Iqvia Holdings, Inc. · NYSE:IQV
Iqvia — Q4 2022 Earnings Presentation
20 slides from Iqvia's earnings presentation, Feb 10, 2023
Slide 1: Q4 2022 Earnings Call
Q4 2022 Earnings Call February 10, 2023 © 2023. All rights reserved. IQVIA® is a registered trademark of IQVIA Inc. in the United States, the European Union, and various other countries.
Slide 2: Legal: Safe Harbor Statement for Forward-Looking Statements
Legal This presentation should be viewed in conjunction with IQVIA’s Q4 2022 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, and Free Cash Flow. N
Slide 4: 4th Quarter Results
4th Quarter Results $M, except per share data Revenue Adjusted EBITDA(1) Adjusted Diluted EPS(1) 2.8% AFx 11.1% AFx 9.0% AFx 7.0% CFx $3,739 $3,636 $920 $2.78 $828 $2.55 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Dollars are at actual foreign exchange rates. AFx is actual currency. CFx is const
Slide 5: 4th Quarter and Full-Year Revenue
4th Quarter and Full-Year Revenue $M Q4 Full Year VPY% VPY% VPY% VPY% 2022 2021 2022 2021 AFx CFx AFx CFx Technology & Analytics $1,499 $1,496 0.2% 4.7% $5,746 $5,534 3.8% 8.7% Solutions Research & $2,058 $1,944 5.9% 9.3% $7,921 $7,556 4.8% 7.7% Development Solutions Contract Sales & $182 $196 (7.1%
Slide 6: 4th Quarter and Full-Year Profit
4th Quarter and Full-Year Profit $M, except per share data Q4 Full Year 2022 2021 2022 2021 Adjusted EBITDA (1) $920 $828 $3,346 $3,022 Net Income $227 $318 $1,091 $966 Diluted Earnings per Share $1.20 $1.63 $5.72 $4.95 Adjusted Net Income (1) $524 $496 $1,937 $1,760 Adjusted Diluted Earnings $2.78
Slide 7: R&D Solutions Backlog and Net New Business
R&D Solutions Backlog and Net New Business $B Backlog Full Year Net New Business +9.6% AFx $27.2 +6.2% $10.8 +11.6% CFx $10.1 $24.8 Q4 2021 Q4 2022 2021 2022 Dollars are at actual foreign exchange rates. AFx is actual currency. CFx is constant currency. 6
Slide 8: 4th Quarter Balance Sheet and Cash Flow Items and Metrics
4th Quarter Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents $1,216 Gross Debt $12,747 Net Debt $11,531 Gross Leverage Ratio (1) 3.81x Net Leverage Ratio (1) 3.45x Net Cash Provided by Operating Activities $560 Capital Expenditures $171 Free Cash Flow (2) $389 Dollars are at
Slide 9: Vision 2022 Achievement
Vision 22 Achievement Vision 2022 Goal Actual Achievement Metric 2019-2022 2019-2022 Total Company Revenue (CAGR) 7 – 10% 9.1% AFx / 10.2% CFx Adj. EBITDA(1) (CAGR) 8 – 11% 11.7% Adj. Diluted EPS(1) (CAGR) Continued double-digit growth 16.7% Cap Ex/Deferred Software ~5% of revenue 4.7% $1.0 – $1.5B
Slide 10: Full Year 2023 Guidance
Full Year 2023 Guidance $M, except per share data Guidance VPY% +9% to 11% excluding the Revenue $15,150 – $15,400 5.1% – 6.9% impact of FX, acquisitions and COVID-related work Adj. EBITDA $3,625 – $3,695 8.3% – 10.4% Adj. Diluted EPS $10.26 – $10.56 1.0% – 3.9%(1) (1) Adjusted Diluted EPS growth wo
Slide 11: 2022 – 2023 Revenue Dynamics
2022 – 2023 Revenue Dynamics $B $15.15 - $15.4 ~10 bps ~100 bps $14.4 +9-11% $0.6B 2022 COVID Underlying Acquisitions F/X 2023 Guidance Stepdown Organic Growth(1) (1) Underlying Organic Growth excludes the impact of FX, acquisitions and COVID-related work All financial guidance assumes February 8th
Slide 12: Full Year 2023 Segment Revenue Guidance
Full Year 2023 Segment Revenue Guidance Underlying VPY% Organic(1) TAS 6% to 8% 7% to 9% R&DS 5% to 7% 10% to 12% CSMS ~Flat ~2% Total IQVIA 5% to 7% 9% to 11% (1) Underlying Organic Growth excludes the impact of FX, acquisitions and COVID-related work All financial guidance assumes February 8th for
Slide 13: 2022 – 2023 Adjusted Diluted EPS Dynamics
2022 – 2023 Adjusted Diluted EPS Dynamics $, Earnings per Share 10.26 - 10.56 10.16 +11-14% (~10%) 2022 Interest Expense Operational 2023 Guidance and UK Tax Rate 12
Slide 14: Q1 2023 Guidance
Q1 2023 Guidance Largest headwind from foreign exchange Largest YoY COVID step-down Toughest interest expense comparison Phase-in of the benefits of productivity initiatives 13
Slide 15: Q1 2023 Guidance
Q1 2023 Guidance $M, except per share data Guidance VPY% +9% to 11% excluding the Revenue $3,570 – $3,640 0.1% – 2.0% impact of FX, acquisitions and COVID-related work Adj. EBITDA $835 – $860 2.8% – 5.9% Adj. Diluted EPS $2.35 – $2.46 (4.9%) – (0.4%) (1) (1) Adjusted Diluted EPS growth would be 6 to
Slide 16: Q&A
Q&A 15
Slide 17: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation 16
Slide 18: Net Income to Adj. Net Income and Per Share Data Reconciliation
Net Income to Adj. Net Income and Per Share Data Reconciliation 17
Slide 19: Operating Cash Flow to Free Cash Flow Reconciliation
Operating Cash Flow to Free Cash Flow Reconciliation 18
Slide 20: Leverage Ratios
Leverage Ratios (in millions) Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of December 31, 2022 $ 12,747 Net Debt as of December 31, 2022 $ 11,531 Adjusted EBITDA for the twelve months ended December 31, 2022 $ 3,346 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 3.81x