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Definitive Healthcare Corp (DH)
NASDAQ:DH
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Definitive Healthcare Corp
(NASDAQ:DH)
Rating:50Neutral
Price Target:
$4.00
▲(5.26% Upside)
Positive Factors
Client Retention
Management noted seeing early signs of improvement in renewal rates, reporting the highest retention rate since the second quarter of last year.
Earnings Performance
Definitive Healthcare reported positive second quarter 2025 earnings, with revenue and adjusted EBITDA both tracking above the high end of guidance and Street expectations.
Strategic Initiatives
Management appears to be executing on its strategic initiatives to turn around the business, and the model is tracking toward a durable return to organic growth.
Negative Factors
Client Base Challenges
The number of total customers and enterprise customers has decreased, indicating potential challenges in maintaining client relationships.
Market Competition
Heightened competition from larger companies with robust data sets, like Veeva and IQVIA, may be contributing to DH's churn and revenue declines.
Revenue Decline
Total revenue declined by 7% year-over-year and Adjusted EBITDA margin came in at 25%, down about 600 bps from a year ago, but Definitive remains highly profitable even while revenue is under pressure.
Definitive Healthcare Corp (DH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$512.22M
Dividend YieldN/A
Average Volume (3M)450.48K
Price to Earnings (P/E)―
Beta (1Y)1.65
Revenue Growth-5.24%
EPS Growth23.59%
CountryUS
Employees782
SectorHealthcare
Sector Strength43
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding104,086,210
10 Day Avg. Volume586,096
30 Day Avg. Volume450,475
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue2.11
Enterprise Value/Gross Profit2.77
Enterprise Value/Ebitda-1.30
Forecast
1Y Price Target
$4.55Price Target Upside19.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Definitive Healthcare Corp Business Overview & Revenue Model
Company DescriptionDefinitive Healthcare Corp (DH) is a leading provider of healthcare commercial intelligence. The company operates within the healthcare information technology sector, offering a comprehensive suite of data analytics and insights solutions. Its core products and services include data-driven platforms that help healthcare organizations, life sciences companies, and other related entities to optimize their strategies, enhance market research, and improve their operational efficiencies.
How the Company Makes MoneyDefinitive Healthcare Corp generates revenue primarily through subscription-based models. Clients subscribe to the company's data analytics platforms, gaining access to extensive healthcare datasets and analytics tools. The company's key revenue streams include subscriptions from healthcare providers, life sciences companies, and other organizations within the healthcare ecosystem that require actionable insights to inform their strategic decisions. Additionally, Definitive Healthcare may engage in partnerships with other businesses to enhance its data offerings and expand its market reach, thus contributing to its revenue growth.
Definitive Healthcare Corp Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -4.28%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including exceeding financial guidance, improved renewal rates, and progress across strategic pillars. However, these were tempered by revenue decline and challenges in the life sciences segment due to macroeconomic pressures. Overall, the highlights and lowlights appear balanced.Q2-2025 Updates
Positive Updates
Exceeding Financial Guidance
Definitive Healthcare's financial results for Q2 2025 were above the high end of guidance ranges for both revenue and adjusted EBITDA. Total revenue was $60.8 million, and adjusted EBITDA was $18.7 million, representing a 31% margin.
Improvement in Renewal Rates
There were early signs of improvement in renewal rates, with the highest retention rate since Q2 of the previous year. This improvement is attributed to changes in investments in customer success.
Progress in Strategic Pillars
The company made progress across its four strategic pillars: differentiated data, seamless integration, customer success, and innovation. Notable achievements include new customer wins and partnerships, improved data integration, and increased engagement in digital activation.
Expansion of Professional Services Revenue
Professional services revenue grew by 46% year-over-year, helping to offset pressures on subscription revenue.
Successful Digital Engagement Initiatives
The company contracted with 15 agencies and activated campaigns with 6, enhancing targeting and performance for media campaigns through healthcare audience segments.
Negative Updates
Decline in Revenue
Total revenue was $60.8 million, down 5% year-over-year, primarily due to pressures on renewals and macroeconomic challenges.
Challenges in Life Sciences Segment
The life sciences segment experienced downsell dynamics and upsell pressures, impacting overall revenue growth.
Macroeconomic Pressures
The company continues to operate in a challenging macroeconomic environment, affecting buying decisions and extending sales cycles.
Company Guidance
During the Q2 2025 earnings call, Definitive Healthcare reported financial results that exceeded the high end of their guidance for both revenue and adjusted EBITDA. Total revenue was $60.8 million, reflecting a 5% year-over-year decline, while adjusted EBITDA reached $18.7 million, representing a 31% margin. The company's efforts to improve customer retention showed promising signs with a modest increase in renewal rates, the highest since the previous year's second quarter. Despite the challenging macroeconomic environment, the company saw healthy new customer activity and improved retention, prompting an upward revision of the revenue guidance midpoint and an increase in the adjusted EBITDA target for the year. The company also reported $57 million in unlevered free cash flow over the trailing 12 months. Looking ahead, Definitive Healthcare expects third-quarter revenue to be between $59 million and $60 million, with a continued focus on enhancing customer success, data integration, and innovation.Definitive Healthcare Corp Financial Statement Overview
Summary
Definitive Healthcare Corp shows revenue growth but struggles with profitability and operational efficiency. The balance sheet is stable but under pressure due to declining equity and assets. Cash flow generation is a strength, supporting operations despite profitability challenges.Income Statement
Definitive Healthcare Corp shows consistent revenue growth from 2020 to TTM 2025, but faces significant challenges in profitability. The company has experienced deteriorating EBIT and EBITDA margins, with substantial negative net income indicating ongoing operational inefficiencies. Despite gross profit margins being relatively stable, the company struggles with high operational costs negatively affecting net profit margins.40
Negative
Balance Sheet
The company's balance sheet reveals a mixed outlook. The debt-to-equity ratio is relatively moderate, suggesting manageable leverage. However, there is a declining trend in stockholders’ equity and total assets over recent years. The equity ratio has been decreasing, indicating a potential risk in financial stability if the trend continues. Overall, the company's financial structure is stable but facing downward pressure.55
Neutral
Cash Flow
Cash flow analysis is relatively positive with consistent free cash flow generation. The operating cash flow to net income ratio is strong, indicating effective cash generation despite net losses. However, the free cash flow growth rate has been volatile, reflecting potential challenges in sustaining cash flow improvements. Despite this, the company maintains a positive free cash flow to net income ratio.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 244.93M | 252.20M | 251.41M | 222.65M | 166.15M | 118.32M |
| Gross Profit | 187.01M | 197.47M | 164.93M | 180.03M | 125.47M | 87.85M |
| EBITDA | -399.92M | -567.24M | -241.23M | 23.44M | 23.05M | 44.91M |
| Net Income | -304.75M | -413.12M | -202.39M | -7.22M | -51.91M | -51.16M |
Balance Sheet | ||||||
| Total Assets | 770.14M | 1.09B | 1.83B | 2.12B | 2.12B | 1.75B |
| Cash, Cash Equivalents and Short-Term Investments | 184.20M | 290.16M | 308.07M | 331.87M | 387.50M | 24.77M |
| Total Debt | 8.92M | 253.11M | 267.93M | 275.85M | 270.68M | 461.88M |
| Total Liabilities | 358.91M | 482.19M | 626.73M | 633.77M | 612.73M | 549.80M |
| Stockholders Equity | 411.23M | 444.38M | 861.36M | 952.14M | 873.21M | 1.20B |
Cash Flow | ||||||
| Free Cash Flow | 51.27M | 45.85M | 38.21M | 27.25M | 18.48M | 21.82M |
| Operating Cash Flow | 62.94M | 58.20M | 41.19M | 35.58M | 25.21M | 23.22M |
| Investing Cash Flow | 56.07M | -26.41M | -31.78M | -248.90M | -46.73M | -23.86M |
| Financing Cash Flow | -159.84M | -56.75M | -25.58M | -26.70M | 384.37M | 16.66M |
Definitive Healthcare Corp Technical Analysis
Negative
3.80
Price Trends
3.90
Negative
3.40
Positive
3.83
Negative
Market Momentum
-0.04
Positive
47.61
Neutral
26.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DH, the sentiment is Negative. The current price of 3.8 is below the 20-day moving average (MA) of 3.93, below the 50-day MA of 3.90, and below the 200-day MA of 3.83, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 26.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DH.
Definitive Healthcare Corp Risk Analysis
Definitive Healthcare Corp disclosed 74 risk factors in its most recent earnings report. Definitive Healthcare Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Definitive Healthcare Corp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.66B | ― | -15.97% | ― | 16.29% | 66.01% | |
69 Neutral | $786.08M | 39.86 | 5.81% | 0.44% | 3.50% | 13.99% | |
68 Neutral | $1.98B | 42.07 | 6.05% | 3.42% | -17.69% | -10.24% | |
60 Neutral | $1.22B | 38.36 | 5.27% | ― | 3.20% | ― | |
51 Neutral | $1.03B | ― | -13.38% | ― | -6.71% | -71.40% | |
51 Neutral | $7.44B | -0.22 | -45.45% | 2.27% | 23.06% | -2.29% | |
50 Neutral | $512.22M | ― | -64.27% | ― | -5.24% | 23.59% |
* Healthcare Sector Average
Performance Comparison
DH
Definitive Healthcare Corp
3.80
-0.22
-5.47%
HSTM
HealthStream
25.94
-1.85
-6.66%
PINC
Premier
24.63
5.30
27.42%
EVH
Evolent Health
8.82
-18.56
-67.79%
PHR
Phreesia
28.01
3.76
15.51%
GDRX
GoodRx Holdings
3.54
-3.63
-50.63%
Definitive Healthcare Corp Corporate Events
Executive/Board ChangesStock BuybackFinancial Disclosures
Definitive Healthcare Announces CFO Departure and Stock Buyback
Neutral
Nov 7, 2024
Definitive Healthcare has announced key developments including the transition of its CFO, Richard Booth, who will depart in June 2025, and a $100 million stock repurchase program set to commence following a previous $20 million program. The company reported a third-quarter revenue of $62.7 million, exceeding its guidance, despite a net loss due to goodwill impairment. With an eye on future growth, the company is actively assessing market opportunities and strengthening its customer base, evident from recent strategic partnerships and customer acquisitions.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.