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Mar 31, 2020
IQVIA Q1 2020 Earnings Report
IQVIA reported first-quarter 2020 results, issued second-quarter 2020 guidance, and updated full-year 2020 guidance.
Key Takeaways
IQVIA's first-quarter revenue reached $2,754 million, with adjusted diluted earnings per share at $1.50. The R&D Solutions quarterly net book-to-bill ratio was 1.42x including pass throughs, and the contracted backlog grew 14% year-over-year to $19.6 billion.
First quarter revenue was $2,754 million and Adjusted EBITDA was $562 million.
GAAP Diluted Earnings per Share was $0.42, while Adjusted Diluted Earnings per Share reached $1.50.
R&D Solutions quarterly net book-to-bill ratio was 1.42x including pass throughs and 1.35x excluding pass throughs.
Contracted backlog including pass throughs grew 14 percent year-over-year to $19.6 billion.
IQVIA
IQVIA
IQVIA Revenue by Segment
Revenue by Segment
Tech & Analytics Sol. Revenue
CapyFin.comR&D Solutions Revenue
CapyFin.comSales & Med Solutions Revenue
CapyFin.com Forward Guidance
IQVIA expects full-year 2020 revenue to be between $10,600 million and $10,925 million, Adjusted EBITDA to be between $2,200 million and $2,300 million, and Adjusted Diluted Earnings per Share to be between $5.75 and $6.10. For the second quarter of 2020, revenue is expected to be between $2,365 million and $2,440 million, Adjusted EBITDA between $445 million and $470 million, and Adjusted Diluted Earnings Per Share between $1.00 and $1.09.
Positive Outlook
- New cases of the virus continue to increase globally through the second quarter, then level off and begin to decline by the end of the quarter.
- Business activity begins to recover during the third quarter, as access to clinical research sites resumes gradually during the quarter, with a return to 100 percent functionality at the beginning of the fourth quarter.
- Commercial activity gradually resumes throughout the third quarter and returns to normal by the beginning of the fourth quarter.
- The number of inaccessible sites will average 70 percent through the second quarter.
- An average of 35 percent of sites will be inaccessible in the third quarter, with all sites open and accessible by the beginning of the fourth quarter.
Challenges Ahead
- The future course of the COVID-19 virus is inherently uncertain.
- Approximately 80 percent of the company’s clinical research sites are inaccessible due to limitations on the ability to travel to and access sites.
- The company currently estimates that approximately half of the impact from general business disruption caused by the COVID-19 virus will occur in the second quarter, over a third in the third quarter and the balance in the fourth quarter.
- An approximate $75 million unfavorable impact to revenue due to foreign currency movements since the company last provided guidance.
- Second quarter expected to be the fiscal quarter most impacted by the COVID-19 crisis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income