• Fourth Quarter Revenue: $632 million, less than 1% growth compared to the prior year quarter.
• Fourth Quarter Net Income: $8 million, or diluted earnings per share of $0.02.
• Full Year Revenue: $2,382 million, an increase of 3% both after and before the effect of foreign exchange.
• Full Year Net Loss: $29 million, or a diluted loss per share of $0.07.
• Fourth Quarter Adjusted EBITDA: $260 million, a decrease of less than 1%.
• Fourth Quarter Adjusted EBITDA Margin: 41%, a decrease of 10 basis points.
• Full Year Adjusted EBITDA: $927 million, an increase of 4%.
• Full Year Adjusted EBITDA Margin: 39%, an increase of 30 basis points.
• North America Fourth Quarter Revenue: $449 million, a decrease of 1.8% from the prior year quarter.
• International Fourth Quarter Revenue: $183 million, an increase of 6%.
• Debt and Cash Position: Cash and cash equivalents of $206 million; total principal amount of debt $3,550 million.
• Leverage Ratio: 3.6 times on a net basis.
• 2025 Revenue Outlook: Expected to be in the range of $2,440 million to $2,500 million, an increase of approximately 2.5% to 5%.
• 2025 Adjusted EBITDA Outlook: Expected to be in the range of $955 to $985 million.
• 2025 Adjusted EPS Outlook: Expected to be in the range of $1.01 to $1.07.

• Warning! GuruFocus has detected 4 Warning Signs with DNB.

Release Date: February 20, 2025

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

Positive Points

• Dun & Bradstreet Holdings Inc (NYSE:DNB) achieved 3% organic revenue growth in 2024, demonstrating meaningful improvement.
• The company expanded its EBITDA margins by 30 basis points, indicating enhanced operational efficiency.
• DNB successfully completed client migrations to modern cloud-based solutions, enhancing client flexibility and scalability.
• The company reduced its net leverage to 3.6 times by year-end, improving its capital structure.
• DNB introduced new localized offerings and vertical-specific solutions, strengthening its market position and client relationships.

Negative Points

• DNB experienced a delay in closing certain deals in Q4 2024, impacting revenues by $9 million due to distractions from ongoing strategic processes.
• The company exited two partnerships that were not mutually advantageous, resulting in a $6 million revenue impact in Q4 2024 and a $14 million impact in 2025.
• Timing-related delays in expected usage and deliveries affected revenues by $3 million and $4 million, respectively, with most revenues expected to flow into early 2025.
• North America revenues decreased by 1.8% in Q4 2024, primarily due to decreased revenue from finance and risk solutions.
• The ongoing strategic review process has caused client hesitation and internal distractions, potentially impacting future revenue growth.

Q & A Highlights

Q: How have the ongoing strategic review and distractions affected Dun & Bradstreet's revenue and guidance for 2025? A: Anthony Jabbour, CEO, explained that some deals were delayed due to the strategic review, with some clients waiting to see potential outcomes. These delays impacted Q4 revenues by $9 million. CFO Bryan Hipsher added that the guidance for 2025 accounts for these distractions, expecting a conclusion in Q1, with revenue growth starting low and increasing throughout the year.

Q: What is the demand environment for Dun & Bradstreet's products, particularly in light of geopolitical shifts? A: CEO Anthony Jabbour noted strong demand for their supply chain and risk analytics solutions, which are well-suited to address issues like tariffs and geopolitical changes. Despite Q4 revenue declines in finance and risk, this was attributed to factors other than demand, such as client migrations to modern products and API usage.

Q: Can you elaborate on the timing of revenue growth and the impact of customer behavior on this? A: CFO Bryan Hipsher explained that the timing of revenue growth is influenced by the ongoing strategic process, with expectations for a low start in Q1 and higher growth by Q4. Customer behavior, including waiting for potential changes in control, affects the timing of deal closures and revenue recognition.

Q: Are the exits from non-strategic partnerships complete, and what is their financial impact? A: CEO Anthony Jabbour confirmed that most partnership exits are complete, with a $6 million revenue impact in Q4 and $14 million expected in 2025. These exits are expected to result in a positive EBITDA outcome, as the company focuses on long-term growth.

Q: How is Dun & Bradstreet's vertical approach changing client relationships and solutions? A: CEO Anthony Jabbour highlighted the shift to a vertical approach, allowing the company to speak the language of specific industries and offer tailored solutions. This strategy aims to deepen client relationships and leverage expertise in areas like finance, insurance, and healthcare.

Q: What are the strategic options being considered in the review process, and how does this affect the company's future? A: CEO Anthony Jabbour stated that the company is open to various strategic options to maximize shareholder value, including potential acquisitions or divestitures. The board is considering all possibilities to enhance the company's growth and market position.

Q: How is Dun & Bradstreet progressing in moving away from revenue models tied to deliveries and usage? A: CFO Bryan Hipsher noted that about 25% of revenue is currently tied to deliveries and usage, with efforts underway to increase the proportion of radable revenues. The goal is to shift towards more consistent and predictable revenue streams.

Q: What is the outlook for North America's EBITDA margins, and how are investments affecting this? A: CFO Bryan Hipsher explained that North America's EBITDA margins have been impacted by investments in data and cloud infrastructure. However, with migrations largely complete, the focus is now on scaling sales, which should lead to margin expansion in the future.

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