Overview

* Definitive Healthcare ( DH ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $60.75 $59.20

Revenue mln mln (12

Analysts

)

Q2 Net -$9.26

Income mln

Q2 Gross $46.61

Profit mln

Q2 -$8.81

Pretax mln

Profit

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 ( DH ) 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:

(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.)