IQVIA HOLDINGS INC

Previous wording

IQVIA is a leading global provider of advanced analytics, technology solutions and clinical research services to the life sciences industry. IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources, extensive domain expertise and network of partners. IQVIA Connected Intelligence delivers actionable insights and powerful solutions with speed and agility — enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients. With approximately 87,000 employees, we conduct operations in more than 100 countries.

Current wording

IQVIA is a leading global provider of advanced analytics, technology solutions and clinical research services to the life sciences industry. IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources, extensive domain expertise and network of partners. IQVIA Connected Intelligence delivers actionable insights and powerful solutions with speed and agility — enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients. With approximately 88,000 employees, we conduct operations in more than 100 countries.

Previous wording

In the first three months of 2024, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies. Because a large portion of our revenues and expenses are denominated in foreign currencies and our financial statements are reported in United States dollars, changes in foreign currency exchange rates can significantly affect our results of operations. The revenues and expenses of our foreign operations are generally denominated in local currencies and translated into United States dollars for financial reporting purposes. Accordingly, exchange rate fluctuations will affect the translation of foreign results into United States dollars for purposes of reporting our condensed consolidated results. As a result, we believe that reporting results of operations that exclude the effects of foreign currency rate fluctuations on certain financial results can facilitate analysis of period to period comparisons. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results. As such, the differences noted below between reported results of operations and constant currency information is wholly attributable to the effects of foreign currency rate fluctuations.

Current wording

In the first six months of 2024, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies. Because a large portion of our revenues and expenses are denominated in foreign currencies and our financial statements are reported in United States dollars, changes in foreign currency exchange rates can significantly affect our results of operations. The revenues and expenses of our foreign operations are generally denominated in local currencies and translated into United States dollars for financial reporting purposes. Accordingly, exchange rate fluctuations will affect the translation of foreign results into United States dollars for purposes of reporting our condensed consolidated results. As a result, we believe that reporting results of operations that exclude the effects of foreign currency rate fluctuations on certain financial results can facilitate analysis of period to period comparisons. This constant currency information assumes the same foreign currency exchange rates that were in effect for the comparable prior-year period were used in translation of the current period results. As such, the differences noted below between reported results of operations and constant currency information is wholly attributable to the effects of foreign currency rate fluctuations.

Previous wording

For the first quarter of 2024, our revenues increased $85 million, or 2.3%, as compared to the same period in 2023. This increase was comprised of constant currency revenue growth of approximately $105 million, or 2.9%, reflecting a $14 million increase in Technology & Analytics Solutions, a $78 million increase in Research & Development Solutions, and a $13 million increase in Contract Sales & Medical Solutions.

Current wording

For the second quarter of 2024, our revenues increased $86 million, or 2.3%, as compared to the same period in 2023. This increase was comprised of constant currency revenue growth of approximately $130 million, or 3.5%, reflecting a $56 million increase in Technology & Analytics Solutions, a $69 million increase in Research & Development Solutions, and a $5 million increase in Contract Sales & Medical Solutions.

Previous wording

The $5 million decrease in selling, general and administrative expenses for the three months ended March 31, 2024 as compared to the same period in 2023 included no constant currency change at the consolidated level, reflecting a $6 million increase in Technology & Analytics Solutions, a $12 million increase in Research & Development Solutions, and a $1 million increase in Contract Sales & Medical Solutions, offset by a $19 million decrease in general corporate and unallocated expenses.

Current wording

The $27 million increase in selling, general and administrative expenses for the three months ended June 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $45 million, or 9.3%, reflecting a $23 million increase in Technology & Analytics Solutions, a $16 million increase in Research & Development Solutions, a $1 million increase in Contract Sales & Medical Solutions, and a $5 million increase in general corporate and unallocated expenses.

Previous wording

The $11 million increase in depreciation and amortization for the three months ended March 31, 2024 compared to the same period in 2023 was primarily the result of an increase in amortization of capitalized software and of intangible assets from acquisitions occurring in 2023 and 2024.

Current wording

The $10 million and $21 million increase in depreciation and amortization for the three and six months ended June 30, 2024 compared to the same periods in 2023 was primarily the result of an increase in amortization of capitalized software and of intangible assets from acquisitions occurring in 2023 and 2024.

Previous wording

Interest income includes interest received primarily from bank balances and investments. The increase for the three months ended March 31, 2024 as compared to the same period in 2023 is primarily a result of higher deposit rates.

Current wording

Interest income includes interest received primarily from bank balances and investments. The increase for the three and six months ended June 30, 2024 as compared to the same period in 2023 is primarily a result of higher deposit rates.

Previous wording

Interest expense during the three months ended March 31, 2024 increased compared to the same period in 2023 primarily due to higher base rate interest costs across the floating rate debt portfolio as well as from an increase in our net debt.

Current wording

Interest expense during the three months ended June 30, 2024 decreased compared to the same period in 2023 primarily due to lower debt balances. For the six months ended June 30, 2024, interest expense increased as a result of higher base rate interest costs across the floating rate debt portfolio.

Previous wording

Other expense (income), net for the three months ended March 31, 2024 increased compared to the same period in 2023 primarily due to more foreign currency loss on transactions.

Current wording

Other income, net for the three months ended June 30, 2024 increased compared to the same period in 2023 primarily due to revaluations of contingent consideration arrangements and to a lesser extent from foreign currency gain on transactions.

Previous wording

Our effective income tax rate was 14.4% and 19.6% in the first quarter of 2024 and 2023, respectively. Our effective income tax rate in the first quarter of 2024 was favorably impacted compared to the first quarter of 2023 due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions. Our effective income tax rate in the first quarter of 2024 and 2023 was also favorably impacted by $9 million and $8 million, respectively, as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

Current wording

Our effective income tax rate was 17.2% and 21.6% in the second quarter of 2024 and 2023, and 16.0% and 20.6% in the first six months of 2024 and 2023, respectively. Our effective income tax rate in the second quarter and in the first six months of 2024 was favorably impacted compared to the second quarter and first six months of 2023 due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions. Our effective income tax rate in the second quarter and in the first six months of 2024 and 2023 was also favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards. For the second quarter of 2024 and 2023 this impact was $3 million and $2 million, respectively, and for the first six months of 2024 and 2023 this impact was $12 million and $10 million, respectively.

Previous wording

Numerous foreign jurisdictions have agreed to implement the OECD's Pillar 2 global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2024. We have evaluated the effect of this for the first quarter of 2024 and do not expect any material impacts for 2024. We will continue to monitor as additional jurisdictions enact Pillar 2 legislation.

Current wording

Numerous foreign jurisdictions have agreed to implement the OECD's Pillar 2 global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2024. We have evaluated the effect of this for the second quarter of 2024 and do not expect any material impacts for 2024. We will continue to monitor as additional jurisdictions enact Pillar 2 legislation.

Previous wording

Research & Development Solutions’ revenues were $2,095 million for the first quarter of 2024, an increase of $69 million, or 3.4%, over the same period in 2023. This increase was comprised of constant currency revenue growth of approximately $78 million, or 3.8%, reflecting revenue growth primarily in the Europe and Africa and Asia-Pacific regions.

Current wording

Technology & Analytics Solutions’ revenues were $1,495 million for the second quarter of 2024, an increase of $39 million, or 2.7%, over the same period in 2023. This increase was comprised of constant currency revenue growth of approximately $56 million, or 3.8%, reflecting revenue growth primarily in the Europe and Africa region and to a lesser extent in the Americas region.

Previous wording

The constant currency revenue growth for the three months ended March 31, 2024 was driven by an increase in information and technology services. The constant currency revenue growth was impacted by a decrease in COVID-19 related work.

Current wording

The constant currency revenue growth for the three and six months ended June 30, 2024 was primarily driven by an increase in information and technology services and to a lesser extent by real world services. The constant currency revenue growth for the six months ended June 30, 2024 was impacted by a decrease in COVID-19 related work.

Previous wording

The constant currency increase for the three months ended March 31, 2024 was mainly related to an increase in costs of acquiring and processing data to support revenue growth.

Current wording

The constant currency increase for the three and six months ended June 30, 2024 was mainly related to an increase in costs of acquiring and processing data to support revenue growth.

Previous wording

Research & Development Solutions’ contracted backlog increased from $29.7 billion as of December 31, 2023 to $30.1 billion as of March 31, 2024, and we expect approximately $7.7 billion of this backlog to convert to revenues in the next twelve months.

Current wording

Research & Development Solutions’ contracted backlog increased from $29.7 billion as of December 31, 2023 to $30.6 billion as of June 30, 2024, and we expect approximately $7.8 billion of this backlog to convert to revenues in the next twelve months.

Previous wording

The constant currency revenue growth for the three months ended March 31, 2024 was primarily the result of volume-related increases in clinical services and to a lesser extent from volume-related increases in lab testing. The constant currency revenue growth was impacted by a decrease in COVID-19 related work.

Current wording

The constant currency revenue growth for the three and six months ended June 30, 2024 was primarily the result of volume-related increases in clinical services and to a lesser extent from volume-related increases in lab testing. The constant currency revenue growth was impacted by a decrease in COVID-19 related work.

Previous wording

Technology & Analytics Solutions’ revenues were $1,453 million for the first quarter of 2024, an increase of $9 million, or 0.6%, over the same period in 2023. This increase was comprised of constant currency revenue growth of approximately $14 million, or 1.0%, reflecting revenue growth primarily in the Americas region.

Current wording

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $14 million, or 1.0%, in the second quarter of 2024 over the same period in 2023. This increase included a constant currency increase of approximately $110 million, or 7.8%.

Previous wording

The constant currency increase for the three months ended March 31, 2024 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services and lab testing.

Current wording

The constant currency increase for the three and six months ended June 30, 2024 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services and lab testing.

Previous wording

Research & Development Solutions’ selling, general and administrative expenses increased $9 million, or 4.2%, in the first quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $12 million, or 5.7%.

Current wording

Research & Development Solutions’ selling, general and administrative expenses increased $12 million, or 5.7%, in the second quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $16 million, or 7.6%.

Previous wording

Contract Sales & Medical Solutions’ revenues were $189 million for the first quarter of 2024, an increase of $7 million, or 3.8% over the same period in 2023. This increase was comprised of constant currency revenue growth of approximately $13 million, or 7.1%, reflecting revenue growth in the Europe and Africa and Asia-Pacific regions.

Current wording

Contract Sales & Medical Solutions’ revenues were $172 million for the second quarter of 2024, a decrease of $4 million, or 2.3%, over the same period in 2023. This decrease was comprised of constant currency revenue growth of approximately $5 million, or 2.8%, reflecting similar revenue growth in the Europe and Africa and Asia-Pacific regions.

Previous wording

Technology & Analytics Solutions’ selling, general and administrative expenses increased $4 million, or 1.8%, in the first quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $6 million, or 2.7%.

Current wording

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $4 million, or 1.3%, in the first six months of 2024 as compared to the same period in 2023. This increase included a constant currency increase of approximately $17 million, or 5.6%.

Previous wording

The constant currency increase for the three months ended March 31, 2024 was primarily related to an increase in costs associated with supporting revenue growth.

Current wording

The constant currency increase for the three and six months ended June 30, 2024 was primarily related to an increase in costs associated with supporting revenue growth.

Previous wording

Contract Sales & Medical Solutions’ selling, general and administrative expenses increased $1 million, or 6.7%, in the first quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $1 million, or 6.7%.

Current wording

Contract Sales & Medical Solutions’ selling, general and administrative expenses increased $1 million, or 7.1%, in the second quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $1 million, or 7.1%.

Previous wording

We had a cash balance of $1,444 million as of March 31, 2024 ($567 million of which was in the United States), an increase from $1,376 million as of December 31, 2023.

Current wording

We had a cash balance of $1,545 million as of June 30, 2024 ($663 million of which was in the United States), an increase from $1,376 million as of December 31, 2023.

Previous wording

As of March 31, 2024, the total stock repurchase authorization under our equity repurchase program (the “Repurchase Program”) was $11,725 million. The Repurchase Program does not obligate us to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time. During the three months ended March 31, 2024, we did not repurchase any shares of our common stock under the Repurchase Program. As of March 31, 2024, we had remaining authorization to repurchase up to $2,363 million of our common stock under the Repurchase Program. In addition, from time to time, we have repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.

Current wording

As of June 30, 2024, the total stock repurchase authorization under our equity repurchase program (the “Repurchase Program”) was $11,725 million. The Repurchase Program does not obligate us to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time. During the six months ended June 30, 2024, we did not repurchase any shares of our common stock under the Repurchase Program. As of June 30, 2024, we had remaining authorization to repurchase up to $2,363 million of our common stock under the Repurchase Program. In addition, from time to time, we have repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.

Previous wording

As of March 31, 2024, we had $13,611 million of total indebtedness, excluding $1,895 million of additional available borrowings under our revolving credit facility. Our long-term debt arrangements contain customary restrictive covenants and, as of March 31, 2024, we believe we were in compliance with our restrictive covenants in all material respects.

Current wording

As of June 30, 2024, we had $13,328 million of total indebtedness, excluding $1,995 million of additional available borrowings under our revolving credit facility. Our long-term debt arrangements contain customary restrictive covenants and, as of June 30, 2024, we believe we were in compliance with our restrictive covenants in all material respects.

Previous wording

As of March 31, 2024, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,743 million, which consisted of $4,848 million principal amounts of debt outstanding, and $1,895 million of available borrowing capacity on the revolving credit facility and standby letters of credit. See Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding our credit arrangements.

Current wording

As of June 30, 2024, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,695 million, which consisted of $4,700 million principal amounts of debt outstanding, and $1,995 million of available borrowing capacity on the revolving credit facility and standby letters of credit. See Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding our credit arrangements.

Previous wording

As of March 31, 2024, no additional amounts of revolving loan commitments were available under the receivables financing facility.

Current wording

As of June 30, 2024, $110 million of additional amounts of revolving loan commitments were available under the receivables financing facility.

Previous wording

Three months ended March 31, 2024 and 2023

Current wording

Six months ended June 30, 2024 and 2023

Previous wording

Cash provided by operating activities increased $105 million during the first three months of 2024 as compared to the same period in 2023. The increase was due to an increase in cash from unearned income ($116 million) and accounts receivable and unbilled services ($56 million), offset by a decrease in cash from cash-related net income ($54 million) and other operating assets and liabilities ($13 million).

Current wording

Cash provided by operating activities increased $291 million during the first six months of 2024 as compared to the same period in 2023. The increase was due to an increase in cash from accounts receivable and unbilled services ($325 million) and from cash-related net income ($58 million), offset by a decrease in other operating assets and liabilities ($88 million) and unearned income ($4 million).

Previous wording

Cash used in investing activities increased $92 million during the first three months of 2024 as compared to the same period in 2023, primarily driven by more cash used for acquisitions of businesses ($124 million) and investments in unconsolidated affiliates, net ($17 million) and less cash from other ($7 million), offset by less cash used for investments in debt and equity securities ($34 million), acquisitions of property, equipment and software ($19 million) and purchases of marketable securities, net ($3 million).

Current wording

Cash used in investing activities decreased $283 million during the first six months of 2024 as compared to the same period in 2023, primarily driven by less cash used for acquisitions of businesses ($223 million), acquisitions of property, equipment and software ($36 million), investments in debt and equity securities ($34 million), purchases of marketable securities, net ($4 million) and cash received from sale of property, equipment and software ($25 million), offset by more cash used in investments in unconsolidated affiliates, net ($36 million) and less cash from other ($3 million).

Previous wording

Cash used in financing activities increased $193 million during the first three months of 2024 as compared to the same period in 2023, primarily due to less cash from revolving credit facilities, net of repayments ($375 million), more cash payments on debt and principal payments on finance leases ($4 million) and cash payments related to employee stock incentive plans ($2 million), offset by less cash used to repurchase common stock ($129 million) and less cash payments for contingent consideration and deferred purchase price accruals ($59 million).

Current wording

Cash used in financing activities increased $548 million during the first six months of 2024 as compared to the same period in 2023, primarily due to less cash from debt issuance, net ($1,232 million), more cash payments on debt and principal payments on finance leases ($9 million) and cash payments related to employee stock incentive plans ($2 million), offset by less cash used for repurchase of common stock ($619 million), payments for contingent consideration and deferred purchase price accruals ($61 million) and for revolving credit facilities, net of repayments ($15 million).