10-Q
false0001861795http://fasb.org/us-gaap/2022#OtherAssetsNoncurrentQ1http://fasb.org/us-gaap/2022#PrepaidExpenseAndOtherAssetsCurrent--12-31http://fasb.org/us-gaap/2022#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrent0001861795us-gaap:GoodwillMember2022-12-310001861795us-gaap:FairValueInputsLevel1Memberdh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CallOptionMember2021-12-220001861795us-gaap:AdditionalPaidInCapitalMember2022-12-310001861795us-gaap:CustomerRelationshipsMember2022-02-180001861795us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001861795us-gaap:CapitalUnitClassBMember2022-12-310001861795us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-12-310001861795us-gaap:TrademarksMemberdh:AwAcquisitionMember2022-02-280001861795us-gaap:FairValueInputsLevel3Member2023-01-012023-03-310001861795us-gaap:AdditionalPaidInCapitalMember2023-03-310001861795dh:DeferredContractCostsMember2023-03-310001861795us-gaap:FairValueInputsLevel3Memberdh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-03-310001861795us-gaap:AccumulatedTranslationAdjustmentMember2022-12-310001861795dh:AnalyticalWizardsAcquisitionMember2022-02-182022-02-180001861795us-gaap:CapitalUnitClassAMember2023-01-012023-03-310001861795us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001861795us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:SoftwareDevelopmentMemberdh:AwAcquisitionMember2022-02-182022-02-180001861795dh:DeferredContractCostsMember2021-12-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberdh:AgencyBondsMaturitiesLessThan90DaysMember2022-12-310001861795us-gaap:AccumulatedTranslationAdjustmentMember2022-03-3100018617952022-03-310001861795dh:TwoThousandTwentyOneRevolvingLineOfCreditMembersrt:MaximumMember2023-01-012023-03-310001861795dh:SubscriptionServicesMember2022-01-012022-03-310001861795dh:AgencyBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795dh:GoodwillAndIntangibleAssetsMember2023-03-310001861795us-gaap:RetainedEarningsMember2023-01-012023-03-310001861795us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:FairValueInputsLevel1Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:AwAcquisitionMember2022-02-182022-02-180001861795us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CapitalUnitClassAMember2021-12-310001861795us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-03-310001861795us-gaap:SellingAndMarketingExpenseMember2022-01-012022-03-310001861795dh:AwAcquisitionMemberus-gaap:SoftwareDevelopmentMember2022-02-280001861795dh:AgencyBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795dh:AgencyBondsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:CapitalUnitClassAMember2023-03-310001861795us-gaap:CommercialPaperMember2023-03-310001861795us-gaap:FairValueInputsLevel3Member2021-12-3100018617952023-03-310001861795us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:TwoThousandTwentyOneRevolvingLineOfCreditMember2021-09-300001861795us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001861795us-gaap:FairValueInputsLevel3Memberdh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001861795dh:DeferredContractCostsMember2022-01-012022-12-310001861795dh:AgencyBondsMember2022-12-310001861795us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-12-310001861795dh:ProfessionalServicesMember2023-01-012023-03-310001861795us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001861795us-gaap:DatabasesMember2023-03-310001861795us-gaap:FurnitureAndFixturesMember2023-03-310001861795us-gaap:CommonClassAMember2023-03-310001861795us-gaap:SeriesBPreferredStockMember2021-12-220001861795us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-03-310001861795us-gaap:CommonClassAMember2023-01-012023-03-310001861795dh:DefinitiveOpcoMember2022-12-310001861795us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-03-310001861795us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001861795us-gaap:SoftwareDevelopmentMember2022-02-280001861795dh:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-01-012023-03-310001861795us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2022-02-280001861795dh:TwoThousandTwentyOneRevolvingLineOfCreditMember2023-01-012023-03-310001861795dh:AgencyBondsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CommonClassBMember2022-12-310001861795us-gaap:FairValueInputsLevel1Memberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:FairValueInputsLevel1Memberdh:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-12-3100018617952021-01-012021-12-310001861795dh:DefinitiveOpcoMemberus-gaap:CommonClassAMember2023-03-310001861795dh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-3100018617952023-01-012023-03-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:VestedAndUnvestedUnitsMember2023-01-012023-03-310001861795us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CostOfSalesMember2022-01-012022-03-310001861795us-gaap:CommercialPaperMember2022-12-310001861795us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:NoncontrollingInterestMember2022-12-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795dh:AgencyBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:CapitalUnitClassBMember2021-12-310001861795us-gaap:DevelopedTechnologyRightsMember2023-03-310001861795us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:NoncontrollingInterestMember2023-03-310001861795dh:DefinitiveOpcoMemberus-gaap:CommonClassAMember2023-01-012023-03-310001861795us-gaap:CustomerRelationshipsMemberdh:AwAcquisitionMember2022-02-280001861795dh:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2023-01-012023-03-310001861795us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-01-012023-03-310001861795us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795dh:AgencyBondsMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:BankOfAmericaNAMemberus-gaap:InterestRateSwapMember2023-03-310001861795us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001861795dh:AgencyBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:AdditionalPaidInCapitalMember2022-03-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001861795us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:FairValueInputsLevel1Memberdh:AgencyBondsMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:TwoThousandTwentyOneRevolvingLineOfCreditMember2021-09-012021-09-300001861795us-gaap:TrademarksMemberdh:AwAcquisitionMember2022-02-182022-02-180001861795us-gaap:AccumulatedTranslationAdjustmentMember2023-01-012023-03-310001861795dh:CertificatesOfDepositMaturitiesLessThan90DaysMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:ContingentConsiderationMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-12-310001861795us-gaap:TradeNamesMemberdh:AwAcquisitionMember2022-02-182022-02-180001861795us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-3100018617952022-01-012022-09-300001861795us-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:CustomerRelationshipsMember2022-12-310001861795dh:GoldmanSachsBankUsaMemberus-gaap:InterestRateSwapMember2023-03-310001861795us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:TwoThousandTwentyOneRevolvingLineOfCreditMember2023-03-310001861795us-gaap:CallOptionMember2021-12-222021-12-220001861795dh:PurchaseOptionMemberus-gaap:SeriesBPreferredStockMember2021-12-220001861795us-gaap:CommonClassAMember2022-01-012022-03-310001861795us-gaap:CapitalUnitClassBMember2022-01-012022-03-310001861795us-gaap:CapitalUnitClassAMember2022-12-310001861795us-gaap:TradeNamesMember2022-02-280001861795us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:FairValueInputsLevel2Memberdh:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2023-01-012023-03-3100018617952022-02-280001861795us-gaap:FairValueInputsLevel2Memberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:InterestRateSwapMember2023-01-012023-03-310001861795us-gaap:InterestRateSwapMember2022-12-310001861795us-gaap:CustomerRelationshipsMemberdh:AwAcquisitionMember2022-02-182022-02-180001861795us-gaap:RetainedEarningsMember2021-12-310001861795dh:SubscriptionServicesMember2023-01-012023-03-310001861795dh:GoodwillAndIntangibleAssetsMember2022-12-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795srt:ScenarioPreviouslyReportedMemberdh:AwAcquisitionMember2023-03-310001861795dh:ComputersAndSoftwareMember2022-12-310001861795us-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-3100018617952022-02-182022-02-180001861795us-gaap:FairValueInputsLevel2Memberdh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:AwAcquisitionMember2022-01-012022-12-310001861795us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001861795us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:FiniteLivedIntangibleAssetsMember2022-01-012022-03-310001861795us-gaap:PropertyPlantAndEquipmentMember2023-01-012023-03-310001861795us-gaap:FairValueInputsLevel3Member2023-03-310001861795us-gaap:LeaseholdImprovementsMember2023-03-3100018617952022-02-012022-02-280001861795us-gaap:InterestRateSwapMember2023-03-310001861795us-gaap:InterestRateSwapMember2022-03-310001861795dh:TwoThousandTwentyOneRevolvingLineOfCreditMembersrt:MinimumMember2023-01-012023-03-310001861795us-gaap:FairValueInputsLevel3Member2022-12-310001861795dh:VestedAndUnvestedUnitsMember2022-01-012022-03-310001861795us-gaap:FairValueInputsLevel1Memberus-gaap:OtherAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CertificatesOfDepositMember2023-03-310001861795us-gaap:CostOfSalesMember2023-01-012023-03-310001861795us-gaap:AdditionalPaidInCapitalMember2021-12-310001861795us-gaap:CapitalUnitClassAMember2022-03-310001861795us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:FairValueInputsLevel3Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:FiniteLivedIntangibleAssetsMember2023-01-012023-03-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:RetainedEarningsMember2022-01-012022-03-310001861795us-gaap:FairValueInputsLevel1Memberdh:CertificatesOfDepositMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:CommonClassAMember2022-12-310001861795dh:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-12-310001861795us-gaap:FairValueInputsLevel2Memberdh:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-12-310001861795us-gaap:CapitalUnitClassAMember2022-01-012022-03-310001861795us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001861795dh:ComputersAndSoftwareMember2023-03-310001861795us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:NoncontrollingInterestMember2021-12-310001861795dh:ProfessionalServicesMember2022-01-012022-03-3100018617952021-12-310001861795us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:ProductMember2022-01-012022-03-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:GoodwillMember2023-03-310001861795us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-12-310001861795us-gaap:CertificatesOfDepositMember2022-12-310001861795us-gaap:USTreasurySecuritiesMember2022-12-310001861795us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001861795us-gaap:CapitalUnitClassBMember2023-03-310001861795us-gaap:FairValueInputsLevel3Member2022-01-012022-12-310001861795dh:AgencyBondsMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:DatabasesMember2022-12-310001861795us-gaap:CommonClassBMember2023-03-310001861795us-gaap:LeaseholdImprovementsMember2022-12-310001861795us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:PropertyPlantAndEquipmentMember2022-01-012022-03-310001861795us-gaap:FairValueInputsLevel1Memberdh:ContingentConsiderationMemberus-gaap:FairValueMeasurementsRecurringMember2023-01-012023-03-3100018617952022-12-310001861795dh:TwoThousandTwentyOneTermLoanMember2023-03-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310001861795us-gaap:TradeNamesMember2022-12-310001861795us-gaap:RetainedEarningsMember2022-12-310001861795dh:DefinitiveOpcoMember2023-03-310001861795dh:AgencyBondsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795dh:AwAcquisitionMember2023-03-310001861795us-gaap:FairValueInputsLevel1Memberdh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:AgencyBondsMember2023-03-310001861795us-gaap:ScenarioAdjustmentMemberdh:AwAcquisitionMember2023-03-310001861795us-gaap:CapitalUnitClassBMember2022-03-310001861795us-gaap:FairValueInputsLevel2Memberdh:CommercialPaperMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CommonClassAMemberdh:ContinuingPreIpoLlcMembersMember2023-03-310001861795srt:ScenarioForecastMember2023-08-010001861795us-gaap:ProductMember2023-01-012023-03-310001861795us-gaap:CapitalUnitClassBMember2023-01-012023-03-3100018617952021-12-220001861795us-gaap:AccumulatedTranslationAdjustmentMember2023-03-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:FairValueInputsLevel1Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795dh:TwoThousandTwentyOneTermLoanMember2023-01-012023-03-310001861795us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-012022-03-310001861795us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:TwoThousandTwentyOneTermLoanMember2022-12-310001861795us-gaap:FurnitureAndFixturesMember2022-12-310001861795us-gaap:DevelopedTechnologyRightsMember2022-12-3100018617952023-05-010001861795us-gaap:FairValueInputsLevel2Memberdh:CertificatesOfDepositMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795dh:AwAcquisitionMember2022-02-180001861795us-gaap:SellingAndMarketingExpenseMember2023-01-012023-03-310001861795us-gaap:USTreasurySecuritiesMember2023-03-310001861795us-gaap:NoncontrollingInterestMember2022-03-310001861795us-gaap:TradeNamesMember2023-03-3100018617952022-01-012022-12-310001861795us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-01-012023-03-310001861795dh:DeferredContractCostsMember2022-12-3100018617952022-01-012022-03-310001861795us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001861795dh:DeferredContractCostsMember2023-01-012023-03-310001861795us-gaap:GoodwillMember2022-02-180001861795us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-03-310001861795dh:CertificatesOfDepositMaturitiesLessThan90DaysMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberdh:AgencyBondsMaturitiesLessThan90DaysMember2022-12-310001861795us-gaap:RetainedEarningsMember2022-03-310001861795us-gaap:FairValueInputsLevel2Memberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-12-310001861795us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001861795us-gaap:FairValueInputsLevel1Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2023-03-310001861795us-gaap:CustomerRelationshipsMember2023-03-310001861795us-gaap:RetainedEarningsMember2023-03-310001861795us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-03-31xbrli:purexbrli:sharesiso4217:USDxbrli:sharesdh:Segmentiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-40815

