What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-10-31 compared with 2024-07-22 · 102 added, 97 removed, 242 unchanged (45% of the section changed)

30 unchanged sentences

For a further discussion of the risks relating to our business, see Part I—Item 1A—“Risk Factors” in our 2023 Form 10-K, as updated in our subsequently filed Quarterly Reports on Form 10-Q.

IQVIA is a leading global provider of advanced analytics, technology solutions and clinical research services to the life sciences industry.

IQVIA creates intelligent connections across all aspects of healthcare through its analytics, transformative technology, big data resources, extensive domain expertise and network of partners.

IQVIA Connected Intelligence delivers actionable insights and powerful solutions with speed and agility — enabling customers to accelerate the clinical development and commercialization of innovative medical treatments that improve healthcare outcomes for patients.

With approximately 88,000 employees, we conduct operations in more than 100 countries.

IQVIA is a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries.

IQVIA’s portfolio of solutions are powered by IQVIA Connected Intelligence™ to deliver actionable insights and services built on high-quality health data, Healthcare-grade AI™, advanced analytics, the latest technologies and extensive domain expertise.

With approximately 88,000 employees in over 100 countries, including experts in healthcare, life sciences, data science, technology and operational excellence, IQVIA is dedicated to accelerating the development and commercialization of innovative medical treatments to help improve patient outcomes and population health worldwide.

We are a global leader in protecting individual patient privacy.

18 unchanged sentences

Foreign Currency Translation

In the first six months of 2024, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies.

In the first nine months of 2024, approximately 30% of our revenues were denominated in currencies other than the United States dollar, which represents approximately 60 currencies.

Because a large portion of our revenues and expenses are denominated in foreign currencies and our financial statements are reported in United States dollars, changes in foreign currency exchange rates can significantly affect our results of operations.

6 unchanged sentences

For information regarding our results of operations for Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions, refer to “Segment Results of Operations” later in this section.

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions)

Revenues $ 3,896 $ 3,736 $ 160 4.3 %

For the second quarter of 2024, our revenues increased $86 million, or 2.3%, as compared to the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $130 million, or 3.5%, reflecting a $56 million increase in Technology & Analytics Solutions, a $69 million increase in Research & Development Solutions, and a $5 million increase in Contract Sales & Medical Solutions.

Six Months Ended June 30, Change

For the third quarter of 2024, our revenues increased $160 million, or 4.3%, as compared to the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $158 million, or 4.2%, reflecting a $118 million increase in Technology & Analytics Solutions, a $42 million increase in Research & Development Solutions, and a $2 million decrease in Contract Sales & Medical Solutions.

Nine Months Ended September 30, Change

(in millions)

Revenues $ 11,447 $ 11,116 $ 331 3.0 %

For the first six months of 2024, our revenues increased $171 million, or 2.3%, as compared to the same period in 2023.

For the first nine months of 2024, our revenues increased $331 million, or 3.0%, as compared to the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $393 million, or 3.5%, reflecting a $188 million increase in Technology & Analytics Solutions, a $189 million increase in Research & Development Solutions, and a $16 million increase in Contract Sales & Medical Solutions.

Cost of Revenues, exclusive of Depreciation and Amortization

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2024 2023 2024 2023

1 unchanged sentence

% of revenues 64.6 % 64.9 % 65.1 % 65.4 %

The $45 million increase in cost of revenues, exclusive of depreciation and amortization, for the three months ended June 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $156 million, or 6.4%, reflecting a $41 million increase in Technology & Analytics Solutions, a $110 million increase in Research & Development Solutions, and a $5 million increase in Contract Sales & Medical Solutions.

The $91 million increase in cost of revenues, exclusive of depreciation and amortization, for the six months ended June 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $324 million, or 6.7%, reflecting a $84 million increase in Technology & Analytics Solutions, a $223 million increase in Research & Development Solutions, and a $17 million increase in Contract Sales & Medical Solutions.

The $92 million increase in cost of revenues, exclusive of depreciation and amortization, for the three months ended September 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $156 million, or 6.4%, reflecting a $70 million increase in Technology & Analytics Solutions, a $88 million increase in Research & Development Solutions, and a $2 million decrease in Contract Sales & Medical Solutions.

