Medidata Solutions (NASDAQ: MDSO), a leading global provider of SaaS clinical technology solutions that enhance the efficiency of clinical development, today announced its financial results for the fourth quarter and full year 2011, and provided detailed financial guidance for the first quarter and full year 2012.
“Medidata’s record financial and operational performance reflects growing customer reliance on our integrated clinical development solutions,” said Tarek Sherif, chief executive officer. “We are at an inflection point in our growth, driven by market share gains and sales of our non-Rave products. The projected acceleration of our revenue is well supported by the significant backlog with which we enter 2012, as well as a rich pipeline of opportunities. Enabling our customers to cost-effectively transform their clinical research processes through our cloud-based platform creates significant, measurable value for our customers and will continue to drive our future growth.”
Fourth Quarter and Full Year Highlights
- Full year revenues increased to $184.5 million, up $18 million, or 11%, year on year.
- Non-Rave revenues increased 52% year over year to $13.2 million, or 7% of total revenue as new and existing customers embrace Medidata’s cloud-based technology.
- Full year gross margins were 71%, up 2% year on year. Fourth quarter gross margins increased to 73%.
- Full year non-GAAP operating income* increased 17% year on year, to $45.7 million, exceeding the company’s guidance of $44.5 to $45.5 million. Non-GAAP operating income excludes, among other items, the impact of a $6.3 million one-time litigation settlement charge.
- Full year GAAP operating income decreased 3% year on year, to $22.6 million, which among other items, includes the impact of a $6.3 million one-time charge. Excluding the impact of these fourth quarter charges, GAAP operating income would have been $29.1 million, exceeding the company’s guidance of $27.5 to $28.5 million.
- Full year non-GAAP operating margins* increased over 135 basis points to 24.8%, which among other items, excludes the impact of a $6.3 million one-time charge.
- Full year GAAP operating margins decreased 160 basis points to 12.3%, which among other items, includes the impact of a $6.3 million one-time charge.
- Cash flow from operations for the year increased over 360% to $28.7 million. Excluding the payment of a $6.3 million one-time charge, cash flow from operations were in line with the company’s guidance of $35 million.
- Medidata added 86 new customers in 2011 for a total of 275 at year end, with 25 new customers added in the fourth quarter.
- Customers continued to buy additional products from Medidata’s expanded portfolio, with 33% of Medidata customers now purchasing more than one product.
- In 2011, Medidata successfully renewed 100% of its enterprise contracts up for renewal, representing some of the world’s largest pharmaceutical companies.
- In 2011 Medidata launched additional products and functionality in its clinical trial concept to conclusion portfolio, including the clinical business analytics solution Medidata Insights™, the easy-to-use, centralized coding tool Medidata Coder and the automated site negotiating tool Medidata Grants Manager Contracting™. It also acquired Clinical Force, a pioneer in offering a flexible, modular Clinical Trial Management System (CTMS).
Sherif added, “While 2011 was a transitional year for Medidata, we are beginning this year with tremendous momentum based on our financial performance, excellent customer retention, feature-rich solution and a solid reputation for innovation and customer service. In 2012, we will continue to invest aggressively in our business, to capitalize on the massive opportunity we see resulting from our customers’ evolving clinical development technology needs.”
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