IQVIA (IQV) 15 Feb 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the IQVIA Fourth Quarter 2021 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, this call is being recorded. you. Thank like President, call Communications. Investor now Childs, to turn Vice Senior Relations to would over the Nick I and Corporate Mr. you conference. your may Childs, begin

Financial Analysis; Thank Executive are Executive General Ari for and presentation visible Relations. of Investor Chairman and Eric Relations Thank Planning referencing call XXXX section and this morning This Sherbet, Officer; Vice call. Director, and we Today, Bousbib, you Counsel; Ron ir.iqvia.com. following Chief in Executive Senior at fourth Officer; Investor website Bruehlman, those earnings available webcast. today call Bryan Stengel, and presentations that of Associate our Vice President the presentation our Mike will quarter you me be With Chief and good be and will Vice President you President, for during joining IQVIA a Fedock, on everyone. our be Financial also will this events

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

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

and that would quarter three-year Investor person our see Thank Thank Analyst and for And exceed November. as at you many Conference recall, of in you, was we fourth joining Vision today we morning to good meet It our our you targets. results. will expectations or you Nick XXXX for everyone. in great shared our

about our by strategies busy $XX achieve to to more are Fortune's was about ago, of for Admired it to out of World's IQVIA, hear company's power to three growth XXXX. clinical XXXX yet highlighted The our the our leadership brings in to laid another the growth we position accelerate and will for Most refining the growth least the plans also XXXX Companies our two progresses. at together inflection connected of billion differentiated the excited x team years and named and -- in rate as which Two underpins This and journey -- intelligence, IQVIA weeks revenue the trajectory commercial and fifth action drive our three-year phase further this you IQVIA our markets. next alludes and new XX year phase which We point the XXXX. phase next of list We're of in year. strategy, make plans our consecutive capabilities plans,

nearly I of and Importantly, place of categories category XX,XXX in and capital health within earned tribute for recognition the value. global we a for innovation, investment pharmacy worldwide to the this deployment, time. innovation want one the thank ranked a and employees ranking competitiveness, to care, first their is number and We drive. other first quality services, long-term services product our

you quarter, on COVID-XX's to continued well was a to high now of of in growth impact note, know, year-over-year We achieve We top And, our robust course, XXXX bottom confidence our us despite ambitious reinforce our which, targets. we results. our that ended tougher line much delivered against the the a XXXX meet parts than up many year. XXXX world. results on guidance. the earlier and will comparison it These as Turning sets in

more was three fourth quarter $XX of driven $X.XX segments the adjusted well higher mid-teens our remarks, TAS, million on as guidance Compared fourth at headwinds. performance meaning above partially Fourth adjusted reflecting EBITDA EBITDA range our additional including XX.X% the ongoing of as adjusted XX.X% the quarter the and above by the will beat the growth Revenue each basis year the Fourth That The entirely Let's offset by an well initiatives. detail constant $XX was FX provide review midpoint his million our quarter lot quarter. for in our stronger productivity range the a all diluted beat businesses, our of as grew operational work, Ron R&DS guidance, excluding as grew revenue from segment. our XX.X%, on currency was beat midpoint midpoint performance. adjusted basis. $X.XX currency. grew with EPS and due to COVID reported COVID operational numbers of guidance related across coming organic The for majority above pass-throughs, grew XX.X%. prior to of constant core a and at drop-through.

provide the Let me update an business. on now

launches or enhance the and new There are more On approximately XX approved by clients FDA continued science globally technology from continued one launches and nearly took strong This the cloud, Engage have launch and were human across momentum now we've disruption. our Overall, analytics, capabilities applying Engagement, Omnichannel including over the all significant all seen for Customer molecules Orchestrated new pandemic business, technology advanced of our scale segments commercial commercial OCE. solutions. of of data engagement of Navigator, platforms, highlights by XX a it XX% demand customer year, side launches in analytics X,XXX measurement. This supported IQVIA technology our who or adopted and planning, the year orchestrated launches. XX% to course, EXXX, its and pharma for of place. and molecules XX top as COVID-XX new the industry and and was recovery

launch. customer our to launched footprint more adopted of has itself having continued Action, decision over XXXX, we the which since platform clients on customer successfully XX Early have or in intelligence Two engagement AI-driven to fact, than with XX other XX and platform OCE Next an this engine. omni-channel XXX grow, the over out phase. orchestrate pharmas clients is In are countries Best in modules each. implementation IQVIA one more across the engagements top rolled engine in XX pharma top brands Two currently