The $183 million increase in cost of revenues, exclusive of depreciation and amortization, for the nine months ended September 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $480 million, or 6.6%, reflecting a $154 million increase in Technology & Analytics Solutions, a $311 million increase in Research & Development Solutions, and a $15 million increase in Contract Sales & Medical Solutions.

Selling, General and Administrative Expenses

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in millions)

3 unchanged sentences

13.4 % 13.4 % 13.4 % 13.5 %

The $27 million increase in selling, general and administrative expenses for the three months ended June 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $45 million, or 9.3%, reflecting a $23 million increase in Technology & Analytics Solutions, a $16 million increase in Research & Development Solutions, a $1 million increase in Contract Sales & Medical Solutions, and a $5 million increase in general corporate and unallocated expenses.

The $22 million increase in selling, general and administrative expenses for the six months ended June 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $45 million, or 4.5%, reflecting a $29 million increase in Technology & Analytics Solutions, a $28 million increase in Research & Development Solutions, and a $2 million increase in Contract Sales & Medical Solutions, offset by a $14 million decrease in general corporate and unallocated expenses.

The $20 million increase in selling, general and administrative expenses for the three months ended September 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $19 million, or 3.8%, reflecting a $8 million increase in Technology & Analytics Solutions, a $7 million increase in Research & Development Solutions, and a $4 million increase in general corporate and unallocated expenses.

The $42 million increase in selling, general and administrative expenses for the nine months ended September 30, 2024 as compared to the same period in 2023 included a constant currency increase of approximately $64 million, or 4.3%, reflecting a $37 million increase in Technology & Analytics Solutions, a $35 million increase in Research & Development Solutions, and a $2 million increase in Contract Sales & Medical Solutions, offset by a $10 million decrease in general corporate and unallocated expenses.

Depreciation and Amortization

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2024 2023 2024 2023

2 unchanged sentences

7.1 % 7.9 % 7.1 % 7.3 %

The $10 million and $21 million increase in depreciation and amortization for the three and six months ended June 30, 2024 compared to the same periods in 2023 was primarily the result of an increase in amortization of capitalized software and of intangible assets from acquisitions occurring in 2023 and 2024.

The $19 million decrease in depreciation and amortization for the three months ended September 30, 2024 compared to the same period in 2023 was primarily the result of less amortization of intangible assets from acquisitions.

The $2 million increase in depreciation and amortization for the nine months ended September 30, 2024 compared to the same period in 2023 was primarily the result of an increase in amortization of capitalized software.

Restructuring Costs

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2024 2023 2024 2023

3 unchanged sentences

Interest Income and Interest Expense

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2024 2023 2024 2023

2 unchanged sentences

Interest income includes interest received primarily from bank balances and investments.

The increase for the three and six months ended June 30, 2024 as compared to the same period in 2023 is primarily a result of higher deposit rates.

Interest expense during the three months ended June 30, 2024 decreased compared to the same period in 2023 primarily due to lower debt balances.

For the six months ended June 30, 2024, interest expense increased as a result of higher base rate interest costs across the floating rate debt portfolio.

Other Income, Net

Three Months Ended June 30, Six Months Ended June 30,

The decrease for the three months ended September 30, 2024 as compared to the same period in 2023 is primarily a result of lower global deposit rates.

The increase for the nine months ended September 30, 2024 as compared to the same period in 2023 is primarily a result of higher deposit rates.

Interest expense during the three months ended September 30, 2024 decreased compared to the same period in 2023 primarily due to lower debt balances.

For the nine months ended September 30, 2024, interest expense increased as a result of higher base rate interest costs across the floating rate debt portfolio.

Other Expense (Income), Net

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2024 2023 2024 2023

Other income, net $ (67) $ (16) $ (56) $ (42)

Other income, net for the three months ended June 30, 2024 increased compared to the same period in 2023 primarily due to revaluations of contingent consideration arrangements and to a lesser extent from foreign currency gain on transactions.

Other income, net for the six months ended June 30, 2024 increased compared to the same period in 2023 primarily due to revaluations of contingent consideration arrangements.

Other expense (income), net $ 44 $ (35) $ (12) $ (77)

Other expense (income), net for the three months ended September 30, 2024 increased compared to the same period in 2023 primarily due to foreign currency loss on transactions and to a lesser extent from revaluations of contingent consideration arrangements.

