IQVIA (IQV) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was $3.868B, up 3.5% at actual FX and 2.6% at constant FX; adjusted EBITDA rose 5.0% to $966M.

• FY 2023 revenue was $14.984B, up 4.0%; adjusted EBITDA rose 6.7% to $3.569B, and adjusted diluted EPS increased 0.4% to $10.20.

• R&D Solutions backlog reached $29.7B, up 9.2% YoY; Q4 book-to-bill was 1.31x.

Financial highlights

• Q4 net income was $469M vs. $227M; diluted EPS was $2.54 vs. $1.20. Adjusted net income was $523M vs. $524M; adjusted diluted EPS was $2.84 vs. $2.78.

• FY net income was $1.358B vs. $1.091B; diluted EPS was $7.29 vs. $5.72. Adjusted net income was $1.901B vs. $1.937B.

Outlook and guidance

• FY 2024 guidance: revenue $15.4B–$15.65B, adjusted EBITDA $3.7B–$3.8B, and adjusted diluted EPS $10.95–$11.25.

• FY 2024 segment revenue guidance: TAS $6.0B–$6.2B, R&D Solutions $8.7B–$8.8B, and Contract Sales & Medical Solutions $0.7B.

• Q1 2024 guidance: revenue $3.65B–$3.725B, adjusted EBITDA $850M–$870M, and adjusted diluted EPS $2.45–$2.55.

• FY 2024 revenue assumptions include ~$300M COVID-related revenue step-down, ~50 bps FX headwind, and ~100 bps acquisition contribution; guidance assumes Feb. 12, 2024 FX rates.

• ~$7.5B of R&D Solutions backlog is expected to convert to revenue over the next 12 months.