PRA Health Sciences (PRAH)

Chris Gaenzle Chief Administrative Officer and General Counsel
Colin Shannon Chairman, CEO & President
Mike Bonello EVP, CFO & Corporate Secretary
Sandy Draper Wedbush Securities
Patrick Donnelly Citi
Dave Windley Jefferies
Robert Jones Goldman Sachs
Juan Avendano Bank of America
John Kreger William Blair
Eric Coldwell Baird
Daniel Brennan UBS
Jack Bean Nephron Research
Call transcript
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Thank you for standing by and welcome to the PRA Health Sciences Second Quarter 2020 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Mr. Officer Counsel. Administrative Chief Gaenzle, and General Chris Thank you. go sir. ahead, Please

Chris Gaenzle

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

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

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

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

Shannon, earnings like results. Colin over how in website. I'd presented accordance Our financial we financial with non-GAAP update release most measures consistent and the risk of of Investor filings our to our we management these gain investor updated We SEC. our our measure views investors available be turn financial call Relations and are Certain on the Please in calculated and will the that financial providing time believe with Colin? the A and helpful non-GAAP results no is measures. comparable helps in in a time measures of reconciliation press discuss our assume complete this from now to supplement factors more forward-looking statements. to may measures portion call note financial understanding obligation that is GAAP to with CEO. included these the GAAP any to

Colin Shannon

May. revenues thank very this our and allowed for put and it adjusted to focus results. yet net height and sites, better demonstrated would able happen. deliver like with the $XXX us work of the has XX% we We joining an our by discuss pandemic, second to revised our were diluted thank is results on Good That this their employees to for teams of $X.XX. we're and approximately This At and ingenuity share provided either continues on clients forward quarter, studies efforts per million the estimate to and make our hold. to guidance studies move approximately that quarter to Thank income you, our report tenacity that of of our all closely second improve financial the plans or declined and quarter, were to in us morning weekly. XX% of able end the number our morning not partial and we you were full Chris. and easy by I

to We possible, of remote pandemic have allowed effective robust trials moving our fortunate the virtual on forward. global a where be to or health has ability monitoring work current and are to a has keep that to shift limiting in unique us the situation our effect some platform and studies

that the on XX% of beginning seeing number than access the the were the less to to to at second XX%. first we to continue dropped of restrictions during end end quarter XX% the of We has quarter. see between the and second and sites, restriction quarter, At site and quarter

the America improvement America Asia with improvement. and and much most showed North modest more Europe showing Latin

change that aware encouraging things While this are sign, is can we quickly. very an

research Including bill awards, clinical net We excluding therapeutic X.XX. on awards diversification we $X.X the of of a strategic see segment areas. reinvestment business, including strong million book solutions reported business a saw across the a book new activity New to revenue, to of business was representing net we bill quarter and of strength reimbursement billion net X.XX. continue I'm $XXX entire during pleased report new and revenue, across business to

end biotech. The However, finishing new of on net increase second studies, addition disease of the reimbursement with the backlog was XX% sequential new have by pandemic. at from and quarter our remainder of business in influenced at X% came excluding from $X.X awards resulted pharma our and higher billion XX in second midsized infectious while COVID-XX a which a level backlog business did year-over-year top of basis, quarter came our an the of the June. revenue approximately XX% pharma

remained and this include be strong diversified the RFP combat studies been have with to RFPs and respect pandemic. high to the to continues funnel quarter. sales area volumes Our therapeutic COVID-XX

to clients. of my continue decision end another second see record at of the making pending quarter, for And we decisions. the slightly level We had quarter slower

solid. level the the seen industry seen feel have and XXXX this clarity so we With half of of we very that the have RFP in first quarter, was far

five base second high with in like impact license with of the revenue. Solutions Revenue the representing to approximately of top due continues clients to that quarter. of Data exposed segment line our pandemic is XX% segment during client no than us remind in be proportion Solutions of everyone the clients the the Data expectations I'd to less during the recurring with more was well diversified, revenue representing to our Our revenue, quarter. our XX%

lack However, in-person by due to see spend customers. the discretionary events reprioritization of some the many we of the continue disruptions cancellation industry to and meetings, of

by research trends, to of segment we the adding terms enhancing to data positions, headcount this continue critical In invest in underlying new clinical and the with sources adding segment. integration

