Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2024 Earnings Presentation
15 slides from Medpace's earnings presentation, Oct 22, 2024
Slide 1: Q3 2024 Financial Results
Q3 2024 FINANCIAL RESULTS OCTOBER 21, 2024
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: Q3 2024 – Key Operating Highlights
Q3 2024 – KEY OPERATING HIGHLIGHTS ($ in millions) Third Quarter Year-to-Date 2024 2023 % Change 2024 2023 % Change Revenue, net $ 533.3 $ 492.5 8.3 % $ 1,572.5 $ 1,387.4 13.3 % Net New Business Awards $ 533.7 $ 611.5 (12.7)% $ 1,700.3 $ 1,742.1 (2.4)% Net Book-to-Bill (A) 1.00 1.24 n.m. 1.08 1.26 n
Slide 4: Backlog and New Award Trends
BACKLOG AND NEW AWARD TRENDS Net Book-to-Bill Backlog Conversion Rate 1.28x 1.23x 1.25x 1.24x 1.23x 19.1% 1.20x 18.7% 18.6% 18.5% 18.2% 18.2% 18.2% 1.04x 17.6% 1.00x 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 Net New Business Awards Ending Backlog and Est. NTM Ba
Slide 5: Q3 2024 – Key Financial Highlights
Q3 2024 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Third Quarter Year-to-Date 2024 2023 % Change(B) 2024 2023 % Change(B) Revenue, net $ 533.3 $ 492.5 8.3 % $ 1,572.5 $ 1,387.4 13.3 % EBITDA(A) $ 118.8 $ 90.2 31.7 % $ 346.7 $ 266.7 30.0 % % Margin 22.3 % 18.3 % n.m. 22.0 % 19.
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $511.0 $528.1 $533.3 $115.7 $118.8 $492.5 $498.4 $112.3 $460.9 $434.1 $92.8 $90.2 $95.8 $394.1 $83.6 $80.4 21.4% 22.6% 22.3% 20.4% 21.3% 18.1% 18.3% 19.2% 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue CAGR - 2 0 . 2% +10.8% - 12.9% YOY +19.9% +29.2% YOY +27.8% YOY +23.4% YOY Guidance Range +22.2% YOY +7.5% YOY $1,885.8 $2,090 - $2,130 $1,460.0 $925.9 $1,142.4 $704.6 $861.0 2018 2019 2020 2021 2022 2023 2024 ($ in millions) EBITDA(A) . 2 % CAGR +24.1% -
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Net Income C A GR +33.0% - 37.2% YOY % % - 32.0 +31.4 +15.3% YOY +34.9% YOY +25.1% YOY Guidance Range +44.7% YOY $376 - $388 +37.2% YOY $245.4 $282.8 $145.4 $181.8 $73.2 $100.4 2018 2019 2020 2021 2022 2023 2024 Net Income per diluted share +31.9% - 36.1% YOY .3%
Slide 9: YTD 2024 – Revenue Composition
YTD 2024 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) (A) OTH Large 21% Mid-sized Top 5 ONC Pharma 22% 31% Biopharma 4% 17% YTD 2024 AVAI Rest of 8% Small Top 10 CNS Biopharma 7% All Other 8% 79% 71% CV MET 11% 21% (A) OTH Top 5
Slide 10: Q3 2024 – Cash Position
Q3 2024 – CASH POSITION ($ in millions) ($ in millions) Third Quarter Year-to-Date (A) Free Cash Flow and Free Cash Flow Conversion Free Cash Flow 2024 2023 2024 2023 (A) Free Cash Flow Free Cash Flow Conversion % Operating Cash Flow $ 149.1 $ 114.4 $ 418.1 $ 277.0 152.8% (GAAP) 117.2% 127.3% 116.6%
Slide 11: Full Year 2024 Guidance
FULL YEAR 2024 GUIDANCE ($ in millions, except per share data) As of July 22, 2024 As of October 21, 2024 Guidance Range Growth Rate Guidance Range Growth Rate Revenue, net $2,125.0 - $2,175.0 12.7% - 15.3% $2,090.0 - $2,130.0 10.8% - 12.9% EBITDA $430.0 - $460.0 18.6% - 26.9% $450.0 - $470.0 24.1%
Slide 12: Appendix
APPENDIX rest
Slide 13: Q3 2024 – Income Statement
Q3 2024 – INCOME STATEMENT % % Revenue, Revenue, 3Q24 vs. 3Q23 ($ in millions, except per share amounts) 3Q24 net 3Q23 net $ Change % Change Revenue, net $ 533.3 100.0 % $ 492.5 100.0 % $ 40.8 8.3 % Operating Expenses: Direct service costs, excluding depreciation and amortization 171.5 32.2 % 164.4
Slide 14: EBITDA Reconciliation
EBITDA RECONCILIATION YTD YTD Last 12 ($ in millions) 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 2023 2024 Months Net income as reported (GAAP) $ 68.7 $ 72.9 $ 61.1 $ 70.6 $ 78.3 $102.6 $ 88.4 $ 96.4 $ 204.5 $ 287.4 $ 365.7 Income tax provision 5.0 13.1 14.7 12.7 12.4 10.2 22.1 22.4 40.5 54.7 67.1 Inte
Slide 15: FY2024 Guidance Reconciliation
FY2024 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) $ 376.0 $ 388.0 $ 11.71 $ 12.09 Income tax provision 68.6 76.6 Interest income, net (24.4) (24.4) Depreciation 28.4 28