Cannae(US:CNNE)2023-08-10 02:45Financial Data and Key Metrics Changes - The company repurchased 3.1 million shares from May through July, representing about 4% of the company, indicating a strong buyback strategy [7][34] - Alight reported a revenue growth of 12.7% year-over-year, a significant increase from the previous 2% growth, showcasing operational improvement [35] Business Line Data and Key Metrics Changes - The non-BPaaS segment of the business is growing at mid-single digits with a 100% customer retention rate, indicating stability and reliability in revenue generation [16] Market Data and Key Metrics Changes - Dun & Bradstreet showed a growth rate of about 4%, despite facing headwinds, and is considered undervalued at 9.5 times 2023 EBITDA compared to peers [8] - Ceridian (CDAY) reported a revenue increase of approximately 26.5% to 27%, reflecting strong market performance [36] Company Strategy and Development Direction - The company is focusing on share repurchases as the best use of capital, especially given the current trading discount of approximately 45% [19][30] - Management emphasized the importance of improving commercial operations and revenue generation through strategic investments and operational enhancements [7][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of portfolio companies, despite some being undervalued compared to peers [15][17] - There is a recognition of slower-than-expected product rollout and customer uptake in certain segments, indicating areas for improvement [23] Other Important Information - The company has not engaged in any sales or acquisitions of portfolio companies recently, focusing instead on maximizing value within existing investments [15] - The SEC classification issue regarding the Investment Company Act of 1940 was addressed, with management asserting their active role in portfolio management [39][25] Q&A Session Summary Question: What are the latest thoughts around capital allocation? - Management indicated that the best use of capital is currently in share repurchases due to significant discounts in share price [19] Question: Can you provide details on the buyback activity? - The majority of the 3.1 million shares were repurchased in the second quarter, with minimal activity in July due to blackout periods [22] Question: What is the status of the monetization timeline for the site line? - The rollout has been slower than planned, with modifications needed and customer uptake lagging behind expectations [23] Question: Can you clarify the SEC classification issue? - Management clarified that they are not a passive investor and have actively engaged with portfolio companies, which is inconsistent with the Investment Company Act classification [39][25]