to professionals. TAS project DMD into In Another won content an digital safety the Solutions, Real-world enterprise a our entered success the quarter, we has brands role within studies customers. help quarter, key the IQVIA of date, in autoimmune were over marketing pharma. across disease secondary IQVIA. growth of that science healthcare novel XX with in leading XX answer XX patients top effects two been for with for play recently to other personalized pharma a the top XX to utilize of agreement and their solutions clients to provider existing business of this registry the franchises. at an capabilities excited leading continues To observe highlight power Marketing in DMD's adopted period digital have for better year, questions omnichannel a gene least large data life area also fourth treatment. evidence eight data highlights post-authorization years deliver studies and top very of long-term awarded business future These of a of we the of therapy. In brand healthcare XX one the DMD of to advanced data of an We're a engagement to analytic solutions. upcoming We use to a understand use the all

can Here, practice. recruit This our currently they specific a life the information patients highest unmet in sponsors inform target patient with need. clinical so groups clinical trials design a to we broad understand of is with vital will how managed science to of population subsequent the are disease to they

Moving technology. and patient platform, engagement, planning, management of We adoption increased supports trial analytics. site which Trials, trial data to Orchestrated clinical management, our OCT clinical Clinical saw

provide entire one to year, and suite Within significant who patient bringing more year, clinical this their partnerships provider secured have the pharmaceutical adopted response of interactive patient three top we technology protocol the trial technology of support reductions. XXX cost wastage modules across to all digital OCT streamline with XX management XX During including drive XX the clients to XX. to and added technology, and adherence since randomization clients within total our portfolios. clinical we facilitates launch, top supply ensure the IRT preferred clients, chain suite drug new reduce operations This capabilities, OCT's site to our to or top over XX site

report Our chart leaders solution in industry supply management for a was ISR awarded and capabilities. top-ranking a recent randomization by

more incorporate expect to services becomes decentralized industry-leading clinical full-service our increased technology one-third our complex of saw our or need DCT evident. in trials capabilities this to offering. also more demand the or active we and clinical studies of We as for for these trial grow Approximately one continue capabilities,

atrophy, For example, neurological disorder treatment a severe full-service system functions. are a involuntary we trial the multiple currently of degenerative for affecting executing body's

eConsent, travel who deploying are these full on including eCOA, our burden capabilities, this We home suite on reduce of and have significantly mobility patients challenges. the significant to study research nurses

achieving quarterly ratio first continues over record billion billion set and Finally, with book-to-bill and X.XX net pass-throughs, ever. time This service business, its build including including for net our quarter the pass-throughs $X.X R&DS to on for a momentum business in of contracted overall it of new strong $X.X excluding a pass-throughs. fourth X.XX, bookings of bookings, over resulted service

calendar pass-throughs. ever, net of book-to-bill to increase year, to an including time billion $XX the XX.X% excluding and XXXX. pass-throughs X.XX the an bookings X.XX of we net total contracted of LTM For led for This ratio delivered first over new compared

pass-throughs, details I a to our as December financial grew Ron in for turn year-over-year contracted on And XX, will $XX.X to more Our billion XXXX. of now performance. including backlog R&DS, it XX.X% record over

Thanks morning everyone. Ari and good

reviewing billion on of at XX.X% by start XX.X% grew currency. revenue. and a revenue basis constant Fourth $X.XXX reported quarter Let's

and You'll R&DS headwind constant began fourth COVID-XX. XXXX in fourth vaccine organic work both is currency quarters TAS. up about comparison to TAS Analytics points was X.X% were quarter of at Also, year's due billion, was approximately recall within In demand business, $XXX this that XXX was reported Technology of constant earlier all rebound our a step-down effects XXXX. COVID-related experienced $X.XXX we the at work. to from over of and the the In and mid-teens. fourth fourth COVID XX% growth for basis Year-over-year, in government-related mega million, COVID-related up Solutions versus tougher XXXX, revenue core that incremental from COVID-related X% much currency. base quarter a from & down revenues work picked excluding quarter just as quarter, business the than last year's studies

was TAS was FX in Excluding all growth currency COVID-related up single at currency. Solutions XX.X% organic work, digits. at revenue of constant R&D XX.X% quarter and billion high $X.XXX constant at fourth actual rates

approximately Excluding currency all constant reported and & growth CSMS, or COVID-related revenue of constant organic Solutions, was work, X.X% $XXX Sales at Medical grew XX%. Contract fourth million X.X% R&DS currency. quarter and at

digits. CSMS COVID-related in work, currency growth was constant organic low all Excluding at single

For Solutions of that about attributable in constant XX.X% the XX.X% $X.XXX the billion, were versus COVID-related XXXX $X.X & XX.X% remainder full year, our up and billion, TAS at at approximately revenue CSMS. Analytics Technology constant was to just XX.X% approximately growth reported to was XXXX and Full currency. revenues in incremental half R&DS, year XXXX due at XX% billion, currency. with XX% XXXX. $XX.XXX and revenues The growing accounted in COVID-related under in reported of for revenue

TAS organic high XX.X% R&D work, constant at and at COVID-related Solutions revenue $X.XXX single digits. XX.X% in Full in constant reported at year growing was billion, currency. currency Excluding growth was

constant $XXX excluding constant And for at double services reported basis constant and total currency revenue COVID-related growth in organic revenue single Excluding low COVID-related growth million, X.X% Full representing growth work, currency revenue on at digits. low was work, at and was organic X.X% both CSMS CSMS was R&DS a digits. year currency.

share. per year-over-year on was Adjusted million reported which $X.XX. XX.X% GAAP year-over-year EBITDA income or to adjusted year fourth net income billion, earnings down $XXX diluted for moving $XXX Fourth to XX.X% $X.XXX basis. was was growth income XX.X% $X.XX adjusted and on the P&L. quarter, a earnings Adjusted a share $X.XX. diluted was per $XXX per was diluted net GAAP up reported EBITDA Now and quarter basis. million fourth Full grew quarter, of was Full for share million was XX.X% up GAAP net year million earnings the $XXX

For income or adjusted was billion $X.XXX the net up full per $X.XX year, XX%. share,

year-over-year. record growth backlog reviewed, at $XX a new Full billion, $XX.X new the compared to of year already bookings, XXXX. billion of as time, R&D another first Now pass-throughs, an outstanding for increase Solutions that's delivered XXXX quarter XX.X% including XX.X% to business. net now stands R&DS over rose net

Okay.

sheet and strong flow which to move brought $XXX Let's our in was flow Cash $X.XXX now. operations the the debt CapEx the This the Cash quite was billion, free from was cash of million, billion, resulting was flow free quarter. cash billion again $X.X up billion. balance to debt in flow resulted $XXX for $XXX million totaled record of $XX.XXX XX% full $XX.XXX cash At in prior December a year equivalents year. and gross net cash XX, and million. versus

at was adjusted XX-month trailing XX December times Our net EBITDA. X.XX leverage ratio

from of this, XXXX which doing we we million in shares, full of diluted target repurchased at our allowed of of last million, existing Now of we our over in million the pandemic capital full the it's authorization the flow that times. to And approximately internal resulted were ratio and to we repurchase, achieved year X.X share to highlighting acquisitions while ratio $XXX you'll four a nearly and outstanding two X.X to the a $XXX with program. XXXX, time, of years same to fully improved In $XXX million our QX high investments, worth cash and times our early. recall repurchase quarter, which leverage net year was under remaining year our billion times the $X.X free ended the leverage times repurchase net in us X.X share deploy XXX height of Vision reduce shares share able

Now last $X remaining repurchase to of our authorization, week, which billion to share increases $X.X over authorization Directors our a approved increase our Board just billion.

year we $XX the FX this a the issued guidance from that turn since headwind revenue full guided our million in Now absorbed and initially analyst let's in maintaining to in guidance, guidance, conference we you And reaffirming November. as we’re saw investor we actually XXXX revenue at November.

year we in our full Now XXXX profit what November. additionally, guidance versus we're raising provided you

$XX So the be to guidance basis to for X.X% and X.X% full to which reported year-over-year at between year, currency and XXXX. represent billion, X.X% the compared constant expect X% summarize on overall revenue a billion of to we growth to $XX.XXX

$X.XXX and XX.X% of Now to year-over-year we billion now billion XX.X%. we adjusted EBITDA which expect to now diluted represents year-over-year EPS between be $X.XXX to between And adjusted and XX.X% of also be $X.XX $XX.XX, growth XX.X%. representing growth expect to

exchange at year full rates XX, in our balance guidance Now December foreign for remain the currency XXXX the fact, assumes XXXX of year.

FX the revenue to a to XXX points compared now Now is includes prior XXX year, of I projected should full year contribution over M&A little bit points growth our basis mention headwind growth from activity. a our basis and of revenue

detail growth compensate some billion additional down I conference and but to let helpful. $X analyst give you our be told will you anticipate around strong that more by approximately our with revenue investor Now November, me with in will step COVID-related this And that in headwind think base we XXXX, business. in than will that our for

the contribution and level, acquisitions, low of in growth the revenue organic anticipate the growth between Solutions FX & Analytics full segment the company guidance currency our Technology COVID-related at headwind total year we implies revenue constant mid-teens. X%. to and Excluding X% of revenue, At

is growth growth Solutions Research the Excluding COVID-related organic TAS digits. to between X% & Development revenue at be single expected revenue work, expect in XX%. in high and constant be we currency to

be at the revenue we to anticipated currency X%, but constant in down organic low revenue teens. to finally, the excluding was & single be we Sales work, COVID-related organic Solutions constant CSMS work, digits. expect revenue Contract expect Excluding growth in And in currency Medical about COVID-related in growth upper be R&DS at to

to quarter now. the move first Let's

marked of pandemic-related the rebound continued XXXX all As in decline. base after our year you first know, quarter last business a the

peak QX COVID-related and QX of addition, In last our represented year revenues.

a first the the the result this, most year-over-year half will challenging As have compares. of year of

billion, $X.XXX X.X% For basis quarter, be and billion X.X% between on constant basis. and representing first X.X% $X.XXX to of the a to currency growth X.X% reported a revenue expected is on to our

be Now mid-teens. to constant growing EBITDA and diluted And up to expect XX.X% the revenue $XXX excluding EPS XX.X%. adjusted million million, be between is we and expected to be X.X%. is X.X% organic to Adjusted COVID-related currency $X.XX $X.XX, $XXX between at in growth work, to expected finally,

both to year. of for and So service and strong over quarter time, in new delivered on had top bookings line of was we a quarter fourth recorded total summarize, first results the what net against very ever R&DS a its the very largest strong bottom fourth billion of quarter $XX bookings also XXXX.

delivered over improved closed trailing of EBITDA. backlog $X.X year free of up contracted XXXX full XX% billion. billion, bringing to record leverage strong nearly net adjusted of the flow, We year-over-year. X.X XX-month record to $XX with another quarter x cash a Our a We

Board guidance. And Our of the our and operator provided for XXXX that, to reaffirming EBITDA turn share raising authorization. And November and with $X EPS diluted a guidance to billion our approved revenue, questions adjusted over and increase repurchase finally, in me let answers. we're adjusted that the back for we're full we it year

[Operator from Instructions] Your Nephron first Meehan Research. question is Jack with

the and to more Thank bit a good this. remarks Wanted morning. on you talk appreciate about Ron, the you during and COVID prepared color I all gave, little

there's ongoing over some the years? color think any or Just the great. R&DS? might stickier X.X next Analyst COVID So $X talked you just about how at and this work there tapering the talk Can about Do some COVID work prove in balance billion of Day, there aspect duration feel in you be the kind of would that of was about few you you of TAS XXXX. COVID year, the in

balance to two to work, Yes. the continue That's years. off do burn over we next going Look, COVID of obviously. have a

the into surprised hard on forth. course and continue how but decline so it there it's Yes, We've additional XXXX, be. to much will and going think XXXX. Jack, work during the downs be been of of might the to foresee, ups I a by gradual all it's COVID pandemic

it's and see on along. we'll have see We're So projections possible certainly currently where come goes now. what right could other we might from facing our backlog, there more what work in the and it be there

-- right. the can evolution. we've this look predict about If do pandemic exactly just today. situation -- if anything the Yes. all I anything we learned mean, this I is at And Jack, can't is is we

pipeline, in to our So we are are to COVID, large therapies that to have for new RFP we assist XX address talking there side, do even proposals in request R&DS on especially therapeutics. the about top potential pharmas

anticipate today, I So both residual there of will maybe dramatically unless the But beginning some what Unless amount one that's we picture which something the -- it's burning and on to change no world, XXXX gradually have based and work hopes do things have. here just going be that's down COVID taper based But what clinical. off through ongoing. here we all happens, commercial of else largely It's for. on XXXX.

Great. great changed view maybe get have -- as forecast around on And inflation how to wage is be impact then labor all XXXX? your thinking latest would and to the your just at a has inflation? What guidance might wage that initially and when you it the on just gave for follow-up, related

the -- execute and the good space leader at we such lot most need as to of coming more we billion that be a this people is the backlog well. demand that's have but of result we And people, management. more And of look, still even need -- people, the I we strong know and a have many deliver, technology commercial we we year. important XX,XXX in work a mean to to and recruit have this mean, it's operational thousands taking I wonderful more is over gradually look, is though challenge question. to Yes. people. of lot single That's $XX a that

have great well, which everybody. us is We attrition, as The really affecting an issue post-pandemic. is for resignation

this. training I that's of people we a adjusting say, all of work we programs, have initiative work, lot employees. creating the kinds and from to of IQVIA. the our that become building compensation to might our flexible we is arrangements, which price roles success. -- are from are But arrangements, programs, academy redefine back-to-work, recruit become We we've of an future and We're have -- talent company, look, loyalty what's an expected

innovative affects costs. a on respect the very our have in when numbers, we've you how working compensation management to to really terms obviously, it With multiple numbers raise it's costs So, generally been lot of workspace, of and our challenging and fronts. people

ever and higher the getting growth the of benefit the offsetting numbers now the our leverage growth, we on more I improvement inflation and immediately to that We than However, margin they've our I and wage getting significantly profit -- headwinds. Again, adjusted and our revenue that continued cost than margins, growing margins implies fact, revenue the before. that's are see offsetting post-merger. EBITDA Ron? they finally you relative raised that are to been for to significant profit has And -- numbers, expected the leverage we grow restructuring more -- of than that grow. mean the you grow our we growth to that and more our would to reason of materially higher -- which than massive -- I'd in than point we're growth. our is initiatives launched materially point

Yes. ability prices to And adjust to of a the prices. have I in do also that would lot instances say, Jack, raise we

We our agreements. have improvement provisions some in MSA for

some have also short-cycle businesses. We

getting So, well. are some we're there offset have adjust we so. we wherever doing the And ability to prices, as

Great. Thank you guys.

next from Eric Baird. is Your question with Coldwell

Thank you. Good morning.

topic number funding the one the impacts biotech group. the probably potential to environment been knock-on any has and So, here recently

delays That two, a were volumes reported related cancellations any in business bookings, so as of January. activity I'm help you're in or talk business who fourth if at or XX% same biotech in could pre-commercial pre-commercial no haven't other space? XX% competitor, real-time impact you also to mix by, in about R&D far. seeing quarter, said terms us time talking exposed very down their that percent But one, curious so that very the demand biotech, far, morning backlog biotech the down they pre-commercial in Thank and And this what Your of RFP you. is helpful. would bookings? about be of your seen

Thanks, pretty as many on. so numbers Yes. imagine, can biotech definitions you what you tightly. Eric. as these we and know, Well, And of track funding

in what any We RFP been. changes the seeing actual versus has pipeline not are

As you know, a for general. EVP strong very the environment demand in segment

In what percent bookings, give the have but of we we the bookings. terms of do our you, we have don't backlog,

Let got me a numbers few here -- have you. for see I

I think, look, in terms of the over actual bookings, bit large little pharma still represents half. the majority, right, a correct? that Is

correct. That's

Right. And is percent maybe we the midsize -- perhaps about around -- XX-ish then somewhere

Yes.

of rest, the you down. is as -- it XX% the things these been -- that And again, so And our say bookings. these fluctuates, go can again, case numbers and I'd -- plus up has imagine, EBP.

are I in book. CNS, the RFP, pipeline growth we more numbers, the very EBIT And double where the It's it's seeing right as XX% really the EBP it's of up. we or in which the in very, to flow, basically gone but very the of is high, right I'm majority lot question, a strong. our compare therapy good our pipeline we of oncology, really, and total mean, know equal categories, is about you we going XX%, pipeline here digits across I of would up before, what of more COVID still pipeline okay? now, backlog is the are Agree, continues is pipeline. volume. tiny see the our less. line see it can as do the than I to the pipeline not than than dollars more funding. pipeline, very, here. represents which that very And you speak if I'm to give now, okay, talking now. of A about your again, is actually okay, a be said actually, forward, indicator more the -- talking mean, we normally digits. okay? of percentage I terms don't Now It double pipe grow if in we

again, changes. significant So, true. -- I we see any yes, Look, wouldn't don't it's

and quarter January from -- the was one matter. for month of that I For one example, from January extrapolate wouldn't was of but than funding, lower month or EBP lower --

As we terms must you top are mean, high. know, generally, we be years -- in funding of the the are funding. very, levels I three ever EBP very of in

were of of okay, this little maybe orders years. So, last years. magnitude than We're five, these which, lower terms four, be record the a greater multiples back you go in about if six that again, funding, three, talking year, of year will just

in pipeline. -- I to yes, So, mean, even and concern, good, we very as in continue step-down both very, higher see funding bookings the would doesn't numbers the

of it Hey, Ari, if into your I what what do EBP, definition could versus technical the The for takes biopharma, of the what just you remind definition a one some client everyone other? follow-up. -- is, your could emerging to fit that category

terms of spend. look spend clinical R&D much Well, development, the of in how at we

Okay.

client that base -- of Some

sorry? So below I'm that number --

just ? of companies Go a -- would have these some that ahead. have pipeline, commercial to base wouldn’t that they going say be client I was actually

you yes. products, commercial. might Yes, call That's has commercialized that addition correct. as what well encompasses small in to That pharma

spends that's of happen a the in R&D definition. also speaking, company of one a if we definition have, us triangulate, EBP, less company that as million, I spends couple don't I and a of can hundred number imagine. a But we Let's analytics that know you broadly exactly as it, couple definitions. less segment say, and than know, how segmentation tons its we one given just like. got But others is a in hundred budget, to for We've dollars you than year that's an million

right. Last All one.

