In its third-quarter letter, Baron Funds discussed stocks such as Definitive Healthcare Corp (NASDAQ:DH). Headquartered in Framingham, Massachusetts, Definitive Healthcare Corp (NASDAQ: DH) is a US-based healthcare business intelligence solutions provider. On October 28, 2022, Definitive Healthcare Corp.’s stock closed. (NASDAQ:DH) at $15.74 per share. Definitive Healthcare Corp.’s one-month return (NASDAQ:DH) was 1.29% and its shares have lost 60.79% of their value over the last 52 weeks. Definitive Healthcare Corp (NASDAQ: DH) has a market capitalization of $1.582 billion.
Baron Funds provided the following comment on Definitive Healthcare Corp.: (NASDAQ:DH) in our Q3 2022 investor letter:
“From the shares of Definitive Healthcare Corp. (NASDAQ:DH), a provider of business intelligence software to healthcare companies, underperformed due to concerns about slow sales cycles in an uncertain macroeconomic environment. Although second-quarter revenue increased 37% and exceeded expectations, current revenue performance commitments (a measure of revenue contracted for the next 12 months) beat management’s expectations by $3 million, or about 4% year-over-year. We attribute this to clients applying more scrutiny to new vendor contracts and introducing additional layers of management before contracts are terminated. Most importantly, Definitive continues to see strong demand at the top of the sales funnel. While we acknowledge that there is less certainty about near-term growth, we believe this is reflected in the current stock valuation and we see any macro headwinds related to temporary in nature. We continue to see Definitive as a quality company with impressive cash flow margins (around 30%), a diversified offering, and a long path of growth.”
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Definitive Healthcare Corp. (NASDAQ:DH) is not on our list of the 30 most popular hedge fund stocks. According to our database, 7 hedge fund portfolios held by Definitive Healthcare Corp (NASDAQ: DH) at the end of the second quarter were 12 in the previous quarter.
We discussed Definitive Healthcare Corp. (NASDAQ:DH) in another article and we shared Baron Funds’ opinions on the company. Additionally, please check out our Hedge Fund Investor Letters for Q3 2022 page for more investor letters from hedge funds and other major investors.
Disclosure: none. This article was originally published on Insider Monkey.