ICON Public Limited (ICLR) 22 Feb 222021 Q4 Earnings call transcript

Good day and thank you for standing by, welcome to the ICON Plc, Fourth Quarter results 2021 conference call. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Kate Haven, please go ahead.

gentlemen. and ladies day Good Thank you quarter call the on joining full year us and XXXX. this ended covering for December XX, the have we call Dr. on our Also CEO today, CFO, Steve Mr. and our Cutler, Brendan Brennan. slides this I like webcast there on call. accompany to website that available would call download to note and is that to today's our are statements call be will Certain forward-looking statements. in today's These economic and current currently available, statements are including based on conditions. management's current expectations and information industry and not statements uncertainties materially differ those or due from business to forward-looking listeners forward-looking risks future with Actual cautioned results may and associated implied stated company's guaranteed the that by performance. are statements the are

result the only related Forward-looking risks in new or This measures, found events, be Brendan More statements obligation in are and the update information, may includes we will reports information forward-looking date which not selected otherwise. be these about as company. filed statements non-GAAP a prepared financial remarks. they by and presentation and to are statements SEC made, of to of the forward-looking publicly Steve their future uncertainties any referencing undertake any do as either

statement For Operations. Condensed a the comparable release directly financial Consolidated please presentation refer press the Statements most measures, of to GAAP of headed

purposes. While for non-GAAP measures, comparison or we investors measures information to not believe is a non-GAAP financial the superior historical to for certain are substitute comparable GAAP more useful

call participants to ask questions to the question. Brendan be today to and like would follow-up to their call to therefore, the keep Mr. We CFO, I hand ask limiting one hour, an related Brennan. will each one to our one opportunity with over now we

XXXX awards wins Consequently, book-to-bill in on wins X.XXx. four, billion Full-year of cancellations $X.XX and were business business $X.XX ICON net net you, million of recorded the billion, were $X.XX billion a Thank billion, gross of X.XXx. $X.XX net resulting net were quarter billion worth of in and wins book-to-bill a of resulting In $X.XX achieved gross $XXX quarter business cancellations. in Kate.

grew of new a restructuring On transaction-related the X.X% costs, their XXX.X% are respective expense, a X.X% record addition year-on-year the of non-GAAP losses, a revenue the in increase our With in and Adjusted last release billion, benefits. you $XX.X earnings of on basis. million, four a Included on from of represents reconciliation gains backlog tax an of company or will slides, awards $XXX quarter representing note Adjusted comparable basis. currency EBITDA QX an currency press costs, foreign XXXX, basis, year-over-year on XX.X% measures. four, combined $X year. to company was combined increase amortization, constant and stock a quarter billion, adjusted period revenue our this XXX.X% or and the a excludes in compensation increase increased

full-year For million. from constant basis. was revenue, year-on-year combined represents a XX.X% or number increased On increase This $XXX $X of on XX.X% company a currency billion, adjusted the revenue basis, XXXX. a XX.X%

XX see fourth our continue the We customer quarter. top concentration improvement to an in in

revenue. of revenue, top top five Our and X.X% XX.X% represented represented our of customer customers

our Our revenue. of XX.X%, represented represented represented full-year top the In of X% top XX.X%. our and customers XX.X% top XXXX, top XX while five our represented XX revenue, customer

for This XX.X% revenue. of last $XXX the revenue. million a or comparable represents EBITDA or XX.X% increase year company gross XX.X%. X, full-year margin top Adjusted Quarter In company gross XX%. of for XX.X% The XX.X%. the for XX.X%, the of XX.X%, $XX.X quarter adjusted quarter increase XXXX interest XX.X%. or top of the billion net represented adjusted margin and represented EBITDA income quarter was XXX.X% full-year expense for representing million on Our basis, million four XXXX an was year-on-year of for a a $XXX our million $XXX This adjusted ten of year. the EBITDA was a XX of was to adjusted the quarter. one was while XX% Adjusted million was to compares million, on the effective compared basis, adjusted the $X,XXX On year EBITDA quarter, combined combined was $XXX Adjusted full-year operating was revenue, adjusted tax rate XX.X%. for or margin period XX.X%

full-year million, of to per earlier the share we equating this noted rate of $XXX the to XX.X% income quarter Adjusted diluted of attributable group was income an group year-over-year. adjusted net year, to $XXX Full be year tax for to As attributable the XX% net a expect margin XXXX XX.X%. approximately the earnings $X.XX, increase adjusted was million.

December the from million. recognized was income or GAAP Company group On XXXX. to for or transaction U.S. at integration-related net revenue integration-related prior-year the $X.XXX full-year December generation million, net period. XX debt quarter, the of $XXX operations our September receivable revenue quarter, XXst, In perform debt the position $XXX.X XX, Full-year with GAAP $XXX term. XX debt to net At pay And in $X.XXX the U.S. a of compares of outstanding September equivalent gross XXst, quarter to the XXXX. this a $X.XXX at share at of $XXX investments the as a with per million per days’ facilities had net this recorded Company billion, and to compared million, of infrastructure accounts outstanding well the year adjusted sales the XXth, GAAP of transaction revenue expenditure debt attributable additional was the of and the quarter $XXX.X to basis, was sales million Net compares associated fourth to XXXX, and and in net We million near trailing X.X% balance, of a The ratio Cash U.S. XX operating billion, September days the billion billion. XXXX. the company December by million XX, costs capital Capital income for at diluted operations end $XX share. XXXX, from XXXX. were Full-year net laboratories. and activities four $X.XX the a as was driven times. was of $XXX XXXX, $XXX.X were net with income $X.XX XXXX. priority $X.XXX XX-month amounted per quarter days $XXX.X a costs. $XX.X XXXX to during million XXth days remains income million at GAAP of comparative accounts ended systems, and spend IT receivable, This X.X on EBITDA compared four. at Full-year and or $XX.X $X.XXX $X.XX the down $XXX December balance for million. U.S. growth GAAP million compared GAAP in the of at deployment cash leaving in amounted as During attributable quarter from to cash also million. during of to GAAP of debt December a of billion diluted share, the

