Medidata Solutions, Inc. (NASDAQ:MDSO) Q3 2018 Earnings Conference Call Transcript

Oct 18, 2018 • 08:00 am ET

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Medidata Solutions, Inc. (NASDAQ:MDSO) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, welcome to the Medidata Third Quarter 2018 Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later, there will be a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Betsy Frank, Head of Investor Relations. Ma'am, you may begin.

Executive
Betsy Frank

Thank you, Shannon. Good morning, everyone. Thank you for joining Medidata's third quarter earnings call. I'm here today with our Chairman and Chief Executive Officer Tarek Sherif; our President, Glen de Vries; and our Chief Financial Officer, Rouven Bergmann. They will each deliver remarks and then we will open it up for your questions.

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

Executive
Tarek Sherif

Thanks Betsy, and thank you all for joining us this morning. We had a strong third quarter both financially and operationally. I'm very proud of our team's execution in a quarter that is typically impacted by seasonal factors. Revenue grew 18% and EBITDA margin was over 25%. Our positive results are reflective of the health of our business. We're seeing good momentum positioning us well to achieve our full-year plan and laying the foundation for healthy growth in 2019.

Our results demonstrate the durability and resilience of our core franchise. To that point, we are gaining market share in our Rave business. In fact, we've seen an acceleration in revenue growth driven by higher win rates and we're seeing better attach of our integrated solutions. With over 1,100 customers currently running nearly 5,000 studies in a 130 countries, we are the largest cloud company in clinical development. We continue to build a solid foundation that will drive future growth. Our reach, it is truly global as evidenced by high-profile deals we signed with the largest sponsors in China and Korea this quarter. The continued strength and predictability of professional services demonstrate our deep domain knowledge and the value our customers see in working with us. Highlighting this fact is sustainability of this revenue even if some of our largest implementations have already gone live. Moreover, the fundamentals of our business and the industry overall are very positive as innovation, efficiency, and digital transformation are priorities for our customers .

Now let's go a little bit deeper on our results. Our core business is healthy and we are expanding our market share. We now have over 15,000 trials on Rave. This number has doubled over the past four years and growth is accelerating. This is in part due to many of our high-profile enterprise wins as sponsors ramp their study starts. It also reflects our success in addressing the needs of mid-sized and smaller customers. The data repository we're building as a result of