Definitive Healthcare Corp. (NASDAQ:DH) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET

Company Participants

Matthew Ruderman - Investor Relations
Jason Krantz - Founder, Executive Chairman and Interim Chief Executive Officer
Rick Booth - Chief Financial Officer

Conference Call Participants

Craig Hettenbach - Morgan Stanley
Jared Haase - William Blair
Matt Shea - Needham & Company
Anne Samuel - JPMorgan
David Grossman - Stifel
Stephanie Davis - Barclays

Operator

Welcome to Definitive Healthcare’s Q1 2024 Earnings Call. Our host for today’s call is Jason Krantz. [Operator Instructions] I would now like to turn the call over to your host, Mr. Krantz, you may begin.

Matthew Ruderman

Good afternoon and thank you for joining us today to review Definitive Healthcare’s financial results. Joining me on the call today are Jason Krantz, our Founder, Executive Chairman and Interim CEO; and Rick Booth, our CFO.

During this call, we will make forward-looking statements, including, but not limited to, statements related to our market and future performance and growth opportunities, the benefits of our healthcare commercial intelligence solutions, our competitive position, customer behaviors and use of our solutions, our financial guidance, our planned investments, generating value for our customers and shareholders and the anticipated impacts of global macroeconomic conditions on our business results and clients and on the healthcare industry generally.

Any forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in our filings with the SEC. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements to reflect events that may arise after this conference call, except as required by law.

For more information, please refer to the cautionary statement included in the earnings release that we have just posted in the Investor Relations portion of our website. Additionally, we will discuss non-GAAP financial measures on this conference call. Please refer to the tables in our earnings release on the Investor Relations portion of our website for a reconciliation of these measures to their most directly comparable GAAP financial measure.

With that, I’d like to turn the call over to Jason.

Jason Krantz

Thanks Matt and thanks to all of you for joining us this afternoon to review Definitive Healthcare’s first quarter 2024 financial results. As you will hear on today’s call, our first quarter performance was mixed. While we met our revenue guidance for the quarter, we underperformed our new logo and upsell expectations, largely due to the continued macro headwinds and disruption from our restructuring at the beginning of the year. However, we delivered strong adjusted EBITDA margin expansion as we continue to focus on operational efficiencies to set ourselves up for long-term profitable growth. Furthermore, we continue to improve our customer renewal rate during the quarter as our work to deliver more value to our customers faster, continue to take hold. Finally, the financial power of our business model is shown as we translated 97% of our adjusted EBITDA into unlevered free cash flow over the last 12 months.