IQVIA Reports Third-Quarter 2022 Results
IQVIA Holdings Inc. reported Q3 2022 revenue of $3,562 million, up 5.0% year-over-year, achieving a GAAP net income of $283 million, an increase of 8.4%. Adjusted EBITDA rose 11.8% to $814 million. R&D Solutions booked over $2.5 billion in quarterly bookings, with a record $2.0 billion excluding pass-throughs, yielding a book-to-bill ratio of 1.39x. The contracted backlog reached $25.8 billion, up 5.4%. For FY 2022, revenue guidance is updated to $14.325-14.425 billion, reflecting growth despite macroeconomic challenges.
- Revenue of $3,562 million grew 5.0% year-over-year.
- GAAP net income rose 8.4% to $283 million.
- Adjusted EBITDA increased by 11.8% to $814 million.
- R&D Solutions achieved historic bookings of over $2 billion.
- Contracted backlog grew 5.4% year-over-year to $25.8 billion.
- Contract Sales & Medical Solutions (CSMS) revenue decreased by 9.0% on a reported basis.
-
Revenue of
grew 5.0 percent year-over-year on a reported basis and 10.5 percent at constant currency$3,562 million -
GAAP Net Income of
grew 8.4 percent year-over-year$283 million -
Adjusted EBITDA of
increased 11.8 percent year-over-year$814 million -
GAAP Diluted Earnings per Share of
grew 11.2 percent year-over-year$1.49 -
Adjusted Diluted Earnings per Share of
increased 14.3 percent year-over-year$2.48 -
R&D Solutions quarterly bookings of over
; excluding pass throughs, quarterly bookings at a historic high of over$2.5 billion , representing a services book-to-bill ratio of 1.39x$2.0 billion -
R&D Solutions contracted backlog of
grew 5.4 percent year-over-year and 9.4 percent excluding the impact of foreign exchange$25.8 billion
Third-Quarter 2022 Operating Results
Revenue for the third quarter of
As of
"IQVIA had another outstanding quarter of operational and financial performance," said
Third-quarter GAAP Net Income was
Year-to-Date 2022 Operating Results
Revenue for the first nine months of 2022 was
GAAP Net Income for the first nine months of 2022 was
Financial Position
As of
Share Repurchase
During the third quarter of 2022, the company repurchased
Full-Year 2022 Guidance
For the full year of 2022, the company continues to expect low-to-mid teens organic revenue growth at constant currency, excluding COVID-related work. To reflect primarily the impact of the strengthening US dollar and to a lesser extent, minor delays in the timing of certain trial deliveries due to external macro factors, the company is updating its full-year 2022 revenue guidance range assuming foreign exchange currency rates as of
Fourth-Quarter 2022 Guidance
For the fourth quarter of 2022, the company expects revenue to be between
All financial guidance assumes foreign currency exchange rates as of
Webcast & Conference Call Details
IQVIA will host a conference call at
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 85,000 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 analyzing 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 behavior 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 fourth-quarter and full-year 2022 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 that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying 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, including any variants, and the public health policy responses to the outbreak, international conflicts or other disruptions outside of our control such as the current situation in
Note on Non-GAAP Financial Measures
This release includes information based on financial measures that are not recognized under generally accepted accounting principles in
