The nature of investing is that you win some, and you lose some. And unfortunately for Definitive Healthcare Corp. (NASDAQ:DH) shareholders, the stock is a lot lower today than it was a year ago. In that relatively short period, the share price has plunged 63%. We wouldn't rush to judgement on Definitive Healthcare because we don't have a long term history to look at. More recently, the share price has dropped a further 16% in a month. But this could be related to poor market conditions -- stocks are down 9.3% in the same time.

If the past week is anything to go by, investor sentiment for Definitive Healthcare isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Check out our latest analysis for Definitive Healthcare

Definitive Healthcare wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last twelve months, Definitive Healthcare increased its revenue by 38%. We think that is pretty nice growth. Meanwhile, the share price tanked 63%, suggesting the market had much higher expectations. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Definitive Healthcare is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Definitive Healthcare stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

We doubt Definitive Healthcare shareholders are happy with the loss of 63% over twelve months. That falls short of the market, which lost 17%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 6.5%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Definitive Healthcare better, we need to consider many other factors. Take risks, for example - Definitive Healthcare has 1 warning sign we think you should be aware of.