Syneos Health (SYNH) 2 May 212021 Q1 Earnings call transcript

Good morning, everyone. With me on the call today are Alistair Macdonald, our Chief Executive Officer; Jason Meggs, our Chief Financial Officer; Michelle Keefe, our President of Commercial Solutions; and Paul Colvin, our President of Clinical Solutions.

In addition to the press release, a slide presentation corresponding to our prepared remarks is available on our website at investor.syneoshealth.com. Remarks that we make about future expectations, plans, growth, anticipated financial results and prospects and our expectations regarding the COVID-19 pandemic constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, and we disclaim any obligation to update them. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. in the Factors XXXX. year discussed Form of are for XX-K ended factors the section Risk our These December XX,

this be events for accordance discuss exclude will our a core to call, replacement financial non-GAAP of supplement During which measures with to These measures not should be certain outside in the a transactions GAAP. measures and non-GAAP of prepared operations. we considered consider effects we and

directly non-GAAP I financial to measures, measures to For comparable a most appendix presentation. GAAP Alistair? refer the our turn reconciliation would the to of Alistair Macdonald. over please with like the of call now

impacts good everyone, you across continued guidance through year-over-year that our we and health. fuel sequentially Thanks, morning, had awards gross continue revenue and Ronnie. quarter hope growth. offerings continuing you continue team delivered strong today. returned and importantly, strong for Good and, another grow execute growth. of exceeding our are to backlog joining of as of first the Total families midpoint metrics to both integrated COVID-XX. I product in I'm us your results, reported quarter We across excited to the thank and financial all our to segments, strong safe

unique We in the are to continues our enthusiastic market. that resonate strategy

and believe this high-quality our share to We leadership us well and offerings. accelerating positions position We we continue One environment remain unique global to execution. large full-service focused product deliver as continue on capabilities our and commercial Value SMID strategy penetrating pharma, our Creation Plan scale, in on by gain enhancing development further and integrated Syneos our

COVID-XX our of the trials year-over-year XXXX, balance strong non-COVID-related primarily projects. both driven growth robust by and of our plus We vaccine for backlog treatment expect

has the a the sector increased sign backdrop As for attractiveness recently we activity. strength this believe a future. underlying positive know, our and CRO consolidation provides of is We witnessed and space the all of

highlights from key other for the Now quarter.

Solutions, QX Commercial ratios First, and awards, XX-month ratio backlog Solutions a in new and growth Deployment in X.XXx closed of X.XXx clinical company XX.X%, of for solid with net produced business resulting trailing growth total X.X% Clinical a Solutions book-to-bill of record This year-over-year with book-to-bill we X.XXx. for X.Xx of backlog total.

Second, the XX% we first gains achieved adjusted profitability adjusted margin XX quarter, improvement growth in compared with basis strong and quarter year-over-year first of EBITDA the to XXXX. EBITDA point

Third, net which we start record $XXX.X quarter. with by strong first million, cash the achieved operations cash represents a flow to of XXXX, for a provided for

operating the for of into metrics business. getting our details each and results Now

driven an quarter, quarter the quarter, from Illingworth of growth including clinical COVID-XX, first fourth in XXXX. by continued the projects, we a recover to continued During to the acquisitions of Synteract the new contributions compared revenue X% acceleration Group of grew revenue fourth and from X.X% over the Solutions and of with in Clinical impacts Research of our recovery start-up reimbursable expenses. total

revenue our strong Therefore, net these of experiencing. were a Our from impact by record however, acceleration year existing experience impacted the We not which reprioritizations pipeline we of expectations our projects of also some awards, did, demand and the offset book-to-bill the delivered further demonstrating clinical projects. team changes are that XXXX. replacement gross for ratio, effects full do quarter demand

Solutions new sales, at record growth strong by strong opportunities. of XXXX, over Our is pipeline impact revenue accelerated balance positioned including ending remains backlog the X.XXx Clinical ratio book-to-bill TTM the of for and well of record acquisitions. a driven

end our the backlog in at of success clinical continued projects X% quarter. achieved rapidly this although during also represented winning less than COVID-XX-related QX, evolving area the We therapeutic of

upon level of capacity XX% largely period their gradual we sites a believe access the where which some are which of has ensure a stabilized we needed are of experience can to access are level to continue based trials monitoring period teams point are to some to progressing. sites over at vary Currently, to sites, of The clinical level improvement remote Our permitting accessible in investigative and all obtain visits, site's via given the activity. our trial. a physical remainder of requirements of able

be While continue level sites prepared continue to this cases, in our localized further XXXX we COVID-XX operate to and are of cautious access increases amid as they expect we in to recovery well in progresses. believe physical environment,

