IQVIA Holdings Inc. (IQV) Bundle
A Brief History of IQVIA Holdings Inc.
IQVIA Holdings Inc., formed in 2016 through the merger of IMS Health and Quintiles, is a leading global provider of advanced analytics, technology solutions, and contract research services to the life sciences industry. As of 2024, IQVIA operates in over 100 countries and employs approximately 88,000 professionals.
Financial Performance Overview
For the third quarter of 2024, IQVIA reported total revenues of $3,896 million, a 4.3% increase from $3,736 million in the same quarter of 2023. The company’s net income for the third quarter reached $288 million, compared to $303 million in Q3 2023.
| Period | Total Revenues (in millions) | Net Income (in millions) |
|---|---|---|
| Q3 2024 | $3,896 | $288 |
| Q3 2023 | $3,736 | $303 |
| First 9 Months 2024 | $11,447 | $936 |
| First 9 Months 2023 | $11,116 | $889 |
Segment Performance
IQVIA's revenues are segmented into Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. For the third quarter of 2024, segment revenues were:
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | Segment Profit (Q3 2024, in millions) | Segment Profit (Q3 2023, in millions) |
|---|---|---|---|---|
| Technology & Analytics Solutions | $1,554 | $1,431 | $405 | $355 |
| Research & Development Solutions | $2,162 | $2,122 | $498 | $495 |
| Contract Sales & Medical Solutions | $180 | $183 | $12 | $12 |
Operating Expenses
In the third quarter of 2024, IQVIA's operating expenses included:
- Cost of revenues, exclusive of depreciation and amortization: $2,518 million
- Selling, general and administrative expenses: $522 million
- Depreciation and amortization: $278 million
Cash Flow and Liquidity
For the nine months ended September 30, 2024, IQVIA generated net cash provided by operating activities of $1,831 million, a significant increase from $1,402 million in the same period of 2023. Cash and cash equivalents at the end of Q3 2024 stood at $1,572 million.
Debt and Equity
As of September 30, 2024, IQVIA had total indebtedness of $13,578 million and a remaining stock repurchase authorization under its equity repurchase program of $11,725 million. The company repurchased 0.8 million shares for $200 million during the first nine months of 2024.
The company’s stockholders’ equity as of September 30, 2024, was $6,967 million, up from $6,112 million at the end of 2023.
Market Position and Future Outlook
IQVIA continues to strengthen its market position through innovative technology solutions and strategic acquisitions. The company anticipates revenue growth driven by its diverse service offerings and increased demand for clinical research services.
A Who Owns IQVIA Holdings Inc. (IQV)
Major Shareholders
As of 2024, IQVIA Holdings Inc. (IQV) has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned (millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.52% | 22.03 |
| BlackRock, Inc. | 8.20% | 21.18 |
| State Street Corporation | 4.99% | 12.91 |
| FMR LLC (Fidelity) | 4.86% | 12.63 |
| T. Rowe Price Associates, Inc. | 4.51% | 11.75 |
| Invesco Ltd. | 3.67% | 9.58 |
| Other Institutional Investors | 26.98% | 70.00 |
| Individual Shareholders | 29.27% | 76.00 |
Institutional Ownership
IQVIA's institutional ownership remains robust, with a significant portion of shares held by large investment firms. As of September 30, 2024, the total institutional ownership stood at approximately 66.1% of the total shares outstanding.
Recent Changes in Ownership
Throughout 2024, there have been notable movements in IQVIA's share ownership. For instance, during the first three quarters of the year, the company repurchased approximately 0.8 million shares, valued at around $200 million. This activity is part of a broader strategy to enhance shareholder value through share buybacks, with a remaining authorization of $2.163 billion under its repurchase program.
Executive and Insider Ownership
Insider ownership is also an important aspect of IQV's ownership structure. As of September 30, 2024, executive officers and directors collectively owned approximately 1.5% of the company's shares, amounting to roughly 3.9 million shares. This insider ownership aligns the interests of management with those of shareholders.
Market Performance and Shareholder Returns
IQVIA's stock performance has shown resilience, reflecting strong operational results. For the nine months ended September 30, 2024, IQVIA reported revenues of $11,447 million, representing a year-over-year increase of 3.0%. The company’s net income for the same period was $936 million, reflecting solid profitability. The stock has also seen fluctuations in response to market conditions, with a current share price around $243.77 as of late September 2024.
IQVIA Holdings Inc. (IQV) Mission Statement
Company Overview
IQVIA Holdings Inc. (NYSE: IQV) is a global provider of advanced analytics, technology solutions, and contract research services to the life sciences industry. As of September 30, 2024, the company operates in over 100 countries with approximately 88,000 employees.
Mission Statement
IQVIA's mission is to use data, technology, and advanced analytics to help organizations in the healthcare and life sciences sectors improve patient outcomes. The company focuses on providing integrated solutions that enable clients to make better decisions, enhance operational efficiencies, and drive innovation.
Core Values
- Integrity: Upholding the highest ethical standards in all operations.
- Collaboration: Working together across various sectors to achieve common goals.
- Innovation: Continuously improving and innovating to meet the changing needs of clients.
- Excellence: Striving for the highest quality in service delivery and client satisfaction.
Financial Performance
As of the third quarter of 2024, IQVIA reported the following financial metrics:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Q3 2024 Profit (in millions) | Q3 2023 Profit (in millions) |
|---|---|---|---|---|
| Technology & Analytics Solutions | $1,554 | $1,431 | $405 | $355 |
| Research & Development Solutions | $2,162 | $2,122 | $498 | $495 |
| Contract Sales & Medical Solutions | $180 | $183 | $12 | $12 |
| Total | $3,896 | $3,736 | $915 | $862 |
Revenue Growth
For the first nine months of 2024, IQVIA's revenues increased by $331 million, or 3.0%, compared to the same period in 2023. This growth was driven by improvements in:
- Technology & Analytics Solutions: $188 million increase
- Research & Development Solutions: $189 million increase
- Contract Sales & Medical Solutions: $16 million increase
Cost Structure
Cost of revenues for the three months ended September 30, 2024, was $2,518 million, representing 64.6% of total revenues. This compares to $2,426 million in Q3 2023, which was 64.9% of total revenues.
Net Income
IQVIA's net income for the third quarter of 2024 was $285 million, down from $303 million in Q3 2023.
Stock Performance
As of September 30, 2024, IQVIA had a remaining authorization to repurchase up to $2,163 million of its common stock under its equity repurchase program. The company has repurchased a total of $9,562 million of its securities under this program since its inception.
Conclusion
The mission of IQVIA Holdings Inc. centers around leveraging technology and data to enhance healthcare outcomes, which is reflected in its continuous financial growth and commitment to innovation.
How IQVIA Holdings Inc. (IQV) Works
Company Overview
IQVIA Holdings Inc. operates as a leading global provider of advanced analytics, technology solutions, and contract research services to the life sciences industry. The company combines data science, technology, and domain expertise to provide insights and support for clinical trials and commercial strategies.
Financial Performance
As of the third quarter of 2024, IQVIA reported consolidated revenues of $3,896 million, an increase of $160 million, or 4.3%, compared to the same period in 2023. For the first nine months of 2024, revenues totaled $11,447 million, reflecting a $331 million increase, or 3.0%, year-over-year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues (in millions) | $3,896 | $3,736 | $11,447 | $11,116 |
| Net Income (in millions) | $285 | $303 | $936 | $889 |
| Segment Profit (in millions) | $550 | $481 | $1,576 | $1,476 |
Segment Breakdown
IQVIA operates through three primary segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions.
| Segment | Q3 2024 Revenues (in millions) | Q3 2023 Revenues (in millions) | 9M 2024 Revenues (in millions) | 9M 2023 Revenues (in millions) |
|---|---|---|---|---|
| Technology & Analytics Solutions | $1,554 | $1,431 | $4,502 | $4,331 |
| Research & Development Solutions | $2,162 | $2,122 | $6,404 | $6,244 |
| Contract Sales & Medical Solutions | $180 | $183 | $541 | $541 |
Cost Structure
The cost of revenues, excluding depreciation and amortization, was $2,518 million for Q3 2024, up from $2,426 million in Q3 2023. For the first nine months, the cost was $7,450 million compared to $7,267 million in 2023.
| Metric | Q3 2024 Cost (in millions) | Q3 2023 Cost (in millions) | 9M 2024 Cost (in millions) | 9M 2023 Cost (in millions) |
|---|---|---|---|---|
| Cost of Revenues | $2,518 | $2,426 | $7,450 | $7,267 |
| SG&A Expenses | $522 | $502 | $1,539 | $1,497 |
| Depreciation and Amortization | $278 | $297 | $811 | $809 |
Backlog and Future Revenue
As of September 30, 2024, IQVIA's contracted backlog in the Research & Development Solutions segment increased to $31.1 billion from $29.7 billion at the end of 2023. Approximately $7.8 billion of this backlog is expected to convert to revenue within the next twelve months.
