- Revenue of $3,438 million for the second quarter grew 36.4
percent year-over-year
- GAAP Net Income of $175 million for the second quarter
increased from $(23) million in 2020
- Adjusted EBITDA of $722 million for the second quarter
increased from $483 million in 2020
- GAAP Diluted Earnings per Share of $0.90 for the second
quarter increased from $(0.12) in 2020
- Adjusted Diluted Earnings per Share of $2.13 for the second
quarter increased from $1.18 in 2020
- R&D Solutions contracted backlog of $23.9 billion grew
16.7 percent year-over-year; next twelve months revenue from
backlog increased to $6.6 billion, up 19.6 percent
year-over-year
- Full-year 2021 guidance raised for revenue, Adjusted EBITDA,
and Adjusted Diluted EPS
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 June 30, 2021.
Second-Quarter 2021 Operating Results Revenue for the
second quarter of $3,438 million increased 36.4 percent on a
reported basis and 33.2 percent at constant currency compared to
the second quarter of 2020. Technology & Analytics Solutions
(TAS) revenue of $1,353 million grew 22.0 percent on a reported
basis and 17.9 percent at constant currency. Research &
Development Solutions (R&DS) revenue of $1,891 million grew
53.1 percent on a reported basis and 50.7 percent at constant
currency. Excluding the impact of pass throughs, R&DS revenue
increased 44.6 percent year-over-year on a reported basis. Contract
Sales & Medical Solutions (CSMS) revenue of $194 million grew
9.6 percent on a reported basis and 7.3 percent at constant
currency.
R&DS contracted backlog, including reimbursed expenses, grew
16.7 percent year-over-year to $23.9 billion as of June 30, 2021.
The company expects approximately $6.6 billion of this backlog to
convert to revenue in the next twelve months, representing growth
of 19.6 percent compared to June 30, 2020. The second-quarter
contracted net book-to-bill ratio was 1.34x including reimbursed
expenses and 1.37x excluding reimbursed expenses. For the last
twelve months ended June 30, 2021, the contracted net book-to-bill
ratio was 1.45x including reimbursed expenses and 1.40x excluding
reimbursed expenses.
“We exceeded our targets across all key financial metrics and
delivered exceptional organic revenue growth as well as robust
earnings and free cash flow,” said Ari Bousbib, chairman and CEO of
IQVIA. “Both the TAS and R&DS segments sustained their
momentum, reporting strong double-digit organic growth. The outlook
for the life sciences industry remains healthy and we expect
continued strength in demand for our differentiated clinical and
commercial offerings. As a result of our performance and the
sustained market momentum, we are once again raising our full-year
2021 financial guidance.”
Second-quarter GAAP net income was $175 million versus $(23)
million in 2020, and GAAP diluted earnings per share was $0.90
versus $(0.12) in 2020. Adjusted Net Income was $416 million and
Adjusted Diluted Earnings per Share was $2.13, with the latter
representing growth of 80.5 percent compared to the second quarter
of 2020. Adjusted EBITDA was $722 million, up 49.5 percent compared
to the second quarter of 2020.
First-Half 2021 Operating Results Revenue for the first
six months of 2021 was $6,847 million, up 29.8 percent on a
reported basis and 27.0 percent at constant currency. TAS revenue
was $2,701 million, representing growth of 21.3 percent reported
and 17.5 percent at constant currency. R&DS revenue was $3,759
million, up 40.5 percent reported and 38.5 percent at constant
currency. CSMS revenue was $387 million, up by 3.8 percent reported
and 1.3 percent at constant currency.
GAAP net income was $387 million and GAAP diluted earnings per
share was $1.99. Adjusted Net Income was $841 million for the first
six months of 2021 and Adjusted Diluted Earnings per Share was
$4.32. Adjusted EBITDA for the first six months of 2021 was $1,466
million.
Financial Position As of June 30, 2021, cash and cash
equivalents were $1,807 million and debt was $12,287 million,
resulting in net debt of $10,480 million. IQVIA’s Net Leverage
Ratio was 3.74x trailing twelve month Adjusted EBITDA. For the
second quarter of 2021, Operating Cash Flow was $539 million and
Free Cash Flow was $394 million. For the first half of 2021,
Operating Cash Flow was $1,406 million and Free Cash Flow was
$1,112 million.
Share Repurchase During the second quarter of 2021, the
company repurchased $45 million of its common stock. IQVIA had $822
million of share repurchase authorization remaining as of June 30,
2021.
Full-Year 2021 Guidance For full-year 2021, the company
is raising its guidance ranges as follows:
($ in millions, except per share
data)
Updated Guidance
July 27
Prior Guidance
April 22
Revenue
$13,550 - $13,700
$13,200 - $13,500
VPY%(1)
19.3% - 20.6%
16.2% - 18.8%
Adjusted EBITDA
$2,950 - $3,000
$2,900 - $2,965
VPY%(1)
23.7% - 25.8%
21.6% - 24.4%
Adjusted Diluted EPS
$8.70 - $8.90
$8.50 - $8.75
VPY%(1)
35.5% - 38.6%
32.4% - 36.3%
(1) Growth rates are at actual foreign
currency exchange rates.
Third-Quarter 2021 Guidance For the third quarter of
2021, the company is providing guidance as follows:
($ in millions, except per share
data)
Guidance
VPY%(1)
Revenue
$3,290 - $3,365
18.1% - 20.8%
Adjusted EBITDA
$710 - $730
17.5% - 20.9%
Adjusted Diluted EPS
$2.06 - $2.13
26.4% - 30.7%
(1) Growth rates are at actual foreign
currency exchange rates.
All financial guidance assumes foreign currency exchange rates
as of June 30th remain in effect for the forecast period.
Webcast & Conference Call Details IQVIA will host a
conference call at 9:00 a.m. Eastern Time today to discuss its
second-quarter 2021 results and its third-quarter and full-year
2021 guidance. To listen to the event and view the presentation
slides via webcast, join from the IQVIA Investor Relations website
at http://ir.iqvia.com. To participate in the conference call,
interested parties must register in advance by clicking on this
link. Following registration, participants will receive a
confirmation email containing details on how to join the conference
call, including the dial-in and a unique passcode and registrant
ID. At the time of the live event, registered participants connect
to the call using the information provided in the confirmation
email and will be placed directly into the call.
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 74,000 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 third-quarter and full-year 2021
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. 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 and the public health policy responses to
the outbreak, international conflicts or other disruptions outside
of our control; our ability to accurately model or forecast the
impact of the spread and/or containment of COVID-19, among other
sources of business interruption, on our operations and financial
results; most of our contracts may be terminated on short notice,
and we may lose or experience delays with large client contracts or
be unable to enter into new contracts; the market for our services
may not grow as we expect; we may be unable to successfully develop
and market new services or enter new markets; imposition of
restrictions on our use of data by data suppliers or their refusal
to license data to us; any failure by us to comply with
contractual, regulatory or ethical requirements under our
contracts, including current or changes to data protection and
privacy laws; breaches or misuse of our or our outsourcing
partners’ security or communications systems; failure to meet our
productivity or business transformation objectives; failure to
successfully invest in growth opportunities; our ability to protect
our intellectual property rights and our susceptibility to claims
by others that we are infringing on their intellectual property
rights; the expiration or inability to acquire third party licenses
for technology or intellectual property; any failure by us to
accurately and timely price and formulate cost estimates for
contracts, or to document change orders; hardware and software
failures, delays in the operation of our computer and
communications systems or the failure to implement system
enhancements; the rate at which our backlog converts to revenue;
our ability to acquire, develop and implement technology necessary
for our business; consolidation in the industries in which our
clients operate; risks related to client or therapeutic
concentration; government regulators or our customers may limit the
scope of prescription or withdraw products from the market, and
government regulators may impose new regulatory requirements or may
adopt new regulations affecting the biopharmaceutical industry; the
risks associated with operating on a global basis, including
currency or exchange rate fluctuations and legal compliance,
including anti-corruption laws; risks related to changes in
accounting standards; general economic conditions in the markets in
which we operate, including financial market conditions and risks
related to sales to government entities; the impact of changes in
tax laws and regulations; and our ability to successfully
integrate, and achieve expected benefits from, our acquired
businesses. For a further discussion of the risks relating to the
company’s business, see the “Risk Factors” in our annual report on
Form 10-K for the fiscal year ended December 31, 2020, filed with
the SEC, as such factors may be amended or updated from time to
time in our subsequent periodic and other filings with the SEC,
which are accessible on the SEC’s website at www.sec.gov. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release and in our filings with the SEC. We assume no
obligation to update any such forward-looking statement after the
date of this release, whether as a result of new information,
future developments or otherwise.
Note on Non-GAAP Financial Measures Non-GAAP results,
such as Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS,
and Free Cash Flow are presented only as a supplement to the
company’s financial statements based on GAAP. Non-GAAP financial
information is provided to enhance understanding of the company’s
financial performance, but none of these non-GAAP financial
measures are recognized terms under GAAP, and non-GAAP measures
should not be considered in isolation from, or as a substitute
analysis for, the company’s results of operations as determined in
accordance with GAAP. Definitions and reconciliations of non-GAAP
measures to the most directly comparable GAAP measures are provided
within the schedules attached to this release. The company uses
non-GAAP measures in its operational and financial decision making,
and believes that it is useful to exclude certain items in order to
focus on what it regards to be a more meaningful indicator of the
underlying operating performance of the business. For example, the
Company excludes all the amortization of intangible assets
associated with acquired customer relationships and backlog,
databases, non-compete agreements and trademarks, trade names and
other from non-GAAP expense and income measures as such amounts can
be significantly impacted by the timing and size of acquisitions.
Although we exclude amortization of acquired intangible assets from
our non-GAAP expenses, we believe that it is important for
investors to understand that revenue generated from such
intangibles is included within revenue in determining net income
attributable to IQVIA Holdings Inc. As a result, internal
management reports feature non-GAAP measures which are also used to
prepare strategic plans and annual budgets and review management
compensation. The company also believes that investors may find
non-GAAP financial measures useful for the same reasons, although
investors are cautioned that non-GAAP financial measures are not a
substitute for GAAP disclosures.
Our third-quarter and full-year 2021 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
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(preliminary and unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions, except per share
data)
2021
2020
2021
2020
Revenues
$
3,438
$
2,521
$
6,847
$
5,275
Costs of revenue, exclusive of
depreciation and amortization
2,323
1,704
4,616
3,528
Selling, general and administrative
expenses
482
431
924
838
Depreciation and amortization
343
308
666
624
Restructuring costs
4
16
13
30
Income from operations
286
62
628
255
Interest income
(1
)
(1
)
(2
)
(3
)
Interest expense
94
108
193
214
Loss on extinguishment of debt
—
12
24
12
Other income, net
(29
)
(32
)
(66
)
(45
)
Income (loss) before income taxes and
equity in earnings of unconsolidated affiliates
222
(25
)
479
77
Income tax expense (benefit)
48
(5
)
92
12
Income (loss) before equity in earnings of
unconsolidated affiliates
174
(20
)
387
65
Equity in earnings (loss) of
unconsolidated affiliates
1
(1
)
5
5
Net income (loss)
175
(21
)
392
70
Net income attributable to non-controlling
interests
—
(2
)
(5
)
(11
)
Net income (loss) attributable to IQVIA
Holdings Inc.
$
175
$
(23
)
$
387
$
59
Earnings (loss) per share attributable to
common stockholders:
Basic
$
0.91
$
(0.12
)
$
2.02
$
0.31
Diluted
$
0.90
$
(0.12
)
$
1.99
$
0.30
Weighted average common shares
outstanding:
Basic
191.6
190.9
191.6
191.3
Diluted
194.9
190.9
194.9
195.0
Table 2
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(preliminary and unaudited)
(in millions, except per share
data)
June 30, 2021
December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
1,807
$
1,814
Trade accounts receivable and unbilled
services, net
2,276
2,410
Prepaid expenses
178
159
Income taxes receivable
69
56
Investments in debt, equity and other
securities
104
88
Other current assets and receivables
634
563
Total current assets
5,068
5,090
Property and equipment, net
470
482
Operating lease right-of-use assets
430
471
Investments in debt, equity and other
securities
74
78
Investments in unconsolidated
affiliates
84
84
Goodwill
12,551
12,654
Other identifiable intangibles, net
4,770
5,205
Deferred income taxes
105
114
Deposits and other assets
385
386
Total assets
$
23,937
$
24,564
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable and accrued expenses
$
2,756
$
2,813
Unearned income
1,597
1,252
Income taxes payable
101
102
Current portion of long-term debt
147
149
Other current liabilities
218
242
Total current liabilities
4,819
4,558
Long-term debt, less current portion
12,140
12,384
Deferred income taxes
266
338
Operating lease liabilities
345
371
Other liabilities
607
633
Total liabilities
18,177
18,284
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in
capital, 400.0 shares authorized as of June 30, 2021 and December
31, 2020, $0.01 par value, 255.6 shares issued and 191.6 shares
outstanding as of June 30, 2021; 254.7 shares issued and 191.2
shares outstanding as of December 31, 2020
10,696
11,095
Retained earnings
1,664
1,277
Treasury stock, at cost, 64.0 and 63.5
shares as of June 30, 2021 and December 31, 2020, respectively
(6,273
)
(6,166
)
Accumulated other comprehensive loss
(327
)
(205
)
Equity attributable to IQVIA Holdings
Inc.’s stockholders
5,760
6,001
Non-controlling interests
—
279
Total stockholders’ equity
5,760
6,280
Total liabilities and stockholders’
equity
$
23,937
$
24,564
Table 3
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(preliminary and unaudited)
Six Months Ended June
30,
(in millions)
2021
2020
Operating activities:
Net income
$
392
$
70
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
666
624
Amortization of debt issuance costs and
discount
10
8
Stock-based compensation
80
36
Earnings from unconsolidated
affiliates
(5
)
(5
)
Gain on investments, net
(9
)
(14
)
Benefit from deferred income taxes
(43
)
(102
)
Changes in operating assets and
liabilities:
Change in accounts receivable, unbilled
services and unearned income
481
208
Change in other operating assets and
liabilities
(166
)
(190
)
Net cash provided by operating
activities
1,406
635
Investing activities:
Acquisition of property, equipment and
software
(294
)
(283
)
Acquisition of businesses, net of cash
acquired
(65
)
(92
)
Purchases of marketable securities,
net
(8
)
(7
)
Investments in unconsolidated affiliates,
net of payments received
(3
)
15
Proceeds from sale of (investments in)
equity securities
9
(2
)
Net cash used in investing activities
(361
)
(369
)
Financing activities:
Proceeds from issuance of debt
1,751
1,590
Payment of debt issuance costs
(32
)
(33
)
Repayment of debt and principal payments
on capital lease obligations
(1,794
)
(755
)
Proceeds from revolving credit
facility
—
1,250
Repayment of revolving credit facility
—
(1,610
)
(Payments) related to employee stock
option plans
(55
)
(41
)
Repurchase of common stock
(107
)
(346
)
Distributions to non-controlling interest,
net
—
(5
)
Acquisition of Quest's non-controlling
interest
(756
)
—
Contingent consideration and deferred
purchase price payments
(38
)
(16
)
Net cash (used in) provided by financing
activities
(1,031
)
34
Effect of foreign currency exchange rate
changes on cash
(21
)
(28
)
(Decrease) Increase in cash and cash
equivalents
(7
)
272
Cash and cash equivalents at beginning of
period
1,814
837
Cash and cash equivalents at end of
period
$
1,807
$
1,109
Table 4
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET INCOME TO ADJUSTED EBITDA
RECONCILIATION
(preliminary and unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2021
2020
2021
2020
Net Income (Loss) Attributable to IQVIA
Holdings Inc.
