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Medpace
🇺🇸 NASDAQ:MEDP
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Jun 30, 2023

Medpace Q2 2023 Earnings Report

Medpace's Q2 2023 financial performance reflected significant revenue growth and strong new business awards.

Key Takeaways

Medpace Holdings, Inc. reported a strong second quarter in 2023, with a 31.2% increase in revenue to $460.9 million compared to the previous year. Net new business awards increased by 27.6% to $574.8 million, resulting in a net book-to-bill ratio of 1.25x. GAAP net income rose to $61.1 million, or $1.93 per diluted share.

Revenue increased by 31.2% to $460.9 million compared to Q2 2022.

Net new business awards increased by 27.6% to $574.8 million, yielding a book-to-bill ratio of 1.25x.

GAAP net income was $61.1 million, or $1.93 per diluted share, compared to $49.4 million, or $1.46 per diluted share, in Q2 2022.

EBITDA increased by 22.8% to $83.6 million, representing 18.1% of revenue.

Total Revenue
$461M
Previous year: $351M
+31.2%
EPS
$1.93
Previous year: $1.46
+32.2%
Net New Business Awards
$575M
Previous year: $451M
+27.6%
Backlog
$2.57B
Previous year: $2.2B
+16.9%
Gross Profit
$124M
Previous year: $99M
+25.6%
Cash and Equivalents
$39.1M
Previous year: $42.6M
-8.0%
Free Cash Flow
$82.5M
Previous year: $85.4M
-3.4%
Total Assets
$1.41B
Previous year: $1.32B
+7.0%

Medpace

Medpace

Forward Guidance

The Company forecasts 2023 revenue in the range of $1.840 billion to $1.880 billion, representing growth of 26.0% to 28.8% over 2022 revenue of $1.460 billion. GAAP net income for full year 2023 is forecasted in the range of $256.0 million to $271.0 million. Additionally, full year 2023 EBITDA is expected in the range of $340.0 million to $358.0 million. Based on forecasted 2023 revenue of $1.840 billion to $1.880 billion and GAAP net income of $256.0 million to $271.0 million, diluted earnings per share (GAAP) is forecasted in the range of $8.04 to $8.50.

Positive Outlook

  • Revenue is projected to grow by 26.0% to 28.8% compared to 2022.
  • Full year GAAP net income is forecasted between $256.0 million and $271.0 million.
  • Full year EBITDA is expected to range from $340.0 million to $358.0 million.
  • Diluted earnings per share (GAAP) are forecasted between $8.04 and $8.50.
  • Assumes a full year 2023 tax rate of 17.5% to 18.5%.

Challenges Ahead

  • Guidance does not reflect the potential impact of any share repurchases the Company may make after June 30, 2023.
  • Potential loss, delay or non-renewal of contracts.
  • Failure to convert backlog to revenue.
  • Failure to maintain or generate new business awards.
  • Fluctuation in results between fiscal quarters and years.

Company Overview

Full financial data and analysis

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