IQVIA (IQV) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $3,896 million, up 4.3% year-over-year; adjusted diluted EPS rose 14.1% to $2.84; GAAP net income was $285 million.

• Year-to-date revenue was $11,447 million, up 3.0% year-over-year; operating cash flow for nine months was $1,831 million.

• TAS segment led growth, up 8.6% year-over-year, while R&DS faced a choppy environment with cancellations and trial delays.

• Backlog reached a record $31.1 billion, up 8% year-over-year, with a healthy book-to-bill ratio of 1.22.

• The company continued restructuring and completed several acquisitions, including MCRA, adding $470 million in goodwill.

Financial highlights

• Adjusted EBITDA for Q3 was $939 million, up 5.7% year-over-year; adjusted net income was $523 million.

• Free cash flow for Q3 was $571 million; year-to-date free cash flow was $1,393 million, up 49% year-over-year.

• Cash and cash equivalents at quarter-end were $1,572 million; net debt was $11,940 million.

• Net leverage ratio at quarter-end was 3.27x trailing 12-month adjusted EBITDA.

• Operating margin for Q3 was 14.1%, up from 12.9% in Q3 2023.

Outlook and guidance

• Full-year 2024 revenue expected between $15,350 million and $15,400 million; adjusted EBITDA $3,675–$3,700 million; adjusted diluted EPS $11.10–$11.20.

• Q4 2024 revenue guidance is $3,903–$3,953 million; adjusted EBITDA $987–$1,012 million; adjusted diluted EPS $3.08–$3.18.

• TAS expected to grow ~6% and R&DS ~5% for 2024 at constant currency, excluding COVID impacts; CSMS ~flat.

• Guidance reflects delays in two large trials, now expected to ramp in H2 2025.

• 2025 is expected to see similar mid-single-digit growth, with TAS and R&DS growth rates mirroring 2024.