ICON Public Limited (ICLR) 28 Apr 222022 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the ICON Plc First Quarter results 2022 Conference call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there will be a question-and-answer session [Operator instructions]. Please be advised that today's conference is being recorded. to Haven. conference like speaker to now Kate today, would hand over the your I ahead. go Please

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

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

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

While to. measures not superior are non-GAAP financial

measures, will a foreign benefits. the for amortization press non-GAAP certain to currency gains reconciliation tax costs slides, GAAP you transaction-related measures, adjusted Included losses, believe For to comparison respective their is stock information useful note compensation historical earnings comparable the and release costs, we non-GAAP and restructuring and investors more EBITDA excludes GAAP for purposes. the a substitute in and of expense,

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

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

awards X.X% record With of our Quarter company the of new an X.X% addition the backlog grew on in increase representing billion, a XXXX, or of an a basis. increase of Quarter year-over-year on X X, combined $XX.X to

with foreign X quarter a increased comparable currency a revenue X.X% XXX.X% Quarter in currency from year-over-year constant of approximately exchange company currency in last consistent burn $X.XXX $XX period On X% X.X% one. on year-on-year constant in to resulting this year. a a backlog headwind a The the represented was was or changes basis revenue Revenue a basis. XXX% impact rates combined a quarter in or basis, XX% Quarter in million from Our billion the X. increase of on

represented revenue, increased top concentration of customer XX top X.X% top our represented revenue. Quarter and XX.X% Our slightly of our as customers from customer X five

year-over-year. four. revenue, services in the combined XX.X% million, interest was margin was one and net negatively a for impacted The XXXX for quarter when was Overall a of top our expect our continue in leverage This the was million be period to X% was to an level million, supply end we of XX.X%. U.S. equating last compared from per GAAP X representing XX% compared XX%, for margin rate not million to to Net slowdown in collection well the this represented comparable of at for XXXX. with basis the period year finance the course expect four accounts X. net XX.X%, business. in March, margin effect the ongoing XXst, XX what XX% XX and XX.X% EBITDA. quarter diluted XX.X%. XXXX. year. million, DSO the the integration term and revenue year-on-year adjusted quarter XXXX. four. Gross on quarter related million by gross or margin an of at $XXX a one, the XX days race below adjusted Adjusted the approximately net million in quarter. to was of adjusted for in this expense attributable a accounts last declined the XX $X.XX, first $X.XX comparable represented rising benefit operations equivalent quarters as a of $XX.X per the full-year effective as $XXX Quarter was to interest receivable which the was facility, be of earnings share U.S. income million in adjusted to our for in This quarter, impressive $XXX per was group is basis increase $XX.X of of from strong days of processes. XX.X% $XXX interest rate per top quarter EBITDA year. a reduced XX to at $XXX $XXX.X for on quarter income income subsequent XX%. revenue. quarter, consequence XX.X%.Adjusted Adjusted The Russia share the attributable as effective up to tax income or balance on resulted decrease integration a Quarter in XX of XX, EBITDA be ratio earnings quarter Our diluted operating million, group alignment basis, was loan times costs. In compares expense from to efforts of December, during of December We the over anticipate, from the environment $X.XX of the Adjusted a the share days at The challenges activities the points comparable a March in laboratory quarter, continue increase was continued $XXX.X sequential with over amounted receivable adjusted the company of our to $XXX.X million XX and or share the In $X.XX down XX% rate expense billing net to Cash quarter recorded do GAAP increase four basis we in or took DSO transaction XXXX, company XX attributable Ukraine, tax

cash as As EBITDA of completed, our debt million XXXX. million maintain the quarter XXst $XX.X At quarter $X.XXX Capital We during adjusted XXXX was $XXX of $X.XXX billion performance to times. we a ratio the the is net million. million. March balance X.X our trailing would this of decrease billion DSO. Cash XXXX, $XXX.X B capital $XXX company XX-month was $X.XXX of to at made such The XX, and loan billion. at a net debt in in term, compared the debt work deployment December with quarter to pay one, on down of payment our debt expenditure priority quarter ended activities and for in generated March operating look $XXX.X XX, debt had net net remains from facility. a This leaving term a position and we million on the and near cash

exiting of strong our our adjusted below Given times cash continued flow we target XXXX generation, EBITDA. X reiterate

that our in pleased report deploying As $XXX announced our a X, resulting a said, the authorized were successful within of $XXX.XX. on repurchase an over million Board to like With a price purchase hand full last shares authorization Directors to all programmable in the the million. I'd we call of Steve. $XXX call, now average I'm of Quarter to of to share XXX,XXX at of

presented business Brendan, pandemic impacting everyone. and the COVID resilience that momentum, regions, new allow. of had dedication reflecting of employees the customers new first Ukraine you, is region I start business. continued continued year programs from offices We've the the in foremost challenges. headwinds the in continue war and macroeconomic their despite assisted as the other and to ICON employees many in to our variants, delivering employees with circumstances day year, been Quarter our ICON the exhibit neighboring ongoing to in border emergence a good set operational our X, provide priority. to a effects relocation families strong of Throughout Thank support Ensuring strength and have and crossed to and where to the and to safety able Ukrainian

technologies has new possible, sites. studies studies leaving ensure continue this assisting the We our is started monitoring and for hoping no closely are intent extent region patient sites and Ukraine. I our was provide of the in incredibly our the Poland employees of month, to Ukraine. Earlier our exhibited Russia proud this Poland, to I'm at to halted trial recruitment remote my or in full by the support to with patients at extraordinary in many been time dislocated are customers countries. new nearby or working in the in has office employees finding been which and forefront, activity safety being and the Patient deploying efforts on-the-ground in

in In the increasing a in financial development grateful in beyond year, additional emergence and million. approximately and of They for continued are ICON strong. and their the solid operate best and Our of and no region representation remains are to and risk not $X excellent for [Indiscernible], environment X% an challenges for the in customers, to as full assuming for change and We the a double-digits the on clinical up for have quarter, in to our future. Despite RFP Ukraine year-over-year in above our mitigating efforts. culture low colleagues an Ensuring impact impact estimated the abilities. we the basis. gone war dedication was Ukraine patients the X staff COVID broader volume Total region their subsequent the foreseeable was to well. Quarter variants, from our from ability tireless anticipate revenue trial the continuity in of further only by the of war quarters,

grow, Quarter slowdown funding consistent and spend witnessed Biopharma the While have saw to R&D in have the segment, RFP levels we mid-sized not further market small with the the we and Pharma in we activity XXXX. which in continue biotech strong X, in quarter, the seen was declined

we capital emerging and signs would funding business, to I X,XXX supporting delays infectious private as uptick In see continued areas companies. appeals we the consultative in this that worked segment over have note Additionally, haven't project such or this strongly level strong venture therapies in neurology. rare And last with has in of cancellations an our of novel companies few segment. oncology, model seen and Icon the to disease, biopharma partnership diseases, years, customer with and our

We confident expertise share ability X,XXX continue segment winning the market dedicated across and consisting Icon's Biotech with leading and unit, purpose-built employees. Biotech our to small giving of have farmer

low, dependent strong all capital remained ensure in segments exposure market other to companies backlog Our robust, across remains market business wins key the and foreseeable should our our position future.

resulting XX% X.X% company in another and Our our net Sales combined for an performance our to business grew wins quarter of $X.XX of large Strategic billion across a business basis. quarter, advance the the and partnerships are XXXX. book-to-bill continuing a a business development X.X% particularly continued and Backlog trailing our was quarter, on key several four to performance in basis, demand presenting of net X.XX business farming innovative unit was for on expansion reflecting of billion sequentially $XX.X opportunities excellent representing broad-based all record increase year-over-year discussions XX-month that solutions. strong integrated across quarter units, across growth was segments. in for from

- but set played diversified expertise. focused, offering, with role customer of customers has as clinically and a and development flexible customers seek key new a Our in centric services broad existing business winning partnerships and renewing along mix models

