IQVIA Reports Second-Quarter 2018 Results and Raises Full-Year 2018 Revenue and Profit Guidance Revenue $2,567 million, up 9.0 percent reported and 7.7 percent at constant currency Adjusted EBITDA $533 million, up 14.1 p

Reports Second-Quarter 2018 Results and Raises Full-Year 2018 Revenue

$2,567 million, up 9.0 percent reported and 7.7 percent at constant

EBITDA $533 million, up 14.1 percent reported and 14.3 percent at

Diluted Earnings per Share $0.29

Diluted Earnings per Share $1.29, up 25.2 percent

guidance raised for revenue, Adjusted EBITDA and Adjusted Diluted EPS

million of share repurchase completed during the second quarter; $659

million completed year-to-date

DANBURY, Conn. & RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--July 24,

2018--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, 2018. On January 1,

2018, IQVIA adopted ASC 606 "Revenue from Contracts with Customers" as

required by the Financial Accounting Standards Board. Under this new

standard, IQVIA recognizes revenue in the Research & Development

Solutions segment on a percentage of completion basis. Additionally, ASC

606 requires that service revenue and reimbursed expense revenue be

consistently presented as one line on the income statement. Unless

stated otherwise, all financial information that follows has been

provided under ASC 606.

As of this earnings release, the company has renamed two of its

reporting segments. The reporting segment known as Commercial Solutions

is now called Technology & Analytics Solutions (TAS), and the reporting

segment known as Integrated Engagement Services is now called Contract

Sales & Medical Solutions (CSMS). This is a name change only and there

are no changes to the component parts of either segment.

Second-Quarter 2018 Operating Results

Revenue for the second quarter of $2,567 million increased 9.0 percent

on a reported basis, and 7.7 percent on a constant currency basis,

compared to the second quarter of 2017. Technology & Analytics Solutions

(formerly Commercial Solutions) revenue of $1,011 million grew 14.2

percent reported and 13.1 percent at constant currency, compared to the

second quarter of 2017. Research & Development Solutions revenue of

$1,350 million grew 9.6 percent reported and 8.3 percent on a constant

currency basis. Contract Sales & Medical Solutions (formerly Integrated

Engagement Services) revenue of $206 million declined 13.4 percent

reported and 15.1 percent at constant currency.

Second-quarter 2018 Adjusted EBITDA of $533 million increased 14.1

percent reported and 14.3 percent at constant currency. GAAP net income

was $61 million and GAAP diluted earnings per share was $0.29. Adjusted

Net Income of $270 million grew 17.9 percent, and Adjusted Diluted

Earnings per Share of $1.29 grew 25.2 percent.

"We delivered another quarter of strong operating and financial

performance, which included Adjusted Diluted EPS growth of over 25

percent year-over-year," said Ari Bousbib, chairman and CEO of IQVIA.

"The significant strategic investments we have been making in innovation

across our businesses over the past eighteen months are beginning to

build operating momentum. The team secured major wins for our tech

offerings during the quarter, and we had our largest ever R&D bookings

quarter, including record awards for our next generation clinical

development offering. Reflecting this strong operating performance, we

are pleased to raise our revenue and profit guidance for the year."

First-Half 2018 Operating Results

Revenue of $5,130 million for the first six months of 2018 increased 8.8

percent on a reported basis, and 6.5 percent on a constant currency

basis, compared to the first six months of 2017. Technology & Analytics

Solutions (formerly Commercial Solutions) revenue of $1,996 million grew

14.2 percent reported and 11.2 percent at constant currency, compared to

the first half of 2017. Research & Development Solutions revenue of

$2,715 million grew 8.8 percent reported and 7.0 percent on a constant

currency basis. Contract Sales & Medical Solutions (formerly Integrated

Engagement Services) revenue of $419 million declined 11.2 percent

reported and 14.0 percent at constant currency.

Research & Development Solutions contracted backlog including reimbursed

expenses was $15.73 billion at June 30, 2018. The company expects

approximately $4.6 billion of this backlog to convert to revenue in the

next twelve months. For comparability, the company is reporting Research

& Development Solutions last twelve months net new business on a

contracted basis excluding reimbursed expenses. Under this approach,

Research & Development Solutions contracted net new business of $4.88

billion for the twelve months ended June 30, 2018, grew 21.1 percent

compared to the twelve months ended June 30, 2017, representing a

contracted last twelve months book-to-bill ratio (excluding reimbursed

Adjusted EBITDA of $1,080 million for the first six months of 2018

increased 11.2 percent reported and 10.8 percent at constant currency.

GAAP net income was $130 million and GAAP diluted earnings per share was

$0.62. Adjusted Net Income of $555 million for the first six months of

2018 grew 12.6 percent, and Adjusted Diluted Earnings per Share of $2.63

grew 21.8 percent compared to the first half of 2017.

As of June 30, 2018, cash and cash equivalents were $879 million and

debt was $10,728 million, resulting in net debt of $9,849 million. At

the end of the second quarter of 2018, IQVIA's Gross Leverage Ratio was

5.1 times, and Net Leverage Ratio was 4.6 times, trailing twelve month

On June 15, 2018, the company repurchased $412 million of common stock

from a majority of the company's private equity sponsors and the founder

of the legacy Quintiles organization. The company also repurchased $161

million of its common stock in the open market, for total repurchases of

$573 million during the second quarter, and a total of $659 million

during the first half of 2018. IQVIA had approximately $1 billion of

share repurchase authorization remaining as of June 30, 2018.

Full-Year 2018 and Third-Quarter 2018 Guidance

For the full-year, the company raises its revenue and profit guidance

For the third quarter of 2018, IQVIA expects revenue between $2,550

million and $2,600 million, Adjusted EBITDA between $540 million and

$560 million and Adjusted Diluted Earnings per Share between $1.35 and

This financial guidance assumes current foreign currency exchange rates

remain in effect for the remainder of the year.

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