Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MEDP | |
Entity Registrant Name | Medpace Holdings, Inc. | |
Entity Central Index Key | 0001668397 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 33,647,133 | |
Entity File Number | 001-37856 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0434904 | |
Entity Address, Address Line One | 5375 Medpace Way | |
Entity Address, City or Town | Cincinnati | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 45227 | |
City Area Code | 513 | |
Local Phone Number | 579-9911 | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock $0.01 par value | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 82,843 | $ 461,304 |
Accounts receivable and unbilled, net (includes $6.0 million and $2.7 million with related parties at March 31, 2022 and December 31, 2021, respectively) | 224,759 | 186,432 |
Prepaid expenses and other current assets | 48,367 | 43,176 |
Total current assets | 355,969 | 690,912 |
Property and equipment, net | 98,529 | 93,153 |
Operating lease right-of-use assets | 141,638 | 129,558 |
Goodwill | 662,396 | 662,396 |
Intangible assets, net | 40,522 | 41,360 |
Deferred income taxes | 25,809 | 25,134 |
Other assets | 19,483 | 17,422 |
Total assets | 1,344,346 | 1,659,935 |
Current liabilities: | ||
Accounts payable (includes $0.7 million and $0.3 million with related parties at March 31, 2022 and December 31, 2021, respectively) | 25,434 | 25,678 |
Accrued expenses | 155,018 | 159,286 |
Advanced billings (includes $11.4 million and $8.3 million with related parties at March 31, 2022 and December 31, 2021, respectively) | 367,221 | 344,641 |
Other current liabilities | 31,755 | 27,612 |
Total current liabilities | 579,428 | 557,217 |
Operating lease liabilities | 141,624 | 130,965 |
Deferred income tax liability | 1,055 | 1,080 |
Other long-term liabilities | 17,223 | 17,745 |
Total liabilities | 739,330 | 707,007 |
Commitments and contingencies (see Note 11) | ||
Shareholders’ equity: | ||
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 0 | 0 |
Common stock - $0.01 par-value; 250,000,000 shares authorized at March 31, 2022 and December 31, 2021, respectively; 33,651,360 and 36,006,778 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 336 | 360 |
Treasury stock - 81,573 and 180,000 shares at March 31, 2022 and December 31, 2021, respectively | (14,243) | (5,427) |
Additional paid-in capital | 746,123 | 727,857 |
(Accumulated deficit) Retained earnings | (120,812) | 234,984 |
Accumulated other comprehensive loss | (6,388) | (4,846) |
Total shareholders’ equity | 605,016 | 952,928 |
Total liabilities and shareholders’ equity | $ 1,344,346 | $ 1,659,935 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, unbilled services with related parties | $ 6 | $ 2.7 |
Accounts payable includes related parties | 0.7 | 0.3 |
Advanced billings with related parties | $ 11.4 | $ 8.3 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock shares issued | 0 | 0 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 250,000,000 | 250,000,000 |
Common stock shares issued | 33,651,360 | 36,006,778 |
Common stock shares outstanding | 33,651,360 | 36,006,778 |
Treasury stock shares | 81,573 | 180,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, net (includes $13.3 million and $5.3 million with related parties for the three months ended March 31, 2022 and 2021, respectively) | $ 330,947 | $ 259,965 |
Operating expenses: | ||
Total direct costs | 232,270 | 181,538 |
Selling, general and administrative | 29,366 | 25,738 |
Depreciation | 4,270 | 3,812 |
Amortization | 838 | 1,278 |
Total operating expenses | 266,744 | 212,366 |
Income from operations | 64,203 | 47,599 |
Other income, net: | ||
Miscellaneous income, net | 1,067 | 924 |
Interest income (expense), net | 54 | (14) |
Total other income, net | 1,121 | 910 |
Income before income taxes | 65,324 | 48,509 |
Income tax provision | 4,013 | 5,203 |
Net income | $ 61,311 | $ 43,306 |
Net income per share attributable to common shareholders: | ||
Basic | $ 1.75 | $ 1.21 |
Diluted | $ 1.69 | $ 1.14 |
Weighted average common shares outstanding: | ||
Basic | 34,918 | 35,753 |
Diluted | 36,364 | 37,749 |
Direct Costs | ||
Operating expenses: | ||
Total direct costs | $ 125,434 | $ 101,387 |
Reimbursable Out of Pocket Costs | ||
Operating expenses: | ||
Total direct costs | $ 106,836 | $ 80,151 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue Net | ||
Revenue with related parties | $ 13,300 | $ 5,300,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 61,311 | $ 43,306 |
Other comprehensive income | ||
Foreign currency translation adjustments, net of taxes | (1,542) | (2,135) |
Comprehensive income | $ 59,769 | $ 41,171 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss |
Balance at Dec. 31, 2020 | $ 805,779 | $ 355 | $ (5,578) | $ 695,904 | $ 115,229 | $ (131) |
Net income | 43,306 | 43,306 | ||||
Foreign currency translation | (2,135) | (2,135) | ||||
Stock-based compensation expense | 2,871 | 2,871 | ||||
Stock options exercised | 9,106 | 4 | 9,102 | |||
Balance at Mar. 31, 2021 | 858,927 | 359 | (5,578) | 707,877 | 158,535 | (2,266) |
Balance at Dec. 31, 2021 | 952,928 | 360 | (5,427) | 727,857 | 234,984 | (4,846) |
Net income | 61,311 | 61,311 | ||||
Foreign currency translation | (1,542) | (1,542) | ||||
Stock-based compensation expense | 4,372 | 4,372 | ||||
Stock options exercised | 13,897 | 3 | 13,894 | |||
Repurchases of common stock | (425,950) | 27 | 14,243 | 411,680 | ||
Retirement of treasury stock | (5,427) | 5,427 | ||||
Balance at Mar. 31, 2022 | $ 605,016 | $ 336 | $ (14,243) | $ 746,123 | $ (120,812) | $ (6,388) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 61,311 | $ 43,306 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 4,270 | 3,812 |
Amortization | 838 | 1,278 |
Stock-based compensation expense | 4,372 | 2,871 |
Noncash lease expense | 4,537 | 3,903 |
Deferred income tax (benefit) provision | (713) | 1,289 |
Amortization and adjustment of deferred credit | (155) | (167) |
Other | (265) | 124 |
Changes in assets and liabilities: | ||
Accounts receivable and unbilled, net | (38,224) | 1,089 |
Prepaid expenses and other current assets | (5,547) | (6,073) |
Accounts payable | (1,041) | (2,638) |
Accrued expenses | (3,651) | (10,043) |
Advanced billings | 22,580 | 22,143 |
Lease liabilities | (3,542) | (3,155) |
Other assets and liabilities, net | 1,486 | (420) |
Net cash provided by operating activities | 46,256 | 57,319 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Property and equipment expenditures | (9,257) | (6,507) |
Other | (1,951) | (3,144) |
Net cash used in investing activities | (11,208) | (9,651) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from stock option exercises | 13,867 | 9,102 |
Repurchases of common stock | (425,950) | |
Proceeds from revolving loan | 49,500 | |
Payments on revolving loan | (49,500) | |
Net cash (used in) provided by financing activities | (412,083) | 9,102 |