Given reiterate our ahead times of our of below flow cash set target target XXXX. three XXXX exiting adjusted the we in we generation, strong initial EBITDA well

all deploy Steve. over million, program authorized the this Board which And of I'd In to hand with beginning that intend the to up $XXX to repurchase like opportunistically Directors said, now of call addition, we quarter. to share our

ICON. Thank everyone. you, day, for good Brendan, outstanding XXXX and was an year

world scale organization. the of course health transformational acquisition, and organization, year, a a care doubling we clinical Over of the leading creating the and completed intelligence research

areas spending opportunities partners, for a year-over-year gene to new development could treatments potential develop just providers, of volume a the and impact and drug XXXX. drugs increasingly have critical to was in Our of course, as site vaccines, the continue aid the that proud the life-saving through deploying ' of cancers, turning for clinical disease, patient fight COVID major full continued basis year as not solutions a of and XXXX on of the clinical infectious in advancements present seen ensure biotech to were to pandemic, in these in and a XXXX in in grow, ICON levels our despite development the impact role variety has such as the techniques development CROs and overall continue on employees and to throughout and innovative strong XX to as on challenges received devices low navigated funding continued quarter the played We record disease. diseases. therapies. I'm XXXX. customers double-digits Customers new providing the novel and, able on expertly development against drugs these of and support by therapies. of environment treatments to of liver and access. delivered the such Scientific The are RFP accelerate approvals vaccines year, increasing the was ongoing activity development to and in robust to therapies trials areas in mission near team be range cell biopharma mRNA schizophrenia, groundbreaking complex, patients incredibly

While from negatively biotech were we seen in year overall funding levels in this XXXX, customer record affect segment. a small not have the Biopharma down demand

approximately R&D half of mix our Biopharma balanced development. that in than combination. and annual this overall overall of revenue to small attributable in quarter strong XXXX. a top the level, segments, We perspective, or customer add to attributable a full-year our on mid-teen pleased as revenue as haven't At to this ICON spend particular debts that concentration $XXX a high best-in-class segment, well percentage and very as in see XX related percentage mid-sized cash bad RFP to a issues the we companies. four, drive mid-sized in to small fact, have large concerns were in rising for and saw basis, represented seen less Within customer quarter, in decrease Biopharma, the In customer new XX% or fourth This in a well sequentially strength I demand attributable companies million activity cash we Biopharma subset. and collections, from with will vary our continue positions would quarterly any to is

show Biopharma from offering ICON across of different functional has innovative Our engagement and customers positive to 's full-service. customers, and to large with solutions to of integrated and strategic small, a progress. level development modalities on continued appeals

success customers, door well expand further strong opportunity as customer Our open as partnerships. the partnerships relationships, the enduring delivery strategic customers in with existing to new our -- led to has creating for to

customers. our be to strategic can more a we ICON, new partner As of even

offer. number the differentiated we quarter, a organization. world-class and partner across further unique a solutions the ICON large report agreement merits an resources, we talent, that the the relationship our delighted to strategic expanding services secured new existing of during With of with pharma I'm and validating

a book-to-bill wins increase an billion, and is of backlog associated billion XX% the quarter, on figure quarterly During contracted approximately increased X, to ICON year-over-year billion, but X% with robust conservative costs. $X.XX basis. to growing approximately net company a of and We delivering quarter our $XX.X a combined work, assessment realistic backlog XXXX, record awarded based $X.XX of a on business a our believe and over pass-through

across several adjusted award of was hitting full-year guidance our operating New segments. the EBITDA XX% combined year. for activity On and EPS and strong impressive increased ranges for midpoint an revenue Company the XXXX year-over-year, a basis, adjusted revenue

for to burn efforts be backlog days days a strong, XX%. with comparable quarter a down continued collection the Our remained from XXXX. XX on over December Cash XX, from of basis XX DSO

leverage track us a to revenue EBITDA, that payment our B pleased As year, leverage on times the adjusted term at of including with to made exit approximately ratio facility progress XXXX to on X.X I'm X.X loan already XXXX. adjusted synergies report of to $XXX on our make these the a result, end synergy million with exiting and us efforts a cost We're the reducing goals. times happy puts allowed our EBITDA. This

we our a to of From approximately announced remains As $XX synergy year, reach by $XXX million perspective, target, revenue cost of our of exiting expect million our run XXXX this million this XX% synergy unchanged. earlier rate $XXX or a year. target

the Our specialty for cross-sell been strong, Accellacare early awards phase network and has activity central and services. site particularly award in labs, imaging,

months achievements, combined as with six organization. well notable a continues process the in first integration Our

an organization ensuring XX footprint as across efficient have our over the sites, workforce, to pandemic start We ease. completed across our facility restrictions unifying and our integrations

and integration and systems experience technology unified, planning possible. uniform, with underway, employee is order as focus engaged enable on enterprise-level Our systems soon a activity and well as in priority to a

finance, such Our other IT, started business organization-wide services in implementation has and areas functions. as support global administrative model

for employee positive the both from brand industry's In shared of the and at that we remain the have strive we new were priorities large have choice of industry. list new talent investments as we to values addition, America's highlighting out integration our reflecting To unchanged; set a the XXXX. budget employer the to the become be the of to organizations rolled ensuring included and out start together. in experience. on CRO The and CRO improve ICON, our customers, end, we and of best delivering only best the campaign, time the have internal in the we employers initiatives retention we best our increased pleased Forbes Indeed, for in attract brought

labor market areas the in importance to employees we recognize to continuing such support highly and the invest competitive, in as development As our career and programs. training continues be provide of

