Third quarter 2025 earnings presentation November 6, 2025 Cautionary statement regarding forward-looking statements This presentation includes forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the "safe harbor" protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be iden ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $60.8 million, down 5% year over year, but above the high end of guidance, driven by early signs of improvement in renewal rates [6][23] - Adjusted EBITDA was $18.7 million, representing a 31% margin, reflecting good expense discipline [7][23] - Unlevered free cash flow for the trailing twelve months was $57 million, with a conversion rate of adjusted EBITDA to unlevered free cash flow at 80% [7][27] Business Line Data and Key Metrics Changes - Subscription revenue declined 6%, while professional services revenue increased by 46% year over year, partially offsetting subscription revenue pressures [24] - The company saw a modest improvement in renewal rates, with the highest retention rate since Q2 of the previous year [8][24] Market Data and Key Metrics Changes - The company is experiencing pressures in the life sciences segment, with elongated sales cycles and a cooling effect on buying decisions due to macroeconomic conditions [36][60] - The data partnership launched earlier in the year contributed a couple of points of growth to overall revenue [24][50] Company Strategy and Development Direction - The company is focused on four strategic pillars: differentiated data, data delivery and integrations, customer success, and innovation [10][11] - The leadership team has been augmented with new talent to drive progress and improve operational efficiency [20][21] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the macro environment but is confident in the steps taken to improve customer retention and drive growth [29][30] - The company expects revenue for Q3 2025 to be between $59 million and $60 million, reflecting a decline of 4% to 6% year over year [29][30] Other Important Information - The company repurchased approximately 6 million shares for about $19 million, leaving $58 million remaining under the share repurchase authorization [28] - Current remaining performance obligations were about flat year over year at $170 million, with deferred revenue up 5% year over year [28] Q&A Session Summary Question: What are you seeing in the sales cycles for your biopharma or healthcare provider clients? - Management noted no significant change from the previous quarter, with life sciences still experiencing latency and elongated decision timelines [35] Question: Are there any macro trends influencing your go-to-market strategy? - Management highlighted ongoing pressures due to the funding environment and regulatory uncertainty, focusing on quality data and integration capabilities [36] Question: Are you seeing any particular changes impacting the retention rate? - Management reported the strongest renewal levels in over a year, attributing this to operational changes and a focus on customer success [39] Question: What operational changes are impacting renewals? - Management emphasized the importance of integrated customers renewing at a higher rate and improvements in customer engagement processes [43] Question: Are boomerang customers emerging as a broader trend? - Management confirmed that while the competitive environment remains stable, there are instances of customers returning after experiencing lower-cost alternatives [71] Question: Is the focus on stemming down sales in life sciences related to a higher touch delivery model? - Management affirmed that higher touch services and integration are crucial for retaining life sciences customers [76]

