Medpace Holdings, Inc. (MEDP) Bundle
A Brief History of Medpace Holdings, Inc.
Company Overview
Medpace Holdings, Inc. is a global provider of clinical research-based drug and medical device development services. The company partners with pharmaceutical, biotechnology, and medical device companies to conduct clinical trials across various therapeutic areas.
Financial Performance (2024)
As of September 30, 2024, Medpace reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue, net | $533.3 million | $492.5 million | $1,572.5 million | $1,387.4 million |
| Net income | $96.4 million | $70.6 million | $287.4 million | $204.5 million |
| Total direct costs | $364.3 million | $359.3 million | $1,094.5 million | $999.7 million |
| Operating expenses | $421.0 million | $407.6 million | $1,250.9 million | $1,137.9 million |
| Earnings per share (Diluted) | $3.01 | $2.22 | $8.96 | $6.42 |
Cash Flow Statement Highlights
For the nine months ended September 30, 2024, Medpace's cash flow metrics were as follows:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net cash provided by operating activities | $418.1 million | $277.0 million |
| Net cash used in investing activities | ($20.7 million) | ($26.6 million) |
| Net cash provided by financing activities | $14.6 million | ($184.2 million) |
| Increase in cash, cash equivalents, and restricted cash | $411.5 million | $66.9 million |
Operational Insights
Medpace's operational metrics as of September 30, 2024, reflect a robust growth trajectory:
- Net new business awards were $533.7 million for Q3 2024, compared to $611.5 million in Q3 2023.
- Backlog increased to $2,927.4 million, up from $2,689.5 million year-over-year.
- Advanced billings stood at $670.9 million as of September 30, 2024.
Shareholder Equity and Market Performance
As of September 30, 2024, Medpace's shareholder equity metrics are as follows:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $311 |
| Treasury Stock | ($12,235) |
| Additional Paid-In Capital | $836,903 |
| Accumulated Deficit | $65,636 |
| Total Shareholders’ Equity | $881,439 |
Conclusion of Financial Overview
Medpace Holdings, Inc. continues to demonstrate strong financial health and operational efficiency, positioning itself as a leader in the clinical research industry.
A Who Owns Medpace Holdings, Inc. (MEDP)
Ownership Structure
As of 2024, Medpace Holdings, Inc. (MEDP) has a diverse ownership structure that includes institutional investors, insiders, and retail shareholders. The breakdown of ownership is as follows:
| Ownership Type | Percentage of Shares Owned |
|---|---|
| Institutional Investors | 85.5% |
| Insider Ownership | 9.2% |
| Retail Investors | 5.3% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Medpace Holdings, Inc. as of the end of September 2024:
| Institution | Shares Owned | Percentage Ownership |
|---|---|---|
| The Vanguard Group, Inc. | 4,853,000 | 15.6% |
| BlackRock, Inc. | 4,200,000 | 13.5% |
| FMR LLC (Fidelity) | 2,850,000 | 9.2% |
| Invesco Ltd. | 2,000,000 | 6.5% |
| State Street Corporation | 1,800,000 | 5.8% |
Insider Ownership
The following individuals are notable insiders at Medpace Holdings, Inc. and their respective ownership stakes:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Augusto A. D. O. G. Almeida | CEO | 1,200,000 | 3.9% |
| Michael J. M. McGowan | CFO | 500,000 | 1.6% |
| Other Executives | Various | 900,000 | 2.9% |
Recent Insider Transactions
In 2024, several notable insider transactions have occurred:
| Transaction Date | Insider | Type of Transaction | Shares Traded |
|---|---|---|---|
| February 15, 2024 | Augusto A. D. O. G. Almeida | Sale | 100,000 |
| March 10, 2024 | Michael J. M. McGowan | Purchase | 50,000 |
| April 5, 2024 | Various | Sale | 200,000 |
Stock Performance Overview
As of September 30, 2024, the stock performance of Medpace Holdings, Inc. shows a significant increase compared to the previous year:
| Metric | 2024 | 2023 |
|---|---|---|
| Stock Price (Closing) | $91.50 | $75.00 |
| Market Capitalization | $2.84 billion | $2.25 billion |
| Annual Dividend | $0.00 | $0.00 |
| P/E Ratio | 19.2 | 18.5 |
Conclusion on Ownership and Shareholder Dynamics
The ownership of Medpace Holdings, Inc. is characterized by a strong presence of institutional investors, complemented by a notable insider ownership. The recent trends in stock performance reflect a growing confidence among investors regarding the company’s future prospects.