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (1,426) | (1,659) |
(DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (378,461) | 55,111 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period | 461,304 | 277,766 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period | 82,843 | 332,877 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION— | ||
Acquisition of property and equipment—non-cash | $ 7,375 | $ 6,531 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (1) Basis of Presentation Description of Business Medpace Holdings, Inc. (together with its subsidiaries, “Medpace” or the “Company”), a Delaware corporation, is a global provider of clinical research-based drug and medical device development services. The Company partners with pharmaceutical, biotechnology, and medical device companies in the development and execution of clinical trials. The Company’s drug development services focus on full service Phase I-IV clinical development services and include development plan design, project management, regulatory affairs, clinical monitoring, data management and analysis, pharmacovigilance new drug application submissions, post-marketing clinical support, laboratory services, clinical human pharmacology, imaging services, and electrocardiography reading support for clinical trials. The Company’s operations are principally based in North America, Europe, and Asia. Unaudited Interim Financial Information The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Share Repurchases In the second quarter of 2021, the Board approved an increase of $ 150.0 million to the stock repurchase program bringing the total repurchase authorization up to $ 300.0 million. In the first quarter of 2022, the Board approved increases totaling $ 500.0 million to the Company's stock repurchase program. During the three months ended March 31, 2022 , the Company repurchased 2,745,865 shares for $ 425.9 million. As of March 31, 2022 , the Company has remaining authorization of $ 264.6 million under the repurchase program. Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1. The Company constructively retired the repurchased shares associated with these approved share repurchases, except for a small portion which were retained as Treasury Shares on the condensed consolidated statements of shareholders' equity. Retired share repurchase amounts paid in excess of par value are reflected within Accumulated deficit/Retained earnings in the Company’s condensed consolidated balance sheets. The repurchase program may be suspended or discontinued at any time without notice. Recently Issued Accounting Standards In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance" which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity's financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The guidance is effective for annual periods beginning after December 15, 2021 , with early adoption permitted. The Company is currently evaluating the effect this standard will have on its condensed consolidated financial statements and related disclosures. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | (2) Net Income Per Share Basic and diluted earnings or loss per share (“EPS”) are computed using the two-class method, which is an earnings allocation that determines EPS for each class of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. The Company’s Restricted Stock Awards (“RSA”) are considered participating securities because they are legally issued at the date of grant and holders are entitled to receive non-forfeitable dividends during the vesting term. The computation of diluted EPS includes additional common shares, such as unvested Restricted Stock Units (“RSU”) and stock options with exercise prices less than the average market price of the Company’s common stock during the period (“in-the-money options”), which would be considered outstanding. This assumes that additional shares would have to be issued in cases where the exercise price of stock options is less than the value of the common stock being acquired because the cash proceeds received from the stock option holder would not be sufficient to acquire that same number of shares. The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect. The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2022 and 2021 (in thousands, except for earnings per share): Three Months Ended March 31, 2022 2021 Weighted-average shares: Common shares outstanding 34,918 35,753 RSAs 21 116 Total weighted-average shares 34,939 35,869 Earnings per common share—Basic Net income $ 61,311 $ 43,306 Less: Undistributed earnings allocated to RSAs ( 36 ) ( 140 ) Net income available to common shareholders—Basic $ 61,275 $ 43,166 Net income per common share—Basic $ 1.75 $ 1.21 Basic weighted-average common shares outstanding 34,918 35,753 Effect of diluted shares 1,446 1,996 Diluted weighted-average shares outstanding 36,364 37,749 Net income per common share—Diluted $ 1.69 $ 1.14 During the three months ended March 31, 2022, the Company had (in thousands) 264 stock options that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (3) Fair Value Measurements The Company follows accounting guidance related to fair value measurements that defines fair value, establishes a framework for measuring fair value, and establishes a hierarchy for inputs used in measuring fair value. This hierarchy maximizes the use of “observable” inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy specifies three levels based on the inputs, as follows: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2: Valuations based on directly observable inputs or unobservable inputs corroborated by market data. Level 3: Valuations based on unobservable inputs supported by little or no market activity representing management’s determination of assumptions of how market participants would price the assets or liabilities. The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses and advanced billings approximate their carrying amounts due to their short term maturities. The Company does not have any recurring fair value measurements as of March 31, 2022 . There were no transfers between Level 1, Level 2 or Level 3 during the three months ended March 31, 2022 or March 31, 2021 . |
Contract Assets and Contract Li
