Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q4 2023 Earnings Presentation
15 slides from Medpace's earnings presentation, Feb 13, 2024
Slide 1: Q4 2023 Financial Results
Q4 2023 FINANCIAL RESULTS FEBRUARY 12, 2024
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: Q4 2023 – Key Operating Highlights
Q4 2023 – KEY OPERATING HIGHLIGHTS ($ in millions) Fourth Quarter Full Year 2023 2022 % Change 2023 2022 % Change Revenue, net $ 498.4 $ 394.1 26.5 % $ 1,885.8 $ 1,460.0 29.2 % Net New Business Awards $ 614.7 $ 485.1 26.7 % $ 2,356.7 $ 1,829.5 28.8 % Net Book-to-Bill (A) 1.23 1.23 n.m. 1.25 1.25 n.m
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% 18.5% 1.28x 1.28x 1.28x 17.7% 17.6% 1.25x 1.24x 1.23x 1.23x 1.23x 16.8% 16.6% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Net New Business Awards Ending Backlog and Est. NTM Ba
Slide 5: Q4 2023 – Key Financial Highlights
Q4 2023 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Fourth Quarter Full Year 2023 2022 % Change(C) 2023 2022 % Change(C) Revenue, net $ 498.4 $ 394.1 26.5 % $ 1,885.8 $ 1,460.0 29.2 % EBITDA(A) $ 95.8 $ 80.4 19.2 % $ 362.5 $ 308.1 17.7 % % Margin 19.2 % 20.4 % n.m. 19.2 % 21.1
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $92.8 $95.8 $492.5 $498.4 $89.3 $90.2 $460.9 $80.4 $83.6 $434.1 $383.7 $394.1 $70.4 $68.1 $330.9 $351.2 23.3% 21.3% 20.4% 21.4% 19.4% 18.3% 19.2% 18.1% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue CAGR +14.0% - 16.7% YOY -2 0 . 9 % +29.2% YOY +20.4% +27.8% YOY +23.4% YOY +7.5% YOY Guidance Range +22.2% YOY $1,885.8 $2,150 - $2,200 $1,460.0 $1,142.4 $861.0 $925.9 $704.6 2018 2019 2020 2021 2022 2023 2024 ($ in millions) EBITDA(A) A GR +10.3% - 18.6%
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Net Income CAG R +15.3% - 23.1% YOY 9. 7 % +28. 3% - 2 +15.3% YOY +34.9% YOY +25.1% YOY +44.7% YOY Guidance Range $282.8 $326 - $348 +37.2% YOY $245.4 $181.8 $145.4 $73.2 $100.4 2018 2019 2020 2021 2022 2023 2024 Net Income per diluted share +14.6% - 22.4% YOY %
Slide 9: 2023 – Revenue Composition
2023 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) (A) OTH Large Mid-sized Top 5 22% ONC Pharma Biopharma 4% 23% 31% 18% 2023 CNS Rest of Small Top 10 8% Biopharma 7% AVAI All Other 78% 70% 9% CV MET 10% 20% (A) Top 5 OTH 20% Lar
Slide 10: Q4 2023 – Cash Position
Q4 2023 – CASH POSITION ($ in millions) ($ in millions) Fourth Quarter Full Year (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 158.6% $ 156.4 $ 136.7 $ 433.4 $ 388.1 152.8% (GAAP) 117.2% $146.4 $
Slide 11: Full Year 2024 Guidance
FULL YEAR 2024 GUIDANCE ($ in millions, except per share data) As of February 12, 2024 Guidance Range Growth Rate Revenue, net $2,150.0 - $2,200.0 14.0% - 16.7% EBITDA $400.0 - $430.0 10.3% - 18.6% Net Income $326.0 - $348.0 15.3% - 23.1% Net Income per diluted share $10.18 - $10.87 14.6% - 22.4% No
Slide 12: Appendix
APPENDIX rest
Slide 13: Q4 2023 – Income Statement
Q4 2023 – INCOME STATEMENT % % Revenue, Revenue, 4Q23 vs. 4Q22 ($ in millions, except per share amounts) 4Q23 net 4Q22 net $ Change % Change Revenue, net $ 498.4 100.0 % $ 394.1 100.0 % $ 104.3 26.5 % Operating Expenses: Direct service costs, excluding depreciation and amortization 164.3 33.0 % 140.
Slide 14: EBITDA Reconciliation
EBITDA RECONCILIATION ($ in millions) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Net income as reported (GAAP) $ 61.3 $ 49.4 $ 66.0 $ 68.7 $ 72.9 $ 61.1 $ 70.6 $ 78.3 Income tax provision 4.0 12.6 15.9 5.0 13.1 14.7 12.7 12.4 Interest (income) expense, net (0.1) 0.5 1.6 0.8 0.9 1.4 0.1 (1.8) Depreciati
Slide 15: FY2024 Guidance Reconciliation
FY2024 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) $ 326.0 $ 348.0 $ 10.18 $ 10.87 Income tax provision 62.4 70.4 Interest income, net (18.4) (18.4) Depreciation 28.6 28