Mike diluted the means there financial between $X.XX although, We and revenue call. pandemic In guidance in our I'd who Health also year look Sciences per these call during is through this guidance, throughout full financials Bonello, times. get now hand to our the to $X.XX I pandemic. impact global between quarterly billion helping to like billion Financial like to Mike provide to would our around commitment thank again of the and world expect closing, the everyone later detail. PRA adjusted share $X.XX staff in XXXX who $X.XX. details to Chief earnings through Officer, will and our clients uncertainty continued I over some our anticipate would results. the more entire and thank XXXX additional for challenging around and their our onto the Moving like will

Mike Bonello

and Colin, you, good everyone. Thank morning

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

a $XXX.X pandemic the second and hours was the activities due to impact the to related patients was the second to the Colin saw and We enroll decrease in in million orders lack travel in decline reported previously, revenue sites attributable economy. stated XXXX. and million on driven of during a to us billable compared of of revenue our to for access stay-at-home the $XXX.X screen The investigator quarter As XXXX, for inability we had global by of COVID-XX quarter restrictions. of volume which quarter, and

During fluctuations. we quarter, the due of also million foreign had exchange impact unfavorable rate $X.X to currency an

quarter, and respectively. of the $XXX.X while of Solutions second the X% $XX.X segment of reported revenue increase decrease segment clinical reported of X%, revenue a research an For million, million, Data the

to benefits due as $XXX of of as our the an pandemic. quarter for favorable million $X.XX direct of in operating per segment increase as XXXX. Solutions biotechnology do space in small service increase increased Data costs million changes The impact XXXX, of by growth, Adjusted the costs decreased of excludes X% quarter quarter compared was add a of segment, in the as second I we in results XXXX, by rates. costs future primarily percentage as correspond the concentration and $X.X increase have large quarter data from net contracts, revenue During foreign as quarter to reported. decreased second to our direct Adjusted items to decrease as quarters, these were large share our all the clinical headcount certain costs whose of in labor to companies, XXXX, impact revenue began share the Data is our XXXX. as XXXX. companies, XX.X% the SG&A biotechnology from to expenses compared second an XX% and second added our see direct we well by additional by revenue of prior from million XX.X% in the revenue the in earlier, for income, current our from second salary Consistent XX.X% a staff increases not metrics costs and diluted revenue of what revenue were increased driven our and The XX.X% expenses $XXX.X second increase administrative in of in to to to with and the segment, adverse related the increase derived support exclude second reimbursement in and XXXX. fluctuation to driven as office XX.X% midsized was in quarter $XXX.X XXXX we of COVID-XX income continue Solutions which XX% with other XX.X% XXXX, on in noted second million, $X.XX from The share research current our the $XX.X Direct on needs net were business in are historically companies. Total pandemic assets well increase which have Selling, general quarter, in expand pharmaceutical percentage to companies, to XX% added due we million to costs primarily exchange when prior be the quarter was to operations. or fluctuations and in period offering March currency costs we period, the revenue per decrease XXXX. continues in per data to in of for in in direct support compared to of line to The compared quarter from driven quarter renewal our COVID-XX to revenue of pharmaceutical offset in rates

of As operations to to amounts million XXXX. XXXX to out quarter the XXXX. Cash better second million, pandemic cash prior second quarter Colin of was related impacted had the impact these for $XX primarily the for provided the noted of $XX.X were an used increase expenditures quarter of the Capital compared in operations earn was million by operating quarter $XX.X May. the guidance flow due million COVID-XX year XXXX we $XX.X in the by flows. in second revised were than compared were cash acquisition The of and earlier, second payment in on for provided cash

Our investment technology pandemic. the in that continue and mobile platform, to in information was our capital and prior of we the making particular to health are infrastructure expansion our reflect to expenditures the committed

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

of with hires, strategies. the we current capacity Consistent together with would I our approach to of challenging we face that a These our the on remainder the to over like delay covenants. confident and the and economic borrowing with proactive cash maintain compliance cost to second requirements are facility continue of discretionary We party $XXX quarter, are the non-essential spend. our credit that XXXX. including weather took we position reliance expect position contractors, non-essential in the third management currently management to may to in continue million conditions of employ us throughout we we covenant our in with note these reduction compliance the include

proactively also continue capital delaying by repayments voluntary and conserve expenditures further until We to debt non-essential notice. cash eliminating

XX% excluding of expenses, revenue were concentration, and while euro currency revenue denominated was dollars our reimbursement your and XX% hedged. of our exposure in Regarding expenses naturally U.S. our

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

extent referenced our in net Colin earlier, operations uncertain. $X.XX per providing on the share full per adjusted pandemic $X.XX the billion, diluted revenue $X.XX $X.XX income The diluted As XXXX and $X.XX between impact its and XXXX $X.XX. between GAAP and COVID-XX Company guidance of is and income share billion between net remains

Specifically, or assumptions and These the XXXX our as location business results of a the the guidance, the and Phase to duration half our our closures the specific they sites financial restrictions of outbreaks clinics, in could the length of in limited interruptions, such impact second used and of in travel pandemic, could slowdown business of XXXX. geographic uncertainties X activities, closure recruitment access result if impact in worldwide. scope

resulting will be remainder the year. However, used our on of anticipate annual approximately XX%. impact our business we COVID-XX efforts tax have on effective of best and pandemic the to for rate the the will have our that our We the estimate performance impact financial

may our estimated rate sequential or with effective there what estimate changes from we third issued if the Our analysis in regulatory growth quarter earnings expectations. this have interpretation of ensure also tax distribution providing changes differ pretax We're geographic in by our additional earnings if guidance are quarter from are or line guidance to agencies.

between And million XX, It estimating June earnings of $X.XX remarks. the to line. That share a $XXX All take effective rate should Operator, we open $X.XX. per assumes revenue of tax are other guidance our X.XX. share guidance, between XX%. $X.XX exchange to happy diluted share foreign our income our are diluted between noted be concludes be $XXX and GAAP your rate questions. earnings We are million GBP per a prepared expect and year we and Similar you of and adjusted per rate currency $X.XX rates now our full euro and XXXX. as may X.XX to


Thank with you. Wedbush [Operator question Securities. Instructions] Sandy from comes Your the Draper line first after

Sandy Draper

much when this if the thinking Mike, for sure cost is question. or the for I but maybe hiring. taking about and very I Thanks I'm not guess my Collin

going still hiring, that is harm level down having slower trying and but at want? the and people about get you're of of generally, are your type mentioned hiring the also an mostly planning you when to down up higher a cost on ability trying COVID. I'm you're SG&A how you're then of happening higher think I just You've delaying basis slowing some you're also expecting, basically on to and am one. but still of accommodated think that just their enabled people just to you're people COVID trying of hire hiring impact level Thanks. goods to that, adding to revenue as because do the costs as much

Colin Shannon

you're been we're we're on our Actually, revenue we our been -- but candidates in able finding we've been have really right getting Yes. has in the which that hire actually people. great focusing surprising, to generating pipeline, quite

department more Although, support people, legal to seeking out and some finding of functions particularly the our there that where needed in our and lot talent doing work acquisition we're augment, some some talent. is contract we're really like, we've of a just

costs of some this we're knows very, in are out, It's nobody to to happen we we got there in going what's trying at watching up going with many approach relevant plans come that while our but can we're we like us through So, -- quarter because the to particular. QX SG&A plays be very there's going we've closely, our experience some got least manage we because that provide good interesting place guidance to an get was why to see how but some through year, feel in and rest the decided unknowns. to so

Sandy Draper

second And not follow-up, helpful. question. a That's Great. really

side, starting Solutions guys, turnaround. has management to to but changes, seeing makes it things sure Data you COVID impact, are On the had an

update Just from Are on the Or to be wanted Thanks. on sales change management business still in made that just confident would that update great? you back an to feel building better an how returning and you that get up. and growth? that you

Colin Shannon

lot Yes, the added a well. business going actually news is of capability. We've

to whereby is that this systems free seeing pandemic on clients, not we data our level discretionary we're part out we help to felt and lot could seasonal back we pretty to made really of to for to feeling the the where lot we're we're strong. we still like to about some we of take business change and the opportunities we're in. because where, contact until of and there, us just opportunity. very about during pandemic of to very get some needed. to normality, but our some capabilities. want a good a we well. look good offer pandemic, good business in data the we one a try We that our September it's it's about onwards, the utilize offering going obviously, continue see thought During it out an we I from spend do some directions was clients of of But lumpiness it's It's there, and know of feel that whatever allows managing going during direction need the and We'd


And Donnelly your the from next Citi. question comes Patrick line of with

Patrick Donnelly

half. of the in guidance How XQ trends How curious, July? back you through want we think I Colin, guys kind coming conversations the enrollments have things see just are and kind the assuming recently? of pause the up. with then U.S.? second Did in been about Just how to you trend for the wave or here any Obviously, trends gave have customers?

Colin Shannon

doing Obviously, we're to to we for days. unexpected economy's have reopen we've and best it's contingency that got and speak. it. its through -- struggling kind these to And the plan and try the our seem we of as And plans take contingency plans around we

wait and of found how to what's mobile We is or up goal a space. got and don't teams kept obstacles but know good where the some carefully happen, some being to challenged using in that. health to whether ways some a we've availability mitigate find We accordingly. that whatever on plan We're help platform U.S. we the to and the get now obviously, of seeing, the our happen. in of some to of to effects some opening to handle going way. we've get ingenuity, really done. our or Our by to earlier just the were overcome the trying about things tenacity we done. persistent enable follow cannot on We it's make to need that figuring have And And I out visits how sure mentioned

wave a So, bit like, sort a get like in we, And on have QX. And thought we of very is come if is little we up moving obviously, it. as felt our view felt in directionally cadence we with we good some just second with see and idea. place we QX, we forward, QX up general should well, we we where but no were happening. there season for tougher because But it forward, delivered trepid-acious I starting, looking of a gave flu could the guidance, plan really we're

Patrick Donnelly

And then being the talked pushed is of about RFP last quarter out. think I kind times normal four you've

how wondering do we them the XQ -- of versus some of COVID a and trends trends companies towards Just back more in XQ front? those see beginning pivoting of lot trials, even wondering, come maybe on that the just those

Colin Shannon

come a through. again, here decisions We -- pipelines of are did did the there some saw lot actually have see that mentioned of, pending we I've year a some quarter, happen. number high again. and that's this lot repositioning of And pending still were We quarter there end of we cancellations a of really, -- of and of we sort at some that actually was the that decisions

RFP ahead. least I've So, sometimes for and we're close record a and a decisions. a steam just again decisions, pushing with number to mentioned walking because robot flow We're high. We're pandemic patiently go we're at were there not waiting full seeing that wanting our pending again, obviously of start stage. us getting this hard for decisions clients

in with right we're the we're which like So, solid setting and industry visibility direction, good we a things is phenomenon. are nicely feel that, out moving feeling


Windley And comes from of question Jefferies. line your Dave next the with

David Windley

just been highlight to quarter. morning. question. bookings bookings seems were Colin, good a of the percolating. your a like your somewhat Patrick's things Thanks but for -- question, taking number have this It you answered Hi,

last upped in of year. emphasis You've biotech the middle on your

first high the of the decisions this quarter. have pending You end outstanding at level of

What partnerships some in help be that could I contributions level to wondering or understand contributors? had us bookings that have the to productive. begun were record which the proportions You the I'm of think you if quarter. the to

Colin Shannon

we're a Dave, that sensing year that things understood mentioned on shift knew momentum. to solid that, into more you’ve much going I everybody tried we and that the in All we're footing the ensure

time of rebuilding management We our have spent a team. lot

on of together together components So PRA and pulling the And units focusing as the very of a different we're all beneficial. we're aligning one we're been the that's company, to them work and organization. our collaborate message, together all

well-diversified of for mix got quarter. client we’ve so, And mix the

And had slowed the work was lot and really more we good. put that anticipated one we government. So, slowed and the has a all feel We but the imagine from with that things been in that's the area have with down that down. everything happening, changes there, government, expected

levels a what we be for year that the to we to as So but future. now, got feel we've anticipating, starts ready for the -- of at, where you before we dry it next may so achieved, like and when even look get powder well lot

David Windley

get on us car to those need Or and to visit? what based understand, CRA’s that of good. an industry, to operational they guess, in cover to get get get to do even the openings enough and sites, sites a very about recruitment, they people, their into to site maybe a a Interesting, From kind I on or territory? are what patient your maybe on, site to of site ability, a regionally standpoint, to you focus can in could and plane folks a help your lot complete get extent