With the new opportunities our the that by for increased available entire are ICON, career population. employee scale we and of excited are diverse expanded

rose development clinical Biopharma We COVID up the with the ICON inevitably executing of As sites has recruiting increased in the areas COVID-XX to timelines, partners, role remain. the of challenges key ongoing see and on, record opportunity amidst trials efficiency. we and a of pandemic vaccines Alongside continues played patients therapies. that our challenge will in starting

was site COVID revenues related many the the half to our peak Accellacare XXXX. and in benefits, occurring can at these partnered in critical programs, of trials, network the of As of network. It's of bring first the owned the heart all displaying strategic sites we vaccine through

expected, the mid-single-digits COVID-related trials are vaccine total our approximately quarter. work. slightly third of level proportion and four representing of contracted COVID decreased end backlog of of of made in which quarter wide further, decreased is large to gradually End therapies the down world larger four, the down revenue from a from total backlog, X% further projects of percentage As a quarter up as as

emergence and a variant. QX, -related Our COVID resilience the expectation of and for further large X% therapies, saw see vaccines is through continued need XXXX. less than revenue omicron in trials that attributable will assumes This site to the revenue do despite increase new of from represent scale variants. total from we the on We staff not

a Although and majority ever, as COVID have and to in a drove last remote across clinical the course trial from approximately our to our the felt, to remain solutions significantly such years. we We're of as how similar can risk-based of capacity execute seeing the QX. over global the XX% of be valued in due deployed than Innovation clinical pandemic hybrid initiated trials. necessitated programs, is the few globe, change restricted sites of by monitoring and more in increased some industry number best level impacts and continue customers on have the

diverse to address innovation priorities Our on that focused needs. I'm going customer access more core have providing that to enhanced development. efficient groups and Faster pricing clinical solutions,

helping seek As transform as our and customers expanded leader unique novel in have in to continued partnerships to position offerings solutions, further to development. a invest clinical we

our the partnerships as depth new in therapeutic the we an of six increasing announced diseases. countries. site quarter, expanding areas the of partnerships capabilities sites reach across and with immune and research expertise as entering expansion site our the new of four These site During network, Accellacare well CNS our our network, of strategy, further and

averages. of Study million network stands partnerships, XXX access increased active eight With over site now globally. new patient customers recruitment and trials, sites, industry This the to with faster these patients ICON broad us over and to versus including increased countries enabled Startup resource our across has realize ' at at our for locations efficiencies X reach addition

one site network, of in the the significant health to Trial components addition made Decentralized In our of we investments digital Clinical platform, have our key offering.

Digital -health key mobile wearables its e-consent, capabilities. pacing IDP, platform upon data such pricing applications, capture, or and already application and builds ICON the tele integrated branded Now this other our Platform, strong as

expertise experience, and critical enhancements need reducing customer timelines digital for also that into allowing differentiators, one-stop accountability our service improving is compelling, a customers. integrate operational on for thereby trial of based ability firsthand third-parties, the to while and and needs platform, our customization One risk contract to functional our our providing avoids while and

evidenced Association the decentralized QX drop fully that with decentralized of successful published Heart to the trial innovative implementation, execution in required only the offering. several health integrated platform, design, seen device and trial industry. a is chief trial a Conference. and This significant with and amount smartphone The This a presentation A enroll center results large coordinating components mobile execute. data, randomized participants This XXXX in in heart conjunction trial components. we virtual DCT role positive, services in leader the of collect as was failure of Our a have planning, app our unique including direct-to-patient and drug to American logistics. wearable

confirmed In than patients I and for new enrolling is ran with one patient action, a key than of ICON, a diverse research. development heart in patients addition to program, averages. of clinical partner, pandemic better alongside middle solutions that applaud of times a innovative a rights, of increase pharma most and model showing to more more entities this dramatic is the patient retention the global failure, in to saying in industry creating to a improvement new which This our implementing diversity, results trial disease in four support population patient in the a challenging opportunity providing strategy the great example participate treat. successfully

properly the trials, with is other decentralized be timely positioned as diversity we solutions to benefits, evaluated to to are importantly, well protocols analysis. partner their variability patients, ICON approach, as reduced including addition and study successful. to health development is leveraging hybrid in are well experienced an conduct one-size-fits-all and data technologies Deploying what components team this not product in for our and customers by extensive our a and increasing recognize to needs and technology, and insights provide and such By patient to they sites just have every on seen utilization designs inclusion -centralize work In and wearables. decentralized be of data clinical trials de capture resources, digital to likely unlikely with more expertise,

evolve, ourselves take consistent we see can. I to of we solving to from on our a our customers continues know As we complex pride development this market challenges new programs. own. customers’ ways ability to our issues in on find our their as

to research announced innovation partnerships, bringing year paradigm as new analytics, create purchase. are traditional our through talent, with product of development. and as as data, We the Lens in those opportunity end with to disrupt technologies, the customers, Veradigm committed sites, this shareholders, us noble by of believe well investments earlier and Deep We're clinical front value in excited patients, a bringing for and to for such

to And With quarter $XX.XX million the XXXX the financial adjusted strong this million, the the representing into to momentum $XX.XX over XX% guidance in range and billion, performance range positive fourth XXXX coming earnings in we to of of XX% in are up share. guidance revenue billion XXXX full-year XX% reiterating of over revenue. share $X.XX year, growth per $X.XX full to XX% of year per adjusted earnings our

beyond we team, year will EPS held financial of our webcast of high a combined Pennsylvania. and to on areas, we in technology. expect in-person We're projections adjusted more teens, highlighting site strategic As St. event single look sharing including focus ICON's members the company projections innovation our to to Blue deliver in from leadership The mid to to on on will fleets XXXX, Bell, forward at be a growth our several in XXXX, March announced teens. ago, our at digits looking EBITDA growth XX, be Day long-term Patrick's low Day, the and of Analyst longer-term mid high the which in to we revenue continue mid-term the basis, and growth

