Slide 1: ICON Q3 2024 Results
ICON Q3 2024 Results Period Ended September 30, 2024
Slide 2: Forward Looking Statement
Forward Looking Statement Statements included in this presentation which are not historical facts are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Forward-lookin
Slide 3: Challenging period in 2H24 due to customer specific & market-driven impacts
Challenging period in 2H24 due to customer specific & market-driven impacts Revenue shortfall attributable to financially-driven customer decisions; headwinds more significant than expected; identified opportunities didn’t materialize to offset decline in revenue • Uptick in vaccine-related cancella
Slide 4: CRO market is mixed but demand drivers in place
CRO market is mixed but demand drivers in place – Biotech market is improving in overall opportunity flow, but volatility remains in decision making on awards and speed to study start-up impacting overall trial activity – Large pharma demand in totality is positive with spending behavior and overall
Slide 5: Opportunities at ICON remain well intact
Opportunities at ICON remain well intact Year-to-date 2024 revenue growth ex-COVID 5.6% Year-to-date 2024 Adjusted EPS growth 13.5% Strong balance sheet position & cash conversion 1.6x Net Debt / Adj EBITDA Diversifying customer base & evidence of 3 new strategic partnerships within continued market
Slide 6: Backlog Metrics
Backlog Metrics +9.4% Growth 23.4 23.8 24.3 22.2 22.8 $bn 9.5% 9.3% 9.2% 9.1% 8.5% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Closing Backlog Burn rate 5
Slide 7: Revenue
Revenue 2,055 2,066 2,090 2,120 2,030 $m Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 6
Slide 8: Customer Concentration & Diversification
Customer Concentration & Diversification Percentage of Total Revenue Q3 2024 24.8% 15.9% 22.3% 37.0% Average revenue per customer (Q3 2024): Top 1-5: c5% on average Q2 2024 24.7% 14.6% 21.6% 39.1% Top 6-10: c3% on average Q3 2023 25.6% 14.7% 21.8% 37.9% Top 11-25: c1.5% on average Top 1-5 Customers
Slide 9: Adjusted EBITDA Margin
Adjusted EBITDA Margin 2,055 2,066 2,090 2,120 2,030 2,000 1,500 21.7% 21.0% 21.2% 21.2% 20.6% $m 1,000 500 - Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Revenue EBITDA Margin % Notes: All values exclude amortization, stock compensation, restructuring, FX and transaction-related / integration-related co
Slide 10: Adjusted Earnings per Share
Adjusted Earnings per Share 3.75 3.46 3.47 3.35 3.30 $ Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Notes: All values exclude amortization, stock compensation, restructuring, FX and transaction-related / integration-related costs Adjusted earnings per share is a non-GAAP financial measure. Refer to “Forw
Slide 11: Balance Sheet
Balance Sheet $m (unless otherwise stated) 30-Sep-24 30-Jun-24 30-Sep-23 Cash and Cash Equivalents + Available for Sale Investments 695.5 506.6 315.0 Total Debt (3,432.1) (3,437.9) (4,041.7) Net (Debt) / Cash (2,736.6) (2,931.4) (3,726.7) Net Debt / TTM Adj EBITDA Ratio 1.6x 1.7x 2.3x DSO (days) 52
Slide 12: Cash Flow
Cash Flow Quarterly Cash Flow ($m) Q3 2024 Q2 2024 Q3 2023 Cash from Operating Activities 402.7 218.6 341.5 Capital Expenditure (43.3) (36.3) (29.1) Free Cash Flow* 359.4 182.4 312.4 TTM Cash Flow ($m) Q3 2024 Q2 2024 Q3 2023 Cash from Operating Activities 1,388.5 1,327.3 661.5 Capital Expenditure (
Slide 13: 2024 Updated Financial Guidance & Outlook
2024 Updated Financial Guidance & Outlook % increase % increase FY2023 FY2024 Guidance (FY2024 Guidance vs. Excluding COVID- FY2023 Actuals) related trials Revenue $8,120.2m $8,260m - $8,300m 1.7% - 2.2% 4.3% - 4.8% Adjusted EPS* $12.79 $13.90 - $14.10 8.7% - 10.2% Key Assumptions for FY2024 Guidanc
Slide 14: Appendices
Appendices 13
Slide 15: Reconciliation of Non-GAAP Measures (Adjusted EBITDA)
Reconciliation of Non-GAAP Measures (Adjusted EBITDA) $000 except share and per share data Q3 2023 Q3 2024 Adjusted EBITDA Net income 163,665 197,128 Income tax expense 18,011 37,437 Net interest expense 82,635 50,869 Depreciation and amortization 146,032 93,029 Stock-based compensation expense (a)
Slide 16: Reconciliation of Non-GAAP Measures (Adjusted Net Income & Adjusted EPS)
Reconciliation of Non-GAAP Measures (Adjusted Net Income & Adjusted EPS) $000 except share and per share data Q3 2023 Q3 2024 Adjusted net income and adjusted diluted net income per Ordinary Share Net Income 163,665 197,128 Income tax expense 18,011 37,437 Amortization 114,573 58,026 Stock-based com
Slide 17: Q3 2024 Adjusted Net Income Reconciliation
Q3 2024 Adjusted Net Income Reconciliation Q3 2023 Q3 2024 $000 except share and per share data GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Revenue 2,055,099 - 2,055,099 2,030,030 - 2,030,030 Costs and expenses: Direct costs (excluding depreciation and amortization) (a) 1,449,136 (6,637) 1,4
Slide 18: Reconciliation of Non-GAAP Measures Notes
Reconciliation of Non-GAAP Measures Notes (a) Stock-based compensation expense represents the amount of recurring expense related to the company’s equity compensation programs (inclusive of employer related taxes). (b) Foreign currency losses/(gains), net relates to gains or losses that arise in con
Slide 19: ICONplc.com
ICONplc.com © 2024 ICON. All rights reserved.