Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q4 2022 Earnings Presentation
15 slides from Medpace's earnings presentation, Feb 13, 2023
Slide 1: Q4 2022 Financial Results
Q4 2022 FINANCIAL RESULTS FEBRUARY 13, 2023
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of histori
Slide 3: Q4 2022 – Key Operating Highlights
Q4 2022 – KEY OPERATING HIGHLIGHTS ($ in millions) Fourth Quarter Full Year 2022 2021 % Change 2022 2021 % Change Revenue, net $ 394.1 $ 308.6 27.7 % $ 1,460.0 $ 1,142.4 27.8 % Net New Business Awards $ 485.1 $ 458.7 5.8 % $ 1,829.5 $ 1,610.4 13.6 % Net Book-to-Bill (A) 1.23 1.49 n.m. 1.25 1.41 n.m.
Slide 4: Backlog and New Award Trends
BACKLOG AND NEW AWARD TRENDS Net Book-to-Bill Backlog Conversion Rate 1.49x 17.7% 17.6% 1.37x 1.39x 1.38x 16.9% 17.1% 17.0% 16.8% 1.28x 1.28x 16.7% 16.6% 1.23x 1.23x 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Net New Business Awards Ending Backlog and Est. NTM Ba
Slide 5: Q4 2022 – Key Financial Highlights
Q4 2022 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Fourth Quarter Full Year 2022 2021 % Change(C) 2022 2021 % Change(C) Revenue, net $ 394.1 $ 308.6 27.7 % $ 1,460.0 $ 1,142.4 27.8 % EBITDA(A) $ 80.4 $ 61.4 30.9 % $ 308.1 $ 223.1 38.1 % % Margin 20.4 % 19.9 % n.m. 21.1 % 19.5
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $394.1 $89.3 $383.7 $80.4 $351.2 $330.9 $70.4 $68.1 $295.6 $308.6 $278.3 $60.1 $61.4 $260.0 $53.6 $47.9 23.3% 20.6% 20.3% 21.3% 20.4% 19.9% 19.4% 17.2% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue .0 % CA GR +15.8% - 19.9% YOY - 2 0 +19.1% +27.8% YOY +23.4% YOY +22.2% YOY +7.5% YOY Guidance Range $1,460.0 $1,690 - $1,750 $1,142.4 $861.0 $925.9 $704.6 2018 2019 2020 2021 2022 2023 ($ in millions) EBITDA(A) 2 0 .0% CAGR +5.5% - 13.6% YOY +1 8. 2% - +
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Net Income 3 % CAGR +(0.1)% - 8.0% YOY - 2 9 . +34.9% YOY +27.3% +25.1% YOY +44.7% YOY Guidance Range +37.2% YOY $245.4 $245 - $265 $181.8 $145.4 $73.2 $100.4 2018 2019 2020 2021 2022 2023 Net Income per diluted share % CA GR +3.4% - 11.8% YOY 3 2 .8 +30.8 %- +51
Slide 9: 2022 – Revenue Composition
2022 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) OTH (A) Large Top 5 20% Mid-sized Pharma 18% ONC Biopharma 6% 32% Rest of 16% AVAI Top 10 2022 8% Small 7% Biopharma CNS 78% All Other 11% MET 75% CV 12% 17% (A) Top 5 OTH Large
Slide 10: Q4 2022 – Cash Position
Q4 2022 – CASH POSITION ($ in millions) ($ in millions) Fourth Quarter Full Year (A) Free Cash Flow and Free Cash Flow Conversion Free Cash Flow 2022 2021 2022 2021 (A) Free Cash Flow Free Cash Flow Conversion % Operating Cash Flow $ 136.7 $ 70.9 $ 388.1 $ 263.3 158.6% (GAAP) 125.4% Less: CAPEX 9.2
Slide 11: Full Year 2023 Guidance
FULL YEAR 2023 GUIDANCE ($ in millions, except per share data) As of February 13, 2023 Guidance Range Growth Rate Revenue, net $1,690.0 - $1,750.0 15.8% - 19.9% EBITDA $325.0 - $350.0 5.5% - 13.6% Net Income $245.0 - $265.0 (0.1)% - 8.0% Net Income per diluted share $7.53 - $8.14 3.4% - 11.8% Note:
Slide 12: Appendix
APPENDIX rest
Slide 13: Q4 2022 – Income Statement
Q4 2022 – INCOME STATEMENT % % Revenue, Revenue, 4Q22 vs. 4Q21 ($ in millions, except per share amounts) 4Q22 net 4Q21 net $ Change % Change Revenue, net $ 394.1 100.0 % $ 308.6 100.0 % $ 85.5 27.7 % Operating Expenses: Direct service costs, excluding depreciation and amortization 140.7 35.7 % 118.9
Slide 14: EBITDA Reconciliation
EBITDA RECONCILIATION Full Year Full Year Full Year Full Year Full Year ($ in millions) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 2018 2019 2020 2021 2022 Net income as reported (GAAP) $ 43.3 $ 39.9 $ 48.6 $ 50.0 $ 61.3 $ 49.4 $ 66.0 $ 68.7 $ 73.2 $ 100.4 $ 145.4 $ 181.8 $ 245.4 Income tax provision 5
Slide 15: FY2023 Guidance Reconciliation
FY2023 GUIDANCE RECONCILIATION ($ in millions, except per share amounts) Net Income per diluted Net Income share Low High Low High Net Income and Net Income per diluted share (GAAP) $ 245.0 $ 265.0 $ 7.53 $ 8.14 Income tax provision 55.0 60.0 Interest income, net (1.4) (1.4) Depreciation 24.2 24.2 A