Q2 2025 Performance - Total revenue decreased by 5% year-over-year, from $63.7 million to $60.8 million[16] - Adjusted Gross Profit decreased by 6% year-over-year, from $53.1 million to $50.0 million, with Adjusted Gross Profit margin contracting by 110 bps to 82%[16] - Adjusted EBITDA decreased by 11% year-over-year, from $20.9 million to $18.7 million, with Adjusted EBITDA margin contracting by 210 bps to 31%[16,18] - Unlevered Free Cash Flow (uFCF) decreased by 47% year-over-year, from $21.5 million to $11.5 million[20] Revenue Mix - Subscription revenue mix was 96%, with a 6% year-over-year decline[17] - Professional Services revenue mix was 4%, with a 46% year-over-year growth[17] Cash Flow and Balance Sheet - Cash, cash equivalents & short-term investments decreased by 38% year-over-year, from $296.5 million to $184.2 million[20] - Total debt outstanding decreased by 32% year-over-year, from $250.9 million to $170.6 million[20] - Total remaining performance obligations increased by 1% year-over-year, from $257.6 million to $261.4 million[20] Guidance - Q3 2025 Revenue is expected to be between $59.0 million and $60.0 million, a decrease of 6%-4% year-over-year[24] - Full Year 2025 Revenue is expected to be between $237.0 million and $240.0 million, a decrease of 6%-5% year-over-year[24]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $59.2 million, down 7% year over year, but above the high end of guidance [5][21] - Adjusted EBITDA was $14.7 million, representing a 25% margin, which was well ahead of expectations [6][21] - Unlevered free cash flow for the trailing twelve months was $67.1 million, down 12% year over year, with a 91% conversion from adjusted EBITDA [27][28] Business Line Data and Key Metrics Changes - Subscription revenue declined 7% year over year, while Professional Services revenue grew by 9% in the quarter [23] - Adjusted gross profit was $47.1 million, down 11% from Q1 2024, with an adjusted gross profit margin of 79.5% [23] - Adjusted operating income was $12 million, down 35% from Q1 2024, with an adjusted EBITDA margin of 25% [26] Market Data and Key Metrics Changes - Renewal rates stabilized in Q1 at levels observed in the second half of 2024, but retention rates remain lower than desired [8][9] - New logo activity was solid across all end markets, indicating ongoing demand for differentiated actionable data [8] Company Strategy and Development Direction - The company is focusing on four strategic pillars: differentiated data, seamless integration, customer success, and digital engagement [9][18] - The goal is to improve retention rates and return to growth by enhancing the value proposition and performance across these areas [18] - The company is committed to managing costs while identifying additional ways to drive efficiencies [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational strategies despite economic uncertainties, aiming for sequential revenue growth in the near term [19] - The company is tightening its revenue guidance for 2025 to $234 million to $240 million, reflecting a 5% to 7% decline year over year [33] Other Important Information - The company repurchased approximately 5.6 million shares for a total of $21.2 million, leaving $77 million remaining under the existing authorization [29] - A goodwill impairment of $176.5 million was recorded due to stock price decline, which is a non-cash accounting charge [30] Q&A Session Summary Question: Can you elaborate on data integrations and their impact on retention? - Management indicated that data sharing and integration are crucial for enhancing customer retention, with a focus on facilitating data interactions through various platforms [37][39] Question: What is the agency strategy and its impact on the go-to-market motion? - The agency strategy is seen as applicable across all customer segments, aiming to leverage differentiated data to help customers activate their data effectively [41][43] Question: What is the expected timeframe for seeing growth inflection from operational changes? - Management expects to see signs of growth within the year as operational changes take effect, with a focus on aligning support functions and customer engagement [45][47] Question: How does the company plan to address churn and customer retention? - Management noted that while churn remains a challenge, stabilization is encouraging, and operational actions are expected to improve renewal rates later in the year [77][78] Question: What is the competitive environment like, especially against other pharma services companies? - Management acknowledged pressures in the Life Sciences sector due to macroeconomic factors but emphasized the company's focus on quality data as a competitive advantage [78][80]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $59.2 million, down 7% year over year, but above the high end of guidance [5][21] - Adjusted EBITDA was $14.7 million, representing a 25% margin, which was well ahead of expectations [6][21] - Unlevered free cash flow for the trailing twelve months was $67.1 million, down 12% year over year, with a 91% conversion from adjusted EBITDA [27][28] Business Line Data and Key Metrics Changes - Subscription revenue declined 7% year over year, while Professional Services revenue grew 9% in the quarter [23] - Adjusted gross profit was $47.1 million, down 11% from Q1 2024, with a gross profit margin of 79.5% [23] - Adjusted operating income was $12 million, down 35% from Q1 2024, with an operating income margin of 20% [26] Market Data and Key Metrics Changes - New logo activity was solid across all end markets, indicating ongoing demand for differentiated actionable data [7] - Renewal rates stabilized in Q1 at levels observed in the second half of 2024, but retention rates remain lower than desired [7][8] Company Strategy and Development Direction - The company is focusing on four strategic pillars: differentiated data, seamless integration, customer success, and digital engagement [9][18] - There is a commitment to improving retention rates and enhancing the value proposition through targeted investments in data quality and customer engagement [18][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational strategies despite lower retention rates, indicating a lag in seeing the positive impacts of changes made [8][19] - The company remains on track to meet full-year financial targets, with expectations for sequential revenue growth in the near term [19][33] Other Important Information - The company experienced a goodwill impairment of $176.5 million due to stock price decline, which is a non-cash accounting charge [29] - The company repurchased approximately 5.6 million shares for a total of $21.2 million, leaving $77 million remaining under the existing authorization [28] Q&A Session Summary Question: Can you elaborate on data integrations and challenges? - Management indicated that data sharing and integration depend on various factors, including data security and system compatibility, and they are working to facilitate these integrations [36][40] Question: What is the agency strategy and its impact on the go-to-market motion? - The agency strategy is seen as a logical next step to help customers activate data, applicable across all customer segments, with expectations for contributions this year [41][43] Question: What is the expected timeframe for seeing growth inflection? - Management anticipates seeing improvements in growth rates within the year as operational changes take effect [46][48] Question: How does the company plan to win back customers? - The company believes that high-quality data and service will create a competitive advantage, allowing them to win back former customers while also acquiring new ones [49][50] Question: What is the churn rate and competitive environment? - Churn rates were consistent with the second half of the previous year, and while there are pressures in the market, management has not observed significant changes in competitive dynamics [77][78]

Q1 2025 Performance - Total revenue decreased by 7% year-over-year to $59.2 million[16] - Adjusted EBITDA declined by 27% year-over-year, reaching $14.7 million[18] - Adjusted EBITDA margin contracted by 670 basis points year-over-year to 25%[18] - Unlevered Free Cash Flow (uFCF) was $22.9 million, a 19% decrease year-over-year[21] - Cash, cash equivalents, and short-term investments totaled $200.7 million, a 32% decrease year-over-year[21] Revenue Mix - Subscription revenue, constituting 97% of the total, experienced a 7% year-over-year decline[17] - Professional Services revenue, accounting for 3% of the total, grew by 9% year-over-year[17] Q2 and FY 2025 Guidance - The company projects Q2 2025 revenue to be between $58.5 million and $60.0 million, representing a year-over-year decrease of 8% to 6%[25] - The company anticipates full-year 2025 revenue to be between $234.0 million and $240.0 million, a year-over-year decrease of 7% to 5%[25] - The company expects full-year 2025 Adjusted EBITDA to be between $61.0 million and $65.0 million, representing 26% to 28% of revenue[25] Shareholder Statistics - Sponsor ownership (as-if converted) is 77,778,491 shares, representing 52.3% of total ownership[30] - Management, Directors & employees ownership is 25,424,644 shares, representing 17.1% of total ownership[30] - Float is 45,438,239 shares, representing 30.6% of total ownership[30]

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]