FRAMINGHAM, Mass., Nov. 03, 2022 (GLOBE NEWSWIRE) — Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an business chief in healthcare business intelligence, immediately introduced monetary outcomes for the quarter ended September 30, 2022.
Third Quarter 2022 Financial and Other Recent Highlights:
Financial Highlights:
- Revenue was $57.4 million, a rise of 33% from $43.1 million in Q3 2021.
- Net loss was ($6.4) million, or 11% of income, in comparison with ($21.0) million, or 49% of income in Q3 2021.
- Adjusted Net Income was $8.9 million, in comparison with $2.2 million in Q3 2021.
- Adjusted EBITDA was $16.4 million, or 29% of income, in comparison with $14.4 million, or 33% of income in Q3 2021.
- Cash circulation from operations was $10.7 million within the quarter or 19% of income. For the trailing twelve-month interval, money circulation from operations was $44.0 million, or 21% of income.
- Unlevered free money circulation was $15.5 million within the quarter, or 27% of income. For the trailing twelve-month interval, unlevered free money circulation was $67.4 million, or 32% of income.
“We once again delivered an attractive combination of strong top line growth and substantial profitability. Revenue exceeded the top end of our guidance range and adjusted EBITDA was at the top end of our range, a clear demonstration of our highly efficient business model,” stated Robert Musslewhite, CEO of Definitive Healthcare. “We continued to execute on our land and expand strategy with important wins at new and existing customers. We also launched several important products, including Passport Express, while making good progress on the continuing integration of Analytical Wizards.”
Recent Business and Operating Highlights:
Customer Wins
In the third quarter, Definitive Healthcare had a number of key buyer wins, together with:
- A multi-year, seven-figure Monocl win at an present Definitive Healthcare medical system buyer. This long-time buyer of our View merchandise wanted intelligence round key opinion leaders to higher inform their product improvement course of.
- A multi-year enterprise deal at a world specialty generic pharmaceutical firm for our Passport Analytics Suite to enhance their market segmentation and analyze their advertising spend to make sure it’s spent most effectively throughout their totally different generic manufacturers and channels.
- A major upsell deal so as to add medical claims and knowledge integration companies at one of many world’s largest producer of breast-feeding pumps and provides. This firm makes use of Definitive Healthcare to higher perceive TAM, enhance segmentation, and acquire visibility into Physicians and Durable Medical Equipment (DME) knowledge.
- A number one worldwide producer of business ice machines selected Definitive Healthcare to determine hospitals and ambulatory surgical procedure facilities who may use their machines.
Innovation
Definitive Healthcare additionally continued to launch new merchandise and improve its core platform within the quarter. Notable improvements embody:
- In August, the Company launched Passport Express, simply six months after closing the acquisition of Analytical Wizards. Passport Express integrates the excellent analytics constructed by Analytical Wizards with the proprietary knowledge from Definitive Healthcare. Passport Express delivers quick and quick access to off-the-shelf healthcare business intelligence enabling biopharma corporations to higher perceive remedy pathways, model conduct, and market share.
- In September, the Company shipped the brand new Monocl ExpertData product. This new product improves the productiveness of the medical science liaison and inside medical affairs groups by offering a seamless method to combine Definitive Healthcare’s proprietary skilled knowledge with purchasers’ personal inside techniques.
In addition, the Company continues to spend money on the core Definitive Healthcare platform. Some of the brand new options not too long ago added to the platform embody:
- A brand new “locum tenens” analytic to find out which physicians are working briefly at a given facility. Based on a proprietary algorithm, this new metric analyzes a physicians’ latest billing exercise and community affiliation to foretell locum tenens standing.
- New Skilled Nursing Facility profiles that present perception into staffing turnover totals. With knowledge on greater than 15,000 expert nursing services, customers can now determine which services have essentially the most turnover, evaluate it to state and nationwide averages, after which assess the standard of care at a given facility. The Definitive Healthcare platform now provides greater than 25 totally different high quality metrics for expert nursing services.
Business Outlook
Based on data as of November 3, 2022, the Company is issuing the next monetary steerage.
Fourth Quarter 2022:
- Revenue is anticipated to be within the vary of $58-59 million, a median 26% enhance yr over yr.
- Adjusted Operating Income is anticipated to be within the vary of $15 – 16 million.
- Adjusted EBITDA is anticipated to be within the vary of $16-17 million.
- Adjusted Net Income is anticipated to be $6-7 million.
- Adjusted Net Income Per Diluted Share is anticipated to be $0.03-0.04 on roughly 156.5 million weighted-average shares excellent.
Full Year 2022:
- Revenue is anticipated to be within the vary of $220 – $221 million, a rise of 33% from prior yr on the midpoint.
- Adjusted Operating Income is anticipated to be within the vary of $59 – 60 million.
- Adjusted EBITDA is anticipated to be within the vary of $63-64 million.
- Adjusted Net Income is anticipated to be $30 – 31 million.
- Adjusted Net Income Per Diluted Share is anticipated to be $0.19– $0.20 on roughly 155.3 million weighted-average shares excellent.
Conference Call Information
Definitive Healthcare will host a convention name immediately, November 3, 2022, at 5:00 p.m. (Eastern Time) to debate the Company’s monetary outcomes and present business outlook. To entry the decision, dial (844) 826-3033 (home) or (412) 317-5185 (worldwide). The convention ID quantity is 10170962. Shortly after the conclusion of the decision, a replay of this convention name shall be out there by means of November 17, 2022 at (844) 512-2921 (home) or (412) 317-6671 (worldwide). The replay passcode is 10170962. A stay audio webcast of the occasion shall be out there on the Definitive Healthcare’s Investor Relations web site at https://ir.definitivehc.com/.
About Definitive Healthcare
At Definitive Healthcare, our ardour is to remodel knowledge, analytics and experience into healthcare business intelligence. We assist purchasers uncover the suitable markets, alternatives and folks, to allow them to form tomorrow’s healthcare business. Our SaaS platform creates new paths to business success within the healthcare market, so corporations can determine the place to go subsequent. Learn extra at definitivehc.com.
Forward-Looking Statements
This press launch could embody forward-looking statements that mirror our present views with respect to future occasions and monetary efficiency. Such statements are offered beneath the “safe harbor” safety of the Private Securities Litigation Reform Act of 1995. Forward-looking statements embody all statements that don’t relate solely to historic or present info, and may usually be recognized by phrases or phrases written sooner or later tense and/or preceded by phrases corresponding to “likely,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” or related phrases or variations thereof, or the unfavorable thereof, references to future durations, or by the inclusion of forecasts or projections, however these phrases are usually not the unique technique of figuring out such statements. Examples of forward-looking statements embody, however are usually not restricted to, statements we make relating to our outlook, monetary steerage, the market, business and macroeconomic setting, our business, development methods, product improvement efforts and future bills, buyer development and statements reflecting our expectations about our capacity to execute on our strategic plans, obtain future development and profitability and obtain our monetary targets.
Forward-looking statements on this press launch are primarily based on our present expectations and assumptions relating to our business, the economy and different future circumstances. Because forward-looking statements relate to the long run, by their nature, they’re topic to inherent uncertainties, dangers and adjustments in circumstances which are tough to foretell. As a outcome, our precise outcomes could differ materially from these contemplated by the forward-looking statements. Important elements that might trigger precise outcomes to vary materially from these within the forward-looking statements embody the next: an outbreak of illness, international or localized well being pandemic or epidemic, or the worry of such an occasion (such because the COVID-19 international pandemic), together with the worldwide financial uncertainty and measures taken in response; the short- and long-term results of the COVID-19 international pandemic, together with the tempo of restoration or any future resurgence; the continuing hostility between Russia and Ukraine and international geopolitical pressure and the associated impression on macroeconomic circumstances; precise or potential adjustments in worldwide, nationwide, regional and native financial, business and monetary circumstances, together with recessions, inflation, rising rates of interest, volatility within the capital markets and associated market uncertainty; the impression of worsening macroeconomic circumstances on our new and present prospects, and the associated impacts on our capacity to accumulate new prospects and generate extra income from present prospects; our incapacity to generate considerably all of our income and money flows from gross sales of subscriptions to our platform and any decline in demand for our platform and the info we provide; the competitiveness of the market during which we function and our capacity to compete successfully; the failure to take care of and enhance our platform, or develop new modules or insights for healthcare business intelligence; the shortcoming to acquire and preserve correct, complete or dependable knowledge, which may lead to diminished demand for our platform; the danger that our latest development charges might not be indicative of our future development; the shortcoming to attain or maintain profitability sooner or later in comparison with historic ranges as we enhance investments in our business; the lack of our entry to our knowledge suppliers; the failure to answer advances in healthcare business intelligence; an incapacity to draw new prospects and develop subscriptions of present prospects; the danger of cyber-attacks and safety vulnerabilities; litigation, investigations or different authorized, governmental or regulatory actions; and the chance that our safety measures are breached or unauthorized entry to knowledge is in any other case obtained.
Additional elements or occasions that might trigger our precise efficiency to vary from these forward-looking statements could emerge every now and then, and it isn’t potential for us to foretell all of them. Should a number of of those dangers or uncertainties materialize, or ought to any of our assumptions show incorrect, our precise monetary situation, outcomes of operations, future efficiency and business could differ in materials respects from the efficiency projected in these forward-looking statements.
For extra dialogue of things that might impression our operational and monetary outcomes, check with our Annual Report on Form 10-Ok for the fiscal yr ended December 31, 2021 and our Quarterly Reports on Form 10-Q, Current Reports on Form 8-Ok and different subsequent SEC filings, that are or shall be out there on the Investor Relations web page of our web site at ir.definitivehc.com and on the SEC web site at www.sec.gov.
All data on this press launch speaks solely as of the date on which it’s made. We undertake no obligation to publicly replace this data, whether or not on account of new data, future developments or in any other case, besides as could also be required by legislation.
Website
Definitive Healthcare intends to make use of its web site as a distribution channel of fabric firm data. Financial and different vital data relating to the Company is routinely posted on and accessible by means of the Company’s web site at https://www.definitivehc.com/. Accordingly, it’s best to monitor the investor relations portion of our web site at https://ir.definitivehc.com/ along with following our press releases, SEC filings, and public convention calls and webcasts. In addition, chances are you’ll routinely obtain e mail alerts and different details about the Company whenever you enroll your e mail handle by visiting the “Email Alerts” part of our investor relations web page at https://ir.definitivehc.com/.
Non-GAAP Financial Measures
We have introduced supplemental non-GAAP monetary measures as a part of this earnings launch. We imagine that these supplemental non-GAAP monetary measures are helpful to traders as a result of they permit for an analysis of the Company with a concentrate on the efficiency of its core operations, together with offering significant comparisons of monetary outcomes to historic durations and to the monetary outcomes of peer and competitor corporations. A reconciliation of GAAP to Non-GAAP outcomes has been offered within the monetary assertion tables included on the finish of this press launch.
We check with 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 monetary measures. These non-GAAP monetary measures are usually not ready in accordance with usually accepted accounting rules within the U.S., (“GAAP”). These are supplemental monetary measures of our efficiency and shouldn’t be thought-about substitutes for web (loss) revenue, gross revenue or every other measure derived in accordance with GAAP.
We outline Unlevered Free Cash Flow as web money offered from working actions much less purchases of property, gear and different property, plus money curiosity expense and money funds associated to transaction, integration and restructuring associated bills, earnouts and different non-recurring objects. Unlevered Free Cash Flow doesn’t signify residual money circulation out there for discretionary expenditures since, amongst different issues, we now have obligatory debt service necessities.
We outline EBITDA as earnings earlier than debt-related prices, together with curiosity expense, web and loss on extinguishment of debt, revenue taxes and depreciation and amortization. Adjusted EBITDA is outlined as EBITDA adjusted to exclude sure objects of a major or uncommon nature, together with different revenue and expense, equity-based compensation, transaction, integration and restructuring bills and different non-recurring bills. Adjusted EBITDA Margin is outlined as Adjusted EBITDA as a proportion of income. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics utilized by administration and our board of administrators to evaluate the profitability of our operations. We imagine that Adjusted EBITDA and Adjusted EBITDA Margin present helpful measures to traders to evaluate our working efficiency as a result of these metrics remove non-recurring and strange objects and non-cash bills, which we don’t take into account indicative of ongoing operational efficiency. We imagine that these metrics are useful to traders in measuring the profitability of our operations on a consolidated degree.
We outline Adjusted Gross Profit as income much less price of income (excluding acquisition-related depreciation and amortization and fairness compensation prices) and Adjusted Gross Margin means Adjusted Gross Profit as a proportion of income. Adjusted Gross Profit differs from gross revenue, in that gross revenue consists of acquisition-related depreciation and amortization expense and fairness compensation prices. Adjusted Gross Profit and Adjusted Gross Margin are key metrics utilized by administration and our board of administrators to evaluate our operations. We exclude acquisition-related depreciation and amortization bills as they don’t have any direct correlation to the price of working our business on an ongoing foundation. A small amount of equity-based compensation is included in price of income in accordance with GAAP however is excluded from our Adjusted Gross Profit calculations resulting from its non-cash nature.
We outline Adjusted Operating Income as revenue from operations plus acquisition associated amortization, equity-based compensation, transaction, integration and restructuring bills and different non-recurring bills.
We outline Adjusted Net Income as Adjusted Operating Income much less curiosity expense, web, different expense, web, excluding TRA legal responsibility remeasurement expense and recurring revenue tax expense together with the incremental tax results of changes to reach at Adjusted Operating Income. We outline Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted excellent shares.
Our use of those non-GAAP phrases could differ from using related phrases by different corporations in our business and accordingly might not be corresponding to equally titled measures utilized by different corporations and are usually not measures of efficiency calculated in accordance with GAAP. Our presentation of those non-GAAP monetary measures are meant as supplemental measures of our efficiency that aren’t required by, or introduced in accordance with, GAAP. These non-GAAP monetary measures shouldn’t be thought-about as options to (loss) revenue from operations, web (loss) revenue, gross revenue, earnings per share or every other efficiency measures derived in accordance with GAAP, or as measures of working money flows or liquidity.
We don’t present a quantitative reconciliation of the forward-looking non-GAAP monetary measures included on this press launch to essentially the most immediately comparable GAAP measures because of the excessive variability and issue to foretell sure objects excluded from these non-GAAP monetary measures; specifically, the results of stock-based compensation expense, taxes and quantities beneath the alternate tax receivable settlement, deferred tax property and deferred tax liabilities, and transaction, integration and restructuring bills. We anticipate the variability of those excluded objects could have a major, and doubtlessly unpredictable, impression on our future GAAP monetary outcomes.
In evaluating our non-GAAP monetary measures, you have to be conscious that sooner or later we could incur bills just like these eradicated in these displays.
Investor Contact:
Brian Denyeau
ICR for Definitive Healthcare
[email protected]
646-277-1251
Media Contact:
Danielle Johns
[email protected]
| Definitive Healthcare Corp. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (quantities in 1000’s, besides variety of shares) | ||||||||
| September 30, 2022 | December 31, 2021 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current property: | ||||||||
| Cash and money equivalents | $ | 228,828 | $ | 387,498 | ||||
| Short-term investments | 120,798 | — | ||||||
| Accounts receivable, web | 33,689 | 43,336 | ||||||
| Prepaid bills and different present property | 9,716 | 6,518 | ||||||
| Current portion of deferred contract prices | 9,179 | 6,880 | ||||||
| Total present property | 402,210 | 444,232 | ||||||
| Property and gear, web | 4,581 | 5,069 | ||||||
| Operating lease right-of-use property, web | 10,051 | — | ||||||
| Other property | 5,105 | 8,431 | ||||||
| Deferred contract prices, web of present portion | 13,164 | 11,667 | ||||||
| Investment in fairness securities | — | 32,675 | ||||||
| Intangible property, web | 361,703 | 352,470 | ||||||
| Goodwill | 1,322,959 | 1,261,444 | ||||||
| Total property | $ | 2,119,773 | $ | 2,115,988 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 10,266 | 4,651 | ||||||
| Accrued bills and different present liabilities | 18,885 | 22,658 | ||||||
| Current portion of deferred income | 83,820 | 83,611 | ||||||
| Current portion of time period mortgage | 6,875 | 6,875 | ||||||
| Current portion of working lease liabilities | 1,706 | — | ||||||
| Total present liabilities | 121,552 | 117,795 | ||||||
| Long time period liabilities: | ||||||||
| Deferred income | 504 | 412 | ||||||
| Term mortgage, web of present portion | 259,064 | 263,808 | ||||||