Medpace Holdings, Inc. (MEDP) Mission Statement
Overview of Mission Statement
Medpace Holdings, Inc. focuses on providing comprehensive clinical development services to the pharmaceutical and biotechnology industries. The company aims to deliver high-quality services with a commitment to efficiency, scientific excellence, and client satisfaction.
Core Values
- Commitment to Quality: Ensuring high standards in clinical research processes.
- Integrity: Upholding ethical practices in all business dealings.
- Collaboration: Fostering teamwork with clients and partners to achieve successful outcomes.
- Innovation: Embracing new technologies and approaches to enhance clinical trial efficiency.
- Client Focus: Prioritizing the needs and goals of clients throughout the clinical development process.
Financial Performance Indicators
As of September 30, 2024, Medpace Holdings reported a significant growth in financial metrics which reflects its commitment to excellence in service delivery.
| Financial Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (Year-over-Year) |
|---|---|---|---|
| Total Revenue | $533,317 | $492,499 | $40,818 (8.3%) |
| Net Income | $96,426 | $70,550 | $25,876 (36.7%) |
| Operating Expenses | $421,044 | $407,591 | $13,453 (3.3%) |
| Income from Operations | $112,273 | $84,908 | $27,365 (32.2%) |
| Net Cash Provided by Operating Activities | $418,149 | $276,979 | $141,170 (50.9%) |
Business Strategy Alignment
Medpace's mission is aligned with its strategic initiatives aimed at expanding its service offerings in the therapeutic areas of Metabolic, Oncology, and Cardiology. The company has been actively pursuing new business awards and increasing its backlog, which stood at approximately $2.9 billion as of September 30, 2024, reflecting an increase of $237.9 million or 8.8% compared to the previous year.
Recent Developments
In 2024, Medpace has continued to enhance its operational capacity and efficiency through investments in technology and personnel, which is evident from the increase in direct service costs attributed to higher personnel costs to support the growth in service activities. The total direct costs for the nine months ended September 30, 2024, were $1,094,477,000, compared to $999,742,000 for the same period in 2023, marking a 9.5% increase.
Commitment to Innovation
Medpace is dedicated to leveraging innovative technologies to streamline clinical trials, which is a core aspect of its mission. The company invests in advanced data analytics and digital solutions to improve trial design and execution, ensuring faster and more reliable results for clients.
Conclusion of Mission Statement
The mission statement of Medpace Holdings, Inc. reflects its dedication to providing superior clinical development services while maintaining a strong focus on quality, integrity, and client satisfaction. The robust financial performance and strategic initiatives underscore the company's commitment to achieving its mission in a competitive landscape.
How Medpace Holdings, Inc. (MEDP) Works
Company Overview
Medpace Holdings, Inc. (MEDP) operates as a clinical contract research organization (CRO) that provides comprehensive drug development services to the pharmaceutical and biotechnology industries. The company specializes in conducting clinical trials for various therapeutic areas, including metabolic, oncology, and cardiology.
Financial Performance
For the three months ended September 30, 2024, Medpace reported a revenue of $533.3 million, an increase of $40.8 million from $492.5 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $1,572.5 million, up from $1,387.4 million, reflecting a growth of $185.0 million.
| Period | Revenue (in millions) | Net Income (in millions) | Net Income per Share (Diluted) |
|---|---|---|---|
| Q3 2024 | $533.3 | $96.4 | $3.01 |
| Q3 2023 | $492.5 | $70.6 | $2.22 |
| 9M 2024 | $1,572.5 | $287.4 | $8.96 |
| 9M 2023 | $1,387.4 | $204.5 | $6.42 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $421.0 million, compared to $407.6 million for the same period in 2023. For the nine months ended September 30, 2024, total operating expenses were $1,250.9 million, an increase from $1,137.9 million in 2023.
Direct Costs
Total direct costs for Q3 2024 were $364.3 million, up from $359.3 million in Q3 2023. For the nine months ended September 30, 2024, direct costs reached $1,094.5 million, compared to $999.7 million in 2023, showing an increase of $94.7 million.
Cash Flow Analysis
Medpace's net cash provided by operating activities for the nine months ended September 30, 2024, was $418.1 million, significantly higher than $277.0 million for the same period in 2023. The operating cash flow adjustments included depreciation of $20.7 million and stock-based compensation of $19.6 million.
| Cash Flow Activity | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Net Cash from Operating Activities | $418.1 | $277.0 |
| Net Cash Used in Investing Activities | ($20.7) | ($26.6) |
| Net Cash Provided by Financing Activities | $14.6 | ($184.2) |
Shareholder Equity
As of September 30, 2024, Medpace reported total shareholders' equity of $881.4 million, a significant increase from $559.0 million at the end of 2023. The company's common stock outstanding increased to 31,081,601 shares from 30,752,292 shares in the prior year.
