{ "docId": "019de518-6997-72a0-bdac-efb82518f579", "docSlug": "49b90dda4195b91058ef1d4176328dfb", "documentTitle": "Definitive Healthcare | Results Presentation Deck | 34 slides", "authorId": "definitive-healthcare", "authorName": "Definitive Healthcare", "documentKindSlug": "conference-presentation", "documentKindLabel": "Conference presentation", "sourceTypeSlug": "investor_relations", "sourceTypeLabel": "Investor relations", "presentationDate": "2024-05-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.7777778, "pageNumber": 34, "pageCount": 34, "prevPage": 33, "nextPage": null, "slideType": "appendix_methodology", "function": "appendix", "density": "overcrowded", "nDataPoints": 0, "notes": null, "elementsJson": null, "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019de518-6997-72a0-bdac-efb82518f579/34", "deckHref": "/decks/019de518-6997-72a0-bdac-efb82518f579", "deckJsonHref": "/decks/019de518-6997-72a0-bdac-efb82518f579.json", "deckAnchorHref": "/decks/019de518-6997-72a0-bdac-efb82518f579#slide-34", "components": [ { "bbox": { "h": 0.015, "w": 0.42, "x": 0.518, "y": 0.392 }, "kind": "paragraph", "text": "Adjusted EBITDA Margin: defined as Adjusted EBITDA divided by GAAP Revenue", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0ad2ca46-7dcd-4a9a-9820-d20156eb7ed1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.076, "y": 0.383 }, "kind": "paragraph", "text": "Enterprise Customers: Customers generating more than $100,000 in ARR", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0c2572b4-acad-404a-83b5-bf1668964da3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.076, "y": 0.772 }, "kind": "paragraph", "text": "Adjusted Gross Margin: is calculated as Adjusted Gross Profit divided by GAAP Revenue", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "214dcff5-d4c1-4cd9-98c0-c6da71bd7e30", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.42, "x": 0.076, "y": 0.804 }, "kind": "paragraph", "text": "Core Sales and Marketing: is calculated as GAAP Sales and Marketing expense less equity-compensation costs and non-core & one-time items allocated to Sales and Marketing", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "281fe409-ffb7-4f29-b265-ec3f7e424071", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.42, "x": 0.518, "y": 0.424 }, "kind": "paragraph", "text": "Adjusted Operating Income: defined as GAAP 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": "2caf0931-2e3a-42ab-9ef0-eed969d9ba6b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.42, "x": 0.076, "y": 0.415 }, "kind": "paragraph", "text": "Annual Recurring Revenue (ARR): Refers to annual recurring revenue as of period end, which is calculated by aggregating annual subscription revenue from committed contractual amounts for all existing customers during that period. ARR may also include, in rare circumstances, existing customers with expired contracts who have provided oral or written commitments to renew.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "322f51a8-3d78-480b-ba3b-6df2312e7fc7", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.518, "y": 0.626 }, "kind": "paragraph", "text": "Unlevered Free Cash Flow Margin: is calculated as Unlevered Free Cash Flow divided by GAAP Revenue", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3eb19ff9-6ee3-4879-81ac-eac04de6b2ad", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.075, "w": 0.42, "x": 0.518, "y": 0.31 }, "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-core expenses", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "410b53ee-568b-47ca-84ac-3814dac647b9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.075, "w": 0.42, "x": 0.076, "y": 0.48 }, "kind": "paragraph", "text": "Net Dollar Retention Rate (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": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4a2a7e5a-22ca-40b9-8833-a5701871e248", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.42, "x": 0.076, "y": 0.686 }, "kind": "paragraph", "text": "Adjusted Gross Profit: is calculated as revenue less cost of revenue (excluding acquisition-related depreciation and amortization) and equity based compensation", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5a336f75-36f7-4c83-8c23-030a4ffca8e2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.42, "x": 0.076, "y": 0.644 }, "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": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5c2b520e-6403-4ba0-8ee8-be2a5e10760c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.42, "x": 0.076, "y": 0.846 }, "kind": "paragraph", "text": "Core Product Development: is calculated as GAAP Product Development expense less equity-compensation costs and non-core & one-time items allocated to Product