IQVIA (IQV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 2.3% year-over-year to $3.814 billion, with adjusted EBITDA up 2.7% to $887 million and adjusted diluted EPS rising 8.6% to $2.64; net income was $363 million, up from $297 million in Q2 2023.

• Backlog reached a record $30.6 billion, up 7.7% year-over-year, with R&D Solutions net new bookings at $2.7 billion and a book-to-bill ratio of 1.27.

• All three segments contributed to revenue growth, with R&D Solutions showing the largest absolute increase.

• AI and digital solutions drove client wins and operational efficiencies, with industry recognition for innovation.

• The company continues to execute restructuring actions to align resources and integrate acquisitions.

Financial highlights

• Q2 revenue was $3.814 billion, up 2.3% year-over-year; adjusted EBITDA was $887 million, up 2.7%; adjusted diluted EPS was $2.64, up 8.6%.

• GAAP net income for Q2 was $363 million, with GAAP diluted EPS of $1.97; adjusted net income was $487 million.

• Free cash flow for Q2 was $445 million; operating cash flow for the first six months was $1,110 million.

• Cash and cash equivalents at June 30, 2024, were $1.545 billion; net debt was $11.713 billion.

• Net leverage ratio at quarter-end was 3.25x trailing 12-month adjusted EBITDA.

Outlook and guidance

• Full-year 2024 revenue guidance is $15.425–$15.525 billion; adjusted EBITDA $3.705–$3.765 billion; adjusted diluted EPS $11.10–$11.30.

• Q3 2024 revenue guidance is $3.830–$3.880 billion, with adjusted EBITDA of $925–$950 million and adjusted diluted EPS of $2.76–$2.86.

• Segment guidance unchanged: TAS to grow ~5% and R&DS ~7% at constant currency, excluding COVID.

• Management expects continued restructuring actions through 2024 and into 2025 to adapt to market conditions.

• Guidance assumes July 18, 2024 foreign exchange rates remain in effect.