PRA Health Sciences (PRAH)

Chris Gaenzle Chief Administrative Officer
Colin Shannon Chairman, CEO & President
Michael Bonello EVP, CFO & Corporate Secretary
Juan Avendano Bank of America Merrill Lynch
Stephen Baxter Wolfe Research
Robert Jones Goldman Sachs Group
Elizabeth Anderson Evercore
Patrick Donnelly Citigroup
Erin Wright Crédit Suisse
Daniel Brennan UBS Investment Bank
Donald Hooker KeyBanc
David Windley Jefferies
Sandy Draper SunTrust
John Kreger William Blair & Company
Call transcript
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Ladies and gentlemen, thank you for standing by and welcome to the PRA Health Sciences First Quarter 2020 Earnings Release Conference Call. At this time, all participants lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to conference like speaker to now Mr. today, would hand over the your I Administrative Officer. Chief Gaenzle, Chris Thank you. Please ahead go sir.

Chris Gaenzle

XXXX Colin Good we opening morning, and discuss Health questions. of our PRA for us Mike will for teleconference. and thank Financial results, you be Sciences for Bonello, our quarterly first available Officer, Executive financial our statements Chief Shannon, joining Chief the earnings Officer; Today, will quarter our following

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

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

factors may that we Our note in forward-looking update this obligation to discuss we with no statements. on Please be any filings will time-to-time risk call that financial SEC. assume measures measures, investors the updated complete from our financial providing a Certain We measures. helps is and are financial understanding more how these helpful results our management views financial gain of and non-GAAP with believe consistent results. our

to most supplement, GAAP GAAP Investor comparable investor the measures portion the measure, presented financial release non-GAAP in available our is with Relations these the in in website. and of accordance reconciliation earnings A included of and calculated press

Colin. to call to like now I'd the over turn Colin?

Colin Shannon

financial covering you morning our for Thank first joining the and Good conference thank you call results. quarter Chris.

all our want like team who staff results quarter, especially management support I'd of workforce. invaluable their also thank and I the COVID-XX manage our also front for helping of discussing our team Their in crisis assisting or efforts to financial to to were up the begin volunteered during I called knowledge and support our a number staff Before either pandemic. line. for was the thank their

thank a there. So, big you

our crisis solutions. as and -- COVID as were to teams departments one month and our receiving after working got with do asked achievement ago, innovative some instance, days day a one the activated in brought and geographies synergy This to fantastic The we we activated site. study, team just and PRA, together total enrolled led amazing patients. clients achievements, eligible team a sites In we was since and this we protocol across supported truly about a four client's first in XX Yesterday was protocol, the our unison. XXX countries had X,XXX our with we a

about that we more be As you're for of get mobile years would the ahead heavy X. ago, styles, virtual We when Parallel it health three acquired invested need curve. we had in a anticipated we increasing an and aware, platform to learning wanted

the had We few the have have last trials now XX continuously platform, the and optimized refined and over in technology. years,

It was during first enrolling we site about to in interventional celebrating, failure. great registrational, trial truly Recently, direct-to-patient virtual patients drug industry's heart hear pandemic. started clients the with the a

aware, Platform you're Health solution. to Mobile create is [indiscernible] utilize to great, our As and we conducting look the a trials

to critical patient novel all We and their the safety work medications states ensure oversight to necessary providing provide patients. help to to do of and want to competing work the still continue

visits. the ongoing the patients XX way, our the of for and Virtual in document XX conduct need to technology their CFR for Health responsibility which that a without Mobile an and of oversight Platform be rapidly patient is weight, compliant, We Study sites have module created implemented support light Part a continuity, offer audit care on can investigators to enabling study safety site study virtual the maintain and compliant and called ensure

way time with we that into company with Care to a have and our biotechs, work small a we connected engage client January. continue as acquired gained eventually we as devices, well division we to Intel platform, out and a in on Intel. to We large mobile company portfolios approval health strategic When both interested solution we acquired clients. needed small and find Innovations, at deal in to our conversations already deploy this called spun announced this with numerous

The to monitoring facilitate remote patients. XXX,XXX platform platform. to our clinical trials is disease in-home remote our PRA and We Health reach expand hospitals, which by from to providers to Harmony monitoring. deployed have networks, deployed management patient in has patient direct and healthcare a been monitoring routinely It platform, patient engaging healthcare in proprietary patient, over peers purely and allows by and

For COVID-XX for in-home provide remote using connected monitoring, to allows devices. those hospital monitoring patient diagnostic providers services

app COVID-XX for platform allows to in Our healthcare Harmony call monitor apps patients symptoms. Health to remote our COVID-XX with the was monitoring COVID-XX home app was to they symptoms use on centralized and nursing related patient monitoring decisions the developed the center one The patients first deployed. and help of

largest deployed ability allow our have to to to to app some We employees the monitor symptoms. for retailers of the world's COVID support

COVID up establish XX,XXX also The will have to to orders COVID-XX to US work symptom and we app next To-date, the people systems. focused government of to via over the monitor enrolled COVID response, and to have have agencies US as to well monitoring We status employees, to outside healthcare their return-to-work models employers app help be on deployed manage a safe deployment of return their monitoring. module XX,XXX. as

and incorporates unique, is it bring includes Our own device but patient, key. direct Innovations platform, it our app-based a with connected that system our via the of proprietary via integrates capabilities pro-library EDC -- Care mobile platform Symphony device your health not encryption Health to own in only and

and stay-at-home by our authorities. been started on note the issued most very worldwide, have the The under the closed with impact offices in the of latter quarter strong We country-specific pandemic first a part working quarter. of orders

is been work we have to our effectively. so remotely, most to workforce able Firstly, to continue able operate of

to US technology. here had abroad. We effective the we through and our lockdowns were our and began impact on March, operations closures the use and closures, During platform, lockdowns remote our experience mobile able mitigate monitoring site to for of site the and significant health in both

a pending decisions From over times business amount quarter X had we perspective, the last first carried volume. new delayed of RFP weeks the XXXX March, in and normal approximately But, the of decisions. record of a few were

be confident economy up We decisions were building. are that will strong we and momentum we as starts made the again, continue with the will

year-over-year, approximately $XX million of income million adjusted was quarter Revenues share adjusted net for net $XXX an was the X% first increase per $X.XX. and diluted which income represents approximately was

reimbursement of continues revenue the Our with representing diversified client be quarter, approximately net than representing million base book new including to million bill more X.XX. of clients have a of book one XX% five client net bill $XXX to new X.XX. business our to business revenue, top for well revenue of revenue. excluding reimbursement on awards would we awards, of reported our representing $XXX of a with We And XX% reported net

our meetings the orders priorities impacted metrics began business particularly to with and our decision new sequential $X.X finishing stay-at-home X% bid-defense increase basis, by of study on of backlog place. Position approximately in were as latter year-over-year, awards business pandemic, awards billion at a quarter postponed, of in when end development awards X% being quarter new resulted backlog with put the quarter first and were business in first March. slow in at Our an

during first Data Solutions this quarter. by pandemic Our segment the impacted was slightly

ahead of we months, were the target. two For first

However, and in March the decisions business as the were work pandemic customers' needs. was to due deferred of impacted, impact the

point of segment exposed I'd recurring COVID-XX license the revenue. that is to like impact Data proportion the the out Solutions of to high to due pandemic less the

by still due the to customers. events re-prioritization many in-person of of some the industry is discretionary there meetings disruption However, lack and the of and cancellation meetings, spend

to In Research segment, the in the we credit propositions, sources segment. terms data underlying of the and continue with integration count to Clinical trends, adding head enhancing new adding invest

is how surrounding We that our certainty do COVID-XX pandemic. the likely prudent unfold, uncertainty guidance the we financial the the will pandemic more until believe of impact all our QX results. there full-year trough, XXXX impact With difficult is will it believe to this the to estimate to of is do it but extremely be withdraw

for We of planned second million, schedule and million earnings $XXX expect XXXX. between our revenue $X.XX. achieve have per and work quarter $XXX between adjusted the will $X.XX We carefully share anticipate and we diluted

like Mike, that will provide once world to XXXX continued additional entire I'd also through PRA like is details staff our to times. challenging these in get everyone for the Sciences later pandemic. thank the about to In this their second quarter and thank during clients call. I'd global our again commitment Health helping our closing, guidance,

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

Michael Bonello

and Colin, good you Thank morning everyone.

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

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

negatively our first quarter Foreign currency exchange impacted million. by $X approximately the and rates COVID-XX pandemic revenue

$XX.X Solutions The while reported of Clinical respectively. the million revenue million increases X% $XXX.X of quarter Data of Research segment X% segment and for reported the revenue

our biotechnology companies Data from to all XX% quarter, of and companies, previous companies. XX% revenue with and midsized in we quarters. small XX% are companies. derived pharmaceutical the Solutions segment pharmaceutical concentration from biotechnology and metrics revenue, from reported in large These we service what During other line exclude our large from reimbursement XX%

Solutions costs rates were first Data The we continues costs offset costs direct of in XXXX. current $XXX.X and million, staff $XXX.X impact from in we by as Research and million increase future of Total currency be driven rates. foreign quarter needs, increased $X.X in million current labor for the in our in segment, in was in see business fluctuations Clinical compared on by to add cost direct and we support to The assets increases as favorable increase renewal a direct data segment, data exchange to increased as the data our more add costs contracts. quarter

the the The was slight Selling, quarter rates of the were staff. to a XXXX in as our favorable and stock-based increased decrease percentage first for Direct general XX.X% XX.X% expenses utilization revenue direct increased of and of first XXXX, revenue in compensation of quarter first costs foreign XX.X% related exchange to XXXX. $XXX in a expense. compared XX.X% of expenses of increase quarter is SG&A were revenue revenue XXXX. by percentage for first costs, of of The to administrative of in or the quarter as million compared driven

in share income, of to of quarter first share operating XXXX. share net certain correspond X.X% we items excludes diluted pandemic, from which first in changes per compared net decreased line net quarter in adjusted period-to-period, Adjusted decreased do net diluted XXXX. guidance $X.XX with were not results in were per ranges share of the the and XXXX, million provided to and the our quarter to X.X% to the whose Adjusted Both per $X.XX per income February. fluctuation impacted first $XX.X income in adjusted in COVID-XX income by

operations in flow by of was XXXX, XXXX. driven improvement by an days quarter to improvement million quarter outstanding. operations first compared result in by working provided operating million cash sales of the the an Cash our The capital, $XX.X in provided cash first was the primarily in of of $XX in increase

first compared sales outstanding were the was at to compared March $XX.X quarter XXXX. XX, of million XXXX to March days expenditures million days days $XX.X XX, Capital XXXX. net in at Our XX XX

during expenditures capital in expansion investment making continues technology are reflect we and increase the our slight information, quarter infrastructure. of the the in to The

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

million position position face cash We $XXX to borrowing economic capacity, throughout current believe us the well we continue of challenging our of may XXXX. weather our along the conditions to that remainder with

credit covenant we facility compliance our with expect covenants. to compliance with the and maintain We are included requirements in currently those our in

management have we in reduction reliance a discretionary strategies. situation, of the the non-essential initiated of non-essential In hires, These cost merit, annual light management delay deferral our of of spend. third party current proactive also the the include in contractors, on our

until cash have debt delaying eliminating implemented and repayments, also including We notice. proactive voluntary initiatives, expenditures capital non-essential further conservation

exposure our our Regarding of of concentration, US XX% be expenses revenue naturally expenses, in and euro excluding our denominated our XX% and currency were revenue to reimbursement and continues hedged.

in to have revenue movements We GBP. continue our as in to in while less of are approximately the denominated than is GBP exposure expenses our X% denominated of GBP X%

uncertainty full-year the surrounding call, Colin As impact in due operations, the the issued earlier is of results its pandemic company previously XXXX guidance. the COVID-XX our withdrawing referenced on to the of

XXXX. the guidance quarter We of are, however, second for providing

estimating per per and $X.XX and income of million $X.XX. adjusted $X.XX We're and GAAP diluted share net revenues $XXX $X.XX between share between $XXX between diluted million. and net income

our Our of start awards revenue agreed new studies that portfolio in guidance assumes continues the and upon budgets. current that as anticipated as outlined

In workforce the second though quarter impact utilized guidance fully quarter. addition, the they be of our may our during reflects even in place, keeping not

rationale our Our to ensure once staff operations for was keeping intact full have that workforce business we available, resume.

rate XXX decision impact we approximately expect to margins basis February, with effective be roughly Consistent We XX to XXX by we this points basis in anticipate by XXX points. issued adjusted roughly our that income and XX%. basis tax the to margins impact annual will basis gross points points guidance

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

should assumes a other a our It GBP XX, that foreign All and noted Euro March XXXX. currency as be exchange of are of X.XX. rates guidance rate rate X.XX

prepared take our are concludes may open line. the remarks, Operator, your you now questions. happy That and to we


[Operator Bank Instructions] Avendano question comes with first Our America. from Juan of

Your line open. is now

Juan Avendano

tourists thank the Hi, the specific, really but not clinical to movies. take CRO tracking taking and seems closures and and have just questions. go two. the teams not cruise but movie analysts because is site My of trial my all to theaters management as re-openings vacations people are first for pertains rush doesn't reopening, PRA whole may it of started evaluate delays, approach main it It has that ships I industry. the will percentage extent back mean watch CRO or like question you reopen, to may to when

with will relate even about be patients I'm how adherence, sites when when -- curious reopen, medical So, fully trials. you to compliant clinical the

pandemic. you what I metrics that share also sites in can question my manage this is, you implement is initiatives or leakage had reopened also can variable patient And on site, this, in an mean situation. have given behavior for as and So, this patient remained this to important open with during us tools whole

Colin Shannon

went I detail. in sorry, I'm great through

the and of whole we Our us system site help to virtual allow with to trials. that study patients the support, [indiscernible] on where prepared their get remotely manage continuation

we by have doing. clients that's actually a So, that's That's one of one the aspect. -- -- both been looking banded aspect latter already access we're about our varies so availability. people but number latter, assuming depending the or to by know up been as -- as been of and by hearing taken there's the -- mentioned been on numbers pharma, biopharma country biotechs access I region the difference sites. between telephone presence. a at we're the physical We're it country, which, far XX% between to somewhere seeing by XX% Obviously, and

it where we going. seeing that's are So,

their enable we needs are stratified our revenue work, our to sorts The together to ways and to were on. us we be the how with -- schedules plan working trials. provide build of conduct guidance we activities clients the how our a we We utilize we quarter's model very able solid do. understand with going the achieve to we of actually when despite this looking what And to are work needed we're to is, and looking prepared add studies targets get are what effectively clients' hard work obviously We we'll up all all to quarter. reason I'll at over and to all to

good feel pretty guidance. So, much, we about giving so you the good obviously know circumstances quarter, pretty at the looking a we

that hope your So, question. I covered

Juan Avendano

bearing that as resilient than may has PRA. what Okay. during grow an quarter, little is And How is, my solutions FSP remind guide may you or a much specific represents? the follow-up not it's better any of and FSP and to your business is Got was Can revenue not mode expected? FSP of it. second in us percentage how the quarter or and total how whether be to the revenue strategic did pandemic