both approximately in the levels. at enrollment By improvement trials. start-up ongoing activations mid-April, pre-COVID and were new experiencing new also site the of clinical patient rates XXX% of and patient of are We trending new pace enrollment

activations expect Solutions in Clinical this and revenue of our increase strength balance the growth our to trials, vaccine We year. COVID conversion site accelerate for year-over-year with the and along enrollment, backlog

customers our innovative in invest As closer ways to efficiency trials solutions. bring we clinical for drive decentralized are search and continue patient, the to continuing to to trial

best-in-class engage in also are to who for primary could model, care previously to their homes and Group, often representative seamless patient and populations streamline Our platform remain our improve trial of trials Dynamic Science mission data generation offer part partnerships Research to in Science Decentralized with Assembly patient and Both These our and Illingworth to evidence recently their experience. home more and to orchestration, furthers real-world integrated capture, announced access harmonization. and our of clinical approaches will burn Medable with diverse will increase clinical and now decreasing participate the a the When work patients are capabilities patient and DE&I we data health with XX combined and network. decentralized not able side physicians. patients allowing access mobile technology customers research patient XX nursing advance research. solutions Medable

Solutions. now Turning Commercial to

quarter. the fourth quarter the business, offset total revenue growth of compared a of to growth our our business medication by overcoming typical pace than in divestiture This in see sequential adherence continue core with X.X% the We trend. first decline was more resulting recovery our of seasonal to in

had to X.XXx. once ratio book-to-bill our quarter with XX.X%, again team commercial awards, increasing a growth net TTM of of strong Our year-over-year

our model the penetrating increased awards sizes. commercial drove X.X% nearly market to our XXXX. to awards XXXX, the growth and by Solutions appealing first gross all increasingly of XX% of compared quarter of is to compared This quarter Importantly, customers integrated Deployment the performance of demonstrating that first full-service backlog delivery

is commercial customer with being to engagement of Authorization, capability, education cutting-edge pioneering therapies practices. Our the Use support Kinetic, Emergency of COVID-XX deployed and the awareness frontiers many best

customized provide approaches medical, customers to This position specific and established the Our consulting we evolving unique navigate EUA the service integrate enabled is leadership across Kinetic demonstration and the communications, they to expertise market. of needs to of delivery of the have as environment. ability the further has a education commercial we the innovative regulatory,

leverage activities, a We continue strong optimize our helped and to face-to-face field additions to team HCP innovative quarter first engagement of of very representatives. enable virtual which field Kinetic through capabilities combination

integrated consulting Our commercial of for comprehensive practices year-over-year double-digit are and our is communications portfolio. business capabilities suite our increased see experiencing growth. fueling also strategic programs, demand full-service continues to This in growth

growth these to sequential We progress demand Solutions expect backlog and we XXXX. Solutions, Deployment with accelerating coupled drive in and through dynamics, strong Commercial growth year-over-year as

Syneos particularly contribution development, to commercial clinical midsized continues offering customers. One in The influenced One have we Our product the by awards. to are to market, component for the development strongly product been our to date primarily with an of resonate increasing but also small unique awards Syneos seeing

of year, coming asset begin by in assets providing commercial the to We in this commercialization awards second One pipeline Syneos the portfolio followed first an additional for years, and revenue. expect incremental future half the

work supporting Syneos We earlier-stage and collaboration the are for these signs between of early Synteract, One also seeing further success customers. in

Jason? thanks to Before I to turn community best again for under call the each our offer challenging now for customers to deliver entire they my the on Jason our collaboration. provide the Syneos financial health to with their additional resilience, Jason, and culture ongoing circumstances. and patients They I continue over want execution and focus and build superior performance a comments will sincere continue help other, their to guidance.

Thank Alistair, morning, good you, and everyone.

Slides billion, for total currency X XXXX the first on $X.XX X.X% constant our of quarter is X.X% outlined presentation. XX in and Net Our of and to XXXX. compared the first earnings up debt of revenue was quarter

Commercial Our Solutions reflect today regulatory and from recast the Clinical our segment the segment. operations the Solutions practices comments consulting of to

segment to serve customers. the appropriately better our to practices Solutions services more the Moving aligns the Clinical

staffing Clinical include a increases the was quarter million, $XXX currency and X.X% expenses. business This XXX XXX project the constant contingent XXX start-up in growth These divestiture was quarter recovery of revenue X.X% Our or the XXXX. of headwind basis points compared first from Solutions reimbursable increased headwind slower to points contribution XXXX partially from from up of offset point for our of and activity. in basis the first a by a basis acquisitions

quarter headwind in basis margin consulting basis The adjusted EBITDA Adjusted the by first revenue of representing quarter X.X% revenue XX.X% was $X.XX partially XXX for XXXX. year-over-year, quarter in by XX impacts the driven the point growth of was EBITDA quarter headwind expenses, our EPS the increase by of $XXX.X million, medication offset in quarter by adjusted EBITDA for favorable first the an our from from of currency revenue Our decline in offset decline mix XX.X%, impact XXX lower adherence XX% was compared business. of point COVID-XX increase the points margin primarily increased and partially of primarily This exchange. XXXX. first $XXX.X expense. EBITDA adjusted of business. down in includes million, or compared and constant the result interest Commercial of and our to the ForwardBound foreign by This program, Adjusted to driven commercial to X.X% basis first diluted a an the a increased reimbursable first increase Solutions of divestiture

million million first of quarter from for million by were expect XX.X we to DSO in X.Xx. leverage our our Further, remain for first end X.Xx year. quarter, of $XX full quarter quarter million We achieving million improved $XX to $XXX.X quarter in $XX.X flow outstanding utilizing million, year. ended for capital $XX.X first net the expenditures a the in for the and significant $XXX.X this of generated resulting unrestricted operations billion, the improvement committed days. the of with and cash XXXX. the the target cash of leverage total to of $X.XX We net debt to X Our

million of by facility. of quarter, AR million A $XX.X Term $XX Term expansion we partially our of B, securitization our Loan funded the $XX.X our the Loan million repaid During and

also $XX.X We our million repurchased shares. outstanding of

tax for for effective our non-GAAP XXXX. XX%, consistent the year the rate full was first with expectations quarter Our

our to Turning contemplates XXXX are company's current guidance. our COVID-XX on to the business, outside our impact the related view factors guidance now of the estimated control. of This COVID-XX recognizing of

and $X.XX XX.X%. This to the XX.X% an the growth acquisitions expect headwind continue billion full basis of contribution of approximately to $X.XX points. year XXXX revenue points of our growth We XXX to from XXX in divestitures from range XXXX XXX billion, to includes basis representing of estimated

We adjusted an to continue basis This XX of total $XXX adjusted $XXX XX.X%, the to margin expect the XX.X% range EBITDA represents million up EBITDA midpoint. from of at XXXX points million. to in

increasing of XX.X% are to our expected a share our range of of to we quarter impact reflect XX.X%, diluted $X.XX growth our Lastly, lower first the interest EPS of $X.XX year-over-year expectation repurchases to adjusted or and to primarily expense.

current $XX XXX.X expense to Our share million of million non-GAAP cash taxes effective and with of diluted our I shares. to the for of count million, also expect expectations. million some to commentary we guidance net outlay to from Further, range XX% quarter a you our want rate continue tax to an incorporates second estimated $XX interest provide million. given $XX for $XX income

As to accelerate lap of growth in we both impacts businesses expect to pandemic. the we as year-over-year XXXX begin highlighted, Alistair the

estimated acquisitions any This to of points XXX million. of approximately $X.XX $XXX billion to headwind in We revenue XXXX. includes basis to reported and expected revenue approximately adjusted expenses. from prepared Operator? of tailwind XX.X% divestitures and questions. compared points also our quarter This of XXX expect of as second million we'd our of completes be This from $XXX reimbursable revenue includes answer This $X.XX growth a an EBITDA and growth billion growth of to to XXXX due to quarter an points. second the happy reflects remarks, total XX.X% growth XXX basis basis approximately contribution

[Operator Instructions].

question first comes Jones Sachs. Our from Robert Goldman with

back lower bookings. look looking does give guys go Alistair, reprioritization, the to it mentioned you math, the gross cancellations expected. you the wanted pipeline prepared reprioritizations or remarks. obviously these know I that the bookings in I drove net But like don't Yes, at to than

in a the anything Was more better could several? of it impact understanding a just this net get you Any in bookings. Just wanted to quarter the within large therapeutic change So client? give from to commonalities and X areas? there? between try Was gross

a reprioritized Yes, some one in the customers -- of program. with Bob. the of -- of I it's of side, in the larger them oncology Sure, are Yes. a well, couple that think on delay delivery

our actually a pushes projects couple of So awards just out of window.

starting our bookings rather XX next months, they're than so to policy. out pushing further we So due to take have the within back, them

So care stage awards, they but -- later they're on a in will one, therapeutic come XXXX back I not and not in another so at -- the don't other related. remember one, the as

lag, you're it of is just -- gone so it actually because being they're kind overall of that a approvals of market, backwards of right, think out but on months. other time a and that replacement projects it just bit replaced has pushes I customers by building they're little couple some the bringing of to spend as what some rereview their of to it

not nothing doing sizable, So it, just them. couple of seeing. we're trend of It's concerns a It's though, really quite that us. customers there a one that

have at So I haven't record probably if think we would been these book-to-bills happened.

very a it's environment. So strong

I And X.Xx pretty think that, we the of had good extra would in juice book-to-bill on tank. top have anyway.

