Financial Data and Key Metrics Changes - Total revenue for Q4 2025 was $61.5 million, down 1% year-over-year, but above the high end of guidance [4][21] - Adjusted EBITDA was $18.1 million, representing a margin of 29%, which was $1.1 million above the high end of guidance [4][21] - Adjusted net income was $8.6 million, resulting in $0.06 of non-GAAP earnings per share [21] - Unlevered Free Cash Flow for the trailing 12 months was approximately $55 million [5][21] - Full year 2025 total revenue was $241.5 million, a 4% decline year-over-year [23] Business Line Data and Key Metrics Changes - Subscription revenues were $58.5 million, down 3% year-over-year, or down 7% excluding data partnership contributions [21] - Professional services revenue increased by 49% year-over-year, driven by traditional analytics engagements and a ramp-up in digital activations [22] - Adjusted gross profit for Q4 was $50.2 million, flat from Q4 2024, with a gross profit margin of 82% [22] Market Data and Key Metrics Changes - Gross dollar retention improved by about 2 points year-over-year, indicating stabilization efforts are taking effect [23][43] - Net dollar retention declined due to ongoing pressure in upsell opportunities [23][45] Company Strategy and Development Direction - The company focuses on four strategic pillars: data differentiation, integrations, customer success, and innovation [5][18] - A new claims data source was introduced, restoring claims data volumes to above historical levels [6][7] - The company aims to return to consistent revenue growth while improving customer retention [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the remediation of claims data disruption and its positive impact on performance moving into 2026 [37][46] - The macro environment remains challenging, but the company is focused on areas it can control and is making necessary investments [20][33] - Management expects modest improvements in net dollar retention in 2026, viewing 2025 as the bottom [56][79] Other Important Information - The company capitalized about $6 million in software development spend, a $5 million increase over the prior year [25] - Deferred revenue at the end of Q4 was $99 million, up 6% year-over-year [25] Q&A Session Summary Question: Update on demand environment across end markets - Management noted improvements in retention trends and confidence in the strategy focused on data quality and integrations [37][39] Question: Insights on renewal cycles and end markets - Management highlighted improvements in gross dollar retention driven by enterprise customers, particularly in life sciences [43][44] Question: Impact of AI on customer conversations - Management emphasized that AI is seen as a competitive advantage, enhancing existing workflows rather than detracting from traditional vendors [52][54] Question: Expectations for net dollar retention recovery - Management expects modest improvements in net dollar retention in 2026, with confidence stemming from product innovation and data remediation efforts [56][79] Question: Dynamics in the life sciences end market - Management reported stabilization in gross dollar retention and ongoing engagement with long-standing relationships in the life sciences space [85][86]

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]