Dun & Bradstreet(US:DNB)2022-02-16 20:05Financial Data and Key Metrics Changes - For Q4 2021, total company revenues were $598 million, a 25% increase compared to the prior year quarter [50] - Full year 2021 revenues reached $2,166 million, also a 25% increase [52] - Adjusted EBITDA for Q4 2021 was $243 million, a 19% increase [54] - Full year adjusted EBITDA was $847 million, a 19% increase [56] - Net loss for Q4 2021 was $12 million, compared to a net income of $2 million in the prior year [51] Business Line Data and Key Metrics Changes - North America revenues for Q4 2021 were $429 million, a 7% increase [59] - International segment revenues for Q4 2021 increased 114% to $170 million, primarily driven by the Bisnode acquisition [67] - Finance and risk revenues in North America for Q4 2021 were $231 million, a 6% increase [60] - Sales and marketing revenues in North America for Q4 2021 were $198 million, an 8% increase [61] - International finance and risk revenues for full year 2021 were $430 million, a 76% increase [70] Market Data and Key Metrics Changes - Organic constant currency revenue growth for Q4 2021 was 4.8% [13] - International organic revenues increased $26 million or 9% for full year 2021 [70] - North America organic revenue increased $31 million or 2% for full year 2021 [63] Company Strategy and Development Direction - The company aims to maximize the potential of its assets through operational execution and strategic investments [8][12] - Focus on enhancing digital marketing solutions and expanding audience targeting capabilities internationally [17][31] - Continued investment in data and technology to drive organic growth, particularly in third-party risk management and digital marketing [86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing growth opportunities despite challenges from the GSA contract expiration [80][84] - The company is well-positioned to accelerate organic growth in 2022, with expectations of increased revenues and EBITDA [78][86] - Management highlighted the importance of supporting small and medium-sized businesses through innovative solutions [42][114] Other Important Information - The company has doubled its contribution from multiyear contracts, now accounting for 50% of sales [11][111] - The strategic agreement with Google Cloud aims to enhance infrastructure and develop new industry-specific solutions [20][21] - The company has launched 10 additional solutions across international markets, bringing the total to nearly 40 for 2021 [44] Q&A Session Summary Question: What is the headwind from the GSA contract? - The headwind is approximately $24 million on a full-year basis, expected to impact the second and third quarters of 2022 [88] Question: How do the new fraud capabilities differ from credit bureaus? - The company focuses on B2B fraud solutions, addressing commercial fraud risks and providing predictive analytics for business identity theft [93][94] Question: What percentage of Bisnode's revenue has been replaced with D&B products? - Approximately $10 million to $15 million of Bisnode's revenue was transitioned in 2021, with the remainder expected to transition in 2022 [101] Question: What are the capital allocation priorities for the coming year? - The company prioritizes organic growth through innovation, followed by debt repayment and potential M&A opportunities [110] Question: Does the FTC settlement pose ongoing risks to revenue? - Management does not foresee significant risks from the FTC settlement, emphasizing confidence in the SMB space and ongoing innovations [113][114]