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 December 31, 2020.
Fourth-Quarter 2020 Operating Results
Revenue for the fourth quarter of $3,298 million increased 13.9 percent on a reported basis and 12.2 percent at constant currency, compared to the fourth quarter of 2019. Technology & Analytics Solutions (TAS) revenue of $1,425 million grew 17.4 percent on a reported basis and 15.1 percent at constant currency. Research & Development Solutions (R&DS) revenue of $1,684 million grew 14.5 percent on a reported basis and 13.2 percent at constant currency. Excluding the impact of pass throughs, R&DS revenue increased 12.3 percent year-over-year on a reported basis. Contract Sales & Medical Solutions (CSMS) revenue of $189 million was lower by 10.0 percent on a reported basis and by 11.9 percent at constant currency.
R&DS contracted backlog, including reimbursed expenses, grew 18.5 percent year-over-year to $22.6 billion at December 31, 2020. The company expects approximately $5.9 billion of this backlog to convert to revenue in the next twelve months, representing growth of 13.5 percent compared to December 31, 2019. The fourth quarter contracted net book-to-bill ratio was 1.41x including reimbursed expenses and 1.42x excluding reimbursed expenses. For the year ended December 31, 2020, the contracted net book-to-bill ratio was 1.53x including reimbursed expenses and 1.44x excluding reimbursed expenses.
Fourth-quarter 2020 Adjusted EBITDA was $735 million, up 14.5 percent compared to the fourth quarter of 2019. GAAP net income was $119 million, and GAAP diluted earnings per share was $0.61. Adjusted Net Income was $411 million and Adjusted Diluted Earnings per Share was $2.11, up 21.3 percent compared to the fourth quarter of 2019.
“We closed 2020 with a strong quarter, delivering double-digit growth across all key financial metrics versus what had been a very strong fourth quarter in 2019, once again exceeding our financial targets,” said Ari Bousbib, chairman and CEO of IQVIA. “As expected, R&DS recovered sharply and TAS continued to build on its strong momentum, with both segments reporting mid-teens revenue growth in the quarter. The key markets we serve remain robust and our new business wins in these markets continue to accelerate. As a result of this performance, and the solid momentum we are seeing, we are raising our 2021 financial guidance.”
Full-Year 2020 Operating Results
Revenue of $11,359 million for the full year of 2020 grew 2.4 percent on a reported basis and 2.3 percent at constant currency, compared to 2019. TAS revenue of $4,858 million increased 8.3 percent on a reported basis and 8.1 percent at constant currency. R&DS revenue of $5,760 million was lower by 0.5 percent on a reported basis and by 0.7 percent at constant currency. Excluding the impact of pass throughs, R&DS revenue grew 2.2 percent year-over-year on a reported basis. CSMS revenue of $741 million was lower by 9.0 percent on a reported basis and by 9.2 percent at constant currency.
Adjusted EBITDA for the full year of 2020 was $2,384 million. GAAP net income was $279 million and GAAP diluted earnings per share was $1.43. Adjusted Net Income was $1,252 million and Adjusted Diluted Earnings per Share was $6.42.
Financial Position
As of December 31, 2020, cash and cash equivalents were $1,814 million and debt was $12,533 million, resulting in net debt of $10,719 million. At year-end 2020, IQVIA’s Net Leverage Ratio was 4.5x trailing twelve month Adjusted EBITDA. Free Cash Flow for the fourth quarter was $574 million, bringing full-year Free Cash Flow to $1,343 million.
Share Repurchase
During the fourth quarter of 2020, the company repurchased $102 million of its common stock, resulting in full year share repurchases of $423 million. IQVIA had $918 million of share repurchase authorization remaining as of December 31, 2020.
Full-Year 2021 Guidance
For the full year of 2021, the company is raising its guidance ranges as follows:
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