Other expense (income), net for the nine months ended September 30, 2024 decreased compared to the same period in 2023 primarily due to foreign currency loss on transactions.

Income Tax Expense

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

(in millions) 2024 2023 2024 2023

Income tax expense $ 65 $ 51 $ 189 $ 203

Our effective income tax rate was 17.2% and 21.6% in the second quarter of 2024 and 2023, and 16.0% and 20.6% in the first six months of 2024 and 2023, respectively.

Our effective income tax rate in the second quarter and in the first six months of 2024 was favorably impacted compared to the second quarter and first six months of 2023 due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions.

Our effective income tax rate in the second quarter and in the first six months of 2024 and 2023 was also favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

For the second quarter of 2024 and 2023 this impact was $3 million and $2 million, respectively, and for the first six months of 2024 and 2023 this impact was $12 million and $10 million, respectively.

Our effective income tax rate was 18.6% and 14.6% in the third quarter of 2024 and 2023, and 16.8% and 18.7% in the first nine months of 2024 and 2023, respectively.

Our effective income tax rate in the third quarter and in the first nine months of 2024 was favorably impacted due to changes in the geographical mix of earnings amongst the United States and foreign tax jurisdictions.

Our effective income tax rate in the third quarter and first nine months of 2023 was favorably impacted by a reversal of uncertain tax positions relating to tax credit carryforwards in the amount of $21 million.

Our effective income tax rate in the third quarter and in the first nine months of 2024 and 2023 was also favorably impacted as a result of excess tax benefits recognized upon settlement of share-based compensation awards.

For both the third quarter of 2024 and 2023 this impact was $2 million, and for the first nine months of 2024 and 2023 this impact was $14 million and $12 million, respectively.

Numerous foreign jurisdictions have agreed to implement the OECD's Pillar 2 global corporate minimum tax rate of 15% on companies with revenues of at least €750 million, which went into effect in 2024.

We have evaluated the effect of this for the second quarter of 2024 and do not expect any material impacts for 2024.

We will continue to monitor as additional jurisdictions enact Pillar 2 legislation.

We have continued to evaluate the effect of this through the end of the third quarter of 2024 and do not expect any material impacts for 2024.

We will continue to monitor in future periods as additional jurisdictions enact Pillar 2 legislation.

Segment Results of Operations

Revenues and profit by segment are as follows:

Three Months Ended June 30, 2024 and 2023

Three Months Ended September 30, 2024 and 2023

Segment Revenues Segment Profit

8 unchanged sentences

Consolidated $ 3,896 $ 3,736 $ 550 $ 481

Six Months Ended June 30, 2024 and 2023

Nine Months Ended September 30, 2024 and 2023

Segment Revenues Segment Profit

12 unchanged sentences

Technology & Analytics Solutions

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions) 2024 2023 $ %

3 unchanged sentences

Segment profit $ 405 $ 355 $ 50 14.1 %

Six Months Ended June 30, Change

Nine Months Ended September 30, Change

(in millions) 2024 2023 $ %

3 unchanged sentences

Segment profit $ 1,101 $ 1,086 $ 15 1.4 %

Technology & Analytics Solutions’ revenues were $1,495 million for the second quarter of 2024, an increase of $39 million, or 2.7%, over the same period in 2023.

Technology & Analytics Solutions’ revenues were $1,554 million for the third quarter of 2024, an increase of $123 million, or 8.6%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $118 million, or 8.2%, reflecting revenue growth primarily in the Europe and Africa region and to a lesser extent in the Americas region.

Technology & Analytics Solutions’ revenues were $2,948 million for the first six months of 2024, an increase of $48 million, or 1.7%, over the same period in 2023.

Technology & Analytics Solutions’ revenues were $4,502 million for the first nine months of 2024, an increase of $171 million, or 3.9%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $188 million, or 4.3%, reflecting revenue growth primarily in the Europe and Africa region and to a lesser extent in the Americas region.

The constant currency revenue growth for the three and six months ended June 30, 2024 was primarily driven by an increase in information and technology services and to a lesser extent by real world services.

The constant currency revenue growth for the six months ended June 30, 2024 was impacted by a decrease in COVID-19 related work.

The constant currency revenue growth for the three and nine months ended September 30, 2024 was primarily driven by an increase in information and technology services and to a lesser extent by real world services.

