{ "docId": "019de517-f845-777c-97fc-c51ce6b33c08", "docSlug": "cc05de43e8502b123df845bcf10cfc5b", "documentTitle": "Definitive Healthcare | Results Presentation Deck | 29 slides", "authorId": "definitive-healthcare", "authorName": "Definitive Healthcare", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2024-02-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 22, "pageCount": 29, "prevPage": 21, "nextPage": 23, "slideType": "disclaimer", "function": "establish_context", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019de517-f845-777c-97fc-c51ce6b33c08/22", "deckHref": "/decks/019de517-f845-777c-97fc-c51ce6b33c08", "deckJsonHref": "/decks/019de517-f845-777c-97fc-c51ce6b33c08.json", "deckAnchorHref": "/decks/019de517-f845-777c-97fc-c51ce6b33c08#slide-22", "components": [ { "bbox": { "h": 0.06, "w": 0.855, "x": 0.073, "y": 0.23 }, "kind": "paragraph", "text": "We define Unlevered Free Cash Flow as net cash provided by (used in) 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-core 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": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "60ec5590-fbdd-486a-b3c8-4dca764cbd73", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.14, "w": 0.855, "x": 0.073, "y": 0.303 }, "kind": "paragraph", "text": "We define EBITDA 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-core expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful measures to investors to assess our operating performance because these metrics eliminate non-core and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to investors in measuring the profitability of our operations on a consolidated level.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9ff3155b-44cb-4628-9a85-43cb57ff567a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.855, "x": 0.073, "y": 0.82 }, "kind": "paragraph", "text": "In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in these presentations.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "a4e5c40e-42d0-49fc-ae4b-5efda2c4b742", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.036, "w": 0.855, "x": 0.073, "y": 0.59 }, "kind": "paragraph", "text": "We define Adjusted Operating Income as income (loss) from operations plus acquisition related amortization, equity-based compensation, goodwill impairments, transaction, integration, and restructuring expenses and other non-core expenses.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eacbace6-1d82-4c39-ae73-c086109613c2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.855, "x": 0.073, "y": 0.456 }, "kind": "paragraph", "text": "We define Adjusted Gross Profit as revenue less cost of revenue (excluding acquisition-related depreciation and amortization and equity compensation costs) and Adjusted Gross Margin means Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit differs from gross profit, in that gross profit includes acquisition-related depreciation and amortization expense and equity compensation costs. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small portion of equity-based compensation is included in cost of revenue in accordance with GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "eb05641f-9f43-463c-8509-eb1929b09f18", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.048, "w": 0.855, "x": 0.073, "y": 0.64 }, "kind": "paragraph", "text": "We define Adjusted Net Income as Adjusted Operating Income less interest expense, net, recurring income tax benefit, foreign currency (loss) gain, and tax effects of adjustments. We define Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted outstanding shares.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f07fb847-2510-4225-b7f1-11d372615b28", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.108, "w": 0.855, "x": 0.073, "y": 0.699 }, "kind": "paragraph", "text": "Our use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to net cash provided by (used in) operating activities, net cash provided by (used in) operating activities margin, (loss) income from operations, net (loss) income, net (loss) income margin, gross profit, gross margin, earnings per share or any other performance measures derived in accordance with GAAP, or as measures of operating cash flows or liquidity.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fb605dfc-14f0-4298-b90f-d63db7714b2a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.022, "x": 0.913, "y": 0.95 }, "kind": "source-note", "text": "22", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "1e6de85b-db16-431f-9310-8616ac95c692", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.039, "w": 0.59, "x": 0.073, "y": 0.11 }, "kind": "title", "text": "Non-GAAP Financial Measures", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ce116844-320f-4de1-ba11-0e5bc9b32d2f", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }