Definitive Healthcare Corp. (DH) shares ended the last trading session 8.4% higher at $5.01. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.4% gain over the past four weeks.Definitive Healthcare is benefiting from improved renewal rates, successful customer win-backs, and a focus on product offerings, including unified platform development and new solutions like Market Forecast and Monocl Conferences.This compa ...

FRAMINGHAM, Mass., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Definitive Healthcare (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced that it has been named one of Built In’s 100 Best Places to Work in Boston, MA for 2025. The annual awards program includes companies of all sizes, from startups to large enterprises, and honors both remote-first employers as well as companies in large tech markets across the U.S. “We are honored to once again be recognized as a best place to work ...

Core Viewpoint - Definitive Healthcare Corp. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock valuation [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, driven by institutional investors who adjust their valuations based on these estimates [4][6]. Recent Earnings Estimate Revisions - Definitive Healthcare is projected to earn $0.34 per share for the fiscal year ending December 2024, representing a year-over-year increase of 13.3% [8]. - Over the past three months, the Zacks Consensus Estimate for Definitive Healthcare has increased by 71.4%, indicating a significant upward revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Definitive Healthcare to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

A downtrend has been apparent in Definitive Healthcare Corp. (DH) lately with too much selling pressure. The stock has declined 5.3% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.How to Determine if a Stock is OversoldWe use Relative Strength Index (RSI), one of the most commonly used technical in ...

FRAMINGHAM, Mass., Jan. 08, 2025 (GLOBE NEWSWIRE) -- Definitive Healthcare Corp. (“Definitive Healthcare”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced that its Chief Executive Officer, Kevin Coop, and its Chief Financial Officer, Rick Booth, will present at the 27th Annual Needham Growth Conference. The Definitive Healthcare presentation is scheduled for Wednesday, January 15, 2025, at 2:15 p.m. Eastern Time. About Definitive HealthcareAt Definitive Healthcare, ou ...

Investors might want to bet on Definitive Healthcare Corp. (DH) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation betw ...

Financial Data and Key Metrics - Total revenue for Q3 2024 was $62.7 million, down 4% year-over-year, but above the high end of the guidance range [8][31] - Adjusted EBITDA was $20.6 million, down 5% year-over-year, with an adjusted EBITDA margin of 33%, consistent with the prior year [8][31] - Adjusted net income grew 6% year-over-year to $15.4 million, with non-GAAP earnings per share increasing 5% to $0.10 [32] - Unlevered free cash flow was $24.3 million in Q3, and $85.2 million on a trailing 12-month basis, up 58% year-over-year [32][41] Business Line Performance - Subscription revenue decreased by low single digits, while professional services revenue declined more significantly [33] - The company ended Q3 with 530 enterprise customers, up 1 year-over-year but down 7 quarter-over-quarter [34] - Total customer accounts were approximately 2,570 at the end of Q3, down 200 year-over-year and 30 quarter-over-quarter [34] Market Performance - The company saw improvement in expansion sales activity compared to Q2, with some win-back customers returning [9] - Churn rates remained elevated, particularly in the life sciences market, impacting customer retention [10] - The company expects revenue to decline sequentially in Q4 and into early 2025, with a goal to return to sequential growth in the second half of 2025 [25][49] Strategic Direction and Industry Competition - The company is focusing on simplifying its product portfolio and developing a common platform to improve customer retention and upsell opportunities [11][15] - Two new product enhancements were introduced in Q3: Market Forecast and Monocl Conferences, aimed at improving customer value [20] - The company is committed to organic product development and strategic acquisitions to enhance its data and solutions [12] Management Commentary on Operating Environment and Future Outlook - Management highlighted the need for patience as operational changes take time to positively impact financial results [25] - The company expects continued revenue volatility in Q4 and 2025, with a focus on improving retention and reducing churn [25][49] - The Board approved a $100 million share buyback program, reflecting confidence in the company's long-term prospects [27] Other Important Information - The company recorded a $228.2 million goodwill impairment due to the current stock price, which is a noncash accounting charge [45] - The CFO, Rick Booth, will be leaving the company in June 2025, with a search process underway for his replacement [28] Q&A Session Summary Question: Demand Environment in Pharma and Life Sciences - The company noted modest improvement in some segments like provider and diversified, but pressures in life sciences remain, particularly due to delayed impacts from market improvements [55][57] Question: Growth Visibility for 2025 - The company expects revenue declines to moderate in 2025, with sequential growth returning in the second half of the year, but full-year revenue is expected to be down [63] Question: Competitive Environment - The company is not seeing significant competitive losses against major players like Veeva and IQVIA, with strong support from existing customers [81] Question: Unified Platform Strategy - The company is working on simplifying access to its products through a unified UI/UX interface, with further integration of back-office and data supply chain components expected to take longer [86][87] Question: Pricing Strategy - The company is considering a more sophisticated delivery mechanism to allow customers to optimize for service or price, while maintaining data quality leadership [83]

Definitive Healthcare Corp. (DH) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.08 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.09, delivering no surprise.Over the last four quarters, the company ha ...

Financial Performance - Revenue for Q3 2024 was $62.7 million, a decrease of 4.9% from $65.3 million in Q3 2023[12] - Gross profit for Q3 2024 was $49.0 million, down from $53.4 million in Q3 2023, reflecting a gross margin of 78.2%[12] - Net loss for Q3 2024 was $187.8 million, compared to a net loss of $248.7 million in Q3 2023, representing a 24.4% improvement[13] - Net loss attributable to Definitive Healthcare Corp. for Q3 2024 was $130.9 million, down from $171.5 million in Q3 2023[12] - Basic and diluted net loss per share for Q3 2024 was $(1.12), an improvement from $(1.50) in Q3 2023[12] - Comprehensive loss for Q3 2024 was $(188.8) million, compared to $(248.9) million in Q3 2023[13] - The company experienced a comprehensive loss of $961 million for the quarter ending September 30, 2024[15] - The net loss for the nine months ended September 30, 2023, was $506.729 million, compared to a net loss of $276.265 million for the same period in 2022, indicating a significant increase in losses[18] - The company experienced a net loss of $506.7 million for the nine months ended September 30, 2024, compared to a net loss of $276.3 million in the same period of 2023[121] Equity and Deficits - Total equity as of September 30, 2024, was $695.6 million, a decrease from $1.2 billion at the end of 2023[10] - Accumulated deficit increased to $(581.5) million as of September 30, 2024, compared to $(227.5) million at the end of 2023[10] - Total equity as of September 30, 2023, was $1.203 billion, with a significant accumulated deficit of $217.217 million[17] - The total accumulated deficit increased to $(581.499) million by September 30, 2024[15] Cash Flow and Investments - Cash flows provided by operating activities for the nine months ended September 30, 2023, were $50.061 million, up from $36.481 million in the prior year, reflecting improved operational efficiency[18] - Cash and cash equivalents at the end of the period were $137.609 million, an increase from $77.460 million at the end of the previous year[18] - The net cash used in investing activities was $139 million, primarily due to purchases of short-term investments totaling $192.670 million[18] - Cash used in financing activities totaled $43.4 million, driven by $15.0 million for stock repurchases and $10.3 million in repayments of the 2021 Term Loan[132] - As of September 30, 2024, the company held cash and cash equivalents totaling $87,869,000, with short-term investments including U.S. treasuries of $62,461,000 and commercial paper of $94,336,000[63] Acquisitions - Definitive Healthcare Corp. completed the acquisition of Carevoyance for $13.7 million in cash, with the transaction accounted for under the acquisition method[24] - The acquisition of Populi, Inc. was finalized for a total estimated consideration of $54.1 million, including $46.4 million in cash and up to $28.0 million in contingent consideration[26] - The company’s consolidated results include the operations of both Carevoyance and Populi from their respective acquisition dates[24][26] Goodwill and Impairments - The company recorded non-cash, pretax goodwill impairment charges of $228.2 million and $363.6 million during the three months ended September 30, 2024, and June 30, 2024, respectively[42] - Goodwill impairment charges of $228.2 million were recorded during the three months ended September 30, 2024, following declines in market capitalization[86] - Goodwill acquired during the nine months ended September 30, 2024, was $7,057,000, while the goodwill impairment loss for the same period was $591,794,000[43] Operating Expenses - Total operating expenses for Q3 2024 were $274.4 million, a decrease of 21.3% compared to $348.8 million in Q3 2023[12] - Operating expenses decreased by $74.4 million, or 21%, to $274.4 million for the three months ended September 30, 2024, driven by a lower goodwill impairment charge[110] - The company incurred restructuring and related charges of $8.0 million during the nine months ended September 30, 2024, as part of the 2024 Restructuring Plan[44] Stock Repurchase and Equity-Based Compensation - The company repurchased 3,144,516 shares of Class A Common Stock for $15,000,000 under a stock repurchase program authorized in May 2024[68] - The company authorized a stock repurchase program of up to $20,000,000 in share repurchases, set to expire on December 31, 2024[68] - Total equity-based compensation expense for the three months ended September 30, 2024, was $6,296,000, a decrease from $11,994,000 in the same period of 2023[70] Customer Metrics - The total customer count as of September 30, 2024, was approximately 2,570, down from approximately 2,750 customers as of September 30, 2023, reflecting a decrease due to higher churn rates among smaller customers[90] - The number of Enterprise Customers increased to 530 as of September 30, 2024, compared to 529 as of September 30, 2023, indicating stability in the higher revenue segment[90] Future Outlook - The company anticipates a decline in revenue in the final quarter of 2024 and into 2025 due to macroeconomic headwinds and sales execution challenges[101] - Gross profit margin is expected to decrease in 2025 due to revenue declines and a largely fixed cost structure[103] - The company expects its cash flow from operations and available liquidity to meet its needs for at least the next twelve months[127] Tax and Compliance - The effective tax rate for the three months ended September 30, 2024, was 6.8%, compared to 6.6% for the same period in 2023[71] - The company identified a material weakness in internal controls related to sales tax obligations, which remains unremediated as of September 30, 2024[144] - Management has engaged third-party tax experts and implemented additional controls to address the identified material weakness[146]

[Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) [Third Quarter 2024 Financial Highlights](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Highlights) Definitive Healthcare's Q3 2024 revenue was **$62.7 million**, a **4% decrease** year-over-year, with a **$187.8 million net loss** primarily due to a **$228.2 million goodwill impairment** Third Quarter 2024 Financial Performance | Financial Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $62.7 million | $65.3 million | -4% | | Net Loss | $(187.8) million | $(248.7) million | +24% | | Goodwill Impairment | $228.2 million | $287.4 million | - | | Adjusted Net Income | $15.4 million | $14.6 million | +5.5% | | Adjusted EBITDA | $20.6 million | $21.7 million | -5% | | Adjusted EBITDA Margin | 33% | 33% | 0% | | Cash Flow from Operations | $19.4 million | N/A | - | | Unlevered Free Cash Flow | $24.3 million | N/A | - | * CEO Kevin Coop reported financial performance **exceeded guidance** for revenue, adjusted net income, and adjusted EBITDA, noting improved expansion sales and the return of former customers as promising indicators[4](index=4&type=chunk) [Recent Business and Operating Highlights](index=2&type=section&id=Recent%20Business%20and%20Operating%20Highlights) The company's enterprise customer base (>$100k ARR) grew to **530** in Q3 2024, marked by the return of a leading Alzheimer's organization and new contracts with pharmaceutical and specialty food companies * The enterprise customer base (>$100k ARR) reached **530** by Q3 2024, an increase of **1** year-over-year[5](index=5&type=chunk) * Key customer wins in Q3 2024 include the return of a leading Alzheimer's organization, a pharmaceutical company utilizing the platform for market potential assessment, and a specialty food and beverage company leveraging 'View' and 'Populi' for targeted sales and marketing[5](index=5&type=chunk) [Corporate Updates](index=2&type=section&id=Corporate%20Updates) [Share Repurchase](index=2&type=section&id=Share%20Repurchase) The Board authorized a new **$100.0 million** stock repurchase program, commencing after the prior **$20.0 million** authorization and expiring December 31, 2025 * The Board authorized a new stock repurchase program of up to **$100.0 million**, effective upon completion of the prior **$20.0 million** program[6](index=6&type=chunk) * The new repurchase program expires on **December 31, 2025**, and will be executed via open market or negotiated transactions[6](index=6&type=chunk) [Executive Transition](index=3&type=section&id=Executive%20Transition) Chief Financial Officer Richard Booth will depart on **June 1, 2025**, with a search for his successor underway to ensure a smooth transition * CFO Richard Booth will depart the company on **June 1, 2025**[7](index=7&type=chunk) * A search for a new CFO is underway, considering both internal and external candidates, to ensure a smooth transition before Mr. Booth's departure[7](index=7&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) [Fourth Quarter 2024 Guidance](index=4&type=section&id=Fourth%20Quarter%202024%20Guidance) Definitive Healthcare projects Q4 2024 revenue between **$60.0 million** and **$61.0 million**, with Adjusted EBITDA of **$16.0 million** to **$17.0 million** and Adjusted Net Income per diluted share of approximately **$0.07** Fourth Quarter 2024 Financial Guidance | Metric | Q4 2024 Guidance | | :--- | :--- | | Revenue | $60.0 million – $61.0 million | | Adjusted Operating Income | $14.0 million – $15.0 million | | Adjusted EBITDA | $16.0 million – $17.0 million | | Adjusted EBITDA Margin | 26% – 28% | | Adjusted Net Income | $10.5 million – $11.5 million | | Adjusted Net Income Per Diluted Share | ~$0.07 | [Full Year 2024 Guidance](index=4&type=section&id=Full%20Year%202024%20Guidance) The company updated its full-year 2024 guidance, projecting revenue between **$250.0 million** and **$251.0 million**, Adjusted EBITDA of **$77.5 million** to **$78.5 million**, and Adjusted Net Income per diluted share of **$0.34** to **$0.35** Full Year 2024 Financial Guidance | Metric | Full Year 2024 Guidance | | :--- | :--- | | Revenue | $250.0 million – $251.0 million | | Adjusted Operating Income | $71.0 million – $72.0 million | | Adjusted EBITDA | $77.5 million – $78.5 million | | Adjusted EBITDA Margin | ~31% | | Adjusted Net Income | $53.0 million – $54.0 million | | Adjusted Net Income Per Diluted Share | $0.34 – $0.35 | [Financial Statements](index=11&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets decreased to **$1.18 billion** (due to goodwill reduction), total liabilities to **$486.1 million**, and total equity to **$695.6 million** Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $137,609 | $130,976 | | Goodwill | $490,343 | $1,075,080 | | **Total Assets** | **$1,181,653** | **$1,825,901** | | Total current liabilities | $148,176 | $170,682 | | Term loan (current & long-term) | $246,418 | $256,317 | | **Total Liabilities** | **$486,093** | **$626,727** | | **Total Equity** | **$695,560** | **$1,199,174** | [Condensed Consolidated Statements of Operations](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2024 revenue was **$62.7 million** (down **4%**), with a **$228.2 million** goodwill impairment leading to a **$187.8 million** net loss and **$(1.12)** net loss per share Condensed Consolidated Statements of Operations (in thousands) | Income Statement | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $62,697 | $65,325 | $189,914 | $185,483 | | Gross Profit | $49,031 | $53,430 | $149,867 | $150,514 | | Goodwill Impairment | $228,153 | $287,400 | $591,794 | $287,400 | | Loss from Operations | $(225,367) | $(295,378) | $(611,257) | $(319,720) | | Net Loss | $(187,824) | $(248,688) | $(506,729) | $(276,265) | | Net Loss per Share | $(1.12) | $(1.50) | $(3.02) | $(1.72) | * Total equity-based compensation expense for Q3 2024 was **$6.3 million**, a decrease from **$12.0 million** in Q3 2023[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash from operations was **$50.1 million**, net cash used in investing was **$0.1 million**, and net cash used in financing increased to **$43.4 million** Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $50,061 | $36,481 | | Net cash provided by (used in) investing activities | $(139) | $(86,189) | | Net cash used in financing activities | $(43,381) | $(19,522) | | Net increase (decrease) in cash | $6,541 | $(69,230) | | Cash and cash equivalents, end of period | $137,609 | $77,460 | [Non-GAAP Financial Measures & Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Reconciliation to Unlevered Free Cash Flow](index=16&type=section&id=Reconciliation%20to%20Unlevered%20Free%20Cash%20Flow) Unlevered Free Cash Flow for Q3 2024 was **$24.3 million** (up from **$17.7 million**), and **$74.1 million** for the nine-month period, derived from operating cash flow with adjustments Unlevered Free Cash Flow Reconciliation (in thousands) | Unlevered Free Cash Flow | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $19,432 | $9,487 | $50,061 | $36,481 | | **Unlevered Free Cash Flow** | **$24,299** | **$17,707** | **$74,064** | **$57,453** | [Reconciliation to Adjusted Net Income](index=16&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income) Adjusted Net Income for Q3 2024 was **$15.4 million** (or **$0.10** per diluted share), reconciled from a **$187.8 million** GAAP Net Loss by adding back goodwill impairment, amortization, and equity-based compensation Adjusted Net Income Reconciliation (in thousands) | Adjusted Net Income | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net loss | $(187,824) | $(248,688) | | Add: Goodwill impairment charge | $228,153 | $287,400 | | Add: Amortization of intangible assets | $11,485 | $11,666 | | Add: Equity-based compensation | $6,296 | $11,994 | | **Adjusted Net Income** | **$15,393** | **$14,576** | | **Adjusted Net Income Per Share** | **$0.10** | **$0.09** | [Reconciliation to Adjusted EBITDA](index=18&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q3 2024 was **$20.6 million** with a **33% margin**, primarily adjusted from GAAP Net Loss by adding back the **$228.2 million** goodwill impairment charge and other non-cash items Adjusted EBITDA Reconciliation (in thousands) | Adjusted EBITDA Reconciliation | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net loss and margin | $(187,824) (-300%) | $(248,688) (-381%) | | Add: D&A | $13,063 | $13,027 | | Add: Equity-based compensation | $6,296 | $11,994 | | Add: Goodwill impairment | $228,153 | $287,400 | | **Adjusted EBITDA and margin** | **$20,615 (33%)** | **$21,744 (33%)** | * The goodwill impairment charge resulted from sustained decreases in the company's stock price and market capitalization, triggering quantitative tests that showed the reporting unit's fair value was below its carrying value[39](index=39&type=chunk)