IQVIA Holdings Inc. (NYSE:IQV) Q1 2019 Earnings Conference Call - Final Transcript

May 01, 2019 • 09:00 am ET


IQVIA Holdings Inc. (NYSE:IQV) Q1 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the IQVIA First Quarter 2019 Earnings Conference Call. During the presentation, all participants will be in a listen-only mode. As a reminder, this conference will be recorded, Wednesday, May 1, 2019.

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

Andrew Markwick

Good morning, everyone. Thank you for joining our first quarter 2019 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; Nick Childs, Senior Vice President, Financial Planning and Analysis; and Jen Halchak, Senior Director, Investor Relations.

Today, we will 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

Before we begin, I would like to caution listeners that certain information discussed by management during this conference 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 Company's business, 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 to 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.

Ari Bousbib

Thank you, Andrew, and good morning, everyone. Thank you for joining our first quarter 2019 earnings call. I'm pleased to report that the first quarter was another quarter of strong performance at IQVIA. We again reported results towards the high-end of our guidance range or above our guidance range for revenue, adjusted EBITDA, and adjusted diluted EPS.

Let's review the numbers. First quarter revenue of $2.684 billion, came in above our guidance range, resulting in constant currency revenue growth of 7.2%. On a segment perspective, Technology & Analytics Solutions revenue grew 12.9% at constant currency, of which about 7% was organic. Strong performance was driven by solid double-digit growth in our real-world and technology businesses.

R&D Solutions revenue grew 5.3% at constant currency, including over 300 basis points of headwind from pass-throughs. In the first quarter, we had a higher proportion of projects in the start-up phase, which typically have lower pass-throughs. Excluding pass-throughs, organic constant-currency growth was about 7.5%.

Our Contract Sales & Medical Solutions revenue was, as we had expected, down 7% at constant currency. We anticipate that this business will transition to growth in the second half of the year. First quarter adjusted EBITDA of $587 million,