ICON resulted Forbes, as excellent be has CRO in list only several industry that Employers previously, XXXX. Best thrilled team's And to recognized in the I'm best including Finally, was in awards, Large mentioned America's CRO XXXX our award. additionally, for Scrip's performance

questions. quarter the organization success we efforts recognize continued Before now throughout as to and drug across development. of commitment XXXX all XXXX. and their ready moving to globe tireless in to future forward we're care and Q&A, look leading sincerely, the intelligence of world's I'd like for thank in shape ICON XX,XXX and build We the for the Operator, help the health employees

you. Thank

participants. you Thank dear

will We Question-and-Answer now [Operator Instructions]. the session. begin

from Coldwell from first The of question comes Eric Please the line your question. Baird. ask

targets a I you. at on CAGR. want think clarification I morning. have may one the high have were to get said, just quick a single-digit I Good Steve, revenue says, Thanks. single-digit. The just then very you midterm your and clarification misheard question. end, for -- want slide I I to just mid-to-high deck that.

[Indiscernible] basis. term the revenue to single-digits Checking. a up high on Mid Eric, to mid single-digits. on revenue mid-to-high long growth long-term

the you. comments client appreciate today. And mix, on the Okay. I then additional all Thank

have client a their space the of We mix biotech in differently. that and all and group companies mix characterize quite categorize

revenue. any that approved slightly maybe million the gave pre product, some had that talking but that you suspect under marketed additional generating you. be You about that I I R&D spend, clients not a they and sub-XXX a have talk if own bit about you great. curious today are their subset just R&D -commercial additional million color Thank $XXX parse detail further was don't of of spend. would annual could smaller if

Sure.

So how that third as and a think that, our within small the third as outside of look my about about or our capital at I comments, we talking in revenue, market of what on it. backlog of XX. subset, alluding And of outlined, think we our we group, half dependent, top a pretty within that as that's of depending biotech’s was to revenue although being you

as be mid-teens. revenue That's about having we backlog of would XX% customer. ourselves pre would our customer. that that So revenue XX, with look our at as -- and

on very hard that quite So than exposure manage payment, terms that debts customers. group. We of very normal real or see. our make we of normally frankly, more getting our have to credit sure And on a terms any carefully we any in we modest ahead seen very those those numbers. would in are haven't with challenges of And bad collections worked customers we cash concerns, checks to

on feel we're with to in almost place that is are manage extremely We good well. in So hand two-year -- mark. -- that average The a that three-year segment the well-funded. we we cash exclusively, good they feel god

market comfortable and their with, So to and programs. portfolios it's we terms portfolios their working in terms them prosecute a their dealing help to to feel with build of them signal with Eric, with them of in or

XX%, And, spread XXX least Steve, Give if to that than at assume XX% across I several clients even any is would that not mix, that more that. sense?

Yeah, it be in range. in range. would Yes, would that it that be

So yes. of large several XXX, It's number a customers.

Yeah. Long-term.

Long-term.

Yeah. Thanks, appreciate it. Very good. guys. I

You're welcome.

next The line you. of Kreger John from from the question Blair. William Thank comes Please ask question. your

business now if the Steve to a be quarters great ICON. you more. bit on with of new of sort couple -- a the about would sort down curious It I'm willing break how maybe of you'd real think business be Thanks. little versus of you'd full-service for Cut however it those outlook characterize kind And standouts of various the about you you are across the 'XX, if traditional lab? are the any willing. there central FSP, buckets?

the strong nicely. very mean, we're Really well XXXX Both right John, and in mean, saw across both large biotech went certainly the areas grew where of we a seeing a context those and in -- I growth. mid-size segments focus. small full-service we in pharma I business.

Our labs, early functional phase pharma well trials, as our etc. includes nicely did pharma. light and Specialty group specialty grew services decentralized [Indiscernible], our as

a good strong good RFP performed be all it We're they view, growth across and well Pharma FSP a annual the of segments potential whether be term, moment us. as So terms performer from Large and of at Biotech well, interest is seeing RFP to continues activity of long Biotech, for ahead those in backbone opportunities Large and in growth Pharma, a probably the point is bit little a

business up us. in They phase, a months solid opportunity based be in so. space real a a that Early that XX real space the over the Our lab player last certainly won well. good to business has -- for done we're in continues we've and that or

XXXX. going Our see year, business there our in home great is that to there weakness weren't we had did many many of really our across as -- continuing and health site the we're that too network across weren't very so, Accellacare a business bad areas And spots, optimistic forward. care

maybe staff follow-up, turnover goals labor Quick trending in been you. for more versus this Thank has and market? tight the rate norms 'XX how Great. historical hiring

There's all and is as Yeah. across that no The competitors with our our I tight. customers of question. think applies well. labor And market

of Some the and we finding making retain that -- share pond, our to the right we There business, terms in are of always hot there fish challenges same and all sure farmers, we're in okay. all are we probably biotech's some so certain spots spots speak. the are the as attract large people. from with And -- certain

at North If bit. And for working that's in the certainly is attrition of retain America, you're a CRA has sure looking we moment. a hotspot people, we're ways various making up gone little

very -- resource, develop more expect But any for certainly to careers. It's out, to organizations moment. people seeing their we continue there, that intense of we we move we an over seen our bring it's that significant as the improve. about were are to Overall, we'll that's us opportunity And as we getting We're more niche developing think on opportunities very We've the about seeing, I and for focus we've push in to drugs I think it's traction think and And than place. competition in, terms to how very of I of it's the certainly environment other I into of together, work [Indiscernible]. the area within But develop last see in there -- area that to -- improvement but been two some related organizations available see of there's capital for it we're -- so. we in think, a we improve. markets -- in all making my And that dollars is couple not giving salaries hard continue on cost, months. XXXX, on I terms people playing optimistic plans at retention have high. an focus the the in a and some number think, the to areas.

great. you. That's Thank

Thanks.

