IQVIA(US:IQV)2021-10-21 18:45Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $3.391 billion, growing 21.7% on a reported basis and 21.1% at constant currency, with year-to-date revenue at $10.238 billion, growing 27% reported and 25% at constant currency [31][14] - Adjusted EBITDA for Q3 was $728 million, up 20.5%, with year-to-date adjusted EBITDA at $2.194 billion, growing 33.1% year-over-year [34] - Adjusted diluted EPS for Q3 was $2.17, growing 33.1%, with year-to-date adjusted net income at $1.264 billion or $6.48 per share [34][15] - The company raised its full-year 2021 revenue guidance by $188 million, now expecting revenue between $13.775 billion and $13.850 billion, representing year-over-year growth of 21.3% to 21.9% [38] Business Line Data and Key Metrics Changes - Technology & Analytics Solutions revenue for Q3 was $1.337 billion, up 10.8% reported and 9.9% at constant currency, with year-to-date revenue at $4.38 billion, up 17.6% reported and 14.9% at constant currency [31] - R&D Solutions revenue for Q3 was $1.853 billion, up 32.4% at actual FX rates and 31.9% at constant currency, with year-to-date revenue at $5.612 billion, up 37.7% reported and 36.2% at constant currency [32] - Contract sales in Medical Solutions revenue for Q3 was $201 million, up 12.3% reported and 12.8% at constant currency, with year-to-date revenue at $588 million, growing 6.5% reported and 5.1% at constant currency [33] Market Data and Key Metrics Changes - The pipeline of late-stage molecules is at an all-time high with almost 3,000 molecules in active Phase II or Phase III development [12] - Clinical trial starts are trending well ahead of recent years, with year-to-date starts up 23% over 2020 and 13% over 2019 [12] - New drug approvals by the FDA are keeping pace with historically high levels, with 40 new drugs approved year-to-date [12] Company Strategy and Development Direction - The company is focusing on expanding its lab capabilities, recently opening a new 160,000 square foot innovation laboratory in North Carolina [27] - The company is investing in decentralized trials (DCT) and has developed innovative clinical patient engagement offerings to improve recruitment and diversity in clinical trials [21][24] - The company plans to provide financial guidance for 2022 at the upcoming analyst and investor conference on November 16 [13] Management's Comments on Operating Environment and Future Outlook - Management remains bullish on the outlook for end markets and the company, citing strong dynamics in the life sciences industry [12] - The company has learned to manage disruptions caused by COVID-19, and the operational impact has been minimal [10] - Management acknowledged challenges in the labor market but noted that margin expansion has continued despite cost pressures [50] Other Important Information - The company reported a net leverage ratio of 3.65x trailing 12-month adjusted EBITDA as of September 30 [36] - Free cash flow for the year-to-date was almost $1.8 billion, showing a strong improvement trend over the past three years [37] Q&A Session Summary Question: Operational implications of DCT and OCT offerings - Management noted that DCT increases productivity and reduces labor, enabling more efficient execution of trials [47] Question: Impact of labor market on EBITDA margins - Management confirmed that the tight labor market is a headwind for margins, but productivity measures have helped offset this [50] Question: M&A spend in the quarter - Management indicated that M&A contributions were minimal in Q3, with a larger impact expected in Q4 [54] Question: COVID contributions to revenue and bookings - Management stated that COVID-related work is expected to taper off gradually, with a strong underlying business in other therapeutic areas [68] Question: Market share trends in R&DS - Management expressed confidence in gaining market share due to disruptions among competitors and a strong biotech environment [105]