Dun & Bradstreet(US:DNB)2023-05-06 21:47Financial Data and Key Metrics Changes - For Q1 2023, total revenues were $540 million, an increase of $4 million or 1% year-over-year, with organic constant currency revenues up 3.2% [21][22] - Net loss for the quarter was $34 million, compared to a net loss of $31 million in the prior year [21] - Adjusted EBITDA was $190 million, flat compared to the prior year, with an adjusted EBITDA margin of 35% [21][22] Business Line Data and Key Metrics Changes - North America revenues were $375 million, up 2%, with Finance & Risk revenues flat at $201 million and Sales & Marketing revenues increasing by 5% to $174 million [22][23] - International revenues decreased by $3 million to $166 million, but organic revenues increased by 5.5% on a constant currency basis [23] - Finance & Risk revenues in the International segment were $111 million, up 2%, while Sales & Marketing revenues decreased by 8% to $55 million [23] Market Data and Key Metrics Changes - The U.K. and Ireland markets showed nearly 10% growth, while Europe grew by 4% [36] - Asia experienced low single-digit growth, attributed to lingering effects from 2022 lockdowns [36] - The company reported strong demand for its modern Finance & Risk solutions across all markets [36] Company Strategy and Development Direction - The company is focusing on transforming underperforming assets and evaluating potential divestitures, with a range of $50 million to $75 million in assets under consideration [6] - There is a strong emphasis on leveraging proprietary data and AI technology to enhance customer insights and operational efficiency [2][39] - The company aims to maintain long-term contracts, with over 50% of contracts now being multiyear [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges, citing strong demand for mission-critical solutions [31] - The company maintained its 2023 organic revenue growth guidance of 3% to 4.5%, with expectations for continued momentum [14][26] - Management highlighted the importance of ongoing transformation efforts to offset economic headwinds and drive growth [40] Other Important Information - The company has made significant progress in migrating legacy applications to modern solutions, enhancing customer engagement and satisfaction [1] - The adjusted net income for Q1 was $81 million, down from the prior year due to increased interest expenses [21] - The company is focused on improving its data supply chain and reducing reliance on mainframe hardware by 50% [38] Q&A Session Summary Question: Can you elaborate on the competitive moat regarding AI? - Management emphasized the proprietary data that cannot be scraped, which differentiates the company from competitors using public data [2][72] Question: What is the growth outlook for Hoovers? - Management reported significant improvements in retention rates for Hoovers, with revenues in the range of $90 million to $100 million [50] Question: How is the company addressing divestitures? - Management indicated a strategic approach to divestitures, focusing on non-core assets and evaluating their potential for transformation [6][61] Question: What is the impact of the macro environment on small business customers? - Management noted that while there are headwinds, the company is committed to supporting small businesses through new capabilities and partnerships [76] Question: How is the company leveraging AI in its operations? - Management discussed the integration of AI technologies to enhance data matching and analytics capabilities, driving efficiencies in operations [39][44]