$
175
$
(23
)
$
387
$
59
Provision for (benefit from) income
taxes
48
(5
)
92
12
Depreciation and amortization
343
308
666
624
Interest expense, net
93
107
191
211
(Loss) income in unconsolidated
affiliates
(1
)
1
(5
)
(5
)
Income from non-controlling interests
—
2
5
11
Deferred revenue purchase accounting
adjustments
—
1
—
1
Stock-based compensation
48
36
80
36
Other income, net
(11
)
(17
)
(38
)
(32
)
Loss on extinguishment of debt
—
12
24
12
Restructuring and related expenses
12
25
31
40
Acquisition related expenses
15
36
33
76
Adjusted EBITDA
$
722
$
483
$
1,466
$
1,045
Table 5
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET INCOME TO ADJUSTED NET
INCOME RECONCILIATION
(preliminary and unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions, except per share
data)
2021
2020
2021
2020
Net Income (Loss) Attributable to IQVIA
Holdings Inc.
$
175
$
(23
)
$
387
$
59
Provision for (benefit from) income
taxes
48
(5
)
92
12
Purchase accounting amortization (1)
239
226
464
465
(Loss) income in unconsolidated
affiliates
(1
)
1
(5
)
(5
)
Income from non-controlling interests
—
2
5
11
Deferred revenue purchase accounting
adjustments
—
1
—
1
Stock-based compensation
48
36
80
36
Other income, net
(11
)
(17
)
(38
)
(32
)
Loss on extinguishment of debt
—
12
24
12
Restructuring and related expenses
12
25
31
40
Acquisition related expenses
15
36
33
76
Adjusted Pre Tax Income
$
525
$
294
$
1,073
$
675
Adjusted tax expense
(109
)
(61
)
(223
)
(139
)
Income from non-controlling interests
—
(2
)
(5
)
(11
)
Minority interest effect in non-GAAP
adjustments (2)
—
(2
)
(4
)
(2
)
Adjusted Net Income
$
416
$
229
$
841
$
523
Adjusted earnings per share
attributable to common stockholders:
Basic
$
2.17
$
1.20
$
4.39
$
2.73
Diluted
$
2.13
$
1.18
$
4.32
$
2.68
Weighted average common shares
outstanding:
Basic
191.6
190.9
191.6
191.3
Diluted
194.9
194.3
194.9
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
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
NET CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW RECONCILIATION
(preliminary and unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
(in millions)
2021
2021
Net Cash provided by Operating
Activities
$
539
$
1,406
Acquisition of property, equipment and
software
(145
)
(294
)
Free Cash Flow
$
394
$
1,112
Table 7
IQVIA HOLDINGS INC. AND
SUBSIDIARIES
CALCULATION OF GROSS AND NET
LEVERAGE RATIOS
AS OF JUNE 30, 2021
(preliminary and unaudited)
(in millions)
Gross Debt, net of Original Issue
Discount, as of June 30, 2021
$
12,287
Net Debt as of June 30, 2021
$
10,480
Adjusted EBITDA for the twelve months
ended June 30, 2021
$
2,805
Gross Leverage Ratio (Gross Debt/LTM
Adjusted EBITDA)
4.4x
Net Leverage Ratio (Net Debt/LTM Adjusted
EBITDA)
3.7x
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210727005284/en/
Nick Childs, IQVIA Investor Relations
(nicholas.childs@iqvia.com) +1.973.316.3828
Tor Constantino, IQVIA Media Relations
(tor.constantino@iqvia.com) +1.484.567.6732
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