Definitive Healthcare stock tumbles on Q4 earnings miss

Published 27/02/2025, 23:08
Definitive Healthcare stock tumbles on Q4 earnings miss

FRAMINGHAM, Mass. - Definitive Healthcare Corp. (NASDAQ:DH) saw its stock plummet 13.6% after reporting fourth quarter earnings that fell well short of analyst expectations, despite revenue beating estimates.

The healthcare commercial intelligence company reported a Q4 adjusted loss per share of -$0.51, missing the analyst consensus of $0.07 by $0.58. Revenue for the quarter came in at $62.3 million, surpassing estimates of $60.55 million but declining 6% YoY from $65.9 million.

Definitive Healthcare’s Q4 net loss ballooned to $84.7 million, or 136% of revenue, compared to a $13.4 million loss in the same quarter last year. The company attributed $97.1 million of the loss to goodwill impairment charges.

Despite the earnings miss, CEO Kevin Coop highlighted positive aspects of the quarter, stating, "Revenue and adjusted EBITDA were above the high end of our guided ranges despite challenging commercial conditions."

For the full year 2024, Definitive Healthcare reported revenue of $252.2 million, a slight increase from $251.4 million in 2023. The company’s net loss for the year widened significantly to $591.4 million, largely due to $688.9 million in goodwill impairment charges.

Looking ahead, Definitive Healthcare provided guidance for Q1 2025, projecting revenue between $55.5 million and $57.0 million. For the full year 2025, the company expects revenue in the range of $230.0 million to $240.0 million, indicating a potential decline from 2024 levels.

The company also announced that Casey Heller, currently Senior Vice President of Finance, will assume the role of Chief Financial Officer effective June 2, 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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