So nature our the of that's that, that happens, but right? unfortunate for us business,

just have makes guess No. maybe your Medable. done Science it with -- just of peers of announcements partnerships the because with I seems you similar mentioned the there's one partnerships some those follow-up It No, XX players. like sense. and

of competitors taken Some have of internal the investment approach. other more an

there's curious, capabilities? hearing marketplace clearly offerings just each sponsors of you're it guess on are these the just And far I'm provide like is, have comments these I offerings. to what differentiated in your quickening the So seems any the to being these really a question able other? how decentralized pace as from from as

Well, -- a think for I while. worked sure. Yes, mean, these with we've of organizations I both

of both the got some ones. So good we've and experience of smaller

offerings, more in bring their customers by innovative at COVID think, They are able driven we're overall I through. as to to them look offerings. similar fairly are

"We say, and Medable, so come like who we'd say, are to who work partnership customers to Science so flavors There you XX, model. Dynamic you like with us customers the have continues service having We work to the "We them." like and like them." we'd offer good important that to So is so. Assembly do for model under ability That both come in with stead

So the they're different theme. of flavors same

else. bit Oracle Metadata, it. of slightly different, like it's It's days, it's old think to -- got but a using You or something

I pressure a decentralize, So trial. open to to to think more channels that

the Illingworth So way coupling doing us us can Medable helping us helping differentiate Science to think home, if enabling and a you I ourselves is patient home, patient's at actually to get XX. and what we're is all the them differentiate take and helping with with the up to differentiate decentralization which with

it. Got sense. Makes

Our next question David from with comes Jefferies. Windley

environment, a follow to Alistair, up question Bob's good the last I to -- segue. question, here. the wanted on DCT on On parts two

Science bit XX more tech-enabled XX it's software-driven, tech bit little that maybe Science is a Medable, maybe understanding the service-driven. on First, comments, a maybe more Medable my little

bit I'll answer a on offering, pretty drill the see in could, I have you you a that down then they're you -- mind, If I you further any. let is follow-up. got little if don't difference there one, the much know same. and if

I'm going Paul give Well, service knows of bit the capabilities. ask for a that to because flavor more detail he you to

differences, So if Paul, will? of couple you a

pretty your I that hit think, you've think I well. No, is comment pretty Yes. accurate. Alistair, And Dave,

key have that I obviously, XX perspective, provide model, work eCOA, Science it I what capabilities and in front, is more partners think ePRO does Science that broader look in have a I opportunities. at Medable telemedicine When think when partnerships and home Illingworth are they have we has think, that capability. those to care I had from partners experience the us, has having clients XX, a really health different Group about for that why really with. both

home that having full health having with something Assembly, So to combine create ability Dynamic having XX, and the in think, best-in-class us that both the with offering and Medable, gives technologies different. and we really ability Science care, new pull the to

specific depends So And can also can care how think ultimate is to a around at It I building look over testing we the ground health just those, the they gives I in flexibility. on technologies when bring It think those both that. work with our new time. is them us situations. think I home evolve great client how what and as will

a think had acquired trial is, if if bring But one, willing what between as it that and if to capabilities versus So needed own home if and you -- things to as a you plug is -- in as and the control distinction I play follow-up and a distinction could there. love health want do? don't you it's what's decentralized question, simple and tech, think broader I I'd to that have to to software what Is understand clearly a it's element, you acquire the to your about And strategic you're other Illingworth very I life, you to services, Assembly? the that Dynamic more want perhaps valuable different it?

of It's Yes. down kind split, that Dave.

it's have And our we've own more with we business, actually like if to think we well historically. that. So of than came own we more matured positioned service-oriented, as some we're have as tech tech. a I feel Illingworth

some technology but we that So at and service the of comes can service these moment, playing that the we're more tech looking with more as to transition of get companies. plugging and own side, in

so space, the the it look. like innovation we we we'll So brings, like continue to

one. quick Last

out next a X launches really One for under Would commercial in of full-service in second little months? something XX your Syneos the launches prospects the to you bit think you the fleshing auspices the full-service maybe mentioned more as that You being half. mind commercial,

Yes.

that the we driven is work One. winning team really prepared is Syneos think Michelle's made I almost in independent remarks by the of comment

themselves, the connected its the from full-service think little clinical, Syneos bit full-service is teams committed award, which delivering clinical together. as up that's One while kind of or package own picking the and what a commercial a Syneos that One a to Syneos so a that and of seeing behavior commercial commercial with lot I integrated would mindset it right more disconnect of we're and running One launch is class we are a

are in. think definitely we small to I bringing that. that are a So in rise Certainly, seeing mid-customers

in I think increase the that of coming of channel. XX% through we're sort businesses amount

to customer any with for adds starting that size. Dave? resonate strongly So Michelle, pretty

