Financial Performance Overview
IQVIA Holdings Inc reported robust fourth-quarter 2023 sales of $3.87 billion, marking a 3.5% increase year-over-year on a reported basis and a 2.6% rise at constant currency (CC). These figures surpassed both the management guidance of $3.769 billion-$3.804 billion and the consensus of $3.79 billion
The company also reported adjusted EPS of $2.84, outperforming the management’s guidance of $2.79-$2.86 and topping the consensus of $2.82.
Segment Performance
Technology & Analytics Solutions revenue increased by 2.1% (1.3% CC) to $1.53 billion, while Research & Development Solutions (R&DS) sales reached $2.15 billion, demonstrating a strong growth of 4.5% (3.7% CC). Contract Sales & Medical Solutions revenue reached $186 million, which is up by 2.2% (1.7% at CC).
Backlog and Future Expectations
As of December 31, 2023, R&DS contracted backlog, including reimbursed expenses, reflected a substantial growth of 9.2% Y/Y and 8.8% at constant currency, amounting to $29.7 billion. The company anticipates approximately $7.5 billion of this backlog to convert to revenue in the next twelve months, with the fourth-quarter book-to-bill ratio standing at 1.31x.
CEO’s Perspective and Guidance
“The IQVIA team delivered solid 2023 results in a challenging macro environment,” said Ari Bousbib, chairman and CEO of IQVIA. He emphasized that the TAS segment continued to grow despite persistent client caution and lower spending levels. Bousbib also noted that the fundamentals of their business and the outlook for their end markets remain healthy as they enter 2024.
IQVIA forecasts fiscal year 2024 revenue of $15.4 billion-$15.65 billion, expecting a COVID-related revenue step down of approximately $300 million, a foreign exchange headwind of about 50 basis points, and roughly 100 basis points of contribution from acquisitions. The company also anticipates fiscal year 2024 adjusted EPS of $10.95-$11.25 and adjusted EBITDA to be between $3.7 billion-$3.8 billion
Market Response
Following this positive performance, IQVIA shares surged by 9.79% and were trading at $236.35 at the last check on Wednesday.
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