Dun & Bradstreet(DNB) - 2024 Q4 - Annual Report

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$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$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$8,755.7 million as of December 31, 2024, down from $9,135.9 million in 2023, indicating a decrease of 4.2$5,441.3 million in 2024 from $5,704.3 million in 2023, a reduction of 4.6$205.9 million in 2024 from $188.1 million in 2023, representing a growth of 9.3$(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$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$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$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].