FALSE000166839700016683972024-02-122024-02-12

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________________________________________
FORM 8-K
______________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 12, 2024
______________________________________________________
Medpace Holdings, Inc.
(Exact name of Registrant as Specified in Its Charter)
______________________________________________________
Delaware001-3785632-0434904
(State or Other Jurisdiction
of Incorporation)		(Commission File Number)(IRS Employer
Identification No.)
5375 Medpace Way
Cincinnati, Ohio
45227
(Address of Principal Executive Offices)(Zip Code)
Registrant’s Telephone Number, Including Area Code: 513 579-9911
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
______________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)		Name of each exchange on which registered
Common Stock $0.01 par valueMEDPNASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02 Results of Operations and Financial Condition.
On February 12, 2024, Medpace Holdings, Inc. (the “Company”) issued a press release announcing its financial results for the three and twelve months ended December 31, 2023. The full text of the press release was posted on the Company’s internet website and is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information contained in, or incorporated into, Item 2.02, including the press release attached as Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference to such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
MEDPACE HOLDINGS, INC.
Date:February 12, 2024By:/s/ Kevin M. Brady
Kevin M. Brady, Chief Financial Officer


Exhibit 99.1
medpace-logoxonxwhite.jpg
Investor Contact:
Lauren Morris
513.579.9911 x11994
l.morris@medpace.com
FOR IMMEDIATE RELEASE
Media Contact:
Julie Hopkins
513.579.9911 x12627
j.hopkins@medpace.com
Medpace Holdings, Inc. Reports Fourth Quarter and Full Year 2023 Results
•Revenue of $498.4 million in the fourth quarter of 2023 increased 26.5% from revenue of $394.1 million for the comparable prior-year period, representing a backlog conversion rate of 18.5%.
•Net new business awards were $614.7 million in the fourth quarter of 2023, representing an increase of 26.7% from net new business awards of $485.1 million for the comparable prior-year period, which resulted in a net book-to-bill ratio of 1.23x.
•Fourth quarter of 2023 GAAP net income was $78.3 million, or $2.46 per diluted share, versus GAAP net income of $68.7 million, or $2.12 per diluted share, for the comparable prior-year period. Net income margin was 15.7% and 17.4% for the fourth quarter of 2023 and 2022, respectively.
•EBITDA was $95.8 million for the fourth quarter of 2023, an increase of 19.2% from EBITDA of $80.4 million for the comparable prior-year period, resulting in an EBITDA margin of 19.2%.
CINCINNATI, OHIO, February 12, 2024-- Medpace Holdings, Inc. (Nasdaq: MEDP) (“Medpace”) today announced financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter 2023 Financial Results
Revenue for the three months ended December 31, 2023 increased 26.5% to $498.4 million, compared to $394.1 million for the comparable prior-year period. On a constant currency basis, revenue for the fourth quarter of 2023 increased 26.0% compared to the fourth quarter of 2022.
Backlog as of December 31, 2023 increased 20.2% to $2,813.0 million from $2,339.6 million as of December 31, 2022. Net new business awards were $614.7 million, representing a net book-to-bill ratio of 1.23x for the fourth quarter of 2023, as compared to $485.1 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 fourth quarter of 2023, total direct costs were $361.6 million, compared to total direct costs of $278.4 million in the fourth quarter of 2022. Selling, general and administrative (SG&A) expenses were $42.5 million in the fourth quarter of 2023, compared to SG&A expenses of $33.4 million in the fourth quarter of 2022.
GAAP net income for the fourth quarter of 2023 was $78.3 million, or $2.46 per diluted share, versus GAAP net income of $68.7 million, or $2.12 per diluted share, for the fourth quarter of 2022. This resulted in a net income margin of 15.7% and 17.4% for the fourth quarter of 2023 and 2022, respectively.
EBITDA for the fourth quarter of 2023 increased 19.2% to $95.8 million, or 19.2% of revenue, compared to $80.4 million, or 20.4% of revenue, for the comparable prior-year period. On a constant currency basis, EBITDA for the fourth quarter of 2023 increased 21.3% from the fourth quarter of 2022.



1

Full Year 2023 Financial Results
Revenue for the year ended December 31, 2023 increased 29.2% to $1,885.8 million, compared to $1,460.0 million for the year ended December 31, 2022. On a constant currency basis, revenue increased 28.9% for the year ended December 31, 2023 compared to the year ended December 31, 2022.
For the year ended December 31, 2023, net new business awards were $2,356.7 million, representing a net book-to-bill ratio of 1.25x, compared to $1,829.5 million for the year ended December 31, 2022.
For the full year 2023, total direct costs were $1,361.3 million, compared to $1,027.6 million in the full year 2022. For the full year 2023, SG&A expenses were $161.4 million, compared to $131.4 million for the full year 2022.

GAAP net income for the full year 2023 was $282.8 million, or $8.88 per diluted share, versus GAAP net income of $245.4 million, or $7.28 per diluted share, for the full year 2022. This resulted in a net income margin of 15.0% and 16.8% for the full year 2023 and 2022, respectively.
EBITDA for the full year 2023 increased 17.7% to $362.5 million, or 19.2% of revenue, compared to $308.1 million, or 21.1% of revenue, for the prior year. On a constant currency basis, EBITDA increased 18.0% for the full year 2023 compared to the full year 2022.
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 $245.4 million at December 31, 2023, and the Company generated $156.4 million in cash flow from operating activities during the fourth quarter of 2023.

For the full year 2023, the Company repurchased 781,068 shares for $144.0 million. There were no share repurchases in the fourth quarter of 2023. As of December 31, 2023, 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 $326.0 million to $348.0 million. Additionally, full year 2024 EBITDA is expected in the range of $400.0 million to $430.0 million. Based on forecasted 2024 revenue of $2.150 billion to $2.200 billion and GAAP net income of $326.0 million to $348.0 million, diluted earnings per share (GAAP) is forecasted in the range of $10.18 to $10.87. This guidance assumes a full year 2024 tax rate of 16.0% to 17.0%, interest income of $18.4 million, and 32.0 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 December 31, 2023.
Conference Call Details
Medpace will host a conference call at 9:00 a.m. ET, Tuesday, February 13, 2024, to discuss its fourth quarter and full year 2023 results.
To participate in the conference call, interested parties must register in advance by clicking on this link. While it is not required, it is recommended you join 10 minutes prior to the event start. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call.
To access the conference call via webcast, visit the “Investors” section of Medpace’s website at medpace.com. The webcast replay of the call will be available at the same site approximately one hour after the end of the call. A supplemental slide presentation will also be available at the “Investors” section of Medpace’s website prior to the start of the call.
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About Medpace
Medpace is a scientifically-driven, global, full-service clinical contract research organization (CRO) providing Phase I-IV clinical development services to the biotechnology, pharmaceutical and medical device industries. Medpace’s mission is to accelerate the global development of safe and effective medical therapeutics through its high-science and disciplined operating approach that leverages regulatory and therapeutic expertise across all major areas including oncology, cardiology, metabolic disease, endocrinology, central nervous system and anti-viral and anti-infective. Headquartered in Cincinnati, Ohio, Medpace employs approximately 5,900 people across 42 countries as of December 31, 2023.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our forecasted financial results and the effective tax rate used for non-GAAP adjustment purposes. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “guidance,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” “forecast,” “may,” “could,” “likely,” “anticipate,” “project,” “goal,” “objective,” “potential,” “range,” “estimate,” “preliminary,” “opportunity,” “outlook,” “trend,” “can,” “might,” “drives,” “hope,” “predict” and similar expressions, and variations or negatives of these words. However, the absence of these words does not mean that a statement is not forward-looking.
These forward-looking statements are largely based on management’s current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our financial condition, actual results, performance (including share price performance), or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the potential loss, delay or non-renewal of our contracts, or the non-payment by customers for services we have performed; the failure to convert backlog to revenue at our present or historical conversion rate(s); the failure to maintain or generate new business awards; fluctuation in our results between fiscal quarters and years; the risks and uncertainties related to disruptions to or reductions in business operations or prospects due to pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; decreased operating margins due to increased pricing pressure or other factors; our failure to perform our services in accordance with contractual requirements, government regulations and ethical considerations; the impact of underpricing our contracts, overrunning our cost estimates or failing to receive approval for or experiencing delays with documentation of change orders; our failure to increase our market share, grow our business, successfully execute our growth strategies or manage our growth effectively; the impact of a failure to retain key executives or other personnel or recruit experienced personnel; the risks associated with our information systems infrastructure, including potential cybersecurity breaches and other disruptions which could compromise patient information or our information; adverse results from customer or therapeutic area concentration; the risks associated with doing business internationally, including the effects of tariffs and trade wars; the risks associated with the Foreign Corrupt Practices Act and other anti-corruption laws; future net losses; the impact of changes in tax laws and regulations; our failure to attract suitable investigators and patients to our clinical trials; the liability risks associated with our research and development services, including risks of liability resulting from harm to patients; inadequate insurance coverage for our operations and indemnification obligations; fluctuations in exchange rates; general economic conditions, including inflation, in the markets in which we operate, including financial market conditions; the impact of unfavorable economic conditions, including conditions caused by the uncertain international economic environment and current and future international conflicts; the impact of a natural disaster or other catastrophic event; negative outsourcing trends in the biopharmaceutical industry and a reduction in aggregate expenditures and research and development budgets; our inability to compete effectively with other CROs; the impact of healthcare reform; the impact of consolidation in the biopharmaceutical industry; our failure to comply with federal, state and foreign healthcare laws; the effect of current and proposed laws and regulations regarding the protection of personal data; our potential involvement in costly intellectual property lawsuits; actions by regulatory authorities or customers to limit the scope of indications related to or withdraw an approved drug, biologic or medical device from the market; and the impact of industry-wide reputational harm to CROs. Moreover, we operate in a very competitive and rapidly changing environment in which new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all important factors on our business or the extent to which any factor, or combination of such factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.

