Q2 2024 IQVIA Holdings Inc Earnings Call

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Iqvia second quarter 2024 earnings conference call.

Operator: Iqvia Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.

Operator: After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star 1 again.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press the star 1 again. As a reminder, this call is being recorded. Thank you.

Operator: As a reminder, this call is being recorded. Thank you. I would now like to turn the call over to Kerri Joseph, Senior Vice President, Investor Relations, and Treasurer. Dr. Joseph, please begin your conference. Thank you, operator. Good morning, everyone.

Kerri Joseph: I would now like to turn the call over to Kerri Joseph, Senior Vice President, Investor Relations and Treasury. Mr. Joseph, please begin your conference.

Kerri Joseph: Thank you for joining our second quarter 2024 earnings call. With me today are Ari Bousbib, Chairman and Chief Executive Officer, Ron Bruehlman, Executive Vice President and Chief Financial Officer, Mike Fedok, Senior Vice President, Financial Planning and Analysis, and Gustavo Peroni, Senior Director, Investor Relations. Today we will be referencing a presentation that will be visible during this call for those of you on our webcast.

Kerri Joseph: Thank you, Operator.

Kerri Joseph: Good morning, everyone. Thank you for joining our second quarter 2024 earnings call.

Speaker Change: With me today are Ari Bousbib, Chairman and Chief Executive Officer, Ron Bruehlman, Executive Vice President and Chief Financial Officer, Mike Fedok, Senior Vice President, Financial Planning and Analysis, and Gustavo Peroni, Senior Director, Investment Relations.

Speaker Change: Today we will be referencing a presentation that will be visible during this call for those of you on our webcast. This presentation will also be available following this call in the events and presentation section of our Iqvia investor relations website at ir.iqvia.com.

Kerri Joseph: This presentation will also be available following this call in the events and presentations section of our Iqvia investor relations website at ir.iqvia.com. Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements. Actual results could differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with the company's business, which are discussed in the company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and subsequent SEC filings. In addition, we will discuss certain non-GAAP financial measures on this call, which should be considered a supplement to, and not a substitute for, financial measures prepared in accordance with GAAP.

Speaker Change: Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements.

Speaker Change: Actual results could differ materially from those stated or implied by forward-looking statements due to risk and uncertainties associated with the company's business, which are discussed in the company's filings with the Security and Exchange Commission, including our annual report on Form 10-K and subsequent SEC filings.

Speaker Change: In addition, we will discuss certain non-GAAP financial measures on this call, which should be considered a supplement to, and not a substitute for, financial measures prepared in accordance with GAAP.

Speaker Change: A reconciliation of these non- GAAP measures to the comparable GAAP measures is included in the press release and conference call presentation.

Kerri Joseph: A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in the press release and conference call presentation. I would now like to turn the call over to our Chairman and CEO, Ari Bousbib. Thank you, Kerri, and good morning, everyone.

Speaker Change: I would now like to turn the call over to our Chairman and CEO , Ari Bousbib.

Ari Bousbib: Thanks for joining us today to discuss our second quarter results. Iqvia delivered another quarter of strong operational results, with 5% revenue growth excluding the impact of foreign exchange and COVID-related work, and 8.6% growth in adjusted diluted earnings per share. The fundamentals of the industry remain healthy, which supports our confidence in the outlook for our business. On the commercial side, things are starting to gradually improve, and while customers continue to exercise budgetary caution, we see faster decisions and more focus on carrying out mission-critical projects, such as those associated with launching new drugs.

Ari Bousbib: Thank you, Kerri, and good morning, everyone. Thanks for joining us today to discuss our second quarter results.

Ari Bousbib: Iqvia delivered another quarter of strong operational results.

Ari Bousbib: with 5% revenue growth excluding the impact of foreign exchange and COVID-related work.

Ari Bousbib: and 8.6% growth in adjusted diluted earnings per share.

Ari Bousbib: The fundamentals of the industry remain healthy, which supports our confidence in the outlook for our business.

Ari Bousbib: On the commercial side, things are starting to gradually improve, and while customers continue to exercise budgetary cautiousness, we see faster decisions and more focus on carrying out mission-critical projects

Ari Bousbib: As you recall, new FDA approvals for 2023 were 55, which was the second largest year since 2017. And, in fact, year-to-date approvals are at 21, which is in line with the average for the last five years.

Ari Bousbib: such as those associated with launching new drugs.

Speaker Change: As you recall, new FDA approvals for 2023 were 55, which was the second largest year since 2017, and in fact, year-to-date approvals are at 21, which is in line with the average for the last five years.

Ari Bousbib: In the quarter, TAS came in a little better than our expectations, consistent with the improving leading indicators that we cited earlier this year. Both consulting and analytics and real world revenue improved sequentially in the second quarter. We said Tejas revenue growth for 2024 was going to be the mirror image of 2023. And in fact, TAS revenue growth was about 3% in the first quarter, and it was 4% in the second quarter, excluding COVID and foreign exchange. In constant currency, and based on forward-looking indicators, we remain confident in our full-year forecast for time.

Speaker Change: In the quarter, TAS came in a little better than our expectations, consistent with the improving leading indicators that we cited earlier this year.

Speaker Change: Both consulting and analytics and real-world revenue improved sequentially in the second quarter.

Speaker Change: We said Tejas revenue growth for 2024 was going to be the mirror image of 2023.

Speaker Change: And in fact, Tejas revenue growth was about 3% in the first quarter, and it was 4% in the second quarter, excluding COVID and foreign exchange.

Speaker Change: At constant currency and based on forward-looking indicators, we remain confident in our full-year forecast for TAZ.

Ari Bousbib: This implies 6% to 7% growth for the balance of the year, resulting in full-year mid-single-digit growth, again consistent with the target we established for TAS at the beginning of the year. On the clinical side, while we continue to see the trend we have observed over the past years, with large pharma reprioritizing their portfolios or programs and reallocating money to the most attractive ones in response largely to the IRA, demand from our large pharma clients in R&D remains solid.

Speaker Change: This implies 6-7% growth for the balance of the year, resulting in full-year mid-single-digit growth, again, consistent with the target we established for TAS at the beginning of the year.

Speaker Change: On the clinical side, while we continue to see the trend we have observed over the past year, with large pharma reprioritizing their portfolios or programs and reallocating money to the most attractive ones in response largely to the IRA,

Speaker Change: Demand from our large pharma clients in RMDS remains solid.

Ari Bousbib: We are also encouraged by the continued acceleration of EBP funding. In fact, Bioworld reports emerging biotech funding for the second quarter was $22.9 billion, which is up 32% versus the prior year. For the first half, biotech funding is about 70 billion dollars, essentially equal to the entire year of 2023.

Speaker Change: We are also encouraged by the continued acceleration of EBP funding.

Speaker Change: In fact, BioWorld reports emerging biotech funding for the second quarter was $22.9 billion, which is up 32% versus prior year. For the first half,

Speaker Change: Biotech funding is about 70 billion dollars, essentially equal to the entire year of 2023.

Ari Bousbib: Obviously, it does take time for funding to translate into RFP flows, but it certainly bodes well for mid-long-term prospects in our EBP segment. In a quarter, RDS recorded good net new bookings of approximately $2.7 billion, representing a book-to-bill of $1.27 billion. Backlog reached a new record of $30.6 billion, which is growth of 7.7% versus the prior year. And, in fact, that's actually 8.1% when you remove the impact of foreign exchange.

Speaker Change: Obviously, it does take time for funding to translate into RFP flows, but certainly it bodes well for mid-long-term prospects in our EBP segment.

Speaker Change: In a quarter, RDS recorded good net new bookings of approximately $2.7 billion, representing a book-to-bill of $1.27. Backlog reached a new record of $30.6 billion, which is growth of 7.7% versus prior year.

Speaker Change: And in fact, that's actually 8.1% when you remove the impact of foreign exchange.

Ari Bousbib: And, of course, all of our usual forward-looking indicators, RFP flows, overall pipeline, and qualified pipeline are up. Turning now to the results for the quarter. Revenue for the second quarter grew 2.3% on a reported basis and 3.5% at constant currency. Compared to last year and excluding COVID-related work from both periods, we grew the top line 5% at constant currency, including approximately a point and a half from acquisitions. Second quarter adjusted EBITDA increased 2.7%, driven by revenue growth and ongoing cost management discipline. Second quarter adjusted diluted EPS of $2.64 increased 8.6% year over year. Now, I'd like to spend a bit of time on highlighting.

Speaker Change: And, of course, all of our usual forward-looking indicators, our RFP flows, overall pipeline and qualified pipeline are up. Turning now to the results for the quarter. Revenue for the second quarter grew 2.3% on a reported basis and 3.5% at constant currency.

Speaker Change: Compared to last year, and excluding COVID-related work from both periods, we grew the top line 5% at constant currency, including approximately a point and a half from acquisitions.

Speaker Change: Second quarter adjusted EBITDA increased 2.7%, driven by revenue growth and ongoing cost management discipline. Second quarter adjusted diluted EPS of $2.64 increased 8.6% year-over-year.

Ari Bousbib: Some of our business activity, starting with that. Iqvia contracted with a top 20 client to expand the implementation of our commercial technology ecosystem. Iqvia's AI and ML offerings, including analytics and OCE, integrate seamlessly into the client's technology infrastructure and allow a client to manage their data more effectively and to optimize their customer engagement. In the quarter, Iqvia won a multi-year contract with the top five clients to increase the effectiveness of their digital communication strategy. Here, our innovative solution enables targeted audience selection and custom content delivery.

Speaker Change: Now I'd like to spend a bit of time on highlighting some of our business activity, starting with TAZ.

Unknown Executive: Iqvia contracted with a top 20 client to expand implementation of our commercial technology ecosystem. Iqvia's AIML offerings, including analytics and OCE, integrate seamlessly into the client's technology infrastructure and allow our client to manage their data more effectively and to optimize their customer engagement.

Speaker Change: Iqvia contracted with a top 20 client to expand implementation of our commercial technology ecosystem.

Speaker Change: Iqvia's AI ML offerings, including analytics and OCE, integrate seamlessly into the client's technology infrastructure and allow a client to manage their data more effectively and to optimize their customer engagements.

Unknown Executive: In the quarter, Iqvia won a multi-year contract with a top 5 client to increase the effectiveness of the digital communication strategy. Here, our innovative solution enables targeted audience selection and custom content delivery.

Speaker Change: In the quarter, Iqvia won a multi-year contract with the top five clients to increase the effectiveness of the digital communication strategy. Here our innovative solution enables targeted audience selection and custom content delivery.

Ari Bousbib: In our first quarter call, we shared the preview of a large deal awarded in April for our current OCE offering. This is a multi-year global implementation for a major division of the top five pharma clients, with 1000 users, and it's displacing the incumbent. As you know, Iqvia has a rich history of developing AI for healthcare. For the last 10 years, we've invested heavily in artificial intelligence and machine learning algorithms that support our clients from clinical development through commercialization.

Unknown Executive: In our first quarter core, we shared the preview of a large deal awarded in April for our current OCE offering. This is a multi-year global implementation for a major division of a top 5 farmer client with 1,000 users, and it's displacing the incumbent.

Speaker Change: In our first quarter call, we shared a preview of a large deal awarded in April for our current OCE offering.

Speaker Change: This is a multi-year global implementation for a major division of the top five pharma clients with 1,000 users. And it's displacing the incumbent.

Unknown Executive: As you know, IQVIA has a rich history of developing AI for healthcare. For the last 10 years, we've invested heavily in artificial intelligence and machine learning algorithms that support our clients from clinical development through commercialization. Our AI offerings are specifically engineered to meet the demanding standards of precision, speed, privacy, and trust that are required in healthcare.

Speaker Change: As you know, Iqvia has a rich history of developing AI for healthcare. For the last 10 years, we've invested heavily in artificial intelligence and machine learning algorithms.

Ari Bousbib: Our AI offerings are specifically engineered to meet the demanding standards of precision, speed, privacy, and trust that are required in healthcare. Whether it's in patient support services, or analytics, or pharmacovigilance, our proprietary AI software solutions have become market-leading. Let me share a few examples of AI wins and awards in TAS this last quarter. We launched a Gen-AI solution that collects structured and unstructured survey inputs from over 30,000 healthcare professionals across 36 countries in multiple languages.

Speaker Change: that support our clients from clinical development through commercialization. Our AI offerings are specifically engineered to meet the demanding standards of precision, speed, privacy, and trust that are required in healthcare.

Unknown Executive: Whether it's in patient support services or analytics or farmer co-vigilance, our proprietary AI software solutions have become market leading.

Speaker Change: Whether it's in patient support services, or analytics, or pharmacovigilance, our proprietary AI software solutions have become market leading. Let me share a few examples of AI wins and awards in TAS this last quarter.

Unknown Executive: Let me share a few examples of AI means an award in TAS this last quarter. We launched a Gen AI solution which collects structured and unstructured survey inputs from over 30,000 HCPs across 36 countries in multiple languages. And in minutes, delivers analytics and insights to our clients on how their interactions and messages about their brand resonated.

Speaker Change: We launched a Gen-AI solution which collects structured and unstructured survey inputs.

Speaker Change: from over 30,000 HCPs across 36 countries in multiple languages and in minutes delivers analytics and insights to our clients on how their interactions and messages about their brand resonated.

Ari Bousbib: And in minutes, it delivers analytics and insights to our clients on how their interactions and messages about their brands resonate. This work would normally take a week, at least for human analysts using existing tools. A top 10 client awarded Iqvia a contract to implement our centralized GNI reporting and analytics solution across their entire U.S. sales force, consolidating different legacy tools. Iqvia's comprehensive GNI solution enables users to ask questions and get contextual responses in the form of charts, graphs, and KPIs.

Unknown Executive: This work would normally take a week at least for human analysts using existing tools.

Speaker Change: This work would normally take a week at least for human analysts using existing tools.

Unknown Executive: A top 10 client awarded IQVIA contract to implement our centralized Gen AI reporting and analytics solution across their entire US sales force, consolidating different legacy tools. Iqvia's comprehensive Gen AI solution enables users to ask questions and get contextual responses in the form of charts, graphs, and KPIs. This AI solution also practically alerts the user of key trends, anomalies, and the changes that would be required.