| Operating lease liabilities, web of present portion | 10,450 | — | ||||||
| Tax receivable agreements legal responsibility | 157,175 | 153,529 | ||||||
| Deferred tax liabilities | 91,533 | 75,888 | ||||||
| Other long-term liabilities | 1,973 | 1,294 | ||||||
| Total liabilities | 642,251 | 612,726 | ||||||
| Equity: | ||||||||
| Class A Common Stock, par worth $0.001, 600,000,000 shares licensed, 104,961,965 and 97,030,095 shares issued and excellent at September 30, 2022 and December 31, 2021, respectively | 105 | 97 | ||||||
| Class B Common Stock, par worth $0.00001, 65,000,000 shares licensed, 50,566,898 and 48,778,774 shares issued and excellent, respectively, at September 30, 2022, and 58,244,627 and 55,488,221 shares issued and excellent, respectively at December 31, 2021 | — | — | ||||||
| Additional paid-in capital | 962,874 | 890,724 | ||||||
| Accumulated different complete revenue | 3,911 | 62 | ||||||
| Accumulated deficit | (34,140 | ) | (17,677 | ) | ||||
| Noncontrolling pursuits | 544,772 | 630,056 | ||||||
| Total fairness | 1,477,522 | 1,503,262 | ||||||
| Total liabilities and fairness | $ | 2,119,773 | $ | 2,115,988 | ||||
| Definitive Healthcare Corp. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (quantities in 1000’s, besides share quantities and per share knowledge; unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 57,382 | $ | 43,084 | $ | 162,054 | $ | 119,841 | ||||||||
| Cost of income: | ||||||||||||||||
| Cost of income unique of amortization (1) | 6,569 | 5,129 | 18,717 | 13,895 | ||||||||||||
| Amortization | 3,155 | 5,356 | 14,113 | 15,896 | ||||||||||||
| Gross revenue | 47,658 | 32,599 | 129,224 | 90,050 | ||||||||||||
| Operating bills: | ||||||||||||||||
| Sales and advertising (1) | 21,184 | 14,376 | 66,062 | 39,003 | ||||||||||||
| Product improvement (1) | 9,205 | 4,746 | 24,761 | 12,817 | ||||||||||||
| General and administrative (1) | 13,718 | 7,880 | 33,564 | 18,891 | ||||||||||||
| Depreciation and amortization | 10,037 | 9,760 | 30,105 | 28,814 | ||||||||||||
| Transaction, integration and restructuring bills | 2,945 | (137 | ) | 6,362 | 3,332 | |||||||||||
| Total working bills | 57,089 | 36,625 | 160,854 | 102,857 | ||||||||||||
| Loss from operations | (9,431 | ) | (4,026 | ) | (31,630 | ) | (12,807 | ) | ||||||||
| Other revenue (expense), web: | ||||||||||||||||
| Other revenue, web | 5,528 | 119 | 9,429 | 143 | ||||||||||||
| Interest expense, web | (2,466 | ) | (7,186 | ) | (6,930 | ) | (23,956 | ) | ||||||||
| Loss on extinguishment of debt | – | (9,873 | ) | – | (9,873 | ) | ||||||||||
| Total different revenue (expense), web | 3,062 | (16,940 | ) | 2,499 | (33,686 | ) | ||||||||||
| Net loss earlier than revenue taxes | (6,369 | ) | (20,966 | ) | (29,131 | ) | (46,493 | ) | ||||||||
| Income tax profit | 15 | – | 141 | – | ||||||||||||
| Net loss | (6,354 | ) | (20,966 | ) | (28,990 | ) | (46,493 | ) | ||||||||
| Less: Net loss attributable to Definitive OpCo previous to the Reorganization Transactions | — | (7,816 | ) | — | (33,343 | ) | ||||||||||
| Less: Net loss attributable to noncontrolling pursuits | (3,665 | ) | (5,172 | ) | (12,527 | ) | (5,172 | ) | ||||||||
| Net loss attributable to Definitive Healthcare Corp. | $ | (2,689 | ) | $ | (7,978 | ) | $ | (16,463 | ) | $ | (7,978 | ) | ||||
| Net loss per share of Class A Common Stock: | ||||||||||||||||
| Basic and diluted | $ | (0.03 | ) | $ | (0.09 | ) | $ | (0.16 | ) | $ | (0.09 | ) | ||||
| Weighted common Class A Common Stock excellent: | ||||||||||||||||
| Basic and diluted | 102,904,565 | 88,263,333 | 99,776,742 | 88,263,333 | ||||||||||||
| (1) Amounts embody equity-based compensation expense as follows: | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Cost of income | $ | 236 | $ | 48 | $ | 698 | $ | 79 | ||||||||
| Sales and advertising | 2,260 | 326 | 11,062 | 567 | ||||||||||||
| Product improvement | 2,171 | 187 | 5,301 | 341 | ||||||||||||
| General and administrative | 4,466 | 1,756 | 7,949 | 3,351 | ||||||||||||
| Total equity-based compensation expense | $ | 9,133 | $ | 2,317 | $ | 25,010 | $ | 4,338 | ||||||||
| Definitive Healthcare Corp. | ||||||||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||||||||
| (quantities in 1000’s; unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Cash flows from working actions: | ||||||||||||||||
| Net loss | $ | (6,354 | ) | $ | (20,966 | ) | $ | (28,990 | ) | $ | (46,493 | ) | ||||
| Adjustments to reconcile web loss to web money offered by (utilized in) working actions: | ||||||||||||||||
| Depreciation and amortization | 469 | 452 | 1,721 | 1,193 | ||||||||||||
| Amortization of intangible property | 12,723 | 14,664 | 42,497 | 43,517 | ||||||||||||
| Amortization of deferred contract prices | 2,283 | 1,293 | 6,274 | 3,195 | ||||||||||||
| Equity-based compensation | 9,133 | 2,317 | 25,010 | 4,338 | ||||||||||||
| Amortization of debt issuance prices | 176 | 475 | 527 | 1,522 | ||||||||||||
| Allowance for uncertain accounts | 763 | 181 | 769 | 76 | ||||||||||||
| Loss on extinguishment of debt | — | 9,843 | — | 9,843 | ||||||||||||
| Non-cash restructuring costs associated to workplace leases | — | — | 1,023 | — | ||||||||||||
| Tax receivable settlement remeasurement | (5,153 | ) | — | (8,296 | ) | — | ||||||||||
| Changes in honest worth of contingent consideration | — | (212 | ) | — | 3,169 | |||||||||||
| Deferred revenue taxes | (42 | ) | — | (206 | ) | — | ||||||||||
| Changes in working property and liabilities: | ||||||||||||||||
| Accounts receivable | (2,816 | ) | (5,297 | ) | 12,454 | 5,179 | ||||||||||
| Prepaid bills and different present property | 1,235 | 53 | 2,554 | (561 | ) | |||||||||||
| Deferred contract prices | (3,224 | ) | (3,001 | ) | (10,070 | ) | (9,043 | ) | ||||||||
| Contingent consideration | — | — | (6,400 | ) | — | |||||||||||
| Accounts payable, accrued bills and different present liabilities | 6,194 | (1,846 | ) | 3,956 | (3,965 | ) | ||||||||||
| Deferred income | (4,702 | ) | 1,096 | (3,024 | ) | 9,023 | ||||||||||
| Net money offered by (utilized in) working actions | 10,685 | (948 | ) | 39,799 | 20,993 | |||||||||||
| Cash flows from investing actions: | ||||||||||||||||
| Purchases of property, gear and different property | (1,878 | ) | (440 | ) | (3,455 | ) | (5,662 | ) | ||||||||
| Purchases of short-term investments | (54,309 | ) | — | (217,266 | ) | — | ||||||||||
| Maturities of short-term investments | 52,000 | — | 96,000 | — | ||||||||||||
| Cash paid for acquisitions, web of money acquired | 203 | — | (56,296 | ) | — | |||||||||||
| Net money utilized in investing actions | (3,984 | ) | (440 | ) | (181,017 | ) | (5,662 | ) | ||||||||
| Cash flows from financing actions: | ||||||||||||||||
| Proceeds from time period mortgage | — | 275,000 | — | 275,000 | ||||||||||||
| Repayments of time period loans | (1,718 | ) | (470,402 | ) | (5,156 | ) | (472,742 | ) | ||||||||
| Taxes paid associated to web share settlement of fairness awards | (2,745 | ) | — | (2,745 | ) | — | ||||||||||
| Payment of contingent consideration | — | — | (1,100 | ) | (1,500 | ) | ||||||||||
| Payment of debt issuance prices | — | (3,511 | ) | — | (3,511 | ) | ||||||||||
| Proceeds from fairness choices, web of underwriting reductions | — | 452,812 | — | 452,812 | ||||||||||||
| Repurchase of excellent fairness/Definitive OpCo models | — | (92,812 | ) | — | (92,812 | ) | ||||||||||
| Payments of fairness providing issuance prices | — | (4,519 | ) | (1,299 | ) | (5,913 | ) | |||||||||
| Member contributions | — | — | — | 5,500 | ||||||||||||
| Member distributions | (1,652 | ) | (3,811 | ) | (6,939 | ) | (7,139 | ) | ||||||||
| Net money (utilized in) offered by financing actions | (6,115 | ) | 152,757 | (17,239 | ) | 149,695 | ||||||||||
| Net enhance (lower) in money and money equivalents | 586 | 151,369 | (158,457 | ) | 165,026 | |||||||||||
| Effect of alternate charge adjustments on money and money equivalents | 40 | (55 | ) | (213 | ) | (48 | ) | |||||||||
| Cash and money equivalents, starting of interval | 228,202 | 38,438 | 387,498 | 24,774 | ||||||||||||
| Cash and money equivalents, finish of interval | $ | 228,828 | $ | 189,752 | $ | 228,828 | $ | 189,752 | ||||||||
| Supplemental money circulation disclosures: | ||||||||||||||||
| Cash paid in the course of the interval for: | ||||||||||||||||
| Interest | $ | 2,898 | $ | 11,615 | $ | 7,248 | $ | 27,587 | ||||||||
| Income taxes | $ | — | $ | — | $ | — | $ | 13 | ||||||||
| Acquisitions: | ||||||||||||||||
| Net property acquired, web of money acquired | $ | (203 | ) | $ | — | $ | 97,296 | $ | — | |||||||
| Initial money funding in prior yr | — | — | (40,000 | ) | — | |||||||||||
| Contingent consideration | — | — | (1,000 | ) | — | |||||||||||
| Net money paid for acquisitions | $ | (203 | ) | $ | — | $ | 56,296 | $ | — | |||||||
| Supplemental disclosure of non-cash investing actions: | ||||||||||||||||
| Capital expenditures included in accrued bills | $ | 4,504 | $ | 369 | $ | 4,504 | $ | 369 | ||||||||
| Supplemental disclosure of non-cash financing actions: | ||||||||||||||||
| Unpaid fairness providing prices included in accrued bills | $ | 147 | $ | 5,481 | $ | 147 | $ | 5,481 | ||||||||
| 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 1000’s; unaudited) |
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| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Cash circulation from operations | $ | 10,685 | $ | (948 | ) | $ | 39,799 | $ | 20,993 | ||||||
| Purchases of property, gear and different property | (1,878 | ) | (440 | ) | (3,455 | ) | (5,662 | ) | |||||||
| Interest paid in money | 2,898 | 11,615 | 7,248 | 27,587 | |||||||||||
| Transaction, integration and restructuring bills paid in money (a) | 3,249 | 75 | 5,744 | 163 | |||||||||||
| Earnout cost (b) | — | — | 6,400 | — | |||||||||||
| Other non-recurring objects (c) | 547 | 1,149 | 2,738 | 3,313 | |||||||||||
| Unlevered Free Cash Flow | $ | 15,501 | $ | 11,451 | $ | 58,474 | $ | 46,394 | |||||||
| (a) Transaction and integration bills paid in money primarily signify authorized, accounting and consulting bills associated to our acquisitions, together with a go-to market integration mission carried out within the third quarter of 2022. Restructuring bills paid in money primarily signify lease and exit prices associated to workplace relocations. (b) Earnout cost represents closing settlement of contingent consideration included in money circulation from operations. (c) Non-recurring objects signify bills which are usually one-time or non-operational in nature. |
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| Reconciliation of GAAP Net Loss to Adjusted Net Income and | |||||||||||||||
| GAAP Operating Loss to Adjusted Operating Income | |||||||||||||||
| (in 1000’s, besides per share quantities; unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net loss | $ | (6,354 | ) | $ | (20,966 | ) | $ | (28,990 | ) | $ | (46,493 | ) | |||
| Add: Income tax provision (profit) | (15 | ) | — | (141 | ) | — | |||||||||
| Add: Interest expense, web | 2,466 | 7,186 | 6,930 | 23,956 | |||||||||||
| Add: Loss from extinguishment from debt | — | 9,873 | — | 9,873 | |||||||||||
| Add: Other expense (revenue), web | (5,528 | ) | (119 | ) | (9,429 | ) | (143 | ) | |||||||
| Loss from operations | (9,431 | ) | (4,026 | ) | (31,630 | ) | (12,807 | ) | |||||||
| Add: Amortization of intangible property acquired by means of business combos | 12,478 | 14,404 | 41,698 | 42,746 | |||||||||||
| Add: Equity-based compensation | 9,133 | 2,317 | 25,010 | 4,338 | |||||||||||
| Add: Transaction, integration and restructuring bills | 2,945 | (137 | ) | 6,362 | 3,332 | ||||||||||
| Add: Other non-recurring objects | 547 | 1,149 | 2,738 | 3,313 | |||||||||||
| Adjusted Operating Income | 15,672 | 13,707 | 44,178 | 40,922 | |||||||||||
| Less: Interest expense, web | (2,466 | ) | (7,186 | ) | (6,930 | ) | (23,956 | ) | |||||||