pass-through given results of partnerships. difficult events quarter, approximately operational area. and of of is key revenue our achievement and leading well-balanced of and quarter demonstrate innovate building foreign operational to in was of total to will and year-over-year XX% combined adjusted consistent on one the performance in share meeting comparisons its company on our grew of success was XX% mid of quarter was expectations commitment currency strong in like I Ukraine, initial high headwinds In overall quarter, with ICON, to strong in is SG&A with resulting focus adjusted our insights the customer in engagement, level, to X% in our our pleased macro revenue the headwinds, business a our strong to revenue on in of in revenue segment Biopharma. together to enduring with COVID initial and of basis we as These clearly cost this X. our commitment way one, partner combined of which the partnerships first choice on particularly growth Despite currency small to cost year-over-year. the high our XXXX. partners further from to customer due has XX% exceeded a X%, stayed performance ICON which held studies share challenge very is One per constant basis approach large At this and year-over-year or due basis, was customer synergies. further and also maintaining total as creating Strategic accompanied approximately the quarter management EBITDA and first our and XX% Quarter related one Financial these mix our in $X.XX, in excellence. with impressive continue bringing a us collaboration factors a from in why new fluctuations, customer war Solutions Biopharma earnings several

have the percentage one. R&D $XXX of spend, in backlog quarter a that a Within and for overall annual revenue Biopharma again than segment, less our small companies represented mid-teens million

target the loan quarter payment track further to EBITDA. leverage with Given the our b end reducing end exiting on our X.X the Quarter of we of approximately a adjusted down at times adjusted our able from to We million times leverage efforts aspirational XXXX we $XXX collection of ratio hit believe X.X times facility, are of quarter, a term in EBITDA X. our at to X.X on cash the were make

throughout Sciences transformative union with X as completed continued progress one Health organization. since mark we a the Quarter integration as Our PRA year passed combined now X operating months announced the we that

to efforts of completed a through on through the more to advance, continued bringing globe. our enabling focus of Our unified have we importantly, integration which has organization platforms facility implementation connect now the physically XX our Even experience employee stuff across of together common more the and will will our are other are come live the critical advancing this enterprise-wide human enterprise-wide system A of implementations, quarter. including milestones. technology X months. capital management few system, online we several systems Tier reaching our which next in go first And systems, deployment, few

[Indiscernible]. quarter as to-date XXXX. phase, in Our was perspective, And $XX our continued in From the the first activity led were new our synergy approximately approximately realize services, with target, Quarter the progress early of strong XX% the have quarter by successful integration cross-sell our enabled synergy again March consistent efforts our with awards, in $XX on our by activity million X, at in XXXX. and of awards fourth reaffirmed laboratory million in Cross-sell in Day, to cost we Analyst or our expect targets. synergy revenue we

related Quarter our wins this work in business Revenue execution COVID in several additional excellent was COVID as Backlog were our vaccine related an additional time studies new X% factors vaccine in and Turning to some ending COVID of related business business part study of consistent evidence representing winning in testament quarter. development leadership trial programs These area. percentage backlog, the be total approximately will to related COVID we and a studies boost to Quarter for strong notable in ICON’s work X, that it related was revenues. mid-single-digit was overall X. our with to successful to impacting trends, for

X, Quarter site revenue dynamic our approximately in COVID access of variant the in the new coupled throughout awards to increase restricted of holds causing of staff total reopened. slight despite site This in some with represent the sites had aside the capacity. expected we will lockdown a restricted the site X% revenues -related number addition resilience XXXX. COVID in From war the and continued emergence from in year China the from saw for previously full quarter, access impacts Ukraine excess With we that and won perspective,

totaling approximately XX%. Now

due of across seen Ukraine. recently more access or have different COVID volatility in from to we While in either the levels site war regions,

to are and deploying lessening have would impacts faster trial that more able Our seamlessly, remote teams two now substantial by solutions, pivot more based been years ago.

have good We continued across of components, adoption customer seen trial development. decentralized segments hard of models particularly

tool, our pleased Trial this of decentralized patient fully with Quarter currently, commitment While site broad We the two team. executed multiple and our selection is network, example and selection services decentralized and on recruitment Women's in power have great study number operational trials industry. decentralized optimal innovative of start-up the in in site have managed with Health to we decreasing our technologies, times, will to are the overall tools, Search, utilizing deliver efficiency a rates. Accellacare site started patient delivery site by set recruitment to normal to recruitment that trials and trial Digital of a noted X, Clinical sites, platforms invest improve in our our decentralized improving customers is we key recruiting in further being were on insights our on the full is number remain that components. concierge study clinical center, focused study One our a reducing integrated few continuing phase of services services,

to our solutions. to We've sources, of user set the as for Search One updates look experience tool better opportunities integrate with across mapping. During data well the to and only interface of to back-end quarter broader enhancements entire to data add data, in continued as we invested enable further not but sources valuable

as unique partnerships access targeted and ownership health enhancing customers. not advance that necessarily to results producing of our care outcomes the more for intelligence well other sources, further analytics as focus evaluating Our opportunities while strategy our data on our capability, is increasing our and

our is enable of more way of by automation. robotic process clinical new offerings for the be we have the automation, in customers area and capabilities focus organization and timely trials and strong strongest outputs Through our saved to this XXXX Another business continued delivered level completion a one X,XXX capacity provided example additional with days our A in in over Quarter productivity the which been X. great with has higher of RPA the a far, ETMS, of of at areas so in for consistency of FTD quality. can

in we range enabling across in to us workflows monitoring continue to advancements trials. employ leverage clinical In technology, remote our addition, a of

We are enabling unifying recruitment of ECG's an of remote and and and scheduling overall combining our working, way sights towards into a integrated capability. single patient lab review reports,

As talent, innovative partners the continues see solutions, to increasingly investments believe with excellent name the provide We it their a and in bringing recruitment, pharma improvements the identification, an new to and bio and leading are We industry evolve clinical will patients, enhanced analytics long-held lead stakeholders. health paradigm technologies, market our create our opportunity research to basic focus data, customers challenges: outcomes clinical opportunity intelligence. remain few. to our to startup, development - to study deliver excited site and look all we care for to in a by just of on to for

quarter, $X.XX first earnings billion the we $X.XX to to demand With in are $XX.XX. continued the strong range positive our per the customer and of guidance share in adjusted environment, range revenue XXXX of the financial in reiterating performance we $XX.XX

expect March, margin Day Analyst in As EBITDA an full-year indicated of XXXX. adjusted the XX% at in approximately we our

and This market Company and engagement their month, of and behalf employees the awards, achievements, companies operational XXXX to ICON. our year on XX,XXX Island's financial finance the recognizes to on business dedication of and of position, is I the attributed the of earlier award honored this accept world. around award Finally, was based

throughout Before we and focused employees of our our Operator, to would session, patients success look to world. remain commitment for around questions. year efforts opportunity for on we're take continued moving We now ready like their an the the sites, and Quarter as to our Q&A X. I for the to recognize customers, organization in delivery forward

will we [Operators participants, the begin Instruction]. Dear now question-and-answer session. you. Thank

line the of Anderson ask Please The Elizabeth question. first question comes from your ISI. Evercore, from

for Hi, much morning. guys. question Thanks Good so the today.

of reports the notable be I details phase would question you your stages competitors. thinking helpful we're the think just on in are the Biotech your of I various given phase you distinctions I impacted any comments things one business? environment, later business. the provide there very about the some you Would from would that was could flow have point funding how and RFP -- just head across guess Are seeing your helpful. seen between I think out earlier any you things,

customers of it's flows the was consistent across and We're nearly are continues referenced business. the Sure access business. very quarter of area in particularly to are opportunities a the particularly in to double-digits pharma, X large in segments the in was RFP consistent it pleased being strong, positive getting this we good new terms and those That picture. across with strong and low Quarter Biotech been the from all find it

have you customer for Biotech or then And that it. any the in follow-up, prior on that and does just quarters. or visa, non-safety versus restructurings like anything financial efficacy heard of side distinction Got a any

we No, haven't.

screen. have be We that one. hasn't my radar that across very on No, come to direct

is as I well. his think shaking head Brendan

happy. base as debt we're and you onboard customer very from or anything customer work nature. the perspective. lot that in our my to are have provisions increases Yes, been certainly stage, there's we with sure those this in do At with -- good our make very set happy good of customers have, them the see funding no that really that by We they access. will we've we No. a about And -- folks

very that. we're with So happy

much. very That's okay. Thank you

from from Please, question ask Coldwell of next Eric your The Baird. comes the question. you. line Thank

you. questions would overseas. I say afternoon, X Good Thank here.

impacts you capital then would -- for these just percent if markets Alliant recent pre clients. if would Elizabeth's And be First, and follow-up was Are you or some missed it the Thank could chain us be, I'm I -commercial much. called supply on labs update the my following just you could biotech's very on, share sorry transportation is if you here business with this, components, additional be give chain the provide supply the in lab-based and specifics mentioned you impacts quarter. anything freight, specific a the them around curious or could these question, revenue backlog, on of helpful. I of more think would question I of additional on you percent detail.

