Core Insights - Dun & Bradstreet reported revenue of $579.8 million for Q1 2025, a year-over-year increase of 2.7%, with an EPS of $0.21 compared to $0.20 a year ago, slightly missing the revenue estimate by 0.02% but exceeding EPS expectations by 5% [1][2]. Revenue Breakdown - North America revenue was $398 million, exceeding the average estimate of $397.23 million, reflecting a year-over-year increase of 3% [4]. - International revenue reached $181.80 million, slightly below the average estimate of $183.19 million, with a year-over-year change of 2.2% [4]. - Sales & Marketing revenue internationally was $59 million, surpassing the average estimate of $57.94 million, marking a 1.9% year-over-year increase [4]. - North America Sales & Marketing revenue was $181.40 million, below the average estimate of $182.89 million, with a year-over-year change of 1.6% [4]. - International Finance & Risk revenue was $122.80 million, compared to the average estimate of $125.25 million, showing a year-over-year increase of 2.3% [4]. - North America Finance & Risk revenue was $216.60 million, exceeding the average estimate of $214.33 million, with a year-over-year increase of 4.1% [4]. - Total Sales & Marketing revenue was $240.40 million, slightly below the average estimate of $241.55 million, reflecting a year-over-year change of 1.7% [4]. - Total Finance & Risk revenue was $339.40 million, exceeding the average estimate of $338.39 million, with a year-over-year increase of 3.4% [4]. Stock Performance - Dun & Bradstreet's shares returned -0.2% over the past month, outperforming the Zacks S&P 500 composite's -0.7% change, and currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3].

Company Performance - Dun & Bradstreet reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing a year-over-year increase from $0.20 per share [1] - The company posted revenues of $579.8 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.02%, but up from $564.5 million a year ago [2] - Over the last four quarters, Dun & Bradstreet has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Movement and Outlook - Dun & Bradstreet shares have declined approximately 28% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $595.09 million, and for the current fiscal year, it is $1.04 on revenues of $2.46 billion [7] Industry Context - The Business - Information Services industry, to which Dun & Bradstreet belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current estimate revisions trend for Dun & Bradstreet is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Acquisition - The company entered into a definitive agreement to be acquired by Clearlake Capital Group, L.P. for approximately $7.7 billion, with an equity value of $4.1 billion, expected to close in Q3 2025[146][147]. Client Base and Revenue Sources - As of December 31, 2024, the company had a global client base of approximately 215,000, serving various industries including financial services, technology, and government[143]. - The company generated approximately 30% of its revenues from non-U.S. markets, making it susceptible to fluctuations in foreign currency exchange rates[153]. - The company’s revenue is primarily generated through subscription-based contracts, providing data and analytics services to clients[157]. Financial Performance - Total revenue for Q1 2025 was $579.8 million, an increase of $15.3 million or 2.7% compared to $564.5 million in Q1 2024[177]. - Adjusted EBITDA for Q1 2025 was $210.9 million, up from $201.3 million in Q1 2024, reflecting a margin of 36.4% compared to 35.7%[175]. - Adjusted net income for Q1 2025 was $90.9 million, compared to $85.0 million in Q1 2024, resulting in adjusted net earnings per diluted share of $0.21 versus $0.20[175]. - Operating income for Q1 2025 was $35.3 million, an increase from $16.6 million in Q1 2024[174]. - Net income attributable to Dun & Bradstreet Holdings, Inc. for Q1 2025 was a loss of $15.8 million, improving from a loss of $23.2 million in Q1 2024[176]. - The company reported a net income margin of (2.7)% for Q1 2025, compared to (4.1)% in Q1 2024[174]. - The increase in total revenue was attributed to growth in the underlying business and positive foreign exchange impacts, with a 3.6% increase before the effect of foreign exchange[177]. Cost Management and Expenses - Interest expense for Q1 2025 was $52.9 million, significantly reduced from $85.3 million in Q1 2024[174]. - Restructuring charges for Q1 2025 were $2.9 million, down from $3.4 million in Q1 2024[174]. - Interest expense decreased by $32.4 million to $52.9 million, primarily due to the write-off of debt issuance costs in the prior year[197]. Regional Performance - North America revenue increased by $11.4 million, or 2.9%, with Finance & Risk segment growing by $8.5 million (4.1%) and Sales & Marketing by $2.9 million (1.6%) compared to the prior year[179][180][181]. - International revenue increased by $3.9 million, or 2.2%, with Finance & Risk segment growing by $2.8 million (2.3%) and Sales & Marketing by $1.1 million (1.9%) compared to the prior year[182][183][184]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2025, totaled $241.3 million, with $207.4 million held by foreign operations, including $74.9 million from China and India subsidiaries[207]. - Net cash provided by operating activities decreased by $22.0 million to $136.9 million for the three months ended March 31, 2025, primarily due to higher income tax payments[209][210]. - The company reported a decrease in net cash used in financing activities by $31.1 million, primarily due to lower term loan repayments and higher net proceeds from borrowings on the Revolving Facility[213]. Debt and Taxation - Total debt as of March 31, 2025, was $3,547.6 million, with $3,516.6 million classified as long-term debt[215]. - The effective tax rate for the three months ended March 31, 2025, was (2.7)%, compared to 66.0% for the same period in 2024, mainly due to an uncertain tax position benefit from an audit settlement[200]. Future Outlook and Risks - Future capital requirements will depend on various unpredictable factors, including potential acquisitions and market conditions, with the company actively managing interest rate risks through swaps[206][218]. - The company expects operating cash requirements in 2025 to be primarily related to interest payments, contractual obligations, and tax liabilities, with a potential $31 million impact from a 100 basis point change in interest rates[211]. - The company is exposed to risks from geopolitical conflicts, including the ongoing Russian-Ukraine war, which may impact global economic growth and client spending[154][155]. Operational Efficiency - The company reported strong operating leverage and high client retention due to its proprietary data and analytics solutions, contributing to significant free cash flow[144]. - The company’s Finance & Risk solutions are critical for clients in decision-making processes, particularly in extending business loans and trade credit[141]. - The company’s Sales & Marketing solutions help clients optimize their sales strategies, enhancing efficiency in advertising campaigns[160]. Shareholder Returns - The company has authorized a stock repurchase program allowing for the repurchase of up to 10 million shares, with 961,360 shares repurchased for $9.3 million at an average price of $9.71 per share since inception[152].

Revenue Growth - Dun & Bradstreet reported a 3.6% organic revenue growth for Q1 2025, with adjusted net earnings increasing by 6.9%[3] - Revenue for Q1 2025 was $579.8 million, an increase of 2.3% compared to $564.5 million in Q1 2024[31] - Total revenue for Q1 2025 was $579.8 million, an increase from $564.5 million in Q1 2024, representing a growth of 2.0%[39] - International revenue was $579.8 million, an increase of 2.7%, with adjusted EBITDA of $210.9 million, up 4.8% compared to the prior year[7] - Finance and Risk revenue grew by 4.1% to $216.6 million, while Sales and Marketing revenue increased by 1.6% to $181.4 million[8] Financial Performance - The company reported a GAAP net loss of $15.8 million for Q1 2025, an improvement from a net loss of $23.2 million in the prior year[7] - Net loss attributable to Dun & Bradstreet Holdings, Inc. was $15.8 million in Q1 2025, compared to a net loss of $23.2 million in Q1 2024, a reduction of 31.8%[31] - Adjusted net income for Q1 2025 was $90.9 million, up from $85.0 million in Q1 2024, indicating a growth of 4.6%[40] - Adjusted net earnings per diluted share increased to $0.21 in Q1 2025 from $0.20 in Q1 2024[40] Cash and Debt Management - As of March 31, 2025, Dun & Bradstreet had cash and cash equivalents of $241.3 million and total debt of $3,547.6 million[11] - Cash and cash equivalents increased to $241.3 million as of March 31, 2025, compared to $205.9 million at the end of 2024[34] - Total liabilities decreased to $5,434.5 million as of March 31, 2025, from $5,441.3 million at the end of 2024[33] - Interest expense decreased significantly to $52.9 million in Q1 2025 from $85.3 million in Q1 2024, a reduction of 38.0%[31] Operating Metrics - Operating income improved to $35.3 million in Q1 2025 from $16.6 million in Q1 2024, representing a 112.6% increase[31] - Adjusted EBITDA for Q1 2025 was $210.9 million, up from $201.3 million in Q1 2024, reflecting a margin increase to 36.4% from 35.7%[36] - The adjusted EBITDA margin for North America was 41.8%, while the international adjusted EBITDA margin was 36.4%[5][10] - Total operating costs for Q1 2025 were $411.1 million, compared to $396.4 million in Q1 2024, marking an increase of 3.7%[39] Shareholder Actions - Since the inception of the Stock Repurchase Program, 961,360 shares have been repurchased for $9.3 million, with no activity during Q1 2025[12] - The company will not declare or pay any dividends as part of the agreement with Clearlake[13] Future Guidance - The company has suspended forward-looking guidance due to a proposed transaction with Clearlake Capital Group[14] Other Financial Metrics - Deferred revenue increased to $660.7 million as of March 31, 2025, compared to $555.9 million at the end of 2024, indicating growth in future revenue recognition[33] - The weighted average number of shares outstanding (diluted) increased to 438.0 million in Q1 2025 from 435.7 million in Q1 2024[40] - The company incurred restructuring charges of $2.9 million in Q1 2025, slightly down from $3.4 million in Q1 2024[40] - Incremental amortization of intangible assets was $102.5 million in Q1 2025, down from $110.8 million in Q1 2024[40]

Core Viewpoint - Wohl & Fruchter LLP is investigating the fairness of the proposed sale of Dun & Bradstreet Holdings, Inc. (DNB) to Clearlake Capital for $9.15 per share, which is below the price targets set by multiple Wall Street analysts and significantly lower than DNB's 52-week high of $12.95 per share, indicating a potentially opportunistic deal [1][3]. Group 1 - The sale price of $9.15 per share is below the price targets of at least seven Wall Street analysts, suggesting concerns about the fairness of the offer [1][3]. - The proposed sale price is significantly lower than DNB's 52-week high of $12.95 per share, raising questions about the motivations behind the deal [1][3]. - Wohl & Fruchter LLP is examining whether the DNB Board of Directors acted in the best interests of shareholders and if all material information regarding the transaction has been disclosed [4]. Group 2 - Analysts have set various price targets for DNB, with the highest being $17.00 per share from Deutsche Bank, followed by targets of $15.00, $14.00, $12.00, $11.00, and $10.00 from other firms [5]. - The investigation aims to determine if the agreed sale price is fair to DNB shareholders [4]. - Wohl & Fruchter LLP has a history of representing investors in litigation related to corporate misconduct, recovering significant damages for investors [4].

Group 1 - Monteverde & Associates PC has recovered millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1] - The firm is investigating Dun & Bradstreet Holdings, Inc. regarding its proposed merger with Clearlake Capital Group, L.P. [1] - Under the merger agreement, Dun & Bradstreet shareholders will receive $9.15 in cash for each share of common stock [1] Group 2 - Monteverde & Associates PC is a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court [2] - The firm operates from the Empire State Building in New York City [2] - The firm encourages shareholders with concerns to contact them for additional information [3]

Group 1 - The ideal investment is characterized by core business operations in sectors expected to grow structurally at rates exceeding GDP growth over the next 5-10 years [1] - Profits should stem from sustainable competitive advantages that lead to attractive unit economics [1] - The investment should be managed by competent, ethical, and long-term thinkers, and should be fairly valued [1]

Revenue and Operations - The company generated approximately 31% of its total revenue from international operations for the years ended December 31, 2024, 2023, and 2022[368]. - The company generated $2,381.7 million in revenue for the year ended December 31, 2024, an increase of 2.9% from $2,314.0 million in 2023[391]. - Dun & Bradstreet's revenue is primarily generated from licensing data and providing related services, with a focus on Finance & Risk and Sales & Marketing solutions[411]. - The company operates through two segments: North America and International, providing analytics and business insights across various regions[413]. - Revenue recognition follows a five-step process, ensuring that revenue reflects the consideration expected in exchange for goods or services[417]. - The company recognizes revenue ratably for performance obligations satisfied over time, particularly for continuous access to data products[425]. - Revenue from licensing data to alliance partners is recognized upon delivery, with contract consideration often based on sales or usage-based royalties[432]. - Contracts often include multiple performance obligations, with transaction prices allocated based on relative standalone selling prices[433]. - Variable consideration is allocated to performance obligations if terms relate specifically to efforts in satisfying those obligations[434]. - Total future revenue allocated to unsatisfied performance obligations as of December 31, 2024, is $3,238.4 million, with $1,367.2 million expected in 2025[501]. - Total revenue recognized for the year ended December 31, 2024, was $2,381.7 million, representing an increase of 2.9% from $2,314.0 million in 2023[503]. - Revenue recognized at a point in time decreased to $957.6 million in 2024 from $972.4 million in 2023, while revenue recognized over time increased to $1,424.1 million from $1,341.6 million[503]. Financial Performance - Operating income for 2024 was $194.8 million, up from $140.3 million in 2023, reflecting a growth of 38.7%[391]. - The net loss attributable to Dun & Bradstreet Holdings, Inc. was $28.6 million for 2024, an improvement from a net loss of $47.0 million in 2023[391]. - Net income for 2024 was a loss of $24.5 million, an improvement from a loss of $43.7 million in 2023, but down from a profit of $4.1 million in 2022[398]. - The company incurred restructuring charges of $16.9 million in 2024, compared to $13.2 million in 2023, indicating an increase of 27.9%[391]. - The company reported total assets of $8,755.7 million as of December 31, 2024, down from $9,135.9 million in 2023, indicating a decrease of 4.2%[396]. - Total liabilities decreased to $5,441.3 million in 2024 from $5,704.3 million in 2023, a reduction of 4.6%[396]. - Cash and cash equivalents increased to $205.9 million in 2024 from $188.1 million in 2023, representing a growth of 9.3%[396]. - The company’s accumulated deficit increased to $(839.7) million in 2024 from $(811.1) million in 2023[396]. - The company’s total stockholders' equity decreased to $3,298.5 million in 2024 from $3,419.1 million in 2023, a decline of 3.5%[396]. - The company reported a net loss of $47.0 million for the year ended December 31, 2023, compared to a net loss of $2.3 million in 2022[401]. - Total stockholders' equity decreased to $3,431.6 million as of December 31, 2023, down from $3,508.4 million at the end of 2022, reflecting a decline of approximately 2.2%[401]. - The company declared dividends totaling $87.5 million in 2023, an increase from $43.6 million in 2022[401]. - Payments of dividends increased to $87.5 million in 2024 from $86.1 million in 2023[398]. - The company reported deferred cloud computing arrangement implementation costs of $40.1 million and $36.9 million as of December 31, 2024 and 2023, respectively[461]. Debt and Interest - Total interest payments for the year ended December 31, 2024, were $214.5 million, with a weighted average interest rate of 5.920%[367]. - A 100 basis point increase or decrease in the weighted average interest rate on outstanding debt would result in an incremental increase or decrease in annual interest expense of approximately $31 million for the year ended December 31, 2024[367]. - Interest payments for 2024 were $214.5 million, slightly up from $213.3 million in 2023[398]. Foreign Exchange and Risk Management - The notional amounts of foreign exchange contracts were $583.5 million and $653.1 million as of December 31, 2024, and December 31, 2023, respectively[370]. - Realized gains and losses associated with foreign exchange contracts for the year ended December 31, 2024, were $32.7 million and $33.5 million, respectively[370]. - If exchange rates were to increase or decrease by 10% from year-end 2024 levels, unrealized losses or gains on foreign exchange forward contracts would be approximately $51 million[371]. - The company uses interest rate swaps to manage the impact of interest rate changes on earnings, aiming to mitigate future cash flow variations[366]. - The company’s foreign exchange forward contracts are primarily denominated in British pound sterling, Euro, Swedish Krona, and Norwegian Krone[369]. Pension and Employee Benefits - The benefit obligation at the beginning of 2024 was $1,417.5 million, decreasing to $1,309.3 million by the end of the year, reflecting a change of $108.2 million[536]. - The fair value of plan assets at the beginning of 2024 was $1,282.7 million, which decreased to $1,204.2 million by year-end, resulting in a net funded status of $(105.1) million[536]. - The accumulated benefit obligation decreased from $1,410.9 million in 2023 to $1,303.8 million in 2024[542]. - The company reported an actuarial gain of $63.8 million for the year ended December 31, 2024, primarily due to changes in discount rates and mortality assumptions[540]. - The net periodic pension cost for 2024 was $(17.5) million, compared to $(16.3) million in 2023[546]. - The underfunded accumulated benefit obligation decreased from $133.8 million in 2023 to $105.1 million in 2024[543]. - The company’s pension plans had a service cost of $1.7 million for the year ended December 31, 2024[546]. - The company recorded a settlement gain of $0.4 million for the year ended December 31, 2024[546]. - The total amount recognized in accumulated other comprehensive loss was $79.9 million for the year ended December 31, 2024[542]. - The projected benefit obligation discount rate increased to 5.23% for 2024 from 4.57% in 2023[551]. - The expected long-term return on plan assets is projected at 5.70% for 2024, up from 5.60% in 2023[551]. - The rate of compensation increase for determining projected benefit obligation is 2.88% for 2024, slightly up from 2.87% in 2023[551]. - The actuarial loss for 2024 is projected at $(4.8) million, compared to a gain of $1.1 million in 2023[547]. - The amortization of actuarial loss for 2024 is $(2.2) million, compared to $(0.7) million in 2023[547]. - The company applies a yield curve approach to measure the present value of pension plan obligations[553]. - The investment objective for the U.S. Qualified Plan is to achieve a long-term total return that matches the expected long-term rate of return assumption[556]. - The mortality assumption used is based on the PRI 2012 mortality table with adjustments for COVID-19 factors[554]. - The weighted average expected long-term return on plan assets was 5.60% for 2023, reflecting long-term capital market return forecasts[552]. - The company emphasizes long-term growth of principal while avoiding excessive risk to finance pension obligations[556]. Stockholder Equity and Compensation - The company’s weighted average number of shares outstanding-basic was 432.4 million in 2024, slightly up from 430.5 million in 2023[391]. - Stock-based compensation expense for 2024 was $67.6 million, a decrease from $83.4 million in 2023[516]. - The fair value of shares vested for restricted stock and restricted stock units in 2024 was $42.1 million, up from $30.9 million in 2023[527]. - Total unrecognized compensation cost related to non-vested restricted stock and restricted stock units was $42.2 million as of December 31, 2024[526]. - The increase in long-term contract assets from $18.0 million in 2023 to $32.8 million in 2024 was primarily due to new contract assets recognized[504]. - The weighted average grant date fair value per share of restricted stock and restricted stock units granted for 2023 was $11.27[526].

Financial Performance (GAAP) - Fourth Quarter 2024 revenue reached $631.9 million, a 0.2% increase[9] - Full Year 2024 revenue totaled $2,381.7 million, up by 2.9%[9] - Net income for Q4 2024 was $7.8 million, compared to $1.7 million in Q4 2023[9] - Full Year 2024 net loss was $(28.6) million, an improvement from $(47.0) million in FY 2023[9] Financial Performance (Non-GAAP) - Organic revenue grew by 0.3% in Q4 2024 and 3.0% for the full year[11] - Adjusted EBITDA for Q4 2024 was $260.0 million, a decrease of 0.2%, while the full year reached $926.6 million, a 3.9% increase[11] - Adjusted EBITDA margin was 41.2% for Q4 2024 and 38.9% for the full year[11] - Adjusted net income was $129.0 million for Q4 2024 and $429.1 million for the full year[11] North America Performance - North America Q4 revenue decreased to $448.6 million[13] - North America full year revenue increased to $1,672.3 million[17] - North America Q4 Adjusted EBITDA margin decreased by 270 bps to 46.3%[13] International Performance - International Q4 revenue increased to $183.3 million[21] - International full year revenue increased to $709.4 million[28] - International full year Adjusted EBITDA margin increased by 100 bps to 33.2%[30] Debt and Guidance - Total debt was $3,550 million, with net debt at $3,344 million and a net debt/EBITDA ratio of 3.6x[33] - The company anticipates total revenue between $2,440 million and $2,500 million for full year 2025[35]

Financial Data and Key Metrics Changes - For Q4 2024, revenues were $632 million, showing less than 1% growth compared to the prior year quarter, both after and before the effect of foreign exchange [35] - Full year 2024 revenues reached $2,382 million, an increase of 3%, both after and before the effect of foreign exchange [36] - Net income for Q4 was $8 million, compared to $2 million in the prior year quarter, driven by lower net personnel costs [35] - Full year net loss was $29 million, an improvement from a net loss of $47 million in the prior year [36] - Adjusted EBITDA for Q4 was $260 million, a decrease of less than 1% compared to the prior year quarter [38] - Full year adjusted EBITDA was $927 million, an increase of 4% [40] Business Line Data and Key Metrics Changes - In North America, Q4 revenues were $449 million, a decrease of 1.8% from the prior year quarter [42] - Finance and Risk revenues in North America for Q4 were $229 million, a decrease of 5% [42] - Sales and Marketing revenues in North America for Q4 were $219 million, an increase of 2% [42] - International segment Q4 revenues were $183 million, an increase of 6% [48] - Full year International revenues increased 6% to $709 million [52] Market Data and Key Metrics Changes - North America Finance and Risk full year revenues were $891 million, an increase of less than 1% [45] - International Finance and Risk full year revenues of $484 million increased 8% [52] - Organic revenues on a constant currency basis for International were 6% for the full year [52] Company Strategy and Development Direction - The company is focused on a vertical approach to deepen client relationships and launch vertical-specific solutions in 2025 [22] - Significant progress was made in technology transformation, including the migration of clients to modern solutions [15][21] - The company aims to enhance its go-to-market strategy by leveraging its modernized technology and platforms [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for future growth, citing the completion of significant transformations and a strong foundation for sustainable growth [21][33] - The ongoing strategic review process is expected to conclude in the first quarter of 2025, which may impact client behavior and revenue timing [70][120] - Management noted strong demand for risk analytics and compliance solutions, despite some revenue shifts due to client migrations [76][80] Other Important Information - The company reduced net leverage to 3.6% at year-end 2024 and aims to reach around 3.25% by the end of 2025 [57][65] - The company did not execute any share repurchases in Q4 2024, with a total of 961,360 shares repurchased year-to-date [59] Q&A Session Summary Question: Impact of distractions on revenue and guidance - Management acknowledged that distractions from the ongoing strategic review affected deal closures, but expects most delayed revenues to materialize in early 2025 [70][72] Question: Demand for products amid geopolitical shifts - Management confirmed strong demand for solutions addressing supply chain issues and tariffs, attributing Q4 revenue declines to factors other than demand [75][76] Question: Timing of revenue growth and assumptions - Management indicated that Q1 growth is expected to be at the low end of guidance due to ongoing processes, while Q4 should be closer to the high end [86][88] Question: Exit of non-strategic partnerships - Management confirmed that the exits are largely complete, with a revenue impact of $6 million in Q4 and $14 million in 2025, but with a positive EBITDA outcome [92] Question: Strategic review process and options - Management stated that various options are being considered in the strategic review process, including potential divestitures [112][116] Question: Sales pipeline and demand environment - Management reported a consistent pipeline but noted some client hesitation due to the ongoing strategic review [118][120] Question: Revenue structure and delivery models - Management indicated that approximately 75% of revenue comes from ratable contracts, with a goal to shift more towards this model [128][130] Question: North America adjusted EBITDA margins - Management expects margin expansion in North America as the company scales up following the completion of migrations [135]