Debt and Equity Position
As of September 30, 2024, IQVIA reported total indebtedness of $13,578 million. The company's equity repurchase program had an authorization of $11,725 million, with $2,163 million remaining for future repurchases.
| Debt Metric | Amount (in millions) |
|---|---|
| Total Indebtedness | $13,578 |
| Remaining Repurchase Authorization | $2,163 |
Market Dynamics
Approximately 30% of IQVIA's revenues are derived from non-U.S. dollar currencies, making the company sensitive to foreign currency fluctuations. The company continues to monitor the effects of these fluctuations on its financial performance.
Recent Developments
In 2024, IQVIA's effective income tax rate was reported at 18.6% for Q3, influenced by changes in geographical earnings mix and tax credit carryforwards. Additionally, the company has been adapting its operations in response to evolving market conditions and integrating acquisitions.
How IQVIA Holdings Inc. (IQV) Makes Money
Overview of Revenue Segments
IQVIA operates through three primary segments, each contributing to its overall revenue:
- Technology & Analytics Solutions
- Research & Development Solutions
- Contract Sales & Medical Solutions
Technology & Analytics Solutions
For the first nine months of 2024, Technology & Analytics Solutions generated revenues of $4,502 million, an increase of $171 million or 3.9% compared to the same period in 2023. The segment profit for this period was $1,101 million.
In the third quarter of 2024 alone, revenues reached $1,554 million, reflecting an increase of $123 million or 8.6% year-over-year. The segment's cost of revenues was $922 million, resulting in a segment profit of $405 million.
| Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $1,554 million | $1,431 million | $123 million | 8.6% |
| Cost of Revenues | $922 million | $859 million | $63 million | 7.3% |
| Segment Profit | $405 million | $355 million | $50 million | 14.1% |
Research & Development Solutions
Research & Development Solutions reported revenues of $6,404 million for the first nine months of 2024, an increase of $160 million or 2.6% compared to the same period in 2023. The segment profit was $1,470 million.
In Q3 2024, revenues were $2,162 million, showing a modest increase of $40 million or 1.9% year-over-year. The cost of revenues was $1,442 million, leading to a segment profit of $498 million.
| Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $2,162 million | $2,122 million | $40 million | 1.9% |
| Cost of Revenues | $1,442 million | $1,410 million | $32 million | 2.3% |
| Segment Profit | $498 million | $495 million | $3 million | 0.6% |
Contract Sales & Medical Solutions
This segment generated revenues of $541 million for the first nine months of 2024, consistent with the same period in 2023. The segment profit was $34 million.
For Q3 2024, revenues were $180 million, a slight decrease of $3 million or 1.6% year-over-year. The cost of revenues was $154 million, yielding a segment profit of $12 million.
| Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenues | $180 million | $183 million | ($3 million) | (1.6%) |
| Cost of Revenues | $154 million | $157 million | ($3 million) | (1.9%) |
| Segment Profit | $12 million | $12 million | $0 million | 0.0% |
Consolidated Financial Performance
Overall, IQVIA's total revenues for the first nine months of 2024 were $11,447 million, an increase of $331 million or 3.0% compared to the same period in 2023. The consolidated profit for this period was $1,576 million.
In Q3 2024, total revenues were $3,896 million, reflecting an increase of $160 million or 4.3% year-over-year. The total cost of revenues for this quarter was $2,518 million, with a consolidated profit of $550 million.
| Metrics | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $3,896 million | $3,736 million | $160 million | 4.3% |
| Total Cost of Revenues | $2,518 million | $2,426 million | $92 million | 3.8% |
| Consolidated Profit | $550 million | $481 million | $69 million | 14.4% |
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Article updated on 8 Nov 2024
Resources:
- IQVIA Holdings Inc. (IQV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of IQVIA Holdings Inc. (IQV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View IQVIA Holdings Inc. (IQV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.