Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q2 2023 Earnings Presentation
15 slides from Medpace's earnings presentation, Jul 25, 2023
Slide 1: Q2 2023 Financial Results
Q2 2023 FINANCIAL RESULTS JULY 24, 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: Q2 2023 – Key Operating Highlights
Q2 2023 – KEY OPERATING HIGHLIGHTS ($ in millions) Second Quarter Year-to-Date 2023 2022 % Change 2023 2022 % Change Revenue, net $ 460.9 $ 351.2 31.2 % $ 894.9 $ 682.2 31.2 % Net New Business Awards $ 574.8 $ 450.6 27.6 % $ 1,130.6 $ 873.6 29.4 % Net Book-to-Bill (A) 1.25 1.28 n.m. 1.26 1.28 n.m. N
Slide 4: Backlog and New Award Trends
BACKLOG AND NEW AWARD TRENDS Net Book-to-Bill Backlog Conversion Rate 18.6% 18.7% 1.49x 1.38x 17.7% 17.6% 1.28x 1.28x 1.28x 1.25x 1.23x 1.23x 17.0% 16.7% 16.8% 16.6% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 Net New Business Awards Ending Backlog and Est. NTM Ba
Slide 5: Q2 2023 – Key Financial Highlights
Q2 2023 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Second Quarter Year-to-Date 2023 2022 % Change(C) 2023 2022 % Change(C) Revenue, net $ 460.9 $ 351.2 31.2 % $ 894.9 $ 682.2 31.2 % EBITDA(A) $ 83.6 $ 68.1 22.8 % $ 176.5 $ 138.5 27.4 % % Margin 18.1 % 19.4 % n.m. 19.7 % 20.3 %
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $460.9 $89.3 $92.8 $434.1 $83.6 $383.7 $394.1 $80.4 $330.9 $351.2 $70.4 $68.1 $295.6 $308.6 $60.1 $61.4 23.3% 20.3% 21.3% 20.4% 21.4% 19.9% 19.4% 18.1% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue CAGR +26.0% - 28.8% YOY - 2 1 . 7% +21.2% +27.8% YOY +23.4% YOY +22.2% YOY +7.5% YOY Guidance Range $1,460.0 $1,840 - $1,880 $1,142.4 $861.0 $925.9 $704.6 2018 2019 2020 2021 2022 2023 ($ in millions) EBITDA(A) . 5 % CAGR +10.4% - 16.2% YOY +19.3 % - 20 +
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Net Income 9 % CAGR +4.3% - 10.4% YOY - 2 9 . +34.9% YOY +28.5% +25.1% YOY +44.7% YOY Guidance Range +37.2% YOY $245.4 $256 - $271 $181.8 $145.4 $73.2 $100.4 2018 2019 2020 2021 2022 2023 Net Income per diluted share % CA GR +10.4% - 16.8% YOY 3 4 .0 +32.5 %- +51
Slide 9: YTD 2023 – Revenue Composition
YTD 2023 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) (A) OTH Large 21% Mid-sized Pharma Top 5 ONC 23% Biopharma 4% 32% 17% YTD 2023 AVAI Rest of 8% Small Top 10 Biopharma All Other 7% CNS 79% 9% 70% CV MET 11% 19% (A) Top 5 OTH
Slide 10: Q2 2023 – Cash Position
Q2 2023 – CASH POSITION ($ in millions) ($ in millions) Second 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 $ 82.5 $ 96.6 $ 162.6 $ 142.9 158.6% (GAAP) 125.4% 113.5% $127.4
Slide 11: Full Year 2023 Guidance
FULL YEAR 2023 GUIDANCE ($ in millions, except per share data) As of April 24, 2023 As of July 24, 2023 Guidance Range Growth Rate Guidance Range Growth Rate Revenue, net $1,745.0 - $1,805.0 19.5% - 23.6% $1,840.0 - $1,880.0 26.0% - 28.8% EBITDA $335.0 - $355.0 8.7% - 15.2% $340.0 - $358.0 10.4% - 1
Slide 12: Appendix
APPENDIX rest
Slide 13: Q2 2023 – Income Statement
Q2 2023 – INCOME STATEMENT % % Revenue, Revenue, 2Q23 vs. 2Q22 ($ in millions, except per share amounts) 2Q23 net 2Q22 net $ Change % Change Revenue, net $ 460.9 100.0 % $ 351.2 100.0 % $ 109.7 31.2 % Operating Expenses: Direct service costs, excluding depreciation and amortization 158.5 34.4 % 132.
Slide 14: EBITDA Reconciliation
EBITDA RECONCILIATION YTD YTD Last 12 ($ in millions) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 2022 2023 Months Net income as reported (GAAP) $ 48.6 $ 50.0 $ 61.3 $ 49.4 $ 66.0 $ 68.7 $ 72.9 $ 61.1 $ 110.7 $ 134.0 $ 268.6 Income tax provision 6.2 5.9 4.0 12.6 15.9 5.0 13.1 14.7 16.7 27.8 48.7 Interes
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) $ 256.0 $ 271.0 $ 8.04 $ 8.50 Income tax provision 56.0 59.0 Interest expense, net 1.4 1.4 Depreciation 24.4 24.4 Amor