Definitive Healthcare Reports Financial Results for Third Quarter Fiscal Year 2021

Nov 08, 2021

Third quarter revenue grew 43% year-over-year to $43.1 million

FRAMINGHAM, Mass., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Definitive Healthcare Corp. (“Definitive Healthcare”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter ended September 30, 2021.

Third Quarter 2021 Financial and Other Recent Highlights:

Financial Highlights:

  • Revenue was $43.1 million, an increase of 43% from $30.1 million in Q3 2020.

  • GAAP Net loss was $(21.0) million, or 49% of revenue, compared to $10.0 million, or 33% of revenue in Q3 2020.

  • Adjusted Net Income was $2.2 million, compared to $5.1 million in Q3 2020.

  • Adjusted EBITDA was $14.4 million, or 33% of revenue, compared to $14.5 million, or 48% of revenue in Q3 2020.

  • Cash flow from operations was ($0.9) million in the quarter or -2% of revenue. For the trailing twelve-month period, cash flow from operations was $29.7 million, or 19% of revenue.

  • Unlevered free cash flow was $11.5 million in the quarter, or 27% of revenue. For the trailing twelve-month period, unlevered free cash flow was $59.1 million, or 38% of revenue.

“I am extremely pleased with our performance in our first quarter as a public company,” said Jason Krantz, founder and CEO of Definitive Healthcare. “We saw strong revenue growth and continued to produce exceptional results. Our strength was broad-based across all of our segments, and we continue to innovate to build the next generation of healthcare commercial intelligence solutions. I want to thank all of our employees who have worked so diligently to help our customers create new paths to commercial success in the healthcare market.”

Recent Business and Operating Highlights:

  • Definitive Healthcare successfully completed its initial public offering in September after selling 17,888,888 shares at a price of $27.00 per share, for aggregate gross proceeds of approximately $483 million.

  • The company ended the quarter with 377 customers with $100,000 or greater in annual recurring revenue, a 49% increase from 252 in Q3 2020.  
  • During the third quarter, the company brought on multiple new customers including:

    • A large pharmaceutical technology company, who plans to use Definitive Healthcare commercial intelligence on executives, affiliations, procedure volumes, and doctors to accelerate its push into the hospital and IDN market for a new drug delivery implantable device.

    • A market leader in the EHR market, who plans to use the Definitive Healthcare platform to identify which practices are using its competition’s software, understand usage data including hospital bed counts and clinical metrics, and gain insight into the nature of the practices’ patients using claims data.

    • One of the world’s leading venture capital firms, who will use Definitive Healthcare commercial intelligence to help them size and evaluate the market for potential investments in the healthcare space.

    • One of the world’s largest global logistics providers, who subscribed to the Definitive Healthcare platform to help validate location and address data to ensure accurate package delivery to physicians and other healthcare providers.
  • The company continues to deliver product innovations in response to customer demand. Some of these recent innovations include:
    • An expansion of the PhysicianView product to include new intelligence around physician specialties, which allows clients to precisely target healthcare providers based on specific areas of focus. Users can now leverage claims-based specialty data to identify individual physicians, which means companies can sharpen their sales strategies with a better picture of their audience.
    • An expansion of the HospitalView product to include new intelligence around organization charts. This new feature enables users to easily map out a hospital’s different departments and subdepartments, understand the many layers of management, and identify the right people who may be searching for their product or service.
    • In the Monocl product line, the company enhanced its ExpertInsight product by expanding the expert profiles with new indexed medical keywords to publications, clinical trials, grants and industry payments. These additions make it even easier for medical affairs professionals to identify the right clinical and scientific expert to assist in product development.

Business Outlook

Based on information as of November 8, 2021, the Company is issuing the following financial guidance.

Fourth Quarter 2021:

  • Revenue is expected to be in the range of $44 – $45 million, a 32% increase year over year.

  • Adjusted Operating Income is expected to be in the range of $11.5 – $12.5 million.

  • Adjusted EBITDA is expected to be in the range of $12.5 – $13.5 million.

  • Adjusted Net Income is expected to be $6 – $7 million.

  • Adjusted Net Income Per Diluted Share is expected to be $0.04 – $0.05 on approximately 148.6 million weighted-average shares outstanding.

Full Year 2021:

  • Revenue is expected to be in the range of $164 – $165 million.

  • Adjusted Operating Income is expected to be in the range of $52 – $53 million.

