IQVIA(IQV)2023-11-01 20:29Revenue Performance - For Q3 2023, total revenues increased by $174 million, or 4.9%, to $3,736 million compared to Q3 2022, driven by a $126 million increase in Research & Development Solutions[90]. - For the first nine months of 2023, total revenues rose by $445 million, or 4.2%, to $11,116 million compared to the same period in 2022, with a $400 million increase in Research & Development Solutions[91]. - For the three months ended September 30, 2023, consolidated revenues increased to $3,736 million, up 4.9% from $3,562 million in the same period of 2022[105]. - For the nine months ended September 30, 2023, consolidated revenues reached $11,116 million, a 4.2% increase from $10,671 million in the same period of 2022[106]. - Research & Development Solutions' revenues for the third quarter of 2023 were $2,122 million, an increase of $143 million, or 7.2%, compared to $1,979 million in the same period of 2022[119]. - Technology & Analytics Solutions' revenues for the third quarter of 2023 were $1,431 million, an increase of $31 million, or 2.2%, from $1,400 million in the same period of 2022[108]. - Contract Sales & Medical Solutions' revenues for Q3 2023 were $183 million, consistent with Q3 2022, with a constant currency revenue growth of approximately $9 million, or 4.9%[128]. - For the first nine months of 2023, revenues were $541 million, a decrease of $20 million, or 3.6%, compared to the same period in 2022, despite a constant currency revenue growth of approximately $7 million, or 1.2%[128]. Cost and Expenses - Cost of revenues for Q3 2023 was $2,426 million, representing 64.9% of revenues, a slight decrease from 65.2% in Q3 2022[92]. - Selling, general and administrative expenses for Q3 2023 decreased by $15 million to $502 million, or 13.4% of revenues, compared to 14.5% in Q3 2022[94]. - Restructuring costs for Q3 2023 were $30 million, up from $4 million in Q3 2022, as the company continues to streamline operations[98]. - Technology & Analytics Solutions' cost of revenues increased by $31 million, or 3.7%, in the third quarter of 2023 compared to the same period in 2022[111]. - Research & Development Solutions' selling, general and administrative expenses increased by $18 million, or 9.0%, in the third quarter of 2023 compared to the same period in 2022[125]. - Cost of revenues, exclusive of depreciation and amortization, decreased by $1 million, or 0.6%, in Q3 2023 compared to Q3 2022, with a constant currency increase of approximately $1 million, or 0.6%[129]. - Selling, general and administrative expenses decreased by $3 million, or 17.6%, in Q3 2023 compared to Q3 2022, with a constant currency decrease of approximately $2 million, or 11.8%[131]. Financial Position - Cash balance as of September 30, 2023, was $1,224 million, an increase from $1,216 million as of December 31, 2022[135]. - Net cash provided by operating activities decreased by $298 million to $1,402 million in the first nine months of 2023 compared to $1,700 million in the same period in 2022[144]. - Net cash used in investing activities decreased by $138 million to $(1,391) million in the first nine months of 2023 compared to $(1,529) million in the same period in 2022[145]. - As of September 30, 2023, total indebtedness was $13,689 million, excluding $1,745 million of additional available borrowings under the revolving credit facility[139]. - During the nine months ended September 30, 2023, the company repurchased 3.9 million shares for $763 million under the equity repurchase program[138]. Tax and Other Financial Metrics - The effective income tax rate for the third quarter of 2023 was 14.6%, down from 19.4% in the same period of 2022, influenced by a $21 million reversal of uncertain tax positions[103]. - The company expects to reverse the valuation allowance related to foreign tax credits, potentially creating a material discrete tax benefit in the near term[104]. Backlog and Future Expectations - Research & Development Solutions' contracted backlog increased from $27.2 billion as of December 31, 2022, to $28.8 billion as of September 30, 2023, with an expected revenue conversion of approximately $7.4 billion in the next twelve months[118]. - The company anticipates ongoing restructuring actions throughout 2023 and into 2024 to adapt to changing market conditions and integrate acquisitions[98]. - Interest expense for Q3 2023 increased to $181 million from $108 million in Q3 2022, primarily due to higher base rate interest costs[99]. - Depreciation and amortization for Q3 2023 increased by $49 million to $297 million, representing 7.9% of revenues, compared to 7.0% in Q3 2022[96].