IQVIA Holdings Inc., a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences industry, today reported financial results for the quarter ended September 30, 2021.
Third-Quarter 2021 Operating Results
Revenue for the third quarter of $3,391 million increased 21.7 percent on a reported basis and 21.1 percent at constant currency compared to the third quarter of 2020. Technology & Analytics Solutions (TAS) revenue of $1,337 million grew 10.8 percent on a reported basis and 9.9 percent at constant currency. Research & Development Solutions (R&DS) revenue of $1,853 million grew 32.4 percent on a reported basis and 31.9 percent at constant currency. Excluding the impact of pass throughs, R&DS revenue grew 24.7 percent year-over-year on a reported basis. Contract Sales & Medical Solutions (CSMS) revenue of $201 million grew 12.3 percent on a reported basis and 12.8 percent at constant currency.
R&DS contracted backlog, including reimbursed expenses, grew 12.7 percent year-over-year to $24.4 billion as of September 30, 2021. The company expects approximately $6.9 billion of this backlog to convert to revenue in the next twelve months. The third-quarter contracted net book-to-bill ratio was 1.39x including reimbursed expenses and 1.28x excluding reimbursed expenses. For the last twelve months ended September 30, 2021, the contracted net book-to-bill ratio was 1.38x including reimbursed expenses and 1.37x excluding reimbursed expenses.
“We delivered another quarter of strong organic revenue growth as well as robust earnings and free cash flow,” said Ari Bousbib, chairman and CEO of IQVIA. “We exceeded our financial targets across the board, with all segments delivering strong growth. As a result of this performance, we are once again raising our full-year 2021 financial guidance. Our strong book of business across the company sets us up well to sustain our momentum into next year and beyond.”
Third-quarter GAAP Net Income was $261 million, representing an increase of 158.4 percent compared to the third quarter of 2020, and GAAP Diluted Earnings per Share was $1.34, representing an increase of 157.7 percent compared to the third quarter of 2020. Adjusted Net Income was $423 million and Adjusted Diluted Earnings per Share was $2.17, representing an increase of 33.1 percent compared to the third quarter of 2020. Adjusted EBITDA was $728 million, up 20.5 percent compared to the third quarter of 2020.
Year-to-Date 2021 Operating Results
Revenue for the first nine months of 2021 was $10,238 million, up 27.0 percent on a reported basis and 25.0 percent at constant currency. TAS revenue was $4,038 million, representing growth of 17.6 percent reported and 14.9 percent at constant currency. R&DS revenue was $5,612 million, up 37.7 percent on a reported basis and 36.2 percent at constant currency. CSMS revenue was $588 million, up 6.5 percent reported and 5.1 percent at constant currency.
GAAP Net Income was $648 million and GAAP Diluted Earnings per Share was $3.32 for the first nine months of 2021. Adjusted Net Income was $1,264 million and Adjusted Diluted Earnings per Share was $6.48. Adjusted EBITDA for the first nine months of 2021 was $2,194 million.
Financial Position
As of September 30, 2021, cash and cash equivalents were $1,470 million and debt was $12,172 million, resulting in net debt of $10,702 million. IQVIA’s Net Leverage Ratio was 3.7x trailing twelve month Adjusted EBITDA. For the third quarter of 2021, Operating Cash Flow was $844 million and Free Cash Flow was $682 million. For the first nine months of 2021, Operating Cash Flow was $2,250 million and Free Cash Flow was $1,794 million.
