IQVIA Reports Strong Q1 2024 Results Despite Large Cancellation

IQVIA Holdings Inc. reported revenue of $3,737 million, a 2.3% increase, and GAAP net income of $288 million for the first quarter ended March 31, 2024. The company reaffirmed its full-year 2024 guidance, expecting reported revenue between $15,325 million and $15,575 million.

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Muhammad Jawad
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IQVIA Reports Strong Q1 2024 Results Despite Large Cancellation

IQVIA Reports Strong Q1 2024 Results Despite Large Cancellation

IQVIA Holdings Inc., a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry, announced its financial results for the first quarter ended March 31, 2024. The company reported revenue of $3,737 million, representing a 2.3% increase on a reported basis and 2.9% growth at constant currency compared to the same period last year.

In the earnings call, Ari Bousbib, Chairman and CEO of IQVIA, highlighted the company's strong start to the year, with top and bottom-line numbers meeting or slightly exceeding expectations. IQVIA's GAAP net income for the quarter was $288 million, while adjusted EBITDA reached $862 million, a 1.3% year-over-year increase. GAAP diluted earnings per share stood at $1.56, and adjusted diluted earnings per share were $2.54.

Why this matters: The strong performance of IQVIA, a major player in the life sciences industry, has implications for the development of new treatments and therapies, and for the overall health of the global economy. The company's ability to overcome challenges like large cancellations and currency fluctuations is vital to the advancement of medical The strong performance of IQVIA, a major player in the life sciences industry, has implications for the development of new treatments and therapies, and for the overall health of the global economy. The company's ability to overcome challenges like large cancellations and currency fluctuations is vital to the advancement of medicalresearch and innovation.

Despite the positive results, Bousbib addressed a significant cancellation that occurred during the quarter. IQVIA experienced a $0.25 billion cancellation in the central nervous system area, which Bousbib described as "unusually large but manageable." He emphasized that the company's book-to-bill ratio, excluding this cancellation, was over 1.3x, demonstrating the strength of IQVIA's underlying business. The RDS contracted backlog reached $30.1 billion, a 7.9% year-over-year increase and 8.3% growth at constant currency.

Bousbib expressed optimism about IQVIA's prospects, stating, "The IQVIA team executed well in the first quarter, including strong bookings and robust free cash flow generation. The TAS segment revenue grew as expected in the quarter, and we continue to anticipate gradual improvement later in the year. The RDS segment continued to see strong demand in the quarter with healthy RFP growth."

IQVIA reaffirmed its full-year 2024 guidance, adjusting for the impact of a stronger US dollar. The company now expects reported revenue between $15,325 million and $15,575 million, representing growth of 2.3% to 3.9%. Adjusted EBITDA is projected to be in the range of $3,700 million to $3,800 million, reflecting an increase of 3.7% to 6.5%. Adjusted diluted EPS is anticipated to be between $10.95 and $11.25, up 7.4% to 10.3% year-over-year.

The company's strong financial position and operational execution position it well for future growth. With a robust backlog, healthy RFP flows, and a promising TAS business pipeline, IQVIA is well-positioned to successfully traverse the dynamic healthcare environment and deliver value to its clients and shareholders.

Key Takeaways

  • IQVIA reports Q1 2024 revenue of $3,737 million, up 2.3% year-over-year.
  • GAAP net income reaches $288 million, with adjusted EBITDA of $862 million.
  • Company overcomes challenges, including a $0.25 billion cancellation, to deliver strong results.
  • IQVIA reaffirms full-year 2024 guidance, expecting 2.3-3.9% revenue growth.
  • Strong backlog, RFP flows, and TAS pipeline position IQVIA for future growth.