Definitive Healthcare Corp. (NASDAQ:DH) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a pretty bad result overall; while revenues were in line with expectations at US$63m, statutory losses exploded to US$1.12 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Definitive Healthcare

Following the recent earnings report, the consensus from eleven analysts covering Definitive Healthcare is for revenues of US$243.9m in 2025. This implies a small 4.7% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 95% to US$0.16. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$254.1m and losses of US$0.23 per share in 2025. Although the revenue estimates have fallen somewhat, Definitive Healthcare'sfuture looks a little different to the past, with a considerable decrease in the loss per share forecasts in particular.

The analysts have cut their price target 30% to US$5.28per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Definitive Healthcare analyst has a price target of US$7.00 per share, while the most pessimistic values it at US$4.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 3.8% annualised decline to the end of 2025. That is a notable change from historical growth of 21% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.8% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Definitive Healthcare is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Definitive Healthcare analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Definitive Healthcare has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.