David, yes, two things. just

You us our That is of heard from win Syneos Syneos of of commercial starting through the this to our in talk into XXXX. of end to first partnerships clinical in flowing also XXXX. about commercialize back half XXXX. one And heavily One One start QX be year heavy and the going was

So just think that's I additional.

are as line seeing we wins we're to those the of sight commercial revenue well. flow So have that to through start going

next comes Crédit Erin Suisse. Our from question with Wright

Can start-up, dynamics does the a of now that you time what the update seeing returning lines site from perspective? environment enrollment you're seeing? terms market normalized that study And assume give in guidance to in general us on RFP of accessibility, an COVID flow, your you're terms more that

there, we You in sneaked demand go, is strong, good. right? Erin. So here questions X environment about well, But

requests time on a much seen and we're I we've And can the with that improve is think RFPs XX%, connect every is of difference, year. pretty right? coming the of site, about team. where But about very and record to we're and strong think, that There's able year. quarter accessibility, have through are about remotely mean by connect being the from -- in this flow last some get EAU the we And of we are commercial, in continues we time where think slowly. site. there XX% commercial I very holdouts, can couple is effect RFPs then able single Site but I we're in that of for just a seasonal to to with get everybody. fully Michelle's fueled strong clinical this sorry, I

the all keep sites forward, to able moving cetera. we're et So

improving. were about start-up is pre-COVID. where that's of we So Site XXX%

of first they pretty But a through the are right saw time trials into just in through, fact, came months. standard between now. but for and out the In coming I trials XX the through and going that start-up that's starting COVID flat coming activations. up much head And office combination

us picking future. the the for drive sign And as good enrollment revenue in as at a well. is activity that's It's So process. start-up we then more up more right

We're So good enrollment. we're seeing XXX%. about and engagement

through. Some vaccine of a that is running trials by couple of larger skewed COVID that are

you get those. enrollment skew a the from those of So bit and of pace of the a

the So delay bit a meaningful where a countries teeth the our that that yes, that bigger good the the some dampened are to and a we're little bigger -- tends to COVID, in I impact thoughts obviously, world recovery cetera, some be markets. to but are Brazil, seems rest sites, really the out a to by of of of go be of mean, signs. vaccines now have seeing down bit really starting India, is of et in fact those of the some in in

Okay. been change still has about to of be this. That's been in changed commercial into talking in business I can offering clearly, you're the transaction. I'm there. too terms mean, the there the behind commitment? and of the I here the and to One the But still to Has sort since helpful. business? way Syneos probably consulting the there commitment rationale you then guess, changes I regulatory resegmentation end-to-end has the offering? mean, of seems much full reading any strategy any the speak But And inVentiv

and Yes, changed since evolved Yes, absolutely. the lot a business that transaction. has

regulatory and commercial, a day actually the have the strength, in in pretty clinical -- their work that we as of consulting sits within that So QA pieces is whole grown moved It that much into side. group of outfit Kinapse actually X. the from on consulting

our with connection day-to-day kind CDS so X activities they're start-up the who and of they make those with regulatory into because we've that's stronger aligned and moved development services, actually work that day-to-day to them more operationally, taken our a constantly. group, So lot clinical that -- actual groups clinical into

reach side of clinical. leave in a So a of XXX% seemed bit it work's in them over the when the to commercial

Our next question comes from Patrick Donnelly with Citi.

an the past on And there? few up commercial the segment quarters? side, Can are you in the what's relative much you're seeing trends there? COVID there? one the in question. feeling Just talk earlier that visibility just How you the How about on work's go-forward through to following

Well, start, hand I'll I'll and Michelle. you to

think engagement very going it be seeing a good engagement We're around around we of lot commercial. That's a I feel forward, full-service lot about honest. to Kinetic, seeing of launched products. and mature

won COVID a we of slug going a QX think burn bit good -- that -- I good quick go of But quickly to work Michelle's relatively COVID is of in burns work. relatively lot anyway. well, a work

projects, that, more something I XX to And demand that through think pushing XX products seems as come market. up projects, commercial. to COVID-related be in like

We So about feel about confident we yes, feel it. it. good

I of think record field. new we the a number had reps quarter into the in go

missed? good demand. I pretty and there's a robust business that, Michelle, sign But that anything that's is So good

Yes. I'd add things. two

really thing think I are great starting create the momentum hybrid to some one is Kinetic-enabled marketplace. representatives our in

would virtual, which that's in-person strategies field-based are that the to think interested in work to the utilizing I differentiator communicate a say regards that on teams and customers I the with fully in. way virtual, new based digital working, to having ability is big they're channels fully

from interest our absolutely is that significant driving base. so customer And

more be first And I thing businesses, would tend So I to in that's project-based say think consulting. the is the second which our thing.