Speaker Change: A top-10 client awarded Iqvia a contract to implement our centralized Gen-AI reporting and analytics solution across their entire U.S. sales force, consolidating different legacy tools.

Speaker Change: Iqvia's comprehensive GNI solution enables users to ask questions and get contextual responses in the form of charts, graphs, and KPIs.

Ari Bousbib: This AI solution also proactively alerts the user of key trends, anomalies, and the changes that would be required. In another example, a U.S. medtech client selected Iqvia to implement its AI solution to onboard and train patients to utilize their medical device for diabetes. Iqvia's AI solution incorporates real-time sentiment analysis, provides automated transcription, and Smart Engagement Recommendations. It empowers patients to take more control of their treatment, which, of course, promotes better adherence to treatment protocols.

Speaker Change: This AI solution also proactively alerts the user of key trends, anomalies, and the changes that would be required.

Unknown Executive: In other example, US MedTech clients selected Iqvia to implement Iqvia's AI solution to onboard and train patients to utilize their medical device for diabetes. Iqvia's AI solution incorporates the real-time sentiment analysis, provides automated transcription. and Smart Engagement Recommendations.

Speaker Change: In another example, a U.S. medtech client selected Iqvia to implement Iqvia's AI solution to onboard and train patients to utilize their medical device for diabetes.

Speaker Change: Iqvia's AI solution incorporates real-time sentiment analysis.

Speaker Change: provides automated transcription and smart engagement recommendations. It empowers patients to take more control of their treatment, which of course promotes better adherence to treatment protocols.

Unknown Executive: It empowers patients to take more control of their treatment, which, of course, promotes better adherence to treatment protocols.

Ari Bousbib: Lastly, for AI in TAZ, Iqvia won the award of Best Use of Artificial Intelligence in Healthcare out of 4,500 nominations in the 8th Annual MedTech Breakthrough Award. Iqvia's winning AI solution here is called SmartSol Enterprise Quality Management System, EQMS, which simplifies quality compliance and connects regulatory and quality processes for life sciences customers. Moving to the real world, Iqvia won an effectiveness study with a mid-sized pharma client focusing on patients who have not responded well to their previous migraine treatment.

Unknown Executive: Lastly, for AI in Taz, Iqvia won the award of Best Use of Artificial Intelligence in Healthcare, out of 4,500 nominations in the eighth annual MedTech Breakthrough Awards. Iqvia's winning AI solutions here is called Smart Soul Enterprise Quality Management System, EQMS, which simplifies quality compliance and connects regulatory and quality processes for life sciences customers.

Speaker Change: Lastly, for AI in TAZ, Iqvia won the award of Best Use of Artificial Intelligence in Healthcare out of 4,500 nominations in the 8th Annual MedTech Breakthrough Awards.

Speaker Change: Iqvia's winning AI solution here.

Speaker Change: It's called Smart Solve Enterprise Quality Management System, EQMS, which simplifies quality compliance and connects regulatory and quality processes for life sciences customers.

Unknown Executive: Moving to the real world, Iqvia won an effectiveness study with a mid-sized farmer client focusing on patients who have not responded well to their previous migraine treatments. We were selected due to our strong therapeutic expertise combined with our direct to patient approach to accelerate recruitment and reduce sight burden.

Speaker Change: Moving to the real world.

Speaker Change: Iqvia won an effectiveness study with a mid-sized pharma client focusing on patients who have not responded well to their previous migraine treatments.

Speaker Change: We were selected due to our strong therapeutic expertise combined with our direct-to-patient approach to accelerate recruitment and reduce site burden.

Unknown Executive: A US EBI client awarded IQVIA a real-world post-approval, safety and efficacy study in Japan for their coronary intravascular therapy. The aim of the project is to demonstrate the safety and effectiveness of their device, which could potentially increase the client's market share in Japan, as well as help the client register the device in other regions.

Ari Bousbib: We were selected due to our strong therapeutic expertise combined with our direct-to-patient approach to accelerate recruitment and reduce site burden. A U.S. EBP client awarded Iqvia a real-world post-approval safety and efficacy study in Japan for their coronary intravascular therapy. The aim of the project is to demonstrate the safety and effectiveness of their device, which could potentially increase the client's market share in Japan as well as help the client register the device in other regions.

Speaker Change: A U.S. EBP client awarded Iqvia a real-world post-approval safety and efficacy study in Japan for their coronary intravascular therapy.

Speaker Change: The aim of the project is to demonstrate the safety and effectiveness of their device, which could potentially increase the client's market share in Japan, as well as help the client register the device in other regions.

Unknown Executive: Within the quarter, a top 15 farmer client awarded IQVIA a significant contract to study the effectiveness of a therapy for schizophrenia. The study will use data tokenization to link multiple data sources and then apply AI to provide a comprehensive view of patients pre and post therapy in real world settings to physician, patients, and caretakers.

Ari Bousbib: Within the quarter, a top 15 pharma client awarded Iqvia a significant contract to study the effectiveness of a therapy for schizophrenia. The study will use data tokenization to link multiple data sources and then apply AI to provide a comprehensive view of patients pre- and post-therapy in real-world settings to physicians, patients, and caretakers. Finally, you may have seen that Iqvia was recognized by a respected, independent, third-party research organization as a leader in medical affairs and life sciences regulatory operations.

Speaker Change: Within the quarter, a top 15 pharma client awarded Iqvia a significant contract.

Speaker Change: to study the effectiveness of a therapy for schizophrenia.

Speaker Change: The study will use data tokenization to link multiple data sources and then apply AI to provide a comprehensive view of patients pre- and post-therapy in real-world settings.

Unknown Executive: Finally, you may have seen that Iqvia was recognized by your respected independent third-party research organization as a leader in medical affairs and life sciences regulatory operations. Iqvia's global and end-to-end solutions enable medical affairs customers to manage and curate the richness of data coming into the organization, transforming evidence into insights that can enable actionable initiatives.

Speaker Change: to physicians, patients, and caretakers. Finally, you may have seen that Iqvia was recognized by a respected, independent, third-party research organization as a leader in medical affairs and life sciences regulatory operations.

Ari Bousbib: Iqvia's global end-to-end solutions enable medical affairs customers to manage and curate the richness of data coming into their organization, transforming evidence into insights that can enable actionable initiatives. Let's start with the trending therapeutic area, obesity treatment. A top 15 pharma clients selected Iqvia Labs to conduct globally harmonized high-volume testing to ensure accelerated enrollment. It is expected this will result in a significant reduction in study timelines for this therapeutic area, where speed to market is key.

IQVIA: Iqvia's global end-to-end solutions enable medical affairs customers to manage and curate the richness of data coming into their organization, transforming evidence into insights that can enable actionable initiatives.

Unknown Executive: Let me now move to R&DS. Let's start with a trending therapeutic area: obesity treatments. A top 15 farmer client selected IQVIA Labs to conduct globally harmonized high volume testing to ensure accelerated enrollment. It's expected this will result in a significant reduction of study timelines for this therapeutic area where speed to market is key.

Speaker Change: Let me now move to RNDS. Let's start with the trending therapeutic area, Obesity Treatment.

Speaker Change: A top 15 pharma clients selected Iqvia Labs to conduct globally harmonized high-volume testing to ensure accelerated enrollment.

Speaker Change: It's expected this will result in a significant reduction of study timelines for this therapeutic area where speed to market is key.

Ari Bousbib: Our strength in the vaccine development area led to another major role in conducting a phase three trial for a new influenza vaccine that will enroll approximately 50,000 volunteers. Turning to oncology, which represents once again our largest therapeutic area in R&D as bookings this quarter, I'll offer a few examples.

Unknown Executive: Our strengths in the vaccine development area led to another major rule to conduct a Phase III trial for a new influenza vaccine that will enroll approximately 50,000 volunteers.

Speaker Change: Our strength in the vaccine development area led to another major role to conduct a phase 3 trial for a new influenza vaccine that will enroll approximately 50,000 volunteers.

Unknown Executive: Turning to oncology, which represents once again our largest therapeutic area in R&DS bookings, this call.

Speaker Change: Turning to oncology, which represents, once again, our largest therapeutic area in R&D as bookings this quarter.

Ari Bousbib: A top 20 clients selected Iqvia to conduct a large phase 3 oncology study focusing on small cell lung cancer, a disease with a high need for effective treatments. We won this study due to our strong therapeutic expertise. Data and Analytics Capabilities, as well as our Proven Delivery Approach, which includes a dedicated delivery unit project staffing that is exclusively focused on the client's study. By the way, for some time now, we've been deploying this unique delivery approach for large customers who have an especially complex study portfolio across multiple therapeutic areas. A biotech client selected Iqvia to support a large-scale, global, complex Phase III program to test and validate their innovative cell and gene therapy vaccine for colorectal cancer.

Unknown Executive: I'll offer a few examples. A top 20 client selected IQVIA to conduct a large Phase III oncology study focusing on small cell lung cancer. A disease with a high need for effective treatments.

Speaker Change: I'll offer a few examples. A top 20 clients selected Iqvia to conduct a large phase 3 oncology study focusing on small cell lung cancer, a disease with a high need for effective treatments. We won this study due to our strong therapeutic expertise.

Unknown Executive: We want this study due to our strong therapeutic expertise. Data Analytics Captivities as well as approving delivery approach, which includes a dedicated delivery unit project staffing that is exclusively focused on the client's study.

Speaker Change: Data and Analytics Capabilities, as well as our Proven Delivery Approach.

Speaker Change: which includes a dedicated delivery unit project staffing.

Unknown Executive: By the way, for some time now, we've been deploying this unique delivery approach to large customers who have an especially complex study portfolio across multiple therapeutic areas.

Speaker Change: that is exclusively focused on the client's study. By the way, for some time now, we've been deploying this unique delivery approach for large customers who have an especially complex study portfolio across multiple therapeutic areas.

Unknown Executive: A biotech client selected Iqvia to support the large scale global complex phase three program to test and validate their innovative, selling, inter-up, vaccine for color-rector or cancer.

Speaker Change: A biotech client selected Iqvia to support a large-scale, global, complex Phase III program to test and validate their innovative cell and gene therapy vaccine for colorectal cancer.

Unknown Executive: Lastly, in oncology, a top 25 former client awarded IQVIA a contract to develop an optimal clinical strategy and to execute a bladder cancer study in the U.S. We were awarded this engagement based on IQVIA's AI-enabled site selection and feasibility solutions that will help the client meet aggressive timelines.

Ari Bousbib: Lastly, in oncology, a top 25 pharma client awarded Iqvia a contract to develop an optimal clinical strategy and to execute a bladder cancer study in the U.S. We were awarded this engagement based on Iqvia's AI-enabled site selection and feasibility solutions that will help the client meet aggressive timelines. We discussed AI initiatives in TAZ, and in fact, AI enablement is also pervasive in RDS. A couple of other such examples.

Speaker Change: Lastly, in oncology, a top 25 pharma client awarded Iqvia a contract to develop an optimal clinical strategy and to execute a bladder cancer study in the U.S.

Speaker Change: We were awarded this engagement based on Iqvia's AI-enabled site selection and feasibility solutions that will help the client meet aggressive timelines.

Unknown Executive: I discussed AI initiatives in thousand. In fact, AI-enabled is also pervasive in our DS, a couple of other such examples, a U.S. biotech client awarded Iqvia for full service clinical trials, which are supported by Iqvia's AI-enabled data analytics, increasing the likelihood of successful each trial, reducing the risk of protocol amendments, as well as the need to add countries and sites after the trial starts.

Speaker Change: We discussed AI initiatives in TAZ, and in fact, AI enablement is also pervasive in RDS.

Ari Bousbib: A U.S. biotech client awarded Iqvia four full-service clinical trials to be supported by Iqvia's AI-enabled data and analytics, increasing the likelihood of success for each trial, reducing the risk of protocol amendments, as well as the need to add countries and sites after the trial starts. In another example, we were awarded a pharmacovigilance project by a large biotech client to manage all case processing work worldwide using The Iqvia AI-enabled solution is designed to dramatically improve productivity, reduce costs, and enhance data quality and accuracy.

Speaker Change: A couple of other such examples.

Speaker Change: A U.S. biotech client awarded Iqvia four full-service clinical trials, which are supported by Iqvia's AI-enabled data and analytics.

Speaker Change: increasing the likelihood of success for each trial, reducing the risk of protocol amendments, as well as the need to add countries and sites after the trial starts.

Unknown Executive: In another example, we will reward a format of visionless project by a large biotech client to manage all case processing work worldwide using our AI capabilities. The Iqvia AI-enabled solution is designed to dramatically improve productivity, reduce cost, and enhance data quality and accuracy.

Speaker Change: In another example, we were awarded a pharmacovigilance project by a large biotech client to manage all case processing work worldwide using our AI capabilities.

Speaker Change: The Iqvia AI-enabled solution is designed to dramatically improve productivity, reduce costs, and enhance data quality and accuracy.

Unknown Executive: We will continue to share more exciting AI initiatives across the businesses, hopefully at future investor forums. I now turn it over to Ron for more details on our financial performance.

Ari Bousbib: We will continue to share more exciting AI initiatives across the businesses, hopefully at future investor forums. I now turn it over to Ron for more details on our financial performance. Thanks, Ari, and good morning, everyone.

Speaker Change: We will continue to share more exciting AI initiatives across the businesses, hopefully at future investor forums.

Ronald Bruehlman: Okay, I thank sorry. In good morning everyone, let's start by reviewing revenue. Second quarter revenue of $3,814 million through 2.3% on a reported basis in 3.5% at constant currency. In the quarter, COVID-related revenues were approximately $45 million, which is down about $70 million versus the second quarter of 2023. Including all COVID-related work from both this year and last, constant currency growth was 5%. Technology and analytic solutions revenue was $1,495 million, which was up to 0.7% reported in 3.8% at constant currency. And if we exclude COVID work from both years, it was exactly 4% growth. As you may recall, Q1 2023 was the last quarter with meaningful COVID activity in TAS.

