• Q4 2024 Revenue: $536.6 million, a year-over-year increase of 7.7%.
• Full-Year 2024 Revenue: $2.11 billion, an 11.8% increase from 2023.
• Q4 2024 EBITDA: $133.5 million, a 39.3% increase from Q4 2023.
• Full-Year 2024 EBITDA: $480.2 million, a 32.5% increase from 2023.
• Q4 2024 EBITDA Margin: 24.9%, up from 19.2% in Q4 2023.
• Full-Year 2024 EBITDA Margin: 22.8%, compared to 19.2% in 2023.
• Q4 2024 Net Income: $117 million, a 49.5% increase from Q4 2023.
• Full-Year 2024 Net Income: $404.4 million, a 43% increase from 2023.
• Q4 2024 Net Income per Diluted Share: $3.67, compared to $2.46 in Q4 2023.
• Full-Year 2024 Net Income per Diluted Share: $12.63, compared to $8.88 in 2023.
• Cash Flow from Operating Activities (Q4 2024): $190.7 million.
• Cash as of December 31, 2024: $669.4 million.
• Share Repurchases (Q4 and Full-Year 2024): Approximately 527,000 shares for $174.2 million.
• 2025 Revenue Guidance: $2.11 billion to $2.21 billion, flat to 4.8% growth over 2024.
• 2025 EBITDA Guidance: $462 million to $492 million, a decline of 3.8% to growth of 2.5% compared to 2024.
• 2025 Net Income Guidance: $378 million to $402 million.
• 2025 Earnings per Diluted Share Guidance: $11.93 to $12.69.

• Warning! GuruFocus has detected 4 Warning Signs with PSEC.

Release Date: February 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Medpace Holdings Inc (NASDAQ:MEDP) reported a 7.7% year-over-year increase in revenue for Q4 2024, reaching $536.6 million.
• Full-year 2024 revenue grew by 11.8% compared to 2023, totaling $2.11 billion.
• EBITDA for Q4 2024 increased by 39.3% year-over-year, reaching $133.5 million, with a margin improvement to 24.9%.
• Net income for Q4 2024 rose by 49.5% compared to the previous year, amounting to $117 million.
• The company has a strong cash position with $669.4 million in cash as of December 31, 2024, and generated $190.7 million in cash flow from operating activities in Q4 2024.

Negative Points

• The book-to-bill ratio for Q4 2024 was 0.99, indicating a slight decline in new business awards.
• Net new business awards for the full year 2024 decreased by 5.4% compared to the previous year.
• The business environment showed signs of weakening in Q4 2024, with a slight decrease in RFPs compared to Q3.
• Guidance for 2025 indicates flat to low single-digit revenue growth, reflecting challenges in the business environment.
• Elevated cancellation rates in 2024 have impacted the backlog and may continue to affect bookings in the first half of 2025.

Q & A Highlights

Q: Can you elaborate on the factors driving the outperformance in service gross margins, aside from the pass-through mix component? A: Kevin Brady, CFO, explained that the outperformance was primarily due to the productivity of existing staff and the smooth progression of programs in backlog.

Q: What assumptions could lead to achieving the high end of your revenue guidance for 2025? A: Kevin Brady, CFO, stated that an improved business environment and the progression of pre-backlog programs into backlog as awards would be key factors.

Q: Are you surprised by the recent deterioration in the business environment despite a better funding environment in 2024? A: August Troendle, CEO, noted that while RFP flow was fine, the qualitative aspects of projects weren't as robust. He speculated that it might be due to election-related uncertainties or other factors.

Q: How do you expect revenue phasing throughout 2025, and what is the mix between direct and indirect fees? A: Kevin Brady, CFO, expects a linear progression of revenue throughout the year, with indirect fees as a percentage of revenue remaining similar to Q4 2024 levels.

Q: What are the trends in pre-backlog awards and cancellations? A: August Troendle, CEO, mentioned that while the business environment softened slightly in Q4, the flow of pre-backlog awards was still okay. Cancellations decreased in both backlog and pre-backlog phases.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.