
publicly by the client and, accordingly, the company is making an
estimated adjustment to backlog of $390 million, comprised of $160
million related to services and $230 million related to pass throughs.
The unusually high proportion of pass throughs is unique to this therapy
area and is not representative of the profile of IQVIA's overall
backlog. This adjustment results in a backlog of $17.19 billion, of
which approximately $4.9 billion is expected to convert to revenue in
the next twelve months. R&DS contracted net book-to-bill, excluding pass
throughs and including the above adjustment, is 1.51x for the twelve
months ending March 31, 2019.
First-quarter 2019 Adjusted EBITDA was $587 million. GAAP net income was
$58 million, and GAAP diluted earnings per share was $0.29. Adjusted Net
Income was $309 million, and Adjusted Diluted Earnings per Share was
$1.53, up 14.2 percent compared to the first quarter of 2018.
"We began the year with another quarter of strong financial and
operational performance," said Ari Bousbib, chairman and CEO of IQVIA.
"We are particularly pleased with the sustained acceleration of our
top-line growth and the continued market penetration of our analytics
and technology-enabled offerings across our TAS and R&DS businesses. The
team is executing superbly for our clients and we are starting to
realize the benefits of our continued investments in innovation."
As of March 31, 2019, cash and cash
equivalents were $936 million and debt was $11,287 million, resulting in
net debt of $10,351 million. At the end of the first quarter of 2019,
IQVIA's Net Leverage Ratio was 4.6 times trailing twelve month Adjusted
During the first quarter of 2019, the company
repurchased $141 million of its common stock from certain of its
remaining private equity sponsors. IQVIA had approximately $2.1 billion
of share repurchase authorization remaining as of March 31, 2019.
Full-Year 2019 Guidance
Full-year 2019 guidance remains
unchanged, and the company is reaffirming its guidance range for revenue
of $10,900 million to $11,125 million, Adjusted EBITDA of $2,375 million
to $2,425 million and Adjusted Diluted Earnings per Share of $6.20 to
Second-Quarter 2019 Guidance
IQVIA expects second-quarter 2019
revenue of between $2,660 million and $2,710 million, Adjusted EBITDA
between $565 million and $580 million and Adjusted Diluted Earnings per
Share between $1.46 and $1.51.
This financial guidance assumes foreign currency exchange rates at March
31, 2019 remain in effect for the remainder of the year.
Webcast & Conference Call Details
conference call at 9:00 a.m. Eastern Time today to discuss its
first-quarter 2019 financial results and second-quarter 2019 guidance.
To participate, please dial 1-800-909-4261 in the United States and
Canada or +1-212-231-2926 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.
IQVIA (NYSE:IQV) is a leading global provider of
advanced analytics, technology solutions and contract research services
to the life sciences industry. Formed through the merger of IMS Health
and Quintiles, IQVIA applies human data science - leveraging the
analytic rigor and clarity of data science to the ever-expanding scope
of human science - to enable companies to reimagine and develop new
approaches to clinical development and commercialization, speed
innovation and accelerate improvements in healthcare outcomes. Powered
by the IQVIA CORE , IQVIA delivers unique and actionable insights at the
intersection of large-scale analytics, transformative technology and
extensive domain expertise, as well as execution capabilities. With more
than 58,000 employees, IQVIA conducts operations in more than 100
Cautionary Statements Regarding Forward-Looking Statements
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 full-year and