Michael Bonello

separately first much tell at last see not we quarter But, pandemic that we're it Juan, year, because too research the that you of pace part grew in of over quarter -- over an expecting break don't segment. Yes. will I the first of the that's a nice clinical the out QX for and as to QX. of impact a result

Juan Avendano

you. Thank


you. Thank

Our with next question Baxter Wolfe comes from Research. Stephen

open. now Your line is

Stephen Baxter

Hi, thanks.

questions. some the follow-up on to bit QX wanted Just of a little

So, much appreciate how on all of side you're detail, the doing the technology things.

heard still there. others certain I inaccessible, sites. for sites up access when about be you'd to and is of not to put and remote you have some some to comes of you sort are that have percentage something monitoring it We around if that fully percentages just whatever quantify running, talk able was kind wondering physical us which

I it QX year-over-year that in Thanks. And then, I then have quarter, for like are upon those trying throughs; the were expect first from that and to where before better confirmed ask been And to is them are if pass we the about to they something budgets the the wondering or by seemed that mentioned budgets that dynamics last, proceeding growth guess for understand expected? be agreed rate? outbreak sort to guidance top the have those of around upon the customers lot budgets, going might a a than QX the might to Just hold follow-up agreed line higher you you enabling expected about in just intensified?

Colin Shannon

difficult. best can. and very to we're We've just that there to data and as trying closely where get nobody makes these contact obviously, very our sites get as we if to tracking up best obviously there's sites it's we're obviously some Thank coming are obviously it you. access, Yes it difficult saying --

mentioned we've we as achieving monitoring options, -- got necessary we've that. use available. the been and successful We've quite we apply utilize we remote So, all in but do and technology tools

still best There's currently to protect primary achieve client studies. working can to that budgets looking lots and for complete how we and them. we're at we're for Now, foremost, period, safety. making the during endpoints most our of We're though. We're first patient partial of study units obviously sure looking our

on areas. have really And and we're a core up and attack, we the most into the real important so, drawn groups that focus we various needs, schedule of stratifying so bonded can

So obviously, that we sort get obviously, going, moving. the can't get months. next be our it's access we're obviously over we're best some trying steadfast at few communication deferred, -- restrictions start motion, this to critical overall lifted some of seeing can and hopefully things but a good stage of things we can some can we so Otherwise, the been

Michael Bonello

that number. Home it in will that QX pass-through, I and be revenue with as place certainly had we line anticipated And in saw but in Yes. relates that the was we obviously slightly have to the quarter was down. pass-through into number right are percentages than coming with orders higher our for quarter, it for down travel the QX, with but anticipating that included being the obviously travel now the brought We're State in that QX

versus say look sequentially, We're to XX% of it XX% last year. come revenue. good you service be and down between down a as somewhere expecting QX I'd anticipating at chunk and So, it of I'm

Stephen Baxter


Okay, thank you.


you. Thank

next Goldman Jones from with Robert Sachs. Our comes question

open. now is line Your

Robert Jones

of I taking mentioned out. bookings. two Colin, I on normal the guess X RFPs for the seeing you just Thanks pushed amount times think Great. questions.

win follow-up comments I longer just is think second would pushed one there between trended you you how something or in if your a timing guess that and could I awarded quarter issue, be your Thanks will just that's could be, relative changed in was it quarter of that work and Anything share this And such out near-term environment? rate the that this -- peers? about then, curious So, if much. quarter? just the any to be guess so most

Colin Shannon

quite going them subsequently, on. but of awards others done where forward a getting There's focused have of done, deferred firstly yes. work Well, working they bit that with come through them these other some and our doesn't bit. little we're for have have you. And Thank that Yes. mean COVID these with been pivoting that clients we they're some actually studies, a not on certainly had

was been typically again So, rate very again win very, very, this that normal we steady -- win expect very was steady it was has and quarter. -- would it and our the rate

down. we the lots an close normal the and start to rather It February And that get share -- of amount that knew close a that close. So, and fair want substantial happy if just of to on than quarter our studies very we'd it soft that we We a was end time. like there's was close, this do our a of didn't pushing they're wait.

because study -- can. get they We actually phoned as more moving fast the to want get line at biotechs, we're as lot a in start-up, to eager they the

-- period signing So quarter. the that we're well April sorry, -- as of also month that in our first

So what quarter RFP another was again the started -- and volume. strong again off

for So, hybrid of were we're lot looking and seeing them new our Trials Virtual a software. a including studies solutions, of lot

-- departments with and active very, we're up very our busy work and the So, keeping volume. are

Robert Jones

you. Thank Great.


