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Sep 30, 2024
Medpace Q3 2024 Earnings Report
Medpace's Q3 2024 performance reflected revenue growth and increased profitability.
Key Takeaways
Medpace Holdings, Inc. reported an 8.3% increase in revenue for the third quarter of 2024, reaching $533.3 million. Net income rose to $96.4 million, or $3.01 per diluted share, and EBITDA increased by 31.7% to $118.8 million.
Revenue for Q3 2024 increased by 8.3% to $533.3 million compared to the prior year.
Net new business awards in Q3 2024 were $533.7 million, resulting in a book-to-bill ratio of 1.00x.
GAAP net income for Q3 2024 was $96.4 million, or $3.01 per diluted share, compared to $70.6 million, or $2.22 per diluted share, in the prior year.
EBITDA for Q3 2024 increased by 31.7% to $118.8 million, representing 22.3% of revenue.
Medpace
Medpace
Forward Guidance
Medpace forecasts 2024 revenue in the range of $2.090 billion to $2.130 billion, representing growth of 10.8% to 12.9% over 2023 revenue of $1.886 billion. GAAP net income for full year 2024 is forecasted in the range of $376.0 million to $388.0 million. Additionally, full year 2024 EBITDA is expected in the range of $450.0 million to $470.0 million.
Positive Outlook
- Revenue is forecasted between $2.090 billion and $2.130 billion, indicating a growth of 10.8% to 12.9% compared to 2023.
- GAAP net income is projected to be in the range of $376.0 million to $388.0 million for the full year.
- Diluted earnings per share (GAAP) are forecasted to be between $11.71 and $12.09.
- EBITDA is expected to range from $450.0 million to $470.0 million for the full year.
- The guidance assumes a full year 2024 tax rate of 15.5% to 16.5% and interest income of $24.4 million.
Challenges Ahead
- Guidance does not include the potential impact of any share repurchases the Company may make pursuant to the share repurchase program after September 30, 2024.
- Potential loss, delay or non-renewal of contracts.
- Failure to convert backlog to revenue.
- Decreased operating margins due to increased pricing pressure.
- Failure to retain key executives or other personnel.