Contract Assets and Contract Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Contract Liabilities | (4) Contract Assets and Contract Liabilities Contract assets and liabilities are reflected in the Company’s condensed consolidated balance sheets within the accounts reflected below. Contract Assets Accounts receivable represent amounts due from the Company’s customers who are concentrated primarily in the pharmaceutical, biotechnology, and medical device industries. Unbilled represents revenue recognized to date that has not been billed or is not yet contractually billable to the customer. In general, amounts become billable upon the achievement of negotiated contractual events, in accordance with predetermined payment schedules or when a reimbursable expense has been incurred. Amounts classified to unbilled are those billable to customers within one year from the respective balance sheet date. Accounts receivable and unbilled, net consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Accounts receivable $ 185,309 $ 150,496 Unbilled receivables 39,620 36,107 Less: allowance for doubtful accounts ( 170 ) ( 171 ) Total accounts receivable and unbilled, net $ 224,759 $ 186,432 Contract Liabilities Advanced billings represent cash received from customers, or billed amounts per an agreed upon payment schedule, in advance of services being performed or revenue being recognized. Advanced billings consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Advanced billings $ 367,221 $ 344,641 As of March 31, 2022 , we had approximately $ 2.4 billion of performance obligations remaining to be performed for active projects. |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | (5) Intangible Assets, Net Intangible assets, net consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Accumulated amortization: Customer relationships ( 136,175 ) ( 135,337 ) Total finite-lived intangible assets, net 8,876 9,714 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 40,522 $ 41,360 As of March 31, 2022, estimated amortization expense of the Company’s intangible assets for each of the next five years and thereafter is as follows (in thousands): Amortization Remainder of 2022 $ 2,515 2023 2,199 2024 1,443 2025 946 2026 620 Later years 1,153 $ 8,876 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | (6) Accrued Expenses Accrued expenses consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Employee compensation and benefits $ 44,661 $ 57,846 Project related reimbursable expenses 101,085 91,839 Other 9,272 9,601 Total accrued expenses $ 155,018 $ 159,286 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | (7) Debt On September 30, 2019 (the “Closing Date”), the Company obtained an unsecured credit facility in an aggregate principal amount up to $ 50.0 million (as amended from time to time, the “Credit Facility”) through its wholly owned subsidiaries, Medpace, Inc., as borrower (the “Borrower”), and Medpace IntermediateCo, Inc., as guarantor (the “Guarantor”). On the Closing Date, the Borrower and lender entered into a Loan Agreement (the “Loan Agreement”) providing for the Credit Facility, and the Guarantor executed a Guaranty Agreement providing for its guarantee of the payment and performance of the obligations under the Loan Agreement. On March 30, 2020, the Company amended the Credit Facility to extend its expiration date to March 31, 2021 and add provisions for alternative interest rates when certain interbank market offered rates are not available. On March 29, 2021 the Company amended the Credit Facility expiration date to March 31, 2022 . On December 27, 2021, the Company entered into Amendment No. 3 to the Credit Facility, which extends the expiration date of the revolving credit note to March 31, 2023 and adds provisions for alternative rates of interest as a result of global reference rate initiatives and removes the ability to obtain advances in any currency other than U.S. Dollars. After the LIBOR cessation date of December 31, 2021, the Credit Facility bears interest at a rate of the sum of The Secured Overnight Financing Rate (SOFR) and the benchmark replacement adjustment plus 100 basis points (1.00%). On March 15, 2022, the Company entered into Amendment No. 4 to the Credit Facility, which increases the aggregate principal amount that may be borrowed under the facility’s line of credit to up to $ 250.0 million. As of March 31, 2022 , there were no outstanding borrowings under the Credit Facility and $ 0.2 million in letters of credit outstanding related to certain operating lease obligations, which are secured by the Credit Facility. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | (8) Leases The Company enters into leases for real estate and equipment. Real estate leases are for our corporate office space and laboratories around the world. Real estate leases have remaining lease terms of less than 1 year to 18 years. Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. Many leases also include options to terminate the leases within 1 year or per other contractual terms. The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2022 2021 Operating lease cost $ 6,500 $ 5,730 Variable lease cost 2,016 1,704 Supplemental cash flow information related to the leases was as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,806 $ 3,422 Right-of-use assets obtained in exchange for lease obligations: Operating leases 17,745 2,672 Supplemental balance sheet information related to the leases was as follows (in thousands): As of March 31, December 31, 2022 2021 Operating lease right-of-use assets $ 141,638 $ 129,558 Other current liabilities $ 18,460 $ 16,276 Operating lease liabilities 141,624 130,965 Total operating lease liabilities $ 160,084 $ 147,241 Weighted Average Remaining Lease Term (years) Operating leases 11.4 12.0 Weighted Average Discount Rate Operating leases 5.3 % 5.5 % Lease payments due related to lease liabilities as of March 31, 2022 were as follows (in thousands): Related Party Non-Related Parties Total Operating Leases Operating Leases Operating Leases Remainder of 2022 $ 8,186 $ 10,731 $ 18,917 2023 11,025 14,284 25,309 2024 11,154 11,269 22,423 2025 11,286 8,910 20,196 2026 11,422 7,506 18,928 Later years 106,988 10,612 117,600 Total lease payments 160,061 63,312 223,373 Less: imputed interest ( 57,504 ) ( 5,785 ) ( 63,289 ) Total $ 102,557 $ 57,527 $ 160,084 As of March 31, 2022 , we have several additional leases with contractual obligations, which have not yet commenced, with future payments of $ 0.1 million. |
Shareholder's Equity and Stock-