The constant currency revenue growth for the nine months ended September 30, 2024 was impacted by a decrease in COVID-19 related work.

Cost of Revenues, exclusive of Depreciation and Amortization

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $33 million, or 3.8%, in the second quarter of 2024 over the same period in 2023.

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $63 million, or 7.3%, in the third quarter of 2024 over the same period in 2023.

This increase included a constant currency increase of approximately $70 million, or 8.1%.

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $64 million, or 3.7%, in the first six months of 2024 over the same period in 2023.

Technology & Analytics Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $127 million, or 4.9%, in the first nine months of 2024 over the same period in 2023.

This increase included a constant currency increase of approximately $154 million, or 5.9%.

The constant currency increase for the three and six months ended June 30, 2024 was mainly related to an increase in costs of acquiring and processing data to support revenue growth.

The constant currency increase for the three and nine months ended September 30, 2024 was mainly related to an increase in compensation and related expenses, and to a lesser extent from increases in reimbursed expenses and costs of acquiring and processing data to support revenue growth.

Selling, General and Administrative Expenses

Technology & Analytics Solutions’ selling, general and administrative expenses increased $15 million, or 7.1%, in the second quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $23 million, or 11.0%.

Technology & Analytics Solutions’ selling, general and administrative expenses increased $19 million, or 4.4%, in the first six months of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $29 million, or 6.7%.

The constant currency increase for the three and six months ended June 30, 2024 was primarily related to an increase in compensation and related expenses.

Technology & Analytics Solutions’ selling, general and administrative expenses increased $10 million, or 4.6%, in the third quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $8 million, or 3.7%.

Technology & Analytics Solutions’ selling, general and administrative expenses increased $29 million, or 4.4%, in the first nine months of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $37 million, or 5.7%.

The constant currency increase for the three and nine months ended September 30, 2024 was primarily related to an increase in compensation and related expenses.

Research & Development Solutions

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions)

3 unchanged sentences

Segment profit $ 498 $ 495 $ 3 0.6 %

Six Months Ended June 30, Change

Nine Months Ended September 30, Change

(in millions)

3 unchanged sentences

Segment profit $ 1,470 $ 1,391 $ 79 5.7 %

Research & Development Solutions’ contracted backlog increased from $29.7 billion as of December 31, 2023 to $30.6 billion as of June 30, 2024, and we expect approximately $7.8 billion of this backlog to convert to revenues in the next twelve months.

Research & Development Solutions’ revenues were $2,147 million for the second quarter of 2024, an increase of $51 million, or 2.4%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $69 million, or 3.3%, reflecting revenue growth primarily in the Americas region and to a lesser extent in the Europe and Africa region.

Research & Development Solutions’ revenues were $4,242 million in the first six months of 2024, an increase of $120 million, or 2.9%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $147 million, or 3.6%, reflecting revenue growth across all regions.

The constant currency revenue growth for the three and six months ended June 30, 2024 was primarily the result of volume-related increases in clinical services and to a lesser extent from volume-related increases in lab testing.

Research & Development Solutions’ contracted backlog increased from $29.7 billion as of December 31, 2023 to $31.1 billion as of September 30, 2024, and we expect approximately $7.8 billion of this backlog to convert to revenues in the next twelve months.

Research & Development Solutions’ revenues were $2,162 million for the third quarter of 2024, an increase of $40 million, or 1.9%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $42 million, or 2.0%, reflecting revenue growth primarily in the Europe and Africa region.

Research & Development Solutions’ revenues were $6,404 million in the first nine months of 2024, an increase of $160 million, or 2.6%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $189 million, or 3.0%, reflecting revenue growth primarily in the Europe and Africa region and to a lesser extent in the Asia-Pacific region.

The constant currency revenue growth for the three and nine months ended September 30, 2024 was primarily the result of volume-related increases in clinical services and to a lesser extent from volume-related increases in lab testing.

The constant currency revenue growth was impacted by a decrease in COVID-19 related work.

Cost of Revenues, exclusive of Depreciation and Amortization

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $14 million, or 1.0%, in the second quarter of 2024 over the same period in 2023.

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $32 million, or 2.3%, in the third quarter of 2024 over the same period in 2023.

This increase included a constant currency increase of approximately $88 million, or 6.2%.