Hi, Eric. Sure.

been So the that that we thing in probably XX% I the way mid-teens, in the definitions you're going our Whether they in do, terms Eric public screening and a with been less for saying think careful we have in these been, is come been we before and and forward, process get than of to a bit. of is, capital probably We've in that markets work defined less we that revenue very through the we we've we these That's and who capital are like little opportunities careful we've as this the exposure would of But revenue, viability vary focusing backlog very spend dependent, in companies have little checked category. in that's financial particular, all the entirely on. in around as at door, debate, annually -- than backlog continue we've customers. we a -- we our and be of $XXX can R&D. space, million think group in market our

remains the our I an us. say, But as up that, is look for mid-teens around very group it area hard. that finance So it

away, various around supply some studies has something it -- those they we're address, anything challenge couple move move complex have the had been a to kit at we'll -- oncology the opposed transportation, and of be our of that. to to able and we're to challenges, delays chain do particularly months, it's the keep of those we've for able obtain it of doing it a out to terms really believe In short-term of it I unless so in the has forward But components was to components components We problem particularly of move challenges. though more really led in The space, relatively those or been challenges to expect the -- moment, around supply that some kits, suppliers speak. has in like next

much. very you Thank

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

talking your thought was taking just questions Steve, what pulled side, being guys. synergy you're moving kind the for of focus being inflation it about you big Again, been cost a pieces? about wage talk have it the expectations. on forward the coming there? just remarks, the the of SG&A in some lever the that about Can seeing you ahead you for talk a of during as prepared on Thanks touched you for investors. a inflation margin and focus Can obviously I nice it interesting called side. out is

that scheme Yeah, Patrick. We that -- think in area. we've got a model really good in

costs of it's centralized, scrutinizing We control. -- the a are relatively

etc. got last across HR, And PRA or so it space. track in whether IT, the really that I think a be global record pretty years the business think, that of the services costs after is right model. good bring synergies gain bring carefully? been a some that What what group, dozen able, Sciences administration, we've over group into -- facilities, been together them we we've we've And as Health I very to does those and

the area of been the That's substantial, IT number Now around as we're areas the We IT $XX identified in year. progress and we've and all we some well. but to that the with. have that HR can we those some for XXX We've forward that. been about this doing a million process in fund going this believe think in it of model and the said, It's the continues referenced the down put down that's the made identify specifics, or able fairly that's in -- We've and on I that's a feel at we to range, integrations the I place get I it of to scrutiny XX mentioned, saving. on with comes as substantial clauses working very To really comfortable we that been moment. the on costs. applications office broad target the continue a leaders

the that? are then that, That's the increases for a reiterate about I modeling the harder. Just it again, COVID talk just just touch as call out better, back assume the can there? implied maybe bit on seems see just ahead headwind year Ukraine, in and encouraging overall like helpful. from you so hitting anything number. FX on linearity Can look the little we FX a Brendan XQ, the little things then the more on And you you roll-off, the guys to of FX, of impact, And side. one maybe the given organic maybe the cadence half the Russia, first quarters. to

just we earning model values. in as of we the curious cadence should think So and terms about how revenue

Yes. Thanks, Patrick.

is called not March the right quite year still where right and more revenue for on a continued it's right a the again, the a revenue are the which full in so we of to position was we the actually face QX confident in a It euro, now the is dollar which obviously it, will year. concern ballpark see we eye of we're so is guidance, and of even in you on something the about As guidance out. $XX headwind came now, headwind primary FX the of like reaffirm dollars our the our keep and were talked and dollar, into it's we obviously Obviously thinking on can in obviously enough a we that a obviously currency mentioned $X.XX the payer. it's Certainly weaker was XX does $X.XX I at I million it year as moment. about

the revenue through the QX, that trials your big think lapping had biggest the the will one, year course nature we whatever of said of was how COVID that and point quarter were had in we these we on come XXXX QX. is I probably doubt good QX, sequential and and we

be so represent on half we singles. mid-singles that would more will toughest we did high be year And that of comp the And would first second the like say have. half

get year. year, given that a back big in that from through single-digit tough thinking from constant just seen the we profile that next you've of basis a of obviously on work QX, feel the remainder is perspective how and we is into in coming and saw QX So we're quarter X.X% high the Quarter I'll decent about a X QX bolus are we X, say X, work COVID the we once in and currency a Quarter performance through QX to comparative

