Definitive Healthcare Corp. reported a slight increase in revenue for the fiscal year ending December 31, 2024, totaling $252.2 million, up from $251.4 million in 2023. The company derived approximately 97% of its revenue from subscription services, with a notable increase of $17.1 million in revenue from new customers, which was partially offset by a $16.3 million decline in revenue from existing customers. The net loss for the year was $591.4 million, a significant increase from the $289.6 million loss reported in the previous year, primarily due to goodwill impairment charges of $688.9 million, reflecting a decline in the company's market capitalization.
In terms of operational metrics, Definitive Healthcare's total customer count decreased to approximately 2,500 as of December 31, 2024, down from about 2,750 in the previous year. This decline was attributed to higher churn rates among smaller customers, particularly in the Life Sciences sector, amid challenging macroeconomic conditions. The company's Net Dollar Retention (NDR) rate for Enterprise Customers fell to 90%, down from 96% in 2023, indicating a decrease in revenue growth from existing customers.
Strategically, Definitive Healthcare has made significant acquisitions, including the purchase of Populi, Inc. for $54.1 million in July 2023, and the acquisition of Carevoyance for $13.7 million in January 2024. These acquisitions are intended to enhance the company's data analytics capabilities and expand its market presence. However, the company has also faced challenges in its sales execution, leading to disruptions in customer acquisition and upselling efforts, which have been exacerbated by macroeconomic headwinds.
Looking ahead, Definitive Healthcare anticipates a decline in revenue for 2025 compared to 2024, as the company continues to navigate a complex market environment characterized by longer deal cycles and increased customer churn. The company has implemented restructuring plans aimed at reducing operating costs and improving margins, which included a workforce reduction of approximately 150 employees. Despite these efforts, the ongoing economic challenges and changes in the healthcare claims data market may continue to impact the company's financial performance and growth trajectory.
About Definitive Healthcare Corp.
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