MEDP Medpace Holdings Inc

• Revenue of $536.6 million in the fourth quarter of 2024 increased 7.7% from revenue of $498.4 million for the comparable prior-year period, representing a backlog conversion rate of 18.3%.
• Net new business awards were $529.7 million in the fourth quarter of 2024, representing a decrease of 13.8% from net new business awards of $614.7 million for the comparable prior-year period, which resulted in a net book-to-bill ratio of 0.99x.
• Fourth quarter of 2024 GAAP net income was $117.0 million, or $3.67 per diluted share, versus GAAP net income of $78.3 million, or $2.46 per diluted share, for the comparable prior-year period. Net income margin was 21.8% and 15.7% for the fourth quarter of 2024 and 2023, respectively.
• EBITDA was $133.5 million for the fourth quarter of 2024, an increase of 39.3% from EBITDA of $95.8 million for the comparable prior-year period, resulting in an EBITDA margin of 24.9%.

Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Results

Revenue for the three months ended December 31, 2024 increased 7.7% to $536.6 million, compared to $498.4 million for the comparable prior-year period. On a constant currency basis, revenue for the fourth quarter of 2024 increased 7.8% compared to the fourth quarter of 2023.

Backlog as of December 31, 2024 increased 3.2% to $2,902.2 million from $2,813.0 million as of December 31, 2023. Net new business awards were $529.7 million, representing a net book-to-bill ratio of 0.99x for the fourth quarter of 2024, as compared to $614.7 million for the comparable prior-year period. The Company calculates the net book-to-bill ratio by dividing net new business awards by revenue.

For the fourth quarter of 2024, total direct costs were $358.3 million, compared to total direct costs of $361.6 million in the fourth quarter of 2023. Selling, general and administrative (SG&A) expenses were $45.4 million in the fourth quarter of 2024, compared to SG&A expenses of $42.5 million in the fourth quarter of 2023.

GAAP net income for the fourth quarter of 2024 was $117.0 million, or $3.67 per diluted share, versus GAAP net income of $78.3 million, or $2.46 per diluted share, for the fourth quarter of 2023. This resulted in a net income margin of 21.8% and 15.7% for the fourth quarter of 2024 and 2023, respectively.

EBITDA for the fourth quarter of 2024 increased 39.3% to $133.5 million, or 24.9% of revenue, compared to $95.8 million, or 19.2% of revenue, for the comparable prior-year period. On a constant currency basis, EBITDA for the fourth quarter of 2024 increased 37.0% from the fourth quarter of 2023.

Full Year 2024 Financial Results

Revenue for the year ended December 31, 2024 increased 11.8% to $2,109.1 million, compared to $1,885.8 million for the year ended December 31, 2023. On a constant currency basis, revenue increased 11.8% for the year ended December 31, 2024 compared to the year ended December 31, 2023.

For the year ended December 31, 2024, net new business awards were $2,230.0 million, representing a net book-to-bill ratio of 1.06x, compared to $2,356.7 million for the year ended December 31, 2023.

For the full year 2024, total direct costs were $1,452.7 million, compared to $1,361.3 million in the full year 2023. For the full year 2024, SG&A expenses were $180.2 million, compared to $161.4 million for the full year 2023.

GAAP net income for the full year 2024 was $404.4 million, or $12.63 per diluted share, versus GAAP net income of $282.8 million, or $8.88 per diluted share, for the full year 2023. This resulted in a net income margin of 19.2% and 15.0% for the full year 2024 and 2023, respectively.

EBITDA for the full year 2024 increased 32.5% to $480.2 million, or 22.8% of revenue, compared to $362.5 million, or 19.2% of revenue, for the prior year. On a constant currency basis, EBITDA increased 31.7% for the full year 2024 compared to the full year 2023.

A reconciliation of the Company’s non-GAAP financial measures, including EBITDA and EBITDA margin to the corresponding GAAP measures is provided below.

Balance Sheet and Liquidity

The Company’s Cash and cash equivalents were $669.4 million at December 31, 2024, and the Company generated $190.7 million in cash flow from operating activities during the fourth quarter of 2024.