The non-GAAP financial measures are not presented in accordance with GAAP. Please refer to the schedules attached to this release for reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. Our fourth-quarter and full-year 2022 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. 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
|
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended
|
||||||||||||
(in millions, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
$ |
3,562 |
|
|
$ |
3,391 |
|
|
$ |
10,671 |
|
|
$ |
10,238 |
|
Cost of revenues, exclusive of depreciation and amortization |
|
|
2,321 |
|
|
|
2,253 |
|
|
|
6,975 |
|
|
|
6,869 |
|
Selling, general and administrative expenses |
|
|
517 |
|
|
|
498 |
|
|
|
1,488 |
|
|
|
1,422 |
|
Depreciation and amortization |
|
|
248 |
|
|
|
336 |
|
|
|
773 |
|
|
|
1,002 |
|
Restructuring costs |
|
|
4 |
|
|
|
2 |
|
|
|
15 |
|
|
|
15 |
|
Income from operations |
|
|
472 |
|
|
|
302 |
|
|
|
1,420 |
|
|
|
930 |
|
Interest income |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(7 |
) |
|
|
(4 |
) |
Interest expense |
|
|
108 |
|
|
|
92 |
|
|
|
288 |
|
|
|
285 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
25 |
|
Other expense (income), net |
|
|
8 |
|
|
|
(62 |
) |
|
|
51 |
|
|
|
(128 |
) |
Income before income taxes and equity in (losses) earnings of unconsolidated affiliates |
|
|
360 |
|
|
|
273 |
|
|
|
1,088 |
|
|
|
752 |
|
Income tax expense |
|
|
70 |
|
|
|
12 |
|
|
|
212 |
|
|
|
104 |
|
Income before equity in (losses) earnings of unconsolidated affiliates |
|
|
290 |
|
|
|
261 |
|
|
|
876 |
|
|
|
648 |
|
Equity in (losses) earnings of unconsolidated affiliates |
|
|
(7 |
) |
|
|
— |
|
|
|
(12 |
) |
|
|
5 |
|
Net income |
|
|
283 |
|
|
|
261 |
|
|
|
864 |
|
|
|
653 |
|
Net income attributable to non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
Net income attributable to |
|
$ |
283 |
|
|
$ |
261 |
|
|
$ |
864 |
|
|
$ |
648 |
|
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
1.52 |
|
|
$ |
1.36 |
|
|
$ |
4.59 |
|
|
$ |
3.38 |
|
Diluted |
|
$ |
1.49 |
|
|
$ |
1.34 |
|
|
$ |
4.52 |
|
|
$ |
3.32 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
186.5 |
|
|
|
191.5 |
|
|
|
188.3 |
|
|
|
191.5 |
|
Diluted |
|
|
189.4 |
|
|
|
195.3 |
|
|
|
191.3 |
|
|
|
195.0 |
|
Table 2
|
||||||||
|
||||||||
(in millions, except per share data) |
|
|
|
|
||||
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,274 |
|
|
$ |
1,366 |
|
Trade accounts receivable and unbilled services, net |
|
|
2,640 |
|
|
|
2,551 |
|
Prepaid expenses |
|
|
176 |
|
|
|
156 |
|
Income taxes receivable |
|
|
47 |
|
|
|
58 |
|
Investments in debt, equity and other securities |
|
|
87 |
|
|
|
111 |
|
Other current assets and receivables |
|
|
528 |
|
|
|
521 |
|
Total current assets |
|
|
4,752 |
|
|
|
4,763 |
|
Property and equipment, net |
|
|
507 |
|
|
|
497 |
|
Operating lease right-of-use assets |
|
|
333 |
|
|
|
406 |
|
Investments in debt, equity and other securities |
|
|
64 |
|
|
|
76 |
|
Investments in unconsolidated affiliates |
|
|
87 |
|
|
|
88 |
|
|
|
|
13,177 |
|
|
|
13,301 |
|
Other identifiable intangibles, net |
|
|
4,718 |
|
|
|
4,943 |
|
Deferred income taxes |
|
|
97 |
|
|
|
124 |
|
Deposits and other assets |
|
|
488 |
|
|
|
491 |
|
Total assets |
|
$ |
24,223 |
|
|
$ |
24,689 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued expenses |
|
$ |
2,971 |
|
|
$ |
2,981 |
|
Unearned income |
|
|
1,842 |
|
|
|
1,825 |
|
Income taxes payable |
|
|
124 |
|
|
|
137 |
|
