IQVIA (IQV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 2.3% year-over-year to $3,814 million, with adjusted EBITDA up 2.7% to $887 million and adjusted diluted EPS rising 8.6% to $2.64; net income was $363 million, up from $297 million in Q2 2023.

• Backlog reached a record $30.6 billion, up 7.7% year-over-year, with R&D Solutions bookings of $2.7 billion and a book-to-bill ratio of 1.27.

• All three segments contributed to revenue growth, with R&D Solutions showing the largest absolute increase.

• Industry fundamentals remain healthy, with gradual improvement in commercial activity and faster decision-making on mission-critical projects.

• The company continues to execute restructuring actions to align resources and integrate acquisitions.

Financial highlights

• Q2 2024 revenue was $3,814 million (+2.3% year-over-year); adjusted EBITDA was $887 million (+2.7%); adjusted diluted EPS was $2.64 (+8.6%).

• Q2 GAAP net income was $363 million; GAAP diluted EPS was $1.97; adjusted net income was $487 million.

• Free cash flow for Q2 was $445 million, with operating cash flow at $588 million.

• Year-to-date revenue was $7,551 million (+2.3% year-over-year); year-to-date adjusted EBITDA was $1,749 million.

• Profit margin expanded, and forward-looking indicators remain healthy.

Outlook and guidance

• Full-year 2024 revenue guidance is $15,425–$15,525 million; adjusted EBITDA $3,705–$3,765 million; adjusted diluted EPS $11.10–$11.30.

• Q3 2024 revenue expected at $3,830–$3,880 million, adjusted EBITDA at $925–$950 million, and adjusted diluted EPS at $2.76–$2.86.

• TAS expected to grow around 5% and R&DS around 7% for the year at constant currency, excluding COVID.

• Management expects continued restructuring actions through 2024 and into 2025 to adapt to market conditions.

• Guidance assumes July 18, 2024 foreign exchange rates remain in effect.