IQVIA Holdings Inc (IQV) Reports 4.9% Revenue Growth in Q3 2023
IQVIA Holdings Inc (NYSE:IQV) reports Q3 2023 revenue of $3,736 million, a 4.9% increase year-over-year.
GAAP Net Income of $303 million, reflecting a 7.1% growth from the previous year.
Adjusted EBITDA of $888 million, marking a 9.1% increase year-over-year.
R&D Solutions contracted backlog of $28.8 billion, showing a 12% growth year-over-year.
IQVIA Holdings Inc (NYSE:IQV), a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry, released its financial results for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a revenue of $3,736 million, marking a 4.9% growth year-over-year.
Financial Highlights
IQVIA's GAAP Net Income for the third quarter was $303 million, showing a 7.1% increase from the previous year. The company's Adjusted EBITDA stood at $888 million, marking a 9.1% growth year-over-year. The GAAP Diluted Earnings per Share was $1.63, reflecting a 9.4% increase year-over-year, while the Adjusted Diluted Earnings per Share was $2.49, a slight 0.4% growth from the previous year.
The company's R&D Solutions segment reported quarterly bookings of $2.6 billion, representing a book-to-bill ratio of 1.24x. The contracted backlog for this segment grew by 12% year-over-year to reach $28.8 billion.
I'm proud of the team's execution in the quarter," said Ari Bousbib, chairman and CEO of IQVIA. "We achieved strong profit margin expansion and cash flow conversion. The R&DS segment posted another strong quarter and continues to show good momentum, as reflected in our book-to-bill ratio and double-digit year-over-year growth in backlog and RFP flow. TAS segment revenue increased in the quarter despite persistent client caution, and spending levels that remain below our expectations. Beyond the current challenging environment, we are confident in the strong underlying fundamentals for the segment.
Year-to-Date Performance
For the first nine months of 2023, IQVIA reported a revenue of $11,116 million, a 4.2% increase on a reported basis and 4.8% at constant currency compared to the same period in 2022. The GAAP Net Income for this period was $889 million, and the Adjusted EBITDA was $2,603 million.
Financial Position and Share Repurchase
As of September 30, 2023, IQVIA's cash and cash equivalents were $1,224 million, and the debt was $13,631 million, resulting in a net debt of $12,407 million. The company's Net Leverage Ratio was 3.52x trailing twelve-month Adjusted EBITDA. For the third quarter, Operating Cash Flow was $583 million and Free Cash Flow was $437 million.
During the third quarter, IQVIA repurchased $144 million of its common stock, bringing the year-to-date share repurchase activity to $763 million. As of September 30, 2023, IQVIA had $2,592 million of share repurchase authorization remaining.
Outlook
IQVIA has updated its full-year guidance for 2023 to reflect slower growth in the TAS segment and the impact of the strengthening US dollar. The updated revenue guidance range of $14,885 million to $14,920 million represents growth of 3.3 to 3.5 percent on a reported basis and 3.7 to 3.9 percent at constant currency.
Explore the complete 8-K earnings release (here) from IQVIA Holdings Inc for further details.
This article first appeared on GuruFocus.