Current portion of long-term debt |
|
|
151 |
|
|
|
91 |
|
Other current liabilities |
|
|
165 |
|
|
|
207 |
|
Total current liabilities |
|
|
5,253 |
|
|
|
5,241 |
|
Long-term debt, less current portion |
|
|
12,243 |
|
|
|
12,034 |
|
Deferred income taxes |
|
|
560 |
|
|
|
410 |
|
Operating lease liabilities |
|
|
259 |
|
|
|
313 |
|
Other liabilities |
|
|
561 |
|
|
|
649 |
|
Total liabilities |
|
|
18,876 |
|
|
|
18,647 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock and additional paid-in capital, 400.0 shares authorized as of |
|
|
10,853 |
|
|
|
10,777 |
|
Retained earnings |
|
|
3,107 |
|
|
|
2,243 |
|
|
|
|
(7,715 |
) |
|
|
(6,572 |
) |
Accumulated other comprehensive loss |
|
|
(898 |
) |
|
|
(406 |
) |
Total stockholders’ equity |
|
|
5,347 |
|
|
|
6,042 |
|
Total liabilities and stockholders’ equity |
|
$ |
24,223 |
|
|
$ |
24,689 |
|
Table 3
|
||||||||
|
||||||||
|
|
Nine Months Ended |
||||||
(in millions) |
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
|
||||
Net income |
|
$ |
864 |
|
|
$ |
653 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
773 |
|
|
|
1,002 |
|
Amortization of debt issuance costs and discount |
|
|
11 |
|
|
|
14 |
|
Stock-based compensation |
|
|
136 |
|
|
|
128 |
|
Losses (earnings) from unconsolidated affiliates |
|
|
12 |
|
|
|
(5 |
) |
Loss (gain) on investments, net |
|
|
35 |
|
|
|
(9 |
) |
Benefit from deferred income taxes |
|
|
(52 |
) |
|
|
(83 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Change in accounts receivable, unbilled services and unearned income |
|
|
(88 |
) |
|
|
663 |
|
Change in other operating assets and liabilities |
|
|
9 |
|
|
|
(113 |
) |
Net cash provided by operating activities |
|
|
1,700 |
|
|
|
2,250 |
|
Investing activities: |
|
|
|
|
||||
Acquisition of property, equipment and software |
|
|
(503 |
) |
|
|
(456 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(1,012 |
) |
|
|
(994 |
) |
Purchases of marketable securities, net |
|
|
(4 |
) |
|
|
(9 |
) |
Investments in unconsolidated affiliates, net of payments received |
|
|
(14 |
) |
|
|
(3 |
) |
Proceeds from sale of equity securities |
|
|
— |
|
|
|
5 |
|
Other |
|
|
4 |
|
|
|
1 |
|
Net cash used in investing activities |
|
|
(1,529 |
) |
|
|
(1,456 |
) |
Financing activities: |
|
|
|
|
||||
Proceeds from issuance of debt |
|
|
1,250 |
|
|
|
1,951 |
|
Payment of debt issuance costs |
|
|
(5 |
) |
|
|
(40 |
) |
Repayment of debt and principal payments on finance leases |
|
|
(86 |
) |
|
|
(2,068 |
) |
Proceeds from revolving credit facility |
|
|
1,500 |
|
|
|
410 |
|
Repayment of revolving credit facility |
|
|
(1,600 |
) |
|
|
(300 |
) |
Payments related to employee stock option plans |
|
|
(70 |
) |
|
|
(51 |
) |
Repurchase of common stock |
|
|
(1,103 |
) |
|
|
(202 |
) |
Acquisition of Quest's non-controlling interest |
|
|
— |
|
|
|
(758 |
) |
Contingent consideration and deferred purchase price payments |
|
|
(22 |
) |
|
|
(39 |
) |
Net cash used in financing activities |
|
|
(136 |
) |
|
|
(1,097 |
) |
Effect of foreign currency exchange rate changes on cash |
|
|
(127 |
) |
|
|
(41 |
) |
Decrease in cash and cash equivalents |
|
|
(92 |
) |
|
|
(344 |
) |
Cash and cash equivalents at beginning of period |
|
|
1,366 |
|
|
|
1,814 |
|
Cash and cash equivalents at end of period |
|
$ |
1,274 |
|
|
$ |
1,470 |
|
Table 4
|
||||||||||||||
|
||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
(in millions) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||
Net Income Attributable to |
|
$ |
283 |
|
$ |
261 |
|
|
$ |
864 |
|
$ |
648 |
