Exhibit 99.1

Medidata Solutions Reports Fourth Quarter and Full Year 2011 Results

Raises 2012 revenue guidance on record application services backlog

Increases non-Rave product revenue 52% in 2011

Delivers record full year revenues, gross margins, profitability and cash flow

Wins a record 86 new customers in 2011

NEW YORK--(BUSINESS WIRE)--March 6, 2012--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.”

Financial Highlights

Fourth Quarter 2011 Results

Net revenues for the fourth quarter of 2011 were $47.2 million, compared with $47.4 million in the fourth quarter of 2010. The decrease in revenues was due to a $3.9 million, or 10%, decrease in revenues from application services, partially offset by an increase in revenues from professional services. Net revenue and profitability figures for the fourth quarter 2010 included a $3.2 million, one-time acceleration of revenue recognition related to a termination of a government contract on behalf of the National Cancer Institute (NCI).

For the fourth quarter and full year of 2011, GAAP operating income reflects, among other items, a $6.3 million settlement of litigation with DataSci. GAAP net income also includes a favorable non-cash tax benefit of $19 million resulting from the reversal of the majority of the company’s tax valuation allowance previously recorded against its net deferred tax assets. The company’s non-GAAP results exclude, among other items, the impact of the one-time charge and tax benefit. To facilitate comparability of its results with prior periods, Medidata has provided a supplemental financial table at the end of this release.

Gross margins in the fourth quarter of 2011 were 73%, an increase of 2 percentage points over gross margins of 71% a year ago.

Non-GAAP operating income* for the fourth quarter of 2011 decreased to $11.6 million, compared with $13.9 million a year ago. This compares with guidance of $10.5 to $11.5 million. GAAP operating income for the quarter decreased to $0.8 million, compared with $9.9 million a year ago.

Non-GAAP net income* for the fourth quarter of 2011 decreased to $9.0 million, or $0.37 per diluted share, compared with $15.5 million, or $0.64 per diluted share, in the fourth quarter of 2010. GAAP net income for the fourth quarter of 2011 increased to $18.7 million, or $0.76 per diluted share, compared with $13.3 million, or $0.55 per diluted share, in the fourth quarter of 2010.

Full Year 2011 Results

Net revenues for the full year of 2011 were $184.5 million, an increase of $18.1 million, or 11%, compared with $166.4 million in 2010. The increase in revenues was the result of a $10.0 million, or 33%, increase in revenues from professional services and growth in application services revenue.

For the full year 2011, gross margins were 71%, an increase of more than 2 percentage points over the 69% margins generated in 2010.

Non-GAAP operating income for the full year was $45.7 million, compared with $39.0 million in 2010. GAAP operating income for the full year of 2011 was $22.6 million, compared with $23.3 million in 2010.

Non-GAAP net income for 2011 increased to $37.3 million, or $1.51 per diluted share, compared with $30.8 million, or $1.28 per diluted share, in 2010. GAAP net income for the full year increased to $39.4 million, or $1.60 per diluted share, compared with $22.8 million or $0.95 per diluted share, in 2010.

Total cash, cash equivalents and marketable securities were $107.7 million at the end of the fourth quarter, an increase of $5.0 million from the third quarter and compares to $85.5 million at the end of the fourth quarter 2010. For the full year, the company generated cash flow from operations of $28.7 million, an increase of over 360%, which includes the payment of a $6.3 million one-time charge. Excluding this payment, cash flow from operations was consistent with guidance of $35 million. A decrease in deferred revenue due to changes in professional services revenue recognition and changing customer payment terms consistent with Medidata’s evolution as a Software-as-a-Service provider, continued to have an impact on cash flow.

Financial Outlook

For the full year 2012, the company now expects revenues to be between $210 and $215 million. Professional services revenues are expected to be in the low to mid $40 million range. Non-GAAP operating income is expected to be between $50.0 and $53.0 million. Based on current estimates, this would equate to GAAP operating income between $30.5 and $33.5 million. Non-GAAP net income is expected to be between $31.0 and $34.0 million. Based on current estimates, this would equate to GAAP net income between $18.0 and $21.0 million. The company expects adjusted non-GAAP net income, which includes the tax impact on stock-based compensation and amortization at a 40% effective tax rate, to be between $25.5 and $28.5 million.

Full year application services backlog as of January 1, 2012 increased 23% to $135 million over the comparable period a year ago. This compares with a 4% increase in full year application services backlog as of January 1, 2011 over the comparable prior period. The difference between the application services backlog and balance of revenue guidance for the remainder of the year includes professional services revenue guidance, and expected customer renewals, as well as expected additional business from new and existing customers.

For the first quarter of 2012, the company expects revenues to be between $48.5 and $49.5 million. The company expects non-GAAP operating income to be between $9.0 and $10.0 million. Based on current estimates this would equate to GAAP operating income of $5.0 and $6.0 million. Non-GAAP net income is expected to be between $5.5 and $6.5 million. Based on current estimates, this would equate to GAAP net income of between $3.0 and $4.0 million. The company expects adjusted non-GAAP net income, which includes the tax impact on stock-based compensation and amortization at a 40% effective tax rate, to be between $4.5 and $5.5 million.

