PRA Health Sciences (PRAH) 7 Nov 202020 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the PRA Health Sciences Third Quarter 2020 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Mr. President Counsel. Vice Executive Gaenzle, and General Chris Please go ahead.

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

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

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

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

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

for this results. Thank joining Good to our third you financial thank you, morning quarter discuss us morning, and Chris.

with net financial of we COVID-XX very stronger pandemic revenue results. difficult move with $XXX our and than from pressure guidance circumstances that revenues quarter significantly am sites, our were the I our closely were to and full share am and and thank third to pleased third for provided work. August. the the we and of we the studies Last that X% or deliver forward hold. million world earnings quarter, studies and Given today, Working approximately number our of diluted the the hard income clients like very to We in of able by continued That the adjusted quarter. appreciative on in reported were would our their XX% the per of of estimated end I of our and declined very $X.XX. focus I efforts approximately employees, either all partial the them

be fortunate to to allowed monitoring structural ability keep able a We our to client work to basis more trial that mobile on platform, shift to health moving and us has utilize possible, forward. have been our where remote our studies improving

as the more to We approximately positioned paradigm see continued to model. mobile our believe of clinical that an with integrating increase flexible research currently health components platform. studies we are shift We using the number delivery XX a in are studies to well continues

in continue the By quarter, of sites quarter. the the less see to of were than sites during We to improved end third restricted XX% form. access some

arise. change While our work are very we to to well to the to ensure any address that might we are with and is quarter aware improvement that from encouraging, continue the positioned quarter changes third clients we the second that quickly, can things

new net $XXX a X% a net approximately book-to-bill increase excluding of of quarter on basis. to We million be I New an am gross and reimbursement net activity or business quarter another report awards and pleased continues third book-to-bill of on strong, both million a and to quarter. revenue, $XXX XXXX of reimbursement we of the the approximately authorizations business net of XX% increase reported reported awards, of sequential business for record new revenue, of X.XX X.XX. versus representing a Including basis and

across our entire We concentration infectious included to different was quarter Strategic with obviously slightly our therapeutic the which strength segment, studies, Clinical authorizations our are quarter, by Research of see authorizations of across business Solutions influenced COVID-XX new areas. number pandemic. second disease including the the continue new a a Consistent diversified and higher third

COVID-XX studies new net quarter, For total the of authorizations. X% represented third approximately

backlog our The addition quarters, with end with and coming business at not our broadly in new our prior experience backlog of finishing material pharma quarter pharma XX% this during resulted our mix on line approximately business coming basis, $X.X X% in of approximately from net biotech. and has of we and business did from with been a the revenue, and increase top quarters of The In remainder net of net midsized client new quarter. consistent reimbursement awards, quarter any billion third in sequential XX at in addition cancellations excluding the new with September. COVID-XX-related year-over-year an XX% previous

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

solid. feel of seeing through remains of the quarter With so we seen RFP outlook activity far the level this and quarter, the third XXXX very industry are we we have

We clients, see quarter. the the have slightly at level on pending of of the and high our decision-making a of we continue end decisions to to slower continue part

to client than well quarter. our with the our with of Our diversified, client base during revenue five XX% more clients approximately continues top XX% no representing revenue, be representing of

expectations. perform Solutions line to our segment continues with in Data Our

quarter. from see did we pandemic some during However, the the impact

of of by disruption we reprioritization of pandemic Data Although of exposed the discretionary due to high the some less the revenue, couple is Solutions spend segment to impact to the license proportion our did see a due the recurring customers.

their discretionary ensure in spend fourth optimize closely this quarter. monitoring they with situation clients closely are our We and working the to

XXXX our expectations We have remainder updated for the of accordingly.

guidance. XXXX our to on Moving

about the and expect $X.XX and for pandemic financial anticipate the for call. remains adjusted our results and Mike and we earnings of on $X.XX. In the provide there per remainder like thank billion some uncertainty entire staff between impact their would the clients challenging to our share additional details continued commitment closing, the diluted between $X.XX I of guidance Although during our $X.XX XXXX our our year, revenue times. later will again these in full-year to around billion company

where of We these Research recognition of quarter, Company that award. result are a our will in the in proud Clinical the delivery the now of dedication times. received an top-quality of during our of many is through Officer, Awards, the categories achievement is hand in industry achieved of top Year Chief in quarterly services recognition detail. Clinical our Researcher to like such Financial awards more This also to places and over This the would XXXX our in we call who the I financial we culminating Year direct outstanding tough as PharmaTimes results the to go staff Bonello, and the Mike clients. the

Thank you, Colin, and good morning, everyone.

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

to by driven revenue This strength by segment for an Clinical $XXX previously, as XXXX. million in our stated created I by foreign quarter fluctuations. a XXXX offset impacted As the The third increase exchange of million to well across Research revenue, just the by million be the benefited third pandemic. of which of $XXX in from increase the we our compared was reimbursable Colin revenue of of as from was decrease disruption $X.X the noted impact quarter currency billable reported by favorable for in hours, rate a continues portion increase which COVID-XX

the million, Solutions an X%, reported the $XXX million, respectively. increase of of $XX Clinical For revenue third reported of Research X% quarter, the revenue while Data segment segment and

million quarter compared be third driven as revenue During the XXXX. XX% impact third and our what cost our small we direct have for and it's million rates of companies, large XX.X% Total our Solutions XX% to the derived direct concentration revenue in in revenue our service currency large see from revenue increased XXXX. expand segment XX.X% pharmaceutical business with with increase the fluctuations metrics were in of of we costs to we renewal we our also a rates by and companies. costs of the that offering segment and support as Data on continued reported. The million quarters, continues has general this for impact to to quarter current administrative companies COVID-XX the reimbursable the XX% business. quarter continues assets staff of Clinical quarter, and historically from $XXX.X quarter line to to expenses cost A data and Direct $X.X continue XX.X% data having as the of in million increased our exchange pandemic Consistent data continue segment, Solutions to Research all biotechnology biotechnology XXXX Data third the compared increase to from from companies, for were XXXX. of Selling, $XXX foreign were direct in needs exclude of these compared in labor contracts. midsized from future in and costs direct to on or the quarter quarter. add to in increases $XXX.X XX.X% the pharmaceutical other to to by unfavorable cost prior are revenue driven third X% of our The contributed increase percentage third for quarter in add XXXX be cost of in

Adjusted have business on due expense increase share $XX.X infrastructure increased and quarter an $X.XX period-to-period COVID-XX in discussed to stock-based having Adjusted operations. compensation which the per XXXX. pandemic, correspond an is certain increase the of to in from quarter in support third share XXXX. and decreased do X.X% growth related the in whose to third $X.XX diluted per in the we quarter to a of fluctuation required net in third to not SG&A due in XXXX income, expense of additional results, As prior decreased to including excludes operating of net percentage the the million the added income benefits, per compared headcount impact X.X% share prior revenue of our to quarters, as our salary items changes to

in operating in were compared cash million days third due a by compared of flow our capital, $XX.X to decrease quarter for which was driven to expenditures in quarter sales the improvements August. $XX.X amounts of to prior XXXX. the earlier, third primarily quarter third million the XXXX these of the impacted guidance and the compared for Cash COVID-XX operations million provided third we was increase quarter $XX.X noted were quarter provided by better the were to in significantly XXXX. by The than XXXX pandemic million $XXX.X in the third Colin year. Capital was working As outstanding our when of in

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

the at balance which end was held cash $XX.X of was the subsidiaries. Our of $XXX.X quarter million by our foreign million,

and challenging compared XX, cash manner, dealing liquidity we $XXX cash at us to economic borrowing XXXX the provide We Net with have our equivalents September at along million cash prudent with. and less more face debt in outstanding, continue credit to as debt billion we we September currently our financially to defined our believe capacity are XX, that adequate facility position cash the $X.X total XXXX. manage conditions a with current under position, than was

prior what with our quarters, dollars, XX% denominated was naturally consistent hedged. and have XX% expenses we exposure euro concentration in of excluding were reimbursement our and currency expenses, of while revenue U.S. disclosed in our our revenue and Regarding

