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 March 31, 2024.
First Quarter 2024 Financial
Highlights:
-
Revenue was $63.5 million, an increase of 7% from
$59.2 million in Q1 2023.
-
Net Loss was $(12.7) million, or (20%) of revenue,
compared to $(16.0) million, or (27%) of revenue in Q1
2023.
-
Adjusted Net Income was $13.0 million, compared to
$9.1 million in Q1 2023.
-
Adjusted EBITDA was $20.0 million, or 32% of
revenue, compared to $15.7 million, or 26% of revenue in Q1
2023.
-
Cash Flow from Operations was $16.6 million in the
quarter.
-
Unlevered Free Cash Flow was $28.3 million in the
quarter.
“While our first quarter performance was mixed,
our adjusted EBITDA margin was strong as we continued to focus on
the operational efficiencies,” said Jason Krantz, Founder,
Executive Chairman, and Interim CEO of Definitive Healthcare. “At
the same time, we continued to make investments in innovative
products that will help us drive long term growth and profitability
for our shareholders.”
Recent Business and Operating
Highlights:
Customer Wins
In the first quarter, Definitive Healthcare grew
its enterprise customer base by 30, or 6% year-over-year, ending
the quarter with 559 enterprise customers, defined as those
customers with more than $100,000 in annual recurring revenue.
Customer wins included:
- A provider of chronic care management products and services
selected Definitive Healthcare as the central source of truth for
all healthcare provider data for their marketing and sales teams.
They’re integrating our affiliation hierarchies into their CRM
system to gain a clearer understanding of their total addressable
market, and plan to leverage our custom reports to create prospect
target “heat maps” for their sales teams.
- A leading manufacturer of advanced heart pump technology—a
client of both our View and Carevoyance platforms—recently expanded
its use of Carevoyance. They use Carevoyance for their therapeutic
awareness and physician programs.
- One of the largest health systems in the Southeast US recently
expanded its relationship with us to include our Populi Network and
Market Intelligence solutions to analyze patient outmigration
within their existing practices, evaluate potential practice
acquisitions, and understand the competitive landscape in new
markets.
Stock Repurchase
Program
The Company’s Board of Directors approved the
repurchase of up to an aggregate of $20.0 million of its Class A
Common Stock. The repurchases will be made from time to time on the
open market at prevailing market prices or in negotiated
transactions off the market. The repurchase program is expected to
continue through the end of 2024 unless extended or shortened by
the Board of Directors.
Business Outlook
Based on information as of May 7, 2024, the
Company is issuing the following financial
guidance.
Second Quarter
2024:
-
Revenue is expected to be in the range of $62.0 –
$63.5 million, a 2-4% increase year over year.
-
Adjusted Operating Income is expected to be in the
range of $17.0 – $18.5 million.
-
Adjusted EBITDA is expected to be in the range of
$18.5 – $20.0 million, and 30-32% adjusted EBITDA
margin.
- Adjusted Net
Income is expected to be $13.5 – $14.5 million.
- Adjusted Net
Income Per Diluted Share is expected to be $0.08 –
$0.09 per share on approximately 157.2 million weighted-average
shares outstanding.
Full Year 2024:
-
Revenue is expected to be in the range of $255 –
$261 million, a 1-4% increase from the prior year.
-
Adjusted Operating Income is expected to be in the
range of $75.0 – $78.0 million.
-
Adjusted EBITDA is expected to be in the range of
$81.5 – $84.5 million, for a full-year adjusted EBITDA margin of
32-33%.
- Adjusted Net
Income is expected to be $56.5 – $59.5 million.
- Adjusted Net
Income Per Diluted Share is expected to be $0.36 –
$0.38 per share on approximately 157.5 million weighted-average
shares outstanding.
We do not provide a 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 equity-based compensation expense, taxes and amounts
under the tax receivable agreement, deferred tax assets and
deferred tax liabilities, and transaction, integration, and
restructuring expenses. We expect the variability of these excluded
items may have a significant, and potentially unpredictable, impact
on our future GAAP financial results.
Conference Call Information
Definitive Healthcare will host a conference
call today May 7, 2024, at 5:00 p.m. (Eastern Time) to discuss the
Company's full financial results and current business outlook.
Participants may access the call at 1-877-358-7298 or
1-848-488-9244. Shortly after the conclusion of the call, a replay
of this conference call will be available through June 6, 2024 at
1-800-645-7964 or 1-757-849-6722. The replay passcode is 1765#. A
live audio webcast of the event will be available on 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. Learn more at definitivehc.com.
