Overview
Definitive Healthcare Q2 revenue fell 5% but beat analyst expectations, per LSEG data
Net loss improved to $9.3 mln from $306.2 mln in Q2 2024
Adjusted EBITDA decreased to $18.7 mln, representing 31% of revenue
Outlook
Company raises full-year revenue guidance to $237-240 mln
Company expects Q3 revenue of $59.0 mln to $60.0 mln
Company raises full-year adjusted EBITDA outlook to $64.0 – $67.0 mln
Adjusted Net Income for Q3 expected to be $7.5 mln to $8.5 mln
Result Drivers
CUSTOMER WINS - Co attributes success to new customer acquisitions and expansion opportunities across end-markets, driven by superior data and integration capabilities
DATA QUALITY - Healthcare revenue cycle management firm selected co due to superior data quality and integration with HubSpot
RETURNING CLIENTS - Digital health organization returned to co for custom reporting capabilities, crucial for Medicaid claims activity
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$60.75 mln
$59.20 mln (12 Analysts)
Q2 Net Income
-$9.26 mln
Q2 Gross Profit
$46.61 mln
Q2 Pretax Profit
-$8.81 mln
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Definitive Healthcare Corp is $4.00, about 1.7% above its August 6 closing price of $3.93
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nGNX1nZw8q
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)