Definitive Healthcare Corp.

All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Mr. David Samuel, Chief Legal Officer. Please go ahead.

Good morning, and thank you for joining us today to review Definitive Healthcare's second quarter 2022 financial results. Joining the call today are Robert Musselwhite, Definitive Healthcare's CEO, Jason Krantz, Definitive Healthcare's founder and executive chair, and Rick Booth, Definitive Healthcare's chief financial officer. During the call, we will make forward-looking statements, including, but not limited to, statements relating to our markets and future growth opportunities, the benefits of our healthcare commercial intelligence solutions, our competitive position, customer behaviors, our financial guidance, our planned investments, and the anticipated impact from the COVID-19 pandemic on our business and results of operations, as well as on our clients, the healthcare industry generally, and the macroeconomic environment. 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 of our filings with the SEC. Actual results may differ materially from forward-looking statements. The company undertakes no obligations 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 statements included in the earnings release that was just posted to the investor relations portion of our website. Additionally, we will discuss non-GAAP financial performance measures on this conference call. References on this call to profitability are on an adjusted EBITDA basis. Please refer to the tables in our earnings release on the investor relations portion of our website for a reconciliation of these measures to the most directly comparable GAAP financial measures. With that, I'd like to turn the call over to Robert.

Thanks, David. I would like to thank all of you for joining us this afternoon to discuss Definitive Healthcare's second quarter results. Let me start by saying that I'm incredibly excited to lead this terrific company. We're at the early stages of delivering on our mission to transform data, analytics, and expertise into healthcare commercial intelligence, and I believe we are in a great position to generate strong growth at scale for years to come. I'm also thrilled to be able to continue to partner with Jason in his new role as executive chairman. I'm sure we will all continue to benefit from his passion for product development and delivering value to our customers. On today's call, I will review our second quarter results, provide some color on what we are seeing in the market, and discuss several important recent wins before turning it over to Jason to discuss our latest product innovations. We had a solid second quarter, signing significant wins in each of our markets, life sciences, providers, healthcare IT, and diversified, with both new and existing customers. Customer interest in our healthcare commercial intelligence platform remains very high due to the value we can deliver across a variety of use cases, from clinical trials and product development to Salesforce enablement to talent acquisition and many others. Customers are looking for technology that can improve their top and bottom line performance, and Definitive Healthcare is well positioned to deliver on both. This backdrop powered our second quarter financial results. which exceeded the high end of our guidance on both the top and bottom line and demonstrated our ability to deliver strong revenue growth and high profitability. Our total revenue was $54.5 million, which represents a 37% year-over-year growth, and our adjusted EBITDA was $16.3 million, which translates into a 30% margin. This was well ahead of our expectations for the quarter and reflected the timing of investments as well as the inherent scalability of our business model. While our financial results in the quarter were strong, we did begin to see some lengthening of deal cycles towards the end of the quarter. Some prospects in each of our markets instituted additional approval processes or deferred making final decisions due to the uncertainty in the broader economy. This was largely concentrated among new prospects as upsell activity remained strong, and importantly, the deals that have been delayed remain active sales opportunities. In the near term, we think it is prudent to assume these dynamics we saw in the second quarter will persist across the second half of the year. As I mentioned earlier, however, demand generation across all channels remains very healthy, and we feel very good about Definitive Healthcare's continued strong growth prospects. We will continue to benefit from the fact that the healthcare market is not only incredibly durable in all macroeconomic environments, but has continued strong tailwinds, including an aging population, heavy focus on value-based care, and is an industry in the early stages of a digital transformation that plays right into our strength. Plus, we support companies and organizations' growth and sales activities, critical activities where they are most in need of help and most likely to prioritize for external spend. As a result, we remain on track to deliver revenue growth of approximately 34% for the year and to exit the year at or above a 30% adjusted EBITDA margin. I would now like to spend a few minutes discussing how we believe our value proposition will resonate with customers in current market conditions and highlighting several wins from the quarter. At its core, the definitive healthcare platform is built to simplify the complexity of the healthcare ecosystem for any company selling into this $4 trillion market, which is not only the largest segment of the economy, but also the most misunderstood and difficult to navigate. The definitive healthcare platform can help any company looking to sell into the healthcare market make more informed decisions about their business. For example, we help all kinds of companies in various industries, ranging from software to staffing to life sciences, optimize their sales and marketing efforts across the entire spectrum of the healthcare ecosystem. Building an efficient sales organization that targets the complicated healthcare marketplace requires a deep understanding of who are the most important decision makers and the relationships among all the relevant facilities, physicians, and health systems in order to create compelling messaging to drive effective sales and marketing campaigns that maximize precious investment dollars. Our platform does all this quickly and easily. Provider organizations routinely select definitive healthcare to help them influence referral patterns, reduce out-of-network leakage, and ultimately grow market share. Definitive Healthcare provides intelligence around patient populations, provider behavior, and payer behavior to help providers understand where and how to invest capital, understand expansion opportunities, and determine what types of service line changes might be necessary to optimize revenue in