Definitive Healthcare (DH) 28 Feb 242023 Q4 Earnings call transcript

Welcome to Definitive Healthcare's Q4 2023 Earnings Call.

Our host for today's call is Jason Krantz. [Operator Instructions] I would now like to turn the call over to your host, Mr. Krantz, you may begin.

Good afternoon, and thank you for joining us today to review Definitive Healthcare's financial results.

call CEO; Jason CFO. and the Chairman Founder, on Interim and Rick me today Krantz, are Executive Joining Booth, our

this solutions, to impacts our guidance, and on harbor customers made macroeconomic shareholders make generally. our limited will of for Litigation the use anticipated benefits results and global performance call, the provisions of on the clients including, healthcare Any value Securities opportunities, position, Private During not the Reform business our commercial safe our generating customer the our pursuant to but and intelligence are and forward-looking growth conditions of and financial to, Act competitive industry market planned of solutions, our forward-looking statements, and statements related our of healthcare XXXX. investments, and our future statements we behaviors

and results a law. the SEC. our update involve Actual of revise Risk number company except may statements. or materially to events arise call, undertakes no section any by The that statements filings as and Factors this in obligation after reflect Forward-looking including in to may any from elsewhere conference risks statements required those forward-looking forward-looking discussed the differ with uncertainties,

cautionary For in we the have our information, the of statement just Investor refer more to earnings please the website. posted in included release that Relations portion

measures conference a release GAAP Please measures call. for measure. financial this their these refer tables on our discuss Investor the directly on earnings to non-GAAP Relations in of comparable the Additionally, our we portion financial will reconciliation most website to of

over call the turn Jason. to like I'd that, With to

Healthcare's financial Quarter afternoon of you results. and to to Full thanks review joining for And XXXX all us Matt. Year this Fourth Definitive Thanks,

energized to plays Definitive excited ecosystem, unique by to data thousands a the providing healthcare commercialize basis. and capitalize Definitive healthcare once effectively am saying Healthcare's upon the and Healthcare in to again help Definitive that significant as Let and complex me on with role market. differentiated companies the large the I an begin in interim CEO back help of analytics be opportunity. them more I'm

I position our review call, stage growth. will for we XXXX our the as Definitive today's On an quarter overview next overall, Healthcare fourth and performance future of our results, provide discuss for of

the total was year-over-year growth, adjusted million, For margin. representing million, $XX.X fourth was our a quarter, revenue $XX.X X% and EBITDA XX%

was For $XXX.X was year-over-year revenue million, and XX% the growth, year, full adjusted million, representing total a XX% $XX.X EBITDA margin.

our with pleased are performance We quarter. the during

we year growth to and EBITDA margin macro in that at We the beginning the delivered of adjusted difficult continued guided environment XX% we the a to full show upon year.

Our in business, benefits made a customer we we and to with investments meaningful into to see a messaging clients use This important markets, to invest XXXX, across exhibited increase products remained problems. our of Definitive view of to the sales in uncertainty strong that They serve. late to products. most targeted key we for to those XXXX, But in, we Positively, experience we up most to our quarter, to leading Healthcare our cycles the critical important in XXXX. the of during retention quarter delivery their analyze to fourth of deliver what commercialization showed some in top with data right continue expect our the product the demand longer how makers. decision and prospects markets continue and trends in as continue who are the as trend began results, the which consistent funnel markets the solving

XX quarter must-haves adding success during enterprise our that our clients essential Additionally, demonstrates in these for data are and new customers. the products

allocating will for expansion, for total a from resources have we discuss most a ARR, opportunity and higher forward. at ago. segment XX% to going of are and the I year this up renew which clients, attention more enterprise our account even XX% later our now how Importantly, rate

including pressure sciences, year. to marketing limited entire during their end treat our of customer life key market wins medical life biopharma almost opinion sciences which challenging treatment affairs the and had remained patients our with half adjust under support across teams remained number therapies customer combination ARR network options an the a liver changing new of and company as lower impacted platform churn elevated perspective, continue market focused The exciting launch up Jersey-based the of in dynamics. to and that industry financing expansions these impact therapy Despite this, of for help quarter, the their the patients end with a market environment oncology during on organizations selected makes grow a leader the in to New cancer. From of a Monocl to we of

create U.S. the medtech, the and plans This company marketing we utilize identifying individual robotics within and opportunities a for in plan center, Swiss physician a on products targeting on valuable surgery. Additionally, to is platform hospital which focused market, to minimally the signed their company, surgery across entering our game and invasive sales most by organization for our market.