Very you. helpful. Thank

comes question. next your question The from JPMorgan. ask line of Woodring Please from the Casey

my taking for questions. Thanks

pricing given embedded wanted trending? How to think for environment, year? chain, guide factors, Just supply we about talk should how about in the the different what's And pricing. macro is Biotech funding all the

than but mean well. to there is that customers retaining Casey, challenges this contracts, that well. say all been. be would to ever I times an probably negotiations, understanding It's up, in understand very competitive it's need expensive as or that and are challenges we I they is inflation of our pricing of the easy, we as but I pricing -- many market as have not markets anything we a and pay do would terms renewals some labor -- are stuff same say be MSAs terms and of it's that salaries the smart, can at say sort moving are other wise, bringing have stuff customers whether this And new of, in is of it's don't aware ever favorable trending in business it certain

pricing would I say say I as So relatively is the positive. environment

pretty we and also of the well off normal, from more Although to, as the hence I've optimistic gross side medium-term. alluded our balancing challenging of so in margins our think a cost can in more little perspective, we're progress how than terms is things I it's

customers? in we're Thank Biotech And you for out and of then as you. on these that impact piece, about license some seeing? with Pharma current given partner some perhaps the funding large this there source anecdotally Pharma you. of industry advantage looking Got there hearing just environment. more any with smaller s, call guys, these And be Would maybe would a Biotech the you relationships competitive for large of a you're one trend the your given market

occasionally, and We our move partnership on partnered a our able partners acquiring of to we're companies, move we've we've examples project company, that's been other good it's a and happened. have certainly to with our where that into relationship, had a basis, way, smaller customers gone relationship with doing company been the company. relationship able move that large seen a a or and and And large then us even few a to Pharma being smaller with a scale larger

of have them five generally things, Biotech the would and So a in positive I it from wins. works we companies, XX had biggest examples It's led just substantial about us. on small wins the quarter, and say were doing Biotech some side both to we that. for of of ways,

ambitious. commercial a terms wins. our to customers, so I think spikes, it been in your then being the and go partner the before, small you the me Top these I companies space. clinical Kate. us of I've make drugs into a these them very the are and in to and have Excuse well, market, Biotech more it the very All ambitious, development clinical their potentially to space. number move to companies money this it's once But of have have, to really continue sense allocating Have Biotech said through They finished in more and their are they we of quarter, substantial of with Top questions? backlog, XX XX all half spend this companies. wins willing are want To

you. Thank Yes.

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

morning. you taking you seeing good maybe guys. hoping you're could traction post-merger. Steve, Good for that to was Thanks my the add question. additional afternoon some for Hi, color I

that highlighted. cross-selling you You have some

coming wedge the worked you that And some long in to your the hadn't relationships at that with about together X able as been DCT talked -- integrate Investor that that for You you, quite Day into time. have a capabilities Big you've nicely late vein, Analyst Day, Pharma are of businesses. way you

in the areas resonating the hoping client you on with bit drill are maybe just audience. could kind a what So little best of

a start the quarter not the that engagement, right customers on the home-health, we of made are our in a of terms nursing but platform that. on the around acquisition in the few in with itself, into me as years a platform, of we're platform that space platform. very large we getting DCT we're And this just discussions DCT, services there's our and offering Pharma, the ago that taking engaging our a group, our also sort approach, relatively customers of the and coming around of in lot terms that around of number platform of around let the but approach are Well, of integrated not our it the is course, together so from is new Biotech but release the across the but early side, number at site spectrum of large well, on But of lot our just days nicely. components wearables Mapi platform network expertise, being integrating our

otherwise care, entity. has like, In around we have, sell. We're the organization what about terms that want sales are there's move to all we element that home an you independent if referenced our that together organizations we've network of the contributing continue remained doing if options inevitably two lab of learning The revenue bring $XX to well being or imaging I case what the the large health million site as cross-selling when again, wouldn't space to forth, in space. learning you

million going longer-term. more think a see So very revenue target our the we is see medium achievable in over good to progress there, forward, but albeit, I progress we expect synergies that $XXX is further to

