DH (Definitive Healthcare) Gross Margin % : 78.20% (As of Sep. 2024)

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What is Definitive Healthcare Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Definitive Healthcare's Gross Profit for the three months ended in Sep. 2024 was $49.0 Mil. Definitive Healthcare's Revenue for the three months ended in Sep. 2024 was $62.7 Mil. Therefore, Definitive Healthcare's Gross Margin % for the quarter that ended in Sep. 2024 was 78.20%.

The historical rank and industry rank for Definitive Healthcare's Gross Margin % or its related term are showing as below:

DH' s Gross Margin % Range Over the Past 10 Years
Min: 74.25 Med: 78.19 Max: 81.11
Current: 79.46

During the past 5 years, the highest Gross Margin % of Definitive Healthcare was 81.11%. The lowest was 74.25%. And the median was 78.19%.

DH's Gross Margin % is ranked better than
85% of 620 companies
in the Healthcare Providers & Services industry
Industry Median: 40.985 vs DH: 79.46

Definitive Healthcare had a gross margin of 78.20% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Definitive Healthcare was 0.00% per year.

Definitive Healthcare Gross Margin % Historical Data

The historical data trend for Definitive Healthcare's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Definitive Healthcare Gross Margin % Chart

Definitive Healthcare Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

74.25

75.51

80.86

81.11

Definitive Healthcare Quarterly Data
	Jul19	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Gross Margin %	Get a 7-Day Free Trial															81.79	81.02	79.37	79.16	78.20

Competitive Comparison of Definitive Healthcare's Gross Margin %

For the Health Information Services subindustry, Definitive Healthcare's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Definitive Healthcare's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Definitive Healthcare's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Definitive Healthcare's Gross Margin % falls into.

Definitive Healthcare Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Definitive Healthcare's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	203.9	/	251.415
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(251.415 - 47.482)	/	251.415
	=	81.11 %

Definitive Healthcare's Gross Margin for the quarter that ended in Sep. 2024 is calculated as

Gross Margin % (Q: Sep. 2024 )	=	Gross Profit (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	49	/	62.697
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(62.697 - 13.666)	/	62.697
	=	78.20 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Definitive Healthcare (NAS:DH) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Definitive Healthcare had a gross margin of 78.20% for the quarter that ended in Sep. 2024 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Definitive Healthcare Gross Margin % Related Terms

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Definitive Healthcare Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Definitive Healthcare Corp (NAS:DH) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

492 Old Connecticut Path, Suite 401, Framingham, MA, USA, 01701

Website

https://www.definitivehc.com

Definitive Healthcare Corp is a provider of healthcare commercial intelligence. The company's solutions provide accurate and comprehensive information on healthcare providers and their activities to help customers optimize everything from product development to go-to-market planning and sales and marketing execution. Geographically, it derives a majority of its revenue from the United States.

Executives

Carrie Lazorchak	officer: Chief Revenue Officer	C/O DEFINITIVE HEALTHCARE CORP., 492 OLD CONNECTICUT PATH, SUITE 401, FRAMINGHAM MA 01701
Scott G Stephenson	director	C/O VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310-1686
Sea Vii Management, Llc	director, 10 percent owner	ONE INTERNATIONAL PLACE, SUITE 3520, BOSTON MA 02110
Advent International Gp, Llc	director, 10 percent owner	800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199
Spectrum Vii Investment Managers' Fund, L.p.	director, 10 percent owner	ONE INTERNATIONAL PLACE, 35TH FLOOR, BOSTON MA 02110
Jason Ronald Krantz	director, 10 percent owner, officer: Chief Executive Officer	C/O DEFINITIVE HEALTHCARE, LLC, 550 COCHITUATE ROAD, FRAMINGHAM MA 01701
Jonathan Maack	officer: President	C/O DEFINITIVE HEALTHCARE CORP., 550 COCHITUATE RD, FRAMINGHAM MA 01701
Sastry Chilukuri	director	5 BUDDY LANE, MORRISTOWN NJ 07960
David Randall Winn	director	7900 GLADES ROAD, SUITE 540, BOCA RATON FL 33434
Jeffrey Charles Haywood	director, 10 percent owner	C/O DEFINITIVE HEALTHCARE, LLC, 550 COCHITUATE ROAD, FRAMINGHAM MA 01701
Richard Douglas Booth	officer: Chief Financial Officer	200 CLARENDON STREET, T-9, BOSTON MA 02116
Kathleen A Winters	director	101 COLUMBIA ROAD, MORRISTOWN NJ 07960
Spectrum Vii Co-investment Fund, L.p.	director, 10 percent owner	ONE INTERNATIONAL PLACE, SUITE 3520, BOSTON MA 02110
Advent Global Technology-c Limited Partnership	director, 10 percent owner	PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069
Advent Global Technology-d Limited Partnership	director, 10 percent owner	PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069