is comment critically and communications heard consulting the health important. becoming in you care make double-digit communications think -- growth that in us we're I

had we nice good now So product our built in so last these haven't those areas. a just currently about, customers and are And we're that expertise to communicate therapy. the have this become has for that the middle EUA Emergency your we've interested of integrating offerings kind are either seeing whatever of customized around COVID-XX, Use that comment just about the Emergency area really Authorization. development in Use growing, Authorization And very that that integrated in to growth of in another doing environment. lot at then that's really of we're common because We're It's it's have a or capabilities about place traditionally unique in those information some the platform have. of COVID right? another treatments customers seeing year some

And channels it a the from way that and really mean the with information. think about very a we many have to, to need out very I in customers compliance a along just -- understanding world get kind the regulatory information perspective to a perspective, and need this HCPs need to to communicate so how this of in specific across

to of to get Our been there our well. has manage starting digital a we're Kinetic as with well unique ability -- capabilities traction lot that as

So we a feel we're division. really good about commercial where going as

Yes. then the on just, improved Alistair, maybe That's helpful. And backlog...

Pat, you still here?

growth sounds what's pent-up into just confident that trial And of Is like into demand line accelerating Yes. Sorry. that you're pretty back? coming clinical it around in your like XQ. the sight how quickly plays So out?

burn around there. just backlog the improved So

Yes.

around So ago, it so long remember it. QX, some I can't the somewhere exact we you mean, X.XX, that. book-to-bill. number, remember, if had of seems X.X-plus I a

start-up revenue that work in to still me. from was QX the the won, the plus awards Those X.X QX, throwing backwards out feels of that So on you've XXXX. got from that's in top into get projects starting that we've QX good of pushed unlocking to

So you've back. got that work coming

You've got we're that burn that share so demand revenue pretty coming off able the coming got to new out recruits We've we're market on. taking through, of well.

into of year. through sitting, we have the very very out about at end XXXX. good off and to the I'm a rest coverage start. backlog looking going thought that confident and and We the be terms of be we're the where yes, we've what optimistic year to We're to of where we in the got were So we

Great. And then...

percent naturally And than is of feel see commercial burn which that's good backlog, on to quarter good see -- as quarter XX% really X, backlog, to that. visibility, your track we back Deployment Yes. Patrick, -- to about first given that up give mid-Xs we months the commercial bookings X, the on up into XX balance below about in And quarter sorry, the where or into and higher X what just we'll now, our when we we does at internally, look just right it get tick but for modeling Solutions rate, X year, on don't the we backlog quarter the and disclose, talked purposes. be of overall we we then mid-Xs But us only to a the the in the visibility clinical on take at. we X.X% question little closer consulting June. growth in based stronger I'm to relative in add there

Our comes William from next question with Kreger John Blair.

accelerate. to an hear that divestitures. takes know guys with growth revenue talk will you've puts acquisitions there and and you got some I about expectation Great

you the So organic if to half quarter, a you you by what fourth think clinical give and a just of growth the your plan normalized -- of the in sort can do year, second relative by commercial? sense maybe should us be

John, it's here. Jason

a as through So of yes, and moving we COVID right, pieces, do I work have includes say. reimbursable mean, still lot you that mean we you recovery. as the if -- I expenses,

quarter the digits. all out, start-up quarter If start quarter outlined the trials in in is sort be quarter, ramping. the rebound to really metrics of reimbursable being both business X. Alistair COVID by see second sort half, really everything going the The as clinical businesses as really And double commercial closer digits excluding and kind X, in the the you you if everything given businesses will just of year-over-year, to -- first mid-single relative compare you trials, the of mid-double into quarter to things growing look then to strongly out. about as strip business study And expenses, both well the you then strong year-over-year it second sort particularly digits in in to works up is get think in way vaccination in of our were

and clinical So sort or mid-double double then into the organically. and digits is recovers pacing. of more up And quickly then quickly then digits the mid-double into more commercial

reported? to and what COVID that segments total helpful. first And in a can Jason, awards COVID Very revenue about us give you in the quarter was both relative just maybe rough you the sense the contribution

Yes.

quarter X%, about talked award than it less we side, was than our I on total less of being award think, the side, backlog. it And the X% on X. So in

So not component. big a

actual We And million in would material full is And I last the far than ramps as of last for was of quarter have year, not to it's quarter we in What beyond. not talked about really and but total the X, haven't less really second revenue. it in that off starting said us. yet. probably COVID it's $XX that say, ramp number year it year,

something your a just are Great. something really start-up that quick to you just XXX% pre-COVID maintain? as Is sprint structurally you can? And gave running the metrics you stat last Alistair, remarkable has one. like fast asking normal. they that changed maybe Or that of one can -- pretty as staff that think

