[Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) [Third Quarter 2024 Financial Highlights](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Highlights) Definitive Healthcare's Q3 2024 revenue was **$62.7 million**, a **4% decrease** year-over-year, with a **$187.8 million net loss** primarily due to a **$228.2 million goodwill impairment** Third Quarter 2024 Financial Performance | Financial Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $62.7 million | $65.3 million | -4% | | Net Loss | $(187.8) million | $(248.7) million | +24% | | Goodwill Impairment | $228.2 million | $287.4 million | - | | Adjusted Net Income | $15.4 million | $14.6 million | +5.5% | | Adjusted EBITDA | $20.6 million | $21.7 million | -5% | | Adjusted EBITDA Margin | 33% | 33% | 0% | | Cash Flow from Operations | $19.4 million | N/A | - | | Unlevered Free Cash Flow | $24.3 million | N/A | - | * CEO Kevin Coop reported financial performance **exceeded guidance** for revenue, adjusted net income, and adjusted EBITDA, noting improved expansion sales and the return of former customers as promising indicators[4](index=4&type=chunk) [Recent Business and Operating Highlights](index=2&type=section&id=Recent%20Business%20and%20Operating%20Highlights) The company's enterprise customer base (>$100k ARR) grew to **530** in Q3 2024, marked by the return of a leading Alzheimer's organization and new contracts with pharmaceutical and specialty food companies * The enterprise customer base (>$100k ARR) reached **530** by Q3 2024, an increase of **1** year-over-year[5](index=5&type=chunk) * Key customer wins in Q3 2024 include the return of a leading Alzheimer's organization, a pharmaceutical company utilizing the platform for market potential assessment, and a specialty food and beverage company leveraging 'View' and 'Populi' for targeted sales and marketing[5](index=5&type=chunk) [Corporate Updates](index=2&type=section&id=Corporate%20Updates) [Share Repurchase](index=2&type=section&id=Share%20Repurchase) The Board authorized a new **$100.0 million** stock repurchase program, commencing after the prior **$20.0 million** authorization and expiring December 31, 2025 * The Board authorized a new stock repurchase program of up to **$100.0 million**, effective upon completion of the prior **$20.0 million** program[6](index=6&type=chunk) * The new repurchase program expires on **December 31, 2025**, and will be executed via open market or negotiated transactions[6](index=6&type=chunk) [Executive Transition](index=3&type=section&id=Executive%20Transition) Chief Financial Officer Richard Booth will depart on **June 1, 2025**, with a search for his successor underway to ensure a smooth transition * CFO Richard Booth will depart the company on **June 1, 2025**[7](index=7&type=chunk) * A search for a new CFO is underway, considering both internal and external candidates, to ensure a smooth transition before Mr. Booth's departure[7](index=7&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) [Fourth Quarter 2024 Guidance](index=4&type=section&id=Fourth%20Quarter%202024%20Guidance) Definitive Healthcare projects Q4 2024 revenue between **$60.0 million** and **$61.0 million**, with Adjusted EBITDA of **$16.0 million** to **$17.0 million** and Adjusted Net Income per diluted share of approximately **$0.07** Fourth Quarter 2024 Financial Guidance | Metric | Q4 2024 Guidance | | :--- | :--- | | Revenue | $60.0 million – $61.0 million | | Adjusted Operating Income | $14.0 million – $15.0 million | | Adjusted EBITDA | $16.0 million – $17.0 million | | Adjusted EBITDA Margin | 26% – 28% | | Adjusted Net Income | $10.5 million – $11.5 million | | Adjusted Net Income Per Diluted Share | ~$0.07 | [Full Year 2024 Guidance](index=4&type=section&id=Full%20Year%202024%20Guidance) The company updated its full-year 2024 guidance, projecting revenue between **$250.0 million** and **$251.0 million**, Adjusted EBITDA of **$77.5 million** to **$78.5 million**, and Adjusted Net Income per diluted share of **$0.34** to **$0.35** Full Year 2024 Financial Guidance | Metric | Full Year 2024 Guidance | | :--- | :--- | | Revenue | $250.0 million – $251.0 million | | Adjusted Operating Income | $71.0 million – $72.0 million | | Adjusted EBITDA | $77.5 million – $78.5 million | | Adjusted EBITDA Margin | ~31% | | Adjusted Net Income | $53.0 million – $54.0 million | | Adjusted Net Income Per Diluted Share | $0.34 – $0.35 | [Financial Statements](index=11&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets decreased to **$1.18 billion** (due to goodwill reduction), total liabilities to **$486.1 million**, and total equity to **$695.6 million** Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $137,609 | $130,976 | | Goodwill | $490,343 | $1,075,080 | | **Total Assets** | **$1,181,653** | **$1,825,901** | | Total current liabilities | $148,176 | $170,682 | | Term loan (current & long-term) | $246,418 | $256,317 | | **Total Liabilities** | **$486,093** | **$626,727** | | **Total Equity** | **$695,560** | **$1,199,174** | [Condensed Consolidated Statements of Operations](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2024 revenue was **$62.7 million** (down **4%**), with a **$228.2 million** goodwill impairment leading to a **$187.8 million** net loss and **$(1.12)** net loss per share Condensed Consolidated Statements of Operations (in thousands) | Income Statement | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $62,697 | $65,325 | $189,914 | $185,483 | | Gross Profit | $49,031 | $53,430 | $149,867 | $150,514 | | Goodwill Impairment | $228,153 | $287,400 | $591,794 | $287,400 | | Loss from Operations | $(225,367) | $(295,378) | $(611,257) | $(319,720) | | Net Loss | $(187,824) | $(248,688) | $(506,729) | $(276,265) | | Net Loss per Share | $(1.12) | $(1.50) | $(3.02) | $(1.72) | * Total equity-based compensation expense for Q3 2024 was **$6.3 million**, a decrease from **$12.0 million** in Q3 2023[31](index=31&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash from operations was **$50.1 million**, net cash used in investing was **$0.1 million**, and net cash used in financing increased to **$43.4 million** Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $50,061 | $36,481 | | Net cash provided by (used in) investing activities | $(139) | $(86,189) | | Net cash used in financing activities | $(43,381) | $(19,522) | | Net increase (decrease) in cash | $6,541 | $(69,230) | | Cash and cash equivalents, end of period | $137,609 | $77,460 | [Non-GAAP Financial Measures & Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) [Reconciliation to Unlevered Free Cash Flow](index=16&type=section&id=Reconciliation%20to%20Unlevered%20Free%20Cash%20Flow) Unlevered Free Cash Flow for Q3 2024 was **$24.3 million** (up from **$17.7 million**), and **$74.1 million** for the nine-month period, derived from operating cash flow with adjustments Unlevered Free Cash Flow Reconciliation (in thousands) | Unlevered Free Cash Flow | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $19,432 | $9,487 | $50,061 | $36,481 | | **Unlevered Free Cash Flow** | **$24,299** | **$17,707** | **$74,064** | **$57,453** | [Reconciliation to Adjusted Net Income](index=16&type=section&id=Reconciliation%20to%20Adjusted%20Net%20Income) Adjusted Net Income for Q3 2024 was **$15.4 million** (or **$0.10** per diluted share), reconciled from a **$187.8 million** GAAP Net Loss by adding back goodwill impairment, amortization, and equity-based compensation Adjusted Net Income Reconciliation (in thousands) | Adjusted Net Income | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net loss | $(187,824) | $(248,688) | | Add: Goodwill impairment charge | $228,153 | $287,400 | | Add: Amortization of intangible assets | $11,485 | $11,666 | | Add: Equity-based compensation | $6,296 | $11,994 | | **Adjusted Net Income** | **$15,393** | **$14,576** | | **Adjusted Net Income Per Share** | **$0.10** | **$0.09** | [Reconciliation to Adjusted EBITDA](index=18&type=section&id=Reconciliation%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q3 2024 was **$20.6 million** with a **33% margin**, primarily adjusted from GAAP Net Loss by adding back the **$228.2 million** goodwill impairment charge and other non-cash items Adjusted EBITDA Reconciliation (in thousands) | Adjusted EBITDA Reconciliation | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net loss and margin | $(187,824) (-300%) | $(248,688) (-381%) | | Add: D&A | $13,063 | $13,027 | | Add: Equity-based compensation | $6,296 | $11,994 | | Add: Goodwill impairment | $228,153 | $287,400 | | **Adjusted EBITDA and margin** | **$20,615 (33%)** | **$21,744 (33%)** | * The goodwill impairment charge resulted from sustained decreases in the company's stock price and market capitalization, triggering quantitative tests that showed the reporting unit's fair value was below its carrying value[39](index=39&type=chunk)

Core Insights - Definitive Healthcare reported a revenue of $62.7 million for Q3 2024, a decrease of 4% from $65.3 million in Q3 2023 [2] - The company experienced a net loss of $(187.8) million, which includes goodwill impairment charges of $228.2 million, compared to a net loss of $(248.7) million in Q3 2023 [2] - Adjusted net income for the quarter was $15.4 million, an increase from $14.6 million in Q3 2023 [2] - The CEO highlighted improved expansion sales and the return of several former customers as positive indicators for future momentum [3] Financial Performance - Revenue for Q3 2024 was $62.7 million, down 4% from Q3 2023 [2] - Adjusted EBITDA was $20.6 million, a decrease of 5% from Q3 2023, maintaining a 33% margin [2] - Cash flow from operations was $19.4 million, with unlevered free cash flow at $24.3 million [2] Customer Growth - The enterprise customer base grew by one year-over-year, totaling 530 customers [4] - Notable customer wins included a leading health organization focused on Alzheimer's care and a California-based pharmaceutical company [4][5] Share Repurchase Program - The Board of Directors authorized a stock repurchase program of up to $100 million, effective upon completion of a previous $20 million program [7] Executive Transition - The CFO, Richard Booth, will leave the company effective June 1, 2025, with a search for his successor commencing [8][9] Business Outlook - For Q4 2024, revenue is expected to be between $60.0 million and $61.0 million, with adjusted net income projected at $10.5 million to $11.5 million [10] - Full-year 2024 revenue is anticipated to be in the range of $250.0 million to $251.0 million [11]

FRAMINGHAM, Mass., Oct. 10, 2024 (GLOBE NEWSWIRE) -- Definitive Healthcare (Nasdaq: DH), a leader in healthcare commercial intelligence, today announced the launch of Market Forecast, a powerful predictive analytics solution designed to help healthcare organizations uncover high-growth markets and service line opportunities to strengthen investments and partnerships. Delivering year-over-year growth rate and market demand projections up to 10 years out, Market Forecast enables business development teams, se ...

Overview of the Recent Transaction On September 30, 2024, Irenic Capital Management LP (Trades, Portfolio) made a significant addition to its investment portfolio by acquiring 6,413,185 shares of Definitive Healtheare Corp (DH, Financial). This transaction, executed at a price of $4.47 per share, marks a substantial inscease in the firm's holdings in the healtheare sector, reflecting a strategic move to bolster its position in this industry. Irenic Capital Management LP (Trades, Portfolio), based at 767 Fif ...

FRAMINGHAM, Mass., Aug. 27, 2024 (GLOBE NEWSWIRE) -- Definitive Healthcare (Nasdaq: DH), a leader in healthcare commercial intelligence, today announced the expansion of its Population Intelligence platform to a broader range of industries selling into healthcare. Building on its success in offering healthcare provider organizations patient and consumer analytics, Population Intelligence now supports businesses in additional sectors—such as advertising, marketing, telehealth, staffing, and medical supply—to ...

Tom Werner Investment summary My previous investment thought on Definitive Healthcare (NASDAQ:DH) (published in June) was a hold rating because of the poor near-term outlook, which I expected to be heavily pressured by the weak macro environment. I was also not positive that management pivoted their salesforce to focus on enterprise accounts. I rate DH with a hold rating again as the near-term outlook remains impaired, supported by recent results, 2H24 implied guidance, and a poor sales cycle. While I see t ...

Definitive Healthcare Corp. (NASDAQ:DH) Q2 2024 Earnings Conference Call August 5, 2024 5:00 PM ET Company Participants Matt Ruderman - Investor Relations Kevin Coop - Chief Executive Officer Rick Booth - Chief Financial Officer Conference Call Participants Saket Kalia - Barclays Craig Hettenbach - Morgan Stanley Joe Vruwink - Baird David Grossman - Stifel Matt Shea - Needham & Company Hanna Lee - Bank of America John McCary - Raymond James Jared Haase - William Blair Operator Welcome to Definitive Healthca ...

August 5, 2024 Second quarter 2024 earnings presentation Cautionary statement regarding forward-looking statements References in this presentation to profitability are on an Adjusted EBITDA basis. 2 | --- | --- ...

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, 2024 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 juri ...

Exhibit 99.1 Definitive Healthcare Reports Financial Results for Second Quarter Fiscal Year 2024 Second quarter revenue grew 5% year-over-year to $63.7 million Framingham, MA (August 5, 2024) – Definitive Healthcare Corp. ("Definitive Healthcare" or the "Company") (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter ended June 30, 2024. Second Quarter 2024 Financial Highlights: • Revenue was $63.7 million, an increase of 5% from $61.0 mill ...