Definitive Healthcare Expresses Optimism After Year-End Report
Definitive Healthcare Reports Financial Results for Fourth Quarter and Full Fiscal Year
Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”), an industry leader in healthcare commercial intelligence, announced its financial results for the recent quarter and the entirety of the last fiscal year. Despite facing challenges in the commercial environment, the company is focused on maintaining momentum into the next period.
Fourth Quarter 2024 Key Financial Highlights
Fourth Quarter 2024 Financial Highlights:
- Revenue: $62.3 million, reflecting a 6% decrease from $65.9 million in the same quarter the previous year.
- Net Loss: The company recorded a net loss of $(84.7) million, largely attributable to goodwill impairment charges amounting to $97.1 million. This contrasts with a loss of $(13.4) million in Q4 2023.
- Adjusted Net Income: The adjusted net income for this quarter was $12.6 million, compared to $10.6 million a year prior, indicating positive growth in this area.
- Adjusted EBITDA: The adjusted EBITDA for Q4 was $17.5 million—28% of revenue—compared to $19.8 million or 30% of revenue in Q4 2023.
- Operational Cash Flow: $8.1 million was generated from operations during the quarter.
- Unlevered Free Cash Flow: The company reported $(1.6) million in unlevered free cash flow.
Full Year 2024 Financial Highlights
Full Year 2024 Financial Highlights:
- Revenue: The total revenue reached $252.2 million, a slight increase from $251.4 million in 2023.
- Net Loss: The year saw a net loss of $(591.4) million, which includes goodwill impairments totaling $688.9 million, compared to $(289.6) million, with a smaller impairment charge of $287.4 million in the previous year.
- Adjusted Net Income: A notable increase to $55.1 million from $46.7 million in 2023.
- Adjusted EBITDA: For the entire year, adjusted EBITDA stood at $79.1 million, or 31% of revenue, up from $74.5 million or 30% from the year prior.
- Cash Flow from Operations: Improved by 41% to $58.2 million from $41.2 million in 2023.
- Unlevered Free Cash Flow: This metric was $72.5 million, reflecting a 6% increase from $68.6 million the previous year.
Strategic Leadership Changes
In tandem with financial updates, Kevin Coop, CEO of Definitive Healthcare, expressed pride in the company's resilience, stating, "Revenue and adjusted EBITDA were above the high end of our guided ranges despite challenging commercial conditions." He emphasized the company's commitment to ongoing growth, particularly with new acquisitions and enhancing current customer relationships.
Additionally, the company announced an executive transition, with Casey Heller, the current Senior Vice President of Finance, appointed as the new Chief Financial Officer, effective June 2, 2025. The current CFO, Rick Booth, will assist in this transition, ensuring continuity and support.
Recent Customer Wins
Definitive Healthcare has succeeded in gaining new clients across various markets by leveraging its unique insights and data solutions. Some of the notable wins in the last quarter included:
- A behavioral health screening firm utilizing Definitive Healthcare’s data to enhance physician and practice relationships.
- A prominent supplier of medical gases capitalizing on Definitive's insights to streamline their penetration into new markets, particularly in surgical centers.
- A major pharmaceutical enterprise integrating Definitive’s data with internal metrics to refine their patient and physician outreach efforts for a new medication launch.
2025 Outlook and Financial Guidance
Looking forward to 2025, the company anticipates:
- First Quarter Revenue: Expected to range between $55.5 – $57.0 million.
- Adjusted Operating Income: Expected between $7.5 – $8.5 million.
- Adjusted EBITDA: Forecasted to be around $10.5 – $11.5 million, indicating a 19 – 20% adjusted EBITDA margin.
- Adjusted Net Income: Anticipated to be between $3.0 – $4.0 million, equating to an adjusted net income per share of approximately $0.02.
For the full fiscal year, revenue is projected to lie between $230.0 – $240.0 million, with an associated growth in adjusted operating income and net income.
Frequently Asked Questions
What are the main financial highlights from Definitive Healthcare's Q4 2024 report?
Revenue dropped slightly to $62.3 million, with a net loss of $(84.7) million due to goodwill impairments.
How did the full year 2024 revenue compare to 2023?
Full year revenue increased to $252.2 million, just surpassing the prior year's $251.4 million.
Are there any significant personnel changes in the company?
Yes, Casey Heller has been appointed as the new Chief Financial Officer to replace Rick Booth, effective June 2025.
Which new customers did Definitive Healthcare secure recently?
They acquired clients in various sectors including behavioral health and medical supply companies, enhancing data-driven relationships.
What is the financial outlook for Definitive Healthcare in 2025?
They expect robust growth with projected revenues between $230.0 – $240.0 million and adjusted operating income growth from previous years.
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