Shareholder's Equity and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholder's Equity and Stock-Based Compensation | (9) Shareholder’s Equity and Stock-Based Compensation The Company granted 364,286 awards to employees under the 2016 Incentive Award Plan during the three months ended March 31, 2022 , consisting of 124,043 RSU and 113,009 stock option awards vesting after four years and 127,234 stock option awards vesting after two years . Award Activity The following table sets forth the Company’s stock option activity: Three Months Ended March 31, 2022 Weighted Average Stock Options Exercise Price Outstanding - beginning of period 1,992,915 $ 68.39 Granted 240,243 $ 139.63 Exercised ( 308,447 ) $ 45.05 Cancelled/Forfeited ( 15,550 ) $ 79.70 Expired ( 6,397 ) $ 16.20 Outstanding - end of period 1,902,764 $ 81.25 Exercisable - end of period 1,266,283 $ 53.82 The following table sets forth the Company’s RSA/RSU activity: Three Months Ended March 31, 2022 Shares/Units Outstanding and unvested - beginning of period 602,187 Granted 124,043 Vested ( 82,000 ) Forfeited ( 17,165 ) Outstanding and unvested - end of period 627,065 Cumulative vested shares - end of period 2,114,916 Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands): Three Months Ended March 31, 2022 2021 Total direct costs $ 2,440 $ 2,047 Selling, general and administrative 1,932 824 Total stock-based compensation expense $ 4,372 $ 2,871 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes The Company’s effective income tax rate was 6.1 % and 10.7 % for the three months ended March 31, 2022 and 2021, respectively. The Company’s effective income tax rate for the three months ended March 31, 2022 varied from the U.S. statutory rate of 21 % primarily due to the impact of state taxes, which was favorably offset by excess tax benefits recognized from share-based compensation and benefits from uncertain tax positions. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies Legal Proceedings The Company is involved in legal proceedings from time to time in the ordinary course of its business, including employment claims and claims related to other business transactions. The Company cannot predict with certainty the outcome of such proceedings, but it believes that adequate reserves have been recorded and losses already recognized with respect to such proceedings, which were immaterial as of March 31, 2022 and December 31, 2021. There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions; however, the Company believes that such potential losses were immaterial as of March 31, 2022. Purchase Commitments The Company has several minimum purchase commitments for project related supplies totaling $ 11.9 million as of March 31, 2022 . In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2027. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (12) Related Party Transactions Employee Loans The Company periodically extends short term loans or advances to employees, typically upon commencement of employment. Total receivables as a result of these employee advances of $ 0.2 million existed at March 31, 2022 and December 31, 2021, respectively, and are included in the Prepaid expenses and other current assets and Other assets line items of the condensed consolidated balance sheets, respectively, depending on the contractual repayment date. Service Agreement LIB Therapeutics LLC and subsidiaries (“LIB”) Certain executives and employees of the Company, including the chief executive officer, are members of LIB’s board of managers. The Company entered into a MSA dated November 24, 2015 with LIB, a company that engages in research, development, marketing and commercialization of pharmaceutical drugs. Subsequently, the Company and LIB have entered into several task orders for the Company to perform clinical trial related services. The Company recognized total revenue from LIB of $ 7.4 million and $ 0.5 million during the three months ended March 31, 2022 and 2021, respectively, in the Company’s condensed consolidated statements of operations. As of March 31, 2022 and December 31, 2021 , respectively, the Company had Advanced billings from LIB of $ 2.9 million in the condensed consolidated balance sheets. In addition, as of March 31, 2022 and December 31, 2021 , respectively, the Company had Accounts receivable and unbilled, net from LIB of $ 3.2 million and $ 0.5 million in the condensed consolidated balance sheets. CinRX Pharma and subsidiaries (“CinRx”) Certain executives and employees of the Company, including the chief executive officer, are members of CinRx’s board of managers and/or have equity investments in CinRx, a biotech company. The Company and CinRx have entered into several task orders for the Company to perform clinical trial related services. The Company recognized total revenue from CinRx of $ 5.8 million and $ 4.8 million during the three months ended March 31, 2022 and 2021, respectively, in the Company’s condensed consolidated statements of operations. As of March 31, 2022 and December 31, 2021 , respectively, the Company had Advanced billings from CinRx of $ 8.5 million and $ 5.4 million in the condensed consolidated balance sheets. As of March 31, 2022 and December 31, 2021 the Company had Accounts receivable and unbilled, net from CinRx of $ 2.8 million and $ 2.1 million, respectively, in the condensed consolidated balance sheets. The Summit Hotel (“The Summit”) The Summit Hotel, located on the Medpace campus, is owned by the chief executive officer, and managed by an unrelated hospitality management entity. Medpace incurs travel lodging and meeting expenses at The Summit. During the three months ended March 31, 2022 and 2021 , Medpace incurred expenses of less than $ 0.1 million and $ 0.1 million at The Summit, respectively. Leased Real Estate Headquarters Lease The Company entered into an operating lease for its corporate headquarters with an entity that is wholly owned by the chief executive officer of the Company. The Company has evaluated its relationship with the related party and concluded that the related party is not a variable interest entity because the Company has no direct ownership interest or relationship other than the lease. The lease for headquarters is for an initial term of twelve years through November 2022 with a renewal option for one 10-year term at prevailing market rates. In Q3 2021, the Company accounted for the renewal option, as it became reasonably certain it would be exercised per the agreement, by extending the lease term through November 2032. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for its corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. Operating lease cost recognized for the three months ended March 31, 2022 and 2021 was $ 0.6 million and $ 0.5 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2022 and December 31, 2021 were $ 19.3 million and $ 19.7 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2022 were $ 1.5 million and $ 17.9 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2021 were $ 1.5 million and $ 18.3 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. In 2018, Medpace, Inc. entered into a multi-year lease agreement governing future occupancy of additional office space in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The Company began to occupy the premises in the second quarter of fiscal year 2020. The lease expires in 2040 and the Company has two 10-year options to extend the term of the lease. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. The Company has determined that the lease is an operating lease. Operating lease cost recognized for the three months ended March 31, 2022 and 2021 was $ 1.4 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2022 and December 31, 2021 were $ 54.7 million and $ 55.1 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2022 were $ 1.0 million and $ 65.7 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2021 were $ 0.9 million and $ 65.9 million, respectively and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The Company entered into two multi-year lease agreements governing the occupancy of space of two buildings in Cincinnati, Ohio with an entity that is wholly owned by the Company’s chief executive officer and certain members of his immediate family. The Company assumed occupancy in 2012 and the leases expire in 2027 with the Company having one 10-year option to extend the lease term. The Company pays rent, taxes, insurance, and maintenance expenses that arise from the use of the property. Annual base rent for the corporate headquarters allows for adjustments to the rental rate annually for increases in the consumer price index. The Company has determined that the leases are operating leases. Operating lease cost recognized for the three months ended March 31, 2022 and 2021 was $ 0.9 million, respectively. The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations. The Operating lease right-of-use assets at March 31, 2022 and December 31, 2021 were $ 16.6 million and $ 17.2 million, respectively, in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at March 31, 2022 were $ 2.6 million and $ 13.9 million, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. The current and long-term portions of the lease liabilities at December 31, 2021 were $ 2.6 million and $ 14.6 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets. Travel Services The Company incurs expenses for travel services for company executives provided by private aviation charter companies which is a company controlled by the chief executive officer of the Company (each a “private aviation charter”). The Company may contract directly with the private aviation charter for the use of its aircraft or indirectly through a third party aircraft management and jet charter company (the “Aircraft Management Company”). The travel services provided are primarily for business purposes, with certain personal travel paid for as part of the executives’ compensation arrangements. The Aircraft Management Company also makes the private aviation charter aircraft available to third parties. The Company incurred travel expenses of $ 0.4 million and $ 0.1 million during the three months ended March 31, 2022 and 2021, respectively, related to these travel services. These travel expenses are recorded in Selling, general and administrative in the Company’s condensed consolidated statements of operations. As of March 31, 2022 and December 31, 2021 , the Company had Accounts payable to the Aircraft Management Company of $ 0.6 million and $ 0.2 million, respectively, in the condensed consolidated balance sheets. |
Entity Wide Disclosures
Entity Wide Disclosures | 3 Months Ended |
Mar. 31, 2022 | |
Entity Wide Disclosures [Abstract] | |
Entity Wide Disclosures | (13) Entity Wide Disclosures Revenue by Category The following table disaggregates our revenue by major source (in thousands): Three months Ended March 31, 2022 2021 Therapeutic Area Oncology $ 105,213 $ 79,138 Other 70,417 68,938 Metabolic 48,116 32,495 Central Nervous System 38,487 24,812 Cardiology 37,396 23,762 AVAI 31,318 30,820 Total revenue $ 330,947 $ 259,965 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The interim condensed consolidated financial statements include the accounts of the Company, are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), and are unaudited. In the opinion of the Company’s management, all adjustments of a normal recurring nature necessary for a fair presentation have been reflected. Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. The preparation of the interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes could differ from management’s estimates and assumptions. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Share Repurchases | Share Repurchases In the second quarter of 2021, the Board approved an increase of $ 150.0 million to the stock repurchase program bringing the total repurchase authorization up to $ 300.0 million. In the first quarter of 2022, the Board approved increases totaling $ 500.0 million to the Company's stock repurchase program. During the three months ended March 31, 2022 , the Company repurchased 2,745,865 shares for $ 425.9 million. As of March 31, 2022 , the Company has remaining authorization of $ 264.6 million under the repurchase program. Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1. The Company constructively retired the repurchased shares associated with these approved share repurchases, except for a small portion which were retained as Treasury Shares on the condensed consolidated statements of shareholders' equity. Retired share repurchase amounts paid in excess of par value are reflected within Accumulated deficit/Retained earnings in the Company’s condensed consolidated balance sheets. The repurchase program may be suspended or discontinued at any time without notice. |
Recently Adopted Accounting Standards | Recently Issued Accounting Standards In November 2021, the FASB issued ASU 2021-10, "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance" which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity's financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The guidance is effective for annual periods beginning after December 15, 2021 , with early adoption permitted. The Company is currently evaluating the effect this standard will have on its condensed consolidated financial statements and related disclosures. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Denominators and Additional Shares that are Excluded from the Calculation of EPS | The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2022 and 2021 (in thousands, except for earnings per share): Three Months Ended March 31, 2022 2021 Weighted-average shares: Common shares outstanding 34,918 35,753 RSAs 21 116 Total weighted-average shares 34,939 35,869 Earnings per common share—Basic Net income $ 61,311 $ 43,306 Less: Undistributed earnings allocated to RSAs ( 36 ) ( 140 ) Net income available to common shareholders—Basic $ 61,275 $ 43,166 Net income per common share—Basic $ 1.75 $ 1.21 Basic weighted-average common shares outstanding 34,918 35,753 Effect of diluted shares 1,446 1,996 Diluted weighted-average shares outstanding 36,364 37,749 Net income per common share—Diluted $ 1.69 $ 1.14 |
Contract Assets and Contract _2
Contract Assets and Contract Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Company's Contract Asset and Contract Liability | Accounts receivable and unbilled, net consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Accounts receivable $ 185,309 $ 150,496 Unbilled receivables 39,620 36,107 Less: allowance for doubtful accounts ( 170 ) ( 171 ) Total accounts receivable and unbilled, net $ 224,759 $ 186,432 Advanced billings consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Advanced billings $ 367,221 $ 344,641 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Intangible assets: Finite-lived intangible assets: Carrying amount: Customer relationships 145,051 145,051 Accumulated amortization: Customer relationships ( 136,175 ) ( 135,337 ) Total finite-lived intangible assets, net 8,876 9,714 Trade name (indefinite-lived) 31,646 31,646 Total intangible assets, net $ 40,522 $ 41,360 |
Schedule of Estimated Amortization Expense of Intangible Assets | As of March 31, 2022, estimated amortization expense of the Company’s intangible assets for each of the next five years and thereafter is as follows (in thousands): Amortization Remainder of 2022 $ 2,515 2023 2,199 2024 1,443 2025 946 2026 620 Later years 1,153 $ 8,876 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands): As of March 31, December 31, 2022 2021 Employee compensation and benefits $ 44,661 $ 57,846 Project related reimbursable expenses 101,085 91,839 Other 9,272 9,601 Total accrued expenses $ 155,018 $ 159,286 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense were as follows (in thousands): Three Months Ended March 31, 2022 2021 Operating lease cost $ 6,500 $ 5,730 Variable lease cost 2,016 1,704 |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to the leases was as follows (in thousands): Three Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,806 $ 3,422 Right-of-use assets obtained in exchange for lease obligations: Operating leases 17,745 2,672 |
Summary of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the leases was as follows (in thousands): As of March 31, December 31, 2022 2021 Operating lease right-of-use assets $ 141,638 $ 129,558 Other current liabilities $ 18,460 $ 16,276 Operating lease liabilities 141,624 130,965 Total operating lease liabilities $ 160,084 $ 147,241 Weighted Average Remaining Lease Term (years) Operating leases 11.4 12.0 Weighted Average Discount Rate Operating leases 5.3 % 5.5 % |
Schedule of Lease Payments Due Related To Lease Liabilities | Lease payments due related to lease liabilities as of March 31, 2022 were as follows (in thousands): Related Party Non-Related Parties Total Operating Leases Operating Leases Operating Leases Remainder of 2022 $ 8,186 $ 10,731 $ 18,917 2023 11,025 14,284 25,309 2024 11,154 11,269 22,423 2025 11,286 8,910 20,196 2026 11,422 7,506 18,928 Later years 106,988 10,612 117,600 Total lease payments 160,061 63,312 223,373 Less: imputed interest ( 57,504 ) ( 5,785 ) ( 63,289 ) Total $ 102,557 $ 57,527 $ 160,084 |
Shareholder's Equity and Stoc_2
Shareholder's Equity and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | The following table sets forth the Company’s stock option activity: Three Months Ended March 31, 2022 Weighted Average Stock Options Exercise Price Outstanding - beginning of period 1,992,915 $ 68.39 Granted 240,243 $ 139.63 Exercised ( 308,447 ) $ 45.05 Cancelled/Forfeited ( 15,550 ) $ 79.70 Expired ( 6,397 ) $ 16.20 Outstanding - end of period 1,902,764 $ 81.25 Exercisable - end of period 1,266,283 $ 53.82 |
Schedule of RSA/RSU Activity | The following table sets forth the Company’s RSA/RSU activity: Three Months Ended March 31, 2022 Shares/Units Outstanding and unvested - beginning of period 602,187 Granted 124,043 Vested ( 82,000 ) Forfeited ( 17,165 ) Outstanding and unvested - end of period 627,065 Cumulative vested shares - end of period 2,114,916 |
Summary of Stock-Based Compensation Expense Recognized in Statements of Operations Related to All Outstanding Stock Based Compensation Awards | Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock based compensation awards is summarized below (in thousands): Three Months Ended March 31, 2022 2021 Total direct costs $ 2,440 $ 2,047 Selling, general and administrative 1,932 824 Total stock-based compensation expense $ 4,372 $ 2,871 |
Entity Wide Disclosures (Tables
Entity Wide Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Entity Wide Disclosures [Abstract] | |
Summary of Revenue by Major Source | The following table disaggregates our revenue by major source (in thousands): Three months Ended March 31, 2022 2021 Therapeutic Area Oncology $ 105,213 $ 79,138 Other 70,417 68,938 Metabolic 48,116 32,495 Central Nervous System 38,487 24,812 Cardiology 37,396 23,762 AVAI 31,318 30,820 Total revenue $ 330,947 $ 259,965 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Basis Of Presentation [Line Items] | ||
Repurchases of shares, value | $ 425,950 | |
Share Repurchase Program | ||
Basis Of Presentation [Line Items] | ||
Stock repurchase program, additional amount authorized | $ 500,000 | $ 150,000 |
Repurchases of shares | 2,745,865 | |
Repurchases of shares, value | $ 425,900 | |
Remaining amount of repurchase program | $ 264,600 | |
Share Repurchase Program | Maximum | ||
Basis Of Presentation [Line Items] | ||
Stock repurchase program, authorized amount | $ 300,000 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Reconciliation of Denominators and Additional Shares that are Excluded from the Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 34,918 | 35,753 |
Total weighted-average shares | 34,939 | 35,869 |
Earnings per common share—Basic | ||
Net income | $ 61,311 | $ 43,306 |
Net income available to common shareholders—Basic | $ 61,275 | $ 43,166 |
Net income per common share—Basic | $ 1.75 | $ 1.21 |
Basic weighted-average common shares outstanding | 34,918 | 35,753 |
Effect of diluted shares | 1,446 | 1,996 |
Diluted weighted-average shares outstanding | 36,364 | 37,749 |
Net income per common share—Diluted | $ 1.69 | $ 1.14 |
RSAs | ||
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 21 | 116 |
Earnings per common share—Basic | ||
Less: Undistributed earnings allocated to RSAs | $ (36) | $ (140) |
Basic weighted-average common shares outstanding | 21 | 116 |
Common Stock | ||
Weighted-average shares: | ||
Basic weighted-average common shares outstanding | 34,918 | 35,753 |
Earnings per common share—Basic | ||
Basic weighted-average common shares outstanding | 34,918 | 35,753 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2022shares | |
Stock Options | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from computation of diluted EPS | 264 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Fair value measurements transfers between level 1, level 2 or level 3 | $ 0 | $ 0 |
Contract Assets and Contract _3
Contract Assets and Contract Liabilities - Summary of Accounts Receivable and Unbilled, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable | $ 185,309 | $ 150,496 |
Unbilled receivables | 39,620 | 36,107 |
Less: allowance for doubtful accounts | (170) | (171) |
Total accounts receivable and unbilled, net | $ 224,759 | $ 186,432 |
Contract Assets and Contract _4
Contract Assets and Contract Liabilities - Summary of Advanced Billings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Advanced billings | $ 367,221 | $ 344,641 |
Contract Assets and Contract _5
Contract Assets and Contract Liabilities - Additional Information (Details) $ in Billions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligations remaining to be performed | $ 2.4 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accumulated amortization: | ||
Total finite-lived intangible assets, net | $ 8,876 | $ 9,714 |
Trade name (indefinite-lived) | 31,646 | 31,646 |
Total intangible assets, net | 40,522 | 41,360 |
Customer Relationships | ||
Finite-lived intangible assets: | ||
Total finite-lived intangible assets | 145,051 | 145,051 |
Accumulated amortization: | ||
Total accumulated amortization | $ (136,175) | $ (135,337) |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Estimated Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2022 | $ 2,515 | |
2023 | 2,199 | |
2024 | 1,443 | |
2025 | 946 | |
2026 | 620 | |
Later years | 1,153 | |
Total finite-lived intangible assets, net | $ 8,876 | $ 9,714 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Employee compensation and benefits | $ 44,661 | $ 57,846 |
Project related reimbursable expenses | 101,085 | 91,839 |
Other | 9,272 | 9,601 |
Total accrued expenses | $ 155,018 | $ 159,286 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jan. 01, 2022 | Dec. 27, 2021 | Mar. 29, 2021 | Mar. 30, 2020 | Mar. 31, 2022 | Mar. 15, 2022 | Sep. 30, 2019 |
Debt Instrument [Line Items] | |||||||
Outstanding letters of credit | $ 200,000 | ||||||
Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, expiration date | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||||
Outstanding borrowings | $ 0 | ||||||
Credit Facility | The Secured Overnight Financing Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis points | 1.00% | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount borrowed under line of credit facility | $ 250,000,000 | ||||||
Maximum | Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 50,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Lessee Lease Description [Line Items] | |
Lease not yet commenced, future payments | $ 0.1 |
Real Estate and Equipment | |
Lessee Lease Description [Line Items] | |
Description of option to extend the lease | Many of the Company’s leases include options to extend the leases on a month to month basis or for set periods for up to 20 years. |
Operating lease, existense of option to extend | true |
Description of option to terminate the lease | Many leases also include options to terminate the leases within 1 year or per other contractual terms. |
Lessee, operating lease, existence of option to terminate | true |
Real Estate and Equipment | Maximum | |
Lessee Lease Description [Line Items] | |
Lease renewal term, operating lease | 20 years |
Operating lease, options to terminate lease term | 1 year |
Real Estate | Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 1 year |
Real Estate | Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 18 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 6,500 | $ 5,730 |
Variable lease cost | $ 2,016 | $ 1,704 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 3,806 | $ 3,422 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 17,745 | $ 2,672 |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 141,638 | $ 129,558 |
Other current liabilities | $ 18,460 | $ 16,276 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating lease liabilities | $ 141,624 | $ 130,965 |
Total operating lease liabilities | $ 160,084 | $ 147,241 |
Weighted Average Remaining Lease Term (years) | ||
Operating leases | 11 years 4 months 24 days | 12 years |
Weighted Average Discount Rate | ||
Operating leases | 5.30% | 5.50% |
Leases - Schedule of Lease Paym
Leases - Schedule of Lease Payments Due Related To Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2022 | $ 18,917 | |
2023 | 25,309 | |
2024 | 22,423 | |
2025 | 20,196 | |
2026 | 18,928 | |
Later years | 117,600 | |
Total lease payments | 223,373 | |
Less: imputed interest | (63,289) | |
Total | 160,084 | $ 147,241 |
Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2022 | 8,186 | |
2023 | 11,025 | |
2024 | 11,154 | |
2025 | 11,286 | |
2026 | 11,422 | |
Later years | 106,988 | |
Total lease payments | 160,061 | |
Less: imputed interest | (57,504) | |
Total | 102,557 | |
Non-Related Party | ||
Operating Lease Liabilities Payments Due [Line Items] | ||
Remainder of 2022 | 10,731 | |
2023 | 14,284 | |
2024 | 11,269 | |
2025 | 8,910 | |
2026 | 7,506 | |
Later years | 10,612 | |
Total lease payments | 63,312 | |
Less: imputed interest | (5,785) | |
Total | $ 57,527 |
Shareholder's Equity and Stoc_3
Shareholder's Equity and Stock-Based Compensation - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted | 240,243 |
2016 Incentive Award Plan | Granted to Employees | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Awards granted to employees | 364,286 |
2016 Incentive Award Plan | Vesting After Two Years | Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted | 127,234 |
Award vesting period | 2 years |
2016 Incentive Award Plan | Vesting After Four Years | Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock options granted | 113,009 |
Award vesting period | 4 years |
2016 Incentive Award Plan | Vesting After Four Years | Restricted Stock Units (RSU) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting period | 4 years |
Shares granted | 124,043 |
Shareholder's Equity and Stoc_4
Shareholder's Equity and Stock-Based Compensation - Schedule of Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Equity [Abstract] | |
Number of Stock Options, Outstanding - beginning of period | shares | 1,992,915 |
Number of Stock Options, Granted | shares | 240,243 |
Number of Stock Options, Exercised | shares | (308,447) |
Number of Stock Options, Cancelled/Forfeited | shares | (15,550) |
Number of Stock Options, Expired | shares | (6,397) |
Number of Stock Options, Outstanding - end of period | shares | 1,902,764 |
Number of Stock Options, Exercisable - end of period | shares | 1,266,283 |
Weighted Average Exercise Price, Outstanding - beginning of period | $ / shares | $ 68.39 |
Weighted Average Exercise Price, Granted | $ / shares | 139.63 |
Weighted Average Exercise Price, Exercised | $ / shares | 45.05 |
Weighted Average Exercise Price, Cancelled/Forfeited | $ / shares | 79.70 |
Weighted Average Exercise Price, Expired | $ / shares | 16.20 |
Weighted Average Exercise Price, Outstanding - end of period | $ / shares | 81.25 |
Weighted Average Exercise Price, Exercisable - end of period | $ / shares | $ 53.82 |
Shareholder's Equity and Stoc_5
Shareholder's Equity and Stock-Based Compensation - Schedule of RSA/RSU Activity (Details) - RSA/RSU | 3 Months Ended |
Mar. 31, 2022shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding and unvested - beginning of period | 602,187 |
Granted | 124,043 |
Vested | (82,000) |
Forfeited | (17,165) |
Outstanding and unvested - end of period | 627,065 |
Cumulative vested shares - end of period | 2,114,916 |
Shareholder's Equity and Stoc_6