  • Adjusted EBITDA is expected to be in the range of $55 – $56 million.

  • Adjusted Net Income is expected to be $13 – $14 million.

  • Adjusted Net Income Per Diluted Share is expected to be $0.08 – $0.09 on approximately 148.5 million weighted-average shares outstanding.

Conference Call Information

Definitive Healthcare will host a conference call today, November 8, 2021, at 5:00 p.m. (Eastern Time) to discuss the Company's financial results and current business outlook. To access the call, dial (877) 407-3982 (domestic) or (201) 493-6780 (international). The conference ID number is 13723517. Shortly after the conclusion of the call, a replay of this conference call will be available through November 22, 2021 at (844) 512-2921 (domestic) or (412) 317-6671 (international). The replay passcode is 13723517. A live audio webcast of the event will be available on the Definitive Healthcare’s Investor Relations website at

About Definitive Healthcare

At Definitive Healthcare, our passion is to transform data, analytics and expertise into healthcare commercial intelligence. We help clients uncover the right markets, opportunities and people, so they can shape tomorrow’s healthcare industry. Our SaaS platform creates new paths to commercial success in the healthcare market, so companies can identify where to go next. Learn more or sign up for a free trial at

Forward-Looking Statements

This press release may include forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by words or phrases written in the future tense and/or preceded by words such as “likely,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the market, industry and macroeconomic environment, our business, growth strategies, product development efforts and future expenses, and statements reflecting our expectations about our ability to execute on our strategic plans, achieve future growth and profitability and achieve our financial goals.

Forward-looking statements in this press release are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: an outbreak of disease, global or localized health pandemic or epidemic, or the fear of such an event (such as the COVID-19 global pandemic), including the global economic uncertainty and measures taken in response; the short- and long-term effects of the COVID-19 global pandemic, including the pace of recovery or any future resurgence; our inability to generate substantially all of our revenue and cash flows from sales of subscriptions to our platform and any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced demand for our platform; the risk that our recent growth rates may not be indicative of our future growth; the inability to achieve or sustain profitability in the future compared to historical levels as we increase investments in our business; the loss of our access to our data providers, which could negatively impact our platform; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; the risk of cyber-attacks and security vulnerabilities; and if our security measures are breached or unauthorized access to data is otherwise obtained, our platform may be perceived as not being secure, customers may reduce the use of or stop using our platform, and we may incur significant liabilities.

For additional discussion of factors that could impact our operational and financial results, refer to our final prospectus filed with the U.S. Securities and Exchange Commission (“SEC”) on September 16, 2021, our Quarterly Report on Form 10-Q for the three months ended September 30, 2021 that will be filed following this earnings release, and our subsequent SEC filings, which are or will be available on the Investor Relations page of our website at and on the SEC website at

Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements.

Any forward-looking statement made by us speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.


Definitive Healthcare intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at []. Accordingly, you should monitor the investor relations portion of our website at [] in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at [].

Basis of Presentation

A Reconciliation of GAAP to Non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Non-GAAP Financial Measures

We have presented supplemental non-GAAP financial measures as part of this earnings release. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the company with a focus on the performance of its core operations, including more meaningful comparisons of financial results to historical periods and to the financial results of peer and competitor companies.

We refer in this earnings release to Unlevered Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income and Adjusted Net Income as non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles in the U.S., (“GAAP”). These are supplemental financial measures of our performance and should not be considered substitutes for net (loss) income, gross profit or any other measure derived in accordance with GAAP.

We define Unlevered Free Cash Flow as net cash provided from operating activities less purchases of property and equipment and other assets, plus cash interest expense, cash payments related to transaction related expenses and cash payments related to other non-recurring items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements.

We define EBITDA as earnings before debt-related costs, including interest expense, net and loss on extinguishment of debt and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including equity-based compensation, transaction expenses and other non-recurring expenses. Adjusted EBITDA Margin is determined by calculating the percentage Adjusted EBITDA is of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful measures to investors to assess our operating performance because these metrics eliminate non-recurring and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to investors in measuring the profitability of our operations on a consolidated level.

We define Adjusted Gross Profit as revenue less cost of revenue (excluding acquisition-related depreciation and amortization and equity compensation costs) and Adjusted Gross Margin means Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit differs from gross profit, in that gross profit includes acquisition-related depreciation and amortization expense and equity compensation costs. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small quantity of equity-based compensation is included in cost of revenue in accordance with GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.

We define Adjusted Operating Income as income (loss) from operations plus acquisition related amortization, equity-based compensation, transaction expenses and other non-recurring expenses.

We define Adjusted Net Income as Adjusted Operating Income less interest expense, net, foreign currency loss (gain) and including the incremental tax effects of adjustments to arrive at Adjusted Operating Income. We define Adjusted Net Income Per Share as Adjusted Net Income divided by diluted weighted average outstanding shares.

Our use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to (loss) income from operations, net (loss) income, gross profit, earnings per share or any other performance measures derived in accordance with GAAP, or as measures of operating cash flows or liquidity.

We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, taxes and amounts under the exchange tax receivable agreement, deferred tax assets and deferred tax liabilities, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact on our future GAAP financial results.

In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in these presentations.

Investor Contact:
Brian Denyeau
ICR for Definitive Healthcare

Media Contact:
Danielle Johns



Definitive Healthcare Corp.
Condensed Consolidated Balance Sheets
(amounts in thousands, except number of shares)
  September 30, 2021 December 31, 2020
Assets (unaudited)  
Current assets:    
Cash and cash equivalents  189,752   24,774 
Accounts receivable, net  27,886   33,108 
Prepaid expenses and other current assets  3,642   3,016 
Current portion of deferred contract costs  5,359   2,947 
Total current assets  226,639   63,845 
Property and equipment, net  4,697   3,248 
Other assets  747   472 
Deferred contract costs, net of current portion  9,388   5,952 
Deferred tax asset  161   161 
Intangible assets, net  366,723   410,237 
Goodwill  1,261,444   1,261,444 
Total assets $1,869,799  $1,745,359 
Liabilities and Equity    
Current liabilities:    
Accounts payable  7,055   5,662 
Accrued expenses and other current liabilities  19,296   17,321 
Current portion of deferred revenue  69,811   61,060 
Current portion of term loan  6,875   4,680 
Total current liabilities  103,037   88,723 
Long term liabilities:    
Deferred revenue  368   140 
Tax receivable agreements liability  146,106    
Term loan, net of current portion  265,388   457,197 
Deferred tax liabilities  71,341    
Other long-term liabilities  475   3,736 
Total liabilities  586,715   549,796 
Commitments and Contingencies    
Members' equity     1,195,694 
Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 88,263,333 shares issued and outstanding at September 30, 2021  88    
Class B Common Stock, no par value, 65,000,000 shares authorized, 60,020,525 shares issued and 57,220,661 outstanding at September 30, 2021      
Additional paid-in capital  700,773    
Accumulated other comprehensive income (loss)  24   (131)
Accumulated deficit  (7,978)   
Noncontrolling interests  590,177    
Total equity  1,283,084   1,195,563 
Total liabilities and equity $1,869,799  $1,745,359 


Definitive Healthcare Corp. 
Condensed Consolidated Statements of Operations 
(amounts in thousands, except share amounts and per share data; unaudited)  
  Three Months Ended September 30, Nine Months Ended September 30, 
   2021   2020   2021   2020  
Revenue $43,084  $30,073  $119,841  $84,659  
Cost of revenue:         
Cost of revenue exclusive of amortization shown below (1)  5,129   2,619   13,895   7,876  
Amortization  5,356   4,794   15,896   14,278  
Gross profit  32,599   22,660   90,050   62,505  
Operating expenses:         
Sales and marketing (1)  14,376   8,292   39,003   23,542  
Product development (1)  4,746   2,618   12,817   7,566  
General and administrative (1)  7,880   2,538   18,891   8,105  
Depreciation and amortization  9,760   10,112   28,814   30,037  
Transaction expenses  (137)  40   3,332   748  
Total operating expenses  36,625   23,600   102,857   69,998  
  Loss from operations  (4,026)  (940)  (12,807)  (7,493) 
Other expense, net:         
Foreign currency transaction (loss) gain  119   -   143   -  
Interest expense, net  (7,186)  (9,022)  (23,956)  (27,802) 
Loss on extinguishment of debt  (9,873)  -   (9,873)  -  
Total other expense, net  (16,940)  (9,022)  (33,686)  (27,802) 
   Net loss  (20,966)  (9,962)  (46,493)  (35,295) 
Less: Net loss attributable to Definitive OpCo prior to the Reorganization Transactions  (7,816)  (9,962)  (33,343)  (35,295) 
Less: Net loss attributable to noncontrolling interests  (5,172)  -   (5,172)  -  
  Net loss attributable to Definitive Healthcare Corp. $(7,978) $  $(7,978) $  
Net loss per share of Class A Common Stock:         
Basic and diluted $(0.09) N/A  $(0.09) N/A  
Weighted average common stock outstanding:         
Basic and diluted  88,263,333  N/A   88,263,333  N/A  
(1) Amounts include equity-based compensation expense as follows:         
  Three Months Ended September 30, Nine Months Ended September 30, 
   2021   2020   2021   2020  
Cost of revenue $48  $16  $79  $46  
Sales and marketing  326   132   567   380  
Product development  187   93   341   267  
General and administrative  1,756   217   3,351   637  
Total equity-based compensation expense $2,317  $458  $4,338  $1,330  

Definitive Healthcare Corp. 
Condensed Consolidated Statements of Cash Flows 
(amounts in thousands; unaudited) 
  Three Months Ended September 30, Nine Months Ended September 30,
   2021   2020   2021   2020 
Cash flows provided by operating activities:        
Net loss $(20,966) $(9,962) $(46,493)  (35,295)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:        
Depreciation and amortization  452   301   1,193   817 
Amortization of intangible assets  14,664   14,605   43,517   43,498 
Amortization of deferred contract costs  1,293   449   3,195   1,038 
Equity-based compensation  2,317   458   4,338   1,330 
Noncash paid in kind interest expense     3,017      7,371 
Amortization of debt issuance costs  475   514   1,522   1,541 
Provision for doubtful accounts receivable  181   204   76   579 
Loss on extinguishment of debt (non-cash portion)  9,843      9,843    
Changes in fair value of contingent consideration  (212)     3,169    
Changes in operating assets and liabilities:        
Accounts receivable  (5,297)  (1,130)  5,179   3,936 
Prepaid expenses and other current assets  53   (102)  (561)  (39)
Deferred contract costs  (3,001)  (1,769)  (9,043)  (4,341)
Accounts payable, accrued expenses and other current liabilities  (1,846)  (3,344)  (3,965)  (7,283)
Deferred revenue  1,096   (2,446)  9,023   1,392 
Net cash (used in) provided by operating activities  (948)  795   20,993   14,544 
Cash flows used in investing activities:        
Purchases of property, equipment, and other assets  (440)  (166)  (5,662)  (1,061)
Cash paid for acquisitions, net of cash acquired     (6,935)     (6,935)
Net cash used in investing activities  (440)  (7,101)  (5,662)  (7,996)
Cash flows provided by (used in) financing activities:        
Proceeds from term loan  275,000      275,000    
Repayments of term loans  (470,402)  (1,125)  (472,742)  (3,375)
Proceeds from revolving credit facility           25,000 
Payment of contingent consideration        (1,500)   
Payment of debt issuance costs  (3,511)     (3,511)   
Proceeds from equity offering, net of underwriting discounts  452,812      452,812    
Repurchase of outstanding equity/Definitive OpCo units  (92,812)     (92,812)  
Payments of IPO issuance costs  (4,519)     (5,913)   
Member contributions        5,500    
Member distributions  (3,811)  (2,061)  (7,139)  (2,109)
Net cash provided by (used in) financing activities  152,757   (3,186)  149,695   19,516 
Net increase (decrease) in cash and cash equivalents  151,369   (9,492)  165,026   26,064 
Effect of exchange rate changes on cash and cash equivalents  (55)     (48)   
Cash and cash equivalents, beginning of period  38,438   44,174   24,774   8,618 
Cash and cash equivalents, end of period $189,752  $34,682  $189,752  $34,682 
Supplemental cash flow disclosures:        
Cash paid for interest $11,615  $9,157  $27,587  $23,043 
Cash paid for income taxes        13    
Supplemental disclosure of non-cash investing activities:        
Net increase (decrease) in accrued capital expenditures, including purchases of data  369      (3,020)   
Supplemental disclosure of non-cash financing activities:        
Increase in unpaid public offering costs $3,055  $  $5,481  $ 

Definitive Healthcare Corp. 
Reconciliations of Non-GAAP Financial Measures to Closest GAAP Equivalent 
Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow (in thousands; unaudited) 
 Three Months Ended September 30, Nine Months Ended September 30, 
  2021   2020   2021   2020  
Cash flow from operations$(948) $795  $20,993  $14,544  
Purchases of property and equipment and other assets (440)  (166)  (5,662)  (1,061) 
Interest paid in cash 11,615   9,157   27,587   23,043  
Transaction expenses paid in cash (a) 75   40   163   748  
Other non-recurring items (b) 1,149   37   3,313   1,804  
Unlevered Free Cash Flow$11,451  $9,863  $46,394  $39,078  
(a) Transaction expenses paid in cash primarily represent legal, accounting and consulting expenses related to our acquisitions. (b) Non-recurring items represent expenses that are typically one-time or non-operational in nature. 
Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income and GAAP Operating 
Income to Adjusted Operating Income 
(in thousands, except per share amounts; unaudited) 
 Three Months Ended September 30, Nine Months Ended September 30, 
  2021   2020   2021   2020  
Net loss$(20,966) $(9,962) $(46,493) $(35,295) 
Add: Interest expense, net 7,186   9,022   23,956   27,802  
Add: Loss from extinguishment from debt 9,873   -   9,873   -  
Add: Foreign currency loss (gain) (119)  -   (143)  -  
Loss from operations$(4,026) $(940) $(12,807) $(7,493) 
Add: Amortization of acquired technology 5,096   4,759   15,125   14,175  
Add: Amortization of other acquired intangibles 9,308   9,811   27,621   29,220  
Add: Equity-based compensation 2,317   458   4,338   1,330  
Add: Transaction expenses (137)  40   3,332   748  
Add: Other non-recurring items 1,149   37   3,313   1,804  
Adjusted Operating Income$13,707  $14,165  $40,922  $39,784  
Less: Interest expense, net (7,186)  (9,022)  (23,956)  (27,802) 
Less: Foreign currency (loss) gain 119   -   143   -  
Less: Tax impacts of adjustments to net income (loss) (4,472)  -   (10,304)  -  
Adjusted Net Income$2,168  $5,143  $6,805  $11,982  
Shares for Adjusted Net Income Per Share (a) 148,298,331     148,298,331    
Adjusted Net Income Per Share$0.01    $0.05    
(a) Diluted Adjusted Net Income Per Share is computed by giving effect to all potential weighted average Class A common stock and any securities that are convertible into Class A common stock, including Definitive OpCo units and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 149,745,883 as of September 30, 2021. 
Reconciliation of Adjusted EBITDA to GAAP Net (Loss) Income 
(in thousands; unaudited) 
 Three Months Ended September 30, Nine Months Ended September 30, 
  2021   2020   2021   2020  
Net loss$(20,966) $(9,962) $(46,493) $(35,295) 
Interest expense, net 7,186   9,022   23,956   27,802  
Loss from extinguishment of debt 9,873   -   9,873   -  
Depreciation & amortization 15,116   14,906   44,710   44,315  
EBITDA$11,209  $13,966  $32,046  $36,822  
Other (income) expense, net (a) (119)  -   (143)  -  
Equity-based compensation (b) 2,317   458   4,338   1,330  
Transaction expenses (c ) (137)  40   3,332   748  
Other non-recurring items (d) 1,149   37   3,313   1,804  
Adjusted EBITDA$14,419  $14,501  $42,886  $40,704  
Revenue$43,084  $30,073  $119,841  $84,659  
Adjusted EBITDA margin 33%  48%  36%  48% 
(a) Primarily represents foreign exchange remeasurement gains and losses.
(b) Equity-based compensation represents non-cash compensation expense recognized in association with equity awards made to employees and directors.
(c) Transaction expenses primarily represent legal, accounting and consulting expenses and fair value adjustments for contingent consideration related to our acquisitions.
(d) Non-recurring items represent expenses that are typically one-time or non-operational in nature.
Reconciliation of Adjusted Gross Profit to GAAP Gross Profit
(in thousands; unaudited)
 Three Months Ended September 30, Nine Months Ended September 30, 
  2021   2020   2021   2020  
Reported gross profit$32,599  $22,660  $90,050  $62,505  
Amortization of intangible assets resulting from acquisition-related purchase accounting adjustments (a) 5,096   4,759   15,125   14,175  
Equity compensation costs 48   16   79   46  
Adjusted Gross Profit$37,743  $27,435  $105,254  $76,726  
Revenue$43,084  $30,073  $119,841  $84,659  
Adjusted Gross Margin 88%  91%  88%  91% 
(a) Amortization of intangible assets resulting from purchase accounting adjustments represents non-cash amortization of acquired intangibles, primarily resulting from the Advent acquisition.