Medidata Solutions (NASDAQ: MDSO), a leading global provider of cloud-based drug development solutions that optimize the efficiency of clinical development, today announced its financial results for the third quarter of 2012, and provided detailed financial guidance for the fourth quarter and full year 2012.
“Medidata’s sales execution, healthy top-line growth and robust fourth quarter pipeline are proof that the aggressive investment strategy we initiated earlier this year, focused on expanding our product footprint and our sales coverage and capabilities, is paying off,” said Tarek Sherif, Medidata’s chief executive officer. “This quarter, we signed significant commitments with several top 25 life sciences companies, including Sanofi and Otsuka Pharmaceutical. In combination with accelerating multi-product adoption by new and existing customers, it is clear that life sciences companies are increasingly relying on the Medidata Clinical Cloud to achieve improved productivity and competitive advantage in their clinical development efforts.”
Third Quarter and Year to Date Highlights
- Bookings in the quarter were the second highest in the company’s history, with year to date activity ahead of the entire full year of 2011 by 34%, exceeding internal expectations.
- Record revenues for the quarter of $55.8 million increased 21% year over year, exceeding the company’s long-term revenue growth target of 20%.
- For the quarter, non-Rave revenues increased 142% year over year and 27% sequentially. Year to date, non-Rave revenues grew 145% year over year.
- Total customers were up 28% over last year, to a record 333, a net increase of 72 customers year over year. Six current customers upgraded to enterprise deals from study-by-study arrangements in the quarter, highlighting the increasing adoption of the Medidata platform. These new enterprise customers include Sanofi, one of the world’s leading pharmaceutical companies; Otsuka Pharmaceutical, one of Japan’s top 10 pharmas; and a Top 5 contract research organization.
- Current customers contracting for additional products grew by 50% over last quarter, showing continued growth in the Medidata Clinical Cloud platform. Customers with multiple products now account for over 35% of the total customer base.
Mr. Sherif continued, “We have been investing to extend our cloud-based platform, expand our addressable market from $2 billion around the time of our IPO to $6 billion today and drive our continued momentum. Given the fundamentals in our industry, our proven ability to execute and accelerating customer commitments, and despite a challenging economic environment, Medidata is well positioned for strong revenue growth in the fourth quarter and in 2013.”