Medidata Solutions, Inc. (NASDAQ:MDSO) Q4 2018 Earnings Conference Call Transcript
Feb 12, 2019 • 08:00 am ET
Good day, ladies and gentlemen. Welcome to the Medidata Fourth 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.
Thank you, Shannon. Good morning, everyone. Thank you for joining Medidata's fourth quarter 2018 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 prepared remarks, and then we will open it up for your questions.
But first, I would like to remind you that elements of this discussion are forward-looking and based on our best view of the business as we see it today. I refer you to our detail disclaimer set forth in the press release and our filings with the SEC. Forward-looking statements are subject to risks that could cause actual results to differ from expectations. We disclaim any obligation to update or revise these.
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 U.S. GAAP to these measures.
And with that, I will turn the call over to Tarek.
Thank you, Betsy, and good morning. Thanks for joining us today. It's great to be with you all as we start which should be another exciting year for Medidata. Our solid execution in the fourth quarter capped a year of good revenue profitability and backlog growth, giving us confidence that 2019 will be another year of strong growth and profitability.
Notable highlights for 2018 includes our success in showing the validity and value of our data and analytic capabilities delivering significant enhancements to our platform, improving global sales execution in a new regionalized model that drove important customer wins from the Nordics to China, and our acquisition of SHYFT which brought us advanced capabilities allowing us to enter new markets in commercial analytics and RWE and adding over $1 billion of TAM.
We saw continued high levels of customer satisfaction and strong services growth. And we're recognized for our culture being named one of the best companies in the industry to work for. Clearly, we have a lot to be proud of.
For the full year, we grew revenue a healthy 17%. Subscription growth rates trended higher as the year went on supported by increasing attach and adoption rates. Overall our win rate hit all-time highs and customer retention was nearly 100%, all of which drove substantial backlog and great coverage for 2019.
While we made major investments in innovation and closed a strategically important acquisition, our margins were strong and we grew profitability. Focus and execution have made us the leading cloud platform in life sciences with nearly half the companies