Q3 2024 Fortrea Holdings Inc Earnings Call Transcript
Key Points
- Fortrea Holdings Inc (FTRE) achieved a book-to-bill ratio of 1.23 for the quarter, indicating strong demand and successful project acquisitions.
- The company has made significant progress in exiting from its former parent, with over 90% of servers and application systems migrated to an independent environment.
- Fortrea Holdings Inc (FTRE) has been recognized externally, being named a finalist in Fierce Healthcare's excellence and data-driven DEI award and the CRO of the Year category in the annual script awards.
- The company reported a solid pipeline of opportunities for the next two quarters, suggesting continued growth potential.
- Fortrea Holdings Inc (FTRE) has improved its Net Promoter Scores and customer satisfaction since becoming independent, reflecting enhanced customer relationships and service quality.
- Revenues declined by 5.4% year-on-year, driven by lower service fee and pass-through revenues.
- SG&A expenses increased by 27.6% year-over-year, primarily due to professional fees and costs related to exiting the transition services agreement.
- Adjusted EBITDA decreased by 5.9% year-over-year, impacted by lower service fee revenues and higher SG&A costs.
- The company faces ongoing challenges in fully exiting the transition services agreement, which is critical for future margin expansion.
- Fortrea Holdings Inc (FTRE) has not provided specific guidance for 2025, citing uncertainties related to the timing of TSA exits and the mix of new business awards.
Ladies and gentlemen, thank you for standing by. Welcome to Fortrea's third-quarter 2024 earnings conference call. (Operator instructions) Please be advised that today's conference is being recorded.
I would like now to turn the conference over to Hima Inguva, Head of Investor Relations and Corporate Development. Please go ahead.
Good morning. Thank you for joining Fortrea's third-quarter 2024 earnings conference call. I am Hima Inguva, Head of Investor Relations and Corporate Development at Fortrea. On the call with me today are our CEO, Tom Pike and CFO, Jim McConnell. The call is being webcasted, and the slides accompanying today's presentation have been posted to the Investor Relations page of our website fortrea.com.
During this call, we'll make certain forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. These statements are subject to significant risks and uncertainties that could cause actual results to differ
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