Syneos Health full-year revenues rise 3.5%

In contrast to the full-year topline growth, Syneos Health reported $1.3 billion in quarterly revenues, marking a 1% decrease.

Jack O'Brien

February 16, 2023

10:56 am

Syneos H e alth’s full-year revenues rose 3.5% to $5.3 billion, according to the company’s latest earnings report released Thursday morning.

Syneos Health benefited from its Clinical Solutions segment driving revenue up 1.3% to just over $4 billion, with acquisitions contributing around 66 basis points to that growth. Additionally, Commercial Solutions generated $1.3 billion in revenue, up 10.6% year-over-year, white the company’s GAAP net income rose 13.5% to $266.5 million.

In contrast to the full-year topline growth, Syneos Health reported $1.3 billion in quarterly revenues, marking a 1% decrease, as the Clinical Solutions segment’s revenues fell 2.1%. However, the company’s Commercial Solutions division generated revenues of $336.6 million, up 2.5% year-over-year.

Notably, the company’s GAAP net income for Q4 2022 decreased nearly 27% to $55.5 million, its adjusted EBITDA fell almost 12% to $209.1 million and its GAAP diluted earnings per share (EPS) fell 25% to $0.54.

“Our results this quarter came in as expected with Commercial awards, in particular, strong. Our senior leadership is relentlessly focused on our customers, employees and the continued transformation of our business,” Syneos Health CEO Michelle Keefe said in a statement. “We remain confident in our strategy and the long term market opportunity, and are encouraged by feedback we’re receiving from our customers and the early signs of positive impact from our investments.”

Looking ahead, Syneos Health projects revenue between $4.9 billion to $5.1 billion for 2023, along with net income between $29.1 million and $46.6 million and an adjusted EBITDA in the range of $675 million to $725 million.

The company’s earnings were released just over a week after Syneos Health announced a partnership with Haystack Health to bolster its clinical trial enrollment through artificial intelligence and natural language processing.
Additionally, the 2022 MM+M Agency 100 honoree has experienced the departure of two executives in recent months, as chief financial officer Jason Meggs announced in January he would be leaving Syneos, while global president Tim Pantello left for the lead role at Relevate Health in October.