Definitive Healthcare (US:DH)2021-11-07 16:00Revenue and Growth - Revenue for the three months ended September 30, 2021, was $43,084,000, representing a 43% increase from $30,073,000 in the same period of 2020[15]. - Total revenue for the nine months ended September 30, 2021, was $119.8 million, compared to $84.7 million for the same period in 2020, indicating a year-over-year increase of 41.4%[60]. - For the three months ended September 30, 2021, platform subscription revenue was $42.8 million, up from $29.7 million in the same period of 2020, representing a growth of 43.8%[60]. - Revenues from the United States for the nine months ended September 30, 2021, were $114.339 million, compared to $84.659 million for the same period in 2020, indicating a growth of 35%[142]. Profit and Loss - The net loss attributable to Definitive Healthcare Corp. for the three months ended September 30, 2021, was $7,978,000, with a net loss per share of $0.09[15]. - Net loss for the three months ended September 30, 2021, was $20,966,000, compared to a loss of $9,962,000 for the same period in 2020, representing a 110% increase in losses[18]. - Comprehensive loss attributable to Definitive Healthcare Corp. for the nine months ended September 30, 2021, was $46,338,000, compared to $35,295,000 for the same period in 2020, indicating a 31% increase[18]. - The company reported a comprehensive loss for the three months ended September 30, 2021, of $20,955,000, compared to $9,962,000 for the same period in 2020[18]. Expenses - Operating expenses for the three months ended September 30, 2021, totaled $36,625,000, up from $23,600,000 in the same period of 2020, reflecting a 55% increase[15]. - Total operating expenses for the nine months ended September 30, 2021, were $102,857,000, compared to $69,998,000 in the same period of 2020, marking a 47.0% increase[15]. - Cash paid for interest was $27.6 million for the nine months ended September 30, 2021, compared to $23.0 million in the same period of 2020, indicating a 20% increase[29]. - Equity-based compensation expenses rose to $4,338 for the nine months ended September 30, 2021, compared to $1,330 in the same period of 2020, reflecting a 226.5% increase[29]. Assets and Liabilities - Total current assets increased to $226,639,000 as of September 30, 2021, from $63,845,000 as of December 31, 2020[12]. - Total liabilities rose to $586,715,000 as of September 30, 2021, compared to $549,796,000 as of December 31, 2020[12]. - Cash and cash equivalents significantly increased to $189,752,000 as of September 30, 2021, from $24,774,000 as of December 31, 2020[12]. - The balance of members' equity at September 30, 2021, was $1,283,084,000, reflecting a decrease from $1,195,563,000 at December 31, 2020[20]. Deferred Revenue - The current portion of deferred revenue increased to $69,811,000 as of September 30, 2021, compared to $61,060,000 as of December 31, 2020[12]. - The company reported a significant increase in deferred revenue to $9.0 million for the nine months ended September 30, 2021, compared to $1.4 million in the same period of 2020, representing a 548% increase[29]. - Deferred revenues increased to $70.2 million as of September 30, 2021, compared to $61.2 million at the end of 2020, reflecting a growth of 14.9%[64]. IPO and Financing - The company completed its IPO on September 17, 2021, raising net proceeds of $452.8 million from the sale of 17,888,888 shares at $27.00 per share[35]. - The issuance of Class A Common Stock in the IPO generated net proceeds of $441,400,000 after costs of $11,394,000[23]. - The company repaid $474.6 million of outstanding principal balances from the 2019 Term Loan using proceeds from the 2021 Term Loan of $275.0 million and net proceeds from the IPO of $199.6 million[76]. Acquisition - The company completed the acquisition of Monocl for a total estimated consideration of $46.3 million, with potential earnout payments of up to $60 million based on Annual Recurring Revenue (ARR) targets[50][51]. - Monocl's revenue for the year ended December 31, 2020, was $1.2 million, with a net loss of $1.6 million included in the company's consolidated results[58]. - The fair value of contingent consideration related to the Monocl acquisition was estimated at $6.9 million as of September 30, 2021[52]. - The acquisition resulted in the recognition of goodwill amounting to $28.3 million, along with customer relationships valued at $11.9 million and other intangible assets[53]. Stock-Based Compensation - The total unrecognized stock-based compensation expense was estimated to be $39.1 million as of September 30, 2021, to be recognized over a weighted-average period of approximately 4.0 years[115]. - The Company recognized $2.3 million in total compensation expense for the three months ended September 30, 2021, compared to $458,000 for the same period in 2020[111]. - The company had approximately $18.4 million of unrecognized unit-based compensation expense for unvested time-based units as of September 30, 2021, expected to be recognized over a weighted-average period of approximately 2.8 years[124]. Management and Governance - The company appointed Robert Musslewhite as President effective October 7, 2021, with an annual base salary of $400,000 and a potential bonus of 68%[151]. - Definitive Healthcare Corp. held 88,263,333 units in Definitive OpCo, resulting in an ownership interest of 60.7% as of September 30, 2021[149].