Definitive Healthcare Stock: Commercial Intelligence SaaS

It’s easy to understand why the market assigns a premium to software-as-a–service (SaaS) business models. Typically, such companies have a broad customer base with no single customer accounting for more than a small fraction of revenues. They’re usually high-growth companies where the more customers brought on board, the higher the margins. And most importantly, they provide easy-to-follow metrics that anyone can understand – even an MBA.

Annual recurring revenues (ARR) better be growing steadily, gross retention rate ought to be in the high 90s, and net retention rate ought to be above 100%. Those three metrics alone can tell you a lot about a SaaS business’s health. We love SaaS business models so much we recently added a flag to our tech stock catalog which denotes whether a company is “pure SaaS,” “some SaaS,” or “no SaaS.” Today, we’re going to talk about a pure SaaS play called Definitive Healthcare (DH).

About Definitive Healthcare Stock

Founded in 2011, Bahstun’s own Definitive Healthcare is a $3.65 billion company that recently has an initial