a value-based world. Life science companies, in addition to the sales and marketing needs I outlined earlier, must be able to accurately size patient populations, assess market opportunities, and identify the right experts for a specific disease area before undertaking clinical trials that can take years and cost tens or hundreds of millions of dollars. Our platform helps them do all of that. Solving these business needs for customers is especially important in more challenging economic times when investment decisions are more heavily scrutinized and the cost of a failed drug launch or sales campaign can be particularly costly. The definitive healthcare platform is uniquely positioned to solve these and other business challenges for several reasons. The first is our ability to provide a comprehensive view of the entire healthcare ecosystem. Last quarter, I discussed with you how we have amassed nearly 100% coverage of the healthcare market through our sophisticated data ingestion engine, proprietary data research, and extensive use of artificial intelligence. Today, I want to focus on why a comprehensive view is so important to a customer. When companies are selling into the healthcare industry, they need more than a quantitative picture of their target market. To identify the right physicians who can be the best partners and key influencers, organizations need to understand more than practice locations, number of patients, and prescribing history. To be sure that's high-value quantitative data that in many cases only definitive healthcare has, But to truly maximize Salesforce efficiency, these organizations need behavioral data about their provider population and their patient population, including a provider's willingness to try new therapies and whether the policies of their affiliated delivery network permit them to make that decision. At Definitive Healthcare, our algorithms generate these qualitative insights, which we then marry to the quantitative data to generate real commercial intelligence. The second is our SaaS-based platform. In rapidly changing markets, speed and flexibility are paramount. Customers need the right information at their fingertips and need to be able to find that information on their own. It is simply too costly and inefficient to have to wait weeks for an answer from a third-party services organization. With a definitive healthcare platform, customers are able to directly leverage our various data sets and customize their queries immediately as needed. This is critically important in a time when market conditions are evolving quickly and and customers need to ensure they're using the most relevant and up-to-date data when making business decisions. Finally, the breadth and depth of our historical data allows us to respond to customer demand quickly with new insights. Over the last 11 years, we've created a longitudinal view of the healthcare ecosystem that helps our clients understand how this dynamic industry is changing and how they need to adapt their business. For example, We have historical affiliations data to ensure our clients understand how physician loyalty and referral patterns are changing over time. We understand the history of technology infrastructure at hospitals so we can help our clients predict when a change is likely. And we have details on where executives have been so that our clients can understand how to personalize their message to have the greatest impact. These mission-critical questions can only be answered because we have the history to understand the past and therefore better predict the future. And this history of highly proprietary data does not exist anywhere else, creating a competitive moat that continues to deepen over time. I'd now like to spend a few moments reviewing some of our key wins in the quarter. Once again, we saw a good deal of momentum across each of our key customer segments for a growing variety of different use cases. First, we continue to see significant traction across the life sciences market. We sold a multi-year enterprise deal at medical device company manufacturing compression pumps for lymphedema patients. This was a very competitive deal where we displaced the existing data and analytics provider with our Latitude Reporting product that we launched in Q4 of last year. This customer will use definitive healthcare reference data, lab data, and account profiles to improve targeting, account profiles, and competitive analysis. Our recent acquisition of Analytical Wizards continues to perform in the second quarter as well. We won a multi-year upsell deal for Passport Promotional Mix and one of the world's largest independent biotechnology companies. This customer is a longtime user of the Analytical Wizards product suite, and they significantly increased their investment with us in the second quarter by adding seats and functionality to enable quarterly reporting and analysis of their marketing investments, as opposed to the previous reporting set that was delivered annually. Our Monocle product line also continued its track record of success, winning multiple deals within the quarter, including a large deal at a leading global biotech in the oncology space. This company is launching a new key compound, and they had an immediate need for key opinion leader data in the Asia Pacific region. They selected Monocle because of the depth of our expert data, our medical liaison-driven approach, and the fact that we'll be able to offer them access to experts around the globe as they move beyond their initial APAC launch to other global regions. In addition to our success in the life sciences space, we had our usual wide spectrum of deals in a variety of industries. Healthcare staffing and recruiting continue to be a strong market for us, with both growth in new logos and expansion with existing clients. We also saw multiple wins at both national and state-level insurance companies, who plan to use our physician and physician group data to strengthen their provider networks. In the provider market, we had several significant wins, including a three-year deal at a managed services organization that will utilize our platform to help build out its ambulatory network for outpatient cardiac surgeries. In our diversified segment, we had wins ranging from the world's leader in electronic signatures and agreements to the largest specialty distributor of rehabilitation and sports medicine products in the United States to one of the world's largest coffee retailers, which wants to use definitive health care to target hospitals for both its food service business and to put coffee shops in their lobbies. These are great examples of the value we are delivering to both new and existing customers today and will continue to do for years to come. I'd now like to turn the call over to Jason to review some of our recent product innovations and takeaways from our user conference, Definitive Live, that we hosted during the quarter.