Medpace Holdings, Inc. reports first quarter 2024 results

Medpace Holdings, Inc. announced financial results for the first quarter ended March 31, 2024.

First quarter 2024 financial results
Revenue for the three months ended March 31, 2024 increased 17.7% to $511.0 million, compared to $434.1 million for the comparable prior-year period. On a constant currency basis, revenue for the first quarter of 2024 increased 17.6% compared to the first quarter of 2023.

Backlog as of March 31, 2024 increased 18.2% to $2,907.1 million from $2,460.1 million as of March 31, 2023. Net new business awards were $615.6 million, representing a net book-to-bill ratio of 1.20x for the first quarter of 2024, as compared to $555.8 million for the comparable prior-year period. The Company calculates the net book-to-bill ratio by dividing net new business awards by revenue.

For the first quarter of 2024, total direct costs were $355.9 million, compared to total direct costs of $303.9 million in the first quarter of 2023. Selling, general and administrative (SG&A) expenses were $44.1 million in the first quarter of 2024, compared to SG&A expenses of $38.0 million in the first quarter of 2023.

GAAP net income for the first quarter of 2024 was $102.6 million, or $3.20 per diluted share, versus GAAP net income of $72.9 million, or $2.27 per diluted share, for the first quarter of 2023. This resulted in a net income margin of 20.1% and 16.8% for the first quarter of 2024 and 2023, respectively.

EBITDA for the first quarter of 2024 increased 24.6% to $115.7 million, or 22.6% of revenue, compared to $92.8 million, or 21.4% of revenue, for the comparable prior-year period. On a constant currency basis, EBITDA for the first quarter of 2024 increased 24.2% from the first quarter of 2023.

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

Balance sheet and liquidity
The Company’s Cash and cash equivalents were $407.0 million at March 31, 2024, and the Company generated $152.7 million in cash flow from operating activities during the first quarter of 2024. There were no share repurchases in the first quarter of 2024. As of March 31, 2024, the Company had $308.8 million remaining under its authorized share repurchase program.

2024 financial guidance
The company forecasts 2024 revenue in the range of $2.150 billion to $2.200 billion, representing growth of 14.0% to 16.7% over 2023 revenue of $1.886 billion. GAAP net income for full year 2024 is forecasted in the range of $347.0 million to $369.0 million. Additionally, full year 2024 EBITDA is expected in the range of $415.0 million to $445.0 million. Based on forecasted 2024 revenue of $2.150 billion to $2.200 billion and GAAP net income of $347.0 million to $369.0 million, diluted earnings per share (GAAP) is forecasted in the range of $10.79 to $11.47. This guidance assumes a full year 2024 tax rate of 15.0% to 16.0%, interest income of $22.9 million, and 32.1 million diluted shares outstanding. This guidance does not include the potential impact of any share repurchases the Company may make pursuant to the share repurchase program after March 31, 2024.
MB Bureau