A lot of the work we’re still winning is oncology. Our burn rates around 9.2. I don’t see that going up anytime soon. So, there may be some modest impact if we have a particularly strong second quarter on the business wins. But I’m not certainly going to promise that at this stage. I think, we feel like the opportunity to flowing through nicely. It’s very early in the second quarter, but the opportunities are flowing through nicely. We have a good opportunity list and I feel confident about our performance in Q2, but it’s very early days on that front. And we feel as that plays out, we’ll come to July and we’ll adjust our forecast and where we’re going. So, overall, positive, strong, constructive, but we’re not ready to declare victory and to push too fast ahead despite what you’d like us to do.
Casey Woodring: Got it. That’s helpful. And then maybe just a quick follow up. Can you talk about your win rate in the quarter? And maybe elaborate on how much of the bookings growth you saw was a result of share gains versus trial growth coming back? Thank you.
Steve Cutler: Our win rate was consistent with where it’s been. Certainly, the large pharma win rate has been very positive and been consistent — that’s been consistent. Biotech certainly came back in the quarter very well. So, we feel we’re making a lot of progress in the biotech space with the opportunities that we pitched, and we’ve got some good opportunities in the hopper for the second quarter. So, we feel that we’re on our game nicely with the biotech. That story, the rebranding that we put in place towards the end of last year is really starting to gain some traction with customers. We have a number of very significant opportunities. Some of these biotech opportunities are really large — really large trials, really large programs, and we’ve been successful on a number of them.
So, we feel we’re in a good place. And the hit rate, strike rate, call it what’s like, it’s not as high, of course, in biotech as it is in large pharma, where we tend to have the strategic partnerships, but we are — we compete very strongly and increasingly strongly in that space. And we feel the rebranding approach is really starting to pay dividends along with the good people and the good team we have on the biotech space.
Operator: Please hold on while I prepare the next question. Your next question comes from Ann Hynes at Mizuho Securities. Your line is open. Please go ahead.
Ann Hynes: Hi. Good morning. You both mentioned M&A as a priority in your prepared remarks. Can you just remind us what type of services or needs that you think ICON is missing? And then secondly, your DSOs down year-over-year, but they did pick up sequentially. If you can provide some more data on that, that would be great?
Steve Cutler: Sure. I’ll take the M&A, and then I’ll let Brendan handle the DSO question. And we’ve been fairly clear in the path. M&A is a priority and it is around adding capabilities to services and functions that we currently have in the organization. So, we’re looking to uptick. It could be in the laboratory space, it could be in the site space, it could be in the other parts of the business devices. There’s a number of areas that we feel we could move that sort of functional service area within our organization up to being either one or two in the market. Overall, of course, we feel we’re equal number one, or even a little ahead in some areas. Certainly on the FSP space, we’re by far the number one player. On the full service space, we’re very close to being the number one player, if not the number one player.
But there are areas within that business, as I said, laboratories, sites, devices that we feel that are within our bailey week and within our wheelhouse, but that could be upticked from a revenue and operational point of view to help us to really provide a little more scale in some of those areas. So, those are the sorts of areas we’re focused on. We have a number of those opportunities in the hopper. And as you’ve seen, our finances and our balance sheet now lend themselves much more effectively to making those transactions. We’ve done a couple relatively recently with HumanFirst and Biotel. They were relatively small. We’re looking to continue that, but uptick in terms of the revenue and EBITDA contribution that these new ones would make to the overall P&L.
Brendan, do you want to take DSO?
Brendan Brennan: Yeah. Thanks, Ann. I was still heartened, I suppose, by the level of cash from operations and free cash flow, which is very strong in the quarter. So, I’m very happy that we’re making a lot of progress from where we were in the past, albeit, yes, we did see a two-day attenuation in the DSO from Q4 to Q1. I don’t think there’s anything particular there. We said we would continue to focus on being in the mid-40s for the full year, so that’s obviously our goal. We know we had — unfortunately, Easter just happened to have hit — that Easter holiday period happened to hit at the exact end of the quarter, 31st of March. Easter was early this year, so that didn’t help. But it’s a couple of days, so that’s something I think we can recoup as we go through the course of the year and still overall happy with the cash flows, which were very strong in the quarter.
Ann Hynes: All right. Thanks.
Operator: Please stand by for your next question. The next question comes from Dan Leonard at UBS. Your line is open. Please go ahead.
Dan Leonard: Thank you. Stephen, I was hoping maybe you could elaborate a bit further on your improved win rate in biotech.
Steve Cutler: Dan, I could give you a million reasons why we’ve improved that. It’s a multifactorial thing. We’ve had some great opportunities. And the team, I think we have new leadership in in the biotech space and they’re doing a good job in bringing our organization really through in that in terms of our customers and biotech traction and understanding of what our offering is. We have, as I said, 8,000 people in that. That story is resonating well with the biotech customers. They recognize — I mean, as you all know, it’s typical for biotech customers to at least have some sort of consideration for smaller CROs, because they believe they can be more fast and agile. At the end of the day, we have 8,000 people dedicated to running the biotech.
