IQVIA(IQV)2025-05-06 20:40Financial Performance - Revenues for Q1 2025 increased by $92 million, or 2.5%, to $3,829 million compared to Q1 2024, driven by a constant currency revenue growth of approximately $129 million, or 3.5%[89] - Total revenues for the first quarter of 2025 were $3,829 million, an increase of $92 million, or 2.5%, compared to $3,737 million in the same period of 2024[99] - Income from operations for Q1 2025 was $558 million, while net income was $173 million[136] Cost and Expenses - Cost of revenues, exclusive of depreciation and amortization, rose by $87 million to $2,531 million, representing 66.1% of revenues, compared to 65.4% in Q1 2024[90] - Selling, general and administrative expenses remained consistent at $508 million, accounting for 13.3% of revenues, a slight decrease from 13.6% in Q1 2024[91] - The company reported a constant currency increase in cost of revenues of approximately $137 million, or 5.6%, for Q1 2025[90] - Restructuring costs increased to $29 million in Q1 2025 from $15 million in Q1 2024, aimed at streamlining global operations and integrating acquisitions[93] Segment Performance - Technology & Analytics Solutions contributed a $110 million increase in revenues, while Contract Sales & Medical Solutions saw a $4 million decrease[89] - Technology & Analytics Solutions segment revenues increased by $93 million, or 6.4%, to $1,546 million, driven by constant currency growth of approximately $110 million, or 7.6%[101] - Research & Development Solutions segment revenues were $2,102 million, a slight increase of $7 million, or 0.3%, with a constant currency growth of approximately $23 million, or 1.1%[108] - Contract Sales & Medical Solutions segment revenues decreased by $8 million, or 4.2%, to $181 million, primarily due to volume-related decreases in services performed[114] - The total segment profit for the first quarter of 2025 was $496 million, compared to $506 million in the same period of 2024[99] - Research & Development Solutions' contracted backlog increased from $31.1 billion to $31.5 billion, with an expected revenue conversion of approximately $7.9 billion in the next twelve months[107] Tax and Equity - The effective income tax rate for Q1 2025 was 18.9%, up from 14.4% in Q1 2024, influenced by changes in the geographical mix of earnings[96] - Equity in losses of unconsolidated affiliates increased to $13 million in Q1 2025 from $3 million in Q1 2024, reflecting operational results of unconsolidated affiliates[98] Cash Flow and Financing - Cash balance as of March 31, 2025, was $1,740 million, an increase from $1,702 million as of December 31, 2024[119] - Net cash provided by operating activities increased by $46 million to $568 million in the first quarter of 2025, driven by increases in cash from accounts receivable and unbilled services[127] - The company repurchased 2.3 million shares for $425 million under its equity repurchase program, with remaining authorization to repurchase up to $2,588 million[122] - Net cash used in financing activities increased by $152 million to $(258) million in Q1 2025 compared to $(106) million in Q1 2024, primarily due to higher cash payments on debt and stock repurchases[129] - Cash payments for debt and principal payments on finance leases totaled $2,053 million in Q1 2025[129] Indebtedness and Assets - Total indebtedness as of March 31, 2025, was $14,389 million, with $895 million of additional available borrowings under the revolving credit facility[123] - Total current assets decreased from $935 million as of December 31, 2024, to $629 million as of March 31, 2025[136] - Total current liabilities slightly increased from $3,792 million as of December 31, 2024, to $3,809 million as of March 31, 2025[136] - Total noncurrent liabilities increased from $12,333 million as of December 31, 2024, to $12,626 million as of March 31, 2025[136] - Amounts due from non-Guarantor subsidiaries decreased from $4,952 million to $3,718 million from December 31, 2024, to March 31, 2025[136] Debt Issuance - The company issued $1,250 million in 6.250% senior secured notes due 2029 and $750 million in 5.700% senior secured notes due 2028, raising a total of $2,000 million in gross proceeds[130] Currency Impact - Approximately 30% of revenues in Q1 2025 were denominated in currencies other than the US dollar, impacting financial results due to foreign currency fluctuations[87] Corporate Governance - The company reported no material changes to its critical accounting policies or market risk disclosures compared to the previous year[139][140] AI Commitment - The company is committed to using AI responsibly, with a focus on privacy, regulatory compliance, and patient safety in its service offerings[82]