Definitive Healthcare Reports Exit/Disposal Activities

TL;DR

**Definitive Healthcare is making moves to exit or dispose of certain activities, watch for financial impacts.**

AI Summary

Definitive Healthcare Corp. filed an 8-K on January 4, 2024, reporting an event that occurred on January 3, 2024. This filing indicates that the company is undertaking activities related to exit or disposal, which often involve restructuring or divesting parts of the business. For investors, this matters because such activities can impact future profitability, operational efficiency, and potentially lead to one-time charges or gains, affecting the stock's short-term performance.

Why It Matters

This filing signals potential restructuring or divestment, which could lead to one-time costs or benefits, impacting Definitive Healthcare's financial outlook and stock valuation.

Risk Assessment

Risk Level: medium — Exit or disposal activities carry medium risk due to potential one-time costs, operational disruptions, or strategic shifts that could affect future performance.

Analyst Insight

A smart investor would monitor Definitive Healthcare Corp.'s upcoming financial reports for specific details on the nature, scope, and financial impact of these 'exit or disposal activities' to assess long-term strategic implications.

Key Players & Entities

• Definitive Healthcare Corp. (company) — the registrant filing the 8-K
• January 3, 2024 (date) — date of the earliest event reported
• January 4, 2024 (date) — date the 8-K was filed
• 492 Old Connecticut Path, Suite 401, Framingham, Massachusetts 01701 (address) — principal executive offices of Definitive Healthcare Corp.
• 508-720-4224 (phone_number) — registrant's telephone number
• Class A Common Stock, $0.001 par value (security) — title of class of securities registered
• DH (ticker) — trading symbol for Definitive Healthcare Corp.
• The NASDAQ Stock Market LLC (exchange) — exchange where Definitive Healthcare Corp. stock is registered

FAQ

Key Financial Figures

• $0.001 — hich Registered Class A Common Stock, $0.001 par value DH The NASDAQ Stock Marke
• $6.5 million — GAAP financial results of approximately $6.5 million to $7.2 million, consisting primarily o
• $7.2 m — esults of approximately $6.5 million to $7.2 million, consisting primarily of severanc
• $1.5 million — ash expenses, as well as an approximate $1.5 million non-cash charge related to the vesting

Filing Documents

• dh-20240103.htm (8-K) — 53KB
• dh-ex99_1.htm (EX-99.1) — 15KB
• 0000950170-24-001529.txt ( ) — 194KB
• dh-20240103_lab.xml (EX-101.LAB) — 18KB
• dh-20240103.xsd (EX-101.SCH) — 2KB
• dh-20240103_pre.xml (EX-101.PRE) — 11KB
• dh-20240103_htm.xml (XML) — 4KB

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On January 3, 2024, the Company committed to a restructuring plan (the “Plan”) intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth. The Plan provides for a reduction of the Company’s current workforce by 154 people. The Company estimates that in the first half of 2024 it will incur pre-tax cash restructuring and related charges to its GAAP financial results of approximately $6.5 million to $7.2 million, consisting primarily of severance payments, employee benefits, and related cash expenses, as well as an approximate $1.5 million non-cash charge related to the vesting of share-based awards for employees who are terminated. The Company expects the Plan will be substantially complete by the end of the second quarter of 2024. The estimates of the charges and expenditures that the Company expects to incur in connection with the Plan, and the timing thereof, are subject to a number of assumptions and actual amounts may differ materially from estimates. In addition, the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with the implementation of the Plan.

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. A letter to the Company’s employees from Robert Musslewhite, the Company’s Chief Executive Officer, regarding the employee restructuring under the Plan is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The information furnished in this Item 7.01 on this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing. Cautionary Note Regarding Forward-Looking Statements This Current Report on Form 8-K and Exhibit 99.1 furnished herewith and incorporated by reference herein, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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,” “will,” “contemplates,” “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. Examples of forward-looking statements include, but are not limited to, statements regarding the timing of completion of the Plan, estimates of the charges and expenditures that the Company expects to incur in connection with the Plan,

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. 99.1 Email to Definitive Healthcare employees from Robert Musslewhite, dated January 4, 2024 (furnished herewith pursuant to Item 7.01). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DEFINITIVE HEALTHCARE CORP. By: /s/ Richard Booth Name: Richard Booth Title: Chief Financial Officer Date: January 4, 2024

View Full Filing

View this 8-K filing on SEC EDGAR