we in of than in less as denominated are indicated expenses the revenue denominated the past, have GBP, our GBP, we is X% in movements approximately continue X% exposure in GBP. to to As while of our have

referenced $X.XX share $X.XX. revenue and between and Colin income and per to GAAP company billion and our $X.XX billion, $X.XX per between diluted our the XXXX $X.XX is As our share between diluted to $X.XX earlier, net to income updating net guidance adjusted

quarter results. Our third quarter current are in we our expecting the our fourth and guidance outperformance increase reflects

slowdown pandemic Although restrictions such of duration the results guidance the its closures of in interruptions, uncertain, travel our remains unexpected in could limited and impact Phase specific extent the of specifically I the XXXX uncertainties operations our full impact they or the COVID-XX the could the assumptions in geographic outbreaks, on of pandemic, and business and our if XXXX. used length the financial business of location the closure for These impact sites result to an of activities our worldwide. access as remainder recruitment clinic, scope

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

X.XX of Our we've changes noted are regulatory effective if differ in tax or be estimate our the of may estimated, additional All as guidance exchange XX, this now concludes assume a questions. pre-tax earnings should X.XX. of your are other from if issued there or a by to to interpretation, distribution That agencies. is rate if now geographic our rates euro may changes continues GBP that analysis rate the line. of we are what and open from guidance happy It you Operator, foreign remarks, currency XXXX. prepared our rate and September take

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

very much. morning. Thanks Good

Just couple a here. quick of ones

level is you the service basis, Or is XXX X%. that clarify, think I quarter, that just the to on total in bookings awards related COVID-XX please? wanted XXX said on I basis? old the the On

basis. are our But there, Solutions exactly new lot because very doing It's would really also very just break sort of side, a hard add pharma it's really important that on what to of volume to big a it's been working I'd have there business a like And on XXX COVID. area. out work Strategic with we

big would we very just specifically that we're with still But work that And wanted pharma so highlight important not our out. broken doing activity. that on clients I to

Thank It's you. a good reminder.

either had related probably I'm quarter your similar cancels you've experience have the pass-throughs. of some of out quarter taken had One in this and us last pass-throughs for backlog had that if quarter out world take peers others several as curious lower lower remind you backlog at look travel, in to adjustments general, in the have or about you the any that? of to

point, not. have this at Eric, we

through how had continue any to We of at haven't are that out come individually future. But think backlog. this in for we pass-throughs and to to at analyze the look study we coming material each writedowns point, and pass-through take going

for one me. Great. Last Data solutions.

COVID You've couple spend. impact from mentioned some discretionary on reprioritizations of a

You guidance. thinking with and us both curious said could from gross if I'm profit for you standpoint, Solutions help your factored Data into that you if XQ and revenue possible? your

overall, mean, is our faced really next as lot year the is end the the you a further the uncertainty, QX this know, big put of in expenditure are discretionary I budgets using where we and plans of getting with Well, year. the is and for the quarter, at and place

number, cautious wanted So not that on for to want be released sure if we whether to of you a bit put the amount wanted forecast more we little or in give that to I'm XXXX Mike, guidance. we more?

last quarter margins course year. the the with And were to Yes, – would expect year, it forward. would we've obviously, year. a seen was of over think it costs be looked that that from of Eric, in be lower expectation last in haven't fourth do they don't my given specific with perspective, revenue I we where number a roughly that I I than increase data the we've slightly be the flat But

Appreciate it. Thanks guys. Perfect.

Jefferies. question with Dave next from comes Your Windley

Hi, good about I jumped you too late. hope apologize, didn't cover in I'm much I on detail, this your foresee morning. you curious how progression. margin but I

year-over-year, this in revenue, discussed we've see quarter, in but I prior cost to kept down your a actually not as place, you grow demand. quarters, is meet only have but to lot structure is to think And hire in we year-over-year. of able also As continue your revenue EBITDA

next, would so to And outside five, of trend that for of seven COVID EBITDA to kind over have expected six, if about line quarters? don't there's know, opportunity thinking just your the I catch-up an the we margin

One a EDS is there's the couple we have mean, things that mentioned, side. I Dave. of Well,

extent know, to you we've pandemic the social distancing. to curtail that the had an operations during for As

near So the throughput isn't would anywhere what we normally achieve.