While changes in the stock price could change the fully diluted share count, the company is assuming 24.7 and 25.0 million fully diluted shares in the first quarter and full year, respectively.

“Medidata’s strong operational and financial performance in 2011 has positioned the company for continued profitable growth in the coming year,” said Cory Douglas, chief financial officer. “Given our record cash flow from operations and significant margin expansion over the last few years, we feel well positioned to further invest in our business and capitalize on market opportunities to accelerate growth in 2012 and beyond.”

Conference Call

The company plans to host its investor conference call today at 8:00 a.m. Eastern. The investor conference call will be available via live webcast on the “Investor” section of Medidata’s web site at http://investor.mdsol.com. To participate by telephone, domestic participants may dial 877-303-2528 and international participants may dial 847-829-0023. Those interested in participating in the conference call should dial in at least 10 minutes prior to the call to register. Participants can also join the call via a simultaneous live audio webcast, which will be made available on the “Investor” section of Medidata’s web site at http://investor.mdsol.com. A replay of the conference call can be accessed until Tuesday, March 20, 2012 by dialing 800-585-8367 domestically or 404-537-3406 internationally, with the passcode 52824804. An archive of the call will also be hosted on the “Investor” section of Medidata’s web site, http://investor.mdsol.com, for a limited period of time.

About Medidata Solutions Worldwide

Medidata Solutions is a leading global provider of SaaS clinical development solutions that enhance the efficiency of customers’ clinical trials. Medidata’s advanced solutions lower the total cost of clinical development by optimizing clinical trials from concept to conclusion: from study and protocol design, trial planning and budgeting, site negotiation, clinical portal, trial management, randomization and trial supply management, clinical data capture and management, safety events capture, medical coding to business analytics. Our diverse life science customer base spans biopharmaceutical companies, medical device and diagnostic companies, academic and government institutions, CROs and other research organizations, and includes more than 20 of the top 25 global pharmaceutical companies as well as organizations of all sizes developing life-enhancing medical treatments and diagnostics.

Cautionary Statement

Certain statements made in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Medidata Solutions, Inc. (“Medidata”), including but not limited to statements about Medidata’s forecast of financial performance, products and services, business model, strategy and growth opportunities, and competitive position. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. In particular, the risks and uncertainties include, among other things, risks associated with possible fluctuations in our financial and operating results; errors, interruptions or delays in our service or our Web hosting; the financial impact of any future acquisitions; our ability to continue to release, and gain customer acceptance of, new and improved versions of our products; changes in our sales and implementation cycles; competition; our ability to retain and expand our customer base or increase new business from those customers; our ability to hire, retain and motivate our employees and manage our growth; regulatory developments; litigation; and general developments in the economy. For additional disclosure regarding these and other risks faced by the company, see disclosures contained in Medidata's public filings with the Securities and Exchange Commission including, the “Risk Factors” section of Medidata’s Annual Report on Form 10-K for the year ended December 31, 2010. You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and Medidata undertakes no obligation to update such statements as a result of new information.

*Non-GAAP Financial Information

Medidata provides Non-GAAP operating income, net income and net income per share applicable to common stockholders data as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. Non-GAAP operating income excludes the impact of depreciation, amortization of intangible assets associated with acquisitions, stock-based compensation expense, and a charge associated with a legal settlement. Non-GAAP net income excludes the impact of amortization of intangible assets associated with acquisitions, stock-based compensation expense, a charge associated with a legal settlement and a reduction in its valuation allowance. Management uses these Non-GAAP measures to evaluate its financial results, develop budgets, manage expenditures, and as an important factor in determining variable compensation. Management also believes that the impact of a litigation settlement and the reversal of its tax valuation allowance on the company’s financial statements in the fourth quarter of 2011 is not indicative of the company’s continuing operations and exclusion of these items provide a useful comparison of the company’s operating results to prior periods. In addition, investors frequently have requested information from management regarding depreciation and amortization and non-cash, share-based compensation charges and management believes, based on discussions with investors, that these Non-GAAP measures enhance investor’s ability to assess Medidata’s historical and project future financial performance. While management believes these Non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of Non-GAAP financial measures. One limitation of Non-GAAP operating income is that it excludes depreciation and amortization, which represents the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business. Medidata compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the Non-GAAP financial measures to their most comparable GAAP financial measures. Investors are encouraged to review the reconciliations of these Non-GAAP financial measures to the comparable GAAP results, which are attached to this press release.

The table above presents a reconciliation of GAAP to non-GAAP operating income, net income and net income per share applicable to common stockholders for the three and twelve months ended December 31, 2011. Non-GAAP operating income excludes the impact of depreciation, amortization of intangible assets associated with acquisitions, stock-based compensation expense, and a charge associated with a legal settlement. Non-GAAP net income excludes the impact of amortization of intangible assets associated with acquisitions, stock-based compensation expense, a charge associated with a legal settlement and a reduction in its valuation allowance.

CONTACT:
Investor Contact:
Medidata Solutions
Hulus Alpay, 212-419-1025
halpay@mdsol.com
or
Media Contact:
Lois Paul and Partners
Susan McCarron, 617-986-5767
susan_mccarron@lpp.com