do XX% not pre-commercial off to of just the the not you're to had so, and Would guess be you cuff, guess but your willing you backlog XX%? biotech? If your had to if to feet maybe holding fire.

we if Why in I I why can on follow-up you little to don't this? don't try we'll numbers. us do you questions, clarity on give the these or you don't give what's know know backlog. we give range more But a what, bit

my I use on to I that. privilege finance give I point, spot all try these to you but here. But team know executive try I'm guys. ask something. I'll putting this will what the I'll exactly here will at know and give the prevail to you're -- me going don't We to prepare to don't you

helpful large bookings. two it's of -- have been and say that last bookings partial had orders give to over our slightly been answer XX% Eric, pharma to the years, a you

at So what that you start anyway. at at looking gives least to you're

All you had Well, I it, Yeah, and Right. great I appreciate correct. right. a look, thought quarter.

rest it and So the of look to forward job, much. up call. so keep good the Thanks

Usually, so at Eric. this I beginning of the was saying Well, the concerned, again. thank for it but tell you thanks you, question,

All good. all It's right.

All right.

Next question.

JPMorgan. is with question Tycho next Your from Peterson

Hey thanks. getting on of it back and given that is guiding the want you're wage for EBITDA RFPs go wage the discussion I here. because inflation, expansion and notably to are inflation Ari, questions to most margins we're

the talked from original and plan. merger You about benefits integration

You But talked increases. how environment price drive cost maybe give you're us a on year? additional just this some color Are can little expansion any this forward about digitization actions? in and pulling you to more bit you maybe planning margin

at not No. all. Not at all,

IT we infrastructure, optimization, those numbers; consolidation we are at restructuring obviously that leveraging the main to post make every et actions, myself overhead of benefiting look driver of merger, and simply And okay? again, will As systems, merging margin of our the we back -- our the affected and I benefit said amounts cetera. the go which clear of outsourcing -- flow. You all cetera, before, cost have expansion actions just is cash et recall now largely, took leveraging significant year, the

margin a XXXX Now of expansion on as contributed pricing significant think I level in this, the see also versus have I lower a in quite to the you would COVID-related reason side, not work. what to it of addition traditional the trials was margin accelerate small way, very the some at margins is actually the in probably part our XXXX for some we by same the address significant clinical work, where portion to it year the remind pandemic and global we benefit. quite is otherwise related COVID have effort whether everyone our a of want it we okay? would which than of base work, just to government business I the on said or at side, or Last two, mix commercial was was R&D otherwise that at, over it's past

the on of side. work down than then might terms as you've pass-throughs the I COVID-related mix, tapers that also unusually under course, add base further came on business and a work And it proportion was earlier of the in amount benefit grow the margin high, a as vaccine of on continues trial this and timelines. trials gradually got normal COVID-related of to total, so would

higher a to of adverse to with, an to service proportion unusually of combination to us, are high the of So contributed all impact, on that lower -- margins. margins proportion be impact margin our pass-throughs, start mix an

obviously, the the margins And going see you be impact work of this growth. our tapers reason mix other that's down, gradually an acceleration is then As margin favorable. more to our

Okay. a That's then helpful. And on follow-up APAC.

you're CDMO, you the through list. does unverified a Your And getting Obviously, long-term you? of there's XX% China, any your on within China to But view talk guidance different in growth very on been can near-term? markets. here potentially lot noise, placed of the so this They're benefit XX% just noise is kind a in of biologics CRO, XXXX.

Well, couple $XXX we've if of this, a the been I China. we got double-digits disclosed It's know but growing last over few million mean, don't in business I years.

this in IQVIA, for IQVIA work clinical a with biotechs, CRO largely local competitors for a our the prospects Look, got that are we've of regulatory their owned gaining CRO growth in are to of us There allows unique market, which trend. sponsors of fully literally we global Again, in local core growth deals and that emerging that's piece have China. higher parent local a is whilst the our China. with about subsidiary capture the opportunities subsidiary IQVIA requirements local a [ph], have with feel It's trial we China, setup, We in it Chinese platform that which Punto and are are our and when CROs to fully caters share. in the hundreds multinational business, formidable this combination CRO called addition are owned to there market to about exists. continue good designed capabilities outfits

a worried, concerned. dynamics to external market lots are I not But we're I'm to market. As affect is don't can we're you There industry of how -- to play need be but pull, complex not want China know, our factors I out. that able --

invest as continuing to are required. We

We market business. our a have good piece it's total a and small position of

On quick last you One retention, Okay. hop clients XXX on one off. using one the I OCE before talked about or more.

Your to biggest Roche. comment on about all? you back able talked competitor winning did, that I think, Are at

Anyone?

the comment big customers. about XX% customers majority outside and U.S., of the individual and the think And or Roche is that on No. I as large is dynamics Look, individual very a win don't so. win of with we

Yes, world outside US. project -- is the the the of XX% of

So I an other, subsidiary... think the independent

Yes.

rollout that also has and after its in we own to Yes, other yes, successful accelerate program. in had Roche modules. reaffirmed regions, purchasing several -- expressed commitment is has actually they've implementations their the the looking no plus interest But

But with pleased comment. beyond we're not to with Yes. very this we're So going collaboration client. our that,

Next question.

Kreger next Your question John Blair. with from William is

very made that comment to R&DS your number. upper you to you you COVID if the think, I is teens ignore revenue in I much. thanks growth work, back Hi, impressive very wanted expect guys -- be a to this come which the year,

what you longer do can curious, business do term? Just that think

that -- the marker to I Longer-term double-digit that a Yes, achieve. strive growth and think I look, have think growth. achieved we was

the If at digits. very of beginning the merger, growth the you was in single the remember low

maintain the term got So mark forward continue in we looking certainly that sort we're double-digit will acceleration longer of acceleration. think something continued to the is that and

base. we to billion conference, company presumably XX% our I will targets you even we for company a whole as Yes. mean, as from grow the said XX% that whole. investor a gave at our a annually, And which $XX look 'XX

double to to R&DS growing digits achieve that. So in has be order into

And all couple so the attention and by or -- as over this numbers? months all we goals 'XX attention together what which where ago team and I long-term trend a of view had longer-term significant I in and you were growth segment in-person, to again, November Do guidance in so -- we gave have what those is know we But a trends just up. represented call here growth acceleration 'XX... that's a New of your you of kind we've gave 'XX? your bring bringing you While the we versus York, when we for

conference. investor the at digits double Strong

double strong Yes. Yes, digits.

And that's are long-term again, So you large-scale these business. that of businesses. I point the the trend to

the is Yes, you growth? this buy absolutely. for Very, Ron, quarter? very impressive. to quarter, the And one follow-up, was think a anything the probably you notable acquisition And In remind you. contribution did best us what can fourth in quick I

Yes. which over payer a was The little the The contribution relatively couple to It in large. acquisition largest Europe, points -- of terribly acquisitions minimal. a was growth in company was quarter. XXX basis but nothing made a of we analytics the

Great. Thank you.

from from Stifel. Shlomo Your is next question Rosenbaum

Thank driving single-digit can TAS know bit the grow morning. you about the And Hi. growth business revenue evidence? the you exclude all. What's real when breakdown much Good you. in Ari, it Is little the technology? of doesn't there? a growth part COVID? talk it Yes, world at of information, the Is I upper

the what with us help of really there. just big are and can composition the you some drivers maybe So

to look What TAS, it's it I mean, comprised I'd you you terms -- we've of look of. And three Yes. at before. Thank told I at you, in We've done this tiers. like Shlomo. what if

core okay? solutions, data. take. double the little a sell the that's with been flattish call moderately that's business, quarter past of which strong growing And piece the No basic say, we the And digits digits. this that's And increases. point, years, It's got services. We essentially two, business. data of single that's growth about, you've a it. just price strategic. information in rate business, way used the going the It's the mid at That's the flattish XX% is now. very Then growing maybe IMS the to You've do to business, got high grow I'm old digits and or various three to of a-quarter -- business, another analytics, consulting let's it, which business double is, the that give grows

Now it's past the digits growing mid-double few low years. to

Low teens.

to today. Yes, grow Obviously, And the -- when say the real good it course, a-third. growth was low at technology the And And like that's business which was the businesses. of the to a-third, we businesses, got teens. XX% balance, you've and about mid-teens. a-third, world will that's higher used it's then Yes. of

technology Now, obviously, piece much faster a real fastest-growing at of growing world, world because rate. real are TAS, the and

represent now the XX% of So already total. they

high you the And so, get digits underlying if single you do the growth math, to for that should segment.

was is How I of talked of You a absorbing little guidance to the and Ron. for give FX If much XXXX? And incremental guidance on that. you. EPS revenue. Thank normalize, million impacting much that headwinds EBITDA great. Okay, the then, just maybe for us maybe color $XX impacting the were how and just bit about

million we maintaining Well, in guidance. entire offset our the $XX revenue

$XX I it, So, I EBITDA? currency I'm our your mean, that. constant understand raised as sure of another way by at not revenue we looking guidance million. beyond question

and on $XX of like each revenue... If – it’s in you $X.XX EPS like Yes. is the side went of up sort EBITDA. each million that EBITDA, side

an of -- typically from FX did you And impact doesn't negative so a there. have not the much side EBITDA. bit with we offsets side, we our in numbers. EBITDA more We've like FX, a as our had do big Yes, the have revenue absorbed typically little impact drag EBITDA doesn't a revenue big than don't that on we see we have the on on

Okay. Great. Thank you.

Donnelly with next Your question Citi. is Patrick from

for really of a Hey, questions. sellers? just bit to the play the Obviously, potential taking markets, M&A the that guys. reasonable just rattling Maybe the out more of X.X follow-up you given little the seeing on leverage does about is or earlier. a flow you activity a strong, in little the talk take public Can longer Thanks role Are at cash outlook? pretty bit question times. in in a some pipeline kind volatility

are weren't of and that Well, lots you if that's even are a good call always -- looking, looking in obviously, question. we the There we're Look, assets always us. market. people

larger this We in more years past simply acquisitions. driven lab Q² was of largest couple in XX% our Q² of I couple sorry, of which our a bought We've numbers the and that the over joint from million own done and bit largely that that think, Quest, I'm little was ever for need by we consolidation of deal, venture, our year, haven't lab terms active didn't dollars a of been we -- acquisitions. We $XXX more we business. paid, from that

space this high, very in the the technology, equity to valuations is operate equity healthcare, and multiple for that space, assets reason the we is know, trading firm that are essentially in that where the you one from private private As really information multiples another. those

we no be valuations. assets. And And always we we assets, that look seen so we what are continue have then can us certainly you at reasonable going bumping very to they major look the at do versus and changes But these but value up to create, keep before. If we these will conservative. see

go necessary to business from is clinical, lot versus euro I and with our if our that And makes the like you can Leverage and the peak of and different. model we willing we may reasons for would we rates. debt profile, are our generation debt our believe already in opportunistic business that told the of where will We leverage believe a live been we in bids, visibility more six we even the is history more that we we And debt market alignment and the things be booked live get got rising commercial times. at we model, balancing willing there's we about been rates with you bulk of essentially see debt company because by our because talk that there and were leverage if majority with be between business profits those legacy would an saying ratios of you good companies, largely I won't business is own, that of at back reasonable the we our has I've cash Plus our -- year, for because healthy X.X. comfortable was very a capital the ratios hedges or of early here pandemic heads. us to that assets dollar again, those, as euro what excited And remind have with have discussions will us And could profit. if environment have and I where to and dollars is. our vast make is prudent. have that simply a flow fixed with even to CFO hope our deployment We've all both were business why that especially the know profile the willing a

of So continue comfortable, us makes at all rates that to be historic lows.

we the right business. So what's do will for

then of the our negligence within as prudent sense eliminate view to doesn't management that from capital what part. a again, internal to opportunities. first, continue depending limits thirdly, on and forth would reduce allocate is we will But we it to back as standpoint, you makes acquisitions; to make to see our mean, us at repurchase, debt investments; a We secondly, current on sense I share intend will and to debt go try the to rates.

So you answer We're done? question. I very give guess, can that's, the best much. to Thank I your

way in softness relative the year never did in the Obviously, strength growth. framing a just make double-digit Ari. last guess to to still could you I last going I you're we than Thanks those just sure that order like talked underwriting environment about in you I R&DS want more if growth follow-up, strength see the seems just support I you we the guess record I sufficient funding, it. years, And were of that's year's the funding squeeze follow-up minute. prolonged want multiple If hit to on saw one about outlook, mean, you've type have when if numbers. to backdrop. it's a out levels, little bit the to I some think Yes. it funding

numbers cannot gave numbers, giving into the give big I not the but our of cannot here dollars RFP EBP. if or be should know pipeline the you -- seeing earlier we the I I'm that I I mean you are pipeline. not a biotech, that is some majority, to don't again, I not, overemphasize dollar and volume -- sales translate you and vast numbers actually majority because them I in

the the record of is are not from at high we slowdown funding at seeing not pipeline, any So potential all. And impact our pipeline into levels.

us we not that affect bit. one time. way, the seeing again, it -- I'm And again, the by So all talk won't We EBP to happening.

That’s encouraging hear. Thanks. to

you. Thank Okay.

That's our Thank be you. last going question. to

the of taking join quarter. have Thanks. forward rest for the for again you today. any in be will next speaking thank us follow-up We and you time to the Myself day. look might to So available the team questions

call. conference today's concludes This

now may disconnect. You