Group 1 - The presentation is led by Craig Hettenbach, a VP and Equity Analyst at Morgan Stanley, focusing on the health tech and provider space [1] - Definitive Healthcare is represented by CEO Kevin Coop and CFO Casey Heller during the conference [1]

Core Insights - Definitive Healthcare is represented by CEO Kevin Coop and CFO Casey Heller at the conference [1] Company Overview - The presentation is led by Craig Hettenbach, who covers the health tech and provider space at Morgan Stanley [1]

Definitive Healthcare FY Conference Summary Company Overview - **Company**: Definitive Healthcare (NasdaqGS:DH) - **Founded**: 2011, during a significant movement to digitize healthcare records - **Core Offering**: A differentiated database mapping the healthcare ecosystem, including hospitals, doctors, insurance companies, and patients [4][5] Key Points and Arguments Management Changes and Focus Areas - **Leadership Stability**: New management aims to reestablish trust and transparency with investors and employees [6][8] - **Four Pillars of Focus**: 1. **Data Quality**: Essential for the business foundation [7] 2. **Integrations**: Delivering products through various customer systems (CRM, APIs) [7] 3. **Customer Success**: Ensuring high service levels for customers [7] 4. **Innovation**: Focusing on digital activation and master data management [7][8] Market Position and Differentiation - **Competitive Landscape**: Competes with established players like IQVIA, emphasizing superior data quality and integration capabilities [11][12] - **Data Quality**: Claims to have significantly better accuracy in core datasets compared to competitors [12] - **Agnostic Delivery**: Ability to work with various systems of record, enhancing customer flexibility [13] Financial Outlook and Growth Strategy - **Revenue Stabilization**: Focus on stabilizing revenue before returning to growth [18] - **Margin Expansion**: Confidence in expanding margins as revenue grows, supported by a strong business model [18][19] - **Long-term Strategy**: Emphasis on integrating data into customer workflows to enhance value [16] Technology and AI Utilization - **AI and Machine Learning**: Already integrated into operations for efficiency and compliance [20] - **Operational Efficiencies**: Focus on internal efficiencies and product innovation [20] Partnerships and Collaborations - **Strategic Partnerships**: Collaborations with companies like Databricks and Snowflake to enhance data capabilities without direct competition [26][30] - **Audience Targeting**: Utilizing data for digital audience targeting and measurement [30] Industry Insights Life Sciences Segment - **Market Challenges**: Life sciences segment, making up about 40% of the business, faces challenges due to macroeconomic pressures and long sales cycles [35][36] - **Customer Behavior**: Clients are renewing contracts for lower values due to budget constraints [40][41] Provider and Diversified Segments - **Healthier Growth**: Provider and diversified segments show stronger renewal rates and new logo growth compared to life sciences [38][39] Organizational Changes and Culture - **Transparency and Communication**: Emphasis on radical transparency and open communication to foster a positive organizational culture [49][50] - **Customer Success Focus**: Changes in commission structures to enhance customer satisfaction and retention [42][43] Capital Allocation Strategy - **Share Buybacks**: Current focus on share buybacks while evaluating future acquisitions [56][57] - **Long-term Vision**: Building a generational business with a strong balance sheet to support future growth [59][60] Conclusion - **Optimistic Outlook**: Management expresses confidence in the company's ability to stabilize and grow, focusing on data quality, customer success, and strategic partnerships [55][61]

Core Insights - Definitive Healthcare Corp. will present at the Morgan Stanley 23rd Annual Global Healthcare Conference [1] - The presentation is scheduled for September 9, 2025, at 9:15 a.m. Eastern Time, with a live webcast available [2] Company Overview - Definitive Healthcare specializes in transforming data, analytics, and expertise into healthcare commercial intelligence [3] - The company aims to assist clients in identifying markets, opportunities, and key individuals to influence the future of the healthcare industry [3]

Core Insights - Definitive Healthcare Corp. (DH) is currently positioned as a more attractive investment compared to BlackLine (BL) based on various valuation metrics and earnings outlook [1][7]. Valuation Metrics - DH has a forward P/E ratio of 18.10, while BL has a higher forward P/E of 24.14, indicating that DH may be undervalued relative to BL [5]. - The PEG ratio for DH is 1.98, suggesting a more favorable valuation when considering expected earnings growth, compared to BL's PEG ratio of 3.51 [5]. - DH's P/B ratio stands at 1.37, significantly lower than BL's P/B of 7.75, further indicating DH's relative undervaluation [6]. Earnings Outlook - DH is currently experiencing an improving earnings outlook, which is a key factor in its Zacks Rank of 2 (Buy), while BL holds a Zacks Rank of 4 (Sell) [3][7].

