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

Company Overview & Financial Highlights This section presents the CEO's strategic commentary and the company's consolidated financial performance for Q4 and the full year 2024 CEO Commentary CEO Anthony Jabbour highlighted 2024 as a year of significant progress, achieving 3% organic revenue growth and a 30 basis point expansion in EBITDA margins - Achieved 3% organic revenue growth and expanded EBITDA margins by 30 basis points in 2024[2] - Strengthened capital structure by reducing net leverage to 3.6 times[2] - Focus for 2025 includes expanding solution sets, supporting client needs to reduce costs, increase growth potential, and reduce risk through data, analytics, and generative AI[2] Consolidated Financial Performance (Q4 & Full Year 2024) Dun & Bradstreet reported mixed financial results for Q4 and full year 2024, with full-year revenue and Adjusted EBITDA increasing despite Q4 modest growth Consolidated Financial Highlights (Q4 and Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | YoY Change (Q4) | FY 2024 | FY 2023 | YoY Change (FY) | | :-------------------------------- | :------ | :------ | :-------------- | :-------- | :-------- | :-------------- | | Revenue | $631.9M | $630.4M | +0.2% | $2,381.7M | $2,314.0M | +2.9% | | Organic Revenue (constant currency) | +0.3% | N/A | N/A | +3.0% | N/A | N/A | | GAAP Net Income (Loss) | $7.8M | $1.7M | +358.8% | ($28.6M) | ($47.0M) | +39.1% | | Diluted EPS (GAAP) | $0.02 | < $0.01 | N/A | ($0.07) | ($0.11) | +36.4% | | Adjusted Net Income | $129.0M | $139.8M | -7.8% | $429.1M | $431.6M | -0.6% | | Adjusted EPS (Diluted) | $0.30 | $0.32 | -6.3% | $0.98 | $1.00 | -2.0% | | Adjusted EBITDA | $260.0M | $260.6M | -0.2% | $926.6M | $892.2M | +3.9% | | Adjusted EBITDA Margin | 41.2% | 41.3% | -0.1 pp | 38.9% | 38.6% | +0.3 pp | Geographic Segment Performance This section details the financial performance of the North America and International segments for Q4 and the full year 2024 North America Segment The North America segment experienced a slight revenue decrease in Q4 2024 but achieved modest revenue growth for the full year, with mixed EBITDA performance North America Segment Performance (Q4 and Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | YoY Change (Q4) | FY 2024 | FY 2023 | YoY Change (FY) | | :-------------------- | :------ | :------ | :-------------- | :-------- | :-------- | :-------------- | | Revenue | $448.6M | $456.8M | -1.8% | $1,672.3M | $1,644.5M | +1.7% | | Adjusted EBITDA | $207.8M | $223.7M | -7.1% | $745.8M | $743.3M | +0.3% | | Adjusted EBITDA Margin | 46.3% | 49.0% | -2.7 pp | 44.6% | 45.2% | -0.6 pp | North America Revenue by Solution Type In North America, Finance and Risk revenue decreased in Q4 2024 but showed slight growth for the full year, while Sales and Marketing revenue increased North America Revenue by Solution Type (Q4 and Full Year 2024 vs. 2023) | Solution Type | Q4 2024 Revenue | Q4 2023 Revenue | YoY Change (Q4) | FY 2024 Revenue | FY 2023 Revenue | YoY Change (FY) | | :-------------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Finance and Risk | $229.2M | $241.4M | -5.1% (-5.0% CC) | $891.0M | $888.1M | +0.3% (+0.4% CC) | | Sales and Marketing | $219.4M | $215.4M | +1.8% (+1.9% CC) | $781.3M | $756.4M | +3.3% | International Segment The International segment demonstrated strong revenue and organic growth in both Q4 and the full year 2024, alongside improved Adjusted EBITDA and margin International Segment Performance (Q4 and Full Year 2024 vs. 2023) | Metric | Q4 2024 | Q4 2023 | YoY Change (Q4) | FY 2024 | FY 2023 | YoY Change (FY) | | :-------------------- | :------ | :------ | :-------------- | :-------- | :-------- | :-------------- | | Revenue | $183.3M | $173.6M | +5.6% (+5.5% CC) | $709.4M | $669.5M | +6.0% (+5.6% CC) | | Organic Revenue (excl. divestiture/FX) | +5.8% | N/A | N/A | +6.0% | N/A | N/A | | Adjusted EBITDA | $58.1M | $55.2M | +5.2% | $235.3M | $215.4M | +9.2% | | Adjusted EBITDA Margin | 31.7% | 31.8% | -0.1 pp | 33.2% | 32.2% | +1.0 pp | International Revenue by Solution Type Internationally, Finance and Risk revenue showed strong growth in both Q4 and the full year 2024, while Sales and Marketing revenue saw mixed results International Revenue by Solution Type (Q4 and Full Year 2024 vs. 2023) | Solution Type | Q4 2024 Revenue | Q4 2023 Revenue | YoY Change (Q4) | FY 2024 Revenue | FY 2023 Revenue | YoY Change (FY) | | :-------------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------- | :-------------- | | Finance and Risk | $126.4M | $116.4M | +8.5% (+8.2% CC) | $484.5M | $448.6M | +8.0% (+7.6% CC) | | Sales and Marketing | $56.9M | $57.2M | -0.5% (-0.2% CC) | $224.9M | $220.9M | +1.8% (+1.6% CC) | | Sales and Marketing Organic Revenue (excl. divestiture/FX) | +0.8% (Q4) | N/A | N/A | +1.6% (FY) | N/A | N/A | Financial Position & Capital Structure This section reviews the company's balance sheet, liquidity, and stock repurchase activities as of December 31, 2024 Balance Sheet Overview As of December 31, 2024, Dun & Bradstreet maintained a cash position of $205.9 million and total principal debt of $3,550.4 million, with substantial revolving credit facility availability Key Balance Sheet Figures (as of December 31, 2024) | Metric | Amount | | :-------------------------------- | :------- | | Cash and Cash Equivalents | $205.9M | | Total Principal Amount of Debt | $3,550.4M | | Available Revolving Credit Facility | $840.0M | | Total Revolving Credit Facility | $850.0M | Stock Repurchase Program During 2024, Dun & Bradstreet repurchased 961,360 shares for $9.3 million at an average price of $9.71 per share, with no Q4 activity Stock Repurchase Program (Year Ended December 31, 2024) | Metric | Value | | :-------------------------------- | :---------- | | Shares Repurchased | 961,360 | | Total Cost (net of excise tax) | $9.3M | | Average Price Per Share | $9.71 | | Shares Remaining Under Authorization | > 9 million | - No share repurchase activity occurred during the fourth quarter of 2024[16] Business Outlook This section provides Dun & Bradstreet's financial guidance for 2025, including projections for revenue, organic revenue growth, Adjusted EBITDA, and Adjusted EPS 2025 Financial Guidance Dun & Bradstreet provided its financial outlook for 2025, projecting revenue growth between 2.5% and 5.0%, organic revenue growth of 3.0% to 5.0%, Adjusted EBITDA in the range of $955 million to $985 million, and Adjusted EPS between $1.01 and $1.07 2025 Business Outlook | Metric | Range | | :-------------------------------- | :-------------------- | | Revenue (after FX impact) | $2,440M to $2,500M (2.5% to 5.0%) | | Organic Revenue Growth | 3.0% to 5.0% | | Adjusted EBITDA | $955M to $985M | | Adjusted EPS | $1.01 to $1.07 | - Forward-looking statements reflect expectations as of the report date and assume constant foreign currency rates[17] About Dun & Bradstreet Dun & Bradstreet is a leading global provider of business decisioning data and analytics, empowering companies to enhance performance and mitigate risk - Dun & Bradstreet is a leading global provider of business decisioning data and analytics[19] - Its Data Cloud fuels solutions that help customers accelerate revenue, lower cost, mitigate risk, and transform their businesses[19] - The company has been assisting businesses with risk management and opportunity identification since 1841[19] Use of Non-GAAP Financial Measures This section explains the rationale and definitions for the non-GAAP financial measures used by Dun & Bradstreet to provide clearer insights into performance Explanation and Rationale Dun & Bradstreet uses non-GAAP measures to provide investors with useful information on operating trends and performance comparability, adjusting for non-core items - Non-GAAP measures provide useful information for investors and rating agencies on results, operating trends, and performance comparability[20][21] - Adjustments include acquisition/divestiture-related expenses, restructuring charges, equity-based compensation, transition costs, and other non-core items[21] - Excludes amortization of recognized intangible assets from purchase accounting, as these are non-cash and not indicative of ongoing operating performance[21] Organic Revenue Definition Organic revenue is defined as reported revenue adjusted for foreign exchange effects and excluding revenue from acquired or divested businesses - Organic revenue is reported revenue before foreign exchange effects, excluding revenue from acquired businesses (first 12 months) and divested businesses[23] - This measure helps investors and analysts understand the Company's underlying revenue trends by isolating M&A impacts[23] Adjusted EBITDA and Adjusted EBITDA Margin Definition Adjusted EBITDA is calculated by adjusting net income for non-cash and non-operating items, with Adjusted EBITDA margin derived by dividing by revenue - Adjusted EBITDA excludes depreciation, amortization, interest expense/income, income tax, and other non-operating items from net income (loss)[24] - Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue[25] Adjusted Net Income Definition Adjusted net income starts with net income and applies adjustments for various non-recurring or non-operating items to reflect ongoing performance - Adjusted net income adjusts for equity in net income of affiliates, non-controlling interests, equity-based compensation, restructuring charges, and M&A-related operating costs[26] - It also excludes transition costs related to technology and back-office infrastructure transformation, which are incremental and non-recurring[26] - Incremental amortization of intangible assets from purchase accounting is excluded as it is non-cash and not indicative of ongoing operating performance[26] Adjusted Net Earnings Per Diluted Share Definition Adjusted net earnings per diluted share is calculated by dividing adjusted net income by the weighted average diluted common shares outstanding - Calculated by dividing adjusted net income (loss) by the weighted average diluted common shares outstanding[27] Forward-Looking Statements & Risk Factors This section outlines that statements in the release not purely historical are forward-looking, based on management's beliefs and assumptions, and subject to material differences from actual results due to various risks and uncertainties - Forward-looking statements are based on management's beliefs and assumptions, and actual results may differ materially due to various risks[28] - Key risks include the ability to execute strategic plans, competition, brand reputation, global economic conditions, cybersecurity, data integrity, system failures, and dependence on data sources and partners[29] - Additional risks relate to international operations, intellectual property, artificial intelligence systems, acquisitions, employee retention, regulatory compliance, and geopolitical conflicts[29][30] Consolidated GAAP Financial Statements This section presents the company's official GAAP financial statements, including statements of operations, balance sheets, and cash flows Consolidated Statements of Operations The consolidated statements of operations show Dun & Bradstreet's GAAP financial performance for Q4 and the full year 2024, detailing revenue, operating costs, and net income/loss Consolidated Statements of Operations (GAAP, In millions, except per share data) | Metric | Three months ended Dec 31, 2024 | Three months ended Dec 31, 2023 | Year ended Dec 31, 2024 | Year ended Dec 31, 2023 | | :---------------------------------------------------- | :------------------------------ | :------------------------------ | :---------------------- | :---------------------- | | Revenue | $631.9 | $630.4 | $2,381.7 | $2,314.0 | | Operating costs | $553.0 | $566.6 | $2,186.9 | $2,173.7 | | Operating income (loss) | $78.9 | $63.8 | $194.8 | $140.3 | | Net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $7.8 | $1.7 | ($28.6) | ($47.0) | | Diluted earnings (loss) per share | $0.02 | $0.00 | ($0.07) | ($0.11) | Consolidated Balance Sheets The consolidated balance sheets present the company's financial position as of December 31, 2024, and 2023, detailing assets, liabilities, and equity Consolidated Balance Sheets (GAAP, In millions) | Metric | December 31, 2024 | December 31, 2023 | | :-------------------------------- | :------------------ | :------------------ | | Total current assets | $650.4 | $656.3 | | Total non-current assets | $8,105.3 | $8,479.6 | | Total assets | $8,755.7 | $9,135.9 | | Total current liabilities | $1,007.2 | $1,042.4 | | Total liabilities | $5,441.3 | $5,704.3 | | Total equity | $3,314.4 | $3,431.6 | - Cash and cash equivalents increased to $205.9 million in 2024 from $188.1 million in 2023[36] - Goodwill decreased slightly from $3,445.8 million in 2023 to $3,409.8 million in 2024[36] Condensed Consolidated Statements of Cash Flows The condensed consolidated statements of cash flows outline the cash generated and used across operating, investing, and financing activities for 2024 and 2023 Condensed Consolidated Statements of Cash Flows (GAAP, In millions) | Activity | Year ended Dec 31, 2024 | Year ended Dec 31, 2023 | | :---------------------------------------- | :---------------------- | :---------------------- | | Net cash provided by (used in) operating activities | $436.9 | $452.2 | | Net cash provided by (used in) investing activities | ($219.5) | ($191.8) | | Net cash provided by (used in) financing activities | ($187.9) | ($282.4) | | Increase (decrease) in cash, cash equivalents and restricted cash | $18.2 | ($20.3) | | Cash, Cash Equivalents and Restricted Cash, End of Period | $206.3 | $188.1 | - Cash paid for repurchase of treasury shares was $9.3 million in 2024, compared to none in 2023[38] - Proceeds from borrowings on Term Loan Facility were $3,103.6 million in 2024, significantly higher than $0 in 2023, indicating refinancing or new debt[38] Non-GAAP Reconciliations & Segment Details This section provides detailed reconciliations of GAAP to non-GAAP financial measures and a breakdown of segment performance Reconciliation of Net Income (Loss) to Adjusted EBITDA This reconciliation details the adjustments made to GAAP net income (loss) to arrive at Adjusted EBITDA for Q4 and the full year 2024 Reconciliation of Net Income (Loss) to Adjusted EBITDA (In millions) | Metric | Three months ended Dec 31, 2024 | Three months ended Dec 31, 2023 | Year ended Dec 31, 2024 | Year ended Dec 31, 2023 | | :---------------------------------------------------- | :------------------------------ | :------------------------------ | :---------------------- | :---------------------- | | Net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $7.8 | $1.7 | ($28.6) | ($47.0) | | Depreciation and amortization | $147.5 | $149.7 | $577.6 | $586.8 | | Interest expense - net | $55.7 | $51.9 | $256.4 | $216.1 | | (Benefit) provision for income tax - net | $15.2 | $6.3 | ($33.7) | ($34.2) | | EBITDA | $226.2 | $209.6 | $771.7 | $721.7 | | Equity-based compensation | $15.2 | $17.3 | $67.6 | $83.4 | | Transition costs | $13.4 | $21.8 | $60.7 | $52.9 | | Adjusted EBITDA | $260.0 | $260.6 | $926.6 | $892.2 | | Adjusted EBITDA Margin | 41.2% | 41.3% | 38.9% | 38.6% | Segment Revenue and Adjusted EBITDA Details This section provides a detailed breakdown of revenue and Adjusted EBITDA by geographic segment for Q4 and the full year 2024 and 2023 Segment Revenue and Adjusted EBITDA (Q4 2024 vs. 2023) | Metric | North America (Q4 2024) | International (Q4 2024) | Corporate and Other (Q4 2024) | Total (Q4 2024) | | :-------------------- | :---------------------- | :------------------------ | :---------------------------- | :-------------- | | Revenue | $448.6M | $183.3M | — | $631.9M | | Adjusted EBITDA | $207.8M | $58.1M | ($5.9M) | $260.0M | | Adjusted EBITDA margin | 46.3% | 31.7% | N/A | 41.2% | | | North America (Q4 2023) | International (Q4 2023) | Corporate and Other (Q4 2023) | Total (Q4 2023) | | Revenue | $456.8M | $173.6M | — | $630.4M | | Adjusted EBITDA | $223.7M | $55.2M | ($18.3M) | $260.6M | | Adjusted EBITDA margin | 49.0% | 31.8% | N/A | 41.3% | Segment Revenue and Adjusted EBITDA (Full Year 2024 vs. 2023) | Metric | North America (FY 2024) | International (FY 2024) | Corporate and Other (FY 2024) | Total (FY 2024) | | :-------------------- | :---------------------- | :------------------------ | :---------------------------- | :-------------- | | Revenue | $1,672.3M | $709.4M | — | $2,381.7M | | Adjusted EBITDA | $745.8M | $235.3M | ($54.5M) | $926.6M | | Adjusted EBITDA margin | 44.6% | 33.2% | N/A | 38.9% | | | North America (FY 2023) | International (FY 2023) | Corporate and Other (FY 2023) | Total (FY 2023) | | Revenue | $1,644.5M | $669.5M | — | $2,314.0M | | Adjusted EBITDA | $743.3M | $215.4M | ($66.5M) | $892.2M | | Adjusted EBITDA margin | 45.2% | 32.2% | N/A | 38.6% | Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) This reconciliation provides a detailed breakdown of adjustments from GAAP net income (loss) to arrive at adjusted net income (loss) for Q4 and the full year 2024 Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (In millions, except per share data) | Metric | Three months ended Dec 31, 2024 | Three months ended Dec 31, 2023 | Year ended Dec 31, 2024 | Year ended Dec 31, 2023 | | :---------------------------------------------------- | :------------------------------ | :------------------------------ | :---------------------- | :---------------------- | | Net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $7.8 | $1.7 | ($28.6) | ($47.0) | | Incremental amortization of intangible assets | $107.5 | $115.7 | $433.5 | $465.8 | | Equity-based compensation | $15.2 | $17.3 | $67.6 | $83.4 | | Transition costs | $13.4 | $21.8 | $60.7 | $52.9 | | Debt refinancing and extinguishment costs | $2.2 | — | $39.3 | $2.5 | | Tax effect of non-GAAP adjustments | ($16.4) | ($26.1) | ($145.6) | ($142.6) | | Adjusted net income (loss) attributable to Dun & Bradstreet Holdings, Inc. | $129.0 | $139.8 | $429.1 | $431.6 | | Adjusted net earnings per diluted share | $0.30 | $0.32 | $0.98 | $1.00 | Contact Information This section provides contact details for investor relations and media inquiries for Dun & Bradstreet Holdings, Inc - Investor Contact: 904-648-8006, IR@dnb.com[50] - Media Contact: Ginny Walthour, 904-528-1506, Walthourg@dnb.com[50]