IQVIA Reports Fourth-Quarter and Full-Year 2023 Results; Issues Full-Year 2024 Guidance
-
Revenue of
$3,868 million for the fourth quarter,$14,984 million for the full year -
GAAP Net Income of
$469 million for the fourth quarter,$1,358 million for the full year -
Adjusted EBITDA of
$966 million for the fourth quarter,$3,569 million for the full year -
GAAP Diluted Earnings per Share of
$2.54 for the fourth quarter,$7.29 for the full year -
Adjusted Diluted Earnings per Share of
$2.84 for the fourth quarter,$10.20 for the full year -
R&D Solutions quarterly bookings of over
$2.8 billion , representing book-to-bill ratio of 1.31x -
R&D Solutions contracted backlog of
$29.7 billion grew 9.2 percent year-over-year -
Full-year 2024 revenue guidance of
$15,400 million to$15,650 million , Adjusted EBITDA of$3,700 million to$3,800 million and Adjusted Diluted Earnings per Share of$10.95 to$11.25
Fourth-Quarter 2023 Operating Results
Revenue for the fourth quarter of
As of
"The
Fourth-quarter GAAP Net Income was
Full-Year 2023 Operating Results
Revenue of
For the full year of 2023, GAAP Net Income was
Financial Position
As of
During the fourth quarter, the company refinanced approximately
Share Repurchase
During the fourth quarter of 2023, the company repurchased
Full-Year 2024 Guidance
For the full year of 2024, the company expects revenue to be between
The company expects Adjusted EBITDA to be between
All financial guidance assumes foreign currency exchange rates as of
Webcast & Conference Call Details
About
Cautionary Statements Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, our full-year 2024 guidance. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “assume,” “anticipate,” “intend,” “plan,” “forecast,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from our expectations due to a number of factors, including, but not limited to, the following: business disruptions caused by natural disasters, pandemics such as the COVID-19 (coronavirus) outbreak, including any variants, and the public health policy responses to the outbreak, and international conflicts or other disruptions outside of our control such as the current situation in
Note on Non-GAAP Financial Measures
This release includes information based on financial measures that are not recognized under generally accepted accounting principles in
The non-GAAP financial measures are not presented in accordance with GAAP. Please refer to the schedules attached to this release for reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. Our full-year 2024 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. For the same reasons, the company is unable to address the probable significance of the unavailable information. Such items include, but are not limited to, acquisition related expenses, restructuring and related expenses, stock-based compensation and other items not reflective of the company's ongoing operations.
Non-GAAP measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the company, many of which present non-GAAP measures when reporting their results. Non-GAAP measures have limitations as an analytical tool. They are not presentations made in accordance with GAAP, are not measures of financial condition or liquidity and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. Non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider such performance measures in isolation from, or as a substitute analysis for, the company’s results of operations as determined in accordance with GAAP.
IQVIAFIN
Table 1
CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited) |
|||||||||||||||||
|
|
Three Months Ended
|
|
Twelve Months
|
|||||||||||||
