{ "docId": "019de517-2c78-76c5-a2e9-5cdc6d511601", "docSlug": "2cbaf257f240cee4783548aa5019d00c", "documentTitle": "Definitive Healthcare | Results Presentation Deck | 30 slides", "authorId": "definitive-healthcare", "authorName": "Definitive Healthcare", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2023-11-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 30, "pageCount": 30, "prevPage": 29, "nextPage": null, "slideType": "appendix_methodology", "function": "appendix", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019de517-2c78-76c5-a2e9-5cdc6d511601/30", "deckHref": "/decks/019de517-2c78-76c5-a2e9-5cdc6d511601", "deckJsonHref": "/decks/019de517-2c78-76c5-a2e9-5cdc6d511601.json", "deckAnchorHref": "/decks/019de517-2c78-76c5-a2e9-5cdc6d511601#slide-30", "components": [ { "bbox": { "h": 0.015, "w": 0.42, "x": 0.075, "y": 0.38 }, "kind": "paragraph", "text": "Enterprise Customers: Customers generating more than $100,00 in ARR", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "12daf09a-155b-48a8-9261-5e179bf1bec8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.42, "x": 0.075, "y": 0.43 }, "kind": "paragraph", "text": "Net Dollar Retention (NDR): Refers to net dollar retention rate, which we calculate as the percentage of ARR retained from existing customers across a defined period, after accounting for upsell, down-sell, pricing changes and churn. We calculate net dollar retention as beginning ARR for a period, plus (i) expansion ARR (including, but not limited to, upsell and pricing increases), less (ii) churn (including, but not limited to, non-renewals and contractions), divided by (iii) beginning ARR for a period.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "21793bae-8008-4cba-b655-cbcefb6db336", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.42, "x": 0.518, "y": 0.55 }, "kind": "paragraph", "text": "Customer Lifetime Value (LTV): Refers to customer lifetime value, or the value that we expect to generate from a customer during the period that the customer continues to subscribe to our healthcare commercial intelligence platform. We calculate LTV as the product of (i) our average ARR per customer as of period end, multiplied by (ii) our Adjusted Gross Margin, divided by (iii) the annual revenue churn rate, which is defined as the percentage of ARR associated with customers that cancel during the period divided by the ARR at the beginning of the period.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "262be002-c4c0-449f-8632-88138d23a097", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.075, "y": 0.54 }, "kind": "paragraph", "text": "Revenue Run Rate: Quarterly GAAP revenue x 4. Reflects revenue extrapolated based on current financial information and assumes that current conditions continue", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2e546705-0eb9-4943-882d-8a9ecbe0df18", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.075, "y": 0.61 }, "kind": "paragraph", "text": "Adjusted Gross Profit: is calculated as revenue less cost of revenue (excluding acquisition-related depreciation and amortization) and a small quantity of stock-based compensation", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "36c94d5f-0491-404b-bbd2-1846ec253a9c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.075, "y": 0.68 }, "kind": "paragraph", "text": "Gross Margin: is calculated as Gross Profit divided by GAAP Revenue", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3e311fe0-de67-4009-8bf0-b0bac71ab847", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.075, "y": 0.575 }, "kind": "paragraph", "text": "Organic revenue growth: is calculated as performance as if we had owned an acquired business in the same period a year ago", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "40af5aad-38c1-482f-99f9-c2c736857e1b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.42, "x": 0.518, "y": 0.66 }, "kind": "paragraph", "text": "Customer Acquisition Cost (CAC): Refers to the cost of acquiring a new customer. We calculate CAC as (i) the sales and marketing expense, including associated indirect costs, such as management and overheads, associated with acquiring new customers on a trailing twelve-month basis starting from the prior quarter, excluding expenses that are non-cash or one-time in nature, including share-based compensation, acquisition-related integration and compensation expenses, and non-recurring items divided by (ii) the number of new customers added during the period", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "46182944-1e7f-4f4a-97e3-6f5588df2f06", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.518, "y": 0.755 }, "kind": "paragraph", "text": "Financial Audits: Non-GAAP metrics and historical financials shown throughout the presentation should be considered unaudited", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "55df483a-8f67-4e50-9d3d-5f3582762f65", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.16, "w": 0.42, "x": 0.075, "y": 0.21 }, "kind": "paragraph", "text": "TAM: TAM or \"Total Addressable Market\" refers to the revenue opportunity that we believe is available for our healthcare commercial intelligence platform, a subset of the Global Healthcare Analytics Market. We calculate our TAM by estimating the number of potential customers (including current customers with whom we can expand our relationships) across Life Sciences, Healthcare IT, Healthcare Providers and Other companies and applying an ARR figure to each segment based on internal company data on existing customer spend. For Life Sciences companies, we applied the average ARR of our top quartile of existing customers. For HCIT and Healthcare Providers companies, we applied the average ARR of the top half, and for companies in the Other segment, we applied an average ARR based on spend for existing customers in each segment for the period ending December 31, 2021", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "64ede5a4-c245-4519-97e8-9c0857b80947", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.518, "y": 