normality So hangover to until of be get obviously going a we that's level some back.

we're below well still at XXX% So operating capacity.

be we're we our are had we've to when couple, well subject it's full, I had thinking cautious through on and and but Phase outbreaks, obviously a we've to Here facility. QX COVID as any quite

like while manage where recognition our There's to part is best bit other there. of piece, catch-up obviously, the be not we'd we're doing The is, to it utilization a still our revenue little in.

see to we back to that expect improving we as get So normality. more

hoping do by we in we're just really looked a going we to at start haven't mid we'll through that lot We're this plan. XXXX. into we give a when thinking for year, planning start point, really But next So to for we're next moving at that. clarity nice position our and XXXX, year how more

Very And line obviously then everybody and then quarter your third in that burn, just the climbing second kind impacted in of about a has to hole. the good. and on as out quarter, the backlog follow-up really – recovered thinking that of for nicely revenue

You've influencing that, back might thinking back of that you see kind dates specific is almost sites number? possibility to position where about that a I if regional cautionary really shutdown? quarter or wondered of that gotten pulls start have these XXXX. like some Fourth little that that implies bit. a and exited or of you back you or see things the are as infection outbreaks pull more Or to studies that

to our the it been how have could the have I is think QX, spoke impact we going Dave, in Phase as Yes. in specifically, business. we I impact certainly think Colin about conservative pandemic

I we're Data before, seeing not they conservative with QX. showing we're how what where also, there. any question in And were we've pass-throughs growth and flat Solutions, been From noted on we're relatively and a I think that's pass-through are period the to going there's a holiday everything couple into a of my assuming, that perspective, fact given heading be things there. as with I'm with in Eric's going that

that. at think, maybe X.X up or be think maybe QX than will my flat based I least calculations, slightly more or with I on So

burn QX. So in where was I show rate it from deteriorating the don't

Okay. Thank you.

Jones question Goldman next comes Your from Robert Sachs. with

pharma the not. I Thanks Great. in year-over-year, be if to looks biotech. a in were pivot it touch might obviously, those pretty cohorts? to been could about at for clear guess It on what's seeing just was what looking question. But curious meaningfully but there's biotech, maybe just you focus bookings I you're bucket. bookings, like what up definitional two know

the versus trends the client client within biotech just base? the So pharma want to seeing base I understand you're

think I trends been the same. the have

starting what business, quarter are some you're of and to remarks. in I think in referred referenced our is Solutions last strength we particularly Strategic his I quarter Colin we see which I think this – as some seeing, think prepared to

So obviously, pharma-based. business is that

bit So little I pharma seeing by our shift Strategic in think a being you're of that's a up Solutions driven business.

as it. Got I'm helpful. any you saw of as you COVID. That's bookings know you the as I sit looking as just you're just COVID, a guess here viewing in thoughts today, out change I were maybe step-up look in next year? coming curious, COVID And then from opportunity at into percent how the that far

our we're from that because, obviously, closed one of the Phase Netherlands on not work. We to coming keeping where are we top to to get lot do we're I the obviously back the of keep able now mean, how and is get to I the of see into We that allowed pandemic studies, learning pathways as volunteers the not seeing the they've the enter. impacts it's surrounding through volunteers sites. a countries that and in manage are there getting borders, particularly

impact can workflow. So the that

them making the sites expeditiously best as that access as make able possible. can And get so with they're When quickly and sure to our as and active and getting we we that to can we information and that. sites clients keep we're really to data work support get sure do just the the

we've And year, to lot the of end obviously, XXX,XXX through. as we're we're seeing handling away at this piece. planning of come going to in We going day what down we weather lot we're at certainly Europe, are effect But got we're into over the as a maybe and going work the to our when doing not the do And the year. midyear, a more certainly by pretty beginning vaccines start approach the of where I cold think go know through we a better next of do. U.S. and to the tunnel it's the can light quickly. go in strongly, strong What So for is close cases I visibility alarming. flowing the still reaching see a we're seeing, think obviously things

you. Thank Great. Okay.

Your next with Donald line Hooker comes of question from KeyBanc. the

Great.

know money So you I just of on Data a the guys Solutions back segment. wanted put have that. jump I to into Thank lot you.

Just there the is your big for acquisition picture, business Health, couple you that there you're Symphony do with upside picture that market in us how about with had to stepping penetrate of think terms years do few you other of big the a and of a share the – What potential. to think acquisitions. help you sort back what trying in

on is you view like So that that there? could updated share with a there focused TAM you're us an

to quarter. of still the We that I to moving of industry that is, a last lots of team And market And and the just more rebuilding. time senior fact a – to standards. have feel added in small share a opportunity the think, grow, people beyond us gives very through we've couple in in we opportunity lot grow which

and what in And the difficult important when Obviously, they sure et more of support lot can there's for a the only And using it's you're of continue our And run to data evidence-based getting parts not I still the will of we're data doing. our happening business, year, business is very there. don't opportunity work decision-making. know clients of they we're that. need, do way we lot long. are – more quite other Just see But strengthening be go clients awful in face-to-face conduct and through which using an for cetera. Zoom what's with beneficial. the time so to what conferencing we The especially next

to we in and of more carefully build lots still the So for that future. that monitor strongly things initially continue we that intact, looking business to while strategically are acquired

that. And question. maybe Thank then other one for you

– good some of that presenting my your stuff the and bit was government job paused. I money that fairly the talked and but You impact information area. prior some the fairly In your into of some here, in maybe little – sense think a about into weeds. you deeper quarters, you guys had opportunities did margins. And material you was Actually, impacted sort gross it understand margin that had was I put space.

the scope potentially the over months, And going winding that are come that COVID-XX maybe to us? can With outbreak next for you down hopefully, XX back? we see

Well, did first now. to it's mean, do I get going a to that But actually paid and did much did going award. small to release exactly and to be the yes, difficult It's this we a how difficult it's to we we because scope The investment press back, important actually announced paid come do it to actually to just determine off, approvals, and continue support we're we actually the we're flagging now thing off that moving bucket endeavors dollars. the be that really achieved government wanted, to our Research. most that look of and Clinical and it's that levels we've a is in forward, investment now

we one move feel now to that nicely So forward. positioned

you. Thank Okay.

with Your from Patrick Citi. comes next Danely question

for Thanks. This Patrick. is Jessie on

You were high the quarter. in decisions mentioned pending still

that bookings have some maybe the that more decisions in of to first for in far XQ possible And see quarter? any of XXXX, if of so XQ, to you bookings? roll the I decisions delayed non-COVID few was trended the on additional the color those delays strong Or And as weeks XQ? another delayed first just could for if – sequential then were seen those is give you XQ? in we uptick for of And into decision-making relates it RFPs in were some us half partially responsible how So wondering has were for some work.

I the mean, they're through think we normally just rolling about that we're did seeing, and think would reason through. this roll on the think is, as we part I commented I they I call last of

are out quarter. with are I decision. of bit think still out levels QX But coming to respect a delay that client making the seeing of they a a side in the were we quarter decisions line that coming that on those the on little in pending of there's are where with

that anticipate any of think seen. So numbers I don't the we you've or cause bolus big

think wanted all strength we bookings I we quarter it's normal through the in it show our that everything commented from QX to dropping been last because that wasn't business. on Again, QX. just

and the volume seeing our decisions activity. on just bit on we're taking clients of been longer normal it's So moving amount for to things. a high, little RFP has make some forward

Okay. on Got flow, flow looks like free it. it cash the just strong And in then one really cash quarter. was

So of to pull-forward can you then working any that it XXXX? in just dynamics just trend we you expect just into wondering if receivables? if work to how relates Or capital? saw And kind to speak XQ as been any you've doing around should

I it No, our DSO our Yes. think beat did internal two days. target by was only by

payments. of specific we a bolus had where that big nothing came So there through was

think there at implemented. we DSO think XXXX, increase believe with QX the prior our you roughly issues was have XX I client the year, of did new a couple that And versus when look I I systems days.

typically XX as range by we payments. the So clients QX the XX cash be of day my expectation going to spend kind their they're very quarter forward that budget making is collection Remember, in end somewhere sure year. a of would and to is tend that make high

pretty I I would out So anything should be year. at that of good expect end our the the of ordinary. DSO anticipate the don't And

Okay. Great. Thanks.

