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

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When you think about 2024 and the setup, and this goes a little bit back to Eric’s question, I think, that we absolutely inherent in our guide, and as I mentioned, have our Clinical bookings gradually improving throughout the year and getting back north of 1 in the back half of 2023 and into 2024. And there will be an increase in the burn rate when you think about 2023 throughout the year given the mix of business that we have won, whether it’s FSP or it’s faster burning studies within full service or our technology and data businesses, et cetera. So those things are all built into what we are looking at as we see the gradual recovery of bookings in the back half to above that 1, 1.2 even as we exit and then the exit rate on the savings, Justin, gets you to — as we exit Q4 of 2023, that puts you somewhat in line with that 2024 number when you do a full year annualized number.

Justin Bowers: Got it. Appreciate the detail there.

Operator: Thank you.

Jason Meggs: You are welcome.

Operator: And our next question coming from the line of Sandy Draper with Guggenheim. Your line is open.

Sandy Draper: Thanks very much. A lot’s already been covered. So maybe I will ask the first question on the Commercial side, when I just look at the slowdown we saw in the growth in the fourth quarter and then I look at backlog basically is flat on a year-over-year basis. I know you are not giving specific guidance by segment, but is it reasonable to think that Commercial is low to maybe mid-single-digit grower thinking about 2023 and just if this, again, coming off of basically 1% growth in backlog, it could be a little higher, but not a ton higher. So just any thoughts around that versus, because it sounds like you have been pretty positive and been growing double digits, but it doesn’t look to me based on the numbers you would be able to do that? So that would be the first question. Thanks.

Michelle Keefe: Sure. Thanks for the question. In our 2023 guidance, the assumption does assume that Commercial is flat to 2022 driven by the recent macroeconomic demand pressures that we outlined. So that is contemplated in the guidance for 2023.

Sandy Draper: Okay. Great. That’s really helpful. And then maybe just one quick follow-up just on — when I am thinking about the patterns, and Jason, you have given a lot of information, which I appreciate. It sounds like my inference is the first quarter is not the trough quarter, just all in, certainly, on the revenue, but it’s more like second quarter or third quarter. But just any additional thoughts on the pacing, I know you have given first quarter guidance in the fourth quarter, I mean, sorry, the full year, but just thinking about is there a specific quarter you would sort of project as the trough revenue quarter, and obviously, you have the offsets on the expenses, so it may not line up in terms of EBITDA? Thanks.

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