markets created existing ability which believe resulted dynamic this Within market, reduction across similar on as as shortages. a of which I business. needs ARR, acquisition of in the Populi new immediate an accounts of to COVID for in our than impact more churn. to talk and we XX% large saw to has has solution customer have deal about and both this XXXX, this to improved a complex our staffing expand from later. on the entire greater Based our other as will the meet well Populi our recover we had provider will significant now started by this more plan market success, we with customers The impact challenges velocity conditions end market, in our and

help them this physician markets, analyzing procedure and win referral build to in segment platform largest Massachusetts, utilization. their the by our and integrated volumes service key X physician new systems of patterns in network A in their included Populi line not-for-profit selected that diagnoses healthcare

our and great of leverage variety for services selected quarter to Healthcare customers comprised complex them out win about their XX% This multi-trillion Finally, during Definitive example sell industries a healthcare the must-have market Healthcare market that map which leader clients' of Definitive that dollar customers, diversified is into a a in market. opportunities. commercial as performed this our ARR, across An estate a well effectively global XXXX. was account of to goods in real order in help their of

our their we our integrated reinforces integrating into workflow. they're that Snowflake Additionally, instance, last our goal clients' year is launched that becoming integration heavily into partnership data an which of

with We to adjusted ability increase margins EBITDA the quarter. also our pleased were during

us XXX During deliver efforts XXXX EBITDA took efficiency. expected on adjusted to manage of drive goal full year XXXX. help proactive EBITDA beginning XX%, expenses our margin the into and these will of an increase increase actions of and benefits adjusted we in allowed and basis These margin XXXX, the point to actions in

efforts Importantly, also however, throughout attractive our invest the are reduction to us the our most in intended room to growth year give business. for cost opportunities

made us all we and organizational announcement As profitability changes, for we part set up of the made in growth. several long-term believe of which January, restructuring we

and allow amongst our overlays direct important These streamlined by by enterprise we to team. reducing will to creating increase First, sales clients. us go-to-market accountability more productivity our allocating changes team our resources go-to-market most more

relationships, these of clients enterprise fully the from offering to in allocation Additionally, will ensure to our build research more us allow shift organizations to and benefit direct our product development our provide efforts. feedback deeper entirety

more on believe impact have our business. science. Second, resources an areas the dedicated most resources includes intelligence we to immediate platform our artificial we reallocated and organization and can within investment to in our analytics product This data claims

we data in science region, our leverage tremendous and to in biopharma, investment Finally, office have Bengaluru engineering. in increased and particularly talent expertise that our

innovate. result we We impact speed savings only investment over will time, expect in able but this will are which not the at cost also to

believe that decision create to to cost to us we the restructure made, areas. the we is investment sustainable highest changes opportunity allocate free have structure the dollars long-term up difficult, always and more a While

by they us be we deep growth to is year the been digging can the As to last the will commercialization which have how XX achieve into for further our we XXXX turn for that on and future, customers focused years. innovation, turning success a help

build product to foundation powerful on differentiated products subject our deep our and and matter that XXXX evolve will offerings our flywheel meet of needs solid innovation data, of customers. flexible expertise, and our work enables rapid feed changing which proprietary pace and to analytical a in complex Our of of all at the

will the asset. on X following we our First, in to areas: proprietary In data core invest are and heavily continue XXXX, focused we

breadth We expanding focus and will continue as data well on depth quality as improving the of our data. to

data new as examples independent centers. management and well in and include as cancer and as investment Some such provider service analytics affiliations, specific infusion associations, organizations on nonstandard

