Iqvia Holdings, Inc. · NYSE:IQV
Iqvia — Q2 2023 Earnings Presentation
15 slides from Iqvia's earnings presentation, Aug 1, 2023
Slide 1: Q2 2023 Earnings Call
Q2 2023 Earnings Call August 1, 2023 1
Slide 2: Legal: Safe Harbor Statement
Legal This presentation should be viewed in conjunction with IQVIA’s Q2 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: 2nd Quarter Results
2nd Quarter Results $M, except per share data Revenue Adjusted EBITDA(1) Adjusted Diluted EPS(1) 5.3% AFx 5.5% CFx 8.0% AFx (0.4)% AFx $3,728 $3,541 $864 $800 $2.43 $2.44 Dollars are at actual foreign exchange rates. AFx is actual currency. CFx is constant currency. (1) See reconciliation of non-GAA
Slide 5: 2nd Quarter and Year-to-Date Revenue
2nd Quarter and Year-to-Date Revenue $M Q2 YTD 2023 2022 VPY% VPY% 2023 2022 VPY% VPY% AFx CFx AFx CFx Technology & Analytics $1,456 $1,408 3.4% 3.4% $2,900 $2,847 1.9% 3.2% Solutions Research & Development $2,096 $1,950 7.5% 7.6% $4,122 $3,884 6.1% 7.1% Solutions Contract Sales & Medical $176 $183
Slide 6: 2nd Quarter and Year-to-Date Profit
2nd Quarter and Year-to-Date Profit $M, except per share data Q2 YTD 2023 2022 2023 2022 Adjusted EBITDA (1) $864 $800 $1,715 $1,612 Net Income $297 $256 $586 $581 Diluted Earnings per Share $1.59 $1.34 $3.12 $3.02 Adjusted Net Income (1) $454 $466 $916 $943 Adjusted Diluted Earnings per $2.43 $2.44
Slide 7: R&D Solutions Backlog
R&D Solutions Backlog $B Up 39% since Q2 2020 Up 11% vs PY Dollars are at actual foreign exchange rates. 7
Slide 8: 2nd Quarter Balance Sheet and Cash Flow Items and Metrics
2nd Quarter Balance Sheet and Cash Flow Items and Metrics $M Cash & Cash Equivalents $1,382 Gross Debt $13,777 Net Debt $12,395 Gross Leverage Ratio (1) 3.99x Net Leverage Ratio (1) 3.59x Net Cash Provided by Operating Activities $402 Capital Expenditures $160 Free Cash Flow (2) $242 Dollars are at
Slide 9: Full Year 2023 Guidance
Full Year 2023 Guidance $M, except per share data Guidance VPY% +8% to 9% excluding the Revenue $15,050 – $15,175 4.4% – 5.3% impact of FX, acquisitions and COVID-related work Adj. EBITDA $3,600 – $3,635 7.6% – 8.6% Adj. Diluted EPS $10.20 – $10.45 0.4% – 2.9%(1) (1) Adjusted Diluted EPS is expected
Slide 10: Q3 2023 Guidance
Q3 2023 Guidance $M, except per share data Guidance VPY% +7% to 8% excluding the Revenue $3,760 – $3,810 5.6% – 7.0% impact of FX, acquisitions and COVID-related work Adj. EBITDA $880 – $895 8.1% – 10.0% Adj. Diluted EPS $2.39 – $2.49 (3.6)% – 0.4% (1) (1) Adjusted Diluted EPS is expected to grow 11
Slide 11: Q&A
Q&A 11
Slide 12: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Net Income $ 297 $ 256 $ 586 $ 581 Provision for income taxes 81 71 152 142 Depreciation and amortization 259 270 512 525 Interest expense, net 165 92 300 177 (Income)
Slide 13: 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 June 30, Six Months Ended June 30, (in millions, except per share data) 2023 2022 2023 2022 Net Income $ 297 $ 256 $ 586 $ 581 Provision for income taxes 81 71 152 142 Purchase accounting amortization (1) 132 152 255
Slide 14: Operating Cash Flow to Free Cash Flow Reconciliation
Operating Cash Flow to Free Cash Flow Reconciliation Three Months Ended Six Months Ended June 30, June 30, (in millions, except per share data) 2023 2023 Net Cash provided by Operating Activities $ 402 $ 819 Acquisition of property, equipment and software (160) (324) Free Cash Flow $ 242 $ 495 14
Slide 15: Leverage Ratios
Leverage Ratios (in millions) Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of June 30, 2023 $ 13,777 Net Debt as of June 30, 2023 $ 12,395 Adjusted EBITDA for the twelve months ended June 30, 2023 $ 3,449 Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) 3.99x Net Leverage