Speaker Change: I'll now turn it over to Ron for more details on our financial performance. Hey, thanks Ari and good morning everyone. Let's start by reviewing revenue.

Ronald E. Bruehlman: Let's start by reviewing revenue. Second quarter revenue of $3,814,000,000 grew 2.3% on a reported basis and 3.5% at constant currency. In the quarter, COVID-related revenues were approximately $45 million, which is down about $70 million versus the second quarter of 2023. Excluding all COVID-related work from both this year and last, constant currency growth was 5%.

Ronald E. Bruehlman: Second quarter revenue of $3,814,000,000 grew 2.3% on a reported basis and 3.5% at constant currency.

Ronald E. Bruehlman: In the quarter, COVID-related revenues were approximately $45 million, which is down about $70 million versus the second quarter of 2023.

Ronald E. Bruehlman: Excluding all COVID-related work from both this year and last, constant currency growth was 5%.

Ronald E. Bruehlman: Technology and Analytics Solutions revenue was $1,495,000,000, which is up 2.7% reported and 3.8% at constant current. And if we exclude COVID work from both years, it was exactly 4% growth. As you may recall, Q1 2023 was the last quarter with meaningful COVID activity intact. R&D solutions revenue of $2,147,000,000 was up 2.4% reported and 3.3% at constant current.

Ronald E. Bruehlman: Technology and Analytics Solutions revenue was $1,495,000,000, which was up 2.7% reported and 3.8% at constant currency.

Ronald E. Bruehlman: And if we exclude COVID work from both years, it was exactly 4% growth. As you may recall, Q1 2023 was the last quarter with meaningful COVID activity in TASC.

Ronald Bruehlman: Are these solutions revenue of $2 billion, $147 million was up to 2.4% reported in 3.3% constant currency? Excluding all COVID-related work growth, the constant currency and R&DS with 6% and lastly, contract sales and medical solutions revenue of $172 million declined 2.3% reported, but grew 2.8% of constant currency. For the first half, total company revenues were $7.551 million, up 2.3% reported and 3.2% at constant currency. Excluding all COVID-related work, growth at constant currency was 5.5%. Technology and analytic solutions revenue for the first half was $2.948 million, up 1.7% reported and 2.4% of constant currency, and excluding all COVID-related work growth at constant currency and taz in the first half was 3.5%.

Ronald E. Bruehlman: R&D Solutions revenue of $2,147,000,000 was up 2.4% reported and 3.3% constant currency.

Ronald E. Bruehlman: Excluding all COVID-related work, growth at constant currency and RNDS was 6%. And lastly, contract sales and medical solutions revenue of $172 million declined 2.3% reported but grew 2.8% at constant current. For the first half, total company revenues were $7,551,000,000, up 2.3% reported and 3.2% at constant currency, excluding all COVID-related work wrote that constant currency was 5.5. Technology and Analytics Solutions revenue for the first half was $2,948,000,000, up 1.7% reported and 2.4% in constant currency.

Ronald E. Bruehlman: Excluding all COVID-related work, growth at constant currency and RNDS was 6%.

Ronald E. Bruehlman: And lastly, contract sales and medical solutions revenue of $172 million declined 2.3% reported but grew 2.8% at constant currency.

Ronald E. Bruehlman: For the first half, total company revenues were $7,551,000,000, up 2.3% reported and 3.2% at constant currency.

Ronald E. Bruehlman: Excluding all COVID-related work, growth at constant currency was 5.5%.

Ronald E. Bruehlman: And excluding all COVID-related work, growth at constant currency in TAS in the first half was 3.5%. R&D Solutions' first half revenue of $4,242,000,000 was up 2.9% at actual FX rates and 3.6% at constant currency. Excluding all COVID-related work, growth at constant currency in R&DFs was 7% for the half.

Ronald E. Bruehlman: Technology and Analytics Solutions revenue for the first half was $2,948,000,000, up 1.7% reported and 2.4% in constant currency.

Ronald E. Bruehlman: And excluding all COVID-related work, growth at constant currency in TAS in the first half was 3.5%.

Ronald Bruehlman: R&D Solutions first half revenue of $4.242 million was up 2.9% at actual FX rates and 3.6% at constant currency, excluding all COVID-related work growth at constant currency, and R&DS was 7% for the half. Lastly, CSMS first half revenue of $361 million increased 0.8% reported and 5% of constant currency. Let's move down the PNL now, adjusted EBITDA was $887 million for the second quarter, representing growth at 2.7%, while first half adjusted EBITDA was $1.749 million, up 2% year every year. Second quarter, gap net income was $33 million and gap the rooted earnings for share was $1.97.

Ronald E. Bruehlman: R&D Solutions first half revenue of $4,242,000,000 was up 2.9% at actual FX rates and 3.6% at constant currency.

Ronald E. Bruehlman: Excluding all COVID-related work, growth at constant currency in R&DS was 7% for the half. And lastly, CSMS first half revenue of $361 million increased 0.8% reported and 5% at constant currency.

Ronald E. Bruehlman: Lastly, CSMS's first half revenue of $361 million increased 0.8% reported and 5% at constant currency. Let's move down to P&L now. Adjusted EBITDA was $887 million for the second quarter, representing growth of 2.7%, while first half adjusted EBITDA was $1 billion. $749 million, up 2% year over year. Second quarter, GAAP net income was $363 million, and GAAP diluted earnings per share was $1.97. For the first half, we had GAAP net income of $651 million, or $3.53 per diluted share. Adjusted net income was $487 million for the second quarter, and adjusted underlying earnings per share were $2.64. For the first half, adjusted net income was $955 million, for $5.18 per share. Now it's already been reviewed.

Ronald E. Bruehlman: Let's move down to P&L now. Adjusted EBITDA was $887 million for the second quarter, representing growth of 2.7 percent, while first half adjusted EBITDA was $1,749,000,000, up 2 percent year to year.

Ronald E. Bruehlman: Second quarter, GAAP net income was $363 million, and GAAP diluted earnings per share was $1.97. For the first half, we had GAAP net income of $651 million.

Ronald Bruehlman: For the first half, we had gap net income of $651 million, or $3.53 of earnings for the rooted share. Adjusted net income was $487 million for the second quarter; adjusted the rooted earnings for share were $2.64. For the first half, adjusted net income was $955 million, or $5.18 per share. Now, it's all you reviewed R&D solutions; rankings were again strong in the quarter. A backlog at June 30th was $30.6 billion, up 7.7% at actual currency and 8.1% at constant currency.

Ronald E. Bruehlman: or $3.53 of earnings per diluted share.

Ronald E. Bruehlman: Adjusted net income was $487 million for the second quarter and adjusted diluted earnings per share were $2.64. For the first half, adjusted net income was $955 million.

Ronald E. Bruehlman: for $5.18 per share.

Ronald E. Bruehlman: R&D solutions bookings were again strong in the quarter. Our backlog at June 30th was $30.6 billion, up 7.7% at actual currency and 8.1% at constant currency. Next 12-month revenue from backlog increased to $7.8 billion, growing 6.9% year-over-year. Okay, let's turn now to the balance sheet. As of June 30th, cash and cash equivalents total $1,545,000,000 in gross debt with $13,258,000,000.

Ronald E. Bruehlman: Now it's already reviewed. R&D solutions bookings were again strong in the quarter. Our backlog at June 30th was $30.6 billion, up 7.7% at actual currency and 8.1% at constant currency.

Ronald Bruehlman: Next 12 month revenue from backlog increased to $7.8 billion, growing 6.9% year over the year.

Ronald E. Bruehlman: Next 12-month revenue from backlog increased to $7.8 billion, growing 6.9% year-over-year.

Ronald Bruehlman: So, let's turn now to the balance sheet. As of June 30th, cash and cash equivalents total $1.545 million; gross debt was $13.258 million. That results in net debt of $11.713 million.

Ronald E. Bruehlman: Let's turn now to the balance sheet. As of June 30th, cash and cash equivalents total $1,545,000,000 in gross debt, which $13,258,000,000

Ronald E. Bruehlman: That results in net debt of $11,713,000,000. Our net leverage ratio ending the quarter was 3.25 times trailing 12-month adjusted EBITDA.

Ronald Bruehlman: Our net leverage ratio ending the quarter was 3.25 times trailing 12 month adjusted EBITDA.

Ronald E. Bruehlman: Our net leverage ratio ending the quarter was 3.25 times trailing 12 month adjusted EBITDA. Second, the second port of cash flow from operations was $588 million, and capital expenditures were $143 million, and that resulted in free cash flow of $445 million. Okay, turning to guidance. With the first half of the year now behind us, and better forward visibility, we're refining our financial guidance for the balance of the year. For the year, we now expect revenue to be between $15,425,000,000 and $15,525,000,000. Adjusted EBITDA should be between $3,705,000,000 and $3,765,000,000, and Adjusted Diluted Earnings per Share between $11.10 and $11.30.

Ronald Bruehlman: Second four to cash flow from operations was $588 million, in capital expenditures were $143 million, and that resulted in free cash flow of $445 million.

Ronald E. Bruehlman: Second port of cash flow from operations was $588 million, and capital expenditures were $143 million, and that resulted in free cash flow of $445 million.

Ronald Bruehlman: Okay, turning the guidance with the first half of the year now behind us and that are forward visibility, we're refining our financial guidance for the balance of the year. For the year, we now expect revenues of between $15 billion, $25 million and $15 billion, $525 million, adjusted EBITDA should be between $3,705 million and $3,765 million and $3,765 million and adjusted to rooted earning shit per share between $11.10 and $11.30. There is no material change to our previous assumptions about COVID-related step-down acquisition impacts and foreign exchange impacts.

Ronald E. Bruehlman: Okay, turning to guidance. With the first half of the year now behind us and better forward visibility, we're refining our financial guidance for the balance of the year.

Ronald E. Bruehlman: For the year, we now expect revenue to be between $15,425,000,000 and $15,525,000,000.

Ronald E. Bruehlman: Adjusted EBITDA should be between $3,705,000,000 and $3,765,000,000 and adjusted diluted earnings per share between $11.10 and $11.30.

Ronald E. Bruehlman: There is no material change to our previous assumptions about COVID-related step down, Acquisition Impacts, and Foreign Exchange Impacts. By segment, and in constant currency, ex-COVID, our full year guidance remains the same, and it's unchanged versus what we gave you back in February, which is to say TAS will grow this year around 5% and RNDS around 7%. Moving now to third quarter guidance, we expect revenue to be between $3,830,000,000 and $3,800,000,000 and $80 million. Adjusted EBITDA is expected to be between $925 million and $950 million, and adjusted diluted EPS is expected to be between $2.76 and $2.86.

Ronald E. Bruehlman: There is no material change to our previous assumptions about COVID-related step-down, acquisition impacts, and foreign exchange impacts.

Ronald Bruehlman: By segment, a constant currency x-COVID or full-year guidance remains the same and it's unchanged versus what we gave you back in February, which is the same task will grow this year around 5% and R&DS in the 7% range. Moving now to third quarter guidance, we expect revenue to be between $3 billion $830 million and $3,800 and $80 million, adjusted EBITDA is expected to be between $925 million and $950 million and adjusted the rooted DPS should be between $2.76 and $2.86. Now our guidance assumes the point exchange rate as of July 18 continued for the bounce of the year.

Ronald E. Bruehlman: By segment, at constant currency, ex-COVID, our full-year guidance remains the same, and it's unchanged versus what we gave you back in February , which is to say TAS will grow this year around 5% and RNDS in the 7% range.

Ronald E. Bruehlman: Moving now to third quarter guidance, we expect revenue to be between $3,830,000,000 and $3,800,000,000.

Ronald E. Bruehlman: and $80 million. Adjusted EBITDA is expected to be between $925 million and $950 million. And adjusted diluted EPS should be between $2.76 and $2.86.

Ronald E. Bruehlman: Our guidance assumes that foreign exchange rates as of July 18th will continue for the balance of the year. So to summarize, we delivered another solid quarter financial performance; R&D, at bookings of $2.7 billion, with a strong book to bill of 1.27, performed well against our expectations. Adjusted diluted earnings per share increased 8.6% year over year. We're now leaving behind the interest expense headwinds and are moving back towards resuming double-digit EPS growth. Free cash flow for the quarter and for the first half was strong, driven by strong collections performance.

Ronald E. Bruehlman: Our guidance assumes that foreign exchange rates as of July 18th continue for the balance of the year.

Ronald Bruehlman: So to summarize, we delivered another solid quarter of financial performance. R&DS had bookings of $2.7 billion with a strong book to bill of $1.27. Task performed well against their expectations. Adjusted the rooted earnings per share increased 8.6% year over year. We're now leaving behind the interest expense headwinds and are moving back towards resuming double-digit EPS growth. Free cash flow for the quarter and for the first half were strong, driven by strong collections performance, and we remain confident that both paths and R&DS will achieve the full-year target for revenue growth we provided at the beginning of the year.

Ronald E. Bruehlman: So to summarize, we delivered another solid quarter of financial performance, R&DS had bookings of $2.7 billion with a strong book-to-bill of $1.27, TAS performed well against our expectations,

Ronald E. Bruehlman: Adjusted diluted earnings per share increased 8.6% year-over-year. We're now leaving behind the interest expense headwinds and are moving back towards resuming double-digit EPS growth.

Ronald E. Bruehlman: Free cash flow for the quarter and for the first half were strong, driven by strong collections performance.

Operator: And we remain confident that both TAS and RNDS will achieve the four-year targets for revenue growth we provided at the beginning of the year. And with that, let me hand it back to the operator to open the session for Q&A. Thank you. At this time, I would like to remind everyone in order to ask, press star, then the number one on your telephone keypad. We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster. Your first question comes from the line of Shlomo Rosenbaum of Stiefel. Your line is open.

Ronald E. Bruehlman: And we remain confident that both TAS and RNDS will achieve the four-year targets for revenue growth we provided at the beginning of the year.

Operator: And with that, let me hand it back to the operator to open the session for Q&A. Thank you. At this time, I would like to remind everyone that in order to ask a question, press star, then the number one on your telephone keypad.