on claims get use as see with our on this expansion our acquiring to to will This all we of in we analytics able look are to second here expand have and believe and visualization workflow half our more this our solutions solution in Populi to Since and this platform of provider and metrics. customers. tremendous enhanced early we attrition July technology we of into been strengthen reduce markets. and new physician opportunity seen XXXX, Second, lower a With launch in rapid business. networks. expansion the valuable expanding our platform, in will sciences impact platform this measurable their by serve they leakage have build We end their success markets, have leveraging our diversified the of life churn clients' deliver that XXXX,

science we'll Third, data insights to for in AI more clients. to and drive continue invest our

we been since founded, our continuation which here, efficient are by automating X First, data we become on areas: we science work that key Our our using science in work. concentrated to have more across the AI is were of organization is a data deep and focused

data and to AI. using new insights Second, we continue derive

understand impact proxy be that event layer entire and presentations data new new unique geographic the proprietary on influence as create found ability ecosystem include examples of a score AI of Our activity intelligence gives scientific the a new providers on scientific cannot patients to where come such A their to this us that few the from elsewhere. publications. help and to measures healthcare

we are front Thirdly, more our quickly. we ways into to can overlay intelligence in this with and data our customers explore which users our leverage technology collaborating end our help to

from to completed platform purchasing facilities another we and product technology benefit identify and acquisition, device. marketing software is most teams after in Finally, the utilized medical by line the Carevoyance sales year-end, that Carevoyance their can HX. just physicians from a or medtech

this being revenue that This meaningful more drive are can interactions standpoint, with segment in it excited provides leverage quickly executives. hospital solution of medtech illustrates our Early acquisition into is end Dataset already and purpose-built for physicians has workflow is with the a we been of that our our value to overall response is valuable integrated from with positive platform. software that our being assets clients While markets. needs our data the the and sold Atlas by small a commercial team our product and client is combining best-in-class

remain Additionally, retention. focused in customer XXXX, will keenly we on

putting initiatives such our the Populi the analytics and churn. believe product core we we discussed, As claims enhancing are asset of our data platform in reduced will expanding place use as in result

will to the we year a our as last and impact our came also However, to improving started service we began continue that churn delivery year work metrics positively close. efforts of the

We is is compete more complex with dynamic that The Healthcare than and a Definitive market future bright. TAM $XX and billion a of growing. in

with unique and healthcare. we how powerful problems, and be leveraged of in proprietary extraordinarily data that can combination analytics a products talented innovates along workforce that an client and data solve assets redefines constantly and have have mission-critical We

through me the let walk turn over to numbers. call the that, Rick With Rick? to

our a with I'll remarks, and a noted. guidance with be start QX non-GAAP unless discussing before QX will full detailed year In on of results I all otherwise basis Jason. Thanks, for finishing XXXX. review our our my results

delivering and to range. We despite quarter, us as both results economic expect efforts the within what advance both we for delivered control, remain innovation were the market our conditions to position to continue operate which we solid while and for EBITDA efficiently of clients, challenging can adjusted our the more We revenue guided focused recovers. on well

of growth year. X% the and generated XX%. XX% growth cash the include: flow, And our XXXX margins for revenue to EBITDA million QX for EBITDA quarter Highlights compared XXXX the year. was for full the And year XXXX. XX% margin free revenue XX% up and is the XXXX, adjusted full for plus which adjusted $XX.X we versus revenue growth unlevered

amount This work quarter full and as more our prior Turning year large the most organic forma clients of in the our Revenue fourth their in in to engage quarter $X.X up guidance. growth from in the revenue year. $XX.X and fourth X% in results challenging X% issues professional year. Pro quarter detail. the services includes for with line as was XX% of prior was the million, us to on for million some

We quarter with This increase ARR. customers or XXX as XX we define $XXX,XXX year-over-year. X% enterprise the which of ended in with enterprise at customers, customers nearly was least an

represent these and the go-to-market are a majority our key of focus reminder, customers a ARR As programs. of our

customer Our customers which was X,XXX end from have impacted conditions. count, by of the smaller total smaller down QX disproportionately about just been at includes QX, current customers, over XXXX. XXX The

overall. customers Net dollar enterprise retention for was and XX% XX% for XXXX

payoff service, and the XXXX these we these specifically year-end Although enhanced are from from actions adjustments. targeted to in declines began were customer many for see suggestions analytics of to data, and our XXXX,

XXX basis of improvement XXX We expect year-end. XXXX at points in least by overall to NDR

up was we of the whom both million, due data XXXX, the XX.X%, basis Gross Populi, late to well impact sources points XXXX. of introduced acquired the of QX Gross quarter X% impact in from as fourth decreased XXXX. as earlier margin, of QX profit in XXX the we $XX.X XXXX from incremental

gross XXXX this with to year fairly consistent full of the quarter expect be margin We fourth year.

and activities and as the of revenue, sales And with marketing down drive was percentage $XX.X fourth marketing, return the sales XXXX. changes quarter on on a the from and from year-over-year decrease XXX XX% revenue, basis of efficiencies Sales X% XXXX. over highest reflects was markets points The in have the marketing we down expense made expense focusing QX of investment. million, to and

the continue marketing basis to that from sales quarter in us XXX expect throughout sales to in efficiency leverage points to the We to XXXX, operating to see and and fourth build of XXXX relative improvement of XXX year. for

of Product X% XXXX. quarter million, from was development up $X expense the fourth

multiple in revenue, a highly XX% using on way XXXX. We data and of sets of we we in customers. development these our for or road existing revenue, examples believe on multiple expenses our product percentage is a efficient continue long-term and consistent enhance with of were invest some product us the increase opportunities to investing will As value to map. quarter fourth products touched of the the we earlier, identified launch to deliver our to effective and Jason platform have

with revenue year We XXXX XXX a operating expect to product be points which full implies as QX to the XXXX, XXXX year full of basis up development leverage of percentage to year. fairly consistent relative building throughout

quarter G&A from $X.X fourth was XXXX. expense million, X% the up of

G&A a As of year. last XX% were is percentage of revenue, which to revenue, flat expenses about

operating percentage XXX to and G&A for year efficiency to XXXX, revenue expect XXX as a well. as basis leverage in points throughout in build improvement of of We in the that

from income of up XX% operating XXXX. fourth $XX.X Adjusted was million, the quarter

sales fourth primarily efficiencies discussed was previously. in marketing, and versus As increase up to The the XX% a bps of I revenue, percentage of was income XXXX. margin year-over-year operating of due XX quarter revenue, as

EBITDA XXXX. million, from $XX.X XX% was Adjusted QX increase

adjusted percentage QX nearly EBITDA up points from of of was XX% of revenue, XXXX. As XXX revenue, a basis

through to continue our adjusted XXXX, in move EBITDA margin. year-over-year see we we As to expect improvements

We efficiency the into throughout expect income reinvest per taken year. million the that $X.XX the QX reallocate XXX.X on Taking to can above, based outstanding. and we which to $XX.X share shares in million growth. was actions continue optimize of or weighted would Adjusted discussed expect margins we in to average build account investments yield effects on look EBITDA timing net diluted some to for we the areas we've

ago. flows to free billing trailing XX% on provide Turning comparable flows basis, Healthcare's CapEx were on flow, substantial upfront Operating period focus the XX-month Definitive $XX.X generation. to due in trailing XX-month cash flow cash year seasonality. a million cash $XX.X We cash requirements low margins, and million up from high a

Unlevered on free $XX.X our XX% flow on a of ago. the XX% trailing XX-month comparable a up revenue basis, was cash converting of cash. flow period TTM EBITDA into $XX.X cash was effectively million year TTM adjusted basis, XX% from free Unlevered of a million

short-term the inorganic strong in well EBITDA organic to we only the On with of with $XXX and both that debt. ended million We quarter growth initiatives. positioned are profitability and balance adjusted we cash believe investments million $XXX sheet, and fund

