Medpace Holdings, Inc. (NASDAQ:MEDP) Q3 2022 Results Conference Call October 25, 2022 9:00 AM ET
Company Participants
Lauren Morris - IR
August Troendle - CEO
Jesse Geiger - President
Kevin Brady - CFO
Conference Call Participants
Dave Windley - Jefferies
Sandy Draper - Guggenheim Partners Draper
Max Smock - William Blair
John Sourbeer - UBS
Eric Coldwell - RW Baird
Operator
Good day, ladies and gentlemen, and welcome to the Medpace Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this call may be recorded.
I would now like to introduce your host for today's conference call, Lauren Morris, Medpace’s, Director of Investor Relations. You may begin.
Lauren Morris
Good morning. And thank you for joining Medpace's third quarter 2022 earnings conference call. Also on the call today is our CEO, August Troendle; our President, Jesse Geiger; and our CFO, Kevin Brady. Before we begin, I would like to remind you that our remarks and responses to your questions during this teleconference may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve inherent assumptions with known and unknown risks and uncertainties, as well as other important factors that could cause actual results to differ materially from our current expectations. These factors, including the ongoing impact of COVID-19 on our business, are discussed in our Form 10-K and other filings with the SEC.
Please note that we assume no obligation to update forward-looking statements, even if estimates change. Accordingly, you should not rely on any of today's forward-looking statements as representing our views as of any date after today. During this call, we will also be referring to certain non-GAAP financial measures. These non-GAAP measures are not superior to or a replacement for the comparable GAAP measures, but we believe these measures help investors gain a more complete understanding of results. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is available in the earnings press release and earnings call presentation slides provided in connection with today's call. The slides are available in the Investor Relations section of our Web site at investor.medpace.com.
With that, I would now like to turn the call over to August Troendle.
August Troendle
Good morning. RFP metrics were reasonably strong, though down slightly on a sequential basis in Q3. Initial award notifications, which I described in our second quarter call was weak, recovered strongly and were in at a healthy level in the third quarter. This was surprising outcome given the continued financial challenges faced by a large fraction of our clients. Headwinds to revenue from delayed funding, reprioritization and even bankruptcy were higher in the quarter, but not yet broad based. The business environment is challenging and we remain concerned that a prolonged period of depressed funding flows will eventually lead to a rapid escalation in project delays. Our initial 2023 guidance reflects this caution and we anticipate slowing growth next year. Jesse and Kevin will now review our financial results for Q3.