We've enhanced think can No, that our out horsepower They it. processes. building ForwardBound. maintain streamlined. are in we We've through lot more we and team. more been more offshore capabilities There's the -- automated a

and sustain it grow can yes, actually. definitely, it, So we

having and in good area that in experience. recruit to with continuing good bringing we're success So people

So I to we've people a culture, it. be built and of good part think a want

comes Anderson Evercore Our next ISI. from question with Elizabeth

thoughts of helpful. thinking pacing are different any work how has But Obviously, the profiles. first question, you the revenues over the COVID of provide would could reimbursable be that some about course there year? you My there's

Elizabeth, here. Jason Yes. it's

So in back at well, in which the said guess, COVID acquisitions, standing saying patients and see past it's peel we quarter in much. kind up, and really COVID in we enrolled engaged to the these least the have these the in accelerating as X, trend I trials back then in we get you as that then mentioned of -- of and the I we'll sort and what strong really, as was the investigators Alistair doesn't that growth And see -- add change on line earlier on organic side. the clinical side, with indirect continues

in three accelerating from On going well, four, side, rebounding comp quarter the pretty quarter the then easier be XXXX. it's two to as strong and and commercial quickly in given

year-over-year. continuing then a and just when So think up but not get comps it's quarter move you the bit, It's significantly. to in two about recovering easier

any involved That didn't comments And any conjunction, peers? your that of do on of your peers have you strategic about And are that I on -- do come you then -- seeing a makes clients in have know environment? have number have these you you versus any across sense. what Obviously, larger some the scale were actions. you concerns in can of sort updated side. competitive relative

interesting that's has Yes. months, been it yes, few an Elizabeth, for sure.

We haven't worried had our any who about are customers scale.

clinical I that need us probably in think point INC we scale inVentiv arena. the and what where we merger, to the we did have a when the we put all did

there, they're haven't So there our at about customers. that pharma anything like we of companies biggest with work worried out -- all. and biggest out companies the and from scale not some We seen

when -- we of What people good. work. bit is, seeing get disruption. all to opportunities that's there's a and hesitancy for of a So recruit win seeing to are that you bit We're obviously,

So environment. scale. our But issues There's good work any there. out see a of it's we lots don't no, with

KeyBanc Our next Donald comes with Capital from question Markets. Hooker

anything just with Q&A that couple in guys So partner? -- sort much of is quantify? direct I'm you or or of for economics you have as the here. list economics more very a kind any convenience came leverage that's and get them have you interesting this you from so of of factor Or there. a think would harder sort channel be a do work the could scale client any times to wondering, maybe something I partners that a technology size of it you up

obviously, through channels some, big mean come got spend we've I Syneos. Yes. that

volume. the not So rarely. there of some of in all plug there is where some -- But partners structure we them rebate we're in because some is able big

some there there's good yes, efficiencies as -- So well. but and

how and of certain understand we're plug they language all bidding we in partners, ready set a the when They go. start-up. through out So to have

that and customer. capture there's the some through So efficiencies as to can pass there well we

there's yes, of So some economics in models. some the

committees we And together. it put drive innovation It's continue too, on, really and I having how add and the Alistair, together is scale we can I the size we to can if steering do. though, think,

a can we with the just we is part productivity and mean, perspective productivity a of around and want it why drive clients, more process that's from innovation big the So for partnerships. I those those large-scale partnerships, and I think

follow-up, the -- maybe pharma so the the of Syneos us down that's in in the vision you part kind growing quick of a ticking are space, bigger get a pharma XX. revenue had other I probably give for large hard as also to the as your of top indication large bit look you percentage year-over-year, from know to of then in pharma anything. And it's but It's I conversations know appendix, forward? But any fast. going that the can sense at I of any large with guess components Great.

Yes.

we've good. I the Jason penetration but think related we has down at the is I that We're tick -- to middle I'm ask thoughts, that guessing I'll think had large it's have been guess still kind for year. pharma in capabilities last of and we -- and of his finished. end I big program -- I at the a think the QX that

I we've of So start-ups. you've in work large got -- mean, plenty pharma got

thoughts on So will as correct that lap that, that? any But Jason, we itself.

but the stat the haven't we about this have it in quarter, past. Don, published we mean I Yes. talked

strategic it it's at the has point. large into Day, but in I winning little our at area accounts. backlog this quite we're in of that think from period work backlog, And pharma where about we one significant growth talked a gone bit been Investor

north I some that the completely not given of Alistair revenue there pushed yet, just now it XXXX, of think we mentioned. talked XXXX about of And to and into that's just starting XX%. is out through, in being dynamics that to pull addition COVID