Current million revenue I'll and performance flat year-over-year, revenue of more $XX.X that expected, X% in say obligations deferred were year-over-year. and revenue guidance. was and have cRPO about up to down year-over-year. Note total million more revenue, [ were slowly $XXX obligations of performance than Deferred grew X% as that ] revenue

macroeconomic extend first to Moving guidance as well. QX. assume now current to the believe it's to for through We prudent continue quarter conditions that

million we diluted a is adjusted $XX.X EBITDA margin. would $XX XX%, $XX $XX EBITDA for be $XX shares the And in finally, million for XXX.X net rate income of income operating share QX, in growth $XX million $X.XX total range the adjusted to to per this case, to XX% to $X.XX million, of to of the million a were range range million expect to revenue of average range in of adjusted to on million in Assuming adjusted $XX reported the the $XX.X outstanding. revenue weighted in million to million XX% X%

to For the along growth our the worth to expect rate. year of we conditions, noting half. a the do as current first $XXX with that we to given few move in quarters Populi we X% the year, It's the million $XXX million continue XXXX, of the revenue through X% to revenue full acquisition or growth of moderate anniversary rate expect second economic

expected revenue growth comment here growth on earlier. believe growth expected revenue versus reasons. We our for the of X understates cRPO in I'd mentioned of X% growth like to pause cRPO X% to

do been contracts, clauses would up cRPO. up which means have have their contracts, Without X% in cRPO customers not some show discretionary year-over-year. they opt-out in that First, these

and improved revenue quarter growth and we services which XXXX. January late saw we growth through work, that X%. is to to in And bridge transactional grow our expect the to in from gap in included we cRPO cRPO. the renewal of expected Second, changes these and and fourth X third, continue for Overall, fully retention in expect X% not

careful to As revenue will and we in When way the to growth it reinvest growth, we XXXX, attractive we'll in to ensure ensuring on margins. we eye also drive possible. we continue most to see try keep efficient upside, operating while efficiency deliver as cost efficient deliver a

million. Following EBITDA this margin million XX% between strategy, to be expected to million are year adjusted between and for operating to outstanding. million weighted and $XX expected $XX a $XX expected $XX be $X.XX per full shares is diluted $XX income XX%. to to Adjusted Adjusted net between expected $X.XX be is income to and of is share be million million. on XXX.X $XX average Earnings million,

Our efficiency view of reflects macro balanced demonstrated our adapt and year, clients' for to driving to and focused for future. the to tougher XXXX guidance the backup, our investing on today needs meet a ability

profitability positioned believe support long in for So another Definitive to leadership innovation long We large believe XXXX a for that We well and predictable and margin that profile organic our have to summarize. term and acquisitions. added for growth, will to we improve took the meaningful of strategic was several we high levels through platform because market attractive developed our position Healthcare. a solid clear capital capabilities actions term. efficiency year we revenue the and are

Jason hand closing I'll with it few a for that, we take to And before back questions. thoughts

of patients our been externally quality important by thank Definitive is continue row want I'm our our customers Leaders. I look questions, and the to to the worldwide. up our down Boston to the for bring we help second work a of all Market helping together it impact doing teams and we customers the our devices life-saving are therapies system platform and proud and costs, to driving their support open The that incredibly and and healthcare have commitment we of Middle on marketplace, Journal as Business for new the transform of customers recognized as I year X in their Healthcare. employees by to increasing Before have

year Employer we Services continue receive for are our Place category also to Silver and as the India In strong also recognition office Health Work the workplace to the Products in our QX, the received Year for and of recognized Best in a a We second row. of and culture. Stevie in Award

to would that, like it questions. With you. I open for up Thank

our Barclays. first today And Davis with question from Instructions] comes [Operator Stephanie

a client to you ton year, of where Can level a number the it products have organic. follow-up mentioned inorganic this seen client Do to you're see. that churn you new both greatest you attrition? book for through interest? the what some solutions you could how renewing Jason, any more in the of the and as walk improve mentioned And that, viewing opportunities initial per of us near-term compared of color client you your on you've

Yes.