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $23 million, or 0.8%, in the first six months of 2024 over the same period in 2023.

Research & Development Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $55 million, or 1.3%, in the first nine months of 2024 over the same period in 2023.

This increase included a constant currency increase of approximately $311 million, or 7.4%.

The constant currency increase for the three and six months ended June 30, 2024 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services and lab testing.

The constant currency increase for the three and nine months ended September 30, 2024 was primarily related to an increase in compensation and related expenses as a result of volume-related increases in clinical services and lab testing.

Selling, General and Administrative Expenses

Research & Development Solutions’ selling, general and administrative expenses increased $12 million, or 5.7%, in the second quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $16 million, or 7.6%.

Research & Development Solutions’ selling, general and administrative expenses increased $21 million, or 5.0%, in the first six months of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $28 million, or 6.6%.

The constant currency increase for the three and six months ended June 30, 2024 was primarily related to an increase in compensation and related expenses.

Research & Development Solutions’ selling, general and administrative expenses increased $5 million, or 2.3%, in the third quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $7 million, or 3.2%.

Research & Development Solutions’ selling, general and administrative expenses increased $26 million, or 4.1%, in the first nine months of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $35 million, or 5.5%.

The constant currency increase for the three and nine months ended September 30, 2024 was primarily related to an increase in compensation and related expenses.

Contract Sales & Medical Solutions

Three Months Ended June 30, Change

Three Months Ended September 30, Change

(in millions)

3 unchanged sentences

Segment profit $ 12 $ 12 $ — — %

Six Months Ended June 30, Change

Nine Months Ended September 30, Change

(in millions)

3 unchanged sentences

Segment profit $ 34 $ 37 $ (3) (8.1) %

Contract Sales & Medical Solutions’ revenues were $172 million for the second quarter of 2024, a decrease of $4 million, or 2.3%, over the same period in 2023.

This decrease was comprised of constant currency revenue growth of approximately $5 million, or 2.8%, reflecting similar revenue growth in the Europe and Africa and Asia-Pacific regions.

Contract Sales & Medical Solutions’ revenues were $361 million in the first six months of 2024, an increase of $3 million, or 0.8%, over the same period in 2023.

This increase was comprised of constant currency revenue growth of approximately $18 million, or 5.0%, reflecting revenue growth in the Europe and Africa region and to a lesser extent the Asia-Pacific region.

The constant currency revenue growth for the three and six months ended June 30, 2024 was primarily due to volume-related increases in services performed.

Contract Sales & Medical Solutions’ revenues were $180 million for the third quarter of 2024, a decrease of $3 million, or 1.6%, over the same period in 2023.

This decrease was comprised of constant currency revenue decrease of approximately $2 million, or 1.1%.

Contract Sales & Medical Solutions’ revenues were $541 million in the first nine months of 2024, which is consistent with the same period in 2023.

The comparison to the same period in 2023 includes constant currency revenue growth of approximately $16 million, or 3.0%, reflecting revenue growth in the Europe and Africa region and to a lesser extent the Asia-Pacific region.

The constant currency revenue growth for the nine months ended September 30, 2024 was primarily due to volume-related increases in services performed.

Cost of Revenues, exclusive of Depreciation and Amortization

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, decreased $2 million, or 1.3%, in the second quarter of 2024 as compared to the same period in 2023.

This decrease included a constant currency increase of approximately $5 million, or 3.3%.

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $4 million, or 1.3%, in the first six months of 2024 as compared to the same period in 2023.

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, decreased $3 million, or 1.9%, in the third quarter of 2024 as compared to the same period in 2023.

This decrease included a constant currency decrease of approximately $2 million, or 1.3%.

Contract Sales & Medical Solutions’ cost of revenues, exclusive of depreciation and amortization, increased $1 million, or 0.2%, in the first nine months of 2024 as compared to the same period in 2023.

This increase included a constant currency increase of approximately $15 million, or 3.3%.

The constant currency increase for the three and six months ended June 30, 2024 was primarily related to an increase in costs associated with supporting revenue growth.

The constant currency increase for the nine months ended September 30, 2024 was primarily related to an increase in costs associated with supporting revenue growth.

Selling, General and Administrative Expenses

Contract Sales & Medical Solutions’ selling, general and administrative expenses increased $1 million, or 7.1%, in the second quarter of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $1 million, or 7.1%.

