Medpace Holdings, Inc. · NASDAQ:MEDP
Medpace — Q3 2022 Earnings Presentation
16 slides from Medpace's earnings presentation, Oct 24, 2022
Slide 1: Q3 2022 Financial Results
Q3 2022 FINANCIAL RESULTS OCTOBER 24, 2022
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 2022 – Key Operating Highlights
Q3 2022 – KEY OPERATING HIGHLIGHTS ($ in millions) Third Quarter Year-to-Date 2022 2021 % Change 2022 2021 % Change Revenue, net $ 383.7 $ 295.6 29.8% $ 1,065.9 $ 833.8 27.8% Net New Business Awards 470.9 408.0 15.4% 1,344.4 1,151.7 16.7% Net Book-to-Bill (A) 1.23 1.38 n.m. 1.26 1.38 n.m. Net Book-t
Slide 4: Backlog and New Award Trends
BACKLOG AND NEW AWARD TRENDS Net Book-to-Bill Backlog Conversion Rate 1.49x 18.1% 1.38x 1.37x 1.39x 1.38x 17.7% 1.28x 1.28x 1.23x 16.9% 17.1% 17.0% 16.7% 16.6% 16.8% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Net New Business Awards Ending Backlog and Est. NTM Ba
Slide 5: Q3 2022 – Key Financial Highlights
Q3 2022 – KEY FINANCIAL HIGHLIGHTS ($ in millions, except per share data) Third Quarter Year-to-Date 2022 2021 % Change(C) 2022 2021 % Change(C) Revenue, net $ 383.7 $ 295.6 29.8% $ 1,065.9 $ 833.8 27.8% EBITDA(A) 89.3 60.1 48.5% 227.7 161.7 40.9% % Margin 23.3% 20.3% n.m. 21.4% 19.4% n.m. Net Incom
Slide 6: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) ($ in millions) Revenue, net EBITDA(A) $383.7 $89.3 $351.2 $330.9 $70.4 $308.6 $68.1 $295.6 $60.2 $60.1 $61.4 $278.3 $53.6 $259.7 $260.0 23.2% $47.9 23.3% 20.6% 21.3% 20.3% 19.9% 19.4% 17.2% 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q
Slide 7: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Revenue +26.1% - 27.8% YOY +23.4% YOY +22.2% YOY +7.5% YOY Guidance Range $1,142.4 $1,440 - $1,460 $861.0 $925.9 $704.6 2018 2019 2020 2021 2022 ($ in millions) EBITDA(A) +35.4% - 39.0% YOY +18.8% YOY +25.5% YOY +6.2% YOY Guidance Range $302 - $310 $223.1 $187.8
Slide 8: Key Financial Trends
KEY FINANCIAL TRENDS ($ in millions) Net Income +27.6% - 29.8% YOY +25.1% YOY +44.7% YOY +37.2% YOY Guidance Range $181.8 $232 - $236 $145.4 $100.4 $73.2 2018 2019 2020 2021 2022 Net Income per diluted share +43.0% - 45.5% YOY +25.3% YOY +43.8% YOY Guidance Range +35.5% YOY $6.88 - $7.00 $4.81 $3.84
Slide 9: YTD 2022 – Revenue Composition
YTD 2022 – REVENUE COMPOSITION Therapeutic Area Customer Tier Top 10 Customer Concentration Concentration(B) Concentration(C) OTH (A) Large Top 5 21% Pharma 17% ONC Mid-Sized 32% 7% Rest of Biopharma Top 10 YTD 2022 16% 8% AVAI 8% Small Biopharma CNS 77% 11% All Other MET 75% CV 16% 12% (A) Large To
Slide 10: Q3 2022 – Cash Position
Q3 2022 – CASH POSITION ($ in millions) ($ in millions) Third Quarter Year-to-Date Free Cash Flow and Free Cash Flow Conversion(A) Free Cash Flow 2022 2021 2022 2021 (A) Free Cash Flow Free Cash Flow Conversion % Operating Cash Flow $ 108.5 $ 72.4 $ 251.4 $ 192.4 150 125.4% 113.5% (GAAP) 109.3% 100.
Slide 11: Full Year 2022 Guidance
FULL YEAR 2022 GUIDANCE ($ in millions, except per share data) Previous Guidance Current Guidance (July 25, 2022) (October 24, 2022) Guidance Range Growth Rate Guidance Range Growth Rate Revenue, net $1,405.0 - $1,435.0 23.0% - 25.6% $1,440.0 - $1,460.0 26.1% - 27.8% EBITDA $268.0 - $280.0 20.1% - 2
Slide 12: Full Year 2023 Guidance
FULL YEAR 2023 GUIDANCE ($ in millions) As of October 24, 2022 Guidance Range Revenue, net $1,680.0 - $1,740.0 EBITDA $325.0 - $350.0 12 MAKING THE COMPLEX SEAMLESS
Slide 13: Appendix
APPENDIX Niet
Slide 14: Q3 2022 – Income Statement
Q3 2022 – INCOME STATEMENT % Revenue, % Revenue, 3Q22 vs. 3Q21 ($ in millions, except per share amounts) 3Q22 net 3Q21 net $ Change % Change Revenue, net $ 383.7 100.0% $ 295.6 100.0% 88.2 29.8% Operating Expenses: Direct service costs, excluding depreciation and amortization 136.6 35.6% 112.5 38.1%
Slide 15: EBITDA Reconciliation
EBITDA RECONCILIATION YTD YTD Last 12 ($ in millions) 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2021 2022 Months Net income as reported (GAAP) $ 50.9 $ 43.3 $ 39.9 $ 48.6 $ 50.0 $ 61.3 $ 49.4 $ 66.0 $ 131.8 $ 176.7 $ 226.7 Income tax provision 3.8 5.2 2.8 6.2 5.9 4.0 12.6 15.9 14.1 32.5 38.4 Interest
Slide 16: FY2022 Guidance Reconciliation
FY2022 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) $ 232.0 $ 236.0 $ 6.88 $ 7.00 Income tax provision 44.3 48.3 Interest expense, net 3.3 3.3 Depreciation 19.0 19.0 Amor