Jack comes from with Nephron next Your Research. question Meehan

quantify not us was how there morning. then much at was I you Phase your shutdowns? you wondering where far. sites Thank help just the color that around you've of for around if versus may highlighted a XQ? on could in so look for if that just times any recovered the I of you. drag exposure some some Good commentary couple a Colin, quarter? be And how or world, may And

is And of broken haven't out was down that from EDS we fact tell year-over-year. was clinic. Clinical down. higher, will But separately. That's was as social Jack, really it the part due much the perspective, It we Colin I that was down to so segment, significantly QX. obviously don't within to year-over-year EPS was as why having we're as Yes, – revenue Research our business distance you, but the a that in indicated, that's it

capacity constrained our there. is don't out But we slightly getting So separately, break unfortunately. that

the times Okay. any quarter more something with on in What's like the seems – wanted and and And below is just current it feet a in cash leverage better if it? now there flow for you its the doing the – think do follow-up you back doing to after appetite is two the caution business Do deals? environment pandemic the again. from

always are to anything business. grow for advantage us help can looking opportunities our take we of any that Actually,

year, like of to a One part. we a certainly workflow asset that have what But we a off I'd and of on it's be even to to faster. we for. continue we're tough visibility keep lot an focused But areas we and helpful into is keeping help finding to phase of resources get that, move this look difficult appropriate keep and could It's utilize clients. us, of doing on just grow things. very sure always evidence supporting the for than top business is our type that work, that late been would particularly, but of the an real-world trying area Other it's do that we making all the data

any at right, is forward strategy – our to maybe you're opportunities changing a this moving get we look breath, when other we environment. with in to catch can – yes, there particularly out start So the there about next year,

Colin. Thank you,

question Brennan with next from Dan UBS. comes Your

How you guidance, of you questions. Maybe wondering, expected? kind characterize plan? quarter above in than of And you did Great. Thanks. the originally original your better you you you and Thanks come did that. the in look just at third from that did of mentioned in the you for what areas would totality where they come why if taking set kind ahead

I think the pretty terms in we - business prepared I of said did performance. notes in well across my

things accessibility health the still to indicated, with that use we And guidance, stuff been the our was Colin as move ability uncertainty QX heading that. studies when through site forward. and we like issued to doing I think of our we're our clients patients some platform able to other into and there when mobile we've internally, were work and enroll some on

obviously I you'll see it revenue improvement, was Most it analysis result, the the revenue. generated. more through – a of As generated think

So helped impact there. the third I guidance there it the we I in on because And COVID-XX QX we a think was was said us some – from in pandemic call, the of think uncertainty about cautious our up lot world quarter. of were our the opening in

year. least did a Solutions of division lot cost last years saw stronger we our diverse to Strategic been that in as quite because at and well, of this labor tough as coming lower force the slightly countries, And again of couple has this been sort has moved mention the being we year

that some within them they've division. Solutions of So placing the and Strategic vacancies the we hiring and saw been lot a

as So that's been help well. a

peers your situation. up Great. a of as What patient back when few mentioned And and they then, if for the which access think I back but like mean, QX, say may think be it pushed in things enrollment? many of things to have you ball, out if you today ahead best to normal, look you your to site planning you think possibly like pull when XXXX, is kind crystal a what's very would QX? how expect QX, a level I to Mike, have get fluid think XXXX, is to it your about you impossible normal you thought you is timing guys you Or this and of get like, evolving

give really we are are pretty in Even – That looking process. at the tried how no good with doing things. planning, I happening understanding not When did going number that saw we ramp-up. our a QX of you deals be even number give QX next obviously we've a to – be the weeks. number. will And and we've we started we of And QX We to think there. our

just think not an sort for yet I going positioned. on. XXXX. of we've well been obviously, was ready we're – pretty at I give But At at point, we're good we you thought looking indication of this feel what

well-diversified a we've with got portfolio backlog solid therapeutic that strong. areas mix. a have are great We in And client

think be the of going to how is will the we've it all stronger we're be lot And I'm looking can't for than to be intact. going a put there's So for the – I to XXXX. why flow mean, work it just of reason I happen. then things got major no

where bit – what's I a say virus. to to think happen I a So what just hard we're just little to caution with to I period but want there. proceed with because going know the with it's of and don't going just weather we cold And to this it's – do going