Speaker Change: And with that, let me hand it back to the operator to open the session for Q&A.

Speaker Change: Thank you. At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad. We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster.

Operator: We request that you please limit yourself to just one question so that others in the queue may participate as well. We'll pause for a moment to compile the Q&A roster.

Shlomo Rosenbaum: Your first question comes from the line of Schlomo Rosenbaum, a steeple. Your line is open. Hi, thank you very much for taking my questions. Looks like a very solid quarter in we're seeing the Taz improving, which is definitely heartening.

Speaker Change: Your first question comes from the line of Shlomo Rosenbaum of Stiefel. Your line is open.

Shlomo H. Rosenbaum: Hi, thank you very much for taking my questions. Looks like a very solid quarter, and we're seeing the TAS improving, which is definitely heartening. A question I have, Ari and Ron, is just that the guidance was raised for revenue and EPS at the midpoint, but if you look at the EBITDA guidance, it was lowered a little bit. Maybe you could talk about what's going on and the nature of the revenue that's coming through for the year and maybe just a little bit also in terms of the kind of pacing. We got the third quarter, so we could imply the fourth quarter, and if you could talk a little bit about the ramp you expect in the fourth quarter, thank you. Yeah, thanks.

Shlomo H. Rosenbaum: Hi. Thank you very much for taking my questions. Looks like a very solid quarter, and we're seeing the TAS improving, which is definitely heartening. A question I have, Ari and Ron, is just...

Ari Bousbib: Question I have, Ari, and Ron is just the guidance is raised for revenue and EPS at the midpoint, but if you look at the EBITDA guidance, it was lowered a little bit. Maybe you could talk about what's going on in the nature of the revenue that's coming through for the year. And maybe just a little bit also in terms of the kind of pacing. We got the third quarter, so we could imply the fourth quarter. And if you could talk a little bit about the ramp you expect in the fourth quarter. Thank you. Yeah, thanks so much.

Speaker Change: The guidance was raised for revenue and EPS at the midpoint, but if you look at the EBITDA guidance, it was lowered a little bit.

Speaker Change: Maybe you could talk about what's going on and the nature of the revenue that's coming through for the year, and maybe just a little bit also in terms of the kind of pacing. We got the third quarter, so we could imply the fourth quarter, and if you could talk a little bit about the ramp you expect in the fourth quarter. Thank you.

Ari Bousbib: Look, I wouldn't read much into the, you know, tweaks in the guidance. It's, You know, we review all of our business unit forecasts, and we build all that up, and it falls wherever it falls. We, you know, the FX is slightly more favorable than it was last time we reported, so that kind of is driving a little bit in aggregate, a little bit higher in revenue. Again, I wouldn't read much there.

Ari Bousbib: Look, I wouldn't read much into the, you know, tweaks in the guidance. It's, you know, what we, we, we review all of our business unit forecasts, and we build all that up, and it falls whatever it falls. We, you know, the effects is slightly more favorable than it was last time we reported. So that kind of is driving a little bit in aggregate, the higher, a little bit higher and rather than again, I wouldn't read much there. If it dies, you know, whatever the mix of business fell, okay, you know, when you, you have a little bit more of certain offerings than others and as a result you've got, you know, the margin fell, whatever it fell.

Speaker Change: Thanks, Shlomo. Look, I wouldn't read much into the, you know, tweaks in the guidance.

Speaker Change: You know, we review all of our business unit forecasts and we build all that up and it falls wherever it falls.

Speaker Change: We, you know, the FX is slightly more favorable.

Speaker Change: that it was last time we reported so that kind of is driving a little bit

Speaker Change: In aggregate, the higher, a little bit higher on revenue, again, I wouldn't...

Ari Bousbib: EBITDA, it's your, whatever, mix of business fell, okay, you know, when you, you know, you have a little bit more of certain offerings than others, and as a result, you've got, you know, the margin fell, whatever it fell, but look, we're still, you know, delivering margin growth, and even, I mean, yeah, I see what you mean. Frankly, I didn't even These are small tweaks, and I wouldn't, it could vary, you know, again next quarter, so there's nothing other than wherever the mix of business fell, frankly, we're still delivering at this level. What's the margin expansion here? About 30 basis points at the midpoint and 50 at the high end.

Speaker Change: Read much there.

Speaker Change: Ibida, it's your whatever, the mix of business fell, okay, you know, when you.

Speaker Change: You know, you have a little bit more of a...

Speaker Change: of certain offerings than others. And as a result, you've got, you know, the margin fell, whatever it fell. But look, we, we're still, you know, delivering margin growth and

Ari Bousbib: But look, we’re still, you know, delivering margin growth, and even, I mean, yeah, I see what you mean. I mean, frankly, I didn't even; we don't focus on that. These are small tweaks, and I wouldn't; it could vary, you know, again, next quarter. So there's nothing other than wherever the mix of business fell, frankly. We still delivering, at this level, what's the margin expansion year, about 30 basis points at the midpoint and 50 at the high end. So that's very strong given, you know, the markets we, we've been navigating here from the first half. I think it's largely a better control of CapEx, which in terms, you know, both everybody on DNA.

Speaker Change: Even, I mean, yeah, I see what you mean. I mean, frankly, I didn't even, we don't focus on that. These are small tweaks and I wouldn't.

Speaker Change: It could vary, you know, again, next quarter, so there's nothing other than wherever the mix of business fell, frankly. We're still delivering.

Speaker Change: At this level, what's the margin expansion here? About 30 basis points at the midpoint and 50 at the high end.

Ari Bousbib: So that's very strong given the markets we've been navigating here from the first half. And on the EPS, I think it's largely better control of CAPEX, which in turn, you know, they have more favorability on DNA, and so it's below the line basically, you know, that drives the EPS, the higher point on EPS. Again, these are tweaks; I wouldn't pay for them, and I wouldn't draw a bad conclusion from them.

Speaker Change: So that's very strong, given the markets we've been navigating here for the first half. And on the EPS, I think it's largely better control of CAPEX.

Speaker Change: which in turn, you know, more favorability on DNA.

Ari Bousbib: I said it's below the line, basically, you know, that that drives the EPS, the higher points on EPS. Again, these are tweaks. I wouldn't; I wouldn't draw much conclusion on that.

Speaker Change: And so it's below the line, basically, you know, that drives the EPS, the higher fault on EPS. Again, these are tweaks. I wouldn't, I wouldn't pay much, I wouldn't draw much conclusion on that.

David Windley: Thank you. Your next question comes from line of David Woodley of Jeffries. Your line is open. Hi. Thanks for taking my question. Good morning. Are you talked in some of your recent public commentary about price, pressure, or price expectations from customers and in your opening remarks? You mentioned budget sensitivity. I think in the context of TAS, could you just kind of bring us up to current on your assessment of the market environment in terms of customers' willingness to, you know, to kind of pay your asking price. Good question. I did talk about this and in the past, and there's no change there.

David Howard Windley: Thank you. Your next question comes from the line of David Windley of Jefferies. Your line is open. Hi, thanks for taking my question. Good morning.

Speaker Change: Thank you. Your next question comes from the line of David Windley of Jefferies. Your line is open.

Ari Bousbib: Ari, you've talked in some of your recent public commentary about price pressure or price expectations from customers. And in your opening remarks, you mentioned budget sensitivity, I think, in the context of TAS. Could you just kind of bring us up to date on your assessment of the market environment in terms of customers' willingness to, you know, to kind of pay your asking price? Good question.

David Howard Windley: Hi, thanks for taking my question. Good morning. Ari, you've talked in some of your recent public commentary about

David Howard Windley: price pressure or price expectations from customers. And in your opening remarks, you mentioned budget sensitivity, I think, in the context of TAS. Could you just kind of bring us up to up to current on your assessment of the market environment in terms of

Speaker Change: Customer's willingness to, you know, to kind of pay your asking price.

Ari Bousbib: I did talk about this in the past, and there's no change there. It is true, Again, I mentioned in my introductory remarks, it's not like we've all of a sudden moved to a different bullish environment; clients, large pharma, to focus on that segment first, have announced, I mean, there is barely a large pharma company that has not announced a massive cost-cutting program, multi-billion dollars, and often that comes first with a review of their procurement practices and their vendors, and we are What I said before is still valid.

Speaker Change: Good question. I did talk about this in the past and there's no change there. It is true. Again, I mentioned in my introductory remarks, it's not like we've all of a sudden moved to a different bullish environment.

Ari Bousbib: It is true. Again, I mentioned in my introductory remarks. It's not like we've all of a sudden moved to a different bullish environment; clients large farmer to focus on that segment first. It has a house.

Speaker Change: Large Pharma, to focus on that segment first.

Ari Bousbib: I mean, there is barely a large farmer company that has not announced a massive cost-cutting program, multi-billion dollars, and often that comes first with a review of their procurement practices and their vendors. And we are a top vendor to farmers. So there's no surprise here; what I said before is still valid. Those budgetary constraints persist, the consciousness persists, and of course, you know, we it's not like we can price. Whatever we want. Now clients. Still need to do some projects. Many of them had been postponed and delayed. We see that improving, decision timeline had started to improve and now they've improved more dramatically.

Speaker Change: It has announced, I mean there is barely a large pharma company that has not announced.

Speaker Change: A massive cost-cutting program, multi-billion dollars.

Speaker Change: and often that comes first.

Speaker Change: with a review of their procurement practices, their vendors, and we are a top vendor to pharma. So there's no surprise here. What I said before is still valid. Those budgetary constraints persist.

Ari Bousbib: Those budgetary constraints persist. The cautiousness persists, and of course, you know, it's not like we can price whatever we want. We still need to do some projects. Many of them have been postponed and delayed.

Speaker Change: The Consciousness Persists, and of course, you know, we, it's not like we can price whatever we want.

Speaker Change: Still need to do some projects, many of them have been postponed and delayed.

Ari Bousbib: We see that improving. Decision timelines have started to improve, and now they've improved more dramatically. They're not where they were before this whole cautiousness began, but they have improved significantly, which is why we feel more confident with the forecast and pricing. Yeah, I mean, look, large pharma clients are more disciplined in their spending, and therefore it's a tougher fight out there in terms of negotiations, no question about that. And it's true in TAS, and it's true in RNDS, too.

Speaker Change: We see that improving.

Speaker Change: Decision timeline had started to improve.

Ari Bousbib: They're not where they were before this whole consciousness begun, but they have improved significantly, which is why we feel more confidence with the forecast. The pricing, yeah, I mean, look, large-former clients are more disciplined in their spending, and therefore it's a tougher fight out there in terms of negotiations. No question about that. And it's true in Taz, and it's true in our NDS, frankly.

Speaker Change: And now they've improved more dramatically. They're not...

Speaker Change: where they were before this whole cautiousness begun, but they have improved significantly, which is why we feel more confident with the forecast.

Speaker Change: Next slide. Pricing. Yeah, I mean, look, large pharma clients are more disciplined in their spending, and therefore it's a tougher fight.

Speaker Change: out there in terms of negotiations, no question about that.

Speaker Change: And it's true in TAS and it's true in RNDS, frankly. At the same time, you know, you've got, you know, on the RNDS side, on the CRO side, you get...

Ari Bousbib: At the same time, you know, on the RNDS side, on the CRO side, you get an industry that has kind of segmented itself in a way with three large players and a bunch of smaller ones, including some who are, you know, sometimes desperate for business and becoming more undisciplined with respect to how they go about approaching, you know, their bids and so on, so forth. And obviously, clients fully take advantage of that. You can expect clients fully to take advantage of that.

Ari Bousbib: At the same time, you know, you get, you know, on the R&DS side, on the CRO side, you get really an industry that has kind of segmented itself in a way with three large players, and a bunch of smaller ones, including some who are, you know, sometimes desperate for business, and becoming more undisciplined with respect to how they go about approaching, you know, their expectations for taking advantage of that. So, again, the answer to your question is pricing continues to be tough for the reason that just mentioned, both on the commercial and the R&D side.

Speaker Change: really an industry that has kind of segmented itself in a way with three large players and

Speaker Change: and a bunch of smaller ones including some who are, you know, sometimes desperate for business and becoming more undisciplined with respect to

Speaker Change: to how they go about approaching their bids and so on and so forth, and obviously clients.

Ari Bousbib: So, again, the answer to your question is pricing continues to be tough for the reasons I just mentioned, both on the commercial and the R&D side. We, of course, respond with continued increases in our productivity programs, cost containment programs, as well as a lot of deployment of AI within our own operations. Those things take time. Obviously, there is always a lag when we implement these solutions before we can get the full benefit. But that's what's happening with pricing. Thank you, Dave. Your next question comes from the line of Anne Samuel of J.P. Morgan. Your line is open.

Speaker Change: You can expect clients fully taking advantage of that. So again, the answer to your question is pricing continues.

Speaker Change: To be tough.

Ari Bousbib: We, of course, respond with continued increase in our productivity programs, cost containment programs, as well as a lot of deployment of AI. We've been our own operations. Those things take time; obviously, there is always a lag when we implement these solutions before we can get the full benefit. But that's what's happening on pricing. Thank you, Dave.

Speaker Change: for all the reasons I just mentioned, both on the commercial and the R&D side.

Speaker Change: We, of course, respond with continued increase in our productivity programs.

Speaker Change: Cost Containment Programs, as well as a lot of deployment of AI within our own operations. Those things take time. Obviously, there is always a lag.

Speaker Change: when we implement these solutions before we can get the full benefit. But that's what's happening on pricing. Thank you, David. Yeah, thank you.

Unknown Executive: Thank you. Your next question comes from Line-of-End. Samuel, JP Morgan, your line is open. I think strategic in the question. I was thinking perhaps you could speak a little bit more about the performance of your different business segments within Task. And perhaps where you started to see some of that outperformance, thank you. Yeah, even within task, the different segments. Look, I mean, the data business continues the same; you know, there's no news there, and the rest of the business has become too improved. Secondly, sequentially, you have seen improvements everywhere. You're over your in aggregate. It's up.

Speaker Change: Your next question comes from line of Anne Samuel of J.P. Morgan. Your line is open.

Anne Elizabeth Samuel: Hi, thanks for taking the question. I was thinking perhaps you could speak a little bit more about the performance of your different business segments within TAS and perhaps where you started to see some of that outperformance. Thank you. Yeah, you mean within TAS, the different segments? Look, I mean, the data business continues to be the same. You know, there's no news there.

Anne Elizabeth Samuel: Hi, thanks for taking the question. I was thinking perhaps you could speak a little bit more about the performance of your different business segments within TAS, and perhaps where you started to see some of that outperformance. Thank you.

Speaker Change: Yeah, you mean within TAS, the different segments. Look, I mean, the data business...

Ari Bousbib: And the rest of the business has begun to improve. Sequentially, we've seen improvements everywhere. Year over year, in aggregate, it's up. Again, excluding COVID and FX, the rest of the business, as you know, data is low, single digits, flattish. And the rest of the business in aggregate has started to grow, you know, mid to high single digits overall. The real world, I would say in particular, has picked up significantly this past quarter.

Speaker Change: continues the same, you know, there's no news there. And the rest of the business has become, begun to improve. Sequentially, we've seen improvements everywhere, year over year, in aggregate, it's up.

Unknown Executive: Again, excluding COVID and effects, the rest of the business, as you know, data is low single digits, platysh. And the rest of the business in aggregate has started to grow low, mid to high single digits overall.

Speaker Change: Again, excluding COVID and FX, the rest of the business, as you know, data is low, single digits, flat-ish, and the rest of the business, in aggregate, has started to grow, you know, mid to high single digits overall.

Unknown Executive: But real world, I would say in particular, real world in particular has picked up a significant in this past quarter. That's great to hear. Thank you.

Speaker Change: The real world, I would say in particular, has picked up significantly this past quarter.

Ari Bousbib: That's great to hear. Thank you. Your next question comes from the line of Elizabeth Anderson of Evacor ISI. Your line is... Hi, guys. Thanks so much for the question this morning. Can you talk about the burn rate, maybe in the back half of the year?

Unknown Executive: Your next question comes from line-of-a-lisabeth Anderson, as ever, core ISI; your line is. Open. Hi guys, thanks so much for the question this morning. Can you tell me about the burn rate maybe in the back half of the year? Is that something you could sort of see based on the mix of business at this point that you think could creep up sequentially? How do you kind of view that as we progress through the back half? On the clinical side? Yeah. I mean, look, this fluctuates. First of all, I mean, you know, the report revenue has been nothing really covered in effects.

Speaker Change: That's great to hear. Thank you.

Speaker Change: Your next question comes from the line of Elizabeth Anderson of Evacor ISI. Your line is open.

Elizabeth Hammell Anderson: Is that something you sort of see based on the mix of business at this point? [inaudible] Yeah, I mean, look, this fluctuates. First of all, I mean, even after excluding COVID and FX, it's sometimes hard to predict exactly where pass-throughs are going to come in. And so some of that quarterly fluctuation, if you will, is the mix of pass-throughs. That's essentially what we see this quarter and probably next quarter and then rebounding for the fourth quarter.

Elizabeth Hammell Anderson: Hi guys, thanks so much for the question this morning. Can you talk about the burn rate maybe in the back half of the year? Is that something you sort of see based on the mix of business at this point that you think could creep up sequentially? How do you kind of view that as we progress through the back half? On the clinical side, yeah.

Speaker Change: Yeah, I mean, look, this fluctuates. First of all, I mean, you know, the reported revenue, and even after excluding COVID and FX, you know, sometimes it's hard to

Unknown Executive: You know, sometimes it's hard to predict exactly where the pass throughs are going to come in. Yeah. And so some of that quarterly flood fluctuation, if you will, is a pass through the mix of pass throughs. That's essentially what we see this, what we saw this quarter and probably next quarter, and then rebounding for the fourth quarter. But basically, R&Ds, we see growth exactly where we, where we forecasted it at the beginning of the year, which is, you know, in the, you know, have a disproportionate share of the oncology programs out there. Again, not surprising, the critical decision factors here are therapeutic expertise and the ability to enroll patients, which is where our unique capabilities with data analytics and AI solutions come in.

Speaker Change: predict exactly where pass-throughs are going to come in.

Speaker Change: and so some of that quarterly...

Speaker Change: and The Fluctuation, if you will, is pass-through, the mix of pass-throughs. That's essentially what...

Speaker Change: What we see this what we saw this quarter and probably next quarter and then

Elizabeth Hammell Anderson: But basically, our NDS, we see growth exactly where we forecasted it at the beginning of the year, which is, you know, in the 7 plus percent range after you adjust for COVID and have constant currency. With respect to the mix of offerings, as you know, we do have a disproportionate share of the oncology programs out there. Again, not surprising. The critical decision factors here are therapeutic expertise and the ability to enroll patients, which is where our unique capabilities with data, analytics, and AI solutions come in. And as a result, the mix of our bookings and in our backlog continues to increase towards more complex studies in oncology as well as rare diseases. So the burn rate is largely influenced by that.

Speaker Change: I'm rebounding for the fourth quarter, but basically.

Speaker Change: of RNDS, we see growth exactly where we forecasted it at the beginning of the year, which is after you adjust for COVID and have constant currency in the 7 plus percent range.

Speaker Change: With respect to the mix of offerings, as you know, we do have a disproportionate share of the oncology programs out there. Again, not surprising.

Speaker Change: The critical decision factors here are therapeutic expertise.

Speaker Change: And the ability to enroll patients, which is where our unique capabilities with data, analytics, and AI solutions come in. And as a result,

Unknown Executive: And as a result, the mix of our bookings and in our backlog continues to increase towards those more complex studies in oncology as well as rare diseases. So the burn rate is largely influenced by that. You can see by the way that this is a trend in the industry; it could look at the burn rate for our competitors, and they are also going down.

Speaker Change: The mix of our bookings and in our backlog continues to increase towards those more complex studies in oncology as well as rare diseases.

Ari Bousbib: You can see, by the way, that this is a trend in the industry. You could look at the burn rate for our competitors, and they are also going down. Now, in the first quarter, um, the first quarter backlog burn was seven percent. Is that what I what I recall was seven percent? And Q2 backlog burn was about the same, was a little bit higher, 7.1%. And for the balance of the year, we are expecting it to be very similar. We are encouraged that the next 12 months' bookings are up.

Speaker Change: So, the burn rate is largely influenced by that. You can see, by the way, that this is a trend in the industry. You can look at the burn rate for our competitors, and they are also going down.

Unknown Executive: Now, in the first quarter, the first quarter of backlog burn was, was 7% is that what I recall was 7% and Q2 backlog burn was about the same was a little bit higher, 7.1% and for the balance of the year, we expect it to be very similar. We know we are encouraged that the next 12 months, uh, bookings are up. I think we say it's next 12 months. Moving the next 12 months revenue from backlog is go is 7.8 billion dollars. That's up from what we reported first quarter in my recollection. Screen was it 7.3.

Speaker Change: Now, in the first quarter,

Speaker Change: The first quarter backlog burn was 7%, is that what I recall, was 7%?

Speaker Change: And Q2 backlog burn was about the same, was a little bit higher, 7.1%. And for the balance of the year, we're expecting it to be very similar.

Speaker Change: We are encouraged that the next 12 months' bookings are up. I think we say it's next 12 months' bookings, next 12 months' revenue from backlog.

Ari Bousbib: I think we say it's the next 12 months, the next 12 months' revenue from backlog, uh, is going to be 7.8 billion dollars. That's up from what we reported first quarter. If my recollection is correct, it was 7.3. Yes, it's up 7.3 billion last, and then this quarter was 7.8, that's about 6.9% up. So, you know, we feel confident in our conversion and, consequently, on our burn rate of projects and revenue growth in the balance of the year and next year. Thank you. Your next question comes from the line of Max Smock, from William Blair. Your line is open. Hi, good morning.

Speaker Change: is $7.8 billion. That's up from what we reported first quarter, if my recollection is correct, was it $7.3 billion?

Unknown Executive: Yes, it's up 7.3 billion likes, and then these quarters 7.8, that's about 6.9% up. So, you know, we feel confident in our, in our, in our, you know, conversion and consequently on our burn of projects and revenue go in the balance of the year and next year. Great.

Speaker Change: Yeah.

Speaker Change: It's up 7.3 billion last, and then this quarter 7.8, that's about 6.9% up.

Speaker Change: So, you know, we feel confident in our conversion and, consequently, on our burn of projects and revenue growth.

Unknown Executive: Thank you.

Speaker Change: in the balance of the year and next year.

Maxwell Smock: Your next question comes from the line of Max Smock of William Blair. Your line is open. Hi, good morning. Thanks for taking our questions, and apologies if I missed this, but within R and DS, did you quantify how much RFP flows in the qualified pipeline were up at the end of the second quarter? And then how are you thinking about the timeline for those that convert to potential uptick and bookings? Can we see an acceleration in book to bill above 1.3 times before the end of the year here, or given kind of where we are in the year?

Speaker Change: Great, thanks. Thank you.

Speaker Change: Your next question comes from the line of Max Smock of William Blair. Your line is open.

Maxwell Andrew Smock: Thanks for taking our questions. And apologies if I missed this, but within R&D, did you quantify how much RFP flows in the qualified pipeline were up at the end of the second quarter? And then how are you thinking about the timeline for those that convert to potential upticks in bookings? Could we see an acceleration in book-to-bill above 1.3 times before the end of the year here? Or, given where we are in the year, are we now at a point where you think a more meaningful potential rebound in bookings is more of a 2025 event?

Maxwell Andrew Smock: Hi, good morning. Thanks for taking our questions. And apologies if I missed this, but within R&DS,

Maxwell Andrew Smock: Did you quantify how much RFP flows in the qualified pipeline were up at the end of the second quarter?

Speaker Change: And then, how are you thinking about the timeline for those that convert to potential uptick in bookings? Can we see an acceleration in book-to-bill above 1.3 times before the end of the year here? Or given kind of where we are in the year, are we now at a point where you think a more meaningful potential rebound in bookings is more of a 2025 event? Thank you. Yeah. Thank you, Max. I'm just...

Ari Bousbib: Are we now at a point where you think a more meaningful potential rebound in bookings is more of a 2025 of that. Thank you. Thank you, Max.

Ari Bousbib: Thank you. Yeah, thank you, Max. I'm just laughing here because when did 1.3 become the benchmark?

Ari Bousbib: I'm just we are laughing here because when did 1.3 become the benchmark? I mean, I know we reported amazing over 1.3 book-to-bin ratios in the past couple of years, largely because the COVID studies and so on. But you know, we're very happy with 1.27, and we're happy with 1.2. We're happy; we're happy with these books because they are very, very strong. You're talking about rebound in bookings. We have excellent bookings. I don't know what what you know, we're happy with this performance. There's no rebound. It's it's it's very good. I think the bookings we reported this quarter are the first third highest ever.

Ari Bousbib: I mean, I know we've reported amazing over 1.3 book-to-bill ratios in the past couple of years, largely because of the COVID studies and so on. But, you know, we're very happy with 1.27 and we're happy with 1.2. We're happy. We're happy with these books because they are very, very strong.

Speaker Change: When did 1.3 become the benchmark? I mean, I know we reported amazing over 1.3 book-to-bill ratios in the past couple of years, largely because of the COVID studies and so on.

Speaker Change: But, you know, we're very happy with 1.27, we're happy with 1.2, we're happy with these book reviews. They are very, very strong. And you're talking about a rebound in bookings.

Ari Bousbib: And you're talking about rebound in the book. We have excellent bookings. I don't know what, what you know. We're happy with this performance. There's no rebound. It's, it's, it's very good. I think the bookings reported this quarter are the first, third highest ever. Right. So, I'm not sure what... The question is, with respect to bookings, did you ask about conversion as well? Oh, no, I'm sorry; I didn't. Yeah, you just set such a high bar, Ari.

Speaker Change: We've had excellent bookings. I don't know what.

Speaker Change: We're happy with this performance, there's no rebound, it's very good. I think the bookings we reported this quarter are the third highest ever.

Ari Bousbib: Right, so I'm not sure what the question is with respect to bookings. Did you ask about conversion as well, or no? I'm sorry. I didn't. Yeah, just said such a high high bar. But yeah, it's the first part of the question. That's true. We think the price. Yeah, it's very victim of expectations.

Speaker Change: So, I'm not sure what...

Speaker Change: The question is, with respect to bookings, did you ask about conversion as well, or no, I'm sorry, I didn't.

Ari Bousbib: But yeah, in terms of the first part of the question. That's true. We paid the price. Yeah, that's right. A victim of expectations.

Speaker Change: Yeah, you set such a high bar Ari, but yeah, in terms of the first part of the question. That's true, we paid the price. Yeah, that's right, victim of expectation.

Ari Bousbib: But the first part of my question was just around whether or not you can provide any sort of detail or more detail around just how much RFP flows into the qualified pipeline. Oh, yes. I'm sorry.

Ari Bousbib: But at my first part of the question was just around whether or not you can provide any sort of detail or more detail around just how much RP flows in the qualified pipeline. Oh, yes, I'm sorry. Yeah. So again, RFP flows, total pipeline and qualified pipeline, you know, in this are our app basically all around the qualified pipeline. I think was that number 12%? Was that 12%? Port or pipeline is the app single digits. RFP flows as well, right? What's meetings, right? People have that single digits. Yeah. Got it. Thanks for giving me the question.

Speaker Change: My first part of the question was just around whether or not you can provide any sort of detail or more detail around just how much RFP flows in the Qualified Pipeline. Oh, yes. I'm sorry. Yeah. Yeah. Wow. Yeah. So there are four parts of this. The ETF flow and EOTS flow.

Ari Bousbib: Yeah. Yeah. So again, RFP flows, um, total pipeline and qualified pipeline, you know, in this, are up basically all around the... The qualified pipeline, I think, was up, what was the number? 12%?

Speaker Change: Our app, basically, all around, the qualified pipeline, I think, was up, what's the number, 12%? Was up 12%. Portal pipeline is up single digits.

