IQVIA Holdings Inc. (NYSE:IQV) Q4 2018 Earnings Conference Call Transcript

Feb 14, 2019 • 09:00 am ET

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IQVIA Holdings Inc. (NYSE:IQV) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the IQVIA Fourth Quarter 2018 Earnings Conference Call. During the presentation all participants will be in a listen-only mode. As a reminder, this conference is being recorded Thursday, February 14, 2019.

I would now like to turn the conference over to Andrew Markwick, Vice President, Investor Relations. Please go ahead.

Executive
Andrew Markwick

Thank you, Alison. Good morning, everyone. Thank you for joining our fourth quarter 2018 earnings call. With me today are Ari Bousbib, Chairman and Chief Executive Officer; Michael McDonnell, Executive Vice President and Chief Financial Officer; Eric Sherbet, Executive Vice President and General Counsel; and Nick Childs, Senior Vice President, Financial Planning and Analysis.

Also here with us today is a new member of the Investor Relations team Jennifer Halchak, who just joined IQVIA Senior Director, Investor Relations. Jen has over 20 years of experience, working in the capital markets with extensive experience in IR. We're excited about Jen, joining the team and I know she is looking forward to working with all of you.

Today we'll be referencing a presentation that will be visible during this call for those of you on our webcast. This presentation will also be available following this call on the Events and Presentations section of our IQVIA Investor Relations website at ir.iqvia.com. Before we begin, I would like to caution listeners that certain information discussed by management during this call will include forward-looking statements.

Actual results could differ materially from those stated or implied by forward-looking statements, due to risks and uncertainties associated with the company's business, including the impact of the changes to the revenue recognition accounting standards, which are discussed in the company's filings with the Securities and Exchange Commission, including our annual report on Form 10-K and subsequent SEC filings.

In addition, we will discuss certain non-GAAP financial measures on this call, which should be considered a supplement to and not a substitute for financial measures prepared in accordance with GAAP. A reconciliation of these non-GAAP measures, the comparable GAAP measures is included in the press release and conference call presentation.

I would now like to turn the call over to our Chairman and CEO, Ari Bousbib.

Executive
Ari Bousbib

Thank you, Andrew, and good morning everyone. Thank you for joining our fourth quarter 2018 earnings call. We will review how we closed 2018 and provide financial guidance for 2019. I'm pleased to report that we had another strong quarter, capping a year of consistent solid operating performance at IQVIA.

Once again, we reported results at the high end or above our financial targets. Let's review the numbers. Fourth quarter revenue of $2.688 billion came in above our guidance range, resulting constant currency revenue growth of 8.1%. Relative to the midpoint of our guidance range, over half of the revenue beat was driven by an acceleration of our organic growth rates in both the R&D and technology and analytics segments, and a little less than a half was driven by the higher than expected pass-through