[Definitive Healthcare Q1 2025 Earnings Release](index=1&type=section&id=Definitive%20Healthcare%20Reports%20Financial%20Results%20for%20First%20Quarter%20Fiscal%20Year%202025) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Q1 2025 results surpassed guidance despite a revenue decline, impacted by a significant goodwill impairment Q1 2025 Key Financial Metrics | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $59.2M | $63.5M | -7% | | Net Loss | $(155.1)M | $(12.7)M | Increased Loss | | Adjusted Net Income | $7.0M | $13.0M | -46% | | Adjusted EBITDA | $14.7M | $20.0M | -26.5% | | Adjusted EBITDA Margin | 25% | 32% | -7 pts | | Cash Flow from Operations | $26.1M | $16.6M (from Q1 2024 cash flow statement) | +57% | | Unlevered Free Cash Flow | $22.9M | $28.3M (from reconciliation) | -19% | - The company recorded a **goodwill impairment charge of $176.5 million** in Q1 2025, the primary driver of the significant GAAP Net Loss[4](index=4&type=chunk) - CEO Kevin Coop stated that the results were **above the high end of guidance** and the company remains on track to meet full-year financial targets[4](index=4&type=chunk) [Recent Business and Operating Highlights](index=2&type=section&id=Recent%20Business%20and%20Operating%20Highlights) The company secured new customers and expanded key relationships across all end-markets in Q1 2025 - A medical device company selected the **Carevoyance platform** to identify high-value sales targets like ambulatory surgery centers and hospitals[5](index=5&type=chunk) - A regional health system is using the **Populi platform** to support service line expansions, physician recruitment, and telemedicine growth[5](index=5&type=chunk) - A leading office supply company **returned as a customer**, citing the superiority of Definitive Healthcare's data and Salesforce integration[5](index=5&type=chunk) - The company is expanding its focus on digital marketing activation by signing two leading healthcare advertising agencies[5](index=5&type=chunk) [Business Outlook](index=3&type=section&id=Business%20Outlook) The company issued Q2 2025 guidance and raised the low end of its full-year 2025 revenue forecast - The company does not provide a quantitative reconciliation for forward-looking non-GAAP measures due to high variability in predicting certain excluded items[9](index=9&type=chunk) [Second Quarter 2025 Guidance](index=3&type=section&id=Second%20Quarter%202025%3A) The company anticipates Q2 2025 revenue between $58.5M and $60.0M and Adjusted EBITDA of $15.0M to $16.0M Q2 2025 Guidance | Metric | Q2 2025 Guidance | | :--- | :--- | | Revenue | $58.5M – $60.0M | | Adjusted Operating Income | $12.0M – $13.0M | | Adjusted EBITDA | $15.0M – $16.0M | | Adjusted EBITDA Margin | 25% – 27% | | Adjusted Net Income | $6.5M – $7.5M | | Adjusted Net Income Per Diluted Share | $0.04 – $0.05 | [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%3A) Full-year 2025 revenue guidance was raised to $234.0M-$240.0M, with Adjusted EBITDA of $61.0M-$65.0M Full Year 2025 Guidance | Metric | Full Year 2025 Guidance | | :--- | :--- | | Revenue | $234.0M – $240.0M | | Adjusted Operating Income | $49.0M – $53.0M | | Adjusted EBITDA | $61.0M – $65.0M | | Adjusted EBITDA Margin | 26% – 28% | | Adjusted Net Income | $30.0M – $34.0M | | Adjusted Net Income Per Diluted Share | $0.20 – $0.23 | - The company **raised the bottom end** of its prior full-year revenue guidance range by **$4.0 million**[10](index=10&type=chunk) [Financial Statements](index=11&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $808.7M, primarily due to a $176.5M goodwill impairment charge Key Balance Sheet Items (in thousands) | Balance Sheet Item (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $106,099 | $105,378 | | Goodwill | $216,752 | $393,283 | | Total Assets | $808,657 | $1,089,389 | | Total Liabilities | $372,752 | $482,195 | | Total Equity | $435,905 | $607,194 | [Condensed Consolidated Statements of Operations](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue was $59.2M, with a net loss of $155.1M driven by a goodwill impairment charge Key Income Statement Items (in thousands) | Income Statement Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $59,191 | $63,480 | | Gross Profit | $43,760 | $50,382 | | Goodwill Impairment | $176,531 | $0 | | Loss from Operations | $(184,786) | $(16,249) | | Net Loss | $(155,093) | $(12,718) | | Net Loss Per Share (Basic & Diluted) | $(0.95) | $(0.08) | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to $26.1M in Q1 2025, up from $16.6M in the prior-year period Key Cash Flow Items (in thousands) | Cash Flow Item (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,066 | $16,589 | | Net cash provided by (used in) investing activities | $83,545 | $(24,034) | | Net cash used in financing activities | $(109,706) | $(17,194) | | Cash and cash equivalents, end of period | $106,099 | $105,994 | - Financing activities in Q1 2025 included **$21.2 million for repurchases** of Class A Common Stock and net debt repayment activity[33](index=33&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides definitions and reconciliations for non-GAAP measures to their closest GAAP equivalents - The company uses non-GAAP measures to provide a view of performance focused on core operations, excluding non-core or non-cash items[19](index=19&type=chunk)[22](index=22&type=chunk) - The **goodwill impairment charge of $176.5 million** was triggered by a sustained decrease in the company's stock price[44](index=44&type=chunk) [Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow](index=14&type=section&id=Reconciliation%20of%20GAAP%20Operating%20Cash%20Flow%20to%20Unlevered%20Free%20Cash%20Flow) Unlevered Free Cash Flow was $22.9M in Q1 2025, down from $28.3M in the prior-year quarter Reconciliation to Unlevered FCF (in thousands) | Reconciliation to Unlevered FCF (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,066 | $16,589 | | Less: Purchases of property, equipment, etc. | $(7,706) | $(266) | | Add: Interest paid in cash | $2,242 | $3,642 | | Add: Transaction, integration, etc. paid in cash | $1,763 | $8,264 | | Unlevered Free Cash Flow | $22,925 | $28,303 | [Reconciliation of GAAP Net Loss to Adjusted Net Income](index=14&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20to%20Adjusted%20Net%20Income) Adjusted Net Income was $7.0M in Q1 2025, reconciled from a GAAP Net Loss of $155.1M Reconciliation to Adjusted Net Income (in thousands) | Reconciliation to Adjusted Net Income (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(155,093) | $(12,718) | | Adjustments (Goodwill, Amortization, etc.) | $167,071 | $25,760 | | Adjusted Net Income | $6,972 | $13,042 | | Adjusted Net Income Per Share | $0.05 | $0.08 | [Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin](index=15&type=section&id=Reconciliation%20of%20GAAP%20Gross%20Profit%20and%20Margin%20to%20Adjusted%20Gross%20Profit%20and%20Margin) Adjusted Gross Profit was $47.1M (80% margin) in Q1 2025, down from $53.1M (84% margin) in Q1 2024 Gross Profit Reconciliation (in thousands) | Gross Profit Reconciliation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Reported gross profit | $43,760 (74%) | $50,382 (79%) | | Add: Amortization of intangible assets | $3,153 | $2,443 | | Add: Equity compensation costs | $160 | $271 | | Adjusted gross profit | $47,073 (80%) | $53,096 (84%) | [Reconciliation of GAAP Net Loss and Margin to Adjusted EBITDA and Margin](index=15&type=section&id=Reconciliation%20of%20GAAP%20Net%20Loss%20and%20Margin%20to%20Adjusted%20EBITDA%20and%20Margin) Adjusted EBITDA was $14.7M (25% margin) in Q1 2025, down from $20.0M (32% margin) in Q1 2024 EBITDA Reconciliation (in thousands) | EBITDA Reconciliation (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(155,093) | $(12,718) | | Add: Interest, Taxes, D&A | $3,812 | $11,793 | | EBITDA | $(151,274) | $(925) | | Add: Other adjustments (Goodwill, Equity Comp, etc.) | $165,980 | $20,948 | | Adjusted EBITDA | $14,706 | $20,023 | | Adjusted EBITDA Margin | 25% | 32% |

Core Insights - Definitive Healthcare Corp. reported first quarter results exceeding guidance for both revenue and earnings, driven by strong new customer acquisition and operational efficiency [3][4][6] - The company anticipates revenue for the second quarter of 2025 to be between $58.5 million and $60.0 million, with adjusted operating income expected to be between $12.0 million and $13.0 million [7][8] - For the full year 2025, revenue is projected to be in the range of $234.0 million to $240.0 million, with adjusted net income expected to be between $30.0 million and $34.0 million [13] Financial Performance - Revenue for Q1 2025 was $59.2 million, a decrease of 7% from $63.5 million in Q1 2024 [6] - The net loss for the quarter was $(155.1) million, or (262)% of revenue, compared to $(12.7) million or (20)% of revenue in Q1 2024 [6] - Adjusted net income was $7.0 million, down from $13.0 million in Q1 2024, while adjusted EBITDA was $14.7 million, or 25% of revenue, compared to $20.0 million, or 32% of revenue in Q1 2024 [6][31] Customer Acquisition and Business Development - The company secured several new customer wins in Q1 2025, including a California-based medical device company and a regional health system in the Southern US, highlighting the effectiveness of its data and insights [7] - Definitive Healthcare is expanding its focus on digital marketing activation partnerships, having signed two leading healthcare advertising agencies [7] Cash Flow and Operational Efficiency - Cash flow from operations was $26.1 million in the quarter, with unlevered free cash flow at $22.9 million [6] - The company continues to focus on operational efficiency despite rising macroeconomic uncertainty, maintaining a positive outlook for meeting full-year financial targets [3][4]