During the fourth quarter of 2024, the Company repurchased 527,160 shares at an average price of $330.43 per share for a total of $174.2 million. As of December 31, 2024, the Company had $134.6 million remaining under its authorized share repurchase program.

Additionally, on February 6, 2025, the Company’s Board of Directors approved an increase of $600 million to the Company’s stock repurchase program. The timing, price, and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The stock repurchases may be made from time to time, through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan. The program may be discontinued or amended at any time without notice.

2025 Financial Guidance

The Company forecasts 2025 revenue in the range of $2.110 billion to $2.210 billion, representing growth of 0.0% to 4.8% over 2024 revenue of $2.109 billion. GAAP net income for full year 2025 is forecasted in the range of $378.0 million to $402.0 million. Additionally, full year 2025 EBITDA is expected in the range of $462.0 million to $492.0 million. Based on forecasted 2025 revenue of $2.110 billion to $2.210 billion and GAAP net income of $378.0 million to $402.0 million, diluted earnings per share (GAAP) is forecasted in the range of $11.93 to $12.69. This guidance assumes a full year 2025 tax rate of 18.0% to 19.0%, interest income of $30.5 million, and 31.7 million diluted shares outstanding. This guidance does not include the potential impact of any share repurchases the Company may make pursuant to the share repurchase program after December 31, 2024.

Conference Call Details

Medpace will host a conference call at 9:00 a.m. ET, Tuesday, February 11, 2025, to discuss its fourth quarter and full year 2024 results.

To participate in the conference call, interested parties must register in advance by clicking on this link. While it is not required, it is recommended you join 10 minutes prior to the event start. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call.

To access the conference call via webcast, visit the “Investors” section of Medpace’s website at medpace.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call. A supplemental slide presentation will also be available at the “Investors” section of Medpace’s website prior to the start of the call.

About Medpace

Medpace is a scientifically-driven, global, full-service clinical contract research organization (CRO) providing Phase I-IV clinical development services to the biotechnology, pharmaceutical and medical device industries. Medpace’s mission is to accelerate the global development of safe and effective medical therapeutics through its high-science and disciplined operating approach that leverages regulatory and therapeutic expertise across all major areas including oncology, cardiology, metabolic disease, endocrinology, central nervous system and anti-viral and anti-infective. Headquartered in Cincinnati, Ohio, Medpace employs approximately 5,900 people across 44 countries as of December 31, 2024.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our forecasted financial results and the effective tax rate used for non-GAAP adjustment purposes. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” “forecast,” “may,” “could,” “likely,” “anticipate,” “project,” “goal,” “objective,” “potential,” “range,” “estimate,” “preliminary,” “opportunity,” “outlook,” “trend,” “can,” “might,” “drives,” “hope,” “future,” “predict” and similar expressions, and variations or negatives of these words. However, the absence of these words does not mean that a statement is not forward-looking.

These forward-looking statements are largely based on management’s current expectations and projections about future events and financial trends that we believe may affect, among other things, our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our financial condition, actual results, performance (including share price performance), or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the potential loss, delay or non-renewal of our contracts, or the non-payment by customers for services we have performed; the failure to convert backlog to revenue at our present or historical conversion rate(s); the failure to maintain or generate new business awards; fluctuation in our results between fiscal quarters and years; the risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; decreased operating margins due to increased pricing pressure or other factors; our failure to perform our services or operate our business in accordance with contractual requirements, government regulations and ethical considerations; the impact of underpricing our contracts, overrunning our cost estimates or failing to receive approval for or experiencing delays with documentation of change orders; the failure of third parties to provide us critical support services; our failure to increase our market share, grow our business, successfully execute our growth strategies or manage our growth effectively; the impact of a failure to retain key executives or other personnel or recruit qualified personnel; the risks associated with our information systems infrastructure, including potential cybersecurity breaches and other disruptions which could compromise patient information or our information; risks from use of machine learning and generative artificial intelligence (“AI”), including risks from insufficient human oversight of AI or lack of controls and procedures monitoring AI use; adverse results from customer or therapeutic area concentration; the risks associated with doing business internationally, including the effects of tariffs and trade wars; the risks associated with the Foreign Corrupt Practices Act and other anti-corruption laws; future net losses; the impact of changes in tax laws and regulations; our failure to attract suitable investigators and patients to our clinical trials; the liability risks associated with our research and development services, including risks of liability resulting from harm to patients; inadequate insurance coverage for our operations and indemnification obligations; fluctuations in exchange rates; general economic conditions, including inflation, in the markets in which we and our customers operate, including financial market conditions; the impact of unfavorable economic conditions, including conditions caused by the uncertain international economic environment and current and future international conflicts; the impact of a natural disaster or other catastrophic event; negative outsourcing trends in the biopharmaceutical industry and a reduction in aggregate expenditures and research and development budgets; our inability to compete effectively with other CROs; the impact of healthcare reform; the impact of consolidation in the biopharmaceutical industry; our failure to comply with federal, state and foreign healthcare laws; the effect of current and proposed laws and regulations regarding the protection of personal data; our potential involvement in costly intellectual property lawsuits; actions by regulatory authorities or customers to limit the scope of indications related to or withdraw an approved drug, biologic or medical device from the market; and the impact of industry-wide reputational harm to CROs. Moreover, we operate in a very competitive and rapidly changing environment in which new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all important factors on our business or the extent to which any factor, or combination of such factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.

These and other important factors discussed under the caption “Risk Factors” in Item 1A, Part I of our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. We cannot guarantee that any forward-looking statement will be realized. Achievement of anticipated results is subject to substantial risks, uncertainties and inaccurate assumptions. If known or unknown risks or uncertainties materialize or if underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events, developments or circumstances cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures

Certain financial measures presented in this press release, such as EBITDA and EBITDA margin, are not recognized under generally accepted accounting principles in the United States of America, or U.S. GAAP. Management uses EBITDA and EBITDA margin or comparable metrics as a measurement used in evaluating our operating performance on a consistent basis, as a consideration to assess incentive compensation for our employees, for planning purposes, including the preparation of our internal annual operating budget, and to evaluate the performance and effectiveness of our operational strategies.

EBITDA and EBITDA margin have important limitations as analytical tools and you should not consider them in isolation, or as a substitute for, analysis of our results as reported under U.S. GAAP. See the condensed consolidated financial statements included elsewhere in this release for our U.S. GAAP results. Additionally, for reconciliations of EBITDA and EBITDA margin to our closest reported U.S. GAAP measures, refer to the appendix of this press release.

We believe that EBITDA and EBITDA margin are useful to provide additional information to investors about certain material non-cash and non-recurring items. While we believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors, because not all companies use identical calculations, this presentation of EBITDA and EBITDA margin may not be comparable to other similarly titled measures of other companies and should not be considered as an alternative to performance measures derived in accordance with U.S. GAAP. EBITDA is calculated as net income attributable to Medpace Holdings, Inc. before income tax expense, interest expense, net, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by Revenue, net for each period. Our presentation of EBITDA and EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

(Unaudited)

 

 

 

 

(Amounts in thousands, except per share amounts)

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2024

 

2023

 

2024

 

2023

Revenue, net

$

536,589

 

$

498,401

 

$

2,109,054

 

$

1,885,842

 

Operating expenses:

 

 

 

 

 

 

 

Direct service costs, excluding depreciation and amortization

 

167,522

 

 

 

164,291

 

 

 

682,095

 

 

 

638,249

 

Reimbursed out-of-pocket expenses

 

190,750

 

 

 

197,304

 

 

 

770,654

 

 

 

723,088

 

Total direct costs

 

358,272

 

 

 

361,595

 

 

 

1,452,749

 

 

 

1,361,337

 

Selling, general and administrative

 

45,433

 

 

 

42,514

 

 

 

180,184

 

 

 

161,352

 

Depreciation

 

7,145

 

 

 

6,422

 

 

 

27,808

 

 

 

24,129

 

Amortization

 

361

 

 

 

550

 

 

 

1,443

 

 

 

2,199

 

Total operating expenses

 

411,211

 

 

 

411,081

 

 

 

1,662,184

 

 

 

1,549,017

 

Income from operations

 

125,378

 

 

 

87,320

 

 

 

446,870

 

 

 

336,825

 

Other income (expense), net:

 

 

 

 

 

 

 

Miscellaneous income (expense), net

 

621

 

 

 

1,543

 

 

 

4,056

 

 

 

(655

)

Interest income (expense), net

 

7,883

 

 

 

1,844

 

 

 

24,996

 

 

 

(488

)

Total other income (expense), net

 

8,504

 

 

 

3,387

 

 

 

29,052

 

 

 

(1,143

)

Income before income taxes

 

133,882

 

 

 

90,707

 

 

 

475,922

 

 

 

335,682

 

Income tax provision

 

16,864

 

 

 

12,409

 

 

 

71,536

 

 

 

52,872

 

Net income

$

117,018

 

 

$

78,298

 

 

$

404,386

 

 

$

282,810

 

Net income per share attributable to common

 

 

 

 

 

 

 

Basic

$

3.78

 

 

$

2.55

 

 

$

13.06

 

 

$

9.20

 

Diluted

$

3.67

 

 

$

2.46

 

 

$

12.63

 

 

$

8.88

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

30,945

 

 

 

30,719

 

 

 

30,957

 

 

 

30,722

 

Diluted

 

31,873

 

 

 

31,825

 

 

 

32,014

 

 

 

31,841

 

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands, except share amounts)

 

 

 

 

As Of December 31,

 

2024

 

2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

669,436

 

 

$

245,449

 

Accounts receivable and unbilled, net

 

296,443

 

 

 

298,400

 

Prepaid expenses and other current assets

 

63,350

 

 

 

49,979

 

Total current assets

 

1,029,229

 

 

 

593,828

 

Property and equipment, net

 

123,615

 

 

 

120,589

 

Operating lease right-of-use assets

 

128,649

 

 

 

144,801

 

Goodwill

 

662,396

 

 

 

662,396

 

Intangible assets, net

 

34,366

 

 

 

35,809

 

Deferred income taxes

 

100,357

 

 

 

74,435

 

Other assets

 

22,254

 

 

 

24,970

 

Total assets

$

2,100,866

 

 

$

1,656,828

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

32,528

 

 

$

31,869

 

Accrued expenses

 

307,807

 

 

 

292,961

 

Advanced billings

 

710,585

 

 

 

559,860

 

Other current liabilities

 

53,633

 

 

 

40,441

 

Total current liabilities

 

1,104,553

 

 

 

925,131

 

Operating lease liabilities

 

126,234

 

 

 

142,122

 

Deferred income tax liability

 

1,800

 

 

 

2,404

 

Other long-term liabilities

 

42,734

 

 

 

28,221

 

Total liabilities

 

1,275,321

 

 

 

1,097,878

 

Commitments and contingencies

 

 

 

Shareholders’ equity:

 

 

 

Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at December 31, 2024 and 2023, respectively

 

—

 

 

 

—

 

Common stock - $0.01 par-value; 250,000,000 shares authorized at December 31, 2024 and 2023, respectively; 30,630,799 and 30,752,292 shares issued and outstanding at December 31, 2024 and 2023, respectively

 

306

 

 

 

308

 

Treasury stock - 70,073 and 70,573 shares at December 31, 2024 and 2023, respectively

 

(12,235

)

 

 

(12,322

)

Additional paid-in capital

 

844,050

 

 

 

802,681

 

Retained earnings (accumulated deficit)

 

8,167

 

 

 

(221,645

)

Accumulated other comprehensive loss

 

(14,743

)

 

 

(10,072

)

Total shareholders’ equity

 

825,545

 

 

 

558,950

 

Total liabilities and shareholders’ equity

$

2,100,866

 

 

$

1,656,828

 

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Amounts in thousands)