Ari Bousbib: Was up 12%. Total pipeline is up single digits. RFP Bros. as well, right? Meetings, right. Yeah, RFD blows up by single digits, yeah.

Speaker Change: RFP pros as well, right?

Speaker Change: and Mitt Hines. Mitt Hines, right.

Mitt Hines: Yeah, RFD blows up single digits, yeah.

Ari Bousbib: Got it. Thanks for taking the question. Your next question comes from the line of Jailendra Singh of True Securities. Your line is open.

Unknown Executive: Yeah.

Jailendra P. Singh: Your next question comes from the line of Jailendra Singh of Truth Securities. The line is open. Thank you, and thanks for taking my questions. I want to go back to the individual businesses you talked about in task, RW and consulting both improving second quarter last quarter called out RW some recovery after some slowdown in queue for consulting, taking a step down.

Speaker Change: Got it. Thanks for taking the question. Yeah.

Speaker Change: Your next question comes from the line of Jailendra Singh of True Securities. Your line is open.

Jailendra P. Singh: Thank you. And thanks for taking my questions. I want to go back to the individual businesses you talked about in TAS, RWE and consulting both improving in the second quarter, the last quarter called out RWE, some recovery after some slowdown in Q4, and consulting taking a step down. How are you thinking about these individual businesses as you think about TAS expectations for the second half, considering that recovery in consulting remains relatively volatile? And is RWE back to its mid to high teens growth rate? Or is there still room for recovery there?

Jailendra P. Singh: Thank you and thanks for taking my questions. I want to go back to the individual businesses you talked about in TASC, RWE and consulting, both improving second quarter. Last quarter called out RWE, some recovery after some slowdown in Q4, consulting taking a step down.

Ari Bousbib: How do you think about these individual businesses as you think about task expectations and the second half considering that recovery in consulting remains relatively volatile and is RW back to make to height is growth rate or is still room for recovery. No, I mean, we see overall tyres in the second half in the six to seven percent range at constant currency, okay. That's what we see after, you know, obviously businesses are rolling up their forecasts, and they are always higher than that. But we take some contingency, we evaluate the environment, and we discount that, and that's where we are now in the six to seven percent range in aggregate.

Speaker Change: How are you thinking about these individual businesses as you think about task expectations in the second half, considering that recovery in consulting remains relatively volatile? And is RWE back to mid- to high-teens growth rate, or is there still room for recovery there?

Ari Bousbib: No, I mean, we see overall ties in the second half at constant currency, okay? That's what we see after, you know, obviously businesses are rolling up their forecasts, and they are always higher than that, but we take some contingency, we evaluate the environment, and we discount that, and that's where we are now in the six to seven percent range, in aggregate. And, you know, you can make the assumptions yourself.

Speaker Change: No, I mean, we, we see overall ties in the second half in the six to seven percent.

Speaker Change: range at constant currency. OK, that's what we see after, you know, obviously businesses are rolling up their forecasts and they are always higher than that. But we take some.

Speaker Change: Contingency, we evaluate the environment and we discount that and that's where we are now in the six to seven percent range.

Ari Bousbib: You can see that, you know, to get to that, if 30% of the business is essentially flat, that's the data. So the 70%, you know, has to grow in the high single digits, in aggregate, in order to get us to those numbers. So that's where we see the forecast. And we feel, I should add, very confident based on the leading indicators that we look at. But your real world numbers sound optimistic. Which one?

Ari Bousbib: And, you know, you could make the assumptions yourself; you could see that, you know, to get to that, if 30 percent of the business is essentially flat, it's that's the data. So the 70 percent, you know, has to grow in the high single digits in aggregate in order to get us to those numbers. So that's where we see the forecast, and we feel like the odds really confident based on the really indicators that we look at.

Speaker Change: in aggregate.

Speaker Change: And, you know, you can make the assumptions yourself, you can see that in order to get to that, if 30% of the business is essentially flat, that's the data, so the 70%, you know, has to grow in the high single digits.

Speaker Change: In aggregate, in order to get us to those numbers, so that's where we see the forecast and we feel I should add, very confident based on the leading indicators that we look at.

Ari Bousbib: But here, here, here real world numbers sound optimistic, which was double digits. Yeah, well, no, not yet, not yet, not yet, not yet, not yet, not yet, not yet, not yet, not yet, not yet, not yet, not yet, not yet. But, you know, high single to low things for your world. Thank you.

Speaker Change: But your real-world numbers...

Ari Bousbib: Double digits? Yeah, well, maybe not yet. Not yet. No, no, that's not like teens.

Speaker Change: [inaudible]

Ari Bousbib: And yeah, no, no, not high teens. No, no, maybe it could be low teens. But you know, the high, high single to low teens for the real world. Thank you. Your next question comes from Justin Bowers of DB. Your line is open. Thank you and good morning, everyone.

Speaker Change: Checklist.

Justin Bowers: Your next question, thank you. Your next question comes from one of Justin Bowers of DB; your line is open. Thank you and good morning, everyone. So just in terms of the strength and task and the outlook for the rest of the year, how much of that is. In your sense, the underlying market improving versus IQ via winning its fair share of business with some of the tools that you have. And then part two of that would be what are some of the changes that you've made to manage the part of the business this year versus, let's say, last year at this time.

Speaker Change: Thank you. Your next question comes from the line of Justin Bowers of DB. Your line is open.

Justin D. Bowers: So I'm just in terms of the strength and TAS and the outlook for the rest of the year, how much of that is, in your sense, the underlying market improving versus Iqvia winning its fair share of business with some of the tools that you have, and then part two of that would be, what are some of the changes that you've made? to manage my part of the business this year versus, let's say, last year. Well, thank you.

Justin Bowers: Thank you and good morning everyone. So just in terms of the strength in TAS and

Justin Bowers: The outlook for the rest of the year. How much of that is, in your sense, the underlying market?

Speaker Change: Improving versus Iqvia winning its fair share of business with some of the tools that you have and then part two of that would be what are some of the changes that you've made

Speaker Change: to manage the part of the business this year versus, let's say, last year at this time.

Ari Bousbib: Well, thank you. First of all, it's not like the market is rebounding. I mentioned before that client consciousness and budgetary discipline continues, especially at large farm. It's not didn't go away. But what we did say before was that within the portfolio of offerings that we have, there are certain things that are mission critical for our clients. And what happened last time last year at this time is that we expected those things to happen, and they were pushed to the right. Okay, they were delayed. We said all along that, at some point, those things have to be done.

Ari Bousbib: First of all, it's not like the market is rebounding. I mentioned before that client cautiousness and budgetary discipline continue, especially at large pharma. It didn't go away.

Speaker Change: Well, thank you. First of all, it's not like the market is rebounding, I mentioned before.

Speaker Change: that client consciousness and budgetary discipline continues, especially at large pharma. It's not, didn't go away. But what we did say before,

Ari Bousbib: But what we did say before was that within the portfolio of offerings that we have, there are certain things that are mission critical for our clients. And what happened last time was... Last year at this time, we expected those things to happen, and they were pushed to the right. Okay, they were delayed.

Speaker Change: was that

Speaker Change: Within the portfolio of offerings that we have, there are certain things that are mission-critical for our clients.

Speaker Change: And what happened last time, last year at this time, is that we expected those things to happen.

Ari Bousbib: We said all along that at some point, those things have to be done, and that is what is happening now, and what we see happening in the second half.

Speaker Change: And they were pushed to the right.

Speaker Change: Okay, they were delayed. We said all along that at some point those things have to be done.

Ari Bousbib: And that is what is happening now, and what we see happening in the second half. So we start like the market overall has grown. Is that the segments of the market there are most do for our clients are finally, you know, happening. And they will be happening in the second half. So that's number one for the market. So, from that sense, you could say that the market is a little better in the sense that the clients are willing to spend that money. But again, I mentioned before, the negotiations are tougher. So, to answer the second part of your question, what we're doing differently here is obviously being more responsive to our client needs.

Ari Bousbib: So it's not like the market overall has grown, but the segments of the market that are a must do for our clients are finally, you know, happening, and they will be happening in the second half. So that's number one for the market. So from that sense, you could say that the market is a little better in the sense that clients are willing to spend that money. But again, as I mentioned before, the negotiations are tough.

Speaker Change: And that is what is happening now, and what we see happening in the second half. So it's not like the market overall has grown, it's that the segments of the market that are must-do for our clients are finally, you know, happening.

Speaker Change: And they will be happening in the second half.

Speaker Change: So, that's number one for the market. From that sense, you could say that the market is a little better in the sense that the clients are willing to spend that money.

Ari Bousbib: So to answer the second part of your question, what we're doing differently here is obviously being more responsive to our client needs. We are being more accommodating with their terms, and we are commercially being more aggressive to make sure that we actually do win those projects that the markets are putting out there, and the clients are putting out there for. One quick follow up. In terms of the improving decision-making timelines that you referenced earlier too, is that for, or around some of the stuff that was pushed out to the right? Or is it for some new opportunities as well? Or just something that you're seeing more of. It's true. It's true broadly,

Speaker Change: But, again, I mentioned before, the negotiations are tougher.

Speaker Change: So, to answer the second part of your question, what we are doing differently here is obviously being more responsive to our client needs.

Ari Bousbib: We are being more accommodating with their terms, and we are commercially being more aggressive to make sure that we actually do in those, those projects that the markets are putting out there, the clients are putting out there for a bit.

Speaker Change: We are being more accommodating.

Speaker Change: with their terms, and we are commercially being more aggressive.

Speaker Change: to make sure that we actually do win those projects that the markets are putting out there, the clients are putting out there for bid.

Ari Bousbib: Understood, one quick follow-up: in terms of the improving decision-making timelines that you referenced earlier to you, is that for, is that around some of the stuff that was pushed out to the right, or is that for some new opportunities as well, or just something you're seeing more broadly. Thank you. It's true; it's true broadly. Obviously, the mission-critical stuff is critical and needs to be done. So yeah, that is improving the overall average, but even I would say, even for the rest, I think we've seen improved decision making. Fasted timelines, thank you.

Speaker Change: Understood. One quick follow-up. In terms of the improving decision-making timelines that you referenced earlier too, is that for, is that around some of the stuff that was pushed out to the right or is that for some new opportunities as well or just something that you're seeing more broadly?

Ari Bousbib: Obviously, the mission critical stuff is mission critical and needs to be done. So yeah, that is improving the overall average. But even I would say even for the rest, I think we've seen improved decision-making. Faster timelines.

Speaker Change: Thank you.

Speaker Change: It's true, it's true broadly, obviously the mission-critical stuff is mission-critical and needs to be done, so yeah, that is improving the overall average.

Speaker Change: But even, I would say even for the rest, I think we've seen improved decision making.

Tejas Rajeev Savant: Your next question comes from a line of Tejas, Savant of Morton Stanley; your line is open. Hey guys, good morning, and thanks for the time here. Are you just following up on that line of questioning on TAS? I guess could you share a little bit of color around what gives you confidence to this improved decision making timeline sort of dynamic continues, particularly given.

Ari Bousbib: Thank you. Your next question comes from the line of Tejas Savant of Morgan Stanley. Your line is open. Hey, guys. Good morning, and thanks for your time here.

Speaker Change: Faster Timelines. Thank you.

Speaker Change: Your next question comes from the line of Tejas Savant of Morgan Stanley . Your line is open.

Tejas Rajeev Savant: Ari, just following up on that line of questioning on TAS, could you share a little bit of color around what gives you confidence that this improved decision-making timeline sort of dynamic continues here, particularly given, you know, the election cycle that's sort of heating up as we speak? And then on the analytics and consulting piece within TAS, are you starting to see the work related to those new drug approvals you talked about, both year-to-date and last year, starting to show up in the project backlog, or is that still upside to come heading into year-end and 25?

Tejas Rajeev Savant: Hey guys, good morning and thanks for the time here. Ari, just following up on that line of questioning on TAS, I guess, could you share a little bit of color around what gives you confidence to this improved decision-making timeline, sort of dynamic continues here, particularly given the election cycle that's sort of heating up as we speak. And then on the analytics and consulting piece within TAS, are you starting to see the work related to those new drug approvals you talked about, you know, both year-to-date and last year, starting to show up in the project backlog, or is that still upside to come heading into year-end and 25? Thank you.

Ari Bousbib: You know, the election cycle that's sort of heating up as we speak, and then on the analytics and consulting piece within TAS, are you starting to see the work related to those new drug approvals you talked about in both your today and last year, starting to show up in the project backlog, or is that still upside to come heading into your end and 25. Thank you. Well, you know, I don't think the election has much influence on the day-to-day decision making with respect to launching of drugs, and you know to do to response to the second question.

Tejas Rajeev Savant: Thank you. Thank you. Well, you know, I don't think the election has much influence on the day-to-day decision making with respect to the launch of drugs. And, you know, to respond to the second part of your question, the answer is yes. Those approvals, obviously, you know, it's not common for a client to decide that they're not going to launch a drug that's been approved. So, there is usually a six months to six to nine month timeline between the approval and the time at which the drug is actually launched and the work associated with it comes to us.

Ari Bousbib: Thank you. Well, Luke, I don't think the election has much influence on the day-to-day decision-making.

Speaker Change: with respect to launching of drugs and, you know, to respond to the second part of your question. The answer is yes.

Ari Bousbib: The answer is yes; those approvals, obviously, you know, it's not common for a client site that they know that they're not on the launcher drug that's been approved. So, and there is usually a six months to six to nine months time like before that leads to between the approval and the time in which the drug is actually launch and the work associated with it comes to us. So, not much.

Speaker Change: Those approvals, obviously, it's not common for a client to decide that they're not going to launch a drug that's been approved.

Speaker Change: So and there is usually a six months to six to nine month time like before

Speaker Change: that leads to between the approval and the time at which the drug is actually launched and the work associated with it comes to us.

Ari Bousbib: This was delayed a little bit longer versus what it should have been, and some of this project that should have happened earlier this year are happening in the second half of the year. Again, no surprises here. Thank you.

