Live Chat on The Biotech Forum has been dominated by discussion of lucrative buy-write or covered call opportunities on selected biotech stocks over the past several months. To see what I and the other season biotech investors are targeting as trading ideas real-time, just join our community at The Biotech Forum by clicking HERE .Today, we dive into Definitive Healthcare Corp. (NASDAQ: DH ) for the first time. This SaaS-enabled technology solution company is focused on the healthcare industry. On a P/E basi ...

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]