Growing Customer Demand For Definitive Healthcare’s SaaS Platform

Shares of Definitive Healthcare Corp. (DH) are down over 60% from their 52-week high of $46.80, recorded last September, and trade around $18.

Definitive Healthcare is a provider of healthcare commercial intelligence, i.e., information on healthcare providers and their activities to help customers optimize everything from product development to go-to-market planning and sales and marketing execution, through its SaaS platform.

The customers of Definitive Healthcare include biopharmaceutical and medical device companies, healthcare information technology companies, healthcare providers and other diversified companies, such as staffing firms, commercial real estate firms, financial institutions and other organizations seeking commercial success in the healthcare ecosystem. There were our over 2,900 customers as of June 30, 2022.

Since going public on September 15, 2021, the company has delivered solid results in each of the quarters so far.

Revenue was $43.1 million in Q3, 2021; $46.3 million in Q4, 2021; $50.1 million in Q1, 2022, and $54.5 million in Q2, 2022.

Adjusted net income was $2.17 million or $0.01 per share in Q3, 2021; $6.6 million or $0.04 per share in Q4, 2021; $7.7 million or $0.05 per share in Q1, 2022; and $8.9 million or $0.06 per share in Q2, 2022.

Commenting on the second-quarter results, Robert Musslewhite, CEO, said, “We continued to see strong revenue growth that demonstrates the leverage of our business model. Demand generation remains healthy, and we are confident in Definitive Healthcare’s growth prospects.”

For the third quarter of 2022, the company expects adjusted net income to be in the range of $6.5 million to $7.5 million and adjusted EPS to be in the range of $0.03 to $0.05. Revenue for the third quarter is expected to be in the range of $56.0 million to $57.0 million, a 31% increase year over year.

Looking ahead to full-year 2022, adjusted net income is expected to be in the range of $29 million to $32 million and adjusted EPS to be in $0.18 to $0.21 range. Adjusted net income was $13.4 million or $0.09 per share in 2021.

Revenue for this year is expected to be in the range of $220.5 million to $224.5 million, up from $166.2 million reported last year.

Cash position:

As of June 30, 2022, the company had $228 million in cash and cash equivalents and $118 million of short-term investments.

As mentioned above, Definitive Healthcare shares began trading on the Nasdaq Global Select Market, on September 15, 2021, priced at $27 each.

DH has traded in a range of $14.76 to $46.80 in the last 1 year. The stock closed Friday’s trading at $18.27, down 5.73%.

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