Development", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6d522172-2e55-4466-9113-b0598147b305", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.076, "y": 0.75 }, "kind": "paragraph", "text": "Gross Margin: is calculated as Gross Profit divided by GAAP Revenue", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "83cd5e4c-d88b-418f-82e6-36f637e537f9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.42, "x": 0.518, "y": 0.534 }, "kind": "paragraph", "text": "Unlevered Free Cash Flow (uFCF): Defined 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": "8f92b57e-6350-46af-8c87-afa23ef03d7f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.42, "x": 0.518, "y": 0.268 }, "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": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9c030b00-34fd-409f-8c5c-81a123165269", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.42, "x": 0.076, "y": 0.888 }, "kind": "paragraph", "text": "Core General & Administrative: is calculated as GAAP General & Administrative expense less equity-compensation costs and non-core & one-time items allocated to General & Administrative", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9c04fdc0-ed10-453b-8adf-738958668d1f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.42, "x": 0.076, "y": 0.213 }, "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": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ab66cfbb-151c-4305-9ee2-e9338b3a8e9f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.42, "x": 0.518, "y": 0.479 }, "kind": "paragraph", "text": "Adjusted Net Income: defined as Adjusted Operating Income less interest expense, net recurring income tax benefit, foreign currency (loss) gain, and tax effects of adjustments to arrive at Adjusted Operating Income.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c1f03cfb-83cb-4dd1-bd3f-9873c470a27f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.42, "x": 0.518, "y": 0.872 }, "kind": "paragraph", "text": "Financial Audits: Core metrics and historical financials shown throughout the presentation should be considered unaudited", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c81569c0-b7a2-4e12-a019-d4fefde924ac", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.076, "y": 0.728 }, "kind": "paragraph", "text": "Gross Profit: is revenue less cost of revenue.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cd5fadea-6e65-45ea-a630-337b51986f82", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.025, "w": 0.42, "x": 0.076, "y": 0.602 }, "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": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "cfcdefaf-fedc-49de-aa2e-6094a671d9dd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.076, "y": 0.57 }, "kind": "paragraph", "text": "Revenue: GAAP revenue", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "d15604f7-da93-4195-8d22-77452ba7cdb2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.42, "x": 0.518, "y": 0.658 }, "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": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "df8af5a1-7e8b-45fe-93e8-49de0fdf9756", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.015, "w": 0.42, "x": 0.518, "y": 0.904 }, "kind": "paragraph", "text": "Rounding: In some instances, rounding has occurred throughout the presentation", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e6121d1a-7bb7-4073-b5b2-36095f2cff9b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.42, "x": 0.518, "y": 0.76 }, "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-core items divided by (ii) the number of new customers added during the period", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f1c75931-5c97-40d8-b95f-46f2a3d88718", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.045, "w": 0.42, "x": 0.518, "y": 0.213 }, "kind": "paragraph", "text": "cRPO: Represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue within the next twelve months. cRPO is not necessarily indicative of future revenue growth.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f514a466-749e-4c10-adf9-9c983299ca31", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.01, "w": 0.018, "x": 0.947, "y": 0.94 }, "kind": "source-note", "text": "34", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "87ed85d1-96ca-411d-b39e-7a622f8b62a9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.37, "x": 0.076, "y": 0.09 }, "kind": "title", "text": "Basis of presentation", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "466413b2-92df-41e9-9ded-af293172b4ed", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 34, "from": 20, "beatId": "f5ec0119-ff24-490b-9858-f8c331442657", "arcName": "The Sparkline", "arcSlug": "sparkline", "beatName": "Resolution", "beatSlug": "resolution", "evidence": "Appendix and financial reconciliations", "position": 4, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }