NEW YORK, N.Y. – Apr. 30, 2019 – Medidata (NASDAQ: MDSO) today announced its financial results for the first quarter of 2019.
“Medidata is at the forefront of driving the digital transformation of life science with our platform, data assets and industry expertise, helping fulfill the mission we set almost 20 years ago to positively impact patients’ lives," said Tarek Sherif, chairman and chief executive officer, Medidata. “While we achieved solid results this quarter, importantly we have laid the foundation for the future with the launch of Acorn AI."
First Quarter 2019 Results
- Total revenue was $173.5 million, an increase of 16% compared with $149.2 million in the first quarter of 2018
- Subscription revenue was $146.9 million, an increase of 16% compared with the first quarter of 2018. Professional services revenue was $26.6 million, an increase of 19% compared with the first quarter of 2018
- GAAP operating income was $5.0 million and non-GAAP operating income1 was $35.9 million, representing a GAAP and non-GAAP operating margin of 2.9% and 20.7%, respectively
- GAAP net income was $11.1 million, or $0.18 per diluted share, compared with $10.3 million, or $0.17 per diluted share, in the first quarter of 2018. Non-GAAP net income1 was $27.9 million, or $0.45 per diluted share, compared with $24.0 million, or $0.40 per diluted share, in the first quarter of 2018. See the non-GAAP reconciliation included in this release for full details of the non-GAAP adjustments
- Total cash and marketable securities were $206.1 million at the end of the quarter, compared with $240.5 million on December 31, 2018
Additional Highlights:
- Remaining 2019 adjusted subscription backlog2 as of March 31, 2019 was $432 million, an increase of $62 million, or 17%, compared with a year ago
- Launched Acorn AI™, a company designed to provide actionable insights by breaking data silos and improving data agility across the entire life science continuum
- Appointed the company’s first-ever Chief Information Officer, Dr. Rama Kondru, an industry visionary and former CIO of Janssen Americas. Additionally, Dr. Rachel Sherman, former principal deputy commissioner of FDA, joined Acorn AI as chief scientific and medical advisor
- In collaboration with the FDA Center for Drug Evaluation and Research (CDER), Medidata will apply a Synthetic Control Arm™ approach to adult historical clinical trial data and extrapolate results to children. The aim is to minimize exposure of children to clinical trials and increase the speed and efficiency of pediatric drug development
- Secured a competitive win with a top 10 medical device company that will use Rave EDC, CTMS and eTMF to standardize operations and increase efficiency across business units
- Revenue retention rate3 was nearly 100% for the quarter
“We had a good start to the year with 16% total revenue growth," said Rouven Bergmann, chief financial officer, Medidata. "With a rock-solid core business, combined with the launch of Acorn AI, we are well positioned for future growth while we focus on expanding our operating margins.”
Conference call details:
Time: Today, April 30, 8 a.m. ET
Conference ID: 9260289
Live dial-in: 1-877-791-0148, domestic
1-647-689-5652, international
Webcast: investors.medidata.com
Replay: 1-800-585-8367, domestic, 1-416-621-4642, international
About Medidata
Medidata is leading the digital transformation of life sciences, with the world's most-used platform for clinical development, commercial, and real-world data. Powered by artificial intelligence and delivered by industry experts, Medidata helps pharmaceutical, biotech, medical device companies, and academic researchers accelerate value, minimize risk and optimize outcomes. Medidata and its companies, Acorn AI and SHYFT, serve more than 1,200 customers and partners worldwide and empower more than 150,000 certified users every day to create hope for millions of patients. Discover the future of life sciences: www.medidata.com
Cautionary Statement
Certain statements made in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Medidata Solutions, Inc. (“Medidata”), including, but not limited to, statements about Medidata’s forecast of financial performance, products and services, business model, strategy and growth opportunities, and competitive position. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. Among other things, the risks and uncertainties include those associated with possible fluctuations in our financial and operating results; integration activities, performance and financial impact of acquired companies; our ability to retain and expand our customer base or increase new business from those customers; and our ability to continue to release, and gain customer acceptance of, new and improved versions of our products. For additional disclosure regarding these and other risks faced by Medidata, see disclosures contained in Medidata’s public filings with the Securities and Exchange Commission, including the “Risk Factors” section of Medidata’s Annual Report on Form 10-K for the year ended December 31, 2018. You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and Medidata undertakes no obligation to update such statements as a result of new information, new developments or otherwise, except as required by law.
(1) Non-GAAP Financial Information
Medidata provides non-GAAP operating income, net income, and net income per share data as a supplement to its operating results. These measures are not in accordance with, or an alternative to, generally accepted accounting principles (GAAP), and may be different from non-GAAP measures used by other companies. Management uses these non-GAAP measures to evaluate its financial results, develop budgets, manage expenditures, and as an important factor in determining variable compensation. In addition, management believes, based on discussions with investors, that these non-GAAP measures enhance investors’ ability to assess Medidata’s historical and projected future financial performance. While management believes these non-GAAP financial measures provide useful supplemental information to investors, there are inherent limitations associated with the use of non-GAAP financial measures. Investors are encouraged to review the attached reconciliations of these non-GAAP financial measures to the nearest comparable GAAP measures.
(2) Adjusted subscription backlog equals subscription backlog plus outstanding intra-year renewals valued at an amount equal to the contracts to be renewed.
(3) Revenue retention rate is calculated as the percentage of prior year revenue attributable to customers retained in the current year.
Click here to download the press release, financial tables and non-GAAP reconciliation.
Investor Contact:
Betsy Frank
917-522-4620
Media Contact:
Erik Snider
646-362-2997