IQVIA Holdings Inc. (NYSE:IQV)

The financial data reveals several noteworthy trends and developments over the five-year period ending December 31, 2022.

Revenue and Profitability

Revenues displayed a consistent upward trajectory, increasing from US$10,412 million in 2018 to US$14,410 million in 2022. Gross profit mirrored this trend, growing steadily from US$3,666 million to US$5,028 million, indicating effective management of cost of revenues despite its increase. The gross margin improved over the years, reflecting enhanced operational efficiency or pricing strategies.

Cost Management

Cost of revenues, exclusive of depreciation and amortization, increased steadily, from US$6,746 million in 2018 to US$9,382 million in 2022, though this was proportional to revenue growth. Selling, general, and administrative expenses rose gradually from US$1,716 million to US$2,071 million, a moderate increase relative to revenues, suggesting controlled overhead costs. Depreciation and amortization expenses fluctuated slightly but generally decreased towards 2022, which may reflect asset management or amortization schedule changes. Restructuring costs remained minimal and declined over time, reaching the low of US$28 million in 2022.

Operating Income

Income from operations showed significant improvement, rising sharply from US$741 million in 2018 to US$1,799 million in 2022, nearly a 143% increase. This growth outpaced the revenue increase, highlighting enhanced profitability and operational leverage within the company.

Interest and Other Income/Expense

Interest income remained low and relatively stable, with a slight increase to US$13 million in 2022. Interest expense fluctuated slightly but did not exhibit a clear trend, remaining close to US$400 million annually. Notably, losses on extinguishment of debt intermittently appeared but were not recorded in 2022. Other income (expense), net, showed variability, with positive peaks in 2019 to 2021 but a negative figure in 2022, which suggests varying external or non-operating factors impacting net income.

Income Tax and Pretax Income

Income before income taxes and equity in earnings generally rose substantially, from US$328 million in 2018 to US$1,363 million in 2022. Income tax expense increased correspondingly, peaking at US$260 million in 2022, indicating higher taxable earnings. The tax rate appeared to increase slightly over time, aligned with rising pre-tax income.

Net Income and Earnings from Affiliates

Net income attributable to IQVIA Holdings Inc. exhibited a strong upward trend, with a significant jump from US$259 million in 2018 to US$1,091 million in 2022, demonstrating notable growth in profitability. Equity in earnings (losses) of unconsolidated affiliates was volatile and relatively low in magnitude, with no consistent upward or downward trend, suggesting limited impact on overall profitability. The net income attributable to non-controlling interests decreased over the period and was absent in 2022, which may indicate changes in ownership structure or consolidation practices.