| Less: Recurring revenue tax profit (provision) | 15 | — | 533 | — | |||||||||||
| Less: Foreign forex acquire | 375 | 119 | 1,133 | 143 | |||||||||||
| Less: Tax impacts of changes to web revenue (loss) | (4,722 | ) | (4,472 | ) | (13,470 | ) | (10,304 | ) | |||||||
| Adjusted Net Income | $ | 8,874 | $ | 2,168 | $ | 25,444 | $ | 6,805 | |||||||
| Shares for Adjusted Net Income Per Diluted Share (a) | 155,524,190 | 148,298,331 | 154,835,056 | 148,298,331 | |||||||||||
| Adjusted Net Income Per Share | $ | 0.06 | $ | 0.01 | $ | 0.16 | $ | 0.05 | |||||||
| (a) Diluted Adjusted Net Income Per Share is computed by giving impact to all potential weighted common Class A typical inventory and any securities which are convertible into Class A typical inventory, together with Definitive OpCo models and restricted inventory models. The dilutive impact of excellent awards and convertible securities is mirrored in diluted earnings per share by utility of the treasury inventory technique assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 158,940,807 and 149,745,883 as of September 30, 2022 and 2021, respectively. | |||||||||||||||
| Reconciliation of Adjusted EBITDA to GAAP Net Loss | |||||||||||||||
| (in 1000’s; unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net loss | $ | (6,354 | ) | $ | (20,966 | ) | $ | (28,990 | ) | $ | (46,493 | ) | |||
| Interest expense, web | 2,466 | 7,186 | 6,930 | 23,956 | |||||||||||
| Income tax provision (profit) | (15 | ) | — | (141 | ) | — | |||||||||
| Loss from extinguishment of debt | — | 9,873 | — | 9,873 | |||||||||||
| Depreciation & amortization | 13,192 | 15,116 | 44,218 | 44,710 | |||||||||||
| EBITDA | 9,289 | 11,209 | 22,017 | 32,046 | |||||||||||
| Other (revenue) expense, web (a) | (5,528 | ) | (119 | ) | (9,429 | ) | (143 | ) | |||||||
| Equity-based compensation (b) | 9,133 | 2,317 | 25,010 | 4,338 | |||||||||||
| Transaction, integration and restructuring bills (c ) | 2,945 | (137 | ) | 6,362 | 3,332 | ||||||||||
| Other non-recurring objects (d) | 547 | 1,149 | 2,738 | 3,313 | |||||||||||
| Adjusted EBITDA | $ | 16,386 | $ | 14,419 | $ | 46,698 | $ | 42,886 | |||||||
| Revenue | $ | 57,382 | $ | 43,084 | $ | 162,054 | $ | 119,841 | |||||||
| Adjusted EBITDA margin | 29 | % | 33 | % | 29 | % | 36 | % | |||||||
| (a) Primarily represents overseas alternate and TRA legal responsibility remeasurement beneficial properties and losses. (b) Equity-based compensation represents non-cash compensation expense acknowledged in affiliation with fairness awards made to staff and administrators. (c) Transaction and integration bills primarily signify authorized, accounting and consulting bills and honest worth changes for contingent consideration associated to our acquisitions, together with a go-to market integration mission carried out within the third quarter of 2022. Restructuring bills relate to impairment and restructuring costs associated to workplace relocations. (d) Non-recurring objects signify bills which are usually one-time or non-operational in nature. |
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| Reconciliation of Adjusted Gross Profit to GAAP Gross Profit | |||||||||||||||
| (in 1000’s; unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Reported gross revenue | $ | 47,658 | $ | 32,599 | $ | 129,224 | $ | 90,050 | |||||||
| Amortization of intangible property ensuing from acquisition-related buy accounting changes (a) | 2,910 | 5,096 | 13,314 | 15,125 | |||||||||||
| Equity-based compensation | 236 | 48 | 698 | 79 | |||||||||||
| Adjusted Gross Profit | $ | 50,804 | $ | 37,743 | $ | 143,236 | $ | 105,254 | |||||||
| Revenue | 57,382 | 43,084 | 162,054 | 119,841 | |||||||||||
| Adjusted Gross Margin | 89 | % | 88 | % | 88 | % | 88 | % | |||||||
| (a) Amortization of intangible property ensuing from buy accounting changes represents non-cash amortization of acquired intangibles, primarily ensuing from the Advent acquisition. | |||||||||||||||