Contract Sales & Medical Solutions’ selling, general and administrative expenses increased $2 million, or 6.9%, in the first six months of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $2 million, or 6.9%.

Contract Sales & Medical Solutions’ selling, general and administrative expenses in the third quarter of 2024 were consistent with the same period in 2023.

Contract Sales & Medical Solutions’ selling, general and administrative expenses increased $2 million, or 4.7%, in the first nine months of 2024 as compared to the same period in 2023, which included a constant currency increase of approximately $2 million, or 4.7%.

Liquidity and Capital Resources

7 unchanged sentences

We have and expect to transfer cash from those subsidiaries to the United States and to other international subsidiaries when it is cost effective to do so.

We had a cash balance of $1,545 million as of June 30, 2024 ($663 million of which was in the United States), an increase from $1,376 million as of December 31, 2023.

We had a cash balance of $1,572 million as of September 30, 2024 ($538 million of which was in the United States), an increase from $1,376 million as of December 31, 2023.

Based on our current operating plan, we believe that our available cash and cash equivalents, future cash flows from operations and our ability to access funds under our revolving credit and receivables financing facilities will enable us to fund our operating requirements, capital expenditures, contractual obligations, and meet debt obligations for at least the next 12 months.

6 unchanged sentences

Equity Repurchase Program

As of June 30, 2024, the total stock repurchase authorization under our equity repurchase program (the “Repurchase Program”) was $11,725 million.

As of September 30, 2024, the total stock repurchase authorization under our equity repurchase program (the “Repurchase Program”) was $11,725 million.

The Repurchase Program does not obligate us to repurchase any particular amount of common stock, and it may be modified, extended, suspended or discontinued at any time.

During the six months ended June 30, 2024, we did not repurchase any shares of our common stock under the Repurchase Program.

As of June 30, 2024, we had remaining authorization to repurchase up to $2,363 million of our common stock under the Repurchase Program.

During the nine months ended September 30, 2024, we repurchased 0.8 million shares of our common stock for $200 million under the Repurchase Program.

As of September 30, 2024, we had remaining authorization to repurchase up to $2,163 million of our common stock under the Repurchase Program.

In addition, from time to time, we have repurchased and may continue to repurchase common stock through private or other transactions outside of the Repurchase Program.

As of June 30, 2024, we had $13,328 million of total indebtedness, excluding $1,995 million of additional available borrowings under our revolving credit facility.

Our long-term debt arrangements contain customary restrictive covenants and, as of June 30, 2024, we believe we were in compliance with our restrictive covenants in all material respects.

As of September 30, 2024, we had $13,578 million of total indebtedness, excluding $1,995 million of additional available borrowings under our revolving credit facility.

Our long-term debt arrangements contain customary restrictive covenants and, as of September 30, 2024, we believe we were in compliance with our restrictive covenants in all material respects.

Senior Secured Credit Facilities

As of June 30, 2024, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,695 million, which consisted of $4,700 million principal amounts of debt outstanding, and $1,995 million of available borrowing capacity on the revolving credit facility and standby letters of credit.

As of September 30, 2024, our Fifth Amended and Restated Credit Agreement provided financing through the senior secured credit facilities of up to $6,688 million, which consisted of $4,693 million principal amounts of debt outstanding, and $1,995 million of available borrowing capacity on the revolving credit facility and standby letters of credit.

See Note 7 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional details regarding our credit arrangements.

Receivables Financing Facility

As of June 30, 2024, $110 million of additional amounts of revolving loan commitments were available under the receivables financing facility.

Six months ended June 30, 2024 and 2023

On October 1, 2024, we amended our receivables financing facility to extend the term of the $550 million facility to October 1, 2027.

Under the receivables financing facility, certain of our accounts receivable are sold on a non-recourse basis by certain of our consolidated subsidiaries (each, an “Originator”) to another of our consolidated subsidiaries, a bankruptcy-remote special purpose entity (the “SPE”).

The SPE obtained a term loan and revolving loan commitment from third-party lenders, secured by liens on the assets of the SPE, to finance the purchase of the accounts receivable, which includes a $440 million term loan and a $110 million revolving loan commitment.

As of September 30, 2024, no additional amounts of revolving loans were available under the receivables financing facility.