Speaker Change: So, not much. This was delayed a little bit longer versus what it should have been. And some of these projects that should have happened earlier this year are happening in the second half of the year. Again, no surprises here.

Daniel Leonard: Your next question comes from line of Dan Leonard of UBS. Your line is open. Thank you. So, I have a question on the guidance. It seems that the inferred Q4 sales ramp compared to Q3 is a bit greater than typical. Can you talk about the drivers of that and perhaps even elaborate further on your conviction in the recovery and task in the back half. Thank you.

Ari Bousbib: So not much, this was delayed a little bit longer versus what it should have been. And some of these projects that should have happened earlier this year are happening in the second half of the year. Again, no surprises here. Thank you. Your next question comes from the line of Dan Leonard of UBS. Your line is open. Thank you.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Dan Leonard of UBS. Your line is open.

Daniel Louis Leonard: It seems that the inferred Q4 sales ramp compared to Q3 is a bit greater than typical. Can you talk about the drivers of that and perhaps even elaborate further on your conviction in the recovery in Tasmania in the back half? Thank you. Yeah, you want to answer that, anyone? I mean, look, there's a first of all, there is a recovery in Tasmania.

Speaker Change: Thank you. So I have a question on the guidance. It seems that the inferred Q4 sales ramp compared to Q3 is a bit greater than typical. Can you talk about the drivers of that and perhaps even elaborate further on your conviction in the recovery in TAS in the back half? Thank you.

Ari Bousbib: Yeah, you want to answer that? Anyone here? I mean, look, there's the first of all, there is recovery in task. We just talked about it at length in the past few questions. So that's understandable. Secondly, the compare, you know, is more favorable. We had a deterioration in the fourth quarter last year; it was the lowest quarter of the year last year. And we said all along that there would be a mirror image in 24 versus 23. That is, the first quarter would resemble the fourth quarter; the second quarter would resemble the third quarter, etc. So we do see fourth quarter up.

Speaker Change: Yeah, you want to answer that, anyone? I mean, look, first of all, there is recovery in TAS. We just talked about it at length in the past few questions.

Ari Bousbib: We've just talked about it at length in the past few questions, so that's understandable. Secondly, the comparison, you know, is more favorable. We had a deterioration in the fourth quarter last year. It was the lowest quarter of the year last year, and we said all along that there would be a mirror image, in 24 versus 23. That is, the first quarter will resemble the fourth quarter, the second quarter will resemble the third quarter, etc.

Speaker Change: So that's understandable. Secondly, the compare, you know, is more favorable. We had a deterioration in the fourth quarter last year.

Speaker Change: was the lowest quarter of the year.

Speaker Change: Last year, and we said all along that there would be a mirror image.

Speaker Change: in 24 versus 23, that is the...

Ari Bousbib: So we do see a fourth quarter up. And it's not unusual, by the way; there is seasonality in Q4. You can go back many years; it's always the case that Q4 is much stronger. So these are the three reasons. One, recovery is accelerating, two, comparisons, and three, seasonality, which is not surprising. Anything else, guys, you want to add?

Speaker Change: First quarter will resemble the fourth quarter, the second quarter will resemble the third quarter, etc.

Ari Bousbib: And it's not unusual; by the way, there is a seasonality in Q4 that you can go back many years. It's always the case that Q4 is much stronger. So these are the three reasons. One, recovery in task, accelerating two, compares and three, seasonality, which is not surprising.

Speaker Change: So, we do see a fourth quarter up, but, and it's not unusual by the way, there is a seasonality in Q4 that you can go back many years, it's always the case that Q4 is much stronger. So, these are the three reasons.

Speaker Change: One.

Speaker Change: Recovery does, accelerating, two, compares, and three, seasonality, which is not surprising. Anything else, guys, you want to... No, I think that covers it. Simple as that. Yeah.

Ari Bousbib: Anything else, guys, you want to know? I think that covers it. Thank you.

Charles Reilly: Your next question comes from the line of Charles Reilly of TD Cowan. Your line is open. Oh, yeah, thanks. All right.

Ari Bousbib: No, I think that covers it. Simple as that. Your next question comes from the line of Charles Rhyee of TD Cowan. Your line is open. Yeah, thanks Ari. I want to ask you something about M&A. I think so far you've spent maybe $220 odd million in terms of acquisitions so far in the first half. Can you talk about sort of what the revenue contribution has been? Because I think in the guide, there was about 150 basis points of revenue growth. And just curious, was that in TAS or in RDS, or both?

Speaker Change: Thank you.

Speaker Change: Your next question comes from the line of Charles Rhyee of TD Cowan. Your line is open.

Unknown Executive: I want to ask about M&A. I think so far, you spent maybe it was at a 220-odd million in terms of acquisitions so far in the first half. Can you talk about sort of what the revenue contribution has been? Because I think the guide was about 150 basis points of revenue growth. And just cheers. Has that been in task or in RDS, or both? And how much do you still need to maybe do for the back half of the year? Thanks. Yeah. Thank you so much. Yeah. So look, we said all along that it would be acquisition would contribute to a battle point to our growth this year.

Charles Rhyee: Oh yeah, thanks Ari. I want to ask about M&A. I think so far you've spent maybe, what was it,

Speaker Change: $220-odd million.

Charles Rhyee: In terms of acquisitions so far in the first half, can you talk about sort of what the revenue contribution has been? Because I think in the guide was about 150 basis points.

Charles Rhyee: And, you know, how much, you know, do you still need to maybe do for the back half of the year? Thanks. Yeah, thank you so much.

Charles Rhyee: of Revenue Growth. And just curious, has that been in TAS or in RDS or both? And, you know, how much, you know, do you still need to maybe do for the back half of the year? Thanks.

Ari Bousbib: Yeah, so look, we said all along that acquisitions would contribute to about a point to our growth this year. And we're wishing we would do more acquisitions, but you know, valuations continue to be high, and we are. You know, we have a big pipeline, but it's not always the case that we are able to close. So far for the year, it's a little bit more than a point.

Speaker Change: Yeah, thank you so much. Yeah, so look, we said all along that it would be acquisition would contribute to a battle point.

Ronald Bruehlman: And we wish we do more acquisitions, but valuations could need to be high. And we are, you know, we have a big pipeline, but it's not always the case that we are able to close. So far for the year, it's a little bit more than the points. And it's a little bit more in task than in RDS, but that's it. And a look, because we haven't spent much so far, but we hope to spend more in the second half. And we'll see what happens. Yeah.

Speaker Change: to our growth this year and we wish we would do more acquisitions but you know valuations continue to be high and we are

Speaker Change: You know, we have a big pipeline, but it's not always the case that we are able to close. So far for the year, it's a little bit more than a point.

Ari Bousbib: And it's a little bit more in TAS than in RDS. But that's it. And Luke, we haven't spent much so far, but we hope to spend more in the second half.

Speaker Change: And it's a little bit more in TAS than in RDS, but that's it. And Luke, we haven't spent much so far, but we hope to spend more in the second half, and we'll see what happens. Yeah.

Ari Bousbib: And we'll see what happens. Yeah. Your next question comes from the line of Michael Ryskin of Bank of America. Your line is open.

Unknown Executive: Your next question comes from the line of Michael Ricekin of Bank of America. Your line is open. Great. Thanks for taking the question. I'm not sure you've dressed this before, but there have been a couple of prominent cancellations of clinical trials in the industry in the last couple of months. You called out one specifically on one queue that impacted your performance then and your book to build.

Speaker Change: Your next question comes from the line of Michael Ryskin of Bank of America. Your line is open.

Michael Leonidovich Ryskin: Great, thanks for taking the question. I'm not sure you addressed this before, but there have been a couple of prominent cancellations of clinical trials in the industry in the last couple of months. You called out one specifically on one cue that impacted your performance then and your bookability. I'm just wondering if cancellations have trended any better recently. I know that, you know, the prominent ones always make the news, but I was just wondering what's happening behind, you know, below the surface of that trend.

Speaker Change: Great, thanks for taking the question. I'm not sure you addressed this before but there have been a couple prominent cancellations of clinical trials in the industry in the last couple months. You called out one specifically on one cue that impacted.

Unknown Executive: And just wondering if cancellations have trended any better recently. I know that the prominent ones always make the news, but just wondering what's happening behind, you know, below the surface on that trend. Yeah. No, I mean, look, I mentioned in my commentary, and we've said this every quarter, the past few quarters, and it's just not a secret. The world knows that large-former, you know, largely in response to the IRA and hypothetical impacts down the line, large-former has been re-prioritizing their program. and they've taken off the shelf some programs that they felt were either too competitive with other existing drugs or that didn't have the same risk return profiles that they had assumed pre-IRA when those programs were launched.

Michael Leonidovich Ryskin: I'm just wondering if cancellations have trended any better recently. I know that the prominent ones always make the news, but just wondering what's happening below the surface on that trend.

Ari Bousbib: Yeah, no, I mean, look, I mentioned in my commentary, and we've said this every quarter for the past few quarters, and it's just not a secret. The world knows that large pharma, you know, largely in response to the IRA and hypothetical impacts down the line, large pharma has been re-prioritizing their programs. And they've taken off the shelf some programs that they felt were either too competitive with other existing drugs or that didn't have the same risk return profiles that they had assumed pre-IRA when those programs were on.

Speaker Change: Yeah, no, I mean, look, I mentioned in my commentary, and we've said this every quarter in the past few quarters, and it's just not a secret.

Speaker Change: The world knows that large pharma, largely in response to the IRA and hypothetical impacts down the line, large pharma has been reprioritizing their programs.

Speaker Change: And if taken off the shelf.

Speaker Change: some programs that they felt were either too competitive.

Speaker Change: with other existing drugs or that didn't have the same risk-return profiles that they had assumed pre-IRA when those programs were launched.

Ari Bousbib: So, as a result of that, there have been a little bit more cancellations than usual, really, for the past few quarters. I think, in general, look, we don't tell you what the cancellations are. We report the net booking.

Ari Bousbib: So, as a result of that, there have been a little bit more cancellations than you would expect. I think in general, look, we don't tell you what the cancellations are; we report the net bookings. Our average quarterly cancellations are in the half a billion dollar range; that has been the case for a long time. And that's kind of, you know, $500 million plus or minus whatever, $100 to $200 million; some quarters is less. It could be three or four hundred million; some quarters could be more, six to seven hundred million dollars or more. You know, most of these cancellations are 10, 15, 20, 25 million dollar programs. That last quarter, because it was well publicized and because it was a huge one-time number, we chose to let you know about it; we had had questions.

Speaker Change: So, as a result of that, there have been a little bit more cancellations than usual, really for the past few quarters. I think, in general, look, we don't tell you what the cancellations are. We...

Ari Bousbib: Our average quarterly cancellations are in the half a billion dollar range that has been the case for a long time. And that's kind of, you know, $500 million plus or minus, whatever, 100 to 200 million dollars. Some quarters are less. It could be three or four hundred million. Some quarters could be more, six to seven hundred million dollars or more.

Speaker Change: report the net bookings

Speaker Change: Our average

Speaker Change: quarterly cancellations are in the half a billion dollar range that has been the case for a long time and that's kind of you know 500 million dollars plus or minus

Speaker Change: Whatever, 100 to 200 million dollars to some quarters is less.

Speaker Change: It could be three or four hundred million, some quotas could be more, six to seven hundred million dollars or more.

Ari Bousbib: You know, most of these cancellations are 10, 15, 20, 25 million dollar programs. That last quarter, because it was well publicized and because it was a huge one-time number, we chose to let you know about it. We had questions. Everyone knew that we were the ones doing that program, and on pre-call, we had had questions, so we decided to let you know about it. Yes, that's what it was. It was, I don't remember the exact number, in the quarter billion dollar range, in one shot. But, you know, that could happen.

Speaker Change: Most of these cancellations are $10, $15, $20, $25 million programs.

Speaker Change: That last quarter, because it was well publicized and because it was a huge

Speaker Change: One time number, we chose to let you know about it. We had had questions.

Ari Bousbib: Everyone knew that we were the ones doing that program. And pre-core, we had had questions, so we decided to let you know about it. Yes, that's what it was. I don't remember the exact number in the core billion dollar in one shot. But, you know, that could happen.

Speaker Change: Everyone knew that we were the ones doing that program and pre-call we had had questions so we decided to let you know about it yes that's what what it was it was I don't remember the exact number in the in the quarter billion dollar in one shot

Ari Bousbib: We have no, you know, companies announced usually when they terminate a program. It's partly this reprioritization that I just discussed. And sometimes it's simply because of the data. And in the case of the program that we disclosed last quarter, it wasn't a reprioritization. It was simply that the data wasn't supporting a continuation of the program. And essentially, the program failed, as it often happens in this industry.

Speaker Change: But, you know, that could happen. We have no...

Ari Bousbib: We have no, you know, companies usually announce when they terminate a program. It's partly this reprioritization that I just discussed, and sometimes it's simply because of the data. And in the case of the program that we disclosed last quarter, it wasn't a reprioritization. It was simply that the data wasn't supporting a continuation of the program.

Speaker Change: You know, companies announce usually when they terminate a program, it's partly this reprioritization that I just discussed.

Speaker Change: And sometimes it's simply because of the data. And in the case of the program that we disclosed last quarter, it wasn't a reprioritization. It was simply that the data wasn't supporting a continuation of the program. And essentially, the program failed, as it often happens in this industry.

Ari Bousbib: And essentially, the program failed, as it often happens in this industry. Your next question comes from the line of Jack Wallace of Guggenheim Securities. Your line is open.

Jack Wallace: Your next question comes from the line of Jack Wallace of Guggenheim Securities. Your line is open. Hey, thanks for taking my questions. You just wanted to go back and ask a follow-up to the EBITDA guidance questions from earlier. Are you called out there was some mixed shift impacting margins, the back half of the year, and with the PAS guidance was actually reiterated in the strong sector quarter.

Speaker Change: Your next question comes from the line of Jack Wallace of Guggenheim Securities. Your line is open.

