Definitive Healthcare Corp. · NASDAQ:DH
Definitive Healthcare — Q1 2024 Earnings Presentation
34 slides from Definitive Healthcare's earnings presentation, May 7, 2024
Slide 1: First quarter 2024 earnings presentation
First quarter 2024 earnings presentation May 7, 2024
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements This presentation includes forward-looking statements that reflect our current views with respect to future events Additional factors or events that could cause our actual performance to differ from these forward-looking and financial perform
Slide 3: Company overview
—— Company overview
Slide 4: Investment highlights
Investment highlights Category-defining software platform 1 for healthcare commercial intelligence 4 Delivered via mission-critical SaaS platform deeply embedded into customer workflow and analytics Large and growing $10B+ TAM1 in Demonstrated combination of high 2 healthcare market with significant
Slide 5: Large and underpenetrated market opportunity
Large and underpenetrated market opportunity Life $10B+ Providers sciences Diversified TAM1 Existing customer X X X ARR by segment Top Quartile Top Half Top Half (HCIT) All (other diversified) ~2.8K 100K+ ~3% Customers today Potential customers Penetrated 1 TAM or “Total Addressable Market” refers t
Slide 6: Multiple drivers of future growth
Multiple drivers of future growth Acquire new Expand with existing Innovate to strengthen Selective strategic customers customers our platform acquisitions Multiple levers to drive long-term sustainable growth 6
Slide 7: The Atlas Dataset delivers a truer picture of your target market
The Atlas Dataset delivers a truer picture of your target market At one midwestern IDN in 2021… Adding analysis based on organization- Mapping DH reference and Physician-level claims lens alone dramatically level claims refines the number of affiliation data with claims provides overstates the numbe
Slide 8: The Atlas Dataset gets your sales team to the right locations where the buyers are
The Atlas Dataset gets your sales team to the right locations where the buyers are A pharmaceutical firm wanted to find the doctors who could Due to centralized billing, 72% of Using claims data alone, sales reps claims flowed through one NPI – would have gone to a billing office prescribe their dru
Slide 9: Experienced and innovative management team
Experienced and innovative management team Jason Krantz Jon Maack Rick Booth Carrie Lazorchak Founder, Exec. Chairman, Chief Financial Officer Chief Revenue Officer INTERIM CEO, President and Interim CEO FOUNDER & EXECUTIVE CHAIRMAN with bold vision; named Entrepreneur of the Year, New England in 20
Slide 10: Selected videos about Definitive Healthcare
Selected videos about Definitive Healthcare Definitive Healthcare Definitive Healthcare Definitive Healthcare corporate “explainer” video product demonstration video introduction (2 MINUTES) (10 MINUTES) (30 MINUTES) Populi product demo Passport Planning & Performance Passport Planning & Performance
Slide 11: Financial highlights
Financial highlights 11
Slide 12: Financial highlights
Financial highlights HIGH AND SUSTAINABLE GROWTH STRONG NON-GAAP PROFITABILITY VISIBILITY AND CONSISTENCY INTO LARGE MARKET Platform scale High gross margin SaaS business model $254M 13% 85% 97% Q1 2024 Revenue 2023 Subscription Revenue 2023 Adj. Gross Margin1 Run Rate Revenue Growth YoY (2023) Grow
Slide 13: Net dollar retention
Net dollar retention All customers 108% NDR 102% NDR 91% NDR Customers 111% NDR 103% NDR 91% NDR >$17,500 ARR 96% of ARR 97% of ARR 98% of ARR 120% NDR 110% NDR 96% NDR 57% of ARR 61% of ARR 64.5% of ARR Enterprise Customers >$100,000 ARR 2021 2022 2023 Note: See Basis of Presentation for definition
Slide 14: Q1 results
Q1 results 14
Slide 15: Q1 performance
Q1 performance $ MILLIONS, except percentages and per share info First Quarter 2024 Guidance Range Comments Revenue $63.5 $63.0 - 65.0 • Revenue – 1% below midpoint % growth YoY 7% 6% - 10% • Adjusted Operating Income – 0% or $0.1 million above Adjusted Operating Income $18.6 $18.0 - 19.0 midpoint %
Slide 16: Key Shareholder Statistics
Key Shareholder Statistics Public Shares Minority Interest Comments Key shareholder statistics as of 3/31/2024 (Class A) (Class B) Combined 63,935,333 13,843,158 77,778,491 • 51k Class B shares were exchanged into Class Sponsor ownership (as-if converted) A public shares in the quarter 283,509 25,39
Slide 17: Balance sheet highlights
Balance sheet highlights March 31, March 31, $ MILLIONS, except net leverage ratio 2024 2023 YoY Growth 1 Comments Cash, cash equivalents & short-term investments $295.20 $343.90 -48.7 -14% • Cash & Debt – Strong balance sheet positions us to Total debt outstanding 2 $254.38 $264.69 -10.3 -4% move q
Slide 18: Guidance
Guidance 18
Slide 19: Q2 and FY Guidance
Q2 and FY Guidance (as of May 7, 2024) $ MILLIONS, except percentages and per share info Second Quarter 2024 Full Year 2024 Revenue $62.0 - 63.5 $255.0 - 261.0 % growth YoY 2 - 4% 1 - 4% Adjusted Operating Income $17.0 - 18.5 $75.0 – 78.0 % of revenue 27 - 29% 29% - 30% Adjusted EBITDA $18.5 -20.0 $
Slide 20: Appendix: Non-GAAP reconciliations & basis of presentation
Appendix Non-GAAP reconciliations & basis of presentation 20
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures We define Unlevered Free Cash Flow as net cash provided by (used in) operating activities less purchases of property, equipment and other assets, plus cash interest expense, and cash payments related to transaction, integration, and restructuring related expenses, earnout
Slide 22: Reconciliation from GAAP gross profit and margin to adjusted gross profit and margin
Reconciliation from GAAP gross profit and margin to adjusted gross profit and margin Alerts 22
Slide 23: Reconciliation from GAAP to Core operating expenses
Reconciliation from GAAP to Core operating expenses Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational and unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique and extraor
Slide 24: Reconciliation from net loss to adjusted operating income and adjusted net income
Reconciliation from net loss to adjusted operating income and adjusted net income 24
Slide 25: Reconciliation from net loss to adjusted EBITDA
Reconciliation from net loss to adjusted EBITDA 25
Slide 26: Reconciliation from cash flow from operations to unlevered free cash flow
Reconciliation from cash flow from operations to unlevered free cash flow Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions; restructuring expenses paid in cash relate to our restructuring plans announced in t
Slide 27: Reconciliations of transaction, integration and restructuring expense and other non-core items
Reconciliations of transaction, integration and restructuring expense and other non-core items 27
Slide 28: Reconciliation from GAAP gross profit to adjusted gross profit [FY2023]
Reconciliation from GAAP gross profit and margin to adjusted gross profit and margin [FY2023] Alerts 28
Slide 29: Reconciliation from GAAP to Core operating expenses [FY2023]
Reconciliation from GAAP to Core operating expenses [FY2023] Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational and unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique an
Slide 30: Reconciliation from net loss to adjusted operating income and adjusted net income [FY2023]
Reconciliation from net loss to adjusted operating income and adjusted net income [FY2023] 30
Slide 31: Reconciliation from net loss to adjusted EBITDA [FY2023]
Reconciliation from net loss to adjusted EBITDA [FY2023] 31
Slide 32: Reconciliation from cash flow from operations to unlevered free cash flow [FY2023]
Reconciliation from cash flow from operations to unlevered free cash flow [FY2023] Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions; restructuring expenses paid in cash relate to our restructuring plans annou
Slide 33: Reconciliations of transaction, integration and restructuring expense [FY2023]
Reconciliations of transaction, integration and restructuring expense and other non-core items [FY2023] 33
Slide 34: Basis of presentation
Basis of presentation TAM: TAM or “Total Addressable Market” refers to the revenue opportunity that we believe is available for both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as our healthcare commercial intelligence platform, a subset of the Global
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