IQVIA (IQV) 22 Apr 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA First Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. [Operator Instructions].

call recorded. this reminder, a is being As Thank you. the would Investor Andrew to like Relations turn now to call Markwick, Treasury. over I and Senior Vice President, Mr. Markwick, conference. please begin your

Stengel, President, will our everyone. IQVIA call, those be Thank Eric for Good has be be Investor Ari call Sherbet, Planning Financial this and this also our Executive visible Today Events Bousbib, Financial Executive President With Thank Director, Vice First Chief referencing Bryan [indiscernible] will ir.iqvia.com. are, Quarter presentation call General and this of Associate available Executive Childs, Presentations Ron you me you, Vice Relations Bryan following and you today XXXX morning, Investor Senior Analysis, Relations Counsel; we Officer; for section newcomer Officer; the Casey. will at Chairman of President during on Call. Earnings succeeded on and Chief a our Vice website joining and and Nick that Bruehlman, and presentation This HealthTech. webcast. for

Form by from information stated I Actual begin, certain listeners results with and that statements forward-looking the the on which this by company's our subsequent due differ Securities will including the filings SEC management to during could materially and caution we would conference uncertainties to implied statements. like or call Before forward-looking XX-K discussed include risks those are and Report associated Annual with business, filings. company's discussed in Exchange Commission,

Ari I the the included CEO, with GAAP measures financial measures and Chairman call and accordance non-GAAP GAAP. a these should considered to to to be discuss in not turn reconciliation call measures In which of to like now addition, financial conference a is for and press we measures our in on A Bousbib. non-GAAP would release call, over this comparable will substitute the presentation. supplement prepared

rest first we this result today. strong quarter key joining metrics Good a and Welcome thank have reach for in you year, to plans all morning guidance we an outlook our quarter morning again everyone within for already This of original double-digit that the and growth our for and XXXX. The performance thank improved reported pre-COVID raised us financial of results XXXX was we as you, Andrew. of provided you guidance. the and last with once

Our revised that developed developed are in been of the speed should medicines new reset at ways, too accelerated We've commercialize. long. drugs lasting The XXXX those year of many also plans. COVID The which our and today guidance timelines long a company significantly and technologies exceed the in how was crisis adoption are we believe development for it expectations the terms new In bar a the for for time the for traditional will original vaccines industry. raised a force were of be. innovative change XXXX obviously what has in and saying

for very These and down as get pent-up provides two, pent-up temporary or efforts COVID were to positioned a that also has strong becoming not crowded engagements made this which on the funding of the across with combined areas, by started trials What we All had deep drug during and uniquely demand are demonstrated the were pandemic biotech demand that that was there even industry. development and to differentiated has can our the one, did our we slowed lines. The bring resolution relevant offerings. record of fine to focused. insights the clients trials highlighted power everyone our improve therapy due they that levels and client that many clear out how to new commercial is pushed backdrop right more a of the expertise is is of IQVIA lot

the conditions, lay favorable process later groundwork Vision Vision these of progress this of on this hold phase in-person, goals. for for revisiting and our you especially plan next we've our at are this result later year, XXXX Conference XXXX to of tuned to one the year able a we so if stay journey. do our more started update an Investor We We information. may the As

from let's performance Revenue range. pass-throughs. above review and half For the currency now, our was and guidance end grew beats from for the at the $XXX About reported quarter of first these on million high constant XX% of basis strong quarter. came operational XX% higher half was

high was million EBITDA adjusted revenue $XX of quarter due reflecting productivity range above performance. our the XX% the end guidance grew organic to revenue beat entirely our measures. The First growth and stronger

quarter EBITDA drop-through. $X.XX adjusted entirely business. color here more diluted the of XX%. EPS grew A beat reflects the adjusted First bit on little The

commercial grow Our market. as we new the in to launch continues offerings technology presence

salesforce client artificial During the learning countries. the optimizes XX technology automated algorithms. effectiveness. of advanced the increases by XX in is and solution This on SaaS-based activities their quarter, best a action recommendations machine our client platform that top pharma based deployed intelligence It providing sales marketing for call next success a field our tool

strong. and this new XX and base deploying clients clients added Our OCE quarter XX,XXX CRM win We rate now have users. about remained another XXX

R&DS data which team patients. a as by platform as demand. strong and Our patients studies World is is technology over XXX,XXX acceptance. We XXX we've solution collect platform electronic well awarded utilizes over been million during is date, the clinical experiencing X outcomes eCOA this to To and surveys seeing directly our or enrolled used interface clinical with teams also over cloud-based user from tool, user-friendly launched completed. strong This assessment Real XXXX

to R&DS. Moving now

strong of our given revenue business. including pass-throughs. March achieved pass-throughs. including a the ratio build our R&DS net and impressive book-to-bill all X.XX contracted book-to-bill momentum and in strong bookings the X.XX growth. first our continue X.XX These ratio In quarter, numbers XX, to more contracted excluding was pass-throughs LTM pass-throughs on we X.XX excluding our are We At obviously

XX, XX.X% Our $XX.X at R&DS contracted backlog pass-throughs March including grew in billion XXXX. year-over-year to

XX is success hybrid the revenue by result, $X.X The first including we backlog that's now new therapeutic the months' virtual million experienced from trial up in areas to over on next In R&DS year-over-year. in or trials with offering cardiovascular billion we quarter, building our XXXX increased XX.X% trials. sequentially and won disorders. [indiscernible] decentralized As our decentralized a $XXX team metabolic

We are working top to pharma clients with and recruited patients XX date, XXX,XXX solution. decentralized X trial our of almost the advanced we've using

interest on we in Finally, the April you X, saw Squared from acquisition Q QUEST the Solutions of that remaining Diagnostics. completed

increased bio know, lifecycle streamline management. bioanalytical, bioanalytical technology and strategic making vaccine, you for is and These service across provider Q growth us safety, and global industry-leading testing specimen our laboratory to capability, expanding performance. decision opportunities capabilities build consent our Ron? this gives greater details that genomic for Squared in transactions clinical financial attractive genomics us With market. with more the best-in-class As in I bioanalytical, market with Ron an turn trials for on we flexibility see it along will to as bio over and

Thanks morning Ari, good and everyone.

mentioned, very giving first strong on Ari is you start would some quarter. a by I As this detail revenue. more

rate and XX.X% quarter. points of currency. grew R&D at revenues was revenue Pass-through improved at the to on currency. of First reported XXX XX.X% currency. revenue and basis of growth R&DS constant XX.X% billion at quarter revenue $X.XXX for Analytics revenue of were reported quarter first constant revenue & $X.XXX FX was were a billion, XX.X% Technology million quarter constant on XX.X% up currency a in Solutions, first reported which $XXX the XX.X% actual the $X.XXX Solutions constant and billion at basis. rate down tailwind CSMS X.X% X.X% and basis a

for grew adjusted at share were the net per the COVID diluted net income XX.X%. billion Moving despite of $XXX down the Margins was $XX.X another was million Adjusted R&D year-over-year GAAP net from XX.X% March quarter, up first $XXX business, earnings per pass-through P&L, margin delivered of representing and million Solutions XX. lower was quarter million exceptional $XXX higher and basis on to XX.X% quarter income and significant revenue $X.XX. work. for new backlog GAAP at XXX diluted adjusted expanded EBITDA $X.X. share earnings headwinds growth points was

mentioned the beyond revenue indication quarter XXXX, currently of momentum the at course the which year. grew was we of that further Next significantly a is backlog XX billion, this $X.X from year-over-year first continuing business months' and see this of already includes now up XX.X% stands and metric

let and debt Now, billion debt of the us $XX.X was $X.X review balance March XX, resulting sheet. totaled equivalents cash-and-cash billion net billion. in At $X.X

that improved you our may the X following Our is EBITDA recall net XX committed or ratio gave was and since the March ratio we when adjusted turns below just to that this XXXX. XX-month to leverage X X-year to below X.X in at noteworthy, we merger first XXXX, you particularly exiting guidance, times this trailing deleverage time marking times

this XXXX. achieved have target to are We pleased entering

was First million, flow of flow strong program. $XX leaves We our of the with remaining $XXX was shares million, $XXX quarter million flow with repurchase share Which resulting repurchased under $XXX CapEx us cash authorization very quarter. particular cash operations $XXX of flow, cash cash in the million. free in in million free from

Now let's turn to guidance.

when again EPS today You'll venture interest as acquisition joint reflect in we and QUEST venture's in XX% transaction. revenue on consolidated $X.XX joint prior we're elimination our already back guidance guidance raised venture, the announced to we recall the joint by the adjusted that April interest unchanged, financials QUEST our XXXX the the follows. our X because minority Squared the earnings. guidance of course we revising wrapped EBITDA Well, Q upward of We for to of

and growth in range billion, we first at reflects high guidance. at of business the FX The to XXXX guidance million $XX.XXX year-over-year We guidance in our is and our billion the the are a revenue also $XX.XXX full-year that revenue raising the resulting increased the midpoint XX.X%. continued which of see absorbed low range end to operational headwind quarter XX.X% of and guidance, the This of range. versus an strength previous $XXX represents increase new the the both momentum

revenue expected a perspective, Technology the mid-XXs. now at to mid-teens and XXX a year the be full-year compared is Solutions grow to basis R&D to about low- to Now grow year, tailwind to point rate expect the in segment FX low- percentage From revenue Analytics a full to prior we & growth. Solutions of

Our We're revenue raising our also slightly unchanged. CSMS business down previous expectations profit full-year be remains the that would guidance. in

and in result high both range of of low at pre-adjusted end increase the midpoint. a stronger million at resulting the As guidance it of an the outlook, $XXX increased we've EBITDA revenue

which year-over-year growth full-year XX.X% XX.X%. guidance, $X.XXX $X.XXX it's to new represents Our to billion billion, of

guidance Squared result During to $X.XX transaction Q $X.XX. EPS I range X, the the a as EPS, we diluted raised $X.XX by to on of that, mentioned adjusted our April new a of

bit over Little tax the both for of year, and This diluted year-over-year the adjusted to remain detail $X.XX now the new rest the still are expense of continuing a expected we're and in a XX.X% resulting in operational an be currency to guidance amortization year. of high approximately full raising XX.X%. or of approximately effect is EPS range, to low and to for depreciation guidance $XXX the foreign rate XX% of rates be is end for $XXX year. current We guidance that that to $X.XX on interest somewhat P&L the growth assumes assume million exchange of effective expected the million

between to billion finally, turn growth of be end to XX.X%. to XX.X% XX.X% to $XXX to is assuming the $X.XXX XX%. XX.X% of growth rates the to between expected be up remain reported and diluted guidance, represents between and EPS let's which quarter, adjusted constant million Adjusted $XXX $X.XXX is and expected second $X be reported $X.XX, second to the quarter EBITDA which million, of Now or FX revenue XX.X% through quarter expected is represents billion

strong improved billion, of $XX.X and quarter very key double-digit reporting R&DS again once up year-over-year. revenue backlog So segments. delivered over metrics. to XX% both first summarize, R&DS our all XX% financial growth growth in results, included in we This TAS to

are from adjusted cash finally, trailing XX-month and the diluted and see revenue revenue billion, given we in our $X.X that again year-over-year. this strong net times EBITDA business, we increased EBITDA again XX-month Next flow guidance for improved momentum the strong up full-year to raising adjusted once quarter, X.X EPS. Free was backlog to XX% leverage adjusted

of the we changes past for Before who I like years and Nick the Q&A, moving Relations past the X Childs, the to make come our Mike company deep Corporate finance years will I'd Investor will Andrew open of has and over the IQVIA as capably, Markwick function you has think Fedock Nick as Relations for of leadership for aware over served FP&A for is has led to organization. our R&DS financials Communications. unit who take as SVP call on couple CFO unit. runs and well has of and currently of very X and agree, of within Investor function succeeded in who a knowledge X years. very he you'll been Corporate by up CFO a be R&DS our the

that Corporate Finally, of those who for leadership treasury function couple treasurer Controller income will side, of and Andrew as Manny fixed you has of going our also know is our on the the years Korakis forward. the served assume also past

Andrew back will smooth the call open hand assured, a to the questions to transition Nick And rest Q&A. and quarter up for who a it Now, around take and let both me all few to finish with stay will and Manny. for days Casey, that, to your over assure

now Sachs. the ahead, is comes here Goldman Great, Thank Instructions] Please line Jones [Operator of go you. question Robert line first from open. your your And from

I Congrats this Obviously, you to communicate time. get XX, of still us ask later guidance we you year. miss going I like, if XX% till everyone answer CAGR it to but I of will X% we'll good was long-term to like today, it's morning. more Andrew, especially, be get a will heard to about on think talk Great, I sounds revenue looks will wait updated of the guidance, all later. and like, sounds it to and that having to hopefully, all can anticipate off it so the right, the the already

mentioned go around getting Ron, of leverage there guys in back clearly industry had set target space question a M&A, right So bigger now. the below you is activity instead, you maybe the out and that a just I'll ton this to

enhance there at you the is you in curious movement So, it already to where of or I'm like doing, really the space are in and competitive look business what feel a your today? is to out do pretty around at as out capabilities formidable you you go build do that competitors you need or look and buy doing you're think the what IQVIA some are you standpoint in

we long-term recall All right, we update mind the and I we productivity either, long-term the well we and June and our and on but had the to three-year we to planning measures called more question the XXXX, set the and re-engineer terms that of Robert, our lots line efforts growth guidance, it set need both we in process think here, on for ourselves, not shared your company topline of make some and as the continued reason at top targets will would in questions why the and that efficient bottom line goals you time.

update I a some as Now, are those similar we planning therefore, remarks in process progress what XXXX you the complete through has give grow obviously to largely lot obviously, need a you appropriate look we we've maybe to to and and XXXX I introductory the we and XXXX made numbers year, targets. for [indiscernible] conference and to more update said year; likely my that was the it's June new then and ready on feel happened, had XXXX in an pause our hopefully then this XXXX -- you in reset and to have feel try investor give We later sense precision. we when we think

activity the in interested are IMS sector, and now the of those we the have the ability XXXX, all for technology flurry themselves surprised, So what try to any back either that's set and are goal the strong year happening. the a M&A strategy acquire was merge, barring the to way technology goals. Quintiles approaching not before occurred, the merger mostly sell what's right since, accelerate disrupted I'll that we acquire companies area activity, growth time. and those which the capabilities. of the ourselves business capabilities, M&A was the And analytics we to say said anniversary, we to look the strategically strategy to added own of respect that's has right, activity are our we've this are We compelled rationale done fifth long-term industry, what acquisition in With the deploying believe and technology to those activity we believe lots we've We we accomplishing disturbed we strategic to or merger, With hence believe goals our capital we at the capabilities, the on of to compelling then that to did. reactions into respect and and that that that capabilities data CROs was acquire and the were in of in possible.

assets every those every that and probably look for we look businesses that course all work within so the in to and is case time fast you of are is have tap far. with in are or sale will we know and do We our we been

I we've we all -- have mean, look we a lot said that's So right. have will liquidity, say, of I before that

We now revolver $X.X the for very obviously on of used acquisition untapped about. X we of that $X.X capacity X.X minority at in quarter of billion we are between the which excited business the have that's lab million the of and the end billion the very, April billion, stake $XXX

all $X done redistributing billion of strategic A, of available And we've rather deployable, development; so repurchase on would historically. and B, spend cash share that, we internal we on via shareholders a it the we of little that would cash acquisitions to have by invest over and on balance barring as

Robert. Thanks,

Ari. Thanks,

of Eric now ahead, from next Coldwell Please Baird. go question Your the is from open. comes line line your

for stats the things much. could lot on know the inbounds but to year. going I A of the quarter morning. Good I'm thanks hit COVID Hey, here, very on we get in

it the revenue missed this, to number sorry awarded COVID, date of in if related COVID you've on trials gets therapeutics, great. laborious any or is comments into with update represented maybe been know pipeline the it around something if specifically of -- QX your or it bear be percent vaccines in Thank you'll COVID of activity percent insights year be possible by for much. me outlook the the would on backlog on COVID would or I but If to the that you that the to studies of so any I

Eric. you, Thank

COVID are number of but what the really work lots COVID that's company, as COVID-related so trials, you a can activity moves Speed, vaccine on we've you of needle. five Operation no So are burning relevant the tell and the as trials, trials, them. trials impacts of most obviously which moves got though around I on the Phase collection a needle, from by what number look fast I the needle have the small COVID of of know, you the large had the know all doesn't that vaccine trials and are the vaccine move X large of four these Warp funded We've and

haven't one we've the clinical of done all two done pharmacovigilance we the and have lab the on We've on work. Now, one, of work is the full got the and it the trial on other third we one, them on four them. other

the ones grew With these have quarter revenue that work, to excluding are had first on those So the mid-teens. the the impact most impact. respect R&DS

pointed COVID as quarter. well. has the forecast you question the impact impact your So as for the work -- was the in that's on also first the other an What first had out growth quarter that that

earnings FDA, Without in high the that on world, from revenue quarter. in Europe, previous first around demand have governments have As growth digits. the in and single we've the cash US, Asia those had calls, as activities, been provided the in well also would in high those the said growth know, we've you the

about it service fast it you correct the wrong, asked. in a say I'm look portion R&DS all it question R&DS, company backlog the COVID I and backlog COVID backlog? on What total is you also large in at on of your is if revenue of was think I I single high roughly, contributed half digits. recall, contributed Andrew, if the guess as that the work we What burning If me growth. So, the, could these the

correct. that's Yes,

Yes.

