ICON Public Limited Company (NASDAQ:ICLR) Q2 2020 Earnings Conference Call - Final Transcript

Jul 23, 2020 • 09:00 am ET


ICON Public Limited Company (NASDAQ:ICLR) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you all for standing by and welcome to today's Q2 2020 ICON Plc Earnings Conference Call. [Operator Instructions]. I must advise you all that this conference is being recorded today, Thursday, the 23rd of July, 2020.

And without any further delay, I would like to hand the conference over to your first speaker for the day, Mr. Jonathan Curtain. Sir, please go ahead.

Jonathan Curtain

Thanks Gino. Good day, ladies and gentlemen. Thank you for joining us on this call covering the quarter ended June 30th, 2020. Also on the call today, we have our CEO, Dr. Steve Cutler; and our CFO, Mr. Brendan Brennan. I would like to note that this call is webcast and that there are slides available to download on our website to accompany today's call.

Certain statements in today's call will be forward-looking statements. These statements are based on management's current expectations and information currently available, including current economic and industry conditions. Actual results may differ materially from those stated or implied by forward-looking statements, due to risks and uncertainties associated with the company's business, and listeners are cautioned that forward-looking statements are not guarantees of future performance. Forward-looking statements are only as of the date that they are made and we do not undertake any obligation to update publicly any forward-looking statements, either as a result of new information, future events or otherwise. More information about the risks and uncertainties relating to these forward-looking statements may be found in the SEC reports filed by the company.

This presentation includes selected non-GAAP financial measures. For a presentation of the most directly comparable GAAP financial measures, please refer to the press release statement headed condensed consolidated statements of operations U.S. GAAP unaudited. While non-GAAP financial measures are not superior to or a substitute for the comparable GAAP measures, we believe certain non-GAAP information is more useful to investors for historical comparison purposes. We'll be limiting the call today to one hour and would therefore ask participants to keep their questions to one each, with an opportunity to ask one related follow-up question.

I would now like to hand the call over to our CFO, Mr. Brendan Brennan.

Brendan Brennan

Thank you, Jonathan. In quarter two, we achieved gross business wins of $1.018 billion and recorded $117 million worth of cancellations. Consequently, net awards in the quarter were $910 million, resulting in a net book-to-bill of 1.47 times. With the addition of these new awards, our backlog grew to $9.1 billion. This represented a year-on-year increase of 11%.

Revenue in quarter two was $620.2 million, this represented a year-on-year decrease of 10.8% or 10.3% on a constant currency basis. Our top customer represented 12.1% of revenue for the quarter compared with 12.9% in quarter two 2019. Our top five customers represented 40.9% of quarter two revenue compared to 26.9% of last year's. Our top 10 represented 54.9% compared to 49.5% last year, while our top 25 represented 71.2% compared to 69.5% last year.

Gross margin for the quarter