Syneos Health, Inc. (NASDAQ:SYNH) Q4 2022 Earnings Call Transcript

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Casey Woodring: Got it. And then maybe just following up on one of the previous questions around share. Just when you look across your peer group in Clinical, IQVIA had a record bookings quarter in 4Q. Commentary from Thermo suggests that PPD also performing at a high level, same with ICON from a booking standpoint. So just curious as to what sort of confidence you have and the investments you are making in Clinical that allow you to think that you can kind of win customers back that you presumably lost to the larger scale players? Thank you.

Michelle Keefe: Thanks, Casey. So when — you have heard Michael speak a little bit today already about some of the key things that we are doing and how we are seeing green shoots in different areas. We are really confident in executing our strategy. We are absolutely concentrating on Clinical operations and business development and our cost structure realignment. And this investment that we are also making in retaining and strengthening our talent, having our retention being at a two-year high. We believe all those things are creating great experiences with our existing customers and with new customers, we are also creating a really compelling offering for consideration for Syneos Health. And so based on the things that we are doing, we believe that we are competitive, we believe that customers are going to continue to give us the opportunity to compete for business, and looking forward to that, as Jason just said, as the year goes on, we are predicting our book-to-bill will continue to rise in Clinical over the course of the year.

Operator: Thank you One moment please for our next question. And our next question coming from the line Luke Sergott with Barclays. Your line is open.

Luke Sergott: Hey, guys. Thanks for the question. Just one for me and it’s more on the EBITDA framework for 2024. I mean that’s a pretty big step up $100 million essentially coming out off of a low single-digit topline growth. And just kind of wanted to get a good sense of, one, where that’s coming from, and are you going to be cutting too much on SG&A that will hinder more business development, that there’s a risk to that? And then really kind of thinking about the 2023 guide, how much healthy conservatism is baked into that, where if you come in well above that $700 million at the midpoint, obviously, it makes it easier to hit that $800 million, just give us some way to think about that, please?

Jason Meggs: Yeah. Hey, Luke. It’s Jason. I will start. So on the 2024, when you think about the low single-digit growth and the incremental margin associated with that and then you add on the incremental savings from the initiatives and that can include topline growth as well that is inherent in that single digit at a better margin, that’s how you start to get to that year-over-year step-up, right, because you are $30 million to $40 million in 2023 of savings over 2022 and then you are up $100 million, $150 million in 2024. So that incremental savings plus the growth and margin associated with that. So that’s rough sort of orders of magnitude there of how we get there. On the business development side, we are not making any cuts, as a matter of fact, we are investing in business development, right?

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