the So question, it. I thanks appreciate Stephanie. for

-- of impact think that about shortish the year, we're most term this have near-term be platform. to you excited is launching, terms In going products about are we're that as in that our to claims going X analytics the

how of this the bought clinical your market trial as expansion visualizations that resources standpoint thinking These to part solve. analytics that how invest physicians standpoint. is to how to we a from specific problems grow allows us or that solve to to our geographic very create to they're allow size So about a to specific looking or as their clients identify like you're that acquisition are platform network Populi in from things a

saw -- needs reduce saw in providers an as we're we to immediate to well more almost -- churn sales this to inflect we the as meet we were specific their So in better before. after when acquisition, ability we expansion way to rolled a than our out able impact as

to expanding be the HX. to very our the of we clients, that So in that of -- beginning probably rest are going

clients, value and and quickly meet and our impact our in ability deliver again, clients more to, quickly will that to we our have clients. expanded be a to expect needs So our life for those similar sciences diversified more

seeing outages probably to some outages healthcare puts for recent opportunities for analytics and analytics bids in side any recent that up you out solutions. Are Following competitive market? as an things, the change of you go data opportunity there the on

it's think the to in happening what things I is change that we're what that can control. now. going focused the from be to things all too going are say early -- impact What the right we what is of impact -- that is on to

to So that value have make deliver our a we then the we're important quickest to of looking the sure that articulate that for. and the continuing dollars sure are are our put investment in that able our we and to value and we for our customers type making see most products time go-to-market team that customers that's vision

And our next question with Stanley. comes Hettenbach from Morgan Craig

you On that's also, And as share retention January, kind then back the quarter on gives the the of late end that color you right comments or and what there the else of the through customers? into by of terms into move anything you year? is market in improved confidence can trend

the part. in really and was entire the mentioned, X believe we we that it most driving quarter, the as later was base impact things that. key were across We for The customer saw, there that

of in all analytics. for of focused second claims clients the we The products, our specifically improve how of a first half we lot the the was our deliverability year, spent on do of really our effort

and focus drive improve that was And can service So that we those clients. how a of deliverability additional for big ours.

effect. So that had immediate

about them talked The help the new analytics to more provide and with a claims which was expressed Populi was impact of which we've provider visualizations productized in how second, market new our platform more I market specifically. the

how into about high think this all the we in service, made that will investments into XXXX. as translates XXXX, that data, high high-quality all So touch, continue we

offering benefit out seeing And Our churn to in just are impact we that expand year. question, also of I then roll the the Stephanie's and product half as the mentioned second that. should clients of that the

at in maybe as coming you're you then a margin? year what here and of change with touch back the you basis, Can strategy growth. mentioned And you're Jason, the a just follow-up, interim just this is the tweaking on CEO and just recent

Yes.

think, I in about a it. it's beginning you it, change the as mindset start just as of

and set a our XXXX, important it year for to and create to ourselves structure had up, long-term profitability, like So cost foundation so as which been how has you on work think just things us. we do about was out to where growth always figure that

product the mindset more we're of go need different are investments that that to of going growth. drive row, We're a is So impact this year to about on much just the make thinking front to our with we what the we're type clients. our have

largest talked we restructuring clients that impact designed expansion, most about had we also put a restructuring on and little resources to That force. more had our we more bit opportunity in sales the for And churn really is the did enterprise that our think lower the rate.

all solve the be their organization. it's all and areas or different of number problems order a will the those of product in -- to clients, that functions we to across all serve So therapeutic market about innovation what can bring vast the to

where we for that get is how focused -- So now expand do that's how innovate, solve cases right how them. we're we meet clients' do really needs, use we do the we

move Jones we'll to Craig next with Stifel. And

you thinking it that metrics to you of just some And you're client year? going say I'm end the give of way wondering those then I XXX, improve was by annually. XXX of by thinking basis if there's a the any Did size, about how retention. points about was breakdown the kind to So give

improvement. Yes. it we XXX fourth point expect basis We we reported roughly next our and to basis XXX NDR quarter would on in see call, but an would annual

Okay.

that, to like or saying... just December like you're say, So something year-over-year, not December but

disclosure. an It's annual

trend groups. finely So comment it an effectively through that And the December. it's to out December the do if different is between from We is but we that we more disclosure. go see industry annual we don't break year, something as

Populi on how And you well? And as much the acquisition, much revenue expect from that? then the from do how then

guidance tuck-in small our considered acquisitions very fully material. in very, Both are and

Our question MacDonald will next Needham from with & Ryan come Company.

This for is on Matt Shea Ryan.

So say, closer XX% it XX%. ARR that seems an from number outperformance like area has historical the up with of been XX% to, levels being were diversified segment the or

say do XXXX And so this insulated to been be the been think fair outlook? to then why the do end Or growth it macro? how from to it So meaningful that expect the has you segment market is this durable? more contributions has from you

me Let just clarify.

roughly I the X we we're verticals X broke diversified think XX% X IPO you're comparing IT. customer against together, those verticals the X we of groupings, which markets. Adding and of into it way and is emphasize made that in now, to our disclosures was where the which that's was which about talking software in the biggest

in and lumping Our single sciences XX%. largest calling roughly to into which life what is largest rest next provider, in we're our and the is TAM is diversified, we're

been Now a within for XX%. has with that, performing segment the didn't good versus to but want confuse I you XX% us, it

That's But clarification. talked guess in late last about the see improvement in you and should strategy customers. the in nice that mitigate a help is QX the quarter recapture to to for who retention churn. January churn pivoting I helpful have, those

if you're year, could how And peer are expectations any? incorporating kind upside? an provide the curious you then win into like Just is update what going? on just Or of if those efforts that back

Yes.

won We have back always customers.

for think new So year. this I of I of that don't think that would as outsized there's anything sort

amount with And that customer have these that especially problems we will -- to making We out any that of heavy that factored having XXXX, due a in a a the was if for it's we future. conversation sure back of versus of and our and likely to we go on are them. up much to an predict value We have effort tremendous of believe many go Definitive, on are get so we churns happen some all solid is a it budget back effort XXXX come. that We that we people in little continue of upside XXXX the and be going into and we'll to beyond, that to some how work in to believe hard it's sign but years guidance. us within

Bank to next move America. Allen with We'll of Lutz

we it's I to trying growth for opt-out the growth. little I'm cRPO we where think into less cRPO about X% Rick, back revenue If should X% as XXXX. and back bit exceed growth why that X% revenue to out, things to XXXX, than a causes, that you're should guiding remains at called effectively guess was you transaction cRPOs XXXX? services different revenue that, to just we included, growth trying any look X% of cRPO from growth X% how that point here? you if this, to at is to -- should that And how reporting assume were not than X% that much renewals, improved of in look

We've No. that going a things got couple of on. are

look early those in we particularly have you clauses in at out back, acquisition. when the end come had disproportionately XXXX, further XXXX or fewer through of So

contracts. inherited we So

helps We a that last called people mile realizing to marketing revenue complete target now we also which actually person. are the -- from some of activations, delivering product

in that came the guidance. our came provider have Carevoyance now. -- And through right We XXXX, at the in then in contemplated of acquisition That's is early final is that in and new Populi. that

quickly been touch to valuations a wanted Has you you any XXXX. on at I acquired mentioned then And there look these company assets, M&A. as you in some change in of early

or X X there seeing out a Just of maybe trying to what months ago? versus get you're sense

level, But at by the more of back last the are cases where high prices either and reasonable we focus think does I assets finding on this year. software buying a and as to We're ecosystem more on tremendous assets leverage types the it data think tuck-in very, A+ at our can seem vary bring more The going continue I call data coming of very more attention well. new we they're a to although innovations. can going over to into earnings other or price. -- use coming those in we into definitely to market, last be opportunities a the there's like commented still amount

it So are but right in the it quite direction, not believe it's a be We prices we'd where to focus going ours. probably of continue will like to be still.