(in millions, except per share data) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Revenues |
|
$ |
3,868 |
|
|
$ |
3,739 |
|
|
$ |
14,984 |
|
|
$ |
14,410 |
|
|
Cost of revenues, exclusive of depreciation and amortization |
|
|
2,478 |
|
|
|
2,407 |
|
|
|
9,745 |
|
|
|
9,382 |
|
|
Selling, general and administrative expenses |
|
|
556 |
|
|
|
583 |
|
|
|
2,053 |
|
|
|
2,071 |
|
|
Depreciation and amortization |
|
|
316 |
|
|
|
357 |
|
|
|
1,125 |
|
|
|
1,130 |
|
|
Restructuring costs |
|
|
17 |
|
|
|
13 |
|
|
|
84 |
|
|
|
28 |
|
|
Income from operations |
|
|
501 |
|
|
|
379 |
|
|
|
1,977 |
|
|
|
1,799 |
|
|
Interest income |
|
|
(12 |
) |
|
|
(6 |
) |
|
|
(36 |
) |
|
|
(13 |
) |
|
Interest expense |
|
|
181 |
|
|
|
128 |
|
|
|
672 |
|
|
|
416 |
|
|
Loss on extinguishment of debt |
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
Other (income) expense, net |
|
|
(47 |
) |
|
|
(18 |
) |
|
|
(124 |
) |
|
|
33 |
|
|
Income before income taxes and equity in (losses) earnings of unconsolidated affiliates |
|
|
373 |
|
|
|
275 |
|
|
|
1,459 |
|
|
|
1,363 |
|
|
Income tax (benefit) expense |
|
|
(102 |
) |
|
|
48 |
|
|
|
101 |
|
|
|
260 |
|
|
Income before equity in (losses) earnings of unconsolidated affiliates |
|
|
475 |
|
|
|
227 |
|
|
|
1,358 |
|
|
|
1,103 |
|
|
Equity in (losses) earnings of unconsolidated affiliates |
|
|
(6 |
) |
|
|
— |
|
|
|
— |
|
|
|
(12 |
) |
|
Net income |
|
$ |
469 |
|
|
$ |
227 |
|
|
$ |
1,358 |
|
|
$ |
1,091 |
|
|
Earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
2.58 |
|
|
$ |
1.22 |
|
|
$ |
7.39 |
|
|
$ |
5.82 |
|
|
Diluted |
|
$ |
2.54 |
|
|
$ |
1.20 |
|
|
$ |
7.29 |
|
|
$ |
5.72 |
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
181.9 |
|
|
|
185.7 |
|
|
|
183.8 |
|
|
|
187.6 |
|
|
Diluted |
|
|
184.3 |
|
|
|
188.6 |
|
|
|
186.3 |
|
|
|
190.6 |
|
|
Table 2
CONSOLIDATED BALANCE SHEETS (preliminary and unaudited) |
||||||||
|
|
|
||||||
(in millions, except per share data) |
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,376 |
|
|
$ |
1,216 |
|
Trade accounts receivable and unbilled services, net |
|
|
3,381 |
|
|
|
2,917 |
|
Prepaid expenses |
|
|
141 |
|
|
|
151 |
|
Income taxes receivable |
|
|
32 |
|
|
|
43 |
|
Investments in debt, equity and other securities |
|
|
120 |
|
|
|
93 |
|
Other current assets and receivables |
|
|
546 |
|
|
|
561 |
|
Total current assets |
|
|
5,596 |
|
|
|
4,981 |
|
Property and equipment, net |
|
|
523 |
|
|
|
532 |
|
Operating lease right-of-use assets |
|
|
296 |
|
|
|
331 |
|
Investments in debt, equity and other securities |
|
|
105 |
|
|
|
68 |
|
Investments in unconsolidated affiliates |
|
|
134 |
|
|
|
94 |
|
|
|
|
14,567 |
|
|
|
13,921 |
|
Other identifiable intangibles, net |
|
|
4,839 |
|
|
|
4,820 |
|
Deferred income taxes |
|
|
166 |
|
|
|
118 |
|
Deposits and other assets, net |
|
|
455 |
|
|
|
472 |
|
Total assets |
|
$ |
26,681 |
|
$ |
25,337 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable and accrued expenses |
|
$ |
3,564 |
|
|
$ |
3,316 |
|
Unearned income |
|
|
1,799 |
|
|
|
1,797 |
|
Income taxes payable |
|
|
116 |
|
|
|
161 |
|
Current portion of long-term debt |
|
|
718 |
|
|
|
152 |
|
Other current liabilities |
|
|
294 |
|
|
|
152 |
|
Total current liabilities |
|
|
6,491 |
|
|
|
5,578 |
|
Long-term debt, less current portion |
|
|
12,955 |
|
|
|
12,595 |
|
Deferred income taxes |
|
|
202 |
|
|
|
464 |
|
Operating lease liabilities |
|
|
223 |
|
|
|
264 |
|
Other liabilities |
|
|
698 |
|
|
|
671 |
|
Total liabilities |
|
|
20,569 |
|
|
|
19,572 |
|
Stockholders’ equity: |
|
|
|
|
||||
Common stock and additional paid-in capital, 400.0 shares authorized as of |
|
|
11,028 |
|
|
|
10,898 |
|
Retained earnings |
|
|
4,692 |
|
|
|
3,334 |
|
|
|
|
(8,741 |
) |
|
|
(7,740 |
) |
Accumulated other comprehensive loss |
|
|
(867 |
) |
|
|
(727 |
) |
Total stockholders’ equity |
|
|
6,112 |
|
|
|
5,765 |
|
Total liabilities and stockholders’ equity |
|
$ |
26,681 |
|
|
$ |
25,337 |
|
Table 3
CONSOLIDATED STATEMENTS OF CASH FLOWS (preliminary and unaudited) |
||||||||
|
|
Year Ended |
||||||
(in millions) |
|
|
2023 |
|
|
|
2022 |
|
Operating activities: |
|
|
|
|
||||
Net income |
|
$ |
1,358 |
|
|
$ |
1,091 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
1,125 |
|
|
|
1,130 |
|
Amortization of debt issuance costs and discount |
|
|
18 |
|
|
|
15 |
|
Stock-based compensation |
|
|
217 |
|
|
|
194 |
|
Gain on disposals of property and equipment, net |
|
|
— |
|
|
|
(10 |
) |
Losses of unconsolidated affiliates |
|
|
— |
|
|
|
12 |
|
(Gain) loss on investments, net |
|
|
(20 |
) |
|
|
27 |
|
Benefit from deferred income taxes |
|
|
(269 |
) |
|
|
(115 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable and unbilled services |
|
|
(388 |
) |
|
|
(421 |
) |
Prepaid expenses and other assets |
|
|
34 |
|
|
|
7 |
|
Accounts payable and accrued expenses |
|
|
267 |
|
|
|
427 |
|
Unearned income |
|
|
(29 |
) |
|
|
31 |
|
Income taxes payable and other liabilities |
|
|
(164 |
) |
|
|
(128 |
) |
Net cash provided by operating activities |
|
|
2,149 |
|
|
|
2,260 |
|
Investing activities: |
|
|
|
|
||||
Acquisition of property, equipment and software |
|
|
(649 |
) |
|
|
(674 |
) |
Acquisition of businesses, net of cash acquired |
|
|
(876 |
) |
|
|
(1,315 |
) |
Purchases of marketable securities, net |
|
|
(6 |
) |
|
|
(5 |
) |
Investments in unconsolidated affiliates, net of payments received |
|
|
(39 |
) |
|
|
(20 |
) |
(Investments in) debt and equity securities |
|
|
(38 |
) |
|
|
— |
|
Other |
|
|
5 |
|
|
|
8 |
|
Net cash used in investing activities |
|
|
(1,603 |
) |
|
|
(2,006 |
) |
Financing activities: |
|
|
|
|
||||
Proceeds from issuance of debt |
|
|
4,000 |
|
|
|
1,250 |
|
Payment of debt issuance costs |
|
|
(50 |
) |
|
|
(5 |
) |
Repayment of debt and principal payments on finance leases |
|
|
(2,873 |
) |
|
|
(634 |
) |
Proceeds from revolving credit facility |
|
|
2,384 |
|
|
|
2,350 |
|
Repayment of revolving credit facility |
|
|
(2,709 |
) |
|
|
(2,025 |
) |
Payments related to employee stock option plans |
|
|
(61 |
) |
|
|
(71 |
) |
Repurchase of common stock |
|
|
(992 |
) |
|
|
(1,168 |
) |
Contingent consideration and deferred purchase price payments |
|
|
(81 |
) |
|
|
(26 |
) |
Net cash used in financing activities |
|
|
(382 |
) |
|
|
(329 |
) |
Effect of foreign currency exchange rate changes on cash |
|
|
(4 |
) |
|
|
(75 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
160 |
|
|
|
(150 |
) |
Cash and cash equivalents at beginning of period |
|
|
1,216 |
|
|
|
1,366 |
|
Cash and cash equivalents at end of period |
|
$ |
1,376 |
|
|
$ |
1,216 |
|
Table 4
NET INCOME TO ADJUSTED EBITDA RECONCILIATION (preliminary and unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|||||||||||
|
|
|
|
|
|
|||||||||||
(in millions) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net Income |
|
$ |
469 |
|
|
$ |
227 |
|
$ |
1,358 |
|
|
$ |
1,091 |
||
(Benefit from) provision for income taxes (1) |
|
|
(102 |
) |
|
|
48 |
|
|
101 |
|
|
|
260 |
||
Depreciation and amortization |
|
|
316 |
|
|
|
357 |
|
|
1,125 |
|
|
|
1,130 |
||
Interest expense, net |
|
|
169 |
|
|
|
122 |
|
|
636 |
|
|
|
403 |
||
Losses of unconsolidated affiliates |
|
|
6 |
|
|
|
— |
|
|
— |
|
|
|
12 |
||
Deferred revenue purchase accounting adjustments |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
1 |
||
Stock-based compensation |
|
|
45 |
|
|
|
58 |
|
|
217 |
|
|
|
194 |
||
Other (income) expense, net (2) |
|
|
(40 |
) |
|
|
53 |
|
|
(132 |
) |
|
|
104 |
||
Loss on extinguishment of debt |
|
|
6 |
|
|
|
— |
|
|
6 |
|
|
|
— |
||
Restructuring and related expenses (3) |
|
|
24 |
|
|
|
26 |
|
|
126 |
|
|
|
73 |
||
Acquisition related expenses |
|
|
73 |
|
|
|
29 |
|
|
132 |
|
|
|
78 |
||
Adjusted EBITDA |
|
$ |
966 |
|
|
$ |
920 |
|
$ |
3,569 |
|
|
$ |
3,346 |
(1) |
Three and Twelve months ended |
|
(2) |
Reflects certain non-operating income items, revaluations of contingent consideration and certain non-recurring expenses. |
|
(3) |
Reflects restructuring costs as well as accelerated expenses related to lease exits. |
Table 5
NET INCOME TO ADJUSTED NET INCOME RECONCILIATION (preliminary and unaudited) |
||||||||||||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
(in millions, except per share data) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net Income |
|
$ |
469 |
|
|
$ |
227 |
|
|
$ |
1,358 |
|
|
$ |
1,091 |
|
(Benefit from) provision for income taxes (1) |
|
|
(102 |
) |
|
|
48 |
|
|
|
101 |
|
|
|
260 |
|
Purchase accounting amortization (2) |
|
|
149 |
|
|
|
149 |
|
|
|
560 |
|
|
|
563 |
|
Losses of unconsolidated affiliates |
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
Deferred revenue purchase accounting adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Stock-based compensation |
|
|
45 |
|
|
|
58 |
|
|
|
217 |
|
|
|
194 |
|
Other (income) expense, net (3) |
|
|
(40 |
) |
|
|
53 |
|
|
|
(132 |
) |
|
|
104 |
|
Loss on extinguishment of debt |
|
|
6 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
Restructuring and related expenses (4) |
|
|
34 |
|
|
|
88 |
|
|
|
136 |
|
|
|
135 |
|
Acquisition related expenses |
|
|
73 |
|
|
|
29 |
|
|
|
132 |
|
|
|
78 |
|
Adjusted Pre Tax Income |
|
$ |
640 |
|
|
$ |
652 |
|
|
$ |
2,378 |
|
|
$ |
2,438 |
|
Adjusted tax expense |
|
|
(117 |
) |
|
|
(128 |
) |
|
|
(477 |
) |
|
|
(501 |
) |
Adjusted Net Income |
|
$ |
523 |
|
|
$ |
524 |
|
|
$ |
1,901 |
|
|
$ |
1,937 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
2.88 |
|
|
$ |
2.82 |
|
|
$ |
10.34 |
|
|
$ |
10.33 |
|
Diluted |
|
$ |
2.84 |
|
|
$ |
2.78 |
|
|
$ |
10.20 |
|
|
$ |
10.16 |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
181.9 |
|
|
|
185.7 |
|
|
|
183.8 |
|
|
|
187.6 |
|
Diluted |
|
|
184.3 |
|
|
|
188.6 |
|
|
|
186.3 |
|
|
|
190.6 |
|
(1) |
Three and Twelve months ended |
|
(2) |
Reflects all the amortization of acquired intangible assets. |
|
(3) |
Reflects certain non-operating income items, revaluations of contingent consideration and certain non-recurring expenses. |
|
(4) |
Reflects restructuring costs as well as accelerated expenses related to lease exits and asset abandonments. |
Table 6
NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION (preliminary and unaudited) |
||||||||
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||
(in millions) |
|
|
2023 |
|
|
|
2023 |
|
|
|
$ |
747 |
|
|
$ |
2,149 |
|
Acquisition of property, equipment and software |
|
|
(179 |
) |
|
|
(649 |
) |
Free Cash Flow |
|
$ |
568 |
|
|
$ |
1,500 |
|
Table 7
CALCULATION OF GROSS AND NET LEVERAGE RATIOS
AS OF (preliminary and unaudited) |
|||
(in millions) |
|
|
|
Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of |
|
$ |
13,673 |
Net Debt as of |
|
$ |
12,297 |
Adjusted EBITDA for the twelve months ended |
|
$ |
3,569 |
Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA) |
|
3.83x |
|
Net Leverage Ratio (Net Debt/LTM Adjusted EBITDA) |
|
3.45x |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240214916660/en/
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