0.33 }, "kind": "paragraph", "text": "Adjusted EBITDA Margin: defined as Adjusted EBITDA divided by GAAP Revenue", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "766cf61f-e7d8-4bba-ad75-6a6616c0962d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.075, "y": 0.645 }, "kind": "paragraph", "text": "Gross Profit: Non-GAAP gross profit, defined as revenue less cost of revenue (excluding acquisition-related depreciation and amortization and equity compensation costs).", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "854d8899-47bc-403c-a139-ae1194b4442f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.42, "x": 0.518, "y": 0.44 }, "kind": "paragraph", "text": "Unlevered Free Cash Flow (uFCF): Defined as net cash provided from operating activities less purchases of property, equipment and other assets, plus cash interest expense and cash payments related to transaction, integration and restructuring related expenses, earnouts and other non-recurring items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "889f8371-0d75-4ca5-b628-0c9e51c94367", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.075, "y": 0.405 }, "kind": "paragraph", "text": "Annual Recurring Revenue (ARR): Refers to annualized recurring revenue as of period end.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a6966d70-72ec-4b59-9dde-8406d55d5d64", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.075, "y": 0.73 }, "kind": "paragraph", "text": "Non-GAAP Sales and Marketing: is calculated as GAAP Sales and Marketing expense less equity-compensation costs and non-recurring & one-time items allocated to Sales and Marketing", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ad30b33b-af6e-4054-9758-8d7608ae5bd7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.075, "y": 0.8 }, "kind": "paragraph", "text": "Non-GAAP General & Administrative: is calculated as GAAP General & Administrative expense less equity-compensation costs and non-recurring & one-time items allocated to General & Administrative", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ad8c0451-631b-410f-aac0-3f4bfa355cbf", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.075, "y": 0.705 }, "kind": "paragraph", "text": "Adjusted Gross Margin: is calculated as Adjusted Gross Profit divided by GAAP Revenue", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c38d8883-b921-4538-816d-56f1cc5b3ca4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.518, "y": 0.525 }, "kind": "paragraph", "text": "Unlevered Free Cash Flow Margin: is calculated as Unlevered Free Cash Flow divided by GAAP Revenue", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c58c21e3-5862-41fe-bd98-ef375cdd41de", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.075, "y": 0.765 }, "kind": "paragraph", "text": "Non-GAAP Product Development: is calculated as GAAP Product Development expense less equity-compensation costs and non-recurring & one-time items allocated to Product Development", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ccd466aa-1eb3-4984-9291-f9962036db27", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.42, "x": 0.518, "y": 0.355 }, "kind": "paragraph", "text": "Adjusted Net Income: defined as GAAP Net Income before acquisition-related amortization, stock-based compensation, goodwill impairments, non-recurring tax provision, TRA remeasurement expenses, acquisition-related expenses, and other non-recurring expenses. Addbacks are tax effected based on an estimated long-term non-GAAP tax rate of 26% applied to the % of Controlling Interest as of prior quarter end.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dd1f56e4-699c-45aa-942a-640905f39172", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.518, "y": 0.79 }, "kind": "paragraph", "text": "Rounding: In some instances, rounding has occurred throughout the presentation", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ea7861e5-9beb-45a7-ad0e-c085bf710c94", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.42, "x": 0.518, "y": 0.21 }, "kind": "paragraph", "text": "Goodwill Impairment: Represents a non-cash, pretax, impairment charge of goodwill due to a decline in market capitalization in which the fair value of our single reporting unit was lower than its carrying value.", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f1983a9d-248a-4aa3-b10b-c12a9d282cce", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.42, "x": 0.518, "y": 0.245 }, "kind": "paragraph", "text": "Adjusted EBITDA: Adjusted EBITDA is defined as earnings before debt-related costs, including interest expense, net and loss on extinguishment of debt, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including other income and expense, equity-based compensation, goodwill impairments, transaction, integration and restructuring expenses and other non-recurring expenses", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f73a8179-1b9e-4939-b76a-d9a4c81393b3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.075, "y": 0.515 }, "kind": "paragraph", "text": "Revenue: GAAP revenue", "attrs": {}, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ff4650e5-8e2d-48f3-b6b0-946a2f97a85b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.018, "x": 0.93, "y": 0.93 }, "kind": "source-note", "text": "30", "attrs": {}, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "658e67ed-3d93-49b3-9c75-672fb54bda4b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.409, "x": 0.075, "y": 0.065 }, "kind": "title", "text": "Basis of presentation", "attrs": {}, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2066e430-0870-4beb-a7bc-bf2c6dec234b", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 30, "from": 23, "beatId": "4952203a-6596-4de5-abb3-d8aecb2d8749", "arcName": "Rags to Riches", "arcSlug": "rags-to-riches", "beatName": "Reflection", "beatSlug": "reflection", "evidence": "Non-GAAP reconciliations and appendix", "position": 4, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }