Definitive Healthcare Reports Q3 Performance and Stock Buyback

Definitive Healthcare Corp. Class A ( (DH) ) has released its Q3 earnings. Here is a breakdown of the information Definitive Healthcare Corp. Class A presented to its investors.

Definitive Healthcare Corp., a leader in healthcare commercial intelligence, provides data-driven insights primarily to the healthcare industry to identify market opportunities and people shaping the future of healthcare.

In its latest earnings report, Definitive Healthcare exceeded its guidance on revenue, adjusted net income, and adjusted EBITDA for the third quarter of fiscal year 2024. The company also announced a $100 million stock repurchase authorization, reflecting confidence in its market position despite facing some financial challenges.

Revenue for the third quarter was reported at $62.7 million, a 4% decrease from the previous year, while the net loss was $(187.8) million, impacted heavily by goodwill impairment charges. On a more positive note, the adjusted net income rose to $15.4 million from $14.6 million in the previous year. Cash flow from operations was robust at $19.4 million, and the unlevered free cash flow was $24.3 million. Additionally, the company noted an increase in its enterprise customer base, signifying strong business momentum.

The strategic move to authorize a stock repurchase program of up to $100 million of its Class A Common Stock underscores the company’s strategic intent to enhance shareholder value. Furthermore, the announcement of CFO Richard Booth’s departure by June 2025 signals an impending leadership change, with the company initiating a search for his successor.

Looking forward, Definitive Healthcare maintains a cautiously optimistic outlook with revenue expectations for the fourth quarter set between $60.0 and $61.0 million. The company anticipates continued growth in adjusted operating income and adjusted EBITDA, signaling a focus on long-term profitability and strategic expansion.