Thank you.

next comes with from Anderson Our Evercore. question Elizabeth

line open. Your now is

Elizabeth Anderson

titrating Thanks growth thinking to -- balance or are versus see How the obviously it, Hi. question, the -- efforts you you sort your worse. about about you of the sort situation. and guys if that? cuts sort How sort think of gets your mentioned upcoming you how the of better of taking One do situation guys. question cost current for do

Colin Shannon

our moment, year part we've forward want move the latter workforce, to was force of with good us, the to best of and our our staff to the supported I and thanked continue want as retain clients are trials better, full the the our that lot time, and us obviously we've At teams done move. we our alter, keeping to they may and and have We to of and best action. things things done same it a so is wave because they period manage see it. going of our know the soon take different pandemic if we A that have involved well. happy, a course prepared this we're were to Obviously, new things start move they're that retaining think and really change to maintain if -- glad there them of a as and in

with a really our control. of lot So, it is

we we've it we've that's a What take until some and next we containable, more of for of months we normality. very forward why issued there, to it see looked back the things see some at guidance couple time quarter of and evidence level will when get one

Elizabeth Anderson

And on -- above Okay. any Symphony, -- of like sort cost color and it the That's being helpful. provide then additional new you off. mentioned could there? was renewals Were quarter sort of sales beginning sort of you or any or tapering particular in then of of sort sales just there or plan, areas

Colin Shannon

work more with -- there they've we done, the that down, million there was that -- that just no the they was has pharma the current need they actually actually had was data workforce until do deferred, It can and the data really, needs a work capture -- and utilize. there few Yes. companies was defer obviously of got closing so and been to dollars -- really to getting slippage that

number it was just small contracts. of So, a

well. well internal be a was really be that So, -- our nice for going as budgets it going was quarter to was to really tracking actually it

build So we -- up strong it team. good we're well, because continue disappointing were a to but activity tracking and really still was bit there seeing

a coming been new Our has general CVs hiring of through. We've flood going actually well. significant had in

advantage meet positioned well growing demands. take that, continue our to to of So, our and we're hiring

Elizabeth Anderson


like a So that it's push collapse a sounds out like sort versus in of just more demand?

Colin Shannon

that I have mean, not back. you may Potentially. been never urgency sometimes an come know that may

XXX%. mislead you in is want but to think for things, we know these So, we don't never anyway. [indiscernible] I

Elizabeth Anderson

got it. Okay, much. you Thank very

Colin Shannon

welcome. You're


our Thank question you. Patrick Citi. from comes next And with Donnelly

line now is Your open.

Patrick Donnelly

less one Colin, conversations Great. seen biotech tone this in Have you Thanks little the period smaller is biotechs. during there the maybe where with the clients maybe of you guys. uncertainty, side, a change on particularly any funding in accessible. for just

big shifting you terms a the increase from been like is I in conservative little guys appetite new tone there. presence the know to for a You feel more your it's spend. of access

the So, have was gone? just how conversations wondering

Colin Shannon

-- calls numerous in stages, time to well-funded, this for biotechs funding in prerequisite before place an they mentioned time. RFP. we not with with The a long are I've we work latter work that have even and a we harder companies the is respond

a clients we're been volume from lot biotech great we're across-the-board, our seeing and very of Our getting been has amount very volume -- very, strong high. getting a volume. We've RFP

I've I so, read with earlier have the anything seen smaller others looking. biotech not of And may not but where we've have parts, -- change. got phase some seen any issues some in I the -- we're

Patrick Donnelly

Okay. And maybe just to follow-up.

ones give little feeling more I that increased it given been think have you XQ those visibility of that backlog your better are expected carried Has was the probably better over that than over conversations base? converting customer pending you you allowed there? on have the most decisions typically it's pending had, Bob's of than confident versus into of kind kind Do question a guidance to the over. carried or guys you standard do, amount with you the than decisions

Colin Shannon

of is a latter the close lot really end to hard lot is moving. one, -- mean, studies all the push of really going at drive to of -- part really the can't when no year. Yes. exactly and impact et pressure the started of getting a a no was things hard Obviously I you get why -- cetera, the there which quarter

hold; trials everything knew putting on that, everybody they was. So, were

the we client closely though. were with We we went the just busy needed exceedingly working to all through So, things do. were we and -- been we've

we've maybe some was of of of way physical sort last, and lot -- finding change the a the doing bid-defenses Although, All tunnel. this of so at will seems bid-defenses, actually more trials. that maybe there at and we virtual It was doing bid-defenses, are virtual future. been not may the of we're investments, the things of accelerated light maybe is done up been technology would there the we've have things of the clinical making, speed anticipating end and pandemic, and more with the use getting happen, to be

Patrick Donnelly

thanks helpful, That's guys.


you. Thank

with Our comes Erin Credit Wright question Suisse. next from

line is now open. Your

Erin Wright

Great. Solutions follow-up a Thanks. the have on Data business. I

performance in broadly, or of of but you there. you thinking I'm it's this in how it, further do just recurring should anticipate we recurring nature, Just, more nature sort the what about business in is business mentioned curious. environment. be majority I across of percentage that and Thanks. volatility of kind vast know, that the

Michael Bonello

some in baked have we Erin, Yes. volatility.

As different that generate uses to Obviously, the is we're the of with trying currently recurring in new data have. said, that we statements, data license out majority his leads Colin different prepared always assets, of revenue. there and

from built We because year little guidance, when a our happened target our then first we we revenue what than in and in, when to built in full the guided had I less quarter. what of obviously, of we issued have -- have guess bit we we would

So, range clients. we're bring Colin on that the QX based that there make discussions we with revenue down having in said, to confident we sure good as we're had the the pretty But, a did guidance. for

Erin Wright

potentially think and through. is orders great. do I the Okay, does that then that, you, you enrollment kind And extended of an mean, flow with when opportunity or change lines, time that on opportunity, for essentially

Thanks. sponsors. I think already with these you're having discussions

Michael Bonello

our extension offset obviously it It particular something back really hasn't we these Obviously, you're change that if with the extension, a we've through on change else. a line time view impact are in and trying could and typical line order, rev order come it's that impact. what change with have Those it orders we've We are about discussions be been just would that an rec, deal are in The have be that looking something quarter-to-quarter with for end work as discussions and recapture. having administratively, all discussions to to But, at historically been quarter-to-quarter. depends might we clients. could that time change we But, could kind that's any them an cancellations with discussions through. it gone performing, of having clients. and orders it

Erin Wright

you. thank Okay,


Thank you.

with Our comes next from question Brennan Dan UBS.

open.. now is line Your

Daniel Brennan

and questions. one the Thanks one I'll on for ask on margins. bookings question

rate would areas therapeutic possibly seem your as base kind of me, or but maybe you asked, you've wouldn't although the have lower there rates, you're know led end the focus from with been me others of a growth, the as approach, your we same of what if customer or of because we So, got versus you closure there's far thus bookings seeing seen to excuse that questions -- issues anything that didn't close quarter? unique the just mind, peers from I peers on have bookings about to think your seem is couple book-to-bills of or to that and you to level

Colin Shannon

else looked the we're reports, the is when or not I know. actually, in competing XXX, compare we our all middle better. I at everybody if don't I've and

X.X to and think range sorry. book-to-bill, X.X X.XX. the I between is we have I'm

So what's your point, here?

Daniel Brennan

sorry, XXX was on wondering basis I'm I

Colin Shannon

to is certainly, clinics, you growth I'm giving people because drives can't their really an But business. Oh, over get of get one want I be that year. to because unsure driving I the sorry. been phase major volunteer actually that. you nobody Best and fine. How what distraction of anymore has understanding up, else trying what's the to can't actually and give obviously business. you X% it mean transparent, to coming seem do if produce causes would we've that's impact the don't like, our a know be so work. quarter managed me mean, obviously to people

is So trials then, on that what doing we're site. COVID doing some we're

heavily one very Other that, we've than been nicely. the doing that's most been it's impacted. very, So,

Daniel Brennan

kind Maybe question, and on decrementals. of QX, Okay. thinking a kind kind of of how and costs Mike we're about

it? Thank like maybe I that we the cutting do a cuts, of operating you. decrementals on -- thinking are did basis, cuts, aggregate implied level know you time non-GAAP So, in color give an I of the think and How of cuts, balancing earnings. about cost know QX a any about cost in from cost in margins of you're the kind provide and you cost terms return you're that? for of any the I what margin you amount, kind of you've decremental how to given growth? can and comments magnitude at prepared or So, same being gave ensuring terms Did dollar number qualitative miss

Michael Bonello

basis on an margin. impact sequential QX expect points to basis did I on we an of Yes. to XXX came look points to if be XX margins there XXX absolute on referenced adjusted into points that but didn't basis, basis at our a give margin, points that XXX gross amount, EBITDA roughly dollar I basis where you and

So, run know drop that got in. can to you've you obviously, you -- I miles, your

Daniel Brennan

cost online. you're of terms in as And how a this I at your much how obviously cutting Thanks. but on do focus back drags kind front? prepared take ability you're like that your thinking we the not that How question thoughts time come or for are too what this -- to -- the any maybe there's these trials guess, on about related about more so the if on protecting same that bottom-line, like think much on? persists to longer planning of, you impact ability, out,

Michael Bonello

are our have Like If QX. see based Yes. change, we've to guidance earlier, expect going Colin stated what pivot. prepared we things to to on we in

things time always managing at we're We'll say, structure necessarily we're return a sure we're what haven't we of be, don't in business. to you here possible as to making they're But, going as is lot and to So, we being going gone cost continue that. we the hey, think through and that if of know, look where tried take to efficient to spend on most costs, the out.

semblance will we a materialize, line would perspective, bottom a from costs and everyone change whatever we of able to maintain our of if don't figure workforce doesn't out and majority will we -- The know that what reason labor you some are to need we're expect. it make and cost, as revenue the sure, for if that to things do pivot

Daniel Brennan


you thank Okay, guys.


you. Thank

question Donald with Our next from comes Hooker KeyBanc.

now is line open.. Your

Donald Hooker

morning. Good Great.

it's cash? your sure clarify, sort am of that's just January. terms Care this it's acquisition though care in contribution small. cash impact virtual of companies to Is these is small? even in I growth flow of of a high burning there to is So, the Innovations your lot one going What But revenue, of this and

Michael Bonello

it's honestly -- not it, It's not tell I'll the that material burn very Yes. small, disclose it but quarter. even, is we're you did not cash it to and in going

Donald Hooker

most wanted but people -- that, that. good were just I'm I just assuming was clarify sure that hear. Okay. to to

seemed your to I that kind work if area. that contracting of love last excited contractor of guys business get investments Can some some business. Would big elaborate as about think there, you hear that prime love interesting. seems that was you your some whatnot. on you were is well? How sure or quarter trying to very opportunities government hear, not I'd in I delayed to Secondly, am

Michael Bonello

large did were get investment expand. right been now. we earnings and the It's on as the not status. to We making sub-contract said call, to want had prime this we -- work were very We year-end some into doing

make quarter incur So, position are comes to that we we did a we the compliant. were new to when costs we through, continue been that in the have -- during business sure this

We seen because on we have seen delays of RFPs come there and too have with pandemic. through, obviously what's the going some

we're from are encouraging that everything now, when those RFPs in is a in right that So, make a -- we're sure to for perspective. to right and with awarded that to continuing sector we're invest position prime spot, the

Donald Hooker

much. Okay. Thank very you


Jefferies. Our you. [Operator next Dave with from question Thank comes Windley Instructions]

open. now is line Your

David Windley

wanted earlier couple you record the Hi, saying to good hear my that questions. taking first RFP of around I a Colin, questions. reframe a Thanks One in quarter. for I flows bookings. were morning.

competitors about of last encouraged flows seem that year. kind Some RFP they talking actually -- have kind been of of been -- the but stable talked with positively, have

RFPs you -- So, think some you is you biotech XXXX? that? in if ask what it attribute to and that I your growing correctly, interpreting would the of would pivot are at And made do all I'm related I to

Colin Shannon

board. happened. a But, have been lot what from lot seem a exactly there We more has to through That's coming biotech. across to

we waiting started time to of partners from long on coming of a up ago. signed lot and we our strategic recall, through bid had to you We a that one had that. If see been volume

because So, I'm patiently you've while, that about pleased for quite think -- the we've Dave, very past, a encouraging and in was that see... questions exciting asked to waiting been so I

David Windley

guilty I'm that. Yes. probably of

Colin Shannon

lot new [indiscernible] we've interactions, such and a of going clients of of and we're lot available, it's nice put a solution. -- bidding some that awards but direction. hybrid positive virtual tools some how through, technologies But, type new that component had a in lot new client nice of us and giving see of trial, to coming lot different our a good it's opportunities with work. on of have Obviously, the really some we We've finding

bit innovatively, seeing box, and to being out a we're and the more think thinking things So, it's nice clients much non-traditional. receptive doing more to

long So, continue. it's exciting an development, way, and it

David Windley

I question, another to the ask, into is acquisition. which segue good a That's around wanted

would capabilities, in to had, trial? of lot you to digital sightless maybe -- the with capabilities virtual end trial would this launched that prior to had were fully prior suggest over this nuances but acquisition, does probably some I'm -- a to type standing You specifically trial. you What glossing do the that enabled which virtual think and very to very afraid already a that house year to activity, -- I of the add, already J&J, up support you if seem I'm had

Colin Shannon

Dave. Thanks,

the and was it alluded fully it a virtual That is registrational first I that we're client name right. I of with trial -- which in there, like to You're the failure to was trial. the heart was study announced, absolutely but don't that state the put doing

that these every on we was devices. Innovations So, connected were always awarded, it connected while level restarted last was exciting. actually just number every patients, enrolling connected devices the always actually But, of things we of and some and an it's exciting in just so one with it that working Care of start, is been and we've component, weeks, trial had has but use done the device,

natural a in-house now full just that end-to-end the we seemed offering. it then fit have So,

technology. that propriety in-house think I puts us unique that offering completely So, that and available CRO is the in having

David Windley

technology commentary that to other medical electronic this? while competitor that source ability kind least your enhance to when records in able level to site can't be Is Is part access. platform? data a embedded capability pieces the one monitors of one get Okay. of tap And verification your around we're at heard from this that or is -- into the commentary topic, of one of of on access I've

Colin Shannon

ago, Actually, company a recall a called number bought you we of years Nextrials. if

straight that available, is through from we that Nextrials any source. records and so can working electronic have more information, unstructured has it availability. lack straight link, a records that bypassing We're comes And data. tool takes particularly to any finding source lot have health EDC, the the it it we of get that straight more to EHR detailed when lot a information, a been of though takes

the it with And and data collecting -- are e-source type, so, the by format. notes into AI some structured really that taken the some and unstructured get looking like to typically and where -- we've it convert using have doctor, all it tools augment things to we're been and being at look

a have yes, of and Nextrials, activity But we we lot are seeing got there.

if We HR -- enhance can are was great information looking straight from and forward to see way We've significantly. the getting a for we directly. that thought always that that

We will new standard. point a and continue come will the pursue there to where that, will that be

David Windley

question me, clarification. from Last Okay. and a

is how it if than degree can use kind trials What in like taking to probably that some of intact. decision. strategic maybe of that's out your relatively come seems is we or reaction what peers COVID you win and to position we approach keeping sounds us obligated business, different to say have completely think of, like and of I by Another thing that say saying -- I the that COVID we a demands that Can it a workforce impact strategic our a you this to much advantage help element hear is, seems billable you keeping little -- the the -- in is understand quickly? place client of what mean,

Colin Shannon

studies we've employees most to we've redundant, There's so how and It company's we of client here; are our always prefer when entry being fees, did place them. however, millions back and the the of that with zero behind them of need go feel the comments latter we stand of up felt And to sure and by that comes these done right, people all on when space being that. and one half doesn't got hoping and did There's a made VPs a in are our at staff to look -- asset. it giving said there's track. time important this entry of our year, a get we I couple make fees all is I'm piece [ph] to when look, decision. when

we that that because up to We our doing want and mouth believe way. be So, we want our in it's money is. and stand people where something we're put our to

David Windley

you. Got the appreciate it. answers. Thank I


Thank you.

comes question next Our SunTrust. with from Sandy Draper

Your line is now open.

Sandy Draper

follow-up very maybe obviously just on answered, and of asked question. Thanks lot a A that accounting quick much. questions last

In does terms of still are is paid get question? day -- of already point. you one the the out, sort first But at you are that's for accruing better actual when that bonus or then, a for the you're hoping deferral, new because -- expense that things sort that, are of

Michael Bonello

referring to were we Sandy, merit. Well

make to historically up we've to quarter just we cycle planned merit third bit whether April, in third to to an the maybe and how closer, what a that but it re-evaluate to was third did defer been, will get typical little our we or that of deferred quarter. So, pandemic a we it had of implemented pans obviously, that the have decision the evaluation defer in beginning as quarter we July. We make again. has or if move it on the the depending And we longer. We'll out,

Sandy Draper

Okay, great.

So I appreciate the misunderstood. clarification. I

can identified we don't where cost term back hey, it, in bring look about what this in, already think is the of like you're maybe thinking, there the for longer place. lot need you'd we've now, have to at now changed way Colin, doing -- in, when we or and taken I running you longer don't about both it. lot costs these savings. doing back maybe to way and Second, you a stuff differently, bring the opportunities has of do you're you're but it the are you're you business; put obviously, But, we It guys, term a areas sounds have for when things out

you starting Thanks. about maybe to longer-term other but there's to about talked definitely, that there start guess, structurally you're a that things about? lower doing You've are the that cost opportunities that think identify I

Colin Shannon

maybe of think more our networks, with over well we're Well they've people offices, able but mean, and be data. press coming and infrastructure, Sandy. and of and with a the I where huge work mean, I in first some bid have over manner was seeing to more everybody that's use savings virtual a yes, saving uptick the on change of of world, clients we home. defenses and global to to from that's quickly used do Thanks, all it saw of missing we all, lot trial been the drive now, faster, and to lot from clinical always We people were doable. of certainly of a I flying meet technology conduct are the obviously having that's the importance inexpensive area clinical there's obviously good a but one encouraging. help going about trials to

and having So, that. think that it's ways all see I starting about can getting the achieve and speed to performance while we're robust actually we that data,

going something lots change of encouraging that to better. may happen. that on, steps actually there's is lead where it's could this time wanted to whole and that charge the that It's think the I industry be things the we've do exciting always actually

Sandy Draper

Colin. Great, really appreciate the I comments


you. Thank

next with Our from question John comes Kreger William Blair.

now open. is line Your

John Kreger

-- for that might geographies, if this how up second any of into examples a seeing various Colin, could kind just out? half year Hey, you into regions the you how of translate I'm across look and recovery thanks opening for insight are play any easier operations much. in you? of looking your very good

Colin Shannon

better in access we've still higher got Asia things are seeing that that's where Yes. there We're up sites. opening to

So, see the that move start rest the the we sort get pandemic. I there, as towards a be -- starting and world, to of to movement of peak through there'll we're over the the of think

of hopeful different a -- that a number it's there's We working while, clients it's obviously going we're vaccine we're it's think be to I going this exciting. John are again and therapeutic, see we the it, use never to of making we're -- to what's or obviously that whether other But, up but happen. So, be cure get for know, -- virus. best on starts they COVID a great doing it going opportunities or if can when back more we help

again, forecast latter we're end happen when why really to carefully So, what's we to of that's being guess our anybody's go part trying of going And over really proper cautious, discipline the we're next the don't want months. for with the in year. the to approach year few to the it's

John Kreger

thanks. Understood, And just maybe same that follow-up point. on a

activation you Thanks. Is for about guessing, think January, of or got of sort be award in normal the getting sort you just are pre-crisis on If that in growth study? see less an maybe again a moving activations? of ahead non-COVID probably February you or towards of until second site you'd approaching How in quarter. with that we and sort course, I'm put you infections able sort that push hold are and type start-up to a

Colin Shannon

study really really, go. our get the year. us in We've prepare a and documentation streamlined over to We're the able and to of advance lot startup ready last

As the first that lot that I've as mentioned, momentum last in beginning much, the knew felt convert stronger saw we at of of infrastructure. really did we starting of our were We and into a things months. year. We great changes, year, the couple were much

of start very to ready wanting paperwork can we things that so good of to back, start I site for biotech are, So get a getting so -- awards possible. are our as the quickly no, pushing we really can feel where you quickly, as to of they about we us mentioned sort clients are as all when lot immediately and activations,

John Kreger

you. Thank Great.


CEO not any Colin at turn any Thank over showing would this I like you. I'm time. now further to back closing remarks. Shannon, questions the call to for

Colin Shannon

Well, everyone the in thank participating today. call for you

have to questions, We If thank free you. great day, feel please rest and a you have contact additional your us. hope you any of


participating. and conference Thank this Ladies call. gentlemen, concludes for today's you

disconnect. now may You