3

These and other important factors discussed under the caption “Risk Factors” in Item 1A, Part I of our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. We cannot guarantee that any forward-looking statement will be realized. Achievement of anticipated results is subject to substantial risks, uncertainties and inaccurate assumptions. If known or unknown risks or uncertainties materialize or if underlying assumptions prove inaccurate, actual results could vary materially from past results and those anticipated, estimated or projected. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events, developments or circumstances cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Non-GAAP Financial Measures
Certain financial measures presented in this press release, such as EBITDA and EBITDA margin, are not recognized under generally accepted accounting principles in the United States of America, or U.S. GAAP. Management uses EBITDA and EBITDA margin or comparable metrics as a measurement used in evaluating our operating performance on a consistent basis, as a consideration to assess incentive compensation for our employees, for planning purposes, including the preparation of our internal annual operating budget, and to evaluate the performance and effectiveness of our operational strategies.
EBITDA and EBITDA margin have important limitations as analytical tools and you should not consider them in isolation, or as a substitute for, analysis of our results as reported under U.S. GAAP. See the condensed consolidated financial statements included elsewhere in this release for our U.S. GAAP results. Additionally, for reconciliations of EBITDA and EBITDA margin to our closest reported U.S. GAAP measures, refer to the appendix of this press release.
We believe that EBITDA and EBITDA margin are useful to provide additional information to investors about certain material non-cash and non-recurring items. While we believe these financial measures are commonly used by investors to evaluate our performance and that of our competitors, because not all companies use identical calculations, this presentation of EBITDA and EBITDA margin may not be comparable to other similarly titled measures of other companies and should not be considered as an alternative to performance measures derived in accordance with U.S. GAAP. EBITDA is calculated as net income attributable to Medpace Holdings, Inc. before income tax expense, interest expense, net, depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by Revenue, net for each period. Our presentation of EBITDA and EBITDA margin should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.
4

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share amounts)Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Revenue, net$498,401 $394,098 $1,885,842 $1,459,996 
Operating expenses:
Direct service costs, excluding depreciation and amortization164,291 140,687 638,249 534,887 
Reimbursed out-of-pocket expenses197,304 137,680 723,088 492,671 
Total direct costs361,595 278,367 1,361,337 1,027,558 
Selling, general and administrative42,514 33,401 161,352 131,400 
Depreciation6,422 5,061 24,129 18,989 
Amortization550 838 2,199 3,352 
Total operating expenses411,081 317,667 1,549,017 1,181,299 
Income from operations87,320 76,431 336,825 278,697 
Other income (expense), net:
Miscellaneous income (expense), net1,543 (1,959)(655)7,068 
Interest income (expense), net1,844 (827)(488)(2,905)
Total other income (expense), net3,387 (2,786)(1,143)4,163 
Income before income taxes90,707 73,645 335,682 282,860 
Income tax provision12,409 4,975 52,872 37,492 
Net income$78,298 $68,670 $282,810 $245,368 
Net income per share attributable to common shareholders:
Basic$2.55 $2.20 $9.20 $7.57 
Diluted$2.46 $2.12 $8.88 $7.28 
Weighted average common shares outstanding:
Basic30,71931,19230,72232,388
Diluted31,82532,42331,84133,671
5

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share amounts)
As Of December 31,
20232022
ASSETS
Current assets:
Cash and cash equivalents$245,449 $28,265 
Accounts receivable and unbilled, net298,400 253,404 
Prepaid expenses and other current assets49,979 52,293 
Total current assets593,828 333,962 
Property and equipment, net120,589 109,849 
Operating lease right-of-use assets144,801 139,068 
Goodwill662,396 662,396 
Intangible assets, net35,809 38,008 
Deferred income taxes74,435 48,083 
Other assets24,970 21,129 
Total assets$1,656,828 $1,352,495 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$31,869 $33,069 
Accrued expenses292,961 210,125 
Advanced billings559,860 462,729 
Short-term debt— 50,000 
Other current liabilities40,441 47,547 
Total current liabilities925,131 803,470 
Operating lease liabilities142,122 138,867 
Deferred income tax liability2,404 1,070 
Other long-term liabilities28,221 22,701 
Total liabilities1,097,878 966,108 
Commitments and contingencies
Shareholders’ equity:
Preferred stock - $0.01 par-value; 5,000,000 shares authorized; no shares issued and outstanding at December 31, 2023 and 2022, respectively
— — 
Common stock - $0.01 par-value; 250,000,000 shares authorized at December 31, 2023 and 2022, respectively; 30,752,292 and 31,091,694 shares issued and outstanding at December 31, 2023 and 2022, respectively
308 309 
Treasury stock - 70,573 and 71,573 shares at December 31, 2023 and 2022, respectively
(12,322)(12,497)
Additional paid-in capital802,681 770,794 
Accumulated deficit(221,645)(359,827)
Accumulated other comprehensive loss(10,072)(12,392)
Total shareholders’ equity558,950 386,387 
Total liabilities and shareholders’ equity$1,656,828 $1,352,495 
6

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)Twelve Months Ended December 31,
20232022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$282,810 $245,368 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation24,129 18,989 
Amortization2,199 3,352 
Stock-based compensation expense20,516 21,412 
Noncash lease expense19,646 18,015 
Deferred income tax benefit(25,117)(23,014)
Other2,705 (2,127)
Changes in assets and liabilities:
Accounts receivable and unbilled, net(48,282)(66,920)
Prepaid expenses and other current assets2,986 (10,175)
Accounts payable1,051 6,431 
Accrued expenses82,080 52,476 
Advanced billings97,131 118,088 
Lease liabilities(18,873)(15,899)
Other assets and liabilities, net(9,607)22,054 
Net cash provided by operating activities433,374 388,050 
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment expenditures(36,648)(36,879)
Other2,019 (1,863)
Net cash used in investing activities(34,629)(38,742)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock option exercises11,378 22,074 
Repurchases of common stock(144,020)(847,849)
Proceeds from revolving loan105,000 324,200 
Payments on revolving loan(155,000)(274,200)
Net cash used in financing activities(182,642)(775,775)
EFFECT OF EXCHANGE RATES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH1,081 (6,572)
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH217,184 (433,039)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period28,265 461,304 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period$245,449 $28,265 
7

MEDPACE HOLDINGS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED)
(Amounts in thousands)Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
RECONCILIATION OF GAAP NET INCOME TO EBITDA
Net income (GAAP)$78,298 $68,670 $282,810 $245,368 
Interest (income) expense, net(1,844)827 488 2,905 
Income tax provision12,409 4,975 52,872 37,492 
Depreciation6,422 5,061 24,129 18,989 
Amortization550 838 2,199 3,352 
EBITDA (Non-GAAP)$95,835 $80,371 $362,498 $308,106 
Net income margin (GAAP)15.7 %17.4 %15.0 %16.8 %
EBITDA margin (Non-GAAP)19.2 %20.4 %19.2 %21.1 %
FY 2024 GUIDANCE RECONCILIATION (UNAUDITED)
(Amounts in millions, except per share amounts)Forecast 2024
Net IncomeNet income per diluted share
LowHighLowHigh
Net income and net income per diluted share (GAAP)$326.0 $348.0 $10.18 $10.87 
Income tax provision62.4 70.4 
Interest income, net(18.4)(18.4)
Depreciation28.6 28.6 
Amortization1.4 1.4 
EBITDA (Non-GAAP)$400.0 $430.0 
8
v3.24.0.1
Cover
Feb. 12, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 12, 2024
Entity Registrant Name Medpace Holdings, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37856
Entity Tax Identification Number 32-0434904
Entity Address, Address Line One 5375 Medpace Way
Entity Address, City or Town Cincinnati
Entity Address, State or Province OH
Entity Address, Postal Zip Code 45227
City Area Code 513
Local Phone Number 579-9911
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock $0.01 par value
Trading Symbol MEDP
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001668397
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