Definitive Healthcare Corp.

(Exact name of registrant as specified in its charter)

Delaware

86-3988281

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

492 Old Connecticut Path, Suite 401

Framingham, MA

01701

(Address of principal executive offices)

(Zip Code)

 

(508) 720-4224

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, $0.001 par value

DH

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller reporting company

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No

As of May 1, 2023, the number of outstanding shares of the registrant’s Class A Common Stock was 110,214,798 shares.


 

Definitive Healthcare Corp.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended March 31, 2023

TABLE OF CONTENTS

 

 

Page

 

 

 

 

 

 

 

 

 

 

Glossary

3

 

 

 

Cautionary Note Regarding Forward-Looking Statements

4

 

 

 

Part I.

FINANCIAL INFORMATION

5

Item 1.

Condensed Consolidated Balance Sheets

5

Condensed Consolidated Statements of Operations

6

 

Condensed Consolidated Statements of Comprehensive Loss

7

 

 

 

 

Condensed Consolidated Statements of Changes in Total Equity

8

Condensed Consolidated Statements of Cash Flows

9

Notes to the Condensed Consolidated Financial Statements

10

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

40

Item 4.

Controls and Procedures

41

Part II.

OTHER INFORMATION

42

Item 1.

Legal Proceedings

42

Item 1A.

Risk Factors

42

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

42

Item 3.

Defaults Upon Senior Securities

42

Item 4.

Mine Safety Disclosures

42

 

 

 

Item 5.

Other Information

42

 

 

 

Item 6.

Exhibits

43

Signatures

44

 

2


 

GLOSSARY

 

As used in this quarterly report on Form 10-Q, the terms identified below have the meanings specified below unless otherwise noted or the context indicates otherwise. References in this Form 10-Q to “Definitive Healthcare Corp.” refer to Definitive Healthcare Corp. and not to any of its subsidiaries unless the context indicates otherwise. References in this Form 10-Q to “Definitive Healthcare”, "Definitive”, the “Company”, “we”, “us”, and “our” refer (1) prior to the consummation of the Reorganization Transactions, to Definitive OpCo and its consolidated subsidiaries, and (2) after the consummation of the Reorganization Transactions, to Definitive Healthcare Corp. and its consolidated subsidiaries unless the context indicates otherwise.

 