Colin Shannon

that just lot of concerned a to areas do go you've trained cetera access And, got to hard difficult takes when specialist you've and got because I got XX and you've the them have have there. a planning. say, But CRE they've how people. we've a people we broad therapeutic we're part and we mix it's of we the get number the While have protocol. appropriately got very in difficult it's as appropriately manage it's careful able to data we've planning change some how of to got really, And arrangements do to and any of got process et different and had close not outbreaks, over that's where planning very to Phase obviously, part difficulty as can And duties if unit. that that. of of site there's out there perform social so our it's volunteers work seeing Obviously, we distancing, this mentioned cetera. the that found and of things forward, is, because lot our still offices, get it. that areas if process, the et our were in to X the coming with the have is just capacity? the expected. capacity And But and staff managing to we looking actually still our through now we get one and do managing what I unit, that's a were of we're to Because we're It

so, that of health different focusing the our And the safety we're all just parts a our spent to and we're on of business obviously attention employees. lot and of


-- to you willing when so CRAs specific, to? need you finding that to be more they are Are are travel just

Colin Shannon

and be yes. Yes, accommodative. to We very tried generally,

-- lot families we're at sales. to and things, but accommodate and finding We the of of very we're at our are that understanding of a a able our home startup needs clients


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

Robert Jones

to about of Any portion the the of for some question. Just specifically? mentioned higher you're specifics shared backlog Collin, share about how you COVID. infectious I statistics you opportunity there? related some PRA this your of peers have of work level And revenue. COVID-related of for trials know more Thanks disease specifically thinking can

trial the to work? a how better you're get Just wanted about COVID of thinking sense

Colin Shannon

some vaccine as also got some on We've and substantial a but and a work, strong of pharma not doing therapeutic. post. on biotech studies. working We're mix clients some a and nice big few working between It's

of pandemic. not our hugely but a share weighted. through type lot of get got to We're still traditional business. So, paper some it's lot the obviously, like mixture, work on that And good COVID had seeing And clients a of are of work. there are a prioritizing good we've of we've help the a

So, time, sure is we're obviously, focusing and still a making well on concentrating but our in as to this on be we're of term, you the as in longer still well. what we're going time We're that, going be about helping short this Hopefully, feeling behind business. us building very sure to that, year's for term good new that but the yes, well. making be we're we'll book longer we're

Robert Jones

cure that are the acquired. Got just you on leveraging it. before I And know you innovations, technology

has clearly your evolved it this has in maybe if vision important? share take where more you it's curious, just helped remote since capabilities So in-house are world been and

Colin Shannon

Yes, I just was had mean, care vendor. what our worked platform and innovation, Clinical X when it

And and it with so, was natural a just actually very fit. them very, we've worked closely

with do it all to a was we dovetailed much. lot when with very, we mobile because a It great a circumstance X we but been pump platform addition was of just that health and acquisition very addition though in Clinical So, helped didn't platform, in nicely made with because very there's acquisition compliant et detail, run mobile been all HEPA, actually the small has had, offerings. what our it of And EHR a app. appropriate to COVID-XX for Part on There a connect health a the XX, RPM over XX solutions. platform cetera. had We were integration. experience EMEA, end years five it's GMP, working fully And end health FDA, mobile we've is lot of and CFR standards and have we

time a I and leave it's nice the just added feel been So, very and And the really to right we've part that nice for a position we think offerings. pandemic.


line Juan Avendano question from of of And your with next comes Bank America. the

Juan Avendano

back the So, I bookings. just need go to gross

And so, time booking excluding decline, wins had when third it pass-throughs the just several that of CRO business peers happens in your those the for actually the grew since of quarter you XXXX. quarter, no first

some how or we And can activities was should I'm had expect and to slowdowns Or you perhaps, mean, much this completely whether sales driven how, I about forward? continue And of growth that not were price by these about going you mentioned, accounts? is what growth accounts So, talk bookings here? curious this? in the new in in reprioritizations? business How sustainable

Colin Shannon

where year, in was as strategic of headcounts were lot cost Asia, on growth new low solutions to changes the the moving Europe. where, mentioned there Latin countries I No, going accounts a Eastern last America, and even

We've saw seen solutions And business of part and again strategic strategic a pace, great solutions solution very, investments did at year. and very make more was legislation some product activity modest added in this We so, we strategic was while growth. we our acquisitions. as growing as expected, leadership that the up year pick a last

what's offerings continue round our and to opportunities. helped us we so, out And expand these

So people is I taking that small a basically single what's only strategic revenue revenue we growth we with just of basically got seeing amount we with We're the we'll were -- because, growth months to understanding not helped we replacing the and why are solutions of and the every to backlog actually XX where our -- the that's are really growth, think back drive account. anticipating. quarter

So, the and to solutions can how But X% to yet, growth, book-to-bill the for X.XX between that no. we're which anywhere was structuring. be strategic said, X% we actually X.XX,

had, to growth make And registration that And has accelerating product understand. as and so, pick really of up, business very I now growth strategic strongly. again. I'm we've sure part solutions people been overall The good seeing the seeing we're actually felt we an trying are

we and RFP lot of we're flow. seeing very pipeline. feel good a So, pleased in about We're it seeing the opportunities of lots

of can stand get feel if we go relationship and the decisions to we challenges about made, pretty So good us. and -- ahead we where the

Juan Avendano

basis down quarter-over-quarter. went that XXX is second in Thank only peers your points yours XX second I quarter, by for the conversions, my points than question by went sequentially some you. of but backlog guess basis down more

So what backlog little a better than expected? did hold conversion you do bit to

Mike Bonello

obviously to falling project, on we a backlog. Colin they're orders sure conversion And I business in growth. showing backlog. referenced, how that's put every strategic to they understand in what dependent backlog new think that But we We as through. know because comment talked competitor's go to our where going the past, month is taking on can month, conservative what and going into just we for have move solutions that's I we've all I don't have approach make by some through is

So, quicker rest that's he the of was there indicate a trying than as burn to business. the

it revised So, rate thought stabilize in frankly, based in And where I back our us May. think line right burn. came helps in was the projections that that burn provided quite I that we on


line John Kreger William from And your Blair. comes the question next of with

John Kreger

about other about give in making the the activity happening can solutions? to of strategic little Thanks us versus sense on lower bit you how very regions And just done? this much. can a at that Colin, a U.S. point, Is you're the regions? more much you expand repositioning comments cost is

Colin Shannon

shift was and end midway of I the said through We trickled we the there think quite a their it by long was was bit of Yes, countries. felt the were of it year, of down shift how saw and because I to this but less thought saw work really was we or through kind it going to clients out little year, last that year. way longer. halfway as that cost repositioning but that we the year, don't we know the last, end over lot the was And happening, more low towards actually a of the it --

part work, so, is And the feel I like placing now. throughout their adding on and that we're concentrating no they're way like we're now other where world

else. U.S. So, it's much we as hiring in as anywhere are the

a helping as of well sort opportunity. the that offerings new as solution it's they're mix client good from some getting strategic side. back to again obviously and seeing obviously that's new we're And So,

is like are. business feel where we and positioned that nicely to we advantage that position of So, take

John Kreger

Great, still product you the it's late thanks. And say would traditional? more if registration? traditional more kind kind is, work about of of of growth FSP Or and is pretty RFP tilted you between balanced think towards it

Colin Shannon

because period changes decisions clients come before about striking towards strategic what down, -- leadership we of top the Because work really point difficult. typically very from house. very staff And, out the is The senior probably registration. sale. that lot a and in product tilted very right still it's client where and make like deals RFP in type traditional spite discussions a to time. solution of it It's keep want it's decision. of have it's of done they balances it types the your everything stuff a gets last is a they work a outsourcing, These And consultative changing to lot some an way to the so mind behalf, with long something

in closely the clients we we that work of we've journey. helped field a with them lot so, And got experience as and through

John Kreger

can new to then you one, point? about constrained to enrollment this still where on? these of -- point that pretty Or how you to normalcy? that should startup as patient getting view start Are is return Great, the do feel the and some we degree turn activity of awards thanks. some And of last one ability at kind to being

Colin Shannon

it's rigorously through revenue been from But up not started, not I whole we're Yes, getting of started, to if cetera the running. as we we just not we we're et that's And and and start take if not we activities. our -- rather contract all do with we until things indications when we're get the I'd actually seeing delays. And, cancellation, we to startup client We look to how at mean, tickets And that's it actually hiring department our well. really backlog. we've anything even of get that see when out. actually got our wants of help don't any if went getting forecast cancellations study

bottlenecks with and Just contract gets they've the up when sites industry getting home. obviously from is all got one running. working difficult And of the staff in more legal it

it's so been driving challenging, yes, hard. of we've definitely a but and moving things got we're And lot

that changes in slow we fast the say of happens research it future. a I'm we're more done studies have doing can and way do And very, very, and faster. COVID future I'd and clinical rate. benefits do will are the change in some stream done in long very these And the the at it, mind things accelerating that that line a been And becomes all things And it term fast everybody's way when great we've we fast. very that it's these that got hoping that


from Coldwell line comes next the question of And with Eric your Baird.

Eric Coldwell

much. very Thanks Hi.

quick think. a couple Just of I ones,

COVID COVID companies of Firstly, related today that of we from all was percentage. XXX as but bookings? far from or -- extract could think perhaps for peers, perhaps material so was you percent remarks, I one some your earlier as of but a not I the hoping that the trials given XXX not as were you whether a it's

Colin Shannon

we don't back later. to one. now. to you speak I we'll to it just have have on when your that on it, that Maybe I actually get number get

Eric Coldwell

if for of plays that talked you us little today then everything you've starting you revenue year? in can and just again mentioned think And the gross quarter. investments in data gross the perhaps impact world? a talked et Pre-COVID, over quarters just bit And given the give fourth the then and September dynamics kind Are you that is in in next about expecting and uncertainty? you little out you're we here, rain the the certainly quarter. and follow-up momentum Or given on really up for going a seasonality expecting geographies, bit cetera typically know this curious about right. quarter segment out? sense strength of making new data should this numbers year plays on margin COVID new same what and that of couple typically on where I'm perks data business. a not next the the businesses the in sure I fourth maybe All solutions, had margin I'm on an you

Colin Shannon

Yes, Eric.

to into We that our have factor guidance, tried obviously.

the out. talking. I how, certainly We was as sure that not But is to where say, we see for strong in still would modest remainder to the As everything last single-digit compared more, opposed entirely it going of to play segment say growth it's were some do year. said, we're we year I'd

full we we I year low-double-digit earlier, growth think were high-single-digit, we when said maybe there. guidance, hoping for give our

expectation that last respect slightly. we tempered we've on indicated to as call. With margins, the So,

got QX point data could it. expected where employed had margin a a has because down new we We come slightly asset that sell we to we

much line moderate So be and to cost I QX. the big was historically, that caveat fourth that with as it margins what have straight the and can obviously, would generate in do whole that you to because coming Because generate? expect through type drop obviously is. seen in were I of guess revenue when through, revenue more the quarter how able business we of


And your Daniel line of next question the Brennan comes with from UBS.

Daniel Brennan

in you just backlog that climb this of mix Is just the rate, year. just Can past this there burn us COVID the today? wondering, as year? this reflect I'm you it. obviously beyond on of severe Mike, and out beyond On kind here rate characterize like, and of to purpose? you modeling way year wondering, that guys To how your wondering for disruption as a burn you start I'm trending the kind think remind that's our look about I'm a of business, like just

Mike Bonello

the we those the year years, into the if pandemic you for it'll pretty hope to maybe instance. rates I was recall. ever that don't a would you get beginning quickly. We to of half that towards haven't of flattening rate out throwing because with burn end expectation was see that XXXX, on infectious the back our of expect that a have but disease guidance that ran back out 'XX, and out that study burn those really any pretty did and start large provided uptick and in the of saw 'XX this a We slight

we my up, obviously, this on to in where a we of but trend that from year, So, the will it half mix, hope is back start depend QX. really, see working

earlier, XX to Colin as see in burn Because can what And we indicated less going growth strong we it'll maybe if or backlog be a continue we around the I XX.X% that kind see to Hopefully, that in that just start some of right increase. revenue strategic will have QX, range. we're months uptick. think of rate solutions obviously, XX% you're in only obviously, and than burn in, to slightly in system. slight rate

that burning quickly. pretty we're So

to my that rate. continues So grow, that will as help burn

Daniel Brennan

for year I maybe thing action how of numbers specific on CROs qualitatively, about be be, incremental think not look there more of going is year, wondering, business? out taken giving look the kind to a out ability in obviously get yourself year of generate call the the numbers we hiring again, or But a and but recovery we we any much next on your the that done of that and kind sense as kind next Colin as margins out? how versus mentioned of guys to this might As stronger normalizes revenues, towards to way investing without level hiring and to then, that kind your nice done, this, and should And I'm just have a give peers. you

Colin Shannon

Jack go major why to us people let or be the in [ph], actually because well our plans. it's was change over we the been I mean, reason mean, didn't salaries people we able from pandemic. went to cut or without staff to no the we people. I had go and follow that's allowed And industry, our hiding ahead that I backlog And needed

We mouth our our always said show we -- continue the we is. hit by us our We've allowed to asset, important that put with it’s followed make are most to we through where that, And that time people. money our right grow. positions, the not we on and

And winning, means need the we're of able add we're we so, it new people that and them. work to to that all attract

all mentioned appropriately hire whatever that through. So that studies get we earlier what completed. bonus getting are up so new of is the we done and picking we're we're work we're feel have and walking as startups, able to We've we nicely a positioned that do in the on work want

activity. of lots there's So,

the We for poised are future. foreseeable

And positioned. good about and feel we're dynamics very industry where so, we

Mike Bonello

past. I targeting would in we Dan, the probably still that say about same kind of gross margin have that And we're that growth talked

at, through of kind would move we So that that's the forward. to we point range, trying as looking and what XX organization in be basis push

Daniel Brennan

I'm would terms can your see that I'm vaccine are highlight, back get some characterize are, mix but you your in position capabilities? be, Anything final probably of and I Eric not stuff, vaccines how capabilities capability? in you COVID, just exposure they want going to the How I and to one familiar from one or just I your If there. with know it, should well

Colin Shannon

able our get their to We labs, work patients of but all of get franchise, that's our mean, in samples the I central just that mean have were there. for a done obviously disease don't to getting patients bioanalytical lot that. infectious like dependents and access a much we’ve a lab got clients and have I strong and pretty to where we

in us, approach. good just of fortunately, on for are move not COVID-XX disease that it's years using I our, have think and using knowledge certainly, say, run to what our be the but strong amount an innovative trials the we But work we've or has the work. in infectious and organization to So, something of able is, would people using we said actually we And platform in area. of infectious differentiation factors, the we're that done a I over our be one disease to help certainly help obviously can that lot a mobile health and to and expertise


Wolfe [Operator of Instructions] And your with Baxter next the question Stephen Research. line comes from

Stephen Baxter

the question. for Thanks Hi.

either to basis half, That's So it's question in first I the or the kind is, year. versus come the a see last at I line, on good ask gross for to of half of bit either half the second look if year. the bookings little net of through the down about slowed expectations back wanted quarter. bookings the your the for in

what So to as second are to And of you. growth? expecting Thank this you bookings into half occur? you to year, to that move return happen needs for the

Colin Shannon

good RFP like work still this very mentioned for flow and that's I'd our lead the on seeing there. obviously earlier we're out indicator that

some continue bookings. but good So, in we going are a it's obviously to to we're seeing strength proportion we're predict win, in feeling we're hard very And good to that. what optimistic that position very


Research. your comes from Nephron line of And Jack question with Bean next the

Jack Bean

follow-ups. morning, guys. of Good Thanks. Couple

on year-over-year concentrated by midsized like First, down seems the was -- is in based It revenue was my the disclosures quarter there the of down pharma, lot the it math. a that just there. wondering, if you XX% you're pressure Mike on or somewhere talked about ballpark. something if I the I about it's but know seeing was what in way definitional it, don't customer reporting in you're class? talk that --

Colin Shannon

Yes, I was we're grounded, think year-over-year, sure just down roughly make to revenue X%.

Jack Bean

XX% from going added X%. sales to I Okay, of

double maybe check that. So

relative relative at for in is look the shape half growth The you're to want it the product overall. up question, year And, the as on registration? follow strategic curve those. solutions possible rates second of the between the just to Is you within I assuming out just research and call clinical second the guidance of

Mike Bonello

that, break can't just out and of clinical we Jack, Yes, that one as research unfortunately part the do we don't segment that's separately.

So, up. solutions of seeing commented starting What I and we've earlier to business. than think, that we strategic in pick the obviously, been kind growing CRO business the Collin in have we're commented about business the we're see that faster how core or And that talked on. strategic past solutions

but picking second wouldn't of I say to the is that is fast, going it the half solution growing year. be So, in strategic up as


questions. Shannon, for audio there we call And closing to no the the At turn remarks. are Colin over this back time, CEO further will

Colin Shannon

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

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


you. conference your thank for And call. This you participation. today's concludes Thank

You disconnect. may now