Peterson Tycho from The next Thank line question. Please question JPMorgan. you. your ask comes the of from

how Tycho. that Hi, COVID is XX% about think on COVID assumption trials pass revenue your given troughs. - assumes what should currently your Was impacted conservative about the of sites right of on How think capacity the roll-off guide of That for decentralized This XXXX should And then, percentage from curious are XXXX? guys. now? now? in are a we we Casey increasing for net decentralization impact and percentage

you're curious Thank just what thinking to So as there? you.

we going mean, in majority we start much. a of few a remote terms off completely component that vast de wearable one study. are but monitoring, health, completed, one the home are I of I trials, that also the The a trial forward, decentralized totally did very the components decentralization there be start they very trials a traditional very rare. and de win -centralized the the might And totally of off Chief component, then -centralized, we've team a started that was trials Casey, But of and that there's successful that job. two pretty But great off have few or there trial, most. very star

-- some our got forward. going But we're do of our trials years term so going to we're We've moving from fully are more more significant we we're think hybrid and even to And be I the on being minority a that more majority what vast de away I of think one. -centralized decentralized. some trials. studies That

It's normally troughs expect at terms that, the - of or to associated, we're but for pass-through strong little real see associated still there do We're as side sort pass number of dollars said, visiting component the site certain or they're a during fees. at phase, change of would at -centralized a pandemic, every up of early any of these we and forward. dollars where to terms approximately travel our we the total -- high of days for They much and de it's run not hybrid so with the of back pass-through still moment. amount fundamental it's not and maybe investigator are requirement [Indiscernible] represent still shift the seeing but visit, a that's moment. and going traditionally contracted on trial the There's a in just the costs every not of they in large seeing end twenties so. of a is really investigator change terms bit sites XX% the studies -- the as patients studies I competitive still most In

And, to to just Casey, add that. maybe

months think portfolio what me of the maybe you're portfolio first half of is -- a that, large of the obviously, correct there. And referencing, vaccine obviously, in our this the -- wrong, is have much part we're did do the and trials to first pass on 'XX, and, we - elevated troughs I if we lapping in 'XX. six working that guidance built in I'm very fact those the have

on out 'XX in Steve think than less Our rates I revenue. be rates were be -- to run on the X% of to called run expected work COVID

profile significantly profile So we're helping -- talking more for about very normalized underlying good would pass-through what and a still revenues. have in much direct 'XX, line level more in you of margin and solid full-year margin fee much seen so 'XX very, the with 'XX,

Got it, one you. maybe And follow-up. just to thank then

of in would under So XX% at that term. longer conference, the revenues our be SG&A

were think, I XQ. XX.X% they in

have So of how for modeling XXXX, synergies. what's you leverage inclusive should do of of $XX we Thanks. line? What sort million on be this the

you our exit perspective. indicate XX% from result. at that view Yes, how in XXXX. us as year To and during 'XX past, I in XX%, progress time this certainly of that as the And line the course our bring certainly firmly, pretty cost we're to we the what and in make a not by we we through point, below shown that's how serious should with if about modeling managers the think, I'd think we've want -- certainly continue

you Excuse sir? with finished question, Have your me.

Thank you. Yes.

very the you The next much. from question of your question. Evercore from comes Please line Thank Elizabeth Anderson ask ISI.

guys. Hi for question. so Thanks much the

of wonder the make said script and the time, just but more secondly, I'm versus say been -- see some targets pacing balance a of if XXX% but himself have year. in demand, understand you repeat accelerate terms of slides questions about the the In not in indication one lot and again, of the I just then typically Steve just directionally, if could the seeing revenues could the your you of how us getting you don't over know of about for what you guide them talking mid-term to course to give peers year some quarterly, growth and again, your I you a everybody.

Okay.

just XXXX, a the in as and in will lowest trials the on of the go The think as had to. half accelerate will the heavy Elizabeth, second pass and the growth we the little I XXXX. alluded be side Brendan So large, year. as we those past get lap more troughs COVID we - into that

be growing little it it's that year based On the going in a half of of XXX year. the will lower good the but in at give little challenge course, on of the So clip, basis, be half the forward to second bit will a us the fee - in direct a going a troughs pass a first year. half of the we're of first will and expand

In we terms mid high, do to single-digits. are of on longer-term That's a revenue what growth, expecting I to think revenue said I basis.

that's a on can is -- picture high and next or two we believe ambition to sort about. Mid sort years, have thinking we single-digits of three that's So I'm the we we where of ourselves get next for to. time the

EBITDA [Indiscernible] mid-teens teens should adjusted have CAGR CAGR those EPS plus low and two?

Yeah.

Yeah, absolutely.

Yeah.

clarification. for Perfect. that Thanks appreciate it. Okay. I

from Thank ask you. the question Jefferies, Windley next your from The of comes David please line question.

and PRA as end knew positions. hearing that small pharma from Thanks some for are big even they the leaning of are we're internal more pharma Steve, that PRA, we on And questions. filling have difficulty FSP medium morning. vendors maybe potentially Biopharma small and my or that then a hearing Good upper taking how also was revenue FSP ICON or both large PRA a Thanks. acquisition, standpoint you and purchased so to the and the and that wondering you percentage demand your competitively. PRA has PRA's the combination pre space, you're in what aggressive specifically, maybe - fairly but prior seeing PRA, more more of were from among Hi. they leaning and assertive

large ability organization in organization, let PRA, we're the same Well, functional believe significant very and together. We significant the opportunity number the Dave. Sure market, full-service to legacy in leader flexibility group well the question are us take in in our organizations front the bought FSP two we margins, or to move particularly us along. we gives -- docs’ of and to One believe as to else an two space Pharma groups into terms ourselves the ourselves market normal several -- -- fund, that's FSP together, able And contract, or see with being we the not two the that. start in than that pharma. partnerships market and benefits partnership Large get an we've large build that one embed and type give me a the as also for The come of and drive ability to FSP so it's more labor as on one leader first. pharmacies. find revenues it of just anybody that to morphed partnerships does opportunities required. been It but but out with

towards pharma around your of move question and In terms first terms FSP. large -- they of in

of and other those can in just the find company in be in found weren't a in some that the we the industry. resource leads And partner welcome have ideal full-service. leading an are resources We I to functional leaning we are major or opportunities. the as component And get markets of is that pharma’s are advancement hard a believe think that large it's both probably and our us on to functional, or because we full-service in quite both. as case large companies. for that And fair are because, find just to front. space Most few that growth space if it be that so that can labor some -- tied. they that in otherwise Very pharma say, again, it companies wouldn't to customers to perhaps we opportunity lead

backlog, Thanks on management build has a and backlog basis. others out or drifts some question around the and like thinking lot of I of guess as rate. rate really bottoms-up for that long of heard But fairly commented then that target duration XX% Burn duration on that a -- that, We've knowing COVID of about areas some the a have believe like about trial follow-up and environment away the in management by that drifts follow-up things I and come trial is maybe has that. team from duration this oncology wins Burn as

Burn backlog of your So produce think what standpoint. what that and duration revenue I'm just like a can rate looks wondering you from

and my things keep to target, our it our there's era. to came out to COVID through we'd burn that the that and processes sites comment, no sort around it now burn, of do. Brandan as customers, to of got could We've continue over the to our The things to vaccine we that vaccine that, involves then that that ambition, and go I did really fore the burn hope the trials way. quickly speed out trials faster, certainly trials expectation is kind let XX% I'll that's that us rate. of approved, some lot XX% help to put and burned at our those to and and regulators Those is ability and to improve was things mark, and rate, us helped like still guide. it allow did question to There but can which full improve and move what were obviously help at a COVID of well. all we apart from really

is our can company, So industry just lot expectation good of a my it's along not those continue our and or that faster. move but we things

need does frankly. and if that the we The it knowledge if do it that things faster I quite think opportunity can to that's matters we really has COVID brought. and

partnership remains seen Burn in all be want and can even if it right and trials. we with So continue collaboration you the requires to but the will, the end COVID as term high involved our to clinical declines parties that that the also at to do add? of I'm optimistic longer work it keep various in

there that, that is somewhere of given you is Yes. add areas I average in quarterly think of And probably brings to I'd when have. different to of the think, we math XX% of in contracts. of three course, mean, Dave, said a obviously thing you or X% backlog range back only years it conversion. we that our therapeutic aggregates, still I mix on all the that, duration about

like, the think have if think a if you starting and mix that that think the is I to some do broad point, such XX% forward. think want up that consulting picked we the how to of our of Steve And like our go technology of we almost our FSP better that. mix use and of And also where eight of pieces we said, terms business, fact to an have. out as in in backlog, terms backlog doable of armory, burn with you about, point, in organization, mix we 's portfolio as we of additional that's Steve we we that of businesses that,

like we still to certainly right targeting. yes, the be So that's number

the you. great. That's appreciate detail. I Thank

Thank the question. Donnelly the you, question comes line your Patrick of from from next Please Citi. ask

doesn't the XX offset bit. inflation into bit? you intensify, in you synergies, maybe just if feeling 'XX But you pressures were maybe talk Brendan, the touched you're the for on SG&A into and you the about cost of forward So pull can little about visibility labor obviously side? wage the a margin just capturing a those little deal past months could you're margin talk If again, and bit or curious one the about talked a Can the guys. profile. now moving on the Thanks there to how closer? little just pieces eight obviously

Yes. Patrick. Sure

but into of talk I'm gross the that margin to is to that our As previous our we we're a 'XX, from a to vaccine, comments story, to good him expect non-vaccine revenue I with on. was profile and particularly will going like we work, go some gross feel QX my this more look say jumping in say off so at totality, point seeing margin through a do profile how normalized, what look safe good in you we is there mix terms of different it's is to start benchmark we past, into 'XX in QX a as as much our and say margin about we're jump going to off terms conversion, using not be was in QX think slower see now that

margin the a through XX% good we flatter to that's conversing And point first to we there's going in of were synergies, so SG&A be in the looking And your still million of half in said leverage as of included for year. go initially. well terms and little $XXX a we we identified area, 'XX the that outlined

our below that be the year. will of course down through work they in, SG&A we be will XX% helping So and revenue us rolling the as target percentage get a of as

of the So more good from back for a first flatter leverage pickup little some half of with we've year the it's of seen the a margin, in that story an of with elements gross certainly line, overall probably half seeing the perspective. continued lapping the in then the year the in and SG&A

have want with I only terms that to thing add to price. the that of are Patrick, audience in our customers a [Indiscernible] we -- getting receptive we is

just to we much them it's They understand sort and too so, we need help we to doesn't face with want the and I'll all As it retain challenges. of people salary to challenging that. that [Indiscernible] our a pay probably at than turnover say -- market just any time that like they've more XX the not been with as just I'll to so -- it quite XX pricing past. discussions customers we've are the years, leave in same

the just of terms curious, the more companies again, conversations that's it any background, smaller been capitalize the of and on you sound sounds and more currently That's the helpful raised there? continue hear two cancellations years, biotech kind trials. that the amount about them, mid-teens helpful, to see over guess have those conversations of how to to you a for past coming forward-looking from like it And on in sustainable the sufficient forward-looking good seen in talk group. that But little growth it companies. And the one continue bookings, issues. softening, doesn't confident that those flow with pretty the news you're It's percentage backdrop but again, haven't to like just view has you with do or Steve. you do terms then I funds of and payment that any cash another

we're generally issues, payment have about segment that see, well our business companies. any make issues. are these funded, two We as bad pretty segment of years in see three you I Well They books with optimistic for -- to Patrick. we a to real in to in these on cash terms of said, win the organization, continue that debts those area or of ability don't most our our and and to growth operations

an there's But lot little or fair I for it. RNA there really science technology, confident there it's good There's can over a out has six to drive conjugates. bit a environment we checkpoint so the the months available we there. and say, drug area inhibitors, the some attenuated continue that is And feel think, so. that lot It's a to or twelve money that last of of science the of out The great to signs. funding

be I of and through. the continue applying about be science be were to have that and are development see optimistic buyers, with development good move probably customer or have that I good to well-funded and won't to amount market. well. we of the very to doubt, capabilities there they of to going and and so shouldn't available, really of funded there's But and no very and being there's scientific companies. Around the good ability the opportunity continue in capital these beneficiaries good that, out available funded positive the and technology organized, think the conversation out are to well things this for some the segment are to attract money companies programs remain there wealth more will they yesterday. and money we And do private companies bullish going And forward. And about that [Indiscernible] that's ideas,

Thank you.

Research. question. question comes your of next Please Meehan the ask line Jack from The from Nephron

not on And that's sure totally you. forma basis, were if but they could I'm the in talk quarter, morning. gross apples-to-apples. X.X% down Thank my good year-over-year Was you math, about pro hoping the a authorizations by

have comment what the what wondering for was, you was pro and So trend might rate on growth PRA, if forma of in impacted the could the quarter.

Yes. I have don't in that Jack. exact me, of front number

last have -- about been Well number number. in Again you year-on-year, of it's and quarter, year. year. slightly know, time lapping last got this this awards lapping lapping Now of [Indiscernible] the significant and part we half first we, the we was the this were we talk it revenue awards down quarter the

the into very So, significant comparison we particularly [Indiscernible] some and we back high that vaccines go quarter level somewhat a probably award, and awards the full sort saw more of you because had and a business. ago, of of that's have didn't number bit was XXXX, of the down, the that extraordinary, year around as -- little pastures

it the slightly I year, think quarter-by-quarter down across was nicely, was for to up a So but got full-year. on look it we've and basis, the

$XX quarter the revenue a about then, was the Great. in just Thanks Brendan, looking unbilled increased sequentially. for at clarifying. sheet, as I balance And follow-up, million the

year-end. this flattish some could just I might think have historically, has you that moving been on increased year-end. into PRA, with slightly down the probably there's in I if parts or was why but know wondering comment

of I pass-through, there. bring sure really Bit make how range don't accounted long-term trend. build recognize strange, we're be and that days not get across think the that some to sure terribly going have continue revenue that to our is and and at in true And XX of Nothing payment heads. obviously we will we see a making it's investigator Jack of we XX harmonization obviously that the front, We're DSO looking particularly to we still a kind that organization. harmonization total on settlement,

targeting So, much in cash this back-half see the can that's flows very the in the -- you into cash are of and strong flows we in very QX. and where year

that So, to still that's outs [Indiscernible] before happy footwear going trending.

Brendan. you, Thank

question comes from next the Leonard The line from Dan Fargo. ask question. Please you. of Wells your Thank

your less Can speak business Thank specifically with from RFP companies biotech. in R&D? you. bookings $XXX of million circle a to wanted than to that back portion trends in small in I mid-teens you on

don't is terms the have year. can't. and level. QX, the be quarter-to-quarter, that's honest we you, Dan. was I to track a we prescription sales, the To us in year-on-year and Biotech with speak extremely strong What don't I below No, segment across can that whole, to XX to we of that, that as for in

available. small I approximately don't within applied win’s and as was very mean, that strong So Overall, continues be but very revenues and specific to about the strong, that number I also of is that a three half market our Biotech is from I basis said those strong. assumption have

heard comments cash that rising issues or out your have don't on it bad no environment. folks group. concerned could I they metered concerned more have meter with cash not cash And, are differently. Steve, differently debt collections out I the in small They're current around or they'll speak the concerns if they with But that biotech get

there's So anything know you I front. don't can on that to speak if

question. understood sure I'm I not the quite

in a with what it's cash. think I they're going slowdown to our do

still the pieces development the is organization. big to that of crucial one think I is obviously here

who they working it's look make people to that their their going want know on overall I are to looking particular balance that element continue So sheet. they're in back pulling to don't get of process. funding, at development start spend capital they when sure Indeed, on you that their because

their them opportunities. different we way continue cash certainly don't than to other at balances fund So to a development see in their looking

you. thank [Indiscernible], this, Appreciate

Barclays. Luke question Thank of comes the from your next you. line The from ask Please question. Sergott

for me. [Indiscernible]

midterm -- It for back singles. DAC you're you really then what the about said time walking for you're beyond But just then in want just high the what you at deal. talking So are I that to that you but singles said to that of you're high sure is or mid-singles high you make have the JPM looking singles. again, mid-to-high? Steve, and PRA that's on and the targets, 'XX,

from for and that over mid-to-high What's there. ongoing XX,

so you okay. through, know forward, mid-to-high going ongoing Okay,

it. Yup -- yup. That's

the clarification RFP on the then other here And Alright. is volume.

mid-singles, up it mid-singles doubles, then about are [Indiscernible] segment was conference and trying up said there, the talking was You JPMorgan up what the guys to being Biotech get you're difference low it seeing. the at you so just

overall, single, the It suppose, I eight was biotech space. RFP Well, in to range, overall and or that it our in pharma low in little higher so. a it in space from lower the high large was doubles. a It ten was bit -- was

up year things double-digit nicely Overall, the basis, low up in range. doubles So range. low was I on overall, particular one was don't in double-digit focused the And quarter. year-on-year mean, that it and it we singles in on high get And saw -- low a on was double-digits. -- these can we RFP. that's that too what quarter-to-quarter

direction. continues strong. Pharma. market's the So That's played how the Large bit And in out. in higher right biotech Biotech that in it we was to the little that little moving feel be bit it Probably area, the low and a a

kind a like the seeing we take lion's return share funnel? I if squeeze seeing you've selling starting like mRNA All ADCs, new right. here the one in seeing term, therapy about and long then, Great. to you those And just are then filling here, off can monoclonal really and indications for RFP more of the RFP. talked really you're new the and has so to quick, funnel take demand RFP's, Are to starting fill and where levels gene antibodies that -COVID really and pre the of backlog market for

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hesitate we're science out it move But call be -- just what, and of and technology like, sort would displaying certainly to in Biotech It's it you say, applied the the areas. new the said, other nice tsunami space. a to pandemic it's I science if would pharma it. particularly a becoming available of with opportunity. small a really this tailwind I the -- or on towards in to whether seeing certainly I that's As of

really appreciate always. color. as Great. you, Thank I the

from Please Bruin question Bank of De ask The comes the line America. from your you. of Thank Derik question. next

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their quick embedded, I like on And capital mean, into basis. of talking ones. top includes on follow-up. your organic two of M&A? a What's Just terms some line thoughts more deployment growth. -- your got you're in I've competitors A about lot like yours looks

Yeah.

the So as let me -- check we've on our I think -- Derik. been pretty specific,

Our M&A deployment get space. we're start of progress what are capital are we end the that pin in we will opportunities short-term. down and -- good the on date, priority such making the back particularly that, year, on to we to there about in think this is for other But the

that invest the we the we X the of recruitment, potentially a could next around in -- at year. a as we around we we areas times home-health, area, in there's get focus. to labs. we and that emphasize our build Trial view. Look could some some I to potentially half more So suppose into get plan patient But months. a that That's and number point want [Indiscernible] Decentralized would of areas feel technology, feel of next whole I There further for as XX medium-term, to are more the inquisitive that

priority the moment. And very so that's at the much

one just the been China lately. And follow-up. in has Great. news Obviously,

some that run base how questions business you of for trials. -- Thank your your factor the does into being how comments of earnings, opportunity an from clinical the and there. through your that the And over potentially on are You've like more particular, in you. a talked sort on opportunity exposure, us increasing, your diversity little to bit gives see some were trials help your FDA about outlook? Some with gain you China the interesting on this of there. thought do questions China concerns I

asked - you Russia, have let Russia, you'd I But and given and the there. funny current China. about It's be thought we about situation. Ukraine address Sure. asking let the Ukraine me me address resources

we all, monitor hopeful site any visits than than -- continue an situation there, to we precedent. allay operations offices fluid fee feel just good X% impacted it's populations oil our and are recent less there our place but that a and developments obviously to of very is in continuing we trials less our at that have have can of we but it's our continuing, we're that continues, have the their We like recent operations that X% a

an and That focus they to need organization It's what the more of been terms China, we trials. In China. a a and view of for a that local, functional reminds they China have both And us, now, be market we two challenges to for over vigilant, expecting a we be what to situation constantly deliverer an now, a continue important -- some people with from point There of and need of some of have be have in from full-service important it they the SFDA in combined are there China over delivering them. are is in XXXX we now. terms organizations. strong as challenges

out more engage it said, long-term the a in area of to within. I in leave do at remains with we say to a east, work challenging develop just companies of that the we're than I will just companies one those of see some or companies, big terms key move for a out environments that, It's full-service and particularly and number carefully there say, a We operator. the right by the the our so in. relations that large the in to they out many you we're doing regulators as of market a Small the there, But them. monitor have more a to to interest growth. more hundreds Pharma lot basis, and starting requests functional one that with us, beating work a thing ambitions sites of regulatory so that we sure other contribution pharma of a drugs as We it east, it's I work, those want out Biotech there make make and take to have major We who rolling in perhaps of on have our very China.

and over opportunity to an it out increasing our an the increasingly I next important part XX there's be of will years, think So there, five business.

Thank you.

I closing participants, would over hand the you Thank our the to all speakers like questions. conference to your for for to remarks.

you today. you, in for Thank listening Operator. Thank

recognize record And have want customers unwavering proud and ICON. over support and new life-saving to are to year I devices, to our XXXX. a in have you to pleased all, and take as drugs opportunity quarter quarter great another and our of Thank their in delivered and the provided efforts the I'm We the entire day. the of workforce, development a past commitment

today. does you conclude conference for Thank That participating. our for

may day. a You disconnect. all nice Have