After U.S. markets closed for trading Monday afternoon, global clinical contract research organization (CRO) Medpace Holdings Inc. (MEDP:NASDAQ), a full-service provider of clinical trial development services, announced financial results for Q3/22 ended September 30, 2022.
The company reported that during Q3/22, revenue increased by 29.8% year-over-year to US$383.7 million, compared to US$295.6 million in Q3/21. The firm noted that on a constant currency basis, revenues rose 31.9% versus Q3/21.
Medpace Holdings indicated that in Q3/22, its backlog rose by 20.9% y-o-y US$2.2 billion, up from US$1.8 billion at the end of Q3/21. The firm added that in Q3/22, it booked new orders totaling US$470.9 million, compared to the US$408.0 million that was booked in Q3/21, and indicated that its net book-to-bill ratio in the latest quarter was 1.23x.
Medpace Holdings provided some forward guidance and stated that for FY/22, it expects revenues of US$1.440-1.460 billion. The firm noted that this represents a 26.95% (midpoint) increase over the US$1.142 billion it recorded in FY/21.
The firm listed that in Q3/22, total direct costs were US$264.7 million, compared to US$208.5 million in Q3/21. The company advised further that during Q3/21, selling, general, and administrative expenses totaled US$35.4, versus US$28.0 million in Q3/21.
The company reported that for Q3/22, it posted a GAAP net income of US$66.0 million, or US$2.05 per diluted share, versus a GAAP net income of US$48.6 million, or US$1.29 per diluted share in Q3/21. Medpace pointed out that its net income margin improved to 17.2% of revenue in Q3/22, compared with 16.4% in Q3/21. The firm added that Q3/22 EBITDA rose 48.5% to US$89.3 million, compared to US$60.1 million in Q3/21.
Medpace stated that for the nine months ended September 30, 2022, it had total year-to-date revenue of US$1,065.9 million, which was 27.8% above the amount it registered during the first nine months of FY/21.
During this same period, the firm advised that it recorded a GAAP net income of US$176.7 million or US$5.18 per diluted share, and EBITDA of US$227.7 million, compared to a GAAP net income of US$131.8 million, or US$3.49 per diluted share and EBITDA of US$161.7 million during the first nine months of FY/21.
The company reported that at the end of Q3/22, it held US$31.0 million in cash and cash equivalents on its balance sheet. Medpace mentioned that during Q3/22, it generated US$108.5 million in cash flow from operations and utilized those funds to pay down the balance of its short-term credit facility by US$110.0 million to approximately US$139.7 million.
The company additionally mentioned that its Board of Directors authorized the repurchase of up to US$500.0 million of the firm's common stock on October 21, 2022, at the company's discretion thru either market or private channels.
Medpace Holdings provided some forward guidance and stated that for FY/22, it expects revenues of US$1.440-1.460 billion. The firm noted that this represents a 26.95% (midpoint) increase over the US$1.142 billion it recorded in FY/21.
The company added for FY/22, it expects to earn a GAAP net income of US$232.0-236.0 million and EBITDA of US$302.0-310.0 million. The firm added that based upon an average of 33.7 million diluted shares outstanding, it estimates that for FY/22, it will earn a GAAP net income of US$6.88-7.00/share.
The company advised that for FY/23, it estimates that it will achieve total revenue of US$1.680-1.740 billion. The firm added that it expects that FY/23 EBITDA will be between US$325.0 million and US$350.0 million.
Medpace is a global clinical contract research organization (CRO) based in Cincinnati, Ohio, that offers full-service Phase 1 to Phase 4 clinical development services to companies in the biotech, medical device, and pharmaceutical industries.
The company provides services across most major treatment areas, including anti-viral, anti-infective, cardiology, central nervous system, endocrinology, oncology, and metabolic diseases. The firm employs around 5,000 employees in 40 countries in North America, Europe, and Asia.
Medpace began the day yesterday with a market cap of around US$4.92 billion, with approximately 31.0 million shares outstanding and a short interest of about 7.1%. MEDP shares opened 27% higher yesterday at US$202.45 (+US$43.81, +27.62%) over the previous day's US$158.64 closing price. The stock has traded between US$202.38 and US$224.42 per share and closed for trading at US$218.46.
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