Nine months ended September 30, 2024 and 2023

Cash Flow from Operating Activities

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions) 2024 2023

Net cash provided by operating activities $ 1,831 $ 1,402

Cash provided by operating activities increased $291 million during the first six months of 2024 as compared to the same period in 2023.

The increase was due to an increase in cash from accounts receivable and unbilled services ($325 million) and from cash-related net income ($58 million), offset by a decrease in other operating assets and liabilities ($88 million) and unearned income ($4 million).

Cash provided by operating activities increased $429 million during the first nine months of 2024 as compared to the same period in 2023.

The increase was due to an increase in cash from accounts receivable and unbilled services ($557 million) and from cash-related net income ($23 million), offset by a decrease in cash from other operating assets and liabilities ($94 million) and unearned income ($57 million).

Cash Flow from Investing Activities

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions) 2024 2023

Net cash used in investing activities $ (1,134) $ (1,391)

Cash used in investing activities decreased $283 million during the first six months of 2024 as compared to the same period in 2023, primarily driven by less cash used for acquisitions of businesses ($223 million), acquisitions of property, equipment and software ($36 million), investments in debt and equity securities ($34 million), purchases of marketable securities, net ($4 million) and cash received from sale of property, equipment and software ($25 million), offset by more cash used in investments in unconsolidated affiliates, net ($36 million) and less cash from other ($3 million).

Cash used in investing activities decreased $257 million during the first nine months of 2024 as compared to the same period in 2023, primarily driven by less cash used for acquisitions of businesses ($220 million), investments in debt and equity securities ($34 million), acquisitions of property, equipment and software ($32 million), purchases of marketable securities, net ($4 million) and cash received from sale of property, equipment and software ($25 million), offset by more cash used in investments in unconsolidated affiliates, net ($52 million) and less cash from other ($6 million).

Cash Flow from Financing Activities

Six Months Ended June 30,

Nine Months Ended September 30,

(in millions) 2024 2023

Net cash (used in) provided by financing activities $ (503) $ 38

Cash used in financing activities increased $548 million during the first six months of 2024 as compared to the same period in 2023, primarily due to less cash from debt issuance, net ($1,232 million), more cash payments on debt and principal payments on finance leases ($9 million) and cash payments related to employee stock incentive plans ($2 million), offset by less cash used for repurchase of common stock ($619 million), payments for contingent consideration and deferred purchase price accruals ($61 million) and for revolving credit facilities, net of repayments ($15 million).

Cash used in financing activities increased $541 million during the first nine months of 2024 as compared to the same period in 2023, primarily due to less cash from debt issuance, net ($1,231 million), more cash payments on debt and principal payments on finance leases ($12 million) and cash payments related to employee stock incentive plans ($3 million), offset by less cash used for repurchase of common stock ($563 million), for revolving credit facilities, net of repayments ($75 million) and payments for contingent consideration and deferred purchase price accruals ($67 million).

Information about our Guarantors and the Issuer of our Guaranteed Securities

7 unchanged sentences

Each Guarantor subsidiary is consolidated by IQVIA Holdings Inc.

as of June 30, 2024 and December 31, 2023.

Refer to Exhibit 22.1 to this Quarterly Report on Form 10-Q for the detailed list of entities included within the obligated group as of June 30, 2024.

as of September 30, 2024 and December 31, 2023.

Refer to Exhibit 22.1 to this Quarterly Report on Form 10-Q for the detailed list of entities included within the obligated group as of September 30, 2024.

The guarantee of a Guarantor subsidiary with respect to the Notes will be automatically and unconditionally released and discharged and shall terminate and be of no further force and effect, and no further action by such Guarantor subsidiary, the Issuer, or U.S.

14 unchanged sentences

The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Financial Position of the obligated group as of:

(in millions) June 30, 2024 December 31, 2023

(in millions) September 30, 2024 December 31, 2023

Total current assets (excluding amounts due from subsidiaries that are non-Guarantors) $ 756 $ 805

5 unchanged sentences

The following table contains summarized combined financial information from the Statements of Unaudited Condensed Consolidated Operations of the obligated group:

Six months ended Twelve months ended

(in millions) June 30, 2024 December 31, 2023

Nine months ended Twelve months ended

(in millions) September 30, 2024 December 31, 2023

Net revenues $ 4,979 $ 6,299

12 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis