PRA Health Sciences (PRAH) 21 Feb 202019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the PRA Health Sciences Fourth Quarter 2019 Earnings Release Conference Call. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Tom Byrne, Vice President of Legal Affairs. Please go ahead, sir.

Thank you. you Quarter us of thank Health the and Fourth Sciences XXXX morning, for for joining PRA Good Earnings Teleconference. our Officer, fourth Shannon, our financial Colin Chief and Officer; Today, Mike results. Chief Financial and will quarter our discuss full year Executive Bonello,

opening available questions. Following comments, will we be our for

with Investor addition of Relations In supplement our our is information website. release, press financial to portion available investor an additional in the

to XXXX. due remind included are forward-looking in Before associated SEC your you Actual XX-K our factors I'd discussed report annual we to business, that the to on materially Form include like and statements risks which differ uncertainties and or questions remarks our filed may may stated risk implied statements. XX, in forward-looking our results February responses the with those begin, from with on by

from Our assume that to time time risk in obligation note statements. no be to forward-looking may filings Please we the any factors SEC. updated with our update

we most Certain and complete call results. these available results gain Relations accordance views portion non-GAAP measures A included comparable Investor helpful more the press our supplement will presented in the financial our believe how are reconciliation a release with measures of helps and of financial financial our providing GAAP consistent earnings We measures. discuss and understanding with to of calculated financial in that the measure, is measures these management financial in investors non-GAAP this GAAP, is and website. investor on

to Colin like call CEO, Shannon. would to turn over the now our I

$XX I pleased earnings solid results our fourth $X.XX, XX% fourth our joining per for thank which to XXXX covering adjusted compared increase increase share an report Good the was growth. to produced the quarter of an financial call income Adjusted Tom. year-over-year. net that year you, Thank million, approximately and for an was fourth and conference you morning, and Revenue diluted revenue approximately and am net was full of income XX% prior million, year. $XXX results. quarter the approximately increase quarter represents XX%, when

I expanding our prior also Consistent continues diversified client margins and per single and our and diluted our am years of objective growth adjusted our for representing pleased XX%. be hit net our adjusted the X and income with base quarter, net well we approximately quarters, clients client with share. than to that of income continue to operating prior representing revenue no and double-digit more top XX%

$XXX X.XX. awards, of For net which the book-to-bill business a reported million fourth net we new quarter represents XXXX, of of

For book-to-bill business full year X.XX. XXXX, with of full new billion another $X.X of year a representing net record level of awards, net

Our of reimbursement full year inclusive was X.XX. revenue book-to-bill

billion have when our and the Although we awards. in compared of our fact, pleased that at established the a new time addition of And lagged XX% business quality at with approximately fourth X% year-end. years, sequential to at were very outperform of amount of increase resulted with am to continue our significantly basis, I backlog metrics awards $X.X models prior and year-over-year backlog business an new the our in quarter new our on in finishing The IPO.

exchange operating Our basis. X% and reported and billion, consistent currency at delivered on of year We continue solid representing X% of full financial margins. growth. $X.X our and revenue currency a rates growth approximately XXXX actual year a strong improved constant approximately foreign results growth full overall trend revenue We of

offerings. to investments During enhance our in service XXXX, and we our continued make business

leadership most amount of significant a areas of our new added have talent the year. We during business in

implement In as addition, systems we were able IT key to planned.

to and our and wide offer long-term well of allow to positioned variety established provide have believe a we we foundation We to will a us believe services that are sustainable growth clients. that

some the XXXX, this faced quarter Regarding the made heading success in and changes our we The add enable instituted the business. Data significant we of continue we to organization, changes into challenges to Solutions team. first talent to long-term leadership you're been we have segment, aware, and the entire by as embraced

by and to our We Clinical and with the with environment a our have in in strength new the opportunities see to outsourcing continue a In a at continue position XXXX. to XXXX, the evolve into RFPs. and we and investing We the made also the strong good flow offerings, we we integration changes XXXX. spending team, believe, we in management continued on to CRO remain very are business We stable, continue segment are build during enhancing remains for expand a offerings. view, service believe of look Research to of focused heading healthy our research we of commercial position

Moving our to guidance. on XXXX

provide commitment In are guidance. adjusted and between XXXX. per $X.XX would additional like when our about high per revenue We continued to our entire to single-digit growth anticipating and $X.XX also representing for will PRA staff Health closing, growth Sciences. clients thank compared to expect XXXX share details diluted earnings double-digit their our I Mike share, and

I a are have XXXX. believe We very positioned for strong we well business, and

like results Financial I would our the Bonello, hand to more call our now Chief Officer, in who Mike go financial will over through to detail.

and good morning, Thank Colin, you, everyone.

a XXXX, at and on our of actual constant quarter basis. grew consolidated both fourth revenue foreign exchange XX%, currency rates the For

fourth revenue of compared previously, XXXX. XXXX reported stated $XXX.X the $XXX.X in to Colin million As fourth in quarter the of of million we quarter

biotechnology of We companies, while reported $XXX.X revenue revenue revenue are to in of derived service companies, XX% segment X% Research the These companies. Solutions other midsized of metrics $XX.X previous our and Clinical of exclude Solutions The and quarter, million Data reported XX% large large what Data line X%, million, increases reported pharmaceutical XX% segment pharmaceutical biotechnology the concentration our companies for reimbursement quarters. XX% segment from and respectively. from from and revenue small with from we've all in

data our of to compared quarter XXXX direct increased labor quarter continues $XXX.X Research we by Total in costs in cost as driven and in as our Solutions segment more of million we to see direct be renewal growth increased in data current the the million the to rates in on as fourth the contracts. are add we and $XXX.X Data continue staff in add costs to assets charged being our slight Clinical we data increase increases costs support The business our in were segment fourth XXXX.

to to primarily for increased the of utilization costs in Selling, The XX.X% costs as compared the and related percentage Direct rate of also quarter XXXX. for expenses administrative impact primarily of as Direct quarter in a administrative exchange of fourth costs or to quarter our of a of revenue general currency favorable general selling exchange fourth XX.X% XXXX XX.X% is to of a fourth percentage favorable the of include rates. in our is in revenue quarter staff. fluctuations foreign XX.X% efforts fluctuations direct The million selling, currency $X and expenses revenue leverage in and decrease were to of the million XXXX. of were due from our fourth decrease XXXX, compared administrative functions. continued the $XXX.X and revenue

the changes XXXX to compared to diluted increased do whose XX.X% certain fluctuation to million fourth XXXX. in income, XX% per in which the quarter to share income correspond not pretax period-to-period excludes net income our results, of impact Adjusted in our share quarter of grew Adjusted of $X.XX items operating by from $XX.X net in and adjusted $X.XX tax The quarter geographic XXXX. the distribution effective earnings. include per decrease a our XX% reduction the net net Adjusted fourth of rate rate income to diluted in driven our of from effective XX%. the in fourth was

XXXX, the $XXX.X $XXX.X XX, of XXXX in exchange million consolidated revenue was a driven currency $X.X months working quarter constant year XX our in in XXXX. quarter to cash compared a result revenue increase an flow $X.X rates the The days capital, in X% actual Cash operating by of the from December decrease X% with outstanding. compared ended cash basis. grew at to on as of billion increase approximately our fourth the in primarily finished For operations in provided inflows We sales fourth was approximately by of billion XXXX. and million a foreign

days XX, Our net at XX sales outstanding days was December XXXX.

$XXX.X provided April December operating million $XXX.X cash XXXX. inclusion to earnout was XX, of ended flows XX XX, XXXX. in XX, the million quarter for million XXXX, to was compared primarily fourth the XXXX. million of $XX.X in months expenditures cash the a related months compared $XX.X $XX.X the compared the For operations XXXX, final the compared were decrease million were prior ended the months ended quarter to December The for in of XX the Symphony XX December $XX.X $XX by for to for of months of for million similar due payment for XX payment million ended $XX.X Capital XXXX year. the expenditures December fourth Capital XX, to million XXXX to

increase As support growth. in capital to of infrastructure and expenditures we've our our reflect to technology expansion discussed investment in our the the our information in prior quarters, continue

compared held cash and at subsidiaries. which million $XXX Net XXXX, equivalents billion less was our December XXXX. debt to Our cash was total at $XXX.X December by as balance XX, million outstanding, million, at XX, $XX foreign $X of debt XXXX, was defined XX, December cash

quarter, As refinancing credit finalized XXXX we the we during previously our the facility. fourth discussed, of

loan date with both Our revolving of credit term a XX, XXXX, September and have at a consists The the due line balance of quarterly through term $X million of of payments has remaining scheduled new principal $X.X fixed loan, facility of $XXX maturity billion XXXX. October credit which million maturity.

dollars, consistent of and with excluding XX% concentration, our XX% expenses, levels. revenue currency and prior and revenue our U.S. is denominated of which reimbursement quarters expenses were Regarding XXXX in our

be exposure euro hedged. to Our naturally continues

is have of or the quarters, expenses denominated GBP, discussed we've of than GBP. we prior our revenue in our in X% are to GBP denominated movements as in less exposure in approximately continue X% As

our XXXX. Turning guidance now to for

representing constant growth We XX%. in between to $X.XX as are $X.XX estimating billion, X% reported of and revenues billion currency

diluted per are $X.XX, between and share earnings and $X.XX GAAP per diluted We share earnings anticipating $X.XX between and $X.XX. adjusted

year and technology full to new continue are investments and to on the are we support of our we infrastructure assets, our the expansion increases of increased expense depreciation contracts in current includes in we anticipating Our as pricing guidance making information invest data impact growth. data

at to guidance business appropriate we awards align seeing increase are is an from in in our winning. are to an need with that level significant as and our we contracting Our anticipating government full a RFPs we agencies governmental year infrastructure of number includes also a ensure investment

income our We XX%. tax also be rate anticipate will approximately that annual effective

if rate may estimate tax in or the differ what changes agencies. from there's additional guidance estimated by we the effective pretax analysis if geographic or this Our interpretation of issued regulatory our if distribution from is changes have earnings

a QX ensure Consistent in quarter prior earnings our with guidance with growth expectations. sequential years, are are to we including line

constant and reported revenues between to growth estimating currency and $XXX are million, as We million of $XXX X% representing X%.

Our that QX the being were is taken replaced. XXXX quarter cancellations by growth that in fourth would we XXXX expected impacted revenue of be

the delayed However, the XXXX. been until of sponsor in new the by later has start program

anticipating we full year income adjusted GAAP our be per are between and between We earnings tax to $X.XX per Similar and our rate XX%. earnings and diluted $X.XX. share per diluted share share to $X.XX $X.XX effective guidance, expect

organizational Our making in we are are the recurring in QX held currency our internal data should of contracts guidance All It assumes includes of impact noted our a payroll of contracting to pricing taxes rate making seasonal first annually and Solutions includes January employee exchange increased also our It guidance the as also XX, the we revenue expenses, and are business. are of data XXXX. investments quarter. expecting investments a that foreign such expenses X.XX. current contracts assets, impact other and as quarter X.XX in of on Data be meetings -- related our in that rates new we're rate euro benefits first government the GBP incurred and segment,

where consistent years, XX is movements for to bank resources months. use multiple for we process expected rates exchange the next evaluate Our determining rate with prior

now prepared open Operator, our the concludes lines. And may That happy to we're questions. you now remarks. take your

from comes Baird. with [Operator And question Eric our first Instructions]. Coldwell

QX, coronavirus or question, might to I mention impact CRO in not think unless the that. any you I date somehow missed only First be to

with guess, seeing? commentary What one. I'll there would start that you So great? any be color I And or are

the our business. on remains up the being year. tried for also quarter, avoid the caught virus. in but in the we've for else, Yes, are, our we -- of as with first just close it stay new outlook very that concerned We it anybody to about contact gauge and everyone have obviously to and with obviously not the to all that consider the obviously in But And health, only we've employees. managed fortunately, effect implications We've good to adjusted managed in for everyone being QX.

we guidance, have mind our looking tried reflect that's So and But up for to to QX these us. all top in forward of are issues weigh it's obviously of something as numbers. we

there is list here maybe didn't mentioned give... of something because impacting QX? Colin, hear So things I it in in implicit you Could the

such it because a kind material huge wasn't didn't variance It mention impact. single of -- wasn't out. was to enough significantly It to there it

that maybe, more will about And talk, factors other The little Mike we material had bit effect. some that. a mentioned

Yes. Yes, certainly. ahead, Eric. Go

No. Go I'll you. after ahead, my question and Mike, you put then original

Yes.

than investment And X I that having costs cost kind about anticipated were contracting we're side. in impacting perspective things out government I'd $X.XX cancellations to of data being $X.XX are resulting than XXXX. the higher on The incur. $X.XX that we're are a that as There's think first data a -- the we quarter is we and are the couple going in quarter pointed impact a from through impact the the had government need bigger in XXXX to say, the to pushed from and that key out. increase there's QX for to about we we working had programs the about X the expected. through or And building making $X.XX of quarter revenue that came had

broke that's the slightly a So had perspective from out bigger we impact because why the they than were materiality coronavirus. from this separately

or hit fourth question these it on up, I'm least, was the not Symphony somehow best big Or margin Symphony with your before to is strength some and -- the Okay, cost, Q&A, the you really this revenue around through definitely you're mistaken. just we're was other data there? helpful. surprise that that's at if I I'm And gross But is costs My margin since a mistaken, there. It think other discussion not actually. deal; not data maybe management incremental offsetting original was the XQ if the in -- due venues? curious, quarter

driving more It's Those of more. this that's less impact over that those of some an happen We're really renewals the first the and the in in fourth course are quarter seeing year. Eric, renewals year. QX an because going half have obviously of of revenue, had the renewals impact to

-- starting lot And this And changes as to add know, it there's year, team. in a new just we you last -- rather made and we a QX. of we're with also, year,

to a did beginning QX stronger we the seeing the in we're So than past.

So we're we've reflected our out that as building QX outlook.

Kreger Our next William with question Blair. comes from John

you represent you that trial, sense before would coronavirus be Just reasonably but what happen could give China typical patients broadly, percent us that's what if the of about we a totally guessing revenue? I'm sites think a quite about China to a maybe issue, of small, leave if and would you have more percent guys as metric?

of China. been of through And has It's reasonably bulk growing mainly looking in China we're one we small had been been we've in work to organically. our And know, areas you the expand. as Solutions. The our Strategic that

that, other are in been area. much neutral think I versus that larger competitors more why it's who us So from that's

it. Got

typical and the the Okay. of remarks you -- very forward Can few that of strategy And question mandates talk you then of And changing? Just versus can mandates If you to years? look not in number evolving. could of you whether how size has RPS, the awards? just the mandates traditional sort pharmas, does lever or I Colin, some interesting strategy? been add the that the recall Strategic to of likely Is had going large back most it's the basically plan were last Solutions what you changed purchased when with is into that? maybe you made still or is, about about kind you the the

that support relationships, aggressively registration, make offer our actually get -- sure wanted mature a and could Strategic the in in these where -- an these expand we outlook We been there of made Well, we it in saw business with year, we service we've to choices. we're expand continuing parts support actually to that the come do this as appropriate. Strategic modest to election happened. go big fairly we optimistic John, because pursue still see work, staff has we we're that back, our lot of world and But recapitalization that things Solutions that it client wanted Solutions of there's to we because of have. and discuss saw That the to And we to opportunities also a about we year. our we're pharma to very offerings Obviously, product all wanted continue the potential this we lot project was happening happens. year. feeling we other changes services and not year that typical last seeing work to

want outlook. didn't we to So in our be too bullish

we looking about been way careful we're expecting. it we've we So how a growth at can as much things but just in were demand, see of

in conservative And relationships all, arising we in we've obviously the area. still had from all been we've that that opportunities pretty So front. in other see

Okay.

So or net-net, maybe growing the view business should 'XX of flattish growing, Solutions less than overall? in we Strategic a sort as but

very A growth. modest

from comes question next Juan our with of America. Avendano Bank And

that or expenses pass-throughs, including that on I XX-month a reimbursed trailing book-to-bill Colin, net was your mentioned believe you X.XX. basis

that believe much this than I of most correct, peers. your is that If is better CRO

by growing to your whether much? And this, so, been how pass-throughs at you all? including could not net related us share bookings, with or So if have

to model much old the Well, wanted levels basis make year. feel apples-to-apples we're comparison. everybody the our It's the is the fact. using growth growth appropriate reporting, know, give we for we that it's else But XXX in to is is sure the of actually, since you evaluating like We, more what as business.

I'm weigh your in conclusions. reporting you we've we're RFP with modeled you I seeing it marketplace volume. is allow what own just out to [indiscernible] the full have it information. What growth We helps think our to just out done potential. strong its draw

So high it's a single-digit growth. want where we after factors look we digit. And some going year all getting and of double we're to good to be actually into to deliver areas, in consider our

growth only mentioned our been that that Strategic we've earlier. the level the modest really think I Solutions in I area is

it. Got

basis, So bookings, explicitly, in you apples-to-apples pass-throughs including on seeing a on year-over-year net an basis? growth are

seeing number, be but have while we exact growth should, the year, This should yes. numbers, I in we those don't

magnitude, whereabouts? What

top the head. I of off have don't number my the

that you. give hesitate want So don't number because I you to I to mislead

And Jack with our next question from Barclays. comes Meehan

stick to Colin. with want I I XXX with you, because agree

I the year-over-year. to most at doesn't now that's obviously, think trend. look when only up business. way awards make the past one X% But appropriate we look at the were new a year, quarter And

changes? was I So what's just partnerships, in been there's been of terms the just maybe me going you the terms awards. And on more growth RFP to any in talk seems either of what hasn't level given wondering growth? It in end some the about that your surprising maybe terms you're seeing can just flow strategic of if or whether of market there of of new health

current mean, been changes a the about of lot I in we to Well, our situation. year. mentioned leadership adding I've of were lot going you that know, I've as augment a through

book while adding So of we our were new business. managing business current

for, key mid had to As that that the done prepared this protocol one for QX, revised. year. we -- team book-to-bill. targeted and unfortunate the looking just just we we're had things It's until be have ready a in getting the not of We now of we're had higher

we replace had really And pieces one shifted and of sure we to couldn't was team, the but that. that it dramatically. So a had -- make that we

and continue watch of that sort how we So out. manages that to keep

to that we deal clients. seeing And to We're the happening systems future business keeping the some for been year. on to previous for advantage these that to precedence eye obviously sustain. growth. absolute things that sure deliver last a new opportunities. foundation had and already at allow of We've off. QX. take key in winning things continue making our were are to build we deliver rate years, having we take can to to with the the our We're growth close because that I This We're we had seeing systems and able time kicking us in

us building So the I spent our focusing and up to on growth. are we've feel really time actually like a start to infrastructure lot of really a more next we get to rapid -- level allow

what all of follow-up the if Yes, did you of I'm just on one there year I that's if customers focus to side. there's Last talk fair. impacting how terms could any strategic winning been on time, your merger. been we're in of your curious any of Whether big year-end, this had that there's Or lot want a partnership or a about just was you're changes terms now in changes if business? that -- a awards more relationship? growth? that's

very We that look I to -- have explain tried I have we of book at this, diversified well very, mean a business.

did We to are still The maintain impact like find pharma. and work number last partners. XX-XX, they're absolutely And that with, that which diversity. still that They fine working we've expanded merger absolutely. from is -- us. an We got we year, the CROs of have biotech with our getting have are

to work very We closely them. with continue

get be. and them where of to initiatives We they to a with have need lot helped helped strategically their them

basis. will support awards lot work to We're initiatives. we them are and continue of to now, continue we -- their that just continued them, on We them we've continue with a happy performing and and regular see we in a new support to

from next with comes our question And Draper SunTrust. Sandy

as look And and have to or that should ramping prepared of think of than course trending? the I'm revenue growing When about we been covered I faster sort this the remarks, and jump think in indication an to in that the the think, is pointed function a book-to-bill, trends going X.X so accelerate? trying there pass-through a Colin, if think revenue Is to just ramped should revenue showing I and reimbursables but as the Is I growth and out that terms is how XXX going can numbers. of net in of the that's number you this sort to had up? that trying off up that -- I the pretty anything back net is to that with don't as how overall over revenue be considering, much have go year Or is at mean just it higher forward? there there? that just jump of, you what's apologize, impacts I we up call got out the I'm been substantially the net -- revenue that are I overall on.

we Well, been we've there's the really quite erratic and seeing from we're bit actually variance quite it's quarter-to-quarter, a are through plan noticed depends of the type of on I pass-through that element. because our had been studies was hard to coming and magnitude of from quite mentioned much quarter, quarter, traditional this less. substantial divergence there XXX had away And a number a book-to-bill. last and

it the think quarter -- Was I was was it? X.XX.

Yes.

reimbursables So X.XX quarter. modest a it of actually quite was was amount -- this so it

of lot quite variance. had it a So

and patterns us X called think I annual year the I've look out on saw basis. at allows smooth whole unusual an it any we think yet. I to because does that not it

-- So we've variances. on we been way we'll know looking certainly that causes taking pretty it be I about view conservative pretty pass-throughs, forward, and our the be think we'll some

at we've in at awards component component to the guidance revenue assumed, the on we're perspective pass-through a are depend that, expecting least from and and from pass-through awards service come Sandy, all of to see point XXXX, the flat of that through in percentage will And total the to will stay what it said, to Colin this relationship basically total. the those that as But XXXX. what

Okay.

at reimbursables a not total And so say I revenue, you on revenue. -- number, it of I a percentage net do you when are as percentage, the that look when

XX%. that way about the it? at look Is you that's So guys

correct. That's correct. That's

from Out Crédit comes next question Erin Suisse. Wright with

in side you about is there? should investment the of we Solutions the all is seasonality investment And Data what How of progression Can incremental quarterly in the business? there? Symphony? that remind asset, on to else us be related data Or the that thinking the

are progression, following that the part once for really the analysis pattern clients QX their years. budgets And up out-of-service through more easing in all what to Firstly, timely ramping get we can do latter the this now utilizing offerings and and saw quarter-to-quarter manner, the starts end of instead the for of team it much have repeat we why the offering, new year. hope consistency waiting is the always to an help looking support towards more QX we're where looking of to a are end-of-year by again, that's year. And of that

example, that also due So we're from the the available team in year improvement no where a But is the year. that, QX, we've and obviously that, noticed start that's of to good last partly seeing full for being from distractions.

off progress to see getting get good we're -- a So pleased to going is that to early start.

data. many And investments, that on annually, obviously there price some seeing data buying are many, part many, investments contracts we and escalation regarding So the our Yes, we're have biggest asset the data -- is expense the piece in with can that to of we're partnerships We're from renewed service business. business. that and the other to clients offerings. offering. combined trying international a arrangements our also with benefit parties minimize allow so actually our of do to mainly looking And we expand our that and

there. we us So like ways progression. and -- organizations good also we're use that types mix given has of other data and feel taking out are a of your... quarterly But expanding we the looking of us and helps so Most at position smoothing client -- that tangential our

what half consistent the that, with of would saw year. third I and start agree quarter back the that Yes. is and the where you highlighted. Erin. get It's Those this you to fourth quarter with be see ramp the

I hiring business, the opportunity to. the then Okay, front? on associated as Great. you government agency Can as got that on it. on you alluded and And well spending elaborate the guess, that

Sure.

us completely and work, that government organized to are more we For so We But components took recently we've been had many contractor. And X, business primary it. for the [indiscernible] really our government just we're wanting everything ready actually volume. in get a validated Xcellerate of years, for we've primary to been Clinical for to are actually that it pushed of already contractors lot example. kind getting

that So having with deal we're actually QX. to in getting finalized

want So you maybe just Mike, some details. if go to through

the been, we've business, for least historically larger just Yes, PRA at a subcontractor.

we as to So position we're appropriately, be and to accounting do CAS-compliant around a contractor, because be appropriately, alluded ourself a pull not make these trying systems as we can up last set thing -- driven the get mainly awards sure be Colin get to sure is we had to we making proposals it's to, prime have the the through. to have the position resources in want come in

we're So investment where investment majority out is. first EPS expect be ready be we is of position that should initial the it as why will on our why a upfront. of the first of making and year, midpoint quarter. as bearing it The the a of in That's pointed be I is to But our half the these spend in that awards the we through. come majority then in good the

question Windley And David our Jefferies. comes with next from

half comp would would wanted that going in have on for am growth. growth in been -- the it have half cadence in fourth for did I in in thought grow first year Is half? So in and I How in the first XXXX. Can comments a your second you growth that And back Solutions is guess. what fourth would the quarter? higher your or Solutions getting my the I that those clarify right much quarter that have revenue, comps much into Strategic first -- of some continue I of a then not Strategic focus XXXX? to fairly only Solutions easy at was I'm easy the half and that? the light modest that kind you you against Strategic so, of

I whole lot this switch The a kind effect end the do see now We it to projected seeing mentioned modest the year, of the countries. lot much we on Solutions, they a we've forward-looking this a -- for didn't growth chosen towards growth. just have we've but many factors. as to we're were material year, year, that in And lower No. Strategic were of cost started but the hires a that seeing within of

is as approach from there there [indiscernible] election Firstly, be big obviously, pharma we could issues -- year. pricing arising

later that is the potential could that, going comps and -- the mean we because Solutions going we're be we've part work second to to although continue the on see we -- thing be expand year. are still to in lower, the there. added -- the is And as maybe the where was a look So is infrastructure I the worry Strategic business. of it's

We a dispersed lot a situation. vacancies. seeing We've got outstanding is pickup. But demand are geographical of a quite that

that previously, shifting when Yes. call I the we about see to we And of the after distribution. Dave, talked the some Strategic when Solutions QX in started was think geographic

did So the half have back of more in did revenue it year 'XX earlier. than growth the

half first whole a at would more flattish Strategic bit see of Colin's total. quarter, this for in particular, growth little first or for the you growth. the When year So in year Solutions, least, the about that's talking

Understood. Right.

second So of be half does you 'XX? Strategic in actually that mean Solutions down are the to expecting

flat. relatively say No. I'd

for growth what XXXX? then Data embedded guidance in And assumption Okay. your Solutions for is

digits. double low It's

is It digits? double low

Yes.

Yes.

interesting. Quite question, conceptually. last then more And

think I been the better, bookings about seeing question that is expected range your quarters in characterize asked that or say couple opportunities? rate your for in little in have earlier slipped. to against few win bit fourth that and you slipping? bookings kind seeing your this a gross things break had I that enough that And but How is -- those dollars a be inability not would gross RFPs RFP some win you a the a you rate Would ago you're growth of of the you think quarter of Juan higher would years. talked

has are high. winning than very our more Our we dragged mentioned it's into are with to Strategic you, But flat. clients always, And think real opportunities these strong of it work in and we've difficult you're we growth. last Solutions win got been the rate down issue the new chance we win been with. has us or obviously for breaking obviously categorize so -- for pretty as into And that as the obviously, big much rate the that clients, has -- really year opportunities -- there's when

Our growth been very very, solid. has in registration product

the been to and and continuing product so do registration rate that, good win we to excellent, work typical growth. really we're And see continue has for

it's overall of been impacting year, a times and has number awards. I are modest that made a that clear growth Solution So quite showing this new thought really the Strategic and business lagging

comes next our Citi. question And from Donnelly with Patrick

has and the or of on Can forward out side? on the increase be think you trend. shifting between case large on-time the to biotechs focus maybe ago, Maybe faster split versus quarter biotech with been the booking to Does there? just around. called shift just little move it to exposure And couple pharma trend a internal you either it out the the to biotech a have that starts, talk around pharma, I continues was I about continue things biotech that last think XX-XX, towards historic quarters the been

that did Well, moving think design that on things it mean, I split biotech. need and FDA the we're I biotech mean, with have faster. dealing protocol really been business does. you and team And But still development our because is one that acceptance, Obviously, I approval. you're focusing finding of still was

things can that cause happen can alterations. So

So -- many, and business. that that. really does we it a within of many we've happens, that utilize side And continued that strength sure been we a more strength are make faster. actually move of us on the for look many, to to But finding to focus delays. at biotech years, core the obviously, cause to we lot of working innovative that It's continue continue when can

a but just in out market, the current the maybe cost the seeing of side, the on M&A in how then attractive assets the you active pipeline. tend know expensive What terms little are bit be pipeline? there? to is And Okay. of on running I assets

There's are always quite -- on. Things always We things always looking. of we're now. lots going just expensive

tuck-in So quite to sort obviously, large last on a a a pass proceed we've of interesting been things. had caution. late-stage we certainly see of year, a with lot And focusing lot We've really things. up to got of on we But opportunities.

a everything Just with Solutions we leadership. we And needed we just We in -- to worked saw leadership sure really we're great if we already hard it that to to making didn't our in on opportunity looking focus we at time to really and place dovetail Data anything really getting and -- business. infrastructure nicely, the our we're like really anything buy when that strong view saw just distract team but in building focus done there's because importance. getting before in on of major

should versus that in in How the XXXX? think we priority repurchasing about

kept investors opportunity -- did some to anything recession, take of powder happening repurchasing, in We we happens our event year. marketplace the of last obviously dry the if listened actually something situation. advantage The that us the we whether into we've to that in move allows

So that powder. dry we wanted

We -- offering continue some and growing our clients. to ways of needs our to enhance explore elevated the of meet

more get And and -- to for our platforms, the and done we we there, some we've becomes focusing in get expand approvals. actually on we're cheaper much to hybrid but quicker in continue of obviously see and ways mobile using technology new before way mainstream, we time continue it long things a success trials to can that look

with UBS. Our next comes from question Dan Brennan

going What Can an the can key these they're the as the then the little going them expected review what well are investments, you on I guess And like XXX to that to what Colin, hires enable evidence some you net new the growth. I your bookings around have? but and more key through you of all, the just and hires? color on evidence to kind would infrastructure first maybe investments that not are improve mean management impact? a ones? these early impact question, provide having they're are infrastructure be

lot had. when summer XXXX, all be we us. to went do to board we with the our of -- end so obviously KKR, see was mentioned cash the they a because was 'XX to of of our every rebuilding period of it'll where work anticipating that Sure. at but mean, the started it gets employee of of we November way a in we had process end so noncompetes left we really and that on vested people it I'd in because that We down mention a Well, out, I -- lot company and experience that were been across X-year warmed. able the options the got that KKR that to that that there's the long had through to XXXX. We've happen with had

retain lot going next stage to the sure seeing that well. of people were difference, so a mean, we got I the help huge And to we're talent drive us obviously, that where We've we've could chose we to as augmented. make that

divisions. augmented we've base our in hires new many So current with

with added lots very look even senior Solutions, help of drive choice really you lot business we of if new look help to and So forward and Strategic couple bringing executives new of at that to that experience a a to in and at connections take getting it take really using to These them time real these opportunity of and forecast opportunities bit business. executives modest help a growth. little see drive We typically types lead of long a in we But explore want there, take senior time. may new closed. to new that

hires operations. We've functions, within a executives. our On We've including revamped added leaders product the certain importantly, key added We've our new completely more within added the group, of we've SG&A many number new partners key to across But general registrations, various other added IT product registration overhaul side, of we've areas areas. within even and areas. organization.

lot by for a adding future existing ready really where strengthened updating talent our really needed of and to we've areas growth. So we get

and feeling us couple of stronger are growth. days we mentioning our with -- systems next some by So much allowing that essential key that in a we've I'd really were implemented position also that for

some even coming the solid about left of opportunity development I on had able all here. teams to competitors additions being the see and are who really business on board the yes, because hire had. to we've feel top progressed they We've So

just We bonding. feel our position. had ago, we felt we few and that very company a strong sales weeks we leadership together, had whole where and meeting was everybody So like overall, annual the

All of the coming were divisions together.

with the interrelationships the different of we Health. are the of offerings. Symphony coming all number from about teams. had We between people And So all of a along talking they substantial interspersed

to has went what to the a PRA type and culture. different offer. I we're first long of of of So real a think make And with get realizing magnitude way a different scale that feeling any business they them of it into the

we're So for very, came feeling meeting XXXX. a positive, optimistic, out drive lot seeing and very of overall, that we of very

lot your Great. And the then What like the business your full-service grow you there issues registration have product Solutions, maybe just registration maybe service like been, in just to, as of 'XX? own as to on it or alluded Solutions just and then a product full offering. Strategic did issues. looks a follow-up, related Strategic And staffing

was what's in market I about how growing And some at? and dynamics situation? us out overall hoping that give So maybe you pricing characterize market, competitive the would of zoom the color kind you just could

it's geographies. and becoming We of change, We've that. was these continued, you businesses. obviously has a -- don't that the flavor down has pointed trend on staff the last publish of a but I Strategic to I've actually break out that been just number the hiring growth. noticed been in that the been been all of all in observing what's we're that that that shifting, and clients and of a And was mean giving I then of year, just retained the not the different been going areas. caused switching saw the we've seeing the changing it that flattened lot of -- it -- obviously, Solutions,

we're areas. still supporting our low-cost So

-- do maybe Mike, you looking it's of as well? So kind add to forward, want

will XX-K Dan, disclosures all be right that this filing our we'll in after And segment call Yes. have our there.

able the what year-over-year. the grew So research see and to what be segment Clinical Solutions you'll Data segment grew

one of I Mike. how you the competitive it, the last of pricing? for overall that? characterize is kind And terms -- Or would sorry, the dynamics Solutions Strategic getting Got more competitive of of just environment in kind then kind -- in

to that augment our some the lot Solutions. to of because about able RPS remember that our really it's can very tools always, what one cases. at how a is as registration mean, that's large -- the product was was dynamic in Strategic we've a in Also off looking we -- pricing with the of that started whole and We've and systems leaders affect things been of utilize and And productivity, that we're in we're I and developed base. we our doing was business.

it when to was our So large from. significant business, of is acquired very grow which that, base portion a we a

we're why year, in for so we're of for which going others, lot projections modest as changes, we've the more affected is the when we're And we're out in probably growth. actually through these -- been looking a our

next question our with Jones Sachs. comes Robert Goldman And from

sure a know were I a I it missing understand, that lack of answer, basis, maybe played peers. expecting. of from in of versus little your what Colin, way And on RFPs make just like the I large sounds to less so lower a is this If a the hearing a I'm of the out probably you've kind think coming than out what that correctly, competitively commented business quarter? I've Is but cancellation top wins your and a from people portion as the bookings heard about on want replacement of on bit, to from the one your large XXX on new you right clients

amendments the everything expectation get with one came got some done of work through. wasn't had that ready following substantial client still it that because protocol their -- and particular for we circumstances some these to of unfortunate just get to do quarter, it the you've ready the dusted. results a But an In Yes. earmark to and indication, and it was teams was

make we been it the So -- that long-term work obviously the that very resources sure we've to want ensure these but -- actually to, keep get was well-qualified we difference. we we working make things a just unexpected, to available a that been to we have been with, was sure because these client we're long-term couldn't obviously, very, trial. that proceed. that them get It and them conduct it that is they a trying to of one it's personnel that big we need And actually could

to of with makes than of No, client Mike. revenue. larger Colin, XX% stick that again makes that you just guess that no I the mentioned, makes sort one ahead, customers, -- No, go sense. more up

in still within year? the rank your you're changed customers to curious, year the or around XQ that maybe as is ballpark that XXXX? coming it is last same I change top were more enough think, the top Or share of order still we guess guys, think X.X% the with? the the as I'm just has revenue. and You probably I that importantly, of about quarter to over last represented kind that, largest nice expected is client working as same client far And

that's I on that XX%. would the X.X%, are of say correct that range you

And -- within think top continue same, in has on a it's I think we client is top been exact. it think -- X. but the X.X% rest of to the fluctuation our to still of the I see terms I be

through their kind people a out studies in basis. So how depending on of quarter-to-quarter moving and working we're on

showing And further will any at to Shannon this I'm any for time. I Colin call over further not now turn questions the remarks.

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