Definitive Healthcare Corp. (NASDAQ:DH) Q4 2023 Earnings Conference Call February 28, 2024 5:00 PM ET Company Participants Matt Ruderman - Chief Legal Officer Jason Krantz - Founder and Executive Chairman and Interim CEO Richard Booth - CFO Conference Call Participants Stephanie Davis - Barclays Craig Hettenbach - Morgan Stanley Craig Jones - Stifel Matthew Shea - Needham & Company Allen Lutz - Bank of America Jared Haase - William Blair Johnathan McCary - Raymond James George Hill - Deutsche Bank Operator ...

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, 2023 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 ...

FRAMINGHAM, Mass., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Definitive Healthcare Corp. (“Definitive Healthcare”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced that it will report financial results for its fourth quarter and full year ended December 31, 2023, on Wednesday, February 28, 2024 after market close. The company will host a conference call and webcast at 5:00 PM (ET) / 2:00 PM (PT) to discuss the company’s financial results. A live audio webcast of the event will ...

A downtrend has been apparent in Definitive Healthcare Corp. (DH) lately. While the stock has lost 5.8% over the past four weeks, it could witness a trend reversal as a hammer chart pattern was formed in its last trading session. This could mean that the bulls have been able to counteract the bears to help the stock find support.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about ...

| --- | --- | --- | --- | --- | |-------|------------------|---------------|-------|-------| | | | | | | | | | | | | | | | | | | | | Third quarter | 2023 earnings | | | | | presentation | | | | | | November 2, 2023 | | | | Cautionary statement regarding forward-looking statements 2 Forward-looking statements in this press release are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by t ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $65.3 million, representing a 14% year-over-year growth, and adjusted EBITDA was $21.7 million, translating into a 33% margin, both exceeding guidance [5][39][79] - Gross profit was $56 million, up 10% from Q3 2022, with an overall gross margin of 85.7%, a decrease of 280 basis points from the previous year [41] - Adjusted net income was $14.6 million, or $0.09 per diluted share, reflecting a 30% increase from Q3 2022 [74] Business Line Data and Key Metrics Changes - The company signed sizable new deals in each target market with both new and existing customers, indicating strong engagement despite macroeconomic challenges [6][10] - Product development expenses were $7.5 million, up 8% from Q3 2022, but as a percentage of revenue, they decreased to 11.5% [42] Market Data and Key Metrics Changes - The total customer account decreased to 2,922, down from 3,023 in Q3 2022, primarily due to the impact on smaller customers [71] - The company ended the quarter with 555 enterprise customers, an increase of 51 enterprise customers or 10% year-over-year [40] Company Strategy and Development Direction - The company is focused on controlling churn and has implemented initiatives to minimize it, particularly among larger clients who tend to renew at higher rates [8][9] - There is a balanced approach between growth and profitability, with continued investments in strategic areas to lay the foundation for faster growth when market conditions improve [10][85] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand generation remains solid, customers are scrutinizing budgets more tightly, leading to increased down-sell and churn in impacted markets [20][50] - The company expects to deliver on financial commitments for the year and remains optimistic about long-term growth opportunities despite current economic headwinds [90][111] Other Important Information - The company announced the acquisition of Populi, which is expected to enhance its health care commercial intelligence offerings [55] - A new Chief People Officer was welcomed to support the company's growth and evolution [89] Q&A Session Summary Question: Churn and its impact - Management acknowledged that churn is difficult to predict but expressed optimism about the positive impact of current initiatives [93] Question: New customer enterprise growth - Management clarified that churn is primarily among smaller customers, while enterprise customer growth reflects larger clients [99] Question: Net dollar retention (NDR) comparisons - NDR was noted to be trending in the low 90s, down from 102 at the end of the previous year, indicating a headwind [104] Question: 2024 revenue outlook - Management does not foresee a scenario where revenue would be down year-over-year, despite challenges [101] Question: Customer engagement and service opportunities - Management highlighted that professional services engagements strengthen relationships with large customers and could lead to further opportunities [144]

Revenue and Profitability - Revenue for Q3 2023 was $65.325 million, an increase of 14% compared to $57.382 million in Q3 2022[18]. - Gross profit for Q3 2023 was $53.430 million, up from $47.658 million in Q3 2022, reflecting a gross margin improvement[18]. - For the nine months ended September 30, 2023, the total revenue was $189.697 million, compared to $166.204 million for the same period in 2022[53]. - Subscription services revenue for the nine months ended September 30, 2023, was $180.4 million, up from $159.1 million in 2022, reflecting a growth of 13%[65]. - The company anticipates continued growth in revenue and is focused on strategic initiatives to enhance market position despite current challenges[13]. Expenses and Losses - Total operating expenses surged to $348.808 million in Q3 2023, compared to $57.720 million in Q3 2022, primarily due to a goodwill impairment of $287.400 million[18]. - Net loss for Q3 2023 was $248.688 million, significantly higher than the net loss of $6.885 million in Q3 2022[20]. - The company reported a basic and diluted net loss per share of $1.50 for Q3 2023, compared to $0.03 for Q3 2022[18]. - For the nine months ended September 30, 2023, the net loss was $276,265, compared to a net loss of $30,066 for the same period in 2022[27]. - The company reported a net loss of $280.870 million for the nine months ended September 30, 2023, compared to a net loss of $36.423 million for the same period in 2022[53]. Assets and Liabilities - Total assets decreased to $1.820 billion as of September 30, 2023, down from $2.123 billion at the end of 2022[16]. - Cash and cash equivalents were $77.460 million, a decline from $146.934 million at the end of 2022[16]. - Total liabilities were $616.084 million, slightly down from $640.679 million at the end of 2022[16]. - The total equity balance at September 30, 2023, was $116,281,962, with a Class A stock amount of $39,781,940 and a Class B stock amount of $1,077,330[23]. Goodwill and Acquisitions - The company reported a goodwill impairment charge of $287,400 for the nine months ended September 30, 2023[27]. - Goodwill recognized from the Populi acquisition amounted to $36.652 million, reflecting expected synergies and the assembled workforce[47]. - The Company completed the acquisition of Populi, Inc. for a total estimated consideration of $54.1 million, including $46.4 million in cash paid at closing[45]. - The Company completed the acquisition of the remaining 65% of AW's equity for $65.0 million, with a total consideration of $99.4 million including initial investment and contingent consideration[55][56]. Equity and Compensation - The company’s additional paid-in capital increased to $1.077 billion as of September 30, 2023, from $970.207 million at the end of 2022[16]. - For the nine months ended September 30, 2023, the total equity-based compensation expense was $35.5 million, compared to $25.0 million for the same period in 2022, reflecting a 42% increase[119]. - The company reported equity-based compensation of $11,994 for the quarter ending June 30, 2023[23]. Tax and Interest - The Company's effective tax rate for the nine months ended September 30, 2023, was 6.7%, compared to 2.1% for the same period in 2022[123]. - The company incurred $10,772 in interest expenses for the nine months ended September 30, 2023, compared to $7,248 in 2022[27]. - The total principal balance outstanding under the 2021 Term Loan was $261.3 million as of September 30, 2023[217]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2023, was $36,481, a decrease from $39,799 in 2022[27]. - Cash and cash equivalents at the end of the period were $77,460, down from $228,828 at the end of the same period in 2022[27]. - The company paid $45,023 for acquisitions, net of cash acquired, during the nine months ended September 30, 2023[27]. Financial Instruments and Risk Management - The Company uses interest rate swaps to manage interest rate risk, with valuations determined using widely accepted techniques including discounted cash flow analysis[102]. - The derivative interest rate swaps are designated and qualify as cash flow hedges, with changes in fair value recognized in accumulated other comprehensive income[94]. - As of September 30, 2023, the fair value of the contingent consideration from the acquisition of Populi was estimated to be $7.8 million, included in other long-term liabilities[105].

Financial Data and Key Metrics Changes - Revenue for Q2 2023 was $61 million, representing a 12% increase year-over-year and at the midpoint of guidance [20][27] - Adjusted EBITDA was $17.2 million, a 6% increase from Q2 2022, with an adjusted EBITDA margin of 28% [23][42] - Gross profit was $52.4 million, up 8% from Q2 2022, with a gross margin of 86%, which decreased by 260 basis points from the previous year [21][42] - Net income for Q2 was $12.4 million, or $0.08 per diluted share [23] Business Line Data and Key Metrics Changes - The company signed significant contracts across various sectors, including a multiyear enterprise contract with a global immunology company and a three-year contract with a Spanish pharmaceutical manufacturer [9][32] - The Passport Analytics Suite saw a significant enterprise sale, indicating strong demand for analytics solutions [33] Market Data and Key Metrics Changes - The healthcare market is described as complex and rapidly changing, with ongoing consolidation and the introduction of new technologies [6][8] - The company ended the quarter with 527 enterprise customers, an increase of 40 customers year-over-year but a decrease of two from the previous quarter [43] Company Strategy and Development Direction - The acquisition of Populi is aimed at enhancing the company's position in the healthcare commercial intelligence market, particularly in the provider segment [12][13] - The company remains focused on investing in product development and enhancing its data offerings to drive long-term growth [22][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth prospects despite current economic challenges, emphasizing the importance of strategic investments and sales execution [5][28] - The selling environment remains tough, with many customers deferring investments until business performance improves [28][70] Other Important Information - The company undertook a review of sales tax regulations, identifying potential liabilities but does not expect this to impact future profitability [47] - The company plans to continue making strategic investments while managing costs prudently [81] Q&A Session Summary Question: What is the outlook for the selling environment and workforce reduction? - Management acknowledged the tough selling environment and indicated that the workforce reduction was a strategic decision to align with current market conditions [51][81] Question: How is the company tracking sales productivity? - Management noted that sales productivity has declined due to lower-than-expected sales performance, which has been a trend over the past four quarters [104] Question: What are the expectations for net dollar retention (NDR)? - Management expects NDR to end the year in the mid- to low-90s, reflecting current market conditions [122] Question: How does the company view its market share and pricing environment? - Management believes the company is still gaining market share despite tougher closing conditions and has implemented normal price increases with reasonable realization [97][119]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 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 | | --- | --- ...

Definitive Healthcare Corp. (NASDAQ:DH) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET Company Participants Matt Ruderman – Chief Legal Officer Robert Musslewhite – Chief Executive Officer Jason Krantz – Founder and Executive Chairman Rick Booth – Chief Financial Officer Conference Call Participants Jared Haase – William Blair Matt Shea – Needham & Co. Craig Hettenbach – Morgan Stanley Joe Vruwink – Baird David Grossman – Stifel Allen Lutz – Bank of America Johnathan McCary – Raymond James Jonathan ...