Dun & Bradstreet(US:DNB)2023-02-16 18:39Financial Data and Key Metrics Changes - In Q4 2022, total revenues were $595 million, a decrease of 1% year-over-year, but an increase of 3% before the effect of foreign exchange [38] - For the full year 2022, revenues were $2,225 million, an increase of 3% or 6% before the effect of foreign exchange [39] - Adjusted EBITDA for Q4 was $250 million, an increase of 3%, while full year adjusted EBITDA was $864 million, an increase of 2% [40][72] - Full year adjusted net income was $472 million, or adjusted diluted earnings per share of $1.10, unchanged from 2021 [42] Business Line Data and Key Metrics Changes - Financial risk solutions grew 5.2% in 2022, with North America finance and risk revenues increasing 8% when excluding government revenues [44][45] - Sales and marketing revenues for North America increased by 8% to $720 million, driven by acquisitions [75] - International segment revenues for 2022 were $638 million, a decrease of 5%, but an increase of 5% before foreign exchange effects [47] Market Data and Key Metrics Changes - North America revenues for 2022 were $1,587 million, an increase of 6% from the prior year, while international organic revenues increased by 5.4% [25][44] - The international finance and risk revenues for the full year were $419 million, a decrease of 3%, but a 6% increase before foreign exchange [78] Company Strategy and Development Direction - The company plans to continue optimizing its solution set and maximize value extraction from current and future customers [13] - There is a focus on migrating clients to modern solutions and enhancing product offerings, particularly in supply chain and third-party risk [15][64] - The company aims to deepen its penetration in the small and micro business segment while continuing to expand relationships with large enterprises [62][118] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging macro environment but expressed confidence in the company's ability to drive growth within its existing client base [13][55] - The company expects total revenues in 2023 to be in the range of $2,260 million to $2,300 million, reflecting a growth of 1.6% to 3.4% [51] - Management highlighted the importance of digitalization and innovation as key opportunities for growth [34][66] Other Important Information - The company ended 2022 with total debt principal of $3,647 million and a leverage ratio of 4.0 times [80] - Adjusted EBITDA margin for the full year was 39%, a decrease of 20 basis points compared to the prior year [42] Q&A Session Summary Question: What is the impact of the GSA on the first quarter? - The first quarter is expected to be most impacted by the GSA, with a headwind of approximately 110 basis points [57] Question: What is the outlook for free cash flow in 2023? - Free cash flow is expected to improve as restructuring and M&A costs decrease, despite increased interest expenses [58][90] Question: Was the slowdown in December broad-based? - The slowdown was primarily isolated to sales and marketing, particularly in master data management, but has since normalized [60][93] Question: How is pricing evolving in 2023? - Pricing is expected to improve as clients migrate to modern platforms, allowing for better cross-selling opportunities [99] Question: What is the expected growth between North America and International in 2023? - A tougher backdrop is anticipated in 2023, with growth expected to be more challenging compared to previous years [103]