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Revenue: $533.3 million for Q3 2024, an 8.3% year-over-year increase.
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Net New Business Awards: $533.7 million, a 12.7% decrease from the prior year.
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Ending Backlog: Approximately $2.9 billion as of September 30, 2024, an 8.8% increase from the prior year.
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Backlog Conversion: 18.2% of beginning backlog in Q3 2024.
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EVENTS: $118.8 million for Q3 2024, a 31.7% increase from Q3 2023.
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EBITDA Margin: 22.3% for Q3 2024, compared to 18.3% in the prior year period.
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Net Income: $96.4 million for Q3 2024, a 36.7% increase from the prior year period.
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Net Income Per Diluted Share: $3.01 for Q3 2024, compared to $2.22 in the prior year.
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Cash Flow from Operating Activities: $149.1 million in Q3 2024.
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Cash Balance: $656.9 million as of June 30, 2024.
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2024 Revenue Guidance: $2.09 billion to $2.13 billion, representing growth of 10.8% to 12.9% over 2023.
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2024 EBITDA Guidance: $450 million to $470 million, representing growth of 24.1% to 29.7% over 2023.
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2024 Net Income Guidance: $376 million to $388 million.
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2024 Earnings Per Diluted Share Guidance: $11.71 to $12.09.
Release Date: October 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Revenue for the third quarter of 2024 was $533.3 million, representing a year-over-year increase of 8.3%.
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EBITDA for the third quarter increased by 31.7% compared to the same period in 2023, reaching $118.8 million.
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Net income for the third quarter rose by 36.7% year-over-year, driven by interest income and partially offset by a higher effective tax rate.
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Ending backlog as of September 30, 2024, was approximately $2.9 billion, an increase of 8.8% from the prior year.
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The company expects to convert approximately $1.62 billion of backlog into revenue over the next 12 months, indicating strong future revenue potential.
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Backlog cancellations in Q3 were above the usual range, marking three consecutive quarters of elevated cancellations.
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Net new business awards decreased by 12.7% from the prior year, resulting in a net book-to-bill ratio of 1.0 for the quarter.
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The elevated cancellations are expected to depress reported net backlog awards in Q4 and Q1 of 2025.
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RFPs were down modestly on a year-over-year and sequential basis, indicating a potential slowdown in new business opportunities.
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Gross bookings were lower in the quarter due to prior cancellations, impacting the overall business momentum.
Q: Can you provide more details on the elevated cancellations and whether any trends have emerged in terms of therapeutic areas or other factors? A: August Troendle, CEO: The cancellations are largely random and not tied to specific therapeutic areas. The common factor is that many companies were funded during the COVID high and have since run out of money. The cancellations are not due to dissatisfaction with our services but rather financial difficulties faced by these companies.