So that really line. a starts until through timing to into thing pull backlog the just it's revenue

Instructions]. [Operator

Our Brennan comes next UBS. Dan from question with

I'm to think implicit been like about the how questions on COVID your there's much guidance? obviously, stream I'm we 'XX. could Great. Congrats. couple just how guide 'XX into you're possible I in think you And 'XX, baked think beyond wondering, help of the benefit going to know opportunity in COVID. a to wondering us tail through Is it not get is of about we of kind but 'XX? revenue just as

my me around you Yes. the give Well, thoughts this. let moment at

think, today world. in and number there's think So I cases again, the I a COVID of yesterday record

through resurgence impact in revenue contemplated and projects having a coming potential from what So the we if around big both in tailwind a a we've that as the guidance is world. markets and COVID's headwind as have

when putting at So a together when got sword bit you've guidance you a the of COVID. from double-edged moment, -- the we're

in capture sure offshore them got just India, We've cetera. we're to et some and that trying big them that all service think centers, make of Argentina, we So through. in of that some

headwind that the a potential as in contemplate well we kind as tailwind So to stream. got the have revenue impact as can it a of

thoughts? any Jason, So

still what we sort had from of things to But through working where it, of system, clinical and I summer the operation. think midyear in much we in we previously burn mean, said the terms more way side, I XXXX back the and normal don't largely Yes. about how Dan, revenue a in is on guide their are think guess, and thought terms I of stable. the changed the it's rate we're

is gave have continuing continuing what in In pipeline that percentage of quantification a the terms we're the then proxy about we the your revenue to and of to of amount, opportunities. information see, plenty backlog and think the we're I around reasonable think to

As win morning. a COVID matter of this fact, I saw

flowing continue we through. to So have that

business but was thinking wins? you're know I to Are question that? from if related about just and but what planning asked what between was was the opportunity there new towards any you question seeing have I calls, was the impact I is a you of view M&A And see for? maybe environment, don't same Great. the hoping would to interested but that guys kind I I maybe, there a accelerate asked, hopping think are to you

they've are that not in that big Yes. doing through worry integrations experience got I mean, before. customers CROs any going about

can So that's be attest integrations -- be how can difficult all can large I to scale. at I

thought it I people, of going but get process are of think et those So that. little how minds to staff, don't be, going cetera. customers' anxiety discounts customers cetera, concerns, in concerned about And turnover et organizations sets a it naturally stable

And what the opens maybe off work edge, yes, I So other but us door win side it us, companies. for of do those been the we've think we'll we to a can of slight through gives that.

Sergott with Luke from Barclays. comes question next Our

one bookings. mostly for me. This quick One pertaining to is

So that an I developed and the can things the One then there? out think size recovery overall, us complete that there. offering on and seems Syneos were And given so I that update would bookings with the -- work of wondering you've that, that that strong -- just you can and from all you've been I guys just that Or that steeply of because the commentary just I all As more much work. think the thought that about color I and up of you have as I it as the big there backlog cancellations well idea any quarter it's have, those the just COVID maybe bookings positioned the you'd trajectory, -- be so are about some on given how there's coming type biotech have a that businesses. give get COVID on not the that would was would and in those

Yes.

with start I'll I the last bit. think -- yes,

get say, start took within that early X-year very are those window or back can of later disciplined took think, the I the as cancellations and on bookings out in I as 'XX bookings, around. the QX, the we year back reprioritizations, we of will come some in that we

that I we confident on bookings of the I that basis. is I'm in have kind had pretty mean difference. same we a book-to-bill would think that level QX had So without the of

wrong the with demand yes, don't anything So see I environment.

specifically because the I own with through Emergency much think One their quickly that COVID. see are difference mid not to around the customers, very traction small to side, don't continue people Authorization. moving Syneos Use on think on I makes

to side. brings so much doesn't the to speed One regular COVID the that So development drug Syneos apply

One. that, think don't of much I a for So Syneos tailwind creates that

helpful. That's Okay.

like Alistair no I'd call remarks. There Macdonald closing to for turn to over are any back the questions. further

battling in our India, sincere Brazil currently in our continue and look strong recovery and thanks Again, continues. growth circumstances, profitability all virus they COVID-XX Syneos in you. confident manage as through the We for the to positioning, forward from entire particularly do places. those team the to market to very Thank I other remain XXXX to and challenging

investment be in organization. attendance thank interest a much very and your So day, you. your for our great and Please good. Thank today you for and Have safe. be

this Ladies conclude and conference. gentlemen, does the

a have Everyone, disconnect. great day. now may You