This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Medidata Solutions Reports Record Third Quarter 2013 Results

Stocks in this article: MDSO

Medidata Solutions (NASDAQ: MDSO), the leading global provider of cloud-based solutions for clinical research in life sciences, today announced its financial results for the third quarter 2013 and provided detailed financial guidance.

“I am very proud of our company’s strong execution in the most recent quarter and year to date, as our results came in at record levels. Current and new customers are increasingly choosing to work on the Medidata Clinical Cloud™ to drive innovation and improve productivity in their clinical development efforts,” said Tarek Sherif, Medidata’s chairman and chief executive officer. “Our number one priority is to drive value for our clients as they work to bring new life-enhancing and innovative drugs to market. While our financial results and operational metrics tell a great story, underlying them is an evolving opportunity that holds tremendous potential for our future. Medidata’s vertical cloud focus, innovative platform and unique data assets are embedding us in the industry’s transformation and are driving a broad range of new opportunities.”

Third Quarter 2013 Results

  • Total revenues for the third quarter of 2013 were $70.9 million, an increase of $15.1 million, or 27%, compared with $55.8 million in 2012. Application services revenue was $57.9 million, an increase of 32% compared with the same period last year.
  • GAAP operating income for the quarter increased to $9.5 million, up 39%, compared with $6.8 million a year ago. Non-GAAP operating income* for the third quarter of 2013 increased to $18.2 million, up 55%, compared with $11.8 million a year ago.
  • Medidata completed an offering of $287.5 million aggregate principal amount of 1.00% convertible senior notes due in 2018.
  • GAAP net income for the third quarter of 2013 was $5.3 million, or $0.20 per diluted share, up 30%, compared with $4.1 million, or $0.16 per diluted share, in the third quarter of 2012. GAAP net income for the third quarter of 2013 includes cash and non-cash interest expenses associated with the convertible senior notes issued during the quarter. Adjusted non-GAAP net income* for the third quarter of 2013 was $10.7 million, or $0.40 per diluted share, up 75%, compared with $6.1 million, or $0.24 per diluted share, in the third quarter of 2012 and excludes the impact of the non-cash interest expense related to our convertible senior notes. See our non-GAAP reconciliation included in this release for full details of our non-GAAP adjustments associated with our convertible senior notes and other items.
  • Application services backlog for the remainder of the year as of September 30, 2013, increased to $59.5 million, up 35% over the comparable period a year ago.
  • Total cash, cash equivalents and marketable securities were $428.0 million at the end of the third quarter, an increase of $304.4 million, or 246%, as compared with $123.6 million at the end of the third quarter of 2012, primarily due to net proceeds of $279.4 million from the convertible senior notes issued during the quarter.
  • Cash flow from operations was $20.4 million in the third quarter, up 140% year-over-year.

Additional Highlights

  • 47% of customers had committed to multiple products at the end of the third quarter of 2013, as compared with 36% at the end of the third quarter of 2012, reflecting increased adoption of our portfolio of solutions.
  • Medidata’s customer base grew to 379 in the third quarter of 2013, up 14% from the third quarter of 2012.
  • Non-Rave revenues increased 92% year over year, driven by increased adoption of solutions, including data analytics, patient randomization and trial supply, study and protocol design, medical coding, and trial management.

“Our revenue growth, margin improvement, profitability and strong cash flows highlight the benefits of our vertically focused business model,” said Cory Douglas, Medidata’s chief financial officer. “Given our strong performance year to date, solid backlog coverage, industry leading revenue retention and a healthy pipeline of future opportunities, we are once again raising our 2013 guidance.”

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs