IQVIA reports second quarter adjusted net income of $306 million
July 24, 2019- 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 $1.9 billion of share repurchase authorization remaining as of June 30, 2019.
Full-Year 2019 Guidance
For full-year 2019, the company is updating its revenue, Adjusted EBITDA and Adjusted Diluted Earnings per Share guidance ranges as follows:
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($ millions, except per share data) |
Updated |
Prior (1) |
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Revenue |
$11,000 – $11,150 |
$10,900 – $11,125 |
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VPY% |
5.6% – 7.1% |
4.7% – 6.8% |
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Adjusted EBITDA |
$2,385 – $2,415 |
$2,375 – $2,425 |
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VPY% |
7.2% – 8.6% |
6.8% – 9.0% |
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Adjusted Diluted Earnings per Share |
$6.25 – $6.45 |
$6.20 – $6.40 |
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VPY% |
12.6% – 16.2% |
11.7% – 15.3% |
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(1) Provided on Q1 2019 earnings call and reaffirmed on June 18, 2019 |
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This financial guidance assumes foreign currency exchange rates at June 30, 2019 remain in effect for the remainder of the year.
Third-Quarter 2019 Guidance
The company’s third-quarter guidance and implied year-to-date guidance is as follows:
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($ millions, except per share data) |
Q3 |
Q3 YTD |
YTD VPY% |
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Revenue |
$2,730-$2,780 |
$8,154-$8,204 |
5.6%-6.2% |
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Adjusted EBITDA |
$580-$595 |
$1,745-$1,760 |
6.3%-7.3% |
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Adjusted Diluted Earnings per Share |
$1.53-$1.59 |
$4.59-$4.65 |
13.3%-14.8% |
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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.
