Definitive Healthcare Corp. · NASDAQ:DH
Definitive Healthcare — Q2 2024 Earnings Presentation
21 slides from Definitive Healthcare's earnings presentation, Aug 5, 2024
Slide 1: Second quarter 2024 earnings presentation
Second quarter 2024 earnings presentation August 5, 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: Q2'24
—— Q2'24
Slide 4: Q2 2024 Performance Highlights
Q2 2024 Performance Highlights 5% “Financial performance in the quarter underscored our commitment to Revenue Growth YoY operational efficiency and profitability. In my first 30 days as CEO, I’m even more confident that this is a business with strong fundamentals. We have a 537 great team with deep
Slide 5: Q2 2024 Results
Q2 2024 Results (P&L on non-GAAP basis) Q2 Performance above high end of Q2 guided ranges Revenue Mix Strong operating leverage and profit generation Subscription, +5% YoY YoY $ MILLIONS Q2'24 Q2'23 Change Total Revenue $63.7 $61.0 5% Professional Services, +3% YoY Adjusted Gross Profit $53.1 $5
Slide 6: Q2 2024 Cash Flow and Balance Sheet Highlights
Q2 2024 Cash Flow and Balance Sheet Highlights Solid uFCF generation of $21.5M, +13% YoY cRPO down 3% YoY, including ~(3pts) of impact from opt-out clauses $78.6 million TTM uFCF, +50% growth YoY $ MILLLIONS Q2'24 Q2'23 YoY Change Cash Flow from Operations $14.0 $12.0 17% 95% Unlevered Free Cash
Slide 7: Guidance
Guidance 7
Slide 8: Q3 and FY 2024 Guidance
Q3 and FY 2024 Guidance (as of August 5, 2024) We believe our revised guidance fully $ MILLIONS, except percentages and per share info Third Quarter 2024 Full Year 2024 contemplates year-to-date performance, Revenue $61.0 - 62.5 $247.0 - 251.0 current conditions, and potential short- term disrupti
Slide 9: Appendix
Appendix Non-GAAP reconciliations & basis of presentation 9
Slide 10: Net dollar retention
Net dollar retention All customers 108% NDR 102% NDR 91% NDR Customers 111% NDR 103% NDR 92% NDR >$17,500 ARR 96% of ARR 97% of ARR 98% of ARR 120% NDR 110% NDR 97% NDR 57% of ARR 61% of ARR 66% of ARR Enterprise Customers >$100,000 ARR 2021 2022 2023* *2023 reflects refresh of our customer hierarch
Slide 11: Q2 Performance and Guidance
Q2 Performance and Guidance Q2 results on revenue, adjusted operating income and $ MILLIONS, except adjusted EBITDA were above the high-end of the guided percentages and per share info Second Quarter 2024 Guidance Range ranges Revenue $63.7 $62.0 - 63.5 % growth YoY 4.6% 2 - 4% Q2 revenue perfor
Slide 12: Key Shareholder Statistics
Key Shareholder Statistics Public Shares Minority Interest Key shareholder statistics as of 6/30/2024 (Class A) (Class B) Combined Comments 63,935,33 13,843,15 77,778,491 Sponsor ownership (as-if converted) 170K Class B shares were exchanged into Class 271,91 25,239,433 25,511,352 A public shares
Slide 13: 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 14: 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 14
Slide 15: Reconciliation from GAAP to non-GAAP operating expenses
Reconciliation from GAAP to non-GAAP operating expenses THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, $ THOUSANDS 2024 2023 $ % 2024 2023 $ % GAAP Sales & Marketing $21,545 $24,702 ($3,157) (13%) $43,305 $48,125 ($4,820) (10%) Equity-based compensation (1,686) (2,920) $1,234 (42%) (3,957) (5
Slide 16: Reconciliation from net loss to adjusted operating income and adjusted net income
Reconciliation from net loss to adjusted operating income and adjusted net income 16
Slide 17: Reconciliation from net loss to adjusted EBITDA
Reconciliation from net loss to adjusted EBITDA 17
Slide 18: Reconciliation from cash flow from operations to unlevered free cash flow
Reconciliation from cash flow from operations to unlevered free cash flow THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, % of Revenue $ THOUSANDS 2024 2023 $ % 2024 2023 $ % 2024 2023 Cash Flow from Operations $14,040 $12,037 $2,003 17% $30,629 $26,994 $3,635 13% 24% 22% Cash interest expense
Slide 19: 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 20: Reconciliations of transaction, integration and restructuring expense and other non-core items
Reconciliations of transaction, integration and restructuring expense and other non-core items 20
Slide 21: 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 — Q2 2024 Earnings Presentation on 6ix