After U.S. markets closed for trading yesterday 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 increase by 29.8% year-over-year to $383.7 million, compared to $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 $2.2 billion, up from $1.8 billion at the end of Q3/21. The firm added that in Q3/22 it booked new orders totaling $470.9 million, compared to the $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.
The firm listed that in Q3/22 total direct costs were $264.7 million, compared to $208.5 million in Q3/21. The company advised further that during Q3/21 selling, general and administrative expenses totaled $35.4, versus $28.0 million in Q3/21.
The company reported that for Q3/22 it posted GAAP net income of $66.0 million, or $2.05 per diluted share, versus GAAP net income of $48.6 million, or $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 by 48.5% to $89.3 million, compared to $60.1 million I Q3/21.
Medpace stated that for the nine months ended September 30, 2022, it had total year-to-date revenue of $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 GAAP net income of $176.7 million, or $5.18 per diluted share and EBITDA of $227.7 million, compared to GAAP net income of $131.8 million, or $3.49 per diluted share and EBITDA of $161.7 million during the first nine months of FY/21.
The company reported that at the end of Q3/22, it held $31.0 million in cash and cash equivalents on its balance sheet. Medpace mentioned that during Q3/22 it generated $108.5 million in cash flow from operations and utilized those funds to pay down the balance of its short-term credit facility by $110.0 million to approximately $139.7 million.
The company additionally mentioned that its Board of Directors authorized the repurchase of up to $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 $1.440-1.460 billion. The firm noted that this represents a 26.95% (midpoint) increase over the $1.142 billion it recorded in FY/21.
The company added for FY/22 it expects to earn GAAP net income of $232.0-236.0 million and EBITDA of $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 GAAP net income of $6.88-7.00/share.
The company advised that for FY/23 it estimates that it will achieve total revenue of $1.680-1.740 billion. The firm added that it expects that FY/23 EBITDA will be between $325.0 million and $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 with a market cap of around $4.92 billion with approximately 31.0 million shares outstanding and a short interest of about 7.1%. MEDP shares opened 27% higher today at $202.45 (+$43.81, +27.62%) over yesterday's $158.64 closing price. The stock has traded today between $202.38 and $224.42 per share and is currently trading at $218.33 (+$59.69, +37.636%).
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