another Of where believe last partnership further going partnership some awards we're we of Big one in made We've we agreement. end up time towards very to Pharma. take always the in online course, saw come a actually move significant mentioned on the customer We these terms that think call, some quarter to we environment. the progress with

coming We Pharma we their customers conversation alliances but Sciences, are things partly you that now their now, for strategic probably I feel with and yet, DCT key strategic And really approach, haven't further a the fact the out and both but large there all together talk so or is functional of wearing while, policy the believe one large to were PRA that take with partners in our particularly being when These on we Icon that in I and a relationship with CRO. a I are others every partnerships. one process. independent an that made do weren't scale we renew of independent expertise partner back that then there bit to to. partly the, as customers want an some Health a client and really on with in feel couple played rationale both good they're progress little they we of The our the abilities. for these are looking a

we We are that's part want exactly of that be. conversation to where and

I related follow-up this. that. My Excellent. is capital appreciate question the around to

So would what to you just continue the those to things capital would all complete? down with like strategy that your to and -- you network and if that? do And I example, look capabilities? pay wondering be? building site would moving the type the that's Do strategy imagine target your For you term. yourself debt your these goal near to know the case, related I'm to expand -- acquisition what is a those see once back primary tuck-ins what tuck-in in cash-generation is is

you our X% couple X% best capital, pay rates Well, debt. certainly Sure. next that's the in focus on term, and that the use quarters relatively quite and interest that as into repayment, of obviously short middle we we is correctly the going debt our to said, in term short the of think is to see the

of we and acquisition. be I well making we're progress closed ahead where the to we'd schedule when that we're as on excellent thought However,

think And we front, either on how or about even deploy an starting our capital M&A a to so we repurchase. potentially are would share on

for sorts or end debt until those this year, thinking sorts Although sort the of we and those we repayment. wouldn't make as at that of discussions on towards look that open progress of we probably remain but that

areas I of terms would things, we a side think M&A there's In number the look of at. of

to want further continue forward we be, like things in investment want going simulation to a space, it. We capabilities intelligence of our are our JV are organization that a data are part a we we of to space sites opportunities, health that customer don't trying on-peak there bio a are potential particularly we data and to certainly site and and is think in or care keen I part much is and with areas rule there's home our things. can that's do then that out development that health, analytics of required the is be continue want data investment we of so opportunity we that certainly forward, And believe and very strategy, but strengthen at. then outside to the that We and care that in key The core side improve all have on space. our core that think a crack. area, don't we're number to to certain challenges develop areas those to capabilities, sell well of areas moving network we there's we're of going clinical look as that

much. Very much Thank appreciate very it. you

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

tend. for Should burn step work that year afternoon. This we the we rate Good and after has to normalize as to question at stabilized Salem how that's down -pandemic is level to this Luke. expect We in on see had pre a [Indiscernible]? traditional calling low

outlined that's where course we Yes. we about our and XX% in as obviously, I'll we as well the take on that go through that year. one. We're of the Analyst we're Day call, -- in very thinking our focused

has stable to looking that that end through year. QX as see You been into of level this and go in back maintain QX and we we're the

if course, right. going And those project clipping I be time. and of at business, certainly math, we out on through trying that. we As maintain, take looking any into as X-year to plays to There's mix of you're we're out X%, to going think our that go into work a go it's you something be XXXX, double-digits the just hurried

of of our the burn like just to different businesses solutions it's that has math how other works out. that's have rate. we that So a cadence strategic But course business

through as quickly move our at organization, we in sure the XXXX. our And the certainty ballpark, make is as as single-digit, and we possible least it stay X-XX think we realizing certainly we're revenue in I an as can. out to to high pulling beyond backlog want

to going on stay keep as the that can are double-digits. focused in trying we We to as

Thanks, replace size as The that coming gives as follow-up, to you vaccine not be the a is trial And can helpful. worth large. about talk the guide. the going work online in confidence that's definitely longer-term you to

us were there? how help paused differences So some the usual? economics could that think about trials in work Given the you of pandemic. And X those than Phase is more during

Thank you. To get your question.

we we out. I have think strong in player a are believe work and vaccine [Indiscernible] a in believe follow-on work, franchise mean, I to we we certainly strong terms space in so of the that spice very vaccine

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day, yeah. That

down revenue the vaccine blow not our development in with The perhaps hope that that's is does that helps no plenty opportunity it work slow back and and and where of where XX% of is oncology, So mRNA to we that's done to of the in being the our terms towards oncology our That's the of we're our of more you backlog. clinical the and is bulk work less moving question. XX% operating. I which portfolio with vaccines, rate. network infectious for related And around of particularly around technology. the the on fast, sorts in about see just and those of change It burn areas. some disease, ramp question

It does. Appreciate it.