represents. it what that's So

demand. many It developed have Now, longer is through to There much it are manufacturers it that. XXXX have than into does and that with for we remain There are for tail thought. meet XXXX. multiple to being are certain going is a global vaccines well would many us reasons

want We RFPs the vaccine responding countries to adapting many of also follow-up their vaccines virus. There safety treatment will are are are of adverse populations, events then in in studies issues versions a of there are the still vaccines. bunch then for is the world be is vaccines mutations around own to monitoring specific targeted and for the at alternative case needed for develop the There specific in programs quality that and other that that lot of pipe. that are case of or and work, novel safety manufacturing of conditions there in the

if again, is very the understand, away anytime you market. What first fair say I the I of point RFP that question ask know the I going have not board here that while, very happy the for strong, question, that share work you're should is the across to context soon going a beyond pipeline we that your So COVID-related is of and we're COVID. the soon, well our ask because didn't it also

if remember I qualified of is $XX billion pipeline approaching our correctly. RFPs fact, In

XX.

or billion the growing happened lots okay. it's were in value. in starting and start in as work both over was or said all remarks on right. in I slowed other that kind about Again, down should XXXX my in introductory either all $XX double-digits, to it of of to have XX, those bear of mind, that that trials volume the It's flight, in pushed and

of X, bubbling both of way manner. because projects is and come because trying confident displace, that pent-up there the coming And we other Number these normally been all the of by resolve in all and going that so got a the efforts in So are COVID is we've everyone that up. to situation the that on number out crowded that coming lots will that of not has And puts have COVID activity, demand through, would that's we've because sharp work out. got X,

guidance We and beyond the year business are confident for well momentum this in for COVID. our continued strong

Thanks, Ari.

you, it. Thank I appreciate

next Your open. now comes Shlomo ahead, Stifel. from from line line go is question your Rosenbaum the of Please

you if few. I'm a mind, Ari, and Hi, much. don't going thank to in very you try slip

discussion to about a owning if just and want Real that's net out evidence X, I improve little to could finally, the I hard can you them past. you know then going I it. the in And wanted I believe how put that you strong be bit update momentum, mean growth you strong in quarter to of partners and to an QX do the this. the a for how the for it's a talk you growing a how kind ask detail First, ask that's to there. World business continuing such it's like on business a quarter you'll talk do going all trends about but and by a you asked mean encore been the Number very us able of little bit lot about more I've accelerate

had on our basis to was Shlomo. are here are not I explain on COVID the in all whatever large not we that you, to suggesting Yes. that we question that's and back Eric fast these the of normal business. growth XX% we response little look, showed Thank have the work a for burning or Well, vaccine going why, will ongoing

the Now, that, of excluding strong business momentum. has all

bubbles. disruption faced company. get of the we a that where where unusual end the to By gave XXXX, wanted we new be to You excluding the are believe when single guidance digits we all to high for as we going will and normal above of was going a we be recall,

that in and digits the excluding had So, quarter, work. COVID mid work the business related the first grew again double-digits excluding grew business R&DS that single high fast TAS we burning the

pent-up comfortable to very, that and XXXX into that So The because again rest needs of is of higher would one that the the be obviously impact year we caught have COVID we up. the than think trailing very demand with. be

time collect patient deploying So, advance, With is have helps growth our momentum. monitoring I the lives all about the in deployment [indiscernible] double-digit Real spoke QX. for patients. specific platform mentioned billion to our over now the from of X our that build spoke question to last we respect clinical your care FDA. for a the and it helps registry we all World, on eCOA strong the data -- in directly efforts, about patient platform, database the we've clients of continued with which We

We are we to Real etcetera. in is populations virus demand obviously of now and started took seeing demand strong had people in who this of patients monitoring actually vaccines World, on track terms the for seeing adverse extremely just patient are the that getting terms surveilling potential that effects,

the are of smack in center all our So, of World. plays that both right capabilities in Real

Thank you, Shlomo.

Please Your line is your next question now comes go Blair. William from open. the line of from John ahead, Kreger

to quarter second Ari, TAS, feel assumed within Hey going talked you last to year? think continue strong follow-up, quarter. COVID be throughout of work RWE this I think is the maybe sort your just much. the in you think about do Thanks or Do I still fall a you really off assumption way very that you would

be updating it's and said mean, are I in our our but first time A, and The of guidance quarter longer the increasing the first is to will the fourth reason the quarter much this continue would or going to for it year of I still we not performance response -- so but to to going performance the the start guidance significant in at that same reflect to question, balance into expectation over work the level the the look, it reflect was for year. was quarter that -- in and the basis year. the importantly will expected also that's gradually continue is it It revised Yes, XXXX. and declining, the the continue why assuming as of we we balance an than that were for earlier at not we the is

basis XX year-over-year points. the believe in question a And margin pass-throughs that gross for Ron, Was driven I R&DS? I'll was like something higher by you. down

some higher COVID I think a the it's pass-throughs in low little and Yes, in is a other work work. in R&DS of the inherently some still margin of bit

reasons. So those the key are

But up. are our operating margins

our Yes, despite the operating of the volumes higher the performance, that increase and didn't quarter, at points leverage our basis we in very margins margins are up obviously EBITDA cost up, XXX strong overall accordingly. so

Great, thank you.

line the from comes your line question Tycho next now Peterson open. go Please JPMorgan. from Your ahead, is of

you hearing competitors in of up share the maybe all lot tied those M&A back dynamics? talk I want thanks. about question what opportunity Can with on there to in you mergers. environment of how a the original is curious, to pick just Hey, up just just think go churn. customers, the in now I'm the got one where you've from three to you distraction are do maybe to space

here weaker bit having of our were Okay. on being you is we opinions say just some we're in fingers be share share. others order on industry. they and gain counting already the an improve you look, to pulse we than gaining Look, were of not to as said, little observations set educated I clients whatever the of based know on, and and the

differentiated think I evident of our We market capabilities gains, are which offerings. are are unique largely, our result the share and

the that should doing We spend don't and and are in we building one. number to that. they do capabilities strategy on focus what successful industry. roofing us much trying other with at persuade go that our people time We that's and So, out customers our

that will I ICON is order bought to and that PPD look Research Chiltern, PRA. TMO, If to Now, strategic else, is whatever merged form in LabCorp alternatives, with LabCorp the means. you Inventiv I itself exploring IMC Syneos, Symphony Health, recall PRA bought miss merging what activity, can't out, selling obviously

So, cases where sell there the of complementarity few cases. I value. but X few business, is Phase Phase or some, two CRO is someone and missing a is largely between that X preclinical are this lots probably generally, in activity and and maybe Phase and could X, very X in stronger Phase CROs, there in that somewhat synergy If present very you

the is there client in they're Asia are is the in same geographic very strong for the are preferred cases very there for many of there US in I complementarity, who mentioned serving US, just value. cases and very where weak providers and that them merging, someone most can then you base strong are two else in people is Someone clients applying. see including the and Asia, very the in weak But in is

So going with to what you think going provider. is do The one client happen. is to remain

revenue So, CFOs, Yes, we are you Counsel's two is General -- etcetera, largely, on benefits CEOs, you synergy two to project-based don't side. a the going have because etcetera. have this need negative two But business. always cost dyssynergy

for every team still a You project. different need

level two a scalability So, limited. of because the CROs you efficiency as the put result and together of merger the extremely is

CRO. etcetera. I complementarity So are -- see then the buying you there I value because complementary be the are customer we don't indeed why buying back and don't coverage if that make where to have Again, is does could or and me that are come because it much CRO complementary, sense telling cases the again

do. situation other, for between on we different that gaining each merger disruptive, what totally is are to to we we two a not but companies we've so the we we're bringing share want capabilities ourselves. merger, the doing Clearly, were fact it, Obviously, know balance, that, the counting weakened, experienced focus Again, is on it, company merger in experienced to fees, we Despite no very what is sale a that going each happen. again, rich it an regardless. we is us. disruptive, the doubt about we're opportunity So

Thank you.

buying you of on that things streamlines know can bit follow-up, bringing that little question that had QX it build Okay. would you I a talk in-house and you Solutions, you you And well. mentioned didn't the mean I making, answer bio but speaking for the on just color. greater out a like scale just decision analytical you back I rationale one capabilities, on a I earlier to more then more how an can hear up, as are can

very been ability were to related extremely biologic sought There is question. going proceed highly mostly space. and be those and it we think the it it's a after, in and jointly making, I largely both all the improved, and labs to process, relatively the of run companies a weak specialized that up in Yes, managed will back has There been clinical I the genomics mean, has for think around, venture, becoming more capabilities attractive attractive. terms look, fit business, it but put It for market are decision management, more we was turned see this joint the M&A came were strong was etcetera, number into trial sale, we together of by are unable who outside owned XX% originally had that focus, to of forward. I

is business we attractive to a growth to want it we space, in that at and would there invest be when we are an and able move this business, and look acquisitions it's So, in as faster. like if we seriously and a them business

in might for no-brainer also a Now was passing say financially us. of compelling it that transactions kinds