Colin. Great. Thank you, Mike. Thanks

with question Draper Securities. next from comes Truist Our Sandy

think percentage folks on are lot patient Maybe is important to What mentioned more much. recruitment is – there's site being enrollment of those of I either very impacted. been versus Thanks recruitment, trials I the mean, on you patient notably Colin, recovery question about than one it the access other? a site access, a the of that

very to means see And get that patients very, of important. got is to doctors. Enrollment course, that the Yes. have

argument. so So – circular to that's it's back the

to get a the onto patients You study. to and and get need access seen to site get in recruited

of to allow flow them be the study. data So sure cetera. observing that We to in to placing all protocol, capturing adverse we're making medics access the the a patients Unjam all seen reported fashion basis, we've et under sort events a in everything on that of a events, whole manner, the sure that adverse data the collected obviously are within by timely serious make got and to timely a then are timely need the

there's gets data we've that any lot pieces. collection And gets it in maintained. get of make work that behind sort that done got of we to the want of don't So a to sure

data of site. help do expeditiously we allowed and our it getting advantage being ensure to minute the the that on we take have is can get doubled we're We've access allow site and which base as even to done sites why getting resources we at to as and and up quickly on So to us can. the open us

to you When – technologies. about think going the monitoring, And remote related your you probably a of with helpful. job pretty follow-up aggressive then to Mike. using maybe That's Great. mobile guys have a done

point, some probably cetera. get Assuming back technology, at use that normal, et more to use there's monitoring, but more we of

Just there's a what but any there's more revenue notable trials? old things, remote fewer there impacts. Just see change margin if other – the better dynamics financial through Thanks. maybe but to you can virtual you of longer-term way, back are the start to me we what potential? sort we monitoring the that Is don't longer-term go pass-throughs the walk because you is the see lower or revenue to

when the that you change studies personalized and time because more whatever the the cost more will to done of to can there be for developed. get And ROIs and study change done will future. into paradigm we've strategically, thought moving Sandy that always or that more we we reduce and just a the get to see impact precision-based And more it. call be compounds medicine, sort medicine the trending want in potential

technologies and will will well. a So that we that's will of as do seeing to We get that to expedite now embrace we're be that the cost-effective a full willing using the done never more studies be see in the accelerate. changes manner reduction work. in there new think And them studies help

– to is this pandemic has that. see do us we allowing change – the So

it making that think clients. stretched say foot I a margin of back more bit to a trying it's was a support actually profile, our our we'd in time year the help think we're lot Regarding just efforts pandemic. And too little because in early we've a we're and to because need the where on I on

didn't what we our did is to through how the clinical going to do – do a it make we're get clients to trials. to it plan with help margin. do we this So We

Great. That's helpful Colin. Thanks. really

Kreger Your Blair. next question comes from John William with

very Hi, much. thanks

us you you're can a typical of business versus that you sort non-COVID the have COVID award? guys For work duration on the what's seeing won of remind late,

– obviously have head, off we of duration get obviously, John, of my certainly exact Yes, a the me. information to in duration. But don't are it I profile you. that slightly that seeing but front don't right to that number shorter back get have of I can top I the

next that early in planning kind XXXX, of Okay. the the And should partnership Got months for we it. in coming up I about? any realize be Thanks. notable we're then renewals XX of kind but thinking

you on John, our kind very know be just we'll with this as don't our are down significant If We're We've there I said, at I we've But that. it's BD – think involved point, I in process. teams. certainly sitting comment renewals, kicked – process. that off early. can don't of that

maybe then, And Mike, more. Great. one

big guys pretty in reconciliation, a had think I EBITDA like something adjustment the of order on of you million. the $XX looked it

I that although assuming benefit, I it P&L, elaborate can wasn't a the but was? in correctly, that what was maybe that think I saw just adjusted on realized you

our Sure. benefit, it – the CI actually acquisition. Yes, or release of actually the contingent it the was related was that Care and a was liability to our – Innovations

that was XX-month we attached obviously an earn to to recall, you market a and earn-out the conditions, If change result, upfront and the in impacted as had payment that we earn-out release given this had and a large a conditions market out Obviously, it. liability.