Group 1 - Guangdong cities are accelerating key projects and investment attraction under the "Hundred Thousand Project" initiative [4] - Guangzhou signed 15 agricultural projects with a total investment exceeding 1.5 billion yuan, focusing on modern agricultural productivity [5][20] - Meizhou Pingyuan County signed projects worth 2.38 billion yuan in various sectors including copper materials and cold chain logistics [6][10] Group 2 - Jiangmen City launched a "Media+" initiative to empower seven actions, aiming to conduct over 100 live-streaming sales events in three years [13][42] - Shantou's Haojiang District introduced the cross-border e-commerce platform Dunhuang.com to enhance its cross-border industry ecosystem [11][141] - The "Media+" initiative in Shantou aims to activate the "2+10+N" agricultural industry structure [55] Group 3 - The "Hundred Thousand Project" is being promoted in various counties, with a focus on rural governance and environmental improvement [31][38] - The project aims to enhance agricultural efficiency, rural vitality, and farmer income through media integration [48][60] - The initiative includes training programs for women in community services and elder care to boost employment [66][70] Group 4 - The "Bamboo and Food Health" industry clusters are being developed in Pingyuan County to stimulate economic growth [130][117] - The establishment of the "Luo Ding Good Products" e-commerce platform aims to integrate resources for agricultural product sales [16][138] - The Dunhuang.com Shantou operation center will provide services to local businesses to enhance their international market success [146][148]

Core Insights - Definitive Healthcare Corp. reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, but down from $0.09 per share a year ago, resulting in an earnings surprise of +40.00% [1] - The company achieved revenues of $60.75 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.63%, although this is a decrease from $63.74 million year-over-year [2] - Definitive Healthcare has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Definitive Healthcare's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.06 on revenues of $59.09 million, and for the current fiscal year, it is $0.21 on revenues of $237.03 million [7] Industry Context - The Internet - Software industry, to which Definitive Healthcare belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $60.8 million, down 5% year over year, but above the high end of guidance, driven by early signs of improvement in renewal rates [6][23] - Adjusted EBITDA was $18.7 million, representing a 31% margin, reflecting good expense discipline [7][23] - Unlevered free cash flow for the trailing twelve months was $57 million, with a conversion rate of adjusted EBITDA to unlevered free cash flow at 80% [7][27] Business Line Data and Key Metrics Changes - Subscription revenue declined 6%, while professional services revenue increased by 46% year over year, partially offsetting subscription revenue pressures [24] - The company saw a modest improvement in renewal rates, with the highest retention rate since Q2 of the previous year [8][24] Market Data and Key Metrics Changes - The company is experiencing pressures in the life sciences segment, with elongated sales cycles and a cooling effect on buying decisions due to macroeconomic conditions [36][60] - The data partnership launched earlier in the year contributed a couple of points of growth to overall revenue [24][50] Company Strategy and Development Direction - The company is focused on four strategic pillars: differentiated data, data delivery and integrations, customer success, and innovation [10][11] - The leadership team has been augmented with new talent to drive progress and improve operational efficiency [20][21] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the macro environment but is confident in the steps taken to improve customer retention and drive growth [29][30] - The company expects revenue for Q3 2025 to be between $59 million and $60 million, reflecting a decline of 4% to 6% year over year [29][30] Other Important Information - The company repurchased approximately 6 million shares for about $19 million, leaving $58 million remaining under the share repurchase authorization [28] - Current remaining performance obligations were about flat year over year at $170 million, with deferred revenue up 5% year over year [28] Q&A Session Summary Question: What are you seeing in the sales cycles for your biopharma or healthcare provider clients? - Management noted no significant change from the previous quarter, with life sciences still experiencing latency and elongated decision timelines [35] Question: Are there any macro trends influencing your go-to-market strategy? - Management highlighted ongoing pressures due to the funding environment and regulatory uncertainty, focusing on quality data and integration capabilities [36] Question: Are you seeing any particular changes impacting the retention rate? - Management reported the strongest renewal levels in over a year, attributing this to operational changes and a focus on customer success [39] Question: What operational changes are impacting renewals? - Management emphasized the importance of integrated customers renewing at a higher rate and improvements in customer engagement processes [43] Question: Are boomerang customers emerging as a broader trend? - Management confirmed that while the competitive environment remains stable, there are instances of customers returning after experiencing lower-cost alternatives [71] Question: Is the focus on stemming down sales in life sciences related to a higher touch delivery model? - Management affirmed that higher touch services and integration are crucial for retaining life sciences customers [76]