Thanks, Ari.

is Your go Please next your now Patrick Donnelly from the question of comes line from ahead, open. Citi. line

the opportunity. business. yet, nice for thanks Ari, maybe It's just taking piece guys, the question. biggest but on revenue Hey not growth a OCE the of

ads you this talk there? think what the expecting face business as you the pandemic, the go looking environment just XX talked quarter, about that year in of the rest the competitive how of I can through about is you're and we just

win had in far marketplace the to in we look, so we Well, continue same I clients pace, at XX about XXXX. the mentioned win

buying the on clients, is schedule. this [indiscernible] revolutionary see offerings accelerated very The any is on will in market. course now largely not now adding to force.com target, a data positive tool, OCE and commercial deployment, and client capabilities sure. despite all and effectiveness. our of and of of the that a We in to you is the Roche and pharma view Lightning that then providers other are that that the rather enables obviously, deployments. faster global very know some all grow learning not way various the CRM, that integrate utilizes client names are for OCE It's functions it's the reps we of have-to the the suite you feedback the build therefore a and know we companies, The very environment have go everything got salesforce It better within data that platform, we've Best HCP faster deployments in last we've And integration if fact since well modules launch. XXX our COVID the the since those of deployments doctor going optimizer's, platform. disclose clients I It's year went operations, very got AI we've are Action, business, seeing implementations to large optimizes helps timelines, are all the well, Next platformed the slowdowns, is just compared that collaborative I'm of good got links are on the field again operation, enhancing AstraZeneca of international feedback, business just faster. generally, then management, engaged, engagement deployments functional and U.S. are based on positive the are even very machine

thanks Ari. Great,

line question Truist now Sandy next your is ahead, go of Securities, Your comes from the from line please Draper open.

Thanks very much.

a then one. maybe quick broader and Just clarification one

that about the you comments is growth currency that reported? rates, was made constant the one, First or

guidance Yes, growth the reported on Sandy, the given basis. Okay we've a rates to

Okay.

So reported. that the low-teens was like and mid-XXs,

great. Okay,

on. during a remains year and positive slightly of course same driver is the engagement impact the big goes but the FX as it year The

helps. And business maybe really is broadly then more whoever well. take it. Obviously Super, going that to wants for

have As of you Ari, is about think about lot to you add some one to worried it's for do going to clearly people about wage build service a of but business pressure where be to but continue said get scale, people, to this to of the lot can may you're going biggest are to looks of is about you to you're is going So love software growth manage you -- the many you're the labor me, the it that have just how you you're competitive we seems do said target think what's Thanks. hiring, inflation positive, the like have, your a people market. a higher, wage because challenges, you thoughts it in adding to very on software change hiring doing? how also obviously and and anything but

the at a one and we and data software-based have and great obviously services when that's business great, terms, know right, you're are pace still you're question, and you of It's you the in business the a going to in are subscription are people. on challenge you're biggest hire business, growing, is relative challenges growing industry or natural but we that to operational the service the aggregate in not touching growing and they need the

people. of early We anticipation working Now not in We now XXXX. in XXXX even they in two people observations, number kept here and are and they we we restructure weren't and continued one, are growth, hired already a paid they XXXX and of them, had working and did lot XXXX early people delivering. while

our hire here. of more as are might the much you we expansion margin haven't workforce as we it's So last to had and part think to year why people having relative nice reason

being certainly we inflation wage our mean of in and going talked to true industry obviously but, in competitors, approached and this I as that's and is to Second some we well. across are talent before merger observation Yes, fact is industries lead availability bleed and about talent there

with to we that. deal have So

a through of know scale seek to You processes, to our the whether inflation. to as to activities, etcetera. using even of to purpose we which programs lot a of expansion, automation we margin centers, create continue is have have efficiencies, consolidation program wage of that we've continue And that efficiencies a able offshore cost deliver Ron. to be it's got again

thing one fully wage more And guidance. anticipated is factored Sandy, our inflation into

Yes.

ahead. Sandy Sorry go

taking I No, thanks question. the say just for

Okay. Thanks Sandy, pleasure. it was

our to the we just hour. we think top before get took to more one probably question time of the I

Great, thank you.

from of ahead, from line Anderson the Evercore comes go ISI. question your open. next Your Elizabeth now line is Please the

sort rest free variety wanted for extraordinary move front, Thanks. was the you of we to just reasons, about year. thanks of year that I and last thought the on including quarter. continue squeezing first obviously the I for me in the guys, the so would very was free you much strong cash mean so I piece how of in. flow I thinking year. across pace how wanted, question cash see Hi the say just guys as the must are through flow the

Ron?

