Definitive Healthcare (DH) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Company evolution and market overview

• Specializes in healthcare commercial intelligence, targeting a $10B TAM with a focus on commercial rather than clinical data.

• Life sciences represent 60% of the TAM, with hospital providers and diversified industries making up the rest.

• Recent years saw industry contraction in life sciences due to funding and interest rates, but early signs of recovery are emerging.

• Achieved 5% growth and 33% adjusted EBITDA last quarter, positioning near Rule of 40.

Leadership and strategic direction

• New CEO Kevin Coop brings a product-first, customer-obsessed approach, increasing execution pace.

• Early milestones include focus on customer engagement, tuck-in acquisitions, and new partnerships.

• Improving churn and cRPO are key short-term performance indicators.

Sales organization and enterprise focus

• Major sales reorganization in January reallocated prospects and customers, aiming for better coverage and upsell.

• Emphasis on enterprise accounts has led to more stable churn and increased upsell opportunities.

• Sales cycles for enterprise deals now typically run six to nine months.