Dun & Bradstreet Holdings Inc (DNB) Q3 2024 Earnings Call Highlights: Steady Growth Amid ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $609 million, an increase of 3.5% compared to the prior year quarter.

  • Organic Revenue Growth: 3.4% overall, with North America at 3% and International at 5%.

  • Net Income: $3 million, with diluted earnings per share of $0.01.

  • Adjusted EBITDA: $247 million, an increase of 5% with a margin of 41%.

  • Free Cash Flow Conversion: Improved to nearly 50%.

  • North America Revenue: $433 million, an increase of 2.6%.

  • International Revenue: Increased 5.7%.

  • Adjusted Net Income: $116 million, with adjusted earnings per share of $0.27.

  • Debt: Total principal amount of $3,681 million with a weighted average interest rate of 6.0%.

  • Leverage Ratio: 3.7 times on a net basis.

  • Revenue Retention Rate: North America at 97%, International at 93%.

  • Capital Expenditures: Expected $150 million to $160 million for internally developed software.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Dun & Bradstreet Holdings Inc (NYSE:DNB) reported organic revenue growth of 3.4%, slightly above expectations.

  • International segment delivered consistent mid-to-high single-digit organic revenue growth of 5%.

  • The company expanded margins by 60 basis points and improved free cash flow conversion to nearly 50%.

  • Dun & Bradstreet Holdings Inc (NYSE:DNB) launched Chat D&B, a generative AI assistant, enhancing data accessibility and client engagement.

  • Strategic partnerships with London Stock Exchange Group and Intercontinental Exchange were announced, broadening access to private market and climate risk data.

Negative Points

  • Net income for the third quarter decreased by $1 million compared to the prior year, primarily due to a lower tax benefit and higher amortization loss.

  • North America's revenue growth was limited to 3% due to timing issues between on-delivery and ratably recognized revenues.

  • Digital Marketing solutions continued to decline, although the decline was less severe than in previous quarters.

  • Sales cycles have lengthened, and client spending remains disciplined amid mixed macroeconomic signals.

  • The company did not execute any share repurchases in the third quarter due to ongoing strategic discussions.

Q & A Highlights

Q: Can you provide an update on the Digital Marketing business and expectations for the fourth quarter? A: Anthony Jabbour, CEO: Digital Marketing was still a headwind but improved sequentially as expected. We saw strengthening throughout the quarter, aligning with our expectations. Bryan Hipsher, CFO: The decline was in the low single digits, and we expect continued improvement into the fourth quarter.

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