Medidata Solutions, Inc. (NASDAQ:MDSO) Q1 2016 Earnings Conference Call Transcript

Apr 21, 2016 • 08:00 am ET

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Medidata Solutions, Inc. (NASDAQ:MDSO) Q1 2016 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good day, ladies and gentlemen, and welcome to Medidata's Q1 2016 Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this call will be recorded.

I would now like to introduce your host for today's conference, Mr. Hulus Alpay, Senior Vice President and Head of Investor Relations. Please go ahead.

Executive
Hulus Alpay

Thank you, Catherine. Good morning, everyone, and thank you for joining Medidata's first quarter 2016 conference call. On the call today are Tarek Sherif, Chairman and CEO; Glen de Vries, President; Rouven Bergmann, CFO; and our COO, Mike Capone.

Tarek, Glen and Rouven will offer comments on our first quarter performance followed by insights into our business outlook for the balance of the year. Then we'll open the call to questions. The team will take as many questions as possible in the time allotted.

(Forward-Looking Cautionary Statements)

We will also discuss some non-GAAP financial measures that we think help to explain our underlying performance. Today's press release provides a reconciliation of US GAAP to these measures.

Now I'd like to turn the call over to Mr. Tarek Sherif, Chairman and Chief Executive Officer of Medidata. Please go ahead, Tarek.

Executive
Tarek Sherif

Thanks, Hulus. Good morning and thank you for joining us for today's call. Q1 was a quarter of solid execution and a good start to the new year. Revenue growth and profitability for Q1 came in ahead of our expectations putting us on track for the full-year. Our momentum in gaining market share continued as we landed another top 25 Pharma clients.

As you saw last night, we announced Bristol-Myers Squibb, our third large platform deal in six months, on the heels of Celgene and Boehringer Ingelheim which both closed in Q4. At the same time that we are taking share, we are expanding our addressable market via the recently announced Intelemage acquisition. I will come back to this later and Glen will give you some more color as well.

Our good execution is allowing us to continue to aggressively invest in our platform without compromising profitability, and those investments are paying off. We are delivering on product innovation faster, bringing new, game-changing technologies to market and we are delivering product enhancements on schedule and with high quality.

Our mHealth investments are already showing healthy traction in the marketplace, and our entry into payments segment is also going well. As Glen promised last quarter, we launched on schedule and are seeing strong interest.

From a financial perspective, our business is off to a good start in 2016. Revenue came in above our expectations at slightly over $104 million, with sequential growth of 5%, also above our expectations. Our EBITDA for the quarter was $20 million, reflecting an improvement in year-over-year margin. These numbers are the result of both good planning and strong execution across our organization and I thank our entire team for helping us start the year