Forward-Looking
Statements
This press release includes 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,” “will,” “should,” “may,”
“anticipates,” “intends,” “plans,” “seeks,” “believes,”
“estimates,” “expects,” “continues,” “assumes,” “would,”
“potentially” 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 benefits of our
healthcare commercial intelligence solutions, our competitive
position, customer behaviors and use of our solutions, 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: our inability to realize expected business
or financial benefits from acquisitions and the risk that our
acquisitions or investments could prove difficult to integrate,
disrupt our business, dilute stockholder value and adversely affect
our business, financial condition and results of operations; our
inability to achieve the anticipated cost savings, operating
efficiencies or other benefits of our internal restructuring
activities; global geopolitical tension and difficult macroeconomic
conditions; actual or potential changes in international, national,
regional and local economic, business and financial conditions,
including recessions, inflation, high interest rates, volatility in
the capital markets and related market uncertainty; the impact of
challenging macroeconomic conditions on our new and existing
customers; our inability to acquire new customers and generate
additional revenue from existing customers; our inability to
generate sales of subscriptions to our platform or 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 GAAP or non-GAAP profitability in the future as we increase
investments in our business; the loss of our access to our data
providers; the failure to respond to advances in healthcare
commercial intelligence; an inability to attract new customers and
expand subscriptions of current customers; our ability to
successfully transition executive leadership; the risk of
cyber-attacks and security vulnerabilities; litigation,
investigations or other legal, governmental or regulatory actions;
the possibility that our security measures are breached or
unauthorized access to data is otherwise obtained; the risk that
additional material weaknesses or significant deficiencies that
will occur in the future; and the risks of being required to
collect sales or other related taxes for subscriptions to our
platform in jurisdictions where we have not historically done
so.
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 ended March 31, 2024 that will
be filed following this earnings release, as well as our Current
Reports on Form 8-K and other 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.
All information in this press release speaks only as of the date
on which it is made. We undertake no obligation to publicly update
this information, whether as a result of new information, future
developments or otherwise, except as may be required by
law.
Website
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. Our 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. 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 required by or
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 cash provided by (used in) operating activities,
loss from operations, net (loss) income, net (loss) income margin,
gross profit, gross margin, or any other measure derived in
accordance with GAAP.
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, earnouts, and other non-core items.
Unlevered Free Cash Flow does not represent residual cash flow
available for discretionary expenditures since, among other things,
we have mandatory debt service requirements.
We define EBITDA as earnings before debt-related
costs, including interest expense, 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, goodwill
impairments, transaction, integration, and restructuring expenses
and other non-core 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-core 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 gross profit
excluding acquisition-related depreciation and amortization and
equity-based compensation costs and Adjusted Gross Margin is
defined as Adjusted Gross Profit as a percentage of revenue.
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 portion
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 loss from
operations plus acquisition related amortization, equity-based
compensation, goodwill impairments, transaction, integration, and
restructuring expenses and other non-core expenses.
We define Adjusted Net Income as Adjusted
Operating Income less interest expense, net, recurring income tax
benefit, foreign currency (loss) gain, and tax effects of
adjustments. We define Adjusted Net Income Per Diluted Share as
Adjusted Net Income divided by diluted outstanding
shares.
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.
Investor Contact: Brian Denyeau ICR
for Definitive
Healthcare brian.denyeau@icrinc.com646-277-1251
Media Contact: Bethany
Swackhamerbswackhamer@definitivehc.com
Definitive Healthcare Corp. |
Condensed Consolidated Balance Sheets |
(in thousands, except number of shares and par value;
unaudited) |
|
|
|
|
|
|
|
March 31, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
105,994 |
|
|
$ |
130,976 |
|
Short-term investments |
|
|
189,174 |
|
|
|
177,092 |
|
Accounts receivable, net |
|
|
56,655 |
|
|
|
59,249 |
|
Prepaid expenses and other assets |
|
|
13,296 |
|
|
|
13,120 |
|
Deferred contract costs |
|
|
13,598 |
|
|
|
13,490 |
|
Total current assets |
|
|
378,717 |
|
|
|
393,927 |
|
Property and equipment, net |
|
|
4,100 |
|
|
|
4,471 |
|
Operating lease right-of-use assets, net |
|
|
9,022 |
|
|
|
9,594 |
|
Other assets |
|
|
1,978 |
|
|
|
2,388 |
|
Deferred contract costs |
|
|
16,219 |
|
|
|
17,320 |
|
Intangible assets, net |
|
|
317,972 |
|
|
|
323,121 |
|
Goodwill |
|
|
1,082,137 |
|
|
|
1,075,080 |
|
Total assets |
|
$ |
1,810,145 |
|
|
$ |
1,825,901 |
|
Liabilities and Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
|
4,895 |
|
|
|
5,787 |
|
Accrued expenses and other liabilities |
|
|
35,950 |
|
|
|
51,529 |
|
Deferred revenue |
|
|
108,078 |
|
|
|
97,377 |
|
Term loan |
|
|
13,750 |
|
|
|
13,750 |
|
Operating lease liabilities |
|
|
2,307 |
|
|
|
2,239 |
|
Total current liabilities |
|
|
164,980 |
|
|
|
170,682 |
|
Long term liabilities: |
|
|
|
|
Deferred revenue |
|
|
9 |
|
|
|
9 |
|
Term loan |
|
|
239,267 |
|
|
|
242,567 |
|
Operating lease liabilities |
|
|
8,690 |
|
|
|
9,372 |
|
Tax receivable agreements liability |
|
|
125,150 |
|
|
|
127,000 |
|
Deferred tax liabilities |
|
|
66,615 |
|
|
|
67,163 |
|
Other liabilities |
|
|
10,403 |
|
|
|
9,934 |
|
Total liabilities |
|
|
615,114 |
|
|
|
626,727 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Class A Common Stock, par value $0.001, 600,000,000 shares
authorized, 117,790,025 and 116,562,252 shares issued and
outstanding at March 31, 2024 and December 31, 2023,
respectively |
|
|
118 |
|
|
|
117 |
|
Class B Common Stock, par value $0.00001, 65,000,000 shares
authorized, 39,664,004 and 39,238,832 shares issued and
outstanding, respectively, at March 31, 2024, and 39,762,700 and
39,168,047 shares issued and outstanding, respectively, at December
31, 2023 |
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
1,095,482 |
|
|
|
1,086,581 |
|
Accumulated other comprehensive income |
|
|
1,658 |
|
|
|
2,109 |
|
Accumulated deficit |
|
|
(236,968 |
) |
|
|
(227,450 |
) |
Noncontrolling interests |
|
|
334,741 |
|
|
|
337,817 |
|
Total equity |
|
|
1,195,031 |
|
|
|
1,199,174 |
|
Total liabilities and equity |
|
$ |
1,810,145 |
|
|
$ |
1,825,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
Definitive
Healthcare Corp. |
Condensed Consolidated Statements of
Operations |
(in thousands, except share amounts and per share data;
unaudited) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
63,480 |
|
|
$ |
59,201 |
|
Cost of revenue: |
|
|
|
|
Cost of revenue exclusive of amortization(1) |
|
|
9,736 |
|
|
|
8,552 |
|
Amortization |
|
|
3,362 |
|
|
|
3,354 |
|
Gross profit |
|
|
50,382 |
|
|
|
47,295 |
|
Operating expenses: |
|
|
|
|
Sales and marketing(1) |
|
|
21,760 |
|
|
|
23,423 |
|
Product development(1) |
|
|
10,132 |
|
|
|
9,884 |
|
General and administrative(1) |
|
|
16,883 |
|
|
|
14,079 |
|
Depreciation and amortization |
|
|
9,322 |
|
|
|
9,590 |
|
Transaction, integration, and restructuring expenses |
|
|
8,534 |
|
|
|
2,590 |
|
Total operating expenses |
|
|
66,631 |
|
|
|
59,566 |
|
Loss from operations |
|
|
(16,249 |
) |
|
|
(12,271 |
) |
Other income (expense), net |
|
|
|
|
Interest income (expense), net |
|
|
111 |
|
|
|
(780 |
) |
Other income (expense), net |
|
|
2,640 |
|
|
|
(3,631 |
) |
Total other income (expense), net |
|
|
2,751 |
|
|
|
(4,411 |
) |
Net loss before income taxes |
|
|
(13,498 |
) |
|
|
(16,682 |
) |
Benefit from income taxes |
|
|
780 |
|
|
|
710 |
|
Net loss |
|
|
(12,718 |
) |
|
|
(15,972 |
) |
Less: Net loss attributable to noncontrolling interests |
|
|
(3,200 |
) |
|
|
(3,909 |
) |
Net loss attributable to Definitive Healthcare Corp. |
|
$ |
(9,518 |
) |
|
$ |
(12,063 |
) |
Net loss per share of Class A Common Stock: |
|
|
|
|
Basic and diluted |
|
$ |
(0.08 |
) |
|
$ |
(0.11 |
) |
Weighted average Class A Common Stock outstanding: |
|
|
|
|
Basic and diluted |
|
|
117,433,520 |
|
|
|
108,234,043 |
|
|
|
|
|
|
|
|
|
|
|
(1)Amounts include equity-based compensation expense as
follows: |
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
Cost of revenue |
|
$ |
271 |
|
|
$ |
258 |
|
Sales and marketing |
|
|
2,271 |
|
|
|
2,649 |
|
Product development |
|
|
2,761 |
|
|
|
3,011 |
|
General and administrative |
|
|
10,279 |
|
|
|
5,210 |
|
Total equity-based compensation expense |
|
$ |
15,582 |
|
|
$ |
11,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
Definitive Healthcare Corp. |
Condensed Consolidated Statements of Cash
Flows |
(in thousands; unaudited) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows provided by (used in) operating
activities: |
|
|
|
|
Net loss |
|
$ |
(12,718 |
) |
|
$ |
(15,972 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
554 |
|
|
|
513 |
|
Amortization of intangible assets |
|
|
12,130 |
|
|
|
12,431 |
|
Amortization of deferred contract costs |
|
|
3,692 |
|
|
|
2,860 |
|
Equity-based compensation |
|
|
15,582 |
|
|
|
11,128 |
|
Amortization of debt issuance costs |
|
|
176 |
|
|
|
176 |
|
Provision for doubtful accounts receivable |
|
|
211 |
|
|
|
22 |
|
Non-cash impairment charges related to office leases |
|
|
— |
|
|
|
157 |
|
Tax receivable agreement remeasurement |
|
|
(2,267 |
) |
|
|
3,552 |
|
Changes in fair value of contingent consideration |
|
|
270 |
|
|
|
— |
|
Deferred income taxes |
|
|
(847 |
) |
|
|
(773 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
|
2,999 |
|
|
|
6,966 |
|
Prepaid expenses and other assets |
|
|
(1,399 |
) |
|
|
(3,796 |
) |
Deferred contract costs |
|
|
(2,699 |
) |
|
|
(4,021 |
) |
Contingent consideration |
|
|
(602 |
) |
|
|
— |
|
Accounts payable, accrued expenses, and other liabilities |
|
|
(8,231 |
) |
|
|
(3,855 |
) |
Deferred revenue |
|
|
9,738 |
|
|
|
5,569 |
|
Net cash provided by operating activities |
|
|
16,589 |
|
|
|
14,957 |
|
Cash flows (used in) provided by investing
activities: |
|
|
|
|
Purchases of property, equipment, and other assets |
|
|
(266 |
) |
|
|
(1,338 |
) |
Purchases of short-term investments |
|
|
(83,826 |
) |
|
|
(90,252 |
) |
Maturities of short-term investments |
|
|
73,588 |
|
|
|
58,120 |
|
Cash paid for acquisitions, net of cash acquired |
|
|
(13,530 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(24,034 |
) |
|
|
(33,470 |
) |
Cash flows used in financing activities: |
|
|
|
|
Repayments of term loans |
|
|
(3,438 |
) |
|
|
(1,719 |
) |
Taxes paid related to net share settlement of equity awards |
|
|
(5,806 |
) |
|
|
(1,530 |
) |
Payment of contingent consideration |
|
|
(1,000 |
) |
|
|
— |
|
Payments under tax receivable agreement |
|
|
(6,950 |
) |
|
|
(246 |
) |
Payments of equity offering issuance costs |
|
|
— |
|
|
|
(30 |
) |
Net cash used in financing activities |
|
|
(17,194 |
) |
|
|
(3,525 |
) |
Net decrease in cash and cash equivalents |
|
|
(24,639 |
) |
|
|
(22,038 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(343 |
) |
|
|
65 |
|
Cash and cash equivalents, beginning of period |
|
|
130,976 |
|
|
|
146,934 |
|
Cash and cash equivalents, end of period |
|
$ |
105,994 |
|
|
$ |
124,961 |
|
Supplemental cash flow disclosures: |
|
|
|
|
Cash paid during the period for: |
|
|
|
|
Interest |
|
$ |
3,642 |
|
|
$ |
3,475 |
|
Income taxes |
|
$ |
— |
|
|
$ |
79 |
|
Acquisitions: |
|
|
|
|
Net assets acquired, net of cash acquired |
|
$ |
13,675 |
|
|
$ |
— |
|
Working capital adjustment receivable |
|
|
(145 |
) |
|
|
— |
|
Net cash paid for acquisitions |
|
$ |
13,530 |
|
|
$ |
— |
|
Supplemental disclosure of non-cash investing
activities: |
|
|
|
|
Capital expenditures included in accrued expenses and other
liabilities |
|
$ |
— |
|
|
$ |
333 |
|
|
|
|
|
Definitive Healthcare Corp. |
Reconciliations of Non-GAAP Financial Measures to Closest
GAAP Equivalent |
|
|
|
|
Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash
Flow |
(in thousands; unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Net cash provided from operating activities |
$ |
16,589 |
|
|
$ |
14,957 |
|
Purchases of property, equipment, and other assets |
|
(266 |
) |
|
|
(1,338 |
) |
Interest paid in cash |
|
3,642 |
|
|
|
3,475 |
|
Transaction, integration, and restructuring expenses paid in
cash (a) |
|
8,264 |
|
|
|
2,433 |
|
Earnout payment (b) |
|
602 |
|
|
|
— |
|
Other non-core items (c) |
|
(528 |
) |
|
|
1,276 |
|
Unlevered Free Cash Flow |
$ |
28,303 |
|
|
$ |
20,803 |
|
(a) |
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. |
(b) |
Earnout payment represents final settlement of contingent
consideration included in cash flow from operations. |
(c) |
Non-core items represent expenses driven by events that are
typically by nature one-time, non-operational, and unrelated to our
core operations. |
|
|
|
|
Reconciliation of GAAP Net Loss to Adjusted Net Income and |
GAAP Operating Loss to Adjusted Operating Income |
(in thousands, except share and per share amounts; unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(12,718 |
) |
|
$ |
(15,972 |
) |
Add: Income tax benefit |
|
(780 |
) |
|
|
(710 |
) |
Add: Interest (income) expense, net |
|
(111 |
) |
|
|
780 |
|
Add: Other (income) expense, net |
|
(2,640 |
) |
|
|
3,631 |
|
Loss from operations |
|
(16,249 |
) |
|
|
(12,271 |
) |
Add: Amortization of intangible assets acquired through business
combinations |
|
11,211 |
|
|
|
11,367 |
|
Add: Equity-based compensation |
|
15,582 |
|
|
|
11,128 |
|
Add: Transaction, integration, and restructuring expenses |
|
8,534 |
|
|
|
2,590 |
|
Add: Other non-core items |
|
(528 |
) |
|
|
1,276 |
|
Adjusted Operating Income |
|
18,550 |
|
|
|
14,090 |
|
Less: Interest income (expense), net |
|
111 |
|
|
|
(780 |
) |
Less: Recurring income tax benefit |
|
780 |
|
|
|
710 |
|
Less: Foreign currency gain (loss) |
|
373 |
|
|
|
(79 |
) |
Less: Tax impacts of adjustments to net loss |
|
(6,772 |
) |
|
|
(4,858 |
) |
Adjusted Net Income |
$ |
13,042 |
|
|
$ |
9,083 |
|
Shares for Adjusted Net Income Per Diluted Share(a) |
|
156,634,698 |
|
|
|
154,300,768 |
|
Adjusted Net Income Per Share |
$ |
0.08 |
|
|
$ |
0.06 |
|
(a) |
Diluted Adjusted Net Income Per Share is computed by giving effect
to all potential weighted average Class A common stock and any
securities that are convertible into Class A common stock,
including Definitive OpCo units and restricted stock units. The
dilutive effect of outstanding awards and convertible securities is
reflected in diluted earnings per share by application of the
treasury stock method assuming proceeds from unrecognized
compensation as required by GAAP. Fully diluted shares are
164,977,953 and 162,001,223 as of March 31, 2024 and 2023,
respectively. |
Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross
Profit and Margin |
(in thousands, except percentages; unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
(in thousands) |
|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
Reported gross profit and
margin |
|
$ |
50,382 |
|
79 |
% |
|
$ |
47,295 |
|
80 |
% |
Amortization of intangible assets acquired through business
combinations |
|
|
2,443 |
|
4 |
% |
|
|
2,290 |
|
4 |
% |
Equity compensation costs |
|
|
271 |
|
— |
|
|
|
258 |
|
— |
|
Adjusted gross profit and margin |
|
$ |
53,096 |
|
84 |
% |
|
$ |
49,843 |
|
84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Loss to Adjusted EBITDA |
(in thousands, except percentages; unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
Net loss and margin |
$ |
(12,718 |
) |
|
|
(20 |
)% |
|
$ |
(15,972 |
) |
|
(27 |
)% |
Interest (income) expense, net |
|
(111 |
) |
|
|
(0 |
)% |
|
|
780 |
|
|
1 |
% |
Benefit from income taxes |
|
(780 |
) |
|
|
(1 |
)% |
|
|
(710 |
) |
|
(1 |
)% |
Depreciation & amortization |
|
12,684 |
|
|
|
20 |
% |
|
|
12,944 |
|
|
22 |
% |
EBITDA and margin |
|
(925 |
) |
|
|
(1 |
)% |
|
|
(2,958 |
) |
|
(5 |
)% |
Other (income) expense, net(a) |
|
(2,640 |
) |
|
|
(4 |
)% |
|
|
3,631 |
|
|
6 |
% |
Equity-based compensation(b) |
|
15,582 |
|
|
|
25 |
% |
|
|
11,128 |
|
|
19 |
% |
Transaction, integration, and restructuring expenses(c) |
|
8,534 |
|
|
|
13 |
% |
|
|
2,590 |
|
|
4 |
% |
Other non-core items(d) |
|
(528 |
) |
|
|
(1 |
)% |
|
|
1,276 |
|
|
2 |
% |
Adjusted EBITDA and margin |
$ |
20,023 |
|
|
|
32 |
% |
|
$ |
15,667 |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
(a) |
Primarily represents foreign exchange and TRA liability
remeasurement gains and losses. |
(b) |
Equity-based compensation represents non-cash compensation expense
recognized in association with equity awards made to employees and
directors. |
(c) |
Transaction and integration expenses primarily represent legal,
accounting, and consulting expenses and fair value adjustments for
contingent consideration related to our acquisitions. Restructuring
expenses relate to the 2024 Restructuring Plan and those we
committed to during the first and third quarters of 2023. |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
|
|
Merger and acquisition due diligence and transaction costs |
$ |
609 |
|
|
$ |
292 |
|
|
|
|
|
Integration costs |
|
434 |
|
|
|
19 |
|
|
|
|
|
Fair value adjustment for contingent consideration |
|
270 |
|
|
|
— |
|
|
|
|
|
Restructuring charges for severance and other separation costs |
|
7,221 |
|
|
|
2,122 |
|
|
|
|
|
Office closure and relocation restructuring charges and
impairments |
|
— |
|
|
|
157 |
|
|
|
|
|
Total transaction, integration and restructuring expenses |
$ |
8,534 |
|
|
$ |
2,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
Other non-core items represent expenses driven by events that are
typically by nature one-time, non-operational, and/or unrelated to
our core operations. These expenses are comprised of non-core legal
and regulatory costs isolated to unique and extraordinary
litigation, legal and regulatory matters that are not considered
normal and recurring business activity, including sales tax accrual
charges inclusive of penalties and interest for sales taxes that we
may have been required to collect from customers in 2024 and in
certain previous years, and other non-recurring legal and
regulatory matters. Other non-core items also include non-recurring
consulting fees associated with our 2024 Restructuring Plan, as
well as professional fees related to financing, capital structure
changes, and other non-recurring costs. |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
(in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
|
|
Non-core legal and regulatory |
$ |
(865 |
) |
|
$ |
1,049 |
|
|
|
|
|
Consulting fees for non-recurring strategic restructuring |
|
330 |
|
|
|
— |
|
|
|
|
|
Other non-core expenses |
|
7 |
|
|
|
227 |
|
|
|
|
|
Total other non-core items |
$ |
(528 |
) |
|
$ |
1,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Definitive Healthcare (NASDAQ:DH)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Definitive Healthcare (NASDAQ:DH)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024