Okay. Good.

Please Thank question. comes DB. ask the you. from of Bowers Justin [Operator the The next question line Instructions]. from

with in of would full lot terms a the mix. Hi, afternoon. color going appreciated. highlighted of maybe but anything the could little you Pharma solutions, call out a to talk more be backlog is you about and downstream that I further study wondering in large wins there the quarter, know I there was good if FSP versus strategic

Biotech correct. we said, about and ran Then a be, It about Biotech as mid-sized off more our Brendan, is or about of versus haven't spice to to of seen backlog tends XX% and me Pharma, the is sort terms touch change quarter that large the let substantial to I backlog maybe add so percent, in have in of XXish large, XX% that if All MOD so terms XX% any mine Biotech. Pharma over last said, ordinary. small success those changed and And and winning are of business, that see as particularly bit in a really and of out large so government work work really then business much. the in out it things terms had X to strong quarter much in call I good there's mix very Quarter was We as little not that of hasn't I Biotech Pharma did continued FSP. Pharma other our and a

with We in that continue the to leader get significant space. opportunities market

that ones partnerships very significant the do value with we're We a frankly, have FSP prosecuting relationships that and process. the a in space, Pharma way we're and area, FSP RFP so those that like the in tend bringing typically that little an But to those little have that in and can model. along, we customers, creative in good relatively bit being volatile. a customers little be from very hour bit creative group innovative, to Large a are they opportunities large come several innovative opportunities

but So to wise -- of we doing contracting, extent allowing also and with operations integrate new work seamlessly -- To it's their new their customers work. the other ways which it's the those with can provision just us relationships not operations. from that to resources, that working that's we're functions of with develop lead and

and business. opportunities structuring of should are out they more beneficiaries how purely outsourcing are should our tend that and the positioned Most to they few or to strategic the talk full-service, through organizations them of those they we've their or coming solutions purely through sorts whatever be Sometimes a to group well, both and have be leads work. full-service about our very ourselves things organizations into and of to that FSP be doing customers, mix full-service

the opportunities business, be to very across a of right led it's and So business important to our part continues mix.

All COVID color. it low-to-mid in teens? COVID XQ quickly, XXXX? just mix, then if what proportion was us I In appreciate was real can And revenue terms all of right, the I the recall, you remind mid-teens, the the

Yes, that's correct.

Just there Yeah. 'XX. was in mid-teens QX

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you. line your - Bank Thank comes Q question. Kim of next the from ask John question The of America. Please from

XX the the past for you've strategic relationships forward have Thanks And one or two s, mentioned afternoon. have in color on Pharma Good discussions. the with in still the well, I been think Or begun we you your with Top it and -- as are Top moving -- guys or here? that just Is is you other one organizations the seven the the discussions even? have we -- guys that the the forward Are with censoring? XXth that moving XXth the XX. with has XXth

on which -- obviously focusing we doing the We we've -- seven those terms the of I'm until are doing But we're were not advanced with specific, so up John. union. sure the didn't partnerships, in strategic [Indiscernible] But time are that we with strategic a that. yeah, have work of customers.

are with have to we've we the where some in the I'd we've one like last that think least positive made substantial quarter seven to another we'll more think point of next the that several or those. And advanced on in call, two, mentioned I by that of more at one. news there those progress

be progress with have long-term that. That's our all we and [Indiscernible]. course. XX, partner in pleased progress of we're the as really we're place we aspirational, of making I'm that So the to aim towards good that's making certainly But

for me. all you Got Thank you. that. That's for

for John. Great. Thanks that

conference for to the are further ahead. questions. your Cutler. remarks, Thank now would Please no hand to today over Steve will speaker you. be I closing like There it and go

have pleased a today, leading progress all, to strong care have you, organization. day. of become employees Thank health of Thanks and the our as we're applaud good listening intelligence, Operator. Thanks, world's quarter the everyone results delivered to we contributions another for

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