Medidata Solutions, Inc. (NASDAQ:MDSO) Q2 2017 Earnings Conference Call Transcript

Jul 18, 2017 • 08:00 am ET

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Medidata Solutions, Inc. (NASDAQ:MDSO) Q2 2017 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good day, ladies and gentlemen, and welcome to your Medidata Q2 2017 Conference Call and Webcast. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to introduce your host for today's conference, Mr. Anthony D'Amico, Senior Director of Investor Relations. Sir, you may begin.

Executive
Anthony D''Amico

Thank you, Nova. Good morning, everyone, and thank you for joining Medidata's Second Quarter 2017 Conference Call. On the call today are Tarek Sherif, Chairman and Chief Executive Officer; Glen de Vries, President; Rouven Bergmann, Chief Financial Officer; and our Chief Operating Officer, Mike Capone. Tarek, Glen and Rouven will offer comments on our Q2 performance, followed by our outlook for 2017. Then we will 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.

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

Executive
Tarek Sherif

Thank you, Anthony, and good morning, everyone. Our Q2 and first half 2017 execution has been outstanding, financially and operationally. It sets us up well for the back half of the year and gives us confidence that we'll achieve our full year goals. The consistency and quality of the results we're delivering reflect the execution by the great team we've built and our ability to capitalize on the opportunities in an industry going through a major transformation.

Our unique clinical platform and services, built on cutting-edge technology, deep expertise and powerful analytics, are being adopted at a record pace. It's an exciting time in our industry and at Medidata. And today, you'll hear more about how we're driving innovation and change in our industry.

First, I want to highlight a few of our business results. In Q2, we continued our great momentum with total revenue of $137 million, up 20% year-over-year and 8% sequentially. We had another quarter of healthy profitability with GAAP net income of over $8 million, up 33% year-over-year, while EBITDAO was $32 million, up 27% year-over-year. Our results were driven by enterprise platform deals, solution sales and complementary professional services.

Our financial performance in the first half of the year has been really impressive. Total revenue is up 21%, GAAP net income is up 65%, and EBITDAO is up 30% year-over-year. It's fair to say that as we continue to broaden our platform and capabilities, we're creating a new revenue stream and profitability and creating value.

You've watched our strategy unfold over the past several years, and it's working. It's right for our customers, our partners and for our shareholders. Our momentum is a sign that we're executing the right business strategy in a dynamic and rapidly changing environment. Simply put, we partner with our customers, clinicians and patients to architect solutions that reinvent clinical research and,