Q1 2023 Medpace Holdings, Inc. Earnings Call

Speaker 1: 31.2%. Net new business awards entering backlog in the first quarter increased 31.4% from the prior year to $555.8 million resulting in a 1.28 net book to bill.

Speaker 1: Ending backlog as of March 31 was approximately $2.5 billion, which was an increase of 17.8% from the prior year. We project that approximately $1.33 billion of backlog will convert to revenue in the next 12 months, and backlog conversion in the first quarter was 18.6% of beginning backlog. In 2023, we continued to make progress in hiring in the first quarter, adding 4.3% from the end of 2022 and over 15.8% from the prior year. Employee retention and continued hiring for future business will remain top priorities in 2023. And with that, I will turn the call over to Kevin to review our financial performance in more detail and discuss our 2023 guidance. Kevin? Thank you, Jesse, and good morning to everyone listening in. As Jesse mentioned, revenue was $434.1 million in the first quarter of 2023. This represented a year-over-year increase of 31.2% on a reported basis and 31.8% on a constant currency basis. The strong revenue results for the quarter reflected less funding challenges than anticipated for our clients. EBITDA of 92.8 million increased 31.9% compared to 70.4 million in the first quarter of 2022.

Speaker 1: On a constant currency basis, EBITDA for the first quarter increased 28.6% compared to the prior year. EBITDA margin for the first quarter was 21.4% compared to 21.3% in the prior year period.

Speaker 1: even a margin for the quarter, was positively impacted by the strong revenue.

Speaker 1: We anticipate margin headwinds, the balance of the year as a result of wage inflation, headcount growth, and higher reimbursable costs as a proportion of total revenue.

Speaker 1: In the first quarter of 2023, net income of $72.9 million increased 18.9% compared to net income of $61.3 million in the prior year period. Net income growth lagging EBITDA was primarily driven by a higher effective tax rate of 15.3% and a great Robots idea, The shaded

Speaker 1: compared to 6.1% in the prior year period.

Speaker 1: Net income per diluted share for the quarter was $2.27.

Cash basis accrual, we thought they were going under.

Improve over the over the quarter.

RFP flow is actually not very.

Raising funding and we had some that.

Largely that was a Q4 phenomenon and.

We haven't seen as much we kind of anticipated seeing more of that and have not seen as much in.

In Q1 and things.

The clients that had challenged.

No.

But that's just been the profile we've seen.

There are no further questions at this time I would now like to turn the conference back over to learn more as med patients director of Investor Relations for closing remarks.

And thank you for joining us on today's call and for your interest in Med based and we look forward to speaking with you again on our second quarter 2023 earnings call.

This concludes today's conference call. Thank you for participating you may now disconnect.

Okay.

Okay.