[Operator We'll our take Jared Instructions] Blair. Haase from next with question William

north Maybe XXX to year. the the dynamics just XXXX, looking little sort bit, longer got basis of points hear of is a frame what but about way would impacting this how taking be of here to you've curious a a you back think implied step one-off comparison just of kind XXXX, expansion lot term. beyond margin in Obviously, right

So of margin it some story. to you great expansion frame context as would just the kind would be hear to multiyear how

value and pointing and asking that We both profitability. question. the Thanks growth out for

expect appropriate the of order expand, seriously. continue take both in shareholder model, margins we form seriously. we given it's something the reinvest not long-term I where would to quantify ready So value. to to will continue we our see that And just to drive to but time, in Over a take dynamism, current we very

maybe, for And Jason, then you.

looks of that funnel points sort little XXXX? able to offer. products for if the just I any that bit contrast demand share? the you're way and Any of strong able you you're kind you're further, services of going to unpack the seeing prepared you mentioned and And a that maybe remarks what to think in compare data of additional top maybe like sort into

in demand strong had as well. XXXX We

So it's demand. the a continuation strong I of funnel top think of

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from Peterson come with will question next Your James. Brian Raymond

on John McCary is This Brian. for

impact you for potential addressable know slightly of So that curious kind demand environment? market seeing call that we've now frame the lower But would from just X competitors seen variables some of starts. the you're impact only And if that's in out could study many I Definitive. what right

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other out competitors, like lower starts. whether some or seen be IQVIA some there study that just names we've So discussing

your demand what on Just having curious environment? that may impact be

short-term impact to That do. -- on what should have no medium-term short- we

sell X what did stage, within is a been churn biotechs core So with that we've from and and this market we it particular, about -- impact globally. in a clients business Phase on makes of small the perspective, up not start us part year. an do. of we in that our the tend have earlier struggling they're overall, really impact small once bit and do the biotech the That's of -- this pharma part market the we don't But talked to to little the a really We that and forward.

about concerned it. So we're not very

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come will with our And Instructions] Deutsche Bank. next [Operator from George Hill question

you, interested know and the we're return biotech then life I an ask sciences a space, for come you and you into -- guess, I'd what start of Jason, I of looks have in the the back. to in Rick. saw like sciences uptick in And -- January, pipeline said So to capital like QX markets. follow-up the the the given first that in will I'd retention is life for question but fundraisings be see X starting I

think biggest The that's life markets all is overall. our the of our pipeline -- TAM across of sciences, demand the top funnel strong. We

on we restructuring put of some have in clients. resources our more So efforts, enterprise our

a As they our all cover mentioned, group, although I different life we of of markets are the do within that those lot sciences cover.

and We and diversified have of course, provider, enterprise as clients well.

will And we're benefit towards then short term. over life as the about, lot talked sciences and be that product a to weighted investments medium should of making, the that heavily we've

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lot us. area is of that in driving life of a the excitement all sciences So for

a per the kind I guess guess, retention help like, dollar you with slide points. square to the we're is kind perspective. I'm That's of base. erosion helpful. And on staying retention of of clients which that of mix continued XX of customer is I is like client data what I guess, -- deck, more they just average can net trying seeing me in Slide to that continue down we're the square shows kind from the those are an the Rick, kind commentary kind dollars of my across follow-up

question. It's great a

the early So we're part that remember a strong talked presenting rebound. and that churn annual, we leaving we NDRs in about increasing of saw the are the QX year,

gives that that be that operating the But late month time confidence the year. lot we've of continue tied XXXX year. we in was drive that, it note. you and spent that's to to will making we've That offset the us that first able of given changes declines too to as So to of through continue that into seen that the the move we rest a

next slide we're see when this So go expect at up. numbers probably this we those should looking time year, to

Exactly. Yes.

closing It to for to conference back like this Instructions] moderators we our [Operator at or additional any the questions remarks. further appears time. have no I'd turn

to thank a taking us questions to to want ]. time listen just ask [ it. I once everyone again We appreciate and really Well, thoughtful for the

excited opportunity growing and to data, talented workforce take ahead earlier, extraordinarily of mentioned market. products, and incredibly I huge an the As us. a we of We the we're about believe advantage have

once you great night, Have it. again. thank So appreciate a everyone. We

for call. This attending. conference Thank today's you concludes