Cannae (CNNE) Q4 2024 Earnings Call February 24, 2025 05:00 PM ET Company Participants Jamie Lillis - Investor Relations-Solebury TroutRyan Caswell - PresidentBryan Coy - CFOJohn Campbell - Managing DirectorIan Zaffino - Managing DirectorKenneth Lee - Vice President Operator Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings Fourth Quarter twenty twenty four Financial Results Conference Call. During today's presentation, all parties will be in a listen only mode. Following the company' ...

Financial Performance - Dun & Bradstreet reported Q4 2024 total revenue of $632 million, with organic constant currency growth of less than 1% year-over-year, and full-year revenue of $2.38 billion, a 2.9% increase [9][13]. - Alight's Q4 2024 revenue was $680 million, down 0.3% from Q4 2023, but up 23% sequentially from Q3 2024, with BPaaS revenue growing nearly 10% to $146 million [21][22]. - Paysafe reported Q4 2024 total revenues of $420 million, an increase from $414.5 million in Q4 2023, with a net income of $34 million compared to a loss of $12.1 million [27]. - Revenue for Q4 2024 is estimated at $420 million, a 1% increase from Q4 2023, or 4% when excluding disposed business [31]. - Net income for Q4 2024 is expected to be between $31 million and $37 million, compared to a net loss of $12 million in Q4 2023 [31]. - Adjusted EBITDA for Q4 2024 is estimated at $103 million, a 16% decrease, or a 1% increase when excluding disposed business [31]. - Adjusted EBITDA for Dun & Bradstreet in Q4 2024 was $260 million, a slight decrease from the previous year, with an Adjusted EBITDA margin of 41.2% [14]. - Adjusted EBITDA for Alight increased 5.3% to $217 million in Q4 2024, with a margin improvement of 170 basis points year-over-year [22]. - Adjusted EBITDA for Paysafe was $103 million for Q4 2024, down from $121.7 million in Q4 2023, reflecting a decrease of approximately 15% [85]. - Adjusted EBITDA for Cannae Holdings in Q4 2024 was $1.4 million, a decrease from $2.4 million in Q4 2023, indicating a decline of approximately 42% [91]. Investments and Shareholder Actions - Cannae executed a Dutch tender auction, repurchasing over $200 million of shares and raised $470 million from portfolio company sales in 2024 [5]. - Cannae's portfolio company Alight initiated a quarterly dividend program and repurchased $12 million of shares in Q4 2024, totaling $167 million in buybacks for the year [23]. - Cannae holds 69 million shares of Dun & Bradstreet, valued at approximately $651 million as of February 21, 2025 [18]. - Cannae has invested $214 million in Black Knight Football, representing an approximate 47% ownership interest [50]. Net Income and Losses - Cannae's net loss attributable to common shareholders for Q4 2024 was $46.1 million, compared to a loss of $58.4 million in Q4 2023 [56]. - Net income attributable to Dun & Bradstreet was $7.8 million in Q4 2024, up from $1.7 million in Q4 2023 [76]. - Net income from continuing operations for Alight was $29.0 million in Q4 2024, a significant recovery from a loss of $121.0 million in Q4 2023 [79]. - Paysafe reported a net income of $34 million for the three months ended December 31, 2024, compared to a net loss of $12.1 million in the same period of 2023 [85]. - Cannae Holdings reported net earnings of $6.9 million for Q4 2024, down from $15.8 million in Q4 2023 [91]. Assets and Liabilities - Total current assets increased to $196.9 million in Q4 2024 from $177.3 million in Q4 2023, representing an increase of 9.1% [59]. - Total assets decreased to $2,228.9 million in Q4 2024 from $2,686.7 million in Q4 2023, a decline of 17.0% [59]. - Total liabilities increased to $413.6 million in Q4 2024 from $377.5 million in Q4 2023, an increase of 9.5% [59]. - Retained earnings decreased significantly to $567.1 million in Q4 2024 from $901.3 million in Q4 2023, a decrease of 37.0% [59]. Future Guidance - Alight provided 2025 revenue guidance of $2.32 billion to $2.39 billion, with Adjusted EBITDA expected between $620 million and $645 million [24]. - Full year 2025 revenue growth is expected to be between 6.5% and 8.0%, with adjusted EBITDA margin between 27.1% and 27.6% [32]. Miscellaneous - Cannae's net leverage at year-end 2024 was reduced to 3.6 times, down from 3.8 times at the end of 2023 [15]. - System1 reported total revenue of $88.8 million for Q3 2024, a $1 million increase from Q3 2023 [38]. - System1's adjusted EBITDA for Q3 2024 was $10.3 million, a 27% increase from $8.1 million in Q3 2023 [39]. - AFC Bournemouth is currently in 6th place in the Premier League, providing a place in European competition [45]. - The club has increased season ticket and matchday revenue by approximately 20% over the past two seasons [47]. - Cannae's investment in D&B is accounted for using the equity method, reflecting its proportionate share of D&B's net earnings or loss [74]. - Cannae's investment in Paysafe is accounted for at fair value, and its results do not consolidate into the Company's financials [82]. - Cannae Holdings will hold its fourth quarter 2024 conference call on February 24, 2025, at 5:00 pm ET [92]. - The company’s common stock is listed on the New York Stock Exchange under the symbol CNNE [96].

Group 1 - Cannae Holdings, Inc. (CNNE) shares have increased by 11.3% over the past four weeks, closing at $21.70, with a mean price target of $27.33 indicating a potential upside of 25.9% [1] - The average price targets range from a low of $27 to a high of $28, with a standard deviation of $0.58, suggesting a relatively high agreement among analysts regarding the stock's price movement [2][7] - Analysts are optimistic about CNNE's earnings prospects, as indicated by upward revisions in earnings estimates, which have shown a strong correlation with near-term stock price movements [4][9] Group 2 - The Zacks Consensus Estimate for CNNE has increased by 1.7% over the last 30 days, with no negative revisions, indicating positive sentiment among analysts [10] - CNNE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [11] - While consensus price targets may not be reliable for predicting the exact price movement, they can provide a useful directional guide for investors [12]

Cannae Holdings, Inc. (CNNE) closed the last trading session at $20.43, gaining 3.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $27.67 indicates a 35.4% upside potential.The average comprises three short-term price targets ranging from a low of $27 to a high of $28, with a standard deviation of $0.58. While the lowest estimate indicates an increase of 32.2% from the current pr ...

Cannae Holdings, Inc. (NYSE:CNNE) Q3 2024 Earnings Conference Call November 12, 2024 5:00 PM ET Company Participants Jamie Lillis - Solebury Strategic Communications Ryan Caswell - Chief Executive Officer Bryan Coy - Chief Financial Officer Conference Call Participants Kenneth Lee - RBC Capital Markets John Campbell - Stephens Ian Zaffino - Oppenheimer Operator Good afternoon, ladies and gentlemen, and welcome to the Cannae Holdings Third Quarter 2024 Financial Results Conference Call. During today’s presen ...

Cannae Holdings, Inc. (CNNE) came out with a quarterly loss of $0.22 per share versus the Zacks Consensus Estimate of a loss of $0.34. This compares to loss of $2.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35.29%. A quarter ago, it was expected that this company would post a loss of $0.29 per share when it actually produced a loss of $0.16, delivering a surprise of 44.83%.Over the last four quarters, the company has su ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-38300 CANNAE HOLDINGS, INC. _____________________________________________________________________________________________________________________________ ...

TM ANNAE Third Quarter 2024 Update CANNAE HOLDINGS, INC. / THIRD QUARTER 2024 UPDATE Forward-Looking Statements and Risk Factors This communication contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions, or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and inf ...

Compassionate Eye Foundation/David Oxberry/DigitalVision via Getty Images Cannae Holdings (NYSE:CNNE) is a holding company that was founded by Bill Foley, a billionaire and West Point graduate with a long term history of creating value for shareholders. CNNE gives you the opportunity to "tag along" with Bill Foley. It usually trades at a big discount to the "sum of the parts" or mark-to market valuation of the underlying portfolio. Management has recently increased efforts to reduce the discount. What Can C ...

Financial Data and Key Metrics Changes - Cannae Holdings reported a second quarter 2024 operating revenue decline of $35 million or 23% year-over-year, reflecting a 27% reduction in the number of restaurant locations [18] - The company recognized losses of $145 million in the second quarter, primarily due to a noncash impairment charge related to the Sightline investment [20] - Cannae's aggregate net asset value (NAV) was reported at $2.1 billion or $32.90 per share, compared to a closing price of $19.95 [22] Business Line Data and Key Metrics Changes - Dun & Bradstreet (D&B), Cannae's largest holding, reported second quarter revenue of $576 million, representing 4.3% year-over-year organic growth, an acceleration from 3.9% in the prior year [9] - Alight's second quarter revenue from continuing operations was $538 million, down 4% from $561 million in the prior year, with adjusted EBITDA of $105 million, representing a 19.5% margin compared to 21.2% in the previous year [12] - AFC Bournemouth's revenue for the 12 months ended June 30, 2024, grew to approximately $203 million, a 19% increase from $170 million in the prior year [13] Market Data and Key Metrics Changes - D&B's adjusted EBITDA grew by 5.7% in the second quarter, equating to $218 million at a 37.8% margin, up 60 basis points year-over-year [10] - Alight's net leverage decreased to 2.8 times after repaying $740 million of debt from the sale of its Payroll and Professional Services business [11] Company Strategy and Development Direction - Cannae's strategy focuses on improving portfolio company performance, making new investments in private businesses, and providing capital returns to shareholders through dividends and share repurchases [4] - The company aims to close the share price discount to NAV through these strategic pillars [5] - Cannae is actively seeking new investment opportunities, particularly in private markets, and plans to fund acquisitions by redeploying capital from public company investments [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about portfolio companies and highlighted efforts to drive revenue growth and improve cash flow [6] - The company acknowledged challenges with certain investments, particularly the impairment of Sightline due to lack of market adoption for key products [6][20] - Management remains confident in the strategic direction and potential for NAV growth [44] Other Important Information - Cannae plans to pay a second dividend of $0.12 per share on September 30, 2024, and has returned over $235 million to shareholders in 2024 through dividends and share buybacks [9] - The company has made significant progress in its portfolio companies, including the successful sale of Alight's Payroll and Professional Services business for up to $1.2 billion [5] Q&A Session Summary Question: Update on D&B investment thesis and valuation - Management reiterated that D&B was initially viewed as undervalued with strong data assets and market penetration, and they are frustrated with its current trading position despite operational improvements [25] Question: Investment expectations for AFC Bournemouth - Management indicated that capital needs for Bournemouth are still being assessed due to the ongoing transfer window, but some investment is expected [27] Question: Potential strategic sale of Alight - Management stated that while there is interest in Alight, capital allocation decisions will depend on market conditions and opportunities [31] Question: Capital allocation strategy - Management emphasized a balanced approach to capital allocation, considering both share buybacks and new investments [33] Question: Impairment charge for Sightline - Management clarified that the impairment was driven by lack of traction with legacy products and ongoing development challenges [42]