Medpace Holdings, Inc. Reports Third Quarter 2024 Results

Medpace Holdings, Inc., a global full-service clinical contract research organization (CRO), has released its financial results for the third quarter of 2024. The company reported an 8.3% increase in revenue compared to the same period last year, alongside significant improvements in net income and EBITDA.

Financial Highlights

For the third quarter of 2024, Medpace reported:

• Revenue of $533.3 million, an 8.3% increase from $492.5 million in Q3 2023.
• GAAP net income of $96.4 million, or $3.01 per diluted share, up from $70.6 million, or $2.22 per diluted share, in the prior-year period.
• EBITDA of $118.8 million, a 31.7% increase from $90.2 million in Q3 2023, resulting in an EBITDA margin of 22.3%.
• Net new business awards of $533.7 million, representing a decrease of 12.7% from $611.5 million in Q3 2023, with a net book-to-bill ratio of 1.00x.

Business and Operational Highlights

Medpace's backlog as of September 30, 2024, increased by 8.8% to $2,927.4 million from $2,689.5 million as of September 30, 2023. The company also reported total direct costs of $364.3 million and SG&A expenses of $49.2 million for the third quarter of 2024.

Strategic Initiatives and Corporate Developments

Medpace's cash and cash equivalents stood at $656.9 million at the end of the third quarter, with $149.1 million generated in cash flow from operating activities. The company did not repurchase any shares during the quarter but has $308.8 million remaining under its authorized share repurchase program.

Management's Perspective

Management highlighted the company's strong financial performance and operational efficiency. The increase in revenue and net income reflects Medpace's disciplined operating approach and strategic focus on high-science clinical development services.

Future Outlook

For the full year 2024, Medpace forecasts revenue in the range of $2.090 billion to $2.130 billion, representing growth of 10.8% to 12.9% over 2023. GAAP net income is expected to be between $376.0 million and $388.0 million, with EBITDA projected in the range of $450.0 million to $470.0 million. The company anticipates diluted earnings per share (GAAP) to be between $11.71 and $12.09.

SEC Filing: Medpace Holdings, Inc. [ MEDP ] - 8-K - Oct. 21, 2024