Dun & Bradstreet(US:DNB)2021-05-05 18:31Financial Data and Key Metrics Changes - Adjusted revenues for Q1 2021 increased by 29% and adjusted EBITDA increased by 37% [7] - Total company revenue retention was 96.3% with approximately 48% of the business under multiyear contracts [7] - First quarter revenues on a GAAP basis were $505 million, a 27% increase on a constant currency basis compared to the prior year [33] - Adjusted net income for Q1 was $98 million, or adjusted diluted earnings per share of $0.23, an increase from $50 million in the prior year [35] Business Line Data and Key Metrics Changes - North America revenues for Q1 were $339 million, a decrease of approximately 1% from the prior year, but grew approximately 2% when excluding known headwinds [36] - International revenues increased by 137% to $170 million, primarily driven by the Bisnode acquisition [38] - Finance and Risk revenues in the international segment increased by 83%, while Sales and Marketing revenue increased by 383% due to the Bisnode acquisition [39] Market Data and Key Metrics Changes - Organic constant currency revenues increased by 1.3%, with growth in the international segment partially offset by COVID-19 headwinds in North America [7][34] - The SMB market is showing signs of recovery, with a significant rise in new business formations, particularly in gig economy startups [16][17] Company Strategy and Development Direction - Key priorities for 2021 include growing share of wallet with strategic customers, monetizing the SMB space, launching new products domestically, and integrating the Bisnode acquisition [11][30] - The company is focusing on enhancing data quality and technology to improve customer relationships and drive cross-sell opportunities [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing transformation and integration of Bisnode, expecting to leverage foundational enhancements for future growth [10][30] - The outlook for full-year 2021 includes expected adjusted revenues in the range of $2,145 million to $2,175 million, representing a 23.5% to 25% increase compared to 2020 [42] Other Important Information - The company completed its formal cost savings program with $246 million of annualized run rate cost savings, exceeding the original target by 23% [9] - The D&B Customer Portal launched in Q1 resulted in a 60% increase in cross-sales [21] Q&A Session Summary Question: Timing of new products and partnerships impacting revenue growth - Management indicated that new products will contribute to revenue growth but will come on more slowly compared to established products, with positive early signs from SMB capabilities and e-commerce [46][47] Question: Organic growth guidance clarification - Management clarified that organic growth is expected to be in the range of 3% to 4.5%, with the first quarter showing a 1.3% increase after accounting for COVID-19 and Data.com headwinds [51][53] Question: Competitive environment changes - Management noted that they are gaining strength in the competitive landscape, with improvements in data quality and innovative product offerings [54][55] Question: Impact of vaccine rollout on customer engagement - Management stated that the faster growth in international markets is more related to product launches than the vaccine rollout, with North America expected to recover from headwinds [66] Question: Pricing environment and ability to raise prices - Management reported successful pricing strategies, with 70% of contracts seeing price increases, indicating effective pricing strategies [70]