Twelve Months Ended December 31,

 

2024

 

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net income

$

404,386

 

 

$

282,810

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation

 

27,808

 

 

 

24,129

 

Amortization

 

1,443

 

 

 

2,199

 

Stock-based compensation expense

 

25,514

 

 

 

20,516

 

Noncash lease expense

 

23,124

 

 

 

19,646

 

Deferred income tax benefit

 

(26,632

)

 

 

(25,117

)

Other

 

(4,009

)

 

 

2,705

 

Changes in assets and liabilities:

 

 

 

Accounts receivable and unbilled, net

 

2,242

 

 

 

(48,282

)

Prepaid expenses and other current assets

 

(12,090

)

 

 

2,986

 

Accounts payable

 

(2,965

)

 

 

1,051

 

Accrued expenses

 

16,882

 

 

 

82,080

 

Advanced billings

 

150,725

 

 

 

97,131

 

Lease liabilities

 

(21,407

)

 

 

(18,873

)

Other assets and liabilities, net

 

23,794

 

 

 

(9,607

)

Net cash provided by operating activities

 

608,815

 

 

 

433,374

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Property and equipment expenditures

 

(36,548

)

 

 

(36,648

)

Other

 

8,240

 

 

 

2,019

 

Net cash used in investing activities

 

(28,308

)

 

 

(34,629

)

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Proceeds from stock option exercises

 

15,858

 

 

 

11,378

 

Repurchases of common stock

 

(169,867

)

 

 

(144,020

)

Proceeds from revolving loan

 

—

 

 

 

105,000

 

Payments on revolving loan

 

—

 

 

 

(155,000

)

Net cash used in financing activities

 

(154,009

)

 

 

(182,642

)

EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

(2,511

)

 

 

1,081

 

INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

 

423,987

 

 

 

217,184

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period

 

245,449

 

 

 

28,265

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period

$

669,436

 

 

$

245,449

 

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)

 

(Amounts in thousands)

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

2024

 

2023

 

2024

 

2023

RECONCILIATION OF GAAP NET INCOME TO EBITDA

 

 

 

 

 

 

 

Net income (GAAP)

$

117,018

 

 

$

78,298

 

 

$

404,386

 

 

$

282,810

 

Interest (income) expense, net

 

(7,883

)

 

 

(1,844

)

 

 

(24,996

)

 

 

488

 

Income tax provision

 

16,864

 

 

 

12,409

 

 

 

71,536

 

 

 

52,872

 

Depreciation

 

7,145

 

 

 

6,422

 

 

 

27,808

 

 

 

24,129

 

Amortization

 

361

 

 

 

550

 

 

 

1,443

 

 

 

2,199

 

EBITDA (Non-GAAP)

$

133,505

 

 

$

95,835

 

 

$

480,177

 

 

$

362,498

 

Net income margin (GAAP)

 

21.8

%

 

 

15.7

%

 

 

19.2

%

 

 

15.0

%

EBITDA margin (Non-GAAP)

 

24.9

%

 

 

19.2

%

 

 

22.8

%

 

 

19.2

%

FY 2025 GUIDANCE RECONCILIATION (UNAUDITED)

 

(Amounts in millions, except per share amounts)

Forecast 2025

 

Net Income

 

Net income per diluted share

 

Low

 

High

 

Low

 

High

Net income and net income per diluted share (GAAP)

$

378.0

 

 

$

402.0

 

 

$

11.93

 

$

12.69

Income tax provision

 

84.5

 

 

 

90.5

 

 

 

 

 

Interest income, net

 

(30.5

)

 

 

(30.5

)

 

 

 

 

Depreciation

 

29.1

 

 

 

29.1

 

 

 

 

 

Amortization

 

0.9

 

 

 

0.9

 

 

 

 

 

EBITDA (Non-GAAP)

$

462.0

 

 

$

492.0

 

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210160060/en/

Investor Contact: Lauren Morris 513.579.9911 x11994 l.morris@medpace.com

Media Contact: Michael Maley 513.579.9911 x12831 m.maley@medpace.com