Jack Dawson Wallace: Hey, thanks for taking my questions. I just wanted to go back in and ask a follow-up to the EBITDA guidance questions from earlier. Ari, you called out there was some mixed shift impacting margins in the back half of the year, and with the TAS guidance largely reiterated in the strong second quarter. So I wonder if you could help us get a better understanding of the mixed shift, which sounds like it's intra segment. Thank you. Yeah, I don't think I can give you much more color than that. It's just where the chips fell.

Jack Wallace: Hey, thanks for taking my questions.

Jack Wallace: I just wanted to go back and ask a follow-up to the EBITDA guidance questions from earlier. Ari, you called out that there was some mixed shift impacting margins in the back half of the year.

Ari Bousbib: It's wanted to get help us get a better understanding for the mixed shift, which sounds like it's intra segment. Thank you. Yeah, I don't think I can give you much more confidence than that. He's just where the chips fell. Okay.

Jack Wallace: With the TAS guidance largely reiterated in the strong second quarter, I was wondering if you could help us get a better understanding for the mixed shift, which sounds like it's intra-segment. Thank you.

Ari Bousbib: Yeah, I don't think I can give you much more color than that. It's just where the chips fell, okay?

Ari Bousbib: And I know that this would have attract two questions. You know, we would have, you know, to look at it again at this range. It's just, you know, we just build up our forecast. And that's where the most appropriate range fell. It could be also, you know, we did a little bit more acquisitions this quarter. And generally, acquisitions come in at very low margin the first year. So that could have impacted. It's not a big different number, frankly. So in the in the grand scheme of things. So I can't give you much more confidence. Fair enough.

Ari Bousbib: Okay. So, I know that this would have attracted two questions, you know; we would have, you know, to look at it again at this range. It's just, you know, we just built up our forecasts, and that's where the most appropriate range fell. It could also, you know, we did a little bit more acquisitions this quarter, and generally, acquisitions come in at a very low margin the first year. So that could have impacted it. It's not a big dollar number, frankly, in the grand scheme of things, so I can't give you much more color than that. Fair enough. And then, you know, on the positive side here, right?

Speaker Change: And I know that this would have attracted two questions. You know, we would have, you know, to look at it again, at this range. It's just, you know, we just build up our forecasts and that's where the...

Speaker Change: the most appropriate range fell. It could be also, you know, we did a little bit more acquisitions this quarter and generally acquisitions come in at a very low margin the first year.

Speaker Change: So, that could have impacted, it's not a big number, frankly, so, in the grand scheme of things. So, I can't give you much more color than that.

Ari Bousbib: In OCE, you want a sizable chunk of a top five client. Can you just give us a better understanding of the one or handful of reasons that led that client to switch from the longtime incumbent? Thank you, I think they liked our solution better. I think it gave them, you know, more ability to achieve their goals. I can't go into the details of the program, you know, and that's... Yeah. They just like it better.

Unknown Executive: And then, you know, on the positive side here, right, in the OCE, you'll want a sizable chunk of the top five clients.

Speaker Change: Fair enough. And then, you know, on the positive side here, right, in OCE, you want a sizable chunk of a top five client. Can you just give us a better understanding for the...

Unknown Executive: Can you just give us a better understanding for the, you know, the, you know, one or a handful of reasons that led that client to switch from the long time incumbent. Thank you. Again, I think they liked our solution better. I think it gave them, you know, more ability to achieve their goals. I can't go into the details of the program. Yeah, they just like it better. Thank you.

Speaker Change: The one or handful of reasons that led that client to switch from the longtime incumbent. Thank you.

Speaker Change: I think they liked our solution better. I think it gave them, you know, more ability to achieve their goals. I can't go into the details of the program, you know, and that's

Ari Bousbib: Thank you. Your next question comes from the line of Patrick Donnelly of Citi. Your line is open.

Patrick Donnelly: Your next question comes from the line of Patrick Donnelly of City. Your line is open. Hey, guys, thanks for taking the questions.

Speaker Change: Yeah, they just like it better. Thank you.

Speaker Change: Your next question comes from the line of Patrick Donnelly of Citi. Your line is open.

Patrick Bernard Donnelly: Hey guys, thanks for taking the questions. Ari, you talked a little bit on the capital deployment side about wanting to do more in M&A. Maybe the environment's not too friendly at the moment, but how are you thinking about priorities there? I know you guys are talking about... Unknown Attendee, Michael Ryskin, Aaron Wright, Patrick Donnelly, Michael Ryskin, Aaron Wright, Yeah, when you came, the line came across not a little bit blurry.

Patrick Donnelly: Ari, you took a little bit on the capital deployment side about, you know, wanting to do more in M&A, you know, maybe the environment is too friendly at the moment, but how do you think about the ability there? And then you got the ball back and stock, you know, you seem pretty comfortable with the leverage ratio. Really, the stocks and priorities and the landscape.

Patrick Bernard Donnelly: Hey guys, thanks for taking the questions. Ari, you talked a little bit on the capital deployment side about, you know, wanting to do more in M&A, you know, maybe the environment's not too friendly at the moment, but how are you thinking about

Speaker Change #100: Priorities there, I know you guys have bought back some stock, you know, you seem pretty comfortable with the leverage ratio. Let me just talk through priorities, MBA landscape, and then again, any targets on the leverage side with the debt would be helpful.

Patrick Donnelly: And then again, any targets and leverage signs with the best available.

Patrick Donnelly: Yeah, I you came, the line came across not a little bit blurry, but if I understand, you asked about capital deployment. And acquisitions look, you saw that our cash flow performance was actually very strong in the quarter. And that obviously helped continue to reduce leverage. I think we have on a 12 month training basis, we ended the quarter at 3.25 times EBDA, which is very good. I remind you, we were not too long ago in the high force. And we said that we were going to continue to deliver naturally as EBDA grows. Acquisitions, yeah, we would, you know, look, our long term guidance always contemplates a couple of points of contribution from acquisitions to continue to boost our top line.

Speaker Change #101: Yeah, the line came across not a little bit blurry, but if I understand, you asked about capital deployment.

Ari Bousbib: But if I understand you correctly, you asked about capital deployment and acquisitions. Look, you saw that our cash flow performance was actually very strong in the quarter. And that obviously helped continue to reduce.

Speaker Change #102: and acquisitions. Luke, you saw that our cash flow performance was actually very strong in the quarter and that obviously helped continue to reduce

Ari Bousbib: Oh, Leverage. I think we have on a 12-month training basis. We ended the quarter at 3.25 times EBITDA, which is very good. I remind you, we were not too long ago in the high fours.

Speaker Change #103: Oh, Leverage, I think we have on a 12-month training basis.

Speaker Change #103: We ended the quarter at 3.25 times EBITDA, which is very good. I remind you we were not too long ago in the high 4s.

Ari Bousbib: And we said that we would continue to deliver naturally as EBITDA grows, um, acquisitions, yeah, we would you know look our long-term guidance always contemplates a couple of points of contribution from acquisitions to continue to boost our top line, and so far, we've been able to do just over a point. Obviously, we have a rich pipeline, and it's hard for me to predict what.., you know, what It's just that it's a binary outcome. So I, I don't know. I'm not sure if that was your question, but, uh. That's what I heard.

Speaker Change #103: and we said that we will continue to deliver naturally as EBITDA grows.

Speaker Change #103: Acquisitions, yeah, we would, you know, look, our long-term guidance always contemplates a couple of points of contribution from acquisitions to continue to boost our top line. So far, we've been able to do just over a point.

Ronald Bruehlman: So far, we've been able to do just over a point.

Ronald Bruehlman: Obviously, we have a rich pipeline, and it's hard for me to predict what, you know, what acquisition will be, you know, the second half or in the years to come. It's a binary outcome. So I don't know.

Speaker Change #103: Obviously, we have a rich pipeline, and it's hard for me to predict what acquisition will be in the second half or in the years to come. It's a binary outcome, so I don't know. I'm not sure if that was your question.

Ronald Bruehlman: Not sure if that was your question, but that's what I heard.

Speaker Change #103: That's what I heard.

Matt Skikes: You're next question, the last question operator understood your last question comes from line of Matt Skikes of Goldman Sachs; your line is open. Second morning, please take my questions. Are you mentioned the strong funding trends in EBP segment at the same time you're still seeing some causes in large pharma. How should we think about the potential revenue mix shift of EBP versus large pharma and whether there be any implications for FSP versus full service mix in that?

Speaker Change #104: and many more. I'm sure you'll find it interesting. I hope you enjoyed this video. If you did, please click the Like button and subscribe to my channel. I'll see you in the next video.

Speaker Change #105: This will be the last question.

Ari Bousbib: This will be the last question. Understand? Your last question comes from the line of Matt Skikes of Goldman Sachs. Your line is open. Good morning.

Speaker Change #105: Operator.

Speaker Change #106: Understood. Your last question comes from the line of Matt Skikes of Goldman Sachs. Your line is open.

Matthew Carlisle Sykes: Please take my questions. Ari, you mentioned the strong funding trends and the EBP segment at the same time. You're still seeing some cautions in large pharma. How should we think about the potential revenue mix shift of EBP versus large pharma and would there be any implications for FSP versus full service mix in that?

Matt Skikes: Hi, good morning. Please take my questions. Ari, you mentioned the strong funding trends and EBP segment at the same time.

Matt Skikes: You're still seeing some cautions in large pharma. How should we think about the potential revenue mix shift to VBP versus large pharma, and would there be any implications for FSP versus full service mix in that? Thank you.

Ari Bousbib: Thank you. Well, first of all, you know, when there's a timeline between funding. and, you know, on RFP and then the time like between an RFP and a booking. So, you know, this is a business that has long cycles. So it's good that we have just as we were questioning you not to panic when funding decline. And we said he's not going to affect us for a while. You know, we don't get excited because funding this corridor was very strong. Yeah, it's good for our midterm and long-term prospects, but it's not like it's going to affect the mix.

Ari Bousbib: Thank you. Thank you. Well, first of all, you know, when. There's a timeline between funding and, you know, an RFP and then the timeline between an RFP and a booking. So, you know, this is a business that has long cycles. So it's good that we have, just as we were cautioning you not to panic when funding declines. And we said it's not going to affect us for a while, um, you know, don't get excited because funding this quarter was very strong. Yeah, it's good for our midterm and long-term prospects, but it's not like it's going to affect the mix.

Ari Bousbib: Thank you. Well, Luke, first of all, you know, when, when, you know,

Ari Bousbib: There's a timeline between funding.

Ari Bousbib: and you know on RFP and then the time lag between an RFP and a booking.

Ari Bousbib: So, you know, this is a business that has long cycles, so it's good that we have, just as we were cautioning you not to panic when funding declines.

Ari Bousbib: And we said he's not going to affect us for a while.

Ari Bousbib: You know, we don't get excited because funding this quarter was very strong.

Ari Bousbib: Also, we have a very large backlog, the largest in the industry. And, you know, it's not going to meaningfully change the mix of what we do in the next few quarters and, you know, what's large pharma, what's EBP, what's full service versus what FSP. But you are correct that the more EBP, the more full service, and that certainly helps mitigate the recent trend we've seen where, as we discussed in the past, large pharma has been swinging the pendulum a little bit more towards FSP, as it has happened many times in the history of this industry.

Speaker Change #108: Yeah, it's good for our mid-term and long-term prospects, but it's not like it's going to affect the mix. Also, we are a very large backlog, the largest in the industry, and, you know, it's not going to meaningfully change the mix.

Ari Bousbib: Also, we are a very large backlog, the largest in the industry. And, you know, it's not going to meaningfully change the mix of what we do in the next few quarters. And, you know, what's large farmer was EBP, what's full service versus what FSP, but you are correct that the more EBP, the more full service and that certainly helps mitigate the recent trend we've seen where, as we discussed in the past. Large farmer have been swinging the pendulum a little bit more towards FSP as it has happened many times in the history of this industry.

Speaker Change #109: of what we do in the next few quarters and you know what's large pharma, what's EBP, what's full service versus what FSP. But you are correct that the more EBP, the more full service and that certainly helps mitigate

Speaker Change #109: The recent trend we've seen where, as we discussed in the past.

Speaker Change #109: Large pharma have been swinging the pendulum a little bit more towards FSP as it has happened many times in the history of this industry. So you are correct from that standpoint that, you know, as

Ari Bousbib: So you are correct from that standpoint that, you know, as more EBP funding is there, there'll be more EBP work in quarters to come. And, therefore, when that backlog converts into revenue, there'll be a higher mix of full service versus FSP relative to what it is now.

Ari Bousbib: So you are correct from that standpoint that, you know, as more EBP funding is there, there'll be more EBP work in the quarters to come. And therefore, when that backlog converts into revenue, there'll be a higher mix of full service versus FSP relative to what it is now.

Speaker Change #109: More EBP funding is there, there'll be more EBP work in quarters to come, and therefore when that backlog converts into revenue, there'll be a higher mix of full service versus FSP relative to what it is now.

Unknown Executive: Thank you.

Unknown Executive: With no further time for questions, I now turn the call back over to Mr. Joseph. Thank you. Thank you for taking the time to join us today.

Ari Bousbib: Thank you. With no further time for questions, I now turn the call back over to Mr. Joseph. Thank you. Thank you for taking the time to join us today, and we look forward to speaking with you again during our third quarter 2024 earnings call. The team will be available for the rest of the day to take any follow-up questions you might have. Thank you. Have a good day. This concludes today's conference call. You may now disconnect. Please wait; the conference will begin shortly.

Speaker Change #110: Thank you.

Kerri Joseph: With no further time for questions, I now turn the call back over to Mr. Joseph.

Unknown Executive: And we look forward to speaking to you again on the third quarter of 2024 earnings call. The team will be available for the rest of the day to take any follow-up questions you might have. Thank you.

Joseph: Thank you. Thank you for taking the time to join us today and we look forward to speaking with you again in our third quarter 2024 earnings call. The team will be available for the rest of the day to take any follow-up questions you might have. Thank you. Have a good day.

Unknown Executive: Have a good day.

Operator: This concludes today's conference call. You may know Disconnect.

Operator: Please wait; the conference will begin shortly.

Joseph: This concludes today's conference call. You may now disconnect.

Joseph: . . . .