Q2 2024 ICON PLC Earnings Call Transcript
Key Points
- Icon PLC (ICLR) reported a 7% year-over-year growth in net business wins and a 10% increase in backlog, indicating strong demand for their services.
- The company saw a 5.3% increase in total revenue on a constant currency basis, demonstrating solid financial performance.
- Adjusted EBITDA grew by 9% year-over-year, resulting in an adjusted EBITDA margin of 21.2%, up 70 basis points.
- Icon PLC (ICLR) successfully completed a $2 billion bond offering, which was met with strong investor interest and will reduce interest expenses by approximately $110 million.
- The company increased its full-year adjusted earnings per share guidance to a range of $15 to $15.20, reflecting a 17.3% to 18.8% increase over the previous year.
- Delays in next-generation COVID vaccine trials are expected to impact full-year revenue for 2024, with COVID-related revenue now anticipated to be only 1.5% to 2% of total revenue.
- Foreign exchange headwinds due to the strengthening US dollar are expected to negatively impact total revenue by approximately 200 basis points.
- The biotech funding environment showed some attenuation in Q2, which could affect future business opportunities in this segment.
- The company experienced a slight increase in cancellations, recording $493 million worth of cancellations in the quarter.
- DSO (Days Sales Outstanding) increased to 51 days, reflecting challenges in managing customer credit terms and cash flow.
Good day, and thank you for joining us on this call covering the quarter ended June 30, 2024. Also on the call today, we have our CEO, Dr. Steve Cutler; our CFO, Brendan Brennan; and Senior Vice President of Corporate and Commercial Finance, Emer Lyons.
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 they are made, and we do not undertake any obligation to update publicly any forward-looking
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