GLOSSARY
As used in this annual report on Form 10-K, the terms identified below have the meanings specified below unless otherwise noted or the context indicates otherwise. References in this Form 10-K 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-K 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. References to "Predecessor Company" refer to Definitive OpCo prior to July 16, 2019 and "Successor Company" refer to Definitive OpCo after July 15, 2019.
“Advent” refers to Advent International, a global private equity firm.
“Advent Acquisition” has the meaning given in Note 3 to our audited consolidated financial statements included in Part II, Item 8 of this Form 10-K. The acquisition was accounted for as a business combination and purchase accounting was applied.
"AIDH Buyer" refers to AIDH Buyer, LLC, which is a wholly owned subsidiary of Definitive OpCo.
“AIDH Management Holdings, LLC” is defined as a special purpose investment vehicle through which certain persons, primarily employees and certain legacy investors, indirectly hold interests in Definitive OpCo.
“Amended LLC Agreement” has the meaning given in Note 1 to our audited consolidated financial statements included in Part II, Item 8 of this Form 10-K.
“ARR” refers to annual recurring revenue, or annualized contractually recurring revenue as of period end, which is calculated by aggregating annual subscription revenue from committed contractual amounts for all existing customers during that period.
“Blocker Company” or “Blocker Companies” has the meaning given in Note 1 to our audited consolidated financial statements included in Part II, Item 8 of this Form 10-K.
"Definitive HoldCo" has the meaning given in Note 1 to our audited consolidated financial statements included in Part II, Item 8 of this Form 10-K.
“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 Definitive Healthcare Corp.
"Legacy Class A Units" has the meaning given in Note 12 to our audited consolidated financial statements included in Part II, Item 8 of this Form 10-K.
"Legacy Class B Units" has the meaning given in Note 12 to our audited consolidated financial statements included in Part II, Item 8 of this Form 10-K.
“LLC Units” has the meaning given within “Recent Developments” in Management’s Discussion and Analysis included in Part II, Item 7 of this Form 10-K.
“LTV” refers to customer lifetime value, or the value that we expect to generate from a customer during the period that the customer continues to subscribe to our healthcare commercial intelligence platform. We calculate LTV as the product of (i) our average ARR per customer as of period end, multiplied by (ii) our Adjusted Gross Margin, divided by (iii) the annual revenue churn rate, which is defined as the percentage of ARR associated with customers that cancel during the period divided by the ARR at the beginning of the period.
“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.
“Reorganization Transactions” has the meaning given in Note 1 to our audited consolidated financial statements included in Part II, Item 8 of this Form 10-K.
“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.
“22C Capital” refers to investment funds associated with 22C Capital LLC, a private equity firm.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K (this “Annual 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. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this Annual Report, 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. 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. 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.
SUMMARY OF RISK FACTORS
The following is a summary of the principal risks described below in Part I, Item 1A “Risk Factors” in this Annual Report. We believe that the risks described in the “Risk Factors” section are material to investors, but other factors not presently known to us or that we currently believe are immaterial may also adversely affect us. The following summary should not be considered an exhaustive summary of the material risks facing us, and it should be read in conjunction with the “Risk Factors” section and the other information contained in this Annual Report.