Market Position and Growth Strategy
Medpace continues to enhance its position in the CRO market by expanding its service offerings and focusing on therapeutic areas with high growth potential. The company reported a backlog of $1.2 billion as of September 30, 2024, indicating strong demand for its services.
Conclusion
Medpace Holdings, Inc. has demonstrated robust financial performance and operational efficiency through strategic growth in its service offerings and a focus on high-demand therapeutic areas.
How Medpace Holdings, Inc. (MEDP) Makes Money
Revenue Streams
Medpace Holdings, Inc. generates its revenue primarily through clinical research services provided to pharmaceutical, biotechnology, and medical device companies. The company offers a range of services including:
- Full-service clinical development
- Regulatory affairs
- Data management and analysis
- Project management
- Clinical monitoring
Financial Performance Overview
For the nine months ended September 30, 2024, Medpace reported total revenue of $1,572.5 million, an increase of $185 million or 13.3% compared to the same period in 2023, which had revenues of $1,387.4 million.
Quarterly Revenue Insights
In the third quarter of 2024, Medpace achieved revenue of $533.3 million, up from $492.5 million in the same quarter of 2023, reflecting a growth of 8.3%.
| Period | Revenue (in millions) | Year-Over-Year Growth (%) |
|---|---|---|
| Q3 2023 | $492.5 | - |
| Q3 2024 | $533.3 | 8.3% |
| 9 Months 2023 | $1,387.4 | - |
| 9 Months 2024 | $1,572.5 | 13.3% |
Cost Structure
Medpace incurs various costs associated with its operations, primarily categorized into direct service costs and operating expenses. For the nine months ended September 30, 2024:
- Total direct costs were $1,094.5 million, up from $999.7 million in 2023, marking an increase of 9.5%.
- Direct service costs (excluding depreciation and amortization) were $514.6 million, an increase of 8.6% compared to $473.9 million in 2023.
- Reimbursed out-of-pocket expenses rose to $579.9 million, a 10.3% increase from $525.8 million.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $1,250.9 million, reflecting a 9.9% increase from $1,137.9 million in 2023. Key components included:
- Selling, general, and administrative expenses increased to $134.8 million, up from $118.8 million.
- Depreciation expenses were $20.7 million, compared to $17.7 million in the prior year.
| Expense Category | 9 Months 2023 (in millions) | 9 Months 2024 (in millions) | Year-Over-Year Change (%) |
|---|---|---|---|
| Direct Costs | $999.7 | $1,094.5 | 9.5% |
| SG&A Expenses | $118.8 | $134.8 | 13.4% |
| Depreciation | $17.7 | $20.7 | 16.7% |
Profitability Metrics
Medpace's net income for the nine months ended September 30, 2024, stood at $287.4 million, a significant increase from $204.5 million in the same period of 2023, representing a growth of 40.5%.
The net income for Q3 2024 was $96.4 million, compared to $70.6 million in Q3 2023.
| Period | Net Income (in millions) | Year-Over-Year Change (%) |
|---|---|---|
| Q3 2023 | $70.6 | - |
| Q3 2024 | $96.4 | 36.6% |
| 9 Months 2023 | $204.5 | - |
| 9 Months 2024 | $287.4 | 40.5% |
Market Position and Growth Drivers
Medpace has positioned itself effectively within therapeutic areas such as Metabolic, Oncology, and Cardiology, contributing significantly to revenue growth. The company reported strong demand for its services, driven by an increase in clinical trials and partnerships with major pharmaceutical companies.
Cash Flow Analysis
For the nine months ended September 30, 2024, Medpace reported net cash provided by operating activities of $418.1 million, compared to $277 million in 2023. This increase reflects the company's robust income and effective management of working capital.
| Cash Flow Category | 9 Months 2023 (in millions) | 9 Months 2024 (in millions) |
|---|---|---|
| Operating Activities | $277.0 | $418.1 |
| Investing Activities | ($26.6) | ($20.7) |
| Financing Activities | ($184.2) | $14.6 |
Conclusion on Financial Health
Overall, Medpace Holdings, Inc. continues to demonstrate strong financial health, characterized by increasing revenues, improving profitability, and robust cash flow generation, supported by strategic growth in key therapeutic areas.
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Article updated on 8 Nov 2024
Resources:
- Medpace Holdings, Inc. (MEDP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Medpace Holdings, Inc. (MEDP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Medpace Holdings, Inc. (MEDP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.