AIDH Buyer” refers to AIDH Buyer, LLC, which is a wholly owned subsidiary of Definitive OpCo and the direct parent company of DH Holdings.
Advent” refers to funds affiliated with Advent International, a global private equity firm.
AIDH Management Holdings, LLC” is a special purpose investment vehicle through which certain persons, primarily employees and certain legacy investors, indirectly hold interests in Definitive OpCo.
Amended LLC Agreement” refers to the second amended and restated limited liability company agreement entered into by Definitive Opco pursuant to which members have the right to exchange all or a portion of their LLC units for newly issued shares of Class A Common Stock in Definitive Healthcare Corp.
ARR” refers to annualized recurring revenue as of period end.
Blocker Company” or “Blocker Companies” refers to certain entities treated as corporations for U.S. federal income tax purposes that held LLC units in Definitive OpCo which, through the Reorganization Transactions, were merged into Definitive Healthcare Corp. and are now holders of Class A Common Stock.
Continuing Pre-IPO LLC Members” refers to certain Pre-IPO LLC Members who retained their equity ownership in Definitive OpCo in the form of LLC Units immediately following the consummation of the Reorganization Transactions.
Definitive OpCo” refers to AIDH TopCo, LLC, a Delaware limited liability company, and a subsidiary of Definitive Healthcare Corp., following the Reorganization Transactions.
DH Holdings” refers to Definitive Healthcare Holdings, LLC, a Delaware limited liability company and wholly-owned subsidiary of AIDH Buyer.
LLC Units” refers to limited liability company interests in Definitive OpCo.
IPO” refers to the initial public offering of Class A Common Stock of Definitive Healthcare Corp.
NDR” or “Net Dollar Retention Rate” refers to net dollar retention rate, which we calculate as the percentage of ARR retained from existing customers across a defined period, after accounting for upsell, down-sell, pricing changes, and churn. We calculate net dollar retention as beginning ARR for a period, plus (i) expansion ARR (including, but not limited to, upsell and pricing increases), less (ii) churn (including, but not limited to, non-renewals and contractions), divided by (iii) beginning ARR for a period.
Pre-IPO LLC Members” refers to certain affiliates of Spectrum Equity, Jason Krantz, DH Holdings, AIDH Management Holdings, LLC, certain affiliates of 22C Capital, certain affiliates of Advent and certain other minority equity holders of Definitive OpCo prior to the Reorganization Transactions.
Reorganization Transactions” refers to transactions completed in connection with the Company’s IPO as defined within Note 1 to our unaudited condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.
Reorganization Parties” refers to the shareholders of the Blocker Companies prior to the merger of the Blocker Companies into Definitive Healthcare Corp.
Spectrum Equity” refers to investment funds associated with Spectrum Equity Management, L.P., a private equity firm.
Sponsors” refers collectively to Advent, 22C Capital, and Spectrum Equity.
Tax Receivable Agreement” refers to the Tax Receivable Agreement, dated September 14, 2021, between Definitive Healthcare Corp., Definitive OpCo, and the TRA Parties.
TRA Parties” refers to the Continuing Pre-IPO LLC Members, the Reorganization Parties, and any future party to the Tax Receivable Agreement.
22C Capital” refers to investment funds associated with 22C Capital LLC, a private equity firm.

 

3


 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (“Quarterly Report”) contains forward-looking statements. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance, such as those contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Forward-looking statements 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, but are not limited to, regional, national, or global political, economic, business, competitive, market, and regulatory conditions.

For the reasons described above, we caution you against relying on any forward-looking statements, which should also be read in conjunction with Part I, Item 1A, “Risk Factors”, in our Annual Report on Form 10-K for the year ended December 31, 2022, or our “2022 Form 10-K”, and Part II, Item 1A in this Quarterly Report and the other cautionary statements that are included elsewhere in this Quarterly Report and in our public filings, including under “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statement made by us speaks only as of the date on which we make it. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law.

4


 

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

DEFINITIVE HEALTHCARE CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except number of shares and par value)

(Unaudited)

 

 

 

March 31, 2023

 

 

December 31, 2022

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

124,961

 

 

$

146,934

 

Short-term investments

 

 

218,955

 

 

 

184,939

 

Accounts receivable, net

 

 

51,801

 

 

 

58,799

 

Prepaid expenses and other current assets

 

 

14,711

 

 

 

12,686

 

Current portion of deferred contract costs

 

 

11,064

 

 

 

10,387

 

Total current assets

 

 

421,492

 

 

 

413,745

 

Property and equipment, net

 

 

4,452

 

 

 

4,464

 

Operating lease right-of-use assets, net

 

 

9,118

 

 

 

9,681

 

Other assets

 

 

3,697

 

 

 

4,683

 

Deferred contract costs, net of current portion

 

 

15,080

 

 

 

14,596

 

Intangible assets, net

 

 

338,295

 

 

 

350,722

 

Goodwill

 

 

1,323,102

 

 

 

1,323,102

 

Total assets

 

$

2,115,236

 

 

$

2,120,993

 

Liabilities and Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

 

4,535

 

 

 

3,948

 

Accrued expenses and other current liabilities

 

 

20,770

 

 

 

18,748

 

Current portion of deferred revenue

 

 

105,362

 

 

 

99,692

 

Current portion of term loan

 

 

10,313

 

 

 

8,594

 

Current portion of operating lease liabilities

 

 

1,640

 

 

 

1,521

 

Total current liabilities

 

 

142,620

 

 

 

132,503

 

Long term liabilities:

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

138

 

 

 

236

 

Term loan, net of current portion

 

 

252,465

 

 

 

255,765

 

Operating lease liabilities, net of current portion

 

 

9,491

 

 

 

9,969

 

Tax receivable agreements liability, net of current portion

 

 

161,721

 

 

 

156,311

 

Deferred tax liabilities

 

 

78,315

 

 

 

75,737

 

Other long-term liabilities

 

 

1,035

 

 

 

3,251

 

Total liabilities

 

 

645,785

 

 

 

633,772

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 110,162,665 and 105,138,273 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively

 

 

110

 

 

 

105

 

Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 45,626,933 and 44,217,344 shares issued and outstanding, respectively, at March 31, 2023, and 50,433,101 and 48,923,952 shares issued and outstanding, respectively at December 31, 2022

 

 

 

 

 

 

Additional paid-in capital

 

 

1,020,709

 

 

 

972,077

 

Accumulated other comprehensive income

 

 

2,793

 

 

 

3,668

 

Accumulated deficit

 

 

(35,531

)

 

 

(23,714

)

Noncontrolling interests

 

 

481,370

 

 

 

535,085

 

Total equity

 

 

1,469,451

 

 

 

1,487,221

 

Total liabilities and equity

 

$

2,115,236

 

 

$

2,120,993

 

See notes to condensed consolidated financial statements

5


 

DEFINITIVE HEALTHCARE CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except share amounts and per share data)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Revenue

 

$

59,201

 

 

$

50,124

 

Cost of revenue:

 

 

 

 

 

 

Cost of revenue exclusive of amortization

 

 

8,552

 

 

 

5,950

 

Amortization

 

 

3,354

 

 

 

5,378

 

Gross profit

 

 

47,295

 

 

 

38,796

 

Operating expenses:

 

 

 

 

 

 

Sales and marketing

 

 

23,423

 

 

 

21,293

 

Product development

 

 

9,884

 

 

 

6,850

 

General and administrative

 

 

13,640

 

 

 

10,454

 

Depreciation and amortization

 

 

9,590

 

 

 

9,874

 

Transaction, integration, and restructuring expenses

 

 

2,590

 

 

 

1,310

 

Total operating expenses

 

 

59,127

 

 

 

49,781

 

Loss from operations

 

 

(11,832

)

 

 

(10,985

)

Other income (expense), net:

 

 

 

 

 

 

Interest income

 

 

2,834

 

 

 

70

 

Interest expense

 

 

(3,614

)

 

 

(1,954

)

Other expense, net

 

 

(3,698

)

 

 

(101

)

Total other expense, net

 

 

(4,478

)

 

 

(1,985

)

Net loss before income taxes

 

 

(16,310

)

 

 

(12,970

)

Benefit from (provision for) income taxes

 

 

710

 

 

 

(87

)

Net loss

 

 

(15,600

)

 

 

(13,057

)

Less: Net loss attributable to noncontrolling interests

 

 

(3,783

)

 

 

(4,433

)

Net loss attributable to Definitive Healthcare Corp.

 

$

(11,817

)

 

$

(8,624

)

Net loss per share of Class A Common Stock:

 

 

 

 

 

 

Basic and diluted

 

$

(0.11

)

 

$

(0.09

)

Weighted average Class A Common Stock outstanding:

 

 

 

 

 

 

Basic and diluted

 

 

108,234,043

 

 

 

97,158,823

 

See notes to condensed consolidated financial statements

6


 

DEFINITIVE HEALTHCARE CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(amounts in thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Net loss

 

$

(15,600

)

 

$

(13,057

)

Other comprehensive loss:

 

 

 

 

Foreign currency translation adjustments

 

 

19

 

 

 

6

 

Unrealized gain (loss) on available-for-sale securities

 

 

89

 

 

 

(309

)

Unrealized (loss) gain on interest rate hedging instruments

 

 

(1,355

)

 

 

1,646

 

Comprehensive loss

 

 

(16,847

)

 

 

(11,714

)

Less: Comprehensive loss attributable to noncontrolling interests

 

 

(4,155

)

 

 

(3,946

)

Comprehensive loss attributable to Definitive Healthcare Corp.

 

$

(12,692

)

 

$

(7,768

)

See notes to condensed consolidated financial statements

7


 

 

DEFINITIVE HEALTHCARE CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY

(amounts in thousands, except share amounts)

(Unaudited)

 

Three Months Ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

Other

 

 

 

 

 

 

Class A

 

Class A

 

Class B

 

Class B

 

Paid-In

 

Accumulated

 

Comprehensive

 

Noncontrolling

 

Total

 

 

Stock

 

Amount

 

Stock

 

Amount

 

Capital

 

Deficit

 

Income

 

Interests

 

Equity

 

Balance at January 1, 2023

 

105,138,273

 

$

105

 

 

50,433,101

 

$

 

$

972,077

 

$

(23,714

)

$

3,668

 

$

535,085

 

$

1,487,221

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(11,817

)

 

 

 

(3,783

)

 

(15,600

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(875

)

 

(372

)

 

(1,247

)

Vested incentive units

 

 

 

 

 

 

 

 

 

(505

)

 

 

 

 

 

505

 

 

 

Issuance of Class A Common Stock upon vesting of RSUs

 

380,676

 

 

 

 

 

 

 

 

828

 

 

 

 

 

 

(828

)

 

 

Shares withheld related to net share settlement

 

(127,829

)

 

 

 

 

 

 

 

(1,530

)

 

 

 

 

 

 

 

(1,530

)

Effect of LLC unit exchanges

 

4,771,545

 

 

5

 

 

(4,771,545

)

 

 

 

42,028

 

 

 

 

 

 

(52,554

)

 

(10,521

)

Forfeited unvested incentive units

 

 

 

 

 

(34,623

)

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

7,811

 

 

 

 

 

 

3,317

 

 

11,128

 

Balance at March 31, 2023

 

110,162,665

 

$

110

 

 

45,626,933

 

$

 

$

1,020,709

 

$

(35,531

)

$

2,793

 

$

481,370

 

$

1,469,451

 

 

 

 

Three Months Ended March 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

Other

 

 

 

 

 

 

Class A

 

Class A

 

Class B

 

Class B

 

Paid-In

 

Accumulated

 

Comprehensive

 

Noncontrolling

 

Total

 

 

Stock

 

Amount

 

Stock

 

Amount

 

Capital

 

Deficit

 

Income

 

Interests

 

Equity

 

Balance at January 1, 2022

 

97,030,095

 

 

97

 

 

58,244,627

 

 

 

 

890,724

 

 

(17,677

)

 

62

 

 

630,056

 

 

1,503,262

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(8,624

)

 

 

 

(4,433

)

 

(13,057

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

856

 

 

487

 

 

1,343

 

Vested incentive units

 

 

 

 

 

 

 

 

 

(696

)

 

 

 

 

 

696

 

 

 

Effect of LLC unit exchanges

 

544,302

 

 

1

 

 

(544,302

)

 

 

 

5,080

 

 

 

 

 

 

(5,978

)

 

(897

)

Forfeited unvested incentive units

 

 

 

 

 

(33,549

)

 

 

 

 

 

 

 

 

 

 

 

 

Equity-based compensation

 

 

 

 

 

 

 

 

 

4,377

 

 

 

 

 

 

2,495

 

 

6,872

 

Distributions to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(258

)

 

(258

)

Balance at March 31, 2022

 

97,574,397

 

$

98

 

 

57,666,776

 

$

 

$

899,485

 

$

(26,301

)

$

918

 

$

623,065

 

$

1,497,265

 

See notes to condensed consolidated financial statements.

8


 

DEFINITIVE HEALTHCARE CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Cash flows provided by (used in) operating activities:

 

 

 

 

 

 

Net loss

 

$

(15,600

)

 

$

(13,057

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

513

 

 

 

525

 

Amortization of intangible assets

 

 

12,431

 

 

 

14,727