Medidata Solutions, Inc. (NASDAQ:MDSO) Q2 2018 Earnings Conference Call Transcript

Jul 24, 2018 • 08:00 am ET

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Medidata Solutions, Inc. (NASDAQ:MDSO) Q2 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Medidata Second 2018 Earnings 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 be given at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Betsy Frank, Head of Investor Relations. Please go ahead, ma'am.

Executive
Betsy Frank

Thank you. Christy. Good morning, everyone, and thank you for joining us. And here today with are Chairman and Chief Executive Officer, Tarek Sherif, our President Glen De Vries, and our Chief Financial Officer, Rouven Bergmann. They will each deliver prepared remarks and then we will open it up for your questions.

(Forward-Looking Cautionary Statements)

And with that, I will turn the call over to Tarek.

Executive
Tarek Sherif

Thanks, Betsy, and good morning, and thanks for joining us today. Our quarterly and first half of the year results have been solid. We're well positioned to execute on our full-year plan, which represents healthy top line growth and good margin expansion. Midway through 2018, I feel good about what we've accomplished and encouraged by the momentum and demand I see building around our platform.

Last month, we successfully closed our acquisition of SHYFT Analytics, paving the way for life sciences companies to transform how they develop and launch new drugs and devices. The combination of Medidata and SHYFT opens up the commercial opportunity in life sciences to us greatly expanding our TAM. In fact, a great example of this is that since the acquisition, Novartis contracted with SHYFT to support the commercialization of a number of key therapies. In terms of how it's going overall, customers, shareholders, and employees all responded very positively, citing our expanded capabilities and our move into the commercial market.To-date, the integration is progressing smoothly and we're excited about the innovations to come. Meanwhile, we posted healthy top line growth with revenues up 16% year-to-date and solid margin expansion.

I'll let Rouven provide the details, but I want to note that we do expect an acceleration of revenue growth in the back half of the year, given our backlog growth of 18%. Our results are being driven by our innovation and the trust our customers are putting in us to power the digital transformation with our unique platform and expertise. In fact, no other company combines these capabilities and the industry is recognizing this, both IDC and Gartner clearly reference to our leadership in the recent publication.

Now, I'll give you an update on our business. We continue to sign significant multi-year deals, setting us up for long-term success. Our strategic position in the industry has never been stronger while our record backlog gives us good visibility into the future years. We continue to take market share with rate as our win rates have picked up. We also had several important wins within our emerging solutions. We added five new payments customers, including our second top