Look, and past there due, seeing, down the for you're strong very and not in from from did to Elizabeth extend working of also then our clients overdue contracts down, industry a letting of and billing with state. cash focusing with although the been been we've on coincidence, successful the that, we've there not lot customers hit on have you pandemic, we been a Hi. kind It's receivable steady that's and the one-time negotiating winding since is pressure thanks has flow. question. impact term slid accounts terms a collections, better billing start

going year. having not cash we so, I'm up and over It quarter. have said and every we're $XXX flow seen cash look the lumpy, promise that that, cash million tends of improving past to to go free have on you've going to is flow, shifted Now flow but fundamentally that our emphasis down,

that income net general as net our year income be between XX% from you Just keep a adjusted guidance, guidance, strong of average and free the expect would XX% quite cash is in growing help at flow in and adjusted mind least. an

from Our Cash any goes or we volatility company but that on yes, but have any have year cash cash it any basis, that seen in continued expect may and flow going not smooth, quarter improvement going we earnings, flow. to is and expect is up not strong normal like cash that. down, but as flow it forward, is flow even or given differ given it in grow will to

Quarter-to-quarter.

Quarter-to-quarter, correct.

more think we one try in and before one end. let's I squeeze quick as well,

Thank you.

Windley Your Please next is ahead, Dave your now question Jefferies. from comes go line from open.

it's how know that biggest it's number you I -- an earlier big next XX your I add strong could sequential that in read outsized the I the a and improvement the something color merged that clearly said Hi, most next quarter there and think that and the and/or thanks opening has rolling quarter forward is call recruitment billion to XX wondered greater gives also of dramatically. such comfort months was important on increase, if bookings the cooperation you that outlook -- just the since patient the layers you level Ari, into might very visibility see you're -- impressive that I -- it. in sites in that if tools there I me so some that's be are squeezing were wondered improving is for $X.X for for and next appreciate in, thought months I a it's either backlog was some great and maybe to in a to up

in yes, much our Thanks your of you and has by net recovery there so trial for R&DS right improvement business months been our well that a observation and next outlook question, this and, dramatic you're for sequential absolutely revenue out XX growth the as again result pointed clinical million is continued as over $XXX steadily new strong correctly as bookings landscape. improving performance the

an first now sign. XXXX, by next of again way which the this XX includes of the month, metric is Now, quarter encouraging

you well continued year. this also strength beyond out point As

the so we're ago, up was of that in well. XX%, had XX% was of seeing it's and improvements sites QX just the trending forth; size In of we accessible. XX%, on, were QX the as QX now our to terms a in year higher about earnings and call so in recall and Now that terms QX that than XX% slightly was above it accessibility call,

I the in and think range. XX% it's XX%

right. project, process to this revenue into It's we next do revenue we respect months. for by the guidance Our factors bottom-up burn next months with for XXXX for each account evaluate picks XX many XX the backlog, project from expected the where project a

visibility site So, But and the to above going extremely I precise on beyond forward. measure, is an the access an of our business actually is activity the site, startup very XXXX relevant indication think it's exercise level. a

levels So that's very close strong of revenue indication visits site same startup patient forward very balloon pre-pandemic -- going a it's activity Patient up. and levels. recruitment thing pre-pandemic is above and trending to

to was pipeline awarded one sites delivered is enrolling, I'm the to right that awarded So, is the with now non-COVID talking bottom patients enrolling and visits. pipeline, about that's being provide a pushed metrics and these trial the trail or be strong confidence starting the line that and patients

going you the correct thank to for So I draw bringing and hope conclusion. question. up you're that the you're absolutely

but Thank you. your bit, time that's pass very very, a I appreciate little helpful.

Thank you, Dave.

Thanks for speaking will you you, take joining thank earnings call. us look the We any for with available everyone of XXXX And team follow-up questions the to forward Dave. today. you the our might for to quarter rest be The question, Thank on everyone. you have second again day.

this today's conference And concludes call.

now disconnect. may You