Medpace (MEDP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 7.7% year-over-year to $536.6M; full-year revenue was $2.11B, up 11.8%.

• Q4 net income increased 49.5% year-over-year to $117.0M; full-year net income grew 43.0% to $404.4M.

• EBITDA for Q4 was $133.5M (up 39.3%); full-year EBITDA reached $480.2M, up 32.5%.

• Net new business awards declined 13.8% in Q4 and 5.4% for the year; Q4 net book-to-bill ratio was 0.99.

• Backlog increased 3.2% for the year to $2.90B, but total awards and outstanding unperformed work declined slightly due to high cancellations.

Financial highlights

• Q4 EBITDA margin was 24.9% (vs. 19.2% prior year); full-year margin was 22.8%.

• Q4 net income margin improved to 21.8% from 15.7%; full-year margin rose to 19.2% from 15.0%.

• Q4 EPS was $3.67 (vs. $2.46 prior year); full-year EPS was $12.63 (vs. $8.88).

• Cash and equivalents at year-end were $669.4M.

• Operating cash flow for 2024 was $608.8M; free cash flow for Q4 was $183.0M, with a full-year free cash flow of $572.3M.

Outlook and guidance

• 2025 revenue guidance: $2.11B–$2.21B, representing 0.0%–4.8% growth.

• 2025 EBITDA guidance: $462M–$492M, a decrease of 3.8% to an increase of 2.5%.

• 2025 net income guidance: $378M–$402M; EPS guidance: $11.93–$12.69, assuming 18–19% tax rate and 31.7M diluted shares.

• Revenue growth expected to be linear through 2025, with sequential improvement depending on bookings.

• Guidance assumes $30.5M interest income and no additional share repurchases.