Q1 results were in line with expectations, but elevated cancellation rates and weak net new orders (net book-to-bill of 0.88) pose pressure, primarily due to program-specific cancellations (oncology, cardiovascular) and delays in converting pre-bookings.

Revenue $706.6M, +26.5% YoY; net new orders $618.4M, +23.7% YoY; net book-to-bill 0.88.

The cancellation rate rose to the highest in a year, but mainly due to product failures and prioritization adjustments, not macro factors. The cancellation rate for GLP-1-related metabolic programs is at historically low levels with no signs of fluctuation. Pre-booking pools grew this quarter, and the company continues to hire to meet initial demand; management is focused on expanding the pipeline and improving win rates, with no intention to enter the large pharmacy market.

Management maintains the full-year guidance for revenue, EBITDA, and earnings per share unchanged, but warns that without improvements in cancellation rates and orders, there will be a lack of sequential growth in the coming quarters.

The report identifies positive signals: despite pressure, the company continues to hire and management is confident about the future; negative signals: senior management acknowledges that if the cancellation rate does not decline, the 2027 revenue trajectory faces risks.