DH Earnings Prediction
The chart below shows how DH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DH sees a +11.52% change in stock price 10 days leading up to the earnings, and a -12.39% change 10 days following the report. On the earnings day itself, the stock moves by -1.18%. This data can give you a slight idea of what to expect for the next quarter's release.
DH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
62.29M
-5.53%
-0.65%
Gross Margin
61.31%
-7.04%
-2.82%
Operating Margin
-4.78%
-51.17%
-339.00%
Net Margin
-136.01%
570.99%
-54.60%
EPS
-0.51
-466.67%
-54.46%
No Data Available
DH Earnings Analysis
Definitive Healthcare Corp Corporation (DH.O) Earnings Conference Call
Positive
Q4 Revenue Exceeds Guidance: Total revenue for Q4 2024 was $62.3 million, exceeding the high end of guidance ranges for both top and bottom line.
Earnings Growth Highlights: Adjusted net income and non-GAAP earnings per share grew by 18% and 19% respectively over Q4 2023.
Strong Cash Flow Conversion: Unlevered free cash flow was strong with a 92% conversion from adjusted EBITDA, up 6% year-over-year on a dollar basis.
New Business Acquisition: Secured new business in Q4, including new logos and upsell/cross-sell activity with existing customers, validating Definitive’s value proposition.
Customer Retention Initiatives: The company is committed to improving customer retention and has implemented several initiatives to enhance customer success and onboarding processes.
Customer Success Leadership: A new chief customer officer has been appointed to oversee customer success, reflecting the company's focus on retention.
Data Delivery Enhancement: The company is investing in enhancing data delivery and integrations, which is expected to increase the value proposition and make the business stickier.
Data Quality Enhancement: Definitive Healthcare is recognized for having the best data in the market, and they are continuously investing to expand and strengthen their data sets.
Data Quality Partnerships: The company has established partnerships that enhance the quality of their data and provide critical components for master data management solutions.
Digital Activation Expansion Plans: Plans to expand digital activation capabilities across the business, which is expected to drive new sales opportunities and alleviate churn pressure.
Negative
Revenue Decline and Retention Issues: Total revenue decreased by 6% year-over-year, indicating ongoing customer retention challenges.
Decline in Adjusted EBITDA: Adjusted EBITDA fell by 12% year-over-year, reflecting the impact of declining revenue.
Churn Rate Analysis: Churn rates remained elevated compared to Q4 2023, despite some retention of customers in a downsell capacity.
Customer Base Decline: The company lost 21 enterprise customers year-over-year, indicating a decline in its customer base.
Customer Retention Challenges: Net dollar retention for enterprise customers was 90%, and 85% overall, suggesting challenges in maintaining revenue from existing customers.
Gross Profit Decline: Adjusted gross profit decreased by 10% year-over-year, with gross profit margin declining by approximately 400 basis points.
Rising Sales Expense Concerns: Sales and marketing expenses are expected to increase as a percentage of revenue due to revenue pressure, indicating potential inefficiencies.
Goodwill Impairment Charge: The company experienced a $97 million goodwill impairment charge, reflecting a decline in stock price and potential concerns about future performance.
Q1 2025 Revenue Decline: Guidance for Q1 2025 indicates a revenue decrease of 10% to 13% year-over-year, suggesting continued struggles in the near term.
Revenue Decline Forecast: Full year 2025 revenue guidance reflects a decline of 5% to 9% year-over-year, indicating ongoing challenges in growth.
DH FAQs
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DH Earning Call Sentiment
Definitive Healthcare Corp. (NASDAQ:DH) Q4 2024 Earnings Call Transcript
DH.O
0%Positive
The earnings call reveals several negative indicators: revenue and EBITDA declines, decreased customer count, goodwill impairment, and unfavorable churn dynamics. Despite some positive aspects, like strong cash flow and a share buyback program, the negative guidance for 2025 and concerns over pricing pressure and leadership transitions contribute to a negative sentiment. The Q&A section highlights challenges with churn and pricing pressure. The stock is likely to react negatively, within the -2% to -8% range, considering the overall negative financial outlook and market uncertainties.
