Definitive Healthcare Corp. · NASDAQ:DH
Definitive Healthcare — Q3 2024 Earnings Presentation
20 slides from Definitive Healthcare's earnings presentation, Nov 7, 2024
Slide 1: Third quarter 2024 earnings presentation
Third quarter 2024 earnings presentation November 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 and Additional factors or events that could cause our actual performance to differ from these forward-looking statements may fi
Slide 3: Q3'24
—~ Q3'24
Slide 4: Q3 2024 Performance Highlights
Q3 2024 Performance Highlights “Our financial performance this quarter exceeded the high end of our (4%) guidance on both revenue and profitability. We experienced an Revenue Decline YoY improvement in expansion sales compared to Q2 and were pleased to welcome back several former customers. While it
Slide 5: Q3 2024 Results
Q3 2024 Results (P&L on non-GAAP basis) Q3 Performance above high end of Q3 guided ranges Revenue Mix Maintained consistent adjusted EBITDA margin on down revenue as result of tight spend controls and savings Subscription, (3%) YoY from RiF done in early Q1’24 $ MILLIONS, YoY Professional Servic
Slide 6: Q3 2024 Cash Flow and Balance Sheet Highlights
Q3 2024 Cash Flow and Balance Sheet Highlights Strong uFCF generation of $24.3M, +37% YoY cRPO down 4% YoY, including ~(1pt) of impact from opt-out clauses $85.2 million TTM uFCF, +58% growth YoY $ millions Q3'24 Q3'23 YoY Change Cash Flow from Operations $19.4 $9.5 105% 105% Unlevered Free Cash
Slide 7: Guidance
Guidance 7
Slide 8: Q4 and FY 2024 Guidance
Q4 and FY 2024 Guidance (as of November 7, 2024) $ MILLIONS, except percentages and per share info Fourth Quarter 2024 Full Year 2024 Our updated full year guidance reflects a Revenue $60.0 - 61.0 $250.0 - 251.0 tightened range on revenue, maintaining % change YoY (9%) - (7%) (1%) - flat the high
Slide 9: Appendix: Non-GAAP reconciliations & basis of presentation
Appendix Non-GAAP reconciliations & basis of presentation 9
Slide 10: Q3 Performance and Guidance
Q3 Performance and Guidance $ MILLIONS, except percentages and per share info Third Quarter 2024 Guidance Range Revenue $62.7 $61.0 - 62.5 Q3 results were above the high end of the guided range % growth YoY (4%) (7%) - (4%) Revenue decline of (4%) was driven by low single-digit Adjusted Operatin
Slide 11: Key Shareholder Statistics
Key Shareholder Statistics Public Shares Minority Interest Key shareholder statistics as of 9/30/2024 (Class A) (Class B) Combined Comments 27K Class B shares were exchanged into 63,935,333 13,843,158 77,778,491 Sponsor ownership (as-if converted) Class A public shares in the quarter 271,919 25,55
Slide 12: 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 13: 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 13
Slide 14: Reconciliation from GAAP to non-GAAP operating expenses
Reconciliation from GAAP to non-GAAP operating expenses 1 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 e
Slide 15: Reconciliation from net loss to adjusted operating income and adjusted net income
Reconciliation from net loss to adjusted operating income and adjusted net income 15
Slide 16: Reconciliation from net loss to adjusted EBITDA
Reconciliation from net loss to adjusted EBITDA 16
Slide 17: Reconciliation from cash flow from operations to unlevered free cash flow
Reconciliation from cash flow from operations to unlevered free cash flow 1 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
Slide 18: Reconciliation from cash flow from operations to unlevered free cash flow
Reconciliation from cash flow from operations to unlevered free cash flow 1 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
Slide 19: Reconciliations of transaction, integration and restructuring expense and other non-core items
Reconciliations of transaction, integration and restructuring expense and other non-core items 19
Slide 20: Basis of presentation
Basis of presentation Enterprise Customers: Customers generating more than $100,000 in ARR RPO: Represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized in the futur
Definitive Healthcare — Q3 2024 Earnings Presentation on 6ix