Medpace : MEDP 1Q25 Earnings Presentation

Published: 2025-04-21 18:21:59 ET MEDP

Q1 2025

FINANCIAL RESULTS

APRIL 21, 2025

Q1 2025 - KEY OPERATING HIGHLIGHTS

($ in millions)

First Quarter

2025

2024

% Change

Revenue, net

558.6

511.0

9.3 %

Net New Business Awards

500.0

615.6

(18.8)%

Net Book-to-Bill (A)

0.90

1.20

n.m.

Net Book-to-Bill (LTM)

0.98

1.23

n.m.

Ending Backlog

2,846.0

2,907.1

(2.1)%

Backlog Conversion Rate (B)

19.2 %

18.2 %

n.m.

Headcount

5,943

5,817

2.2 %

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BACKLOG AND NEW AWARD TRENDS

Net Book-to-Bill

Backlog Conversion Rate

1.25x

1.24x

1.23x

1.20x

19.1%

19.2%

18.7%

18.5%

1.04x

18.2%

18.3%

18.2%

0.99x

1.00x

0.90x

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

Net New Business Awards

$574.8

$611.5

$614.7

$615.6

$551.0

$533.7

$529.7

$500.0

Ending Backlog and Est. NTM Backlog Conversion(A)

$2,571.9 $2,689.5 $2,813.0 $2,907.1 $2,924.9 $2,927.4 $2,902.2 $2,846.0

$1,610.0(A)

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

($ in millions)

Represents estimated midpoint of NTM conversion(A)

A.Amount of backlog estimated to convert to revenue in the next twelve months.

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Q1 2025 - KEY FINANCIAL HIGHLIGHTS

($ in millions, except per share data)

First Quarter

2025

2024

% Change(B)

Revenue, net

9.3 %

EBITDA(A)

2.6 %

% Margin

21.2 %

22.6 %

n.m.

Net Income

11.7 %

Net Income per diluted share

14.7 %

A. See the appendix for the non-GAAP reconciliation of the EBITDA calculations.

B.On a constant currency basis, in the first quarter of 2025, revenue increased 9.5% and EBITDA increased 1.9%.

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KEY FINANCIAL TRENDS

($ in millions)

Revenue, net

$460.9 $492.5 $498.4 $511.0 $528.1 $533.3 $536.6 $558.6

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

($ in millions)

Net Income

($ in millions)

EBITDA(A)

$118.8

$133.5

$115.7

$112.3

$118.6

$83.6 $90.2 $95.8

22.6%

22.3%

24.9%

21.3%

21.2%

18.1%

18.3%

19.2%

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

Represents percent of Revenue

Net Income per diluted share

$61.1

$70.6

$117.0 $114.6

$102.6

$88.4

$96.4

$78.3

$3.67 $3.67

$3.20

$3.01

$2.46

$2.75

$2.22

$1.93

2Q23

3Q23

4Q23

1Q24

2Q24

3Q24

4Q24

1Q25

A. See the appendix for the non-GAAP reconciliation of the EBITDA calculations.

2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25

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KEY FINANCIAL TRENDS

($ in millions)

Revenue

.2%

.3% CAGR

- 19

+29.2% YOY

+23.4% YOY

+27.8% YOY

$1,460.0

$1,885.8

$925.9

$1,142.4

2020

2021

2022

2023

($ in millions)

EBITDA(A)

+11.8% YOY +1.5% - 6.2% YOY

Guidance Range

$2,109.1 $2,140 - $2,240

20242025

.7%

.2% CAGR

- 21

+38.1% YOY

+17.7% YOY

+18.8% YOY

$223.1

$308.1

$362.5

$187.8

2020

2021

2022

2023

A. See the appendix for the non-GAAP reconciliation of the EBITDA calculations.

+32.5% YOY (3.8)% - 2.5% YOY

Guidance Range

$480.2 $462 - $492

20242025

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KEY FINANCIAL TRENDS

($ in millions)

Net Income

.1% -

.6% CAGR

+34.9% YOY

+15.3% YOY

+25.1% YOY

$181.8

$245.4

$282.8

$145.4

2020

2021

2022

2023

Net Income per diluted share

+43.0% YOY (6.5)% - (0.6)% YOY

Guidance Range

$404.4 $378 - $402

20242025

.7% CAGR

.1% - 27

+22.0% YOY

+51.4% YOY

+25.3% YOY

+42.2% YOY (2.9)% - 3.2% YOY

Guidance Range

$12.63 $12.26 - $13.04

$3.84$4.81

$7.28$8.88

2020

2021

2022

2023

20242025

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Q1 2025 - REVENUE COMPOSITION

Q1 2025

Q1 2024

Therapeutic Area

Concentration

OTH (A)

17%

ONC

AVAI

31%

CNS 10%

10%MET

26%

OTH (A)

21%ONC

30%

AVAI 9%

CNS

MET

20%

11%

Customer Tier

Concentration(B)

Large

Mid-sized Pharma

Biopharma 5%

15%

Small

Biopharma

80%

Mid-sized Large

Biopharma Pharma

17% 4%

Small

Biopharma

79%

Top 10 Customer

Concentration(C)

Top 5

22%

Rest of

All Other

Top 10

10%

68%

Top 5

22%

Rest of

Top 10

All Other

71%

A. Other primarily includes Nephrology, Rheumatology, Musculoskeletal, Dermatology, Gastroenterology, and Ophthalmology therapeutic areas.

B. Current period customer tiers classified by Evaluate Ltd. via EvaluatePharma© as well as management analysis. Large Pharma represents the top 20 pharma companies worldwide based on annual sales as of 12/31/23. Mid-sized biopharma represents customers with >$250M of annual sales. Small Biopharma represents customers with <$250M of annual sales.

C. No single customer represents over 10% of revenue.

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Q1 2025 - CASH POSITION

($ in millions)

Free Cash Flow and Free Cash Flow Conversion(A)

($ in millions)

First Quarter

Free Cash Flow

2025

2024

Free Cash Flow Free Cash Flow Conversion %(A)

127.3%

137.1%

116.6%

$183.0

92.2%

97.6%

$147.2

$138.5

$115.8

$103.5

1Q24

2Q24

3Q24

4Q24

1Q25

Cash(B)

$407.0

$510.9

$656.9

$669.4

$441.4

Net DSO(C)

(60.1)

(58.1)

(62.0)

(71.0)

(67.8)

Operating Cash Flow (GAAP)

Less: CAPEX

Free Cash Flow (non-GAAP)

EBITDA (non-GAAP)

Free Cash Flow Conversion %(A) (non-GAAP)

$ 125.8 $ 152.7

10.0 5.5

$ 115.8 $ 147.2

$ 118.6 $ 115.7

97.6 % 127.3 %

($ in millions)

1Q24

2Q24

3Q24

4Q24

1Q25

Share Repurchases

174.2

389.8

A.Free Cash Flow Conversion % is equal to Free Cash Flow divided by EBITDA. B.Cash is defined as Cash and Cash Equivalents.

C.Net Days Sales Outstanding (DSO) reflects Revenue, net, and is based on billed and unbilled Accounts receivable, net of Advanced billings, including Reimbursed out-of-pocket revenue and expenses.

Note: Numbers may not sum due to rounding

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FULL YEAR 2025 GUIDANCE

($ in millions, except per share data)

As of February 10, 2025

As of April 21, 2025

Guidance Range Growth Rate

Revenue, net

$2,110.0

- $2,210.0

0.0%

- 4.8%

$2,140.0

- $2,240.0

1.5%

- 6.2%

EBITDA

$462.0 - $492.0

(3.8)% - 2.5%

$462.0

- $492.0

(3.8)% - 2.5%

Net Income

$378.0 - $402.0

(6.5)%

- (0.6)%

$378.0

- $402.0

(6.5)%

- (0.6)%

Net Income per diluted share

$11.93

- $12.69

(5.5)% - 0.5%

$12.26

- $13.04

(2.9)% - 3.2%

Note: See appendix for a detailed reconciliation.

MAKING THE COMPLEX SEAMLESS

Disclaimer

Medpace Holdings Inc. published this content on April 21, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 21, 2025 at 22:20 UTC.