Q2 2025 Performance - Total revenue decreased by 5% year-over-year, from $63.7 million to $60.8 million[16] - Adjusted Gross Profit decreased by 6% year-over-year, from $53.1 million to $50.0 million, with Adjusted Gross Profit margin contracting by 110 bps to 82%[16] - Adjusted EBITDA decreased by 11% year-over-year, from $20.9 million to $18.7 million, with Adjusted EBITDA margin contracting by 210 bps to 31%[16,18] - Unlevered Free Cash Flow (uFCF) decreased by 47% year-over-year, from $21.5 million to $11.5 million[20] Revenue Mix - Subscription revenue mix was 96%, with a 6% year-over-year decline[17] - Professional Services revenue mix was 4%, with a 46% year-over-year growth[17] Cash Flow and Balance Sheet - Cash, cash equivalents & short-term investments decreased by 38% year-over-year, from $296.5 million to $184.2 million[20] - Total debt outstanding decreased by 32% year-over-year, from $250.9 million to $170.6 million[20] - Total remaining performance obligations increased by 1% year-over-year, from $257.6 million to $261.4 million[20] Guidance - Q3 2025 Revenue is expected to be between $59.0 million and $60.0 million, a decrease of 6%-4% year-over-year[24] - Full Year 2025 Revenue is expected to be between $237.0 million and $240.0 million, a decrease of 6%-5% year-over-year[24]

[Part I. FINANCIAL INFORMATION](index=5&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) This section covers the company's financial statements, management's discussion and analysis, market risk disclosures, and controls [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and notes on key financial events Condensed Consolidated Balance Sheets Key Balance Sheet Items (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $80,984 | $105,378 | | Goodwill | $216,752 | $393,283 | | Total assets | $770,145 | $1,089,389 | | Term loan (current & long-term) | $169,035 | $243,118 | | Total liabilities | $358,912 | $482,195 | | Total equity | $411,233 | $607,194 | Condensed Consolidated Statements of Operations Performance Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $60,750 | $63,737 | $119,941 | $127,217 | | Gross Profit | $46,613 | $50,454 | $90,373 | $100,836 | | Loss from Operations | $(4,170) | $(369,641) | $(188,956) | $(385,890) | | Goodwill Impairment | $0 | $363,641 | $176,531 | $363,641 | | Net Loss | $(9,265) | $(306,187) | $(164,358) | $(318,905) | | Net Loss per Share (Basic & Diluted) | $(0.07) | $(1.81) | $(1.05) | $(1.90) | Condensed Consolidated Statements of Cash Flows Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $35,370 | $30,629 | | Net cash provided by (used in) investing activities | $73,383 | $(9,100) | | Net cash used in financing activities | $(134,406) | $(31,316) | | Net decrease in cash and cash equivalents | $(25,653) | $(9,787) | Notes to the Condensed Consolidated Financial Statements - The company acquired Carevoyance for **$13.7 million** in cash, adding **$7.1 million** in goodwill and **$7.0 million** in intangible assets[40](index=40&type=chunk)[41](index=41&type=chunk) - A **$176.5 million** non-cash goodwill impairment charge was recorded in Q1 2025 due to a sustained decrease in stock price and market capitalization[59](index=59&type=chunk)[184](index=184&type=chunk) - The credit agreement was amended in January 2025, establishing a **$175.0 million** term loan and a **$50.0 million** revolving credit facility, with **$69.1 million** of principal repaid[66](index=66&type=chunk)[67](index=67&type=chunk)[73](index=73&type=chunk) - The company repurchased **11.6 million** shares for **$40.2 million** under its stock repurchase programs in H1 2025[103](index=103&type=chunk)[105](index=105&type=chunk) - TRA liability decreased from **$63.2 million** to **$31.2 million**, driven by a **$17.8 million** remeasurement and **$13.8 million** in payments[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting macroeconomic headwinds, sales challenges, and lower renewal rates, leading to expected revenue decline and a significant goodwill impairment charge Recent Developments and Challenges - A **$176.5 million** non-cash goodwill impairment charge was recorded in Q1 2025 due to a sustained decrease in stock price[140](index=140&type=chunk) - Sales disruptions from go-to-market team changes in 2024 are impacting new customer acquisition and upsells, affecting 2025 results[145](index=145&type=chunk) - Macroeconomic conditions are causing longer deal cycles, deferred purchasing, and increased customer churn, especially among smaller and Life Sciences customers[151](index=151&type=chunk) - Executive transitions include a new CFO appointment and the elimination of the Chief Operating Officer role[147](index=147&type=chunk)[148](index=148&type=chunk) Key Metrics - Total customer count decreased from approximately **2,600** in June 2024 to **2,400** in June 2025[156](index=156&type=chunk) - Enterprise Customers (>$100k ARR) decreased from **537** to **510** over the same period[156](index=156&type=chunk) Remaining Performance Obligations (in thousands) | Obligation Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current (cRPO) | $170,327 | $188,050 | | Non-current | $91,084 | $105,673 | | **Total** | **$261,411** | **$293,723** | Results of Operations Comparison of Results for the Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $60,750 | $63,737 | -5% | | Gross Profit | $46,613 | $50,454 | -8% | | Operating Expenses | $50,783 | $420,095 | -88% | | Loss from Operations | $(4,170) | $(369,641) | 99% | - Q2 2025 revenue decreased by **$3.0 million (5%)** year-over-year, primarily due to a **$3.8 million** decline in subscription revenue, with operating expenses significantly lower due to a non-recurring **$363.6 million** goodwill impairment charge in the prior year[189](index=189&type=chunk)[191](index=191&type=chunk) Comparison of Results for the Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $119,941 | $127,217 | -6% | | Gross Profit | $90,373 | $100,836 | -10% | | Operating Expenses | $279,329 | $486,726 | -43% | | Loss from Operations | $(188,956) | $(385,890) | 51% | - H1 2025 revenue decreased by **$7.3 million (6%)** year-over-year, with operating expenses lower due to a reduced goodwill impairment charge of **$176.5 million** compared to **$363.6 million** in the prior period[195](index=195&type=chunk)[197](index=197&type=chunk) Non-GAAP Financial Measures Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Loss | $(9,265) | $(306,187) | $(164,358) | $(318,905) | | **Adjusted EBITDA** | **$18,656** | **$20,919** | **$33,362** | **$40,942** | | Adjusted EBITDA Margin | 31% | 33% | 28% | 32% | Liquidity and Capital Resources - As of June 30, 2025, the company held **$81.0 million** in cash, **$103.2 million** in short-term investments, and **$49.7 million** available under its Revolving Credit Facility[212](index=212&type=chunk) - Net cash from operating activities increased to **$35.4 million** in H1 2025 from **$30.6 million** in H1 2024[218](index=218&type=chunk)[219](index=219&type=chunk) - Cash used in financing activities totaled **$134.4 million** in H1 2025, primarily for **$73.4 million** in net debt repayments, **$40.2 million** in stock repurchases, and **$13.8 million** in TRA payments[221](index=221&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are interest rate fluctuations on variable-rate debt, mitigated by interest rate caps, with inflation and foreign currency risks deemed less material - The company faces interest rate risk on its **$170.6 million** variable-rate 2021 Term Loan, mitigated by an interest rate cap agreement[244](index=244&type=chunk) - A hypothetical **1.0%** interest rate change would impact H1 2025 interest expense by approximately **$0.9 million**[244](index=244&type=chunk) - Inflation has not materially affected the business, but significant future inflationary pressure could harm results if not offset by price increases[242](index=242&type=chunk) [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025[246](index=246&type=chunk) - No material changes to internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[247](index=247&type=chunk) [Part II. OTHER INFORMATION](index=61&type=section&id=Part%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, and other required disclosures [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but their resolution is not expected to materially affect financial position or results - The ultimate resolution of current legal proceedings is not expected to materially affect financial position, results of operations, or cash flows[251](index=251&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of its 2024 Annual Report on Form 10-K - No material changes in risk factors have occurred since the filing of the 2024 Form 10-K[252](index=252&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the exchange of LLC Units for Class A Common Stock and the company's stock repurchases, including **5,959,137** shares bought back in Q2 2025 for **$19.0 million** - During Q2 2025, **601,827** LLC Units were exchanged for an equivalent number of Class A Common Stock shares[253](index=253&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Total Cost (approx.) | | :--- | :--- | :--- | :--- | | April 2025 | 2,320,497 | $2.55 | $5.9M | | May 2025 | 1,524,675 | $3.33 | $5.1M | | June 2025 | 2,113,965 | $3.76 | $7.9M | | **Total** | **5,959,137** | **$3.18** | **$19.0M** | - Approximately **$58.1 million** remained available for repurchase under the 2025 Repurchase Program as of June 30, 2025[255](index=255&type=chunk)[257](index=257&type=chunk) [Item 3. Defaults Upon Senior Securities](index=62&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities to report - None[258](index=258&type=chunk) [Item 4. Mine Safety Disclosures](index=62&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable to the company's operations - Not applicable[259](index=259&type=chunk) [Item 5. Other Information](index=62&type=section&id=Item%205.%20Other%20Information) No other material information to report - No trading arrangements to report[260](index=260&type=chunk) [Item 6. Exhibits](index=63&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer - Lists exhibits filed with the report, including CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906[263](index=263&type=chunk)