Full Press Release Details
Definitive Healthcare Reports Financial Results for Second Quarter Fiscal Year 2022
Second quarter revenue grew 37% year-over-year to $54.5 million
Framingham, MA (August 4, 2022) Definitive Healthcare Corp. ( Definitive Healthcare ) (Nasdaq: DH), an industry leader in healthcare
commercial intelligence, today announced financial results for the quarter ended June 30, 2022.
Second Quarter 2022 Financial and Other Recent
Financial Highlights:
We are pleased with our second quarter
2022 financial results, said Robert Musslewhite, CEO of Definitive Healthcare. We continued to see strong revenue growth and delivered adjusted EBITDA that demonstrates the leverage of our business model. Demand generation remains
healthy, and we are confident in Definitive Healthcare s growth prospects.
Recent Business and Operating Highlights:
In the second quarter, Definitive
Healthcare continued to grow its enterprise client base, ending the quarter with 486 enterprise customers, defined as those customers with more than one hundred thousand dollars in annual recurring revenue. Significant customer wins included:
In the second quarter of 2022, the company
released Monocl ExpertInsight 2.0 and Expert GO. Monocl ExpertInsight 2.0 is the next generation of the company s expert identification solution that significantly expands the capabilities of this product and provides customers access to nearly
13 million key opinion leaders. In this latest version, customers can use live filters that provide real-time updates of scientific activity by expert or therapeutic area and more granular search and key opinion leader mapping. ExpertGO is the
new mobile app that enables users to access the Monocl platform from any location on any device.
More recently, the company launched Passport Express the first product that integrates the
comprehensive analytics built by Analytical Wizards with proprietary data from Definitive Healthcare. Definitive Healthcare acquired Analytical Wizards in February 2022, and in less than six months, the combined product and engineering teams
designed and released a new product that delivers off-the-shelf healthcare commercial intelligence for more than 20 different therapy areas.
Based on information as of
August 4, 2022, the Company is issuing the following financial guidance.
Conference Call Information
Definitive Healthcare will host a conference call today, August 4, 2022, at 5:00 p.m. (Eastern Time) to discuss the Company s financial results and
current business outlook. To access the call, dial (844) 826-3033 (domestic) or (412) 317-5185 (international). The conference ID number is 10168289. Shortly after
the conclusion of the call, a replay of this conference call will be available through August 18, 2022 at (844) 512-2921 (domestic) or (412) 317-6671
(international). The replay passcode is 10168289. A live audio webcast of the event will be available on the Definitive Healthcare s Investor Relations website at https://ir.definitivehc.com/.
About Definitive Healthcare
At Definitive Healthcare, our
passion is to transform data, analytics, and expertise into healthcare commercial intelligence. We help clients uncover the right markets, opportunities, and people, so they can shape tomorrow s healthcare industry. Our SaaS platform creates
new paths to commercial success in the healthcare market, so companies can identify where to go next.
Forward-Looking Statements
This press release may include 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 identified by words or phrases written in the future tense and/or preceded by words such as likely, should, may, anticipates, intends, plans, seeks,
believes, estimates, expects or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive
means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the market, industry and macroeconomic environment, our business, growth
strategies, product development efforts and future expenses, customer growth and statements reflecting our expectations about our ability to execute on our strategic plans, achieve future growth and profitability and achieve our financial goals.
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 their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict.
As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the
following: an outbreak of disease, global or localized health pandemic or epidemic, or the fear of such an event (such as the COVID-19 global pandemic), including the global economic uncertainty and measures
taken in response; the short- and long-term effects of the COVID-19 global pandemic, including the pace of recovery or any future resurgence; uncertainty regarding ongoing hostility between Russia and Ukraine
and the related impact on macroeconomic conditions, actual or potential changes in international, national, regional and local economic, business and financial conditions, including recession, inflation and higher interest rates; our inability to
generate substantially all of our revenue and cash flows from sales of subscriptions to our platform and any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete
effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced
demand for our platform; the risk that our recent growth rates may not be indicative of our future growth; the inability to achieve or sustain profitability in the future compared to historical levels as we increase investments in our business; the
loss of our access to our data providers, which could negatively impact our platform; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; the
risk of cyber-attacks and security vulnerabilities; and if our security measures are breached or unauthorized access to data is otherwise obtained, our platform may be perceived as not being secure, customers may reduce the use of or stop using our
platform, and we may incur significant liabilities.
Additional factors or events that could cause our actual performance to differ from these forward-looking
statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results
of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements.
For additional discussion of factors that could impact our operational and financial results, refer to our Quarterly Report on Form 10-Q for the three months ended June 30, 2022 that will be filed following this earnings release and our Annual Report on Form 10-K for the fiscal year ended
December 31, 2021, and our subsequent SEC filings, which are or will be available on the Investor Relations page of our website at ir.definitivehc.com and on the SEC website at www.sec.gov.
Any forward-looking statement made by us speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Definitive Healthcare intends to use its website as a distribution channel of material company information. Financial and other important information
regarding the Company is routinely posted on and accessible through the Company s website at https://www.definitivehc.com/. Accordingly, you should monitor the investor relations portion of our website at
https://ir.definitivehc.com/ in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll
your email address by visiting the Email Alerts section of our investor relations page at https://ir.definitivehc.com/.
Non-GAAP Financial Measures
We have presented supplemental
non-GAAP financial measures as part of this earnings release. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow
for an evaluation of the company with a focus on the performance of its core operations, including providing meaningful comparisons of financial results to historical periods and to the financial results of peer and competitor companies. A
reconciliation of GAAP to Non-GAAP results has been provided in the financial statement tables included at the end of this press release.
We refer to Unlevered Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted
Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Diluted Share as non-GAAP financial measures. These
non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the U.S., ( GAAP ). These are supplemental financial measures of our performance and should
not be considered substitutes for net (loss) income, gross profit or any other measure derived in accordance with GAAP.
Unlevered Free Cash Flow as net cash provided from operating activities less purchases of property, equipment and other assets, plus cash interest expense and cash payments related to transaction and restructuring related expenses, earnouts and
other non-recurring items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service
We define EBITDA as earnings before debt-related costs, including interest expense, net and loss on extinguishment of
debt, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including other income and expense, equity-based compensation, transaction and
restructuring expenses and other non-recurring expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by
management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful measures to investors to assess our operating performance because these metrics eliminate non-recurring and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to
investors in measuring the profitability of our operations on a consolidated level.
We define Adjusted Gross Profit as revenue less cost of revenue (excluding
acquisition-related depreciation and amortization and equity compensation costs) and Adjusted Gross Margin means Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit differs from gross profit, in that gross profit includes
acquisition-related depreciation and amortization expense and equity compensation costs. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude
acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small quantity of equity-based compensation is included in cost of revenue in accordance with
GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.
We define Adjusted Operating Income as income (loss) from operations plus acquisition related amortization, equity-based compensation,
transaction and restructuring expenses and other non-recurring expenses.
Net Income as Adjusted Operating Income less interest expense, net, other expense, net, excluding TRA liability remeasurement expense and recurring income tax expense including the incremental tax effects of adjustments to arrive at Adjusted
Operating Income. We define Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted outstanding shares.
use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not
measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented
in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to (loss) income from operations, net (loss) income, gross profit, earnings per share or any other
performance measures derived in accordance with GAAP, or as measures of operating cash flows or liquidity.
quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict
certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, taxes and amounts under the exchange tax receivable agreement, deferred tax assets
and deferred tax liabilities, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact on our future GAAP financial results.
In evaluating our non-GAAP financial measures,
you should be aware that in the future we may incur expenses similar to those eliminated in these presentations.
ICR for Definitive Healthcare
Definitive Healthcare Corp.
Condensed Consolidated Balance Sheets
(amounts in thousands, except number of shares and par value)