• Revenue (Q4 2024): $3.958 billion, up 2.3% reported, 3% at constant currency.
• Full Year Revenue (2024): $15.405 billion, up 2.8% reported, 3.4% at constant currency.
• Adjusted EBITDA (Q4 2024): $996 million, growth of 3.1%.
• Adjusted EBITDA (Full Year 2024): $3.684 billion, up 3.2% year-over-year.
• Adjusted Diluted EPS (Q4 2024): $3.12, increased 9.9% year-over-year.
• Adjusted Diluted EPS (Full Year 2024): $11.13.
• Free Cash Flow (Q4 2024): $721 million, a record for quarterly free cash flow.
• Free Cash Flow (Full Year 2024): $2.114 billion, up 41% year-over-year.
• R&D Solutions Backlog (End of 2024): $31.1 billion, up 5.5% at constant currency.
• Share Repurchase (Full Year 2024): $1.350 billion.
• Net Debt (End of 2024): $12.281 billion.
• Technology & Analytics Solutions Revenue (Q4 2024): $1.658 billion, up 8.3% reported, 9.5% at constant currency.
• R&D Solutions Revenue (Q4 2024): $2.123 billion, down 1.3% reported, 1% at constant currency.
• Contract Sales and Medical Solutions Revenue (Q4 2024): $177 million, declined 4.8% reported, 3.2% at constant currency.

• Warning! GuruFocus has detected 5 Warning Sign with IQV.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• IQVIA Holdings Inc (NYSE:IQV) reported strong revenue growth of 5.5% at constant currency for the full year 2024, excluding COVID-related work.
• The company achieved a record quarter of free cash flow, with a 41% increase year-over-year, totaling $2.1 billion.
• IQVIA Holdings Inc (NYSE:IQV) successfully renewed all large pharma strategic partnerships and expanded the scope of work in several partnerships.
• The company introduced 60 innovations in 2024, including 39 AI-enabled applications, enhancing its technological capabilities.
• IQVIA Holdings Inc (NYSE:IQV) was recognized with several awards, including the 2024 Global Customer Value Leadership Award for excellence in AI quality and regulatory solutions in healthcare.

Negative Points

• The company faced significant challenges in 2024 due to the Inflation Reduction Act, leading to delayed customer decision-making and reduced discretionary spending.
• IQVIA Holdings Inc (NYSE:IQV) experienced a high level of cancellations, nearly 50% higher than the average of the previous three years.
• The R&D Solutions segment saw a decline in revenue, down 1.3% reported and 1% at constant currency for the fourth quarter.
• The company anticipates continued volatility in the R&D Solutions demand environment for the next one to two quarters.
• IQVIA Holdings Inc (NYSE:IQV) faced foreign currency headwinds, impacting revenue growth and financial performance.

Q & A Highlights

Q: Ari, can you elaborate on how the operating environment progressed through the quarter and if it met your expectations for Q4? Also, is there any change in your expectations regarding the divided contracts discussed last quarter? A: Ari Bousbib, CEO: The operating environment was challenging due to macroeconomic factors and unexpected large cancellations. We anticipated some volatility for the next one to two quarters, and that remains unchanged. Regarding the divided contracts, nothing has changed; they are still on track for the back end of 2025.

Q: Can you provide more color on the biotech environment and the drivers behind the real-world evidence acceleration? A: Ari Bousbib, CEO: Biotech funding was strong in 2024, with over $100 billion raised, which is a positive leading indicator. RFP flow was up mid-single digits, with EBP being higher. The real-world evidence acceleration is driven by must-do activities for clients, such as supporting drug launches and efficacy demonstrations.

Q: Did Q4 cancellations meet your expectations, and how is pricing playing out in renewals? A: Ari Bousbib, CEO: Cancellations were high, close to $1 billion, but not quite. Despite this, our backlog grew due to strong gross bookings. Pricing is competitive, but we successfully renewed all large pharma partnerships, often expanding our portfolio.

Q: How are you managing to expand margins despite pressures like FSP shift and mega trial costs? A: Ari Bousbib, CEO: We focus on optimizing labor rates, restructuring, leveraging IT, and deploying AI tools to manage costs. The mix of revenue and strong operational discipline help us mitigate cost pressures and expand margins.

Q: Can you discuss the trends within the TAS segment and the outlook for its components? A: Ari Bousbib, CEO: TAS is resilient, with info growing low single digits and analytics/consulting recovering to mid-single digits. Real-world and tech returned to high single digits for the year and double digits in Q4. The recovery is driven by essential client activities like drug launches.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.