NEW YORK--(BUSINESS WIRE)--Medidata (NASDAQ: MDSO) today announced its financial results for the first quarter of 2019.

“Medidata is at the forefront of driving the digital transformation of life science with our platform, data assets and industry expertise, helping fulfill the mission we set almost 20 years ago to positively impact patients’ lives," said Tarek Sherif, chairman and chief executive officer, Medidata. “While we achieved solid results this quarter, importantly we have laid the foundation for the future with the launch of Acorn AI."

First Quarter 2019 Results

• Total revenue was $173.5 million, an increase of 16% compared with $149.2 million in the first quarter of 2018
• Subscription revenue was $146.9 million, an increase of 16% compared with the first quarter of 2018. Professional services revenue was $26.6 million, an increase of 19% compared with the first quarter of 2018
• GAAP operating income was $5.0 million and non-GAAP operating income1 was $35.9 million, representing a GAAP and non-GAAP operating margin of 2.9% and 20.7%, respectively
• GAAP net income was $11.1 million, or $0.18 per diluted share, compared with $10.3 million, or $0.17 per diluted share, in the first quarter of 2018. Non-GAAP net income1 was $27.9 million, or $0.45 per diluted share, compared with $24.0 million, or $0.40 per diluted share, in the first quarter of 2018. See the non-GAAP reconciliation included in this release for full details of the non-GAAP adjustments
• Total cash and marketable securities were $206.1 million at the end of the quarter, compared with $240.5 million on December 31, 2018

Additional Highlights:

• Remaining 2019 adjusted subscription backlog2 as of March 31, 2019 was $432 million, an increase of $62 million, or 17%, compared with a year ago
• Launched Acorn AI™, a company designed to provide actionable insights by breaking data silos and improving data agility across the entire life science continuum
• Appointed the company’s first-ever Chief Information Officer, Dr. Rama Kondru, an industry visionary and former CIO of Janssen Americas. Additionally, Dr. Rachel Sherman, former principal deputy commissioner of FDA, joined Acorn AI as chief scientific and medical advisor
• In collaboration with the FDA Center for Drug Evaluation and Research (CDER), Medidata will apply a Synthetic Control Arm™ approach to adult historical clinical trial data and extrapolate results to children. The aim is to minimize exposure of children to clinical trials and increase the speed and efficiency of pediatric drug development
• Secured a competitive win with a top 10 medical device company that will use Rave EDC, CTMS and eTMF to standardize operations and increase efficiency across business units
• Revenue retention rate3 was nearly 100% for the quarter

“We had a good start to the year with 16% total revenue growth," said Rouven Bergmann, chief financial officer, Medidata. "With a rock-solid core business, combined with the launch of Acorn AI, we are well positioned for future growth while we focus on expanding our operating margins.”

About Medidata

Medidata is leading the digital transformation of life sciences, with the world's most-used platform for clinical development, commercial, and real-world data. Powered by artificial intelligence and delivered by industry experts, Medidata helps pharmaceutical, biotech, medical device companies, and academic researchers accelerate value, minimize risk and optimize outcomes. Medidata and its companies, Acorn AI and SHYFT, serve more than 1,200 customers and partners worldwide and empower more than 150,000 certified users every day to create hope for millions of patients. Discover the future of life sciences: www.medidata.com