Medpace (MEDP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 14.6% year-over-year to $528.1 million, with net income up 44.7% to $88.4 million and diluted EPS up to $2.75.

• Backlog as of June 30, 2024, was $2.92 billion, up 13.7% year-over-year, with $1.58 billion expected to convert to revenue in the next 12 months.

• EBITDA for Q2 was $112.3 million, up 34.2% year-over-year, with a margin of 21.3%.

• Net new business awards for Q2 were $551 million, down 4.1% year-over-year, with a book-to-bill ratio of 1.04.

• Cash and cash equivalents at quarter-end were $510.9 million, with no debt outstanding.

Financial highlights

• Six-month 2024 revenue was $1.04 billion, up 16.1% year-over-year; six-month net income was $190.9 million, up 42.5%.

• Q2 2024 net income margin was 16.7%, up from 13.3% in Q2 2023.

• Free cash flow for Q2 was $103.5 million, with a conversion rate of 92.2%.

• Operating cash flow for Q2 was $116.4 million; $269.1 million for the first half of 2024.

• No net debt as of Q2 2024; net leverage remains at 0.0x.

Outlook and guidance

• 2024 revenue guidance is $2.125–$2.175 billion, representing 12.7%–15.3% growth over 2023.

• 2024 EBITDA guidance is $430–$460 million, up 18.6%–26.9% year-over-year.

• 2024 net income expected at $361–$383 million; EPS guidance raised to $11.24–$11.93.

• Guidance assumes a 15%–16% effective tax rate, $24 million interest income, and no additional share repurchases.