Financial Results Announcement - Definitive Healthcare Corp. will report its financial results for the first quarter ended March 31, 2025, on May 8, 2025, after market close [1] - A conference call and webcast will be held at 5:00 PM (ET) / 2:00 PM (PT) to discuss the financial results [1] Webcast and Replay Information - A live audio webcast of the event will be available on Definitive Healthcare's Investor Relations website [2] - A replay of the conference call will be available through June 7, 2025, with specific dial-in numbers and a passcode provided for access [2] Company Overview - Definitive Healthcare aims to transform data, analytics, and expertise into healthcare commercial intelligence, helping clients identify markets and opportunities [3] - The company's SaaS products and solutions are designed to create new paths to commercial success in the healthcare market [3]

Group 1 - Definitive Healthcare announced the hiring of two senior leaders, Kate Hastings as Chief Customer Officer and Benjamin Graboske as EVP, Technology, Engineering and Chief Data Officer [1] - The Human Capital Management and Compensation Committee granted inducement awards consisting of 172,414 time-based restricted stock units (RSUs) to Hastings and 1,018,330 time-based RSUs to Graboske, effective March 3, 2025 [1] - The awards were individually negotiated and granted as an inducement material to the commencement of employment in accordance with Nasdaq Listing Rule 5635(c)(4) [1] Group 2 - Hastings' RSUs will vest 25% on February 1, 2026, with the remainder vesting in quarterly installments of 6.25% over the following three years [2] - Graboske's RSUs will vest 25% on April 1, 2026, with the remainder vesting in quarterly installments of 6.25% over the following three years [3] Group 3 - Definitive Healthcare focuses on transforming data, analytics, and expertise into healthcare commercial intelligence, helping clients identify markets, opportunities, and key personnel [4]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $62.3 million, down 6% year-over-year, reflecting customer retention challenges [7][38] - Adjusted EBITDA was $17.5 million, down 12% year-over-year, with an adjusted EBITDA margin of 28% [8][46] - Unlevered free cash flow was $72.5 million on a trailing 12-month basis, up 6% year-over-year [50] - Adjusted net income grew by 18% year-over-year, with non-GAAP earnings per share increasing by 19% [38] Business Line Data and Key Metrics Changes - Subscription revenue decreased by 4% year-over-year, while professional services revenue declined more significantly [39] - The company ended Q4 with 519 enterprise customers, a decrease of 21 year-over-year [40] - Net dollar retention for 2024 was 90% for enterprise customers and 85% overall [41] Market Data and Key Metrics Changes - Churn rates remained elevated, particularly in the life sciences sector, with downsells being a significant factor rather than outright losses [10][71] - The total customer count decreased to approximately 2,500, down about 250 from Q4 2023 [41] Company Strategy and Development Direction - The company is focusing on four key pillars: differentiated data, data delivery and integrations, driving customer success, and enabling digital engagement [16][63] - Strategic initiatives include combining sales channels and aligning customer success teams to improve retention and value delivery [14][31] - The company aims to enhance its master data management capabilities to better serve diverse customer needs [24][119] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that returning to growth will take longer than initially anticipated due to ongoing churn and macroeconomic conditions [30][63] - The company expects Q1 2025 to be a low point for revenue, with gradual improvement anticipated in subsequent quarters [55][79] - Guidance for 2025 includes a revenue forecast of $230 million to $240 million, reflecting a 5% to 9% decline year-over-year [60] Other Important Information - A $97 million goodwill impairment charge was recorded due to a decline in stock price, which is a non-cash accounting charge [54] - The company has amended its credit facilities to improve balance sheet efficiency, reducing total debt to $175 million [52] Q&A Session Summary Question: Can you provide more details on churn dynamics? - Management indicated that churn was more pronounced in life sciences, with Q4 churn being unfavorable compared to Q4 2023 [71][73] Question: Are you assuming that elongation in sales cycles persists in 2025? - Management expects Q1 to be challenging but anticipates sequential growth in Q2 due to a full quarterly revenue from a new data partnership [78][80] Question: What is embedded in the outlook regarding new customers versus upsell opportunities? - Recent performance has shown stronger results with new logos, while upsell opportunities face pricing pressure [85] Question: Have you seen a shift in marketing budgets from digital to in-person channels? - Management noted that while there is a macro environment affecting life sciences, they do not see a significant impact on their business from this shift [90][91] Question: Can you elaborate on why clients are downselling? - Management identified operational execution and pricing strategies as key areas to address customer needs and improve retention [99][101]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $62.3 million, down 6% year-over-year, reflecting customer retention challenges [8][39] - Adjusted EBITDA was $17.5 million, down 12% year-over-year, with an adjusted EBITDA margin of 28% [9][47] - Unlevered free cash flow was $72.5 million on a trailing 12-month basis, up 6% year-over-year [51] - Adjusted net income grew by 18% year-over-year, with non-GAAP earnings per share increasing by 19% [39] Business Line Data and Key Metrics Changes - Subscription revenue decreased by 4% year-over-year, while professional services revenue declined more significantly [40] - The company ended Q4 with 519 enterprise customers, a decrease of 21 year-over-year [41] - Net dollar retention for 2024 was 90% for enterprise customers and 85% overall [42] Market Data and Key Metrics Changes - The total customer count was approximately 2,500, down about 250 from Q4 2023 [42] - Churn rates remained elevated, particularly in the life sciences sector, impacting overall performance [11][72] Company Strategy and Development Direction - The company is focusing on four key pillars: differentiated data, data delivery and integrations, driving customer success, and enabling digital engagement [17][64] - Strategic initiatives include combining sales channels and aligning customer success teams to improve retention and value delivery [15][32] - The company aims to enhance its master data management capabilities to better serve diverse customer needs [25][100] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that improvements in retention and growth will take longer than initially anticipated [16][31] - The company expects Q1 2025 to be a low point for revenue, with gradual improvement anticipated throughout the year [56][80] - Guidance for 2025 indicates a revenue decline of 5% to 9% year-over-year, with expectations for sequential growth in Q2 [58][61] Other Important Information - A $97 million goodwill impairment charge was recorded due to stock price decline, which is a non-cash accounting charge [55] - The company has amended its credit facilities to improve balance sheet efficiency, reducing total debt [53] Q&A Session Summary Question: Can you provide more details on churn dynamics? - Management indicated that churn was more pronounced in life sciences, with Q4 churn being unfavorable compared to Q4 2023 [72][74] Question: Are you assuming elongation in the sales cycle for 2025? - Management expects Q1 to be challenging due to churn dynamics but anticipates revenue declines to moderate as the year progresses [80] Question: What is embedded in the outlook regarding new customers versus upsell opportunities? - Recent performance has shown stronger results with new logos, while upsell opportunities face pricing pressure [86] Question: Have you seen a shift in marketing budgets from digital to in-person channels? - Management noted that while there is a macro environment affecting life sciences, they do not see a significant impact on their business from this shift [91] Question: Can you elaborate on why clients are downselling? - Management identified operational execution and pricing strategies as key areas to address customer needs and improve retention [99][100]

Company Performance - Definitive Healthcare Corp. reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and showing an increase from $0.07 per share a year ago, resulting in an earnings surprise of 14.29% [1] - The company posted revenues of $62.29 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.02%, although this represents a decline from year-ago revenues of $65.93 million [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Definitive Healthcare shares have increased approximately 24.1% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $59.65 million, and for the current fiscal year, it is $0.30 on revenues of $241.89 million [7] Industry Outlook - The Internet - Software industry, to which Definitive Healthcare belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-40815 Definitive Healthcare Corp. (Exact name of Registrant as specified in its Charter) Delaware 86-3988281 (State or other jurisdic ...

Exhibit 99.1 Definitive Healthcare Reports Financial Results for Fourth Quarter and Full Fiscal Year 2024 Fourth quarter and full year 2024 revenue exceeded guidance Framingham, MA (February 27, 2025) – Definitive Healthcare Corp. ("Definitive Healthcare" or the "Company") (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter and full year ended December 31, 2024. Fourth Quarter 2024 Financial Highlights: Full Year 2024 Financial Highlights ...

Fourth quarter and full year 2024 revenue exceeded guidanceFRAMINGHAM, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter and full year ended December 31, 2024. Fourth Quarter 2024 Financial Highlights: Revenue was $62.3 million, a decrease of 6% from $65.9 million in Q4 2023. Net Loss, inclusive of goodwill impairment charges ...