IQVIA(US:IQV)2020-07-22 17:10Financial Data and Key Metrics Changes - Revenue for Q2 2020 was $2.521 billion, which is $118 million above the midpoint of guidance, with $41 million of this beat attributed to FX and pass-throughs [23][30] - Adjusted EBITDA for Q2 was $483 million, exceeding guidance by $25 million, driven entirely by better operational performance [24][33] - Adjusted diluted EPS for Q2 was $1.18, with a GAAP net loss of $23 million or $0.12 loss per diluted share [33] Business Line Data and Key Metrics Changes - R&D Solutions revenue for Q2 was $1.235 billion, down from $1.435 billion in Q2 2019, while first half revenue was $2.676 billion compared to $2.851 billion in the first half of 2019 [31] - Technology & Analytics Solutions revenue for Q2 was $1.109 billion, slightly up from $1.102 billion in Q2 2019, with first half revenue at $2.226 billion compared to $2.177 billion in the first half of 2019 [30][31] - Contract Sales & Medical Solutions revenue for Q2 was $177 million, down from $203 million in Q2 2019, with first half revenue at $373 million compared to $396 million in the first half of 2019 [32] Market Data and Key Metrics Changes - R&D Solutions contracted backlog grew 13.5% year-over-year to $20.5 billion as of June 30, 2020, with a book-to-bill ratio of 1.64 including pass-throughs [25][34] - The company experienced no material cancellations of trials in its backlog due to COVID-19, indicating resilience in client demand [34] Company Strategy and Development Direction - The company is cautiously optimistic about a sharp recovery in the second half of the year, with plans to provide 2021 guidance earlier than usual [27][28] - The focus remains on leveraging virtual trial solutions and maintaining strong client interactions, particularly in the context of COVID-19 [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted that site accessibility improved to 53% by the end of Q2, with expectations for continued improvement despite localized COVID-19 flare-ups [12][66] - The company anticipates a return to previous growth trajectories in 2021, supported by strong backlog and client demand [28][70] Other Important Information - The company has maintained strong liquidity with $1.1 billion in cash and an undrawn $1.5 billion revolving credit facility [38] - The management emphasized the importance of preserving employment during the crisis, with minimal impact on employee compensation [26][98] Q&A Session Summary Question: Changes in competitive environment related to COVID-19 - Management indicated that there have been no material cancellations related to COVID-19 and that the company has gained market share during the crisis [51][54] Question: Financial implications of remote monitoring versus on-site visits - Management noted that on-site visits have now exceeded remote visits, indicating a recovery in site accessibility [56][58] Question: Risks from COVID-19 flare-ups in Q3 and beyond - Management expressed confidence in their ability to adapt to remote monitoring and mitigate risks from localized flare-ups [66][69] Question: Revenue guidance and backlog visibility - Management confirmed that the next 12 months revenue from backlog has increased significantly, providing better visibility into future growth [75][78] Question: Performance of Technology & Analytics Solutions segment - The Real-World business within the TAS segment has shown strong growth, with continued demand for analytics and technology solutions [82][84] Question: Cost control measures and margin expectations - Management indicated that while some cost controls may ease, they will continue to focus on efficiency and maintaining a strong margin profile [96][98]