|
Provision for income taxes |
|
|
70 |
|
|
12 |
|
|
|
212 |
|
|
104 |
|
Depreciation and amortization |
|
|
248 |
|
|
336 |
|
|
|
773 |
|
|
1,002 |
|
Interest expense, net |
|
|
104 |
|
|
90 |
|
|
|
281 |
|
|
281 |
|
Loss (income) in unconsolidated affiliates |
|
|
7 |
|
|
— |
|
|
|
12 |
|
|
(5 |
) |
Income from non-controlling interests |
|
|
— |
|
|
— |
|
|
|
— |
|
|
5 |
|
Deferred revenue purchase accounting adjustments |
|
|
— |
|
|
— |
|
|
|
1 |
|
|
— |
|
Stock-based compensation |
|
|
61 |
|
|
48 |
|
|
|
136 |
|
|
128 |
|
Other expense (income), net |
|
|
13 |
|
|
(55 |
) |
|
|
51 |
|
|
(93 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
1 |
|
|
|
— |
|
|
25 |
|
Restructuring and related expenses |
|
|
16 |
|
|
13 |
|
|
|
47 |
|
|
44 |
|
Acquisition related expenses |
|
|
12 |
|
|
22 |
|
|
|
49 |
|
|
55 |
|
Adjusted EBITDA |
|
$ |
814 |
|
$ |
728 |
|
|
$ |
2,426 |
|
$ |
2,194 |
|
Table 5
|
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
(in millions, except per share data) |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net Income Attributable to |
|
$ |
283 |
|
|
$ |
261 |
|
|
$ |
864 |
|
|
$ |
648 |
|
Provision for income taxes |
|
|
70 |
|
|
|
12 |
|
|
|
212 |
|
|
|
104 |
|
Purchase accounting amortization (1) |
|
|
128 |
|
|
|
231 |
|
|
|
414 |
|
|
|
695 |
|
Loss (income) in unconsolidated affiliates |
|
|
7 |
|
|
|
— |
|
|
|
12 |
|
|
|
(5 |
) |
Income from non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
Deferred revenue purchase accounting adjustments |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Stock-based compensation |
|
|
61 |
|
|
|
48 |
|
|
|
136 |
|
|
|
128 |
|
Other expense (income), net |
|
|
13 |
|
|
|
(55 |
) |
|
|
51 |
|
|
|
(93 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
25 |
|
Restructuring and related expenses |
|
|
16 |
|
|
|
13 |
|
|
|
47 |
|
|
|
44 |
|
Acquisition related expenses |
|
|
12 |
|
|
|
22 |
|
|
|
49 |
|
|
|
55 |
|
Adjusted Pre Tax Income |
|
$ |
590 |
|
|
$ |
533 |
|
|
$ |
1,786 |
|
|
$ |
1,606 |
|
Adjusted tax expense |
|
|
(120 |
) |
|
|
(110 |
) |
|
|
(373 |
) |
|
|
(333 |
) |
Income from non-controlling interests |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5 |
) |
Minority interest effect in non-GAAP adjustments (2) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Adjusted Net Income |
|
$ |
470 |
|
|
$ |
423 |
|
|
$ |
1,413 |
|
|
$ |
1,264 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
2.52 |
|
|
$ |
2.21 |
|
|
$ |
7.50 |
|
|
$ |
6.60 |
|
Diluted |
|
$ |
2.48 |
|
|
$ |
2.17 |
|
|
$ |
7.39 |
|
|
$ |
6.48 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
186.5 |
|
|
|
191.5 |
|
|
|
188.3 |
|
|
|
191.5 |
|
Diluted |
|
|
189.4 |
|
|
|
195.3 |
|
|
|
191.3 |
|
|
|
195.0 |
|
(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
|
||||||||
|
||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
(in millions) |
|
|
2022 |
|
|
|
2022 |
|
|
|
$ |
863 |
|
|
$ |
1,700 |
|
Acquisition of property, equipment and software |
|
|
(165 |
) |
|
|
(503 |
) |
Free Cash Flow |
|
$ |
698 |
|
|
$ |
1,197 |
|
Table 7
|
|||
(in millions) |
|
|
|
Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of |
|
$ |
12,394 |
Net Debt as of |
|
$ |
11,120 |
Adjusted EBITDA for the twelve months ended |
|
$ |
3,254 |
Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) |
|
3.8x |
|
Net Leverage Ratio (Net Debt/LTM Adjusted EBITDA) |
|
3.4x |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005165/en/
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FAQ
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