Medidata Solutions (MDSO) Misses Q3 EPS by 2c

Medidata Solutions (NASDAQ: MDSO) reported Q3 EPS of $0.20, $0.02 worse than the analyst estimate of $0.22. Revenue for the quarter came in at $86 million versus the consensus estimate of $87.72 million.

Additional Highlights

• Subsequent to the close of the third quarter, Medidata acquired Patient Profiles, LLC, an early-stage software company focused on clinical data analytics in clinical trials. The acquisition broadens Medidata’s current risk-based monitoring solution with centralized statistical monitoring capabilities. Risk-based monitoring is a key strategy for reducing trial expense while improving data quality, and is one of the highest growth areas both for Medidata and in the clinical trials industry. Current Patient Profiles revenue is not material.
• A recent Medidata analysis showed that 7 out of the top 10 best selling drugs in the United States in 2013 were developed using Medidata technology.
• Medidata’s customer base grew to 462, with 32 new clients added in the third quarter of 2014, an increase of 45% over the number of new clients added in the third quarter of 2013.
• 56% of customers had committed to multiple products at the end of the third quarter of 2014, up from 47% at the end of the third quarter of 2013. Uptake of Medidata Rave, Coder and Balance was particularly strong.
• Partners continue to strengthen their ties to Medidata, with one of the top global CROs significantly increasing its commitment to Medidata, and an additional CRO joining the industry-leading Medidata Services program.
• Billings were $94 million in the third quarter of 2014, a 22% increase over the third quarter of 2013.
• Subscription backlog for the remainder of the year as of September 30, 2014 was $70.6 million, an increase of $11.1 million year over year. Remaining subscription backlog does not include revenues associated with intra-year renewals of $1 million.
• Medidata's overall revenue retention rate was nearly 100%.

"The third quarter marked our 9th consecutive quarter of year-over-year total revenue growth in excess of 20% and was within our long-term total revenue growth target of 20 to 25%,” said Cory Douglas, Medidata’s chief financial officer. “We remain focused on delivering a strong finish to the year and continue to make strategic investments according to plan while generating significant profitability and cash flow.”

Medidata Solutions sees FY2014 revenue of $335-340 million, versus the consensus of $342.0 million.

For earnings history and earnings-related data on Medidata Solutions (MDSO) click here.

You May Also Be Interested In

• Grainger (GWW) Tops Q1 EPS by 2c, provides guidance
• West Bancorporation (WTBA) Tops Q1 EPS by 8c
• Bristol-Myers Squibb (BMY) stock slips despite earnings beat