Got it. Thank you.

Credit Your Wright question with Suisse. next from comes Erin

Thanks. Okay.

do sort of R&D Will there vaccine? vaccine-related next year COVID-related a Or as of And that see there of work? work, efforts is reprioritization some we how that cancellations potentially likely? or think associated some work when efforts? into view is On those sort you you will do therapeutic much of R&D the in with be Covid versus that reprioritization heading therapeutic

huge just split But executing And our in that plan capability a It's There the and the I in a We're in obviously, given – working place studies of capacity. is new work for been pretty it's some well. the is almost of and much vaccine not work. still a we're it's Obviously, X% we're great. the mean, been through, some was which vaccine therapeutics, authorization. doing amount pretty adding it between of therapeutics. expanding that. new

the across we're obviously, strong board. pipeline So seeing, a

don't of think of view I it's unusual sort wouldn't normally it as I anything course that ordinary business. there's So the see that I

Okay. Great. you. Thank

Avendano with Instructions] next from line Bank question the America. [Operator of of Your comes Juan

My having understanding Hi, some discretionary. the recurring thank was the of in I business mentioned you question. in of a prepared be mistaken some for uncertainty If is spend somewhat in there business, subscription-based you heard this remarks, the this which there Data correctly nature. as and Solutions could a taking the was that of is that

the of business this So driven versus could spend in of by how percentage perhaps Maybe can nature? better? that spend the much me you and share could understand you business please this recurring help be is if discretionary non-discretionary

less I to Yes, the of front in the side those an our is quarters, subscription-based. previous breakout. have impact in of of for business pandemic That's the business commented why would majority clinical the percentages business. But have that sure, we've Juan. said compared the don't as we've of me as on

we thought out a the significant had there happen. - to dropped where referenced, quarter be. of So through, was Colin compared we because had did would spend, not But was it that discretionary come have as third challenges some amount it of of didn't the some

be just having to comment from see was It I a the discretionary of so quarter think a guys we because that really to some broad-based Solutions on that that spends impact commented lot but that we're guide revenue help the Data least not a to because in where in expecting. going and up, of the typical grown. the has give seen and that our we expectations were to to we've of expecting revenue around we So you commentary where growth is just of kind we've past try fourth were street to mean, year-to-date, at is there these to understand people the business that what wanted perspective

lives data you. seems this by – how your happen? should more to total this your you like that is and And for But continue us costs while norm? related expect to databases? suppliers, higher higher. new assets, to covered give you're data data And Okay, can we patient this of that suppose thank assets. acquisition I it data data long and should competition it, update some these on the grind Or at an number feeds are perhaps number a of is the of

patient – U.S. million XXX the in the over cover Well, like we lives,

our are cost anywhere parts scale actually some world but don't a more we the have we we sources, data U.S. do covering of in sparse. bit We other good the near the little have So there. not have data is We what disclose to

with data paradigm can it, And we help data and tools And with that raw and might in point. is. from actually our company. them data identified but all can it within the we normally is not becomes be data manners all data But or until utilize appropriate and that our with win-win all into actually their of our more there their it linked information our – we once can to them processed, becomes expertise. a discussions, a the we ways you because think working meaningful, be I change providers ongoing sort valuable other thinks starting clients we're use as more can more by got agreements. relationship really of aggregate It's it can an broad and everybody imagine, can As where have than help are trying we together, multiyear it a when we're say, give we analytic we've as actually transform what data that we

head try more get its with partners. relationships So on said, to sort to I and understanding turn trying been, our that we've like of

you. Thank

questions no back showing turn further time. I'm I at Shannon, to like conference CEO. the this to would Colin now

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

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

you And day. Ladies for this conference. your Thank a and have wonderful participation. concludes gentlemen today’s

disconnect. all may You