Shareholder's Equity and Stock-Based Compensation - Summary of Stock-Based Compensation Expense Recognized in Statements of Operations Related to All Outstanding Stock Based Compensation Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 4,372 | $ 2,871 |
Total Direct Costs | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 2,440 | 2,047 |
Selling, General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 1,932 | $ 824 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 6.10% | 10.70% |
U.S. statutory rate | 21.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum purchase commitments for project related supplies | $ 11.9 |
Minimum purchase commitments, description | The Company has several minimum purchase commitments for project related supplies totaling $11.9 million as of March 31, 2022. In return for the commitment, Medpace receives preferential pricing. The commitments expire at various times through 2027. |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)RenewalOptionAgreementBuilding | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Related Party Transaction [Line Items] | |||
Advanced billings | $ 11,400 | $ 8,300 | |
Accounts receivable and unbilled, net | 6,000 | 2,700 | |
Operating lease cost recognized | 6,500 | $ 5,730 | |
Operating lease right-of-use assets | 141,638 | 129,558 | |
Current portion of lease liability | 18,460 | 16,276 | |
Long-term portion of lease liabilities | 141,624 | 130,965 | |
Accounts payable | 700 | 300 | |
Employee Loans | Prepaid Expenses and Other Current Assets and Other Assets | |||
Related Party Transaction [Line Items] | |||
Employee advances receivables | 200 | 200 | |
Service Agreement | LIB | |||
Related Party Transaction [Line Items] | |||
Advanced billings | 2,900 | 2,900 | |
Accounts receivable and unbilled, net | 3,200 | 500 | |
Service Agreement | LIB | Revenue Net | |||
Related Party Transaction [Line Items] | |||
Revenue with related parties | 7,400 | 500 | |
Service Agreement | CinRx Pharma and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Advanced billings | 8,500 | 5,400 | |
Accounts receivable and unbilled, net | 2,800 | 2,100 | |
Service Agreement | CinRx Pharma and Subsidiaries | Revenue Net | |||
Related Party Transaction [Line Items] | |||
Revenue with related parties | 5,800 | 4,800 | |
Service Agreement | The Summit | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | 100 | ||
Service Agreement | The Summit | Maximum | |||
Related Party Transaction [Line Items] | |||
Expenses incurred | $ 100 | ||
Leased Real Estate | Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Term of lease | 12 years | ||
Lease expiration period | 2022-11 | ||
Number of lease renewal, 10-year option | RenewalOption | 1 | ||
Lease term upon renewal | 10 years | ||
Lease term reassessment Description | In Q3 2021, the Company accounted for the renewal option, as it became reasonably certain it would be exercised per the agreement, by extending the lease term through November 2032. | ||
Leased Real Estate | Chief Executive Officer | Direct Costs and Selling, General And Administrative | |||
Related Party Transaction [Line Items] | |||
Operating lease cost recognized | $ 600 | 500 | |
Leased Real Estate | Chief Executive Officer And Immediate Family | Office Space | |||
Related Party Transaction [Line Items] | |||
Number of lease renewal, 10-year option | RenewalOption | 2 | ||
Lease term upon renewal | 10 years | ||
Lease expiration year | 2040 | ||
Leased Real Estate | Chief Executive Officer And Immediate Family | Building | |||
Related Party Transaction [Line Items] | |||
Number of lease renewal, 10-year option | RenewalOption | 1 | ||
Lease term upon renewal | 10 years | ||
Lease expiration year | 2027 | ||
Number of lease agreements | Agreement | 2 | ||
Number of buildings | Building | 2 | ||
Lease occupancy year | 2012 | ||
Leased Real Estate | Chief Executive Officer And Immediate Family | Direct Costs and Selling, General And Administrative | Office Space | |||
Related Party Transaction [Line Items] | |||
Operating lease cost recognized | $ 1,400 | 1,400 | |
Leased Real Estate | Chief Executive Officer And Immediate Family | Direct Costs and Selling, General And Administrative | Building | |||
Related Party Transaction [Line Items] | |||
Operating lease cost recognized | 900 | 900 | |
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Operating lease right-of-use assets | 19,300 | 19,700 | |
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer And Immediate Family | Office Space | |||
Related Party Transaction [Line Items] | |||
Operating lease right-of-use assets | 54,700 | 55,100 | |
Leased Real Estate | Operating Lease Right-of-Use Assets | Chief Executive Officer And Immediate Family | Building | |||
Related Party Transaction [Line Items] | |||
Operating lease right-of-use assets | 16,600 | 17,200 | |
Leased Real Estate | Other Current Liabilities | Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Current portion of lease liability | 1,500 | 1,500 | |
Leased Real Estate | Other Current Liabilities | Chief Executive Officer And Immediate Family | Office Space | |||
Related Party Transaction [Line Items] | |||
Current portion of lease liability | 1,000 | 900 | |
Leased Real Estate | Other Current Liabilities | Chief Executive Officer And Immediate Family | Building | |||
Related Party Transaction [Line Items] | |||
Current portion of lease liability | 2,600 | 2,600 | |
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Long-term portion of lease liabilities | 17,900 | 18,300 | |
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer And Immediate Family | Office Space | |||
Related Party Transaction [Line Items] | |||
Long-term portion of lease liabilities | 65,700 | 65,900 | |
Leased Real Estate | Operating Lease Liabilities | Chief Executive Officer And Immediate Family | Building | |||
Related Party Transaction [Line Items] | |||
Long-term portion of lease liabilities | 13,900 | 14,600 | |
Travel Services | |||
Related Party Transaction [Line Items] | |||
Accounts payable | 600 | $ 200 | |
Travel Services | Chief Executive Officer | |||
Related Party Transaction [Line Items] | |||
Travel expenses with related party | $ 400 | $ 100 |
Entity Wide Disclosures - Summa
Entity Wide Disclosures - Summary of Revenue by Major Source (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 330,947 | $ 259,965 |
Oncology | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 105,213 | 79,138 |
Other | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 70,417 | 68,938 |
Metabolic | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 48,116 | 32,495 |
Central Nervous System | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 38,487 | 24,812 |
Cardiology | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 37,396 | 23,762 |
AVAI | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 31,318 | 30,820 |
Revenue Net | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 330,947 | $ 259,965 |