Iqvia Holdings, Inc. · NYSE:IQV
Iqvia — Q3 2023 Earnings Presentation
16 slides from Iqvia's earnings presentation, Nov 1, 2023
Slide 1: Q3 2023 Earnings Call
Q3 2023 Earnings Call November 1, 2023 1
Slide 2: Legal: Safe Harbor Statement for Forward-Looking Statements
Legal This presentation should be viewed in conjunction with IQVIA’s Q3 2023 earnings call Safe Harbor Statement for Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 19
Slide 3: Legal: Non-GAAP Information
Legal Non-GAAP Information This presentation includes information based on financial measures that are not recognized under generally accepted accounting principles in the United States (“GAAP”), such as Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings per Share, Gross Leverage Ratio,
Slide 4: 3rd Quarter Results
3rd Quarter Results $M, except per share data Revenue Adjusted EBITDA(1) Adjusted Diluted EPS(1) 4.9% AFx 4.1% CFx 9.1% AFx 0.4% AFx $3,736 $3,562 $888 $2.49 $2.48 $814 Dollars are at actual foreign exchange rates. AFx is actual currency. CFx is constant currency. (1) See reconciliation of non-GAAP
Slide 5: 3rd Quarter and Year-to-Date Revenue
3rd Quarter and Year-to-Date Revenue $M Q3 YTD 2023 2022 VPY% VPY% 2023 2022 VPY% VPY% AFx CFx AFx CFx Technology & Analytics $1,431 $1,400 2.2% 0.9% $4,331 $4,247 2.0% 2.4% Solutions Research & Development $2,122 $1,979 7.2% 6.4% $6,244 $5,863 6.5% 6.8% Solutions Contract Sales & Medical $183 $183
Slide 6: 3rd Quarter and Year-to-Date Profit
3rd Quarter and Year-to-Date Profit $M, except per share data Q3 YTD 2023 2022 2023 2022 Adjusted EBITDA (1) $888 $814 $2,603 $2,426 Net Income $303 $283 $889 $864 Diluted Earnings per Share $1.63 $1.49 $4.76 $4.52 Adjusted Net Income (1) $462 $470 $1,378 $1,413 Adjusted Diluted Earnings per $2.49 $
Slide 7: R&D Solutions Backlog
R&D Solutions Backlog $B Up 33% since Q3 2020 Up 11.7% vs PY Dollars are at actual foreign exchange rates. 7
Slide 8: 3rd Quarter Balance Sheet and Cash Flow Items and Metrics
3rd Quarter Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents $1,224 Gross Debt $13,631 Net Debt $12,407 Gross Leverage Ratio (1) 3.87x Net Leverage Ratio (1) 3.52x Net Cash Provided by Operating Activities $583 Capital Expenditures $146 Free Cash Flow (2) $437 Dollars are at
Slide 9: Full Year 2023 Guidance
Full Year 2023 Guidance $M, except per share data Guidance VPY% Revenue $14,885 – $14,920 3.3% – 3.5% Adj. EBITDA $3,560 – $3,570 6.4% – 6.7% Adj. Diluted EPS $10.16 – $10.23 Flat – 0.7%(1) (1) Adjusted Diluted EPS is expected to grow 11 to 12%, excluding the year-over-year impact of the step-up in
Slide 10: Q4 2023 Guidance
Q4 2023 Guidance $M, except per share data Guidance VPY% Revenue $3,769 – $3,804 0.8% – 1.7% Adj. EBITDA $957 – $967 4.0% – 5.1% Adj. Diluted EPS $2.79 – $2.86 0.4% – 2.9% (1) (1) Adjusted Diluted EPS is expected to grow 10 to 13%, excluding the year-over-year impact of the step-up in interest rates
Slide 11: 2024 Preliminary Outlook
2024 Preliminary Outlook Initial expectations Initial 2024 Outlook • ~$300M COVID Revenue step down Revenue Growth Mid-single digit • ~100 bps F/X headwind Adj. EBITDA Margin ~ 50 bps Expansion Adj. Diluted EPS Growth High-single digit All financial guidance assumes October 30, 2023 foreign exchange
Slide 12: Q&A
Q&A 12
Slide 13: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2023 2022 2023 2022 Net Income $ 303 $ 283 $ 889 $ 864 Provision for income taxes 51 70 203 212 Depreciation and amortization 297 248 809 773 Interest expense, net 167 104 467
Slide 14: Net Income to Adj. Net Income and Per Share Data Reconciliation
Net Income to Adj. Net Income and Per Share Data Reconciliation Three Months Ended Nine Months Ended September 30, September 30, (in millions, except per share data) 2023 2022 2023 2022 Net Income $ 303 $ 283 $ 889 $ 864 Provision for income taxes 51 70 203 212 Purchase accounting amortization (1) 1
Slide 15: Operating Cash Flow to Free Cash Flow Reconciliation
Operating Cash Flow to Free Cash Flow Reconciliation Three Months Ended Nine Months Ended (in millions) September 30, 2023 September 30, 2023 Net Cash provided by Operating Activities $ 583 $ 1,402 Acquisition of property, equipment and software (146) (470) Free Cash Flow $ 437 $ 932 15
Slide 16: Leverage Ratios
Leverage Ratios (in millions) Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of September 30, 2023 $ 13,631 Net Debt as of September 30, 2023 $ 12,407 Adjusted EBITDA for the twelve months ended September 30, 2023 $ 3,523 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 3.8