Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2023 Earnings Presentation
16 slides from Medpace's earnings presentation, Oct 24, 2023
Slide 1: Q3 2023 Financial Results
Q3 2023 FINANCIAL RESULTS OCTOBER 23, 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: Q3 2023 – Key Operating Highlights
Q3 2023 – KEY OPERATING HIGHLIGHTS ($ in millions) Third Quarter Year-to-Date 2023 2022 % Change 2023 2022 % Change Revenue, net $ 492.5 $ 383.7 28.3 % $ 1,387.4 $ 1,065.9 30.2 % Net New Business Awards $ 611.5 $ 470.9 29.9 % $ 1,742.1 $ 1,344.4 29.6 % Net Book-to-Bill (A) 1.24 1.23 n.m. 1.26 1.26 n
Slide 4: Backlog and New Award Trends
BACKLOG AND NEW AWARD TRENDS Net Book-to-Bill Backlog Conversion Rate 19.1% 18.6% 18.7% 1.49x 17.7% 17.6% 1.28x 1.28x 1.28x 1.25x 1.24x 1.23x 1.23x 16.7% 16.8% 16.6% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Net New Business Awards Ending Backlog and Est. NTM Ba
Slide 5: Q3 2023 – Key Financial Highlights
Q3 2023 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Third Quarter Year-to-Date 2023 2022 % Change(C) 2023 2022 % Change(C) Revenue, net $ 492.5 $ 383.7 28.3 % $ 1,387.4 $ 1,065.9 30.2 % EBITDA(A) $ 90.2 $ 89.3 1.0 % $ 266.7 $ 227.7 17.1 % % Margin 18.3 % 23.3 % n.m. 19.2 % 21.4
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $492.5 $460.9 $89.3 $92.8 $90.2 $434.1 $83.6 $383.7 $394.1 $80.4 $330.9 $351.2 $70.4 $68.1 $308.6 $61.4 23.3% 21.3% 20.4% 21.4% 19.9% 19.4% 18.1% 18.3% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue CAGR +28.1% - 29.5% YOY - 2 1 . 8% +21.6% +27.8% YOY +23.4% YOY +22.2% YOY +7.5% YOY Guidance Range $1,460.0 $1,870 - $1,890 $1,142.4 $861.0 $925.9 $704.6 2018 2019 2020 2021 2022 2023 ($ in millions) EBITDA(A) . 7 % CAGR +14.6% - 17.2% YOY +20.2 % - 20 +
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Net Income 4 % CAGR +10.9% - 12.5% YOY - 3 0 . +34.9% YOY +30.0% +25.1% YOY +44.7% YOY Guidance Range +37.2% YOY $245.4 $272 - $276 $181.8 $145.4 $73.2 $100.4 2018 2019 2020 2021 2022 2023 Net Income per diluted share % CA GR +17.3% - 19.0% YOY 3 4 .5 +34.1 %- +5
Slide 9: YTD 2023 – Revenue Composition
YTD 2023 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) (A) OTH Large 21% Mid-sized Top 5 ONC Pharma Biopharma 4% 23% 32% 18% YTD 2023 AVAI Rest of 8% Small Top 10 Biopharma 6% CNS All Other 78% 9% 71% CV MET 10% 20% (A) Top 5 OTH
Slide 10: Q3 2023 – Cash Position
Q3 2023 – CASH POSITION ($ in millions) ($ in millions) Third Quarter Year-to-Date (A) Free Cash Flow and Free Cash Flow Conversion Free Cash Flow 2023 2022 2023 2022 (A) Free Cash Flow Free Cash Flow Conversion % Operating Cash Flow $ 114.4 $ 108.5 $ 277.0 $ 251.4 158.6% (GAAP) 113.5% 117.2% $127.4
Slide 11: Full Year 2023 Guidance
FULL YEAR 2023 GUIDANCE ($ in millions, except per share data) As of July 24, 2023 As of October 23, 2023 Guidance Range Growth Rate Guidance Range Growth Rate Revenue, net $1,840.0 - $1,880.0 26.0% - 28.8% $1,870.0 - $1,890.0 28.1% - 29.5% EBITDA $340.0 - $358.0 10.4% - 16.2% $353.0 - $361.0 14.6%
Slide 12: Full Year 2024 Guidance
FULL YEAR 2024 GUIDANCE ($ in millions, except per share data) As of October 23, 2023 Guidance Range Revenue, net $2,150.0 - $2,200.0 EBITDA $390.0 - $415.0 12 MAKING THE COMPLEX SEAMLESS
Slide 13: Appendix
APPENDIX rest
Slide 14: Q3 2023 – Income Statement
Q3 2023 – INCOME STATEMENT % % Revenue, Revenue, 3Q23 vs. 3Q22 ($ in millions, except per share amounts) 3Q23 net 3Q22 net $ Change % Change Revenue, net $ 492.5 100.0 % $ 383.7 100.0 % $ 108.8 28.3 % Operating Expenses: Direct service costs, excluding depreciation and amortization 164.4 33.4 % 136.
Slide 15: EBITDA Reconciliation
EBITDA RECONCILIATION YTD YTD Last 12 ($ in millions) 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 2022 2023 Months Net income as reported (GAAP) $ 50.0 $ 61.3 $ 49.4 $ 66.0 $ 68.7 $ 72.9 $ 61.1 $ 70.6 $ 176.7 $ 204.5 $ 273.2 Income tax provision 5.9 4.0 12.6 15.9 5.0 13.1 14.7 12.7 32.5 40.5 45.4 Intere
Slide 16: 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) $ 272.0 $ 276.0 $ 8.54 $ 8.66 Income tax provision 53.2 57.2 Interest expense, net 1.2 1.2 Depreciation 24.4 24.4 Amor