Dun & Bradstreet Holdings, Inc. (NYSE: DNB), a leading
global provider of business decisioning data and analytics, today
announced unaudited financial results for the third quarter ended
September 30, 2024. A reconciliation of U.S. generally accepted
accounting principles (“GAAP”) to non-GAAP financial measures has
been provided in this press release, including the accompanying
tables. An explanation of these measures is also included below
under the heading “Use of Non-GAAP Financial Measures.”
- Revenue for the third quarter of 2024 was $609.1 million, an
increase of 3.5% and 3.2% on a constant currency basis compared to
the third quarter of 2023.
- Organic revenue increased 3.4% on a constant currency basis
compared to the third quarter of 2023.
- GAAP net income for the third quarter of 2024 was $3.2 million,
or diluted earnings per share of $0.01, compared to net income of
$4.4 million, or diluted earnings per share of $0.01 for the prior
year quarter. Adjusted net income was $116.0 million, or adjusted
net earnings per diluted share of $0.27, compared to adjusted net
income of $116.2 million, or adjusted net earnings per diluted
share of $0.27 for the prior year quarter.
- Adjusted EBITDA for the third quarter of 2024 was $247.4
million, an increase of 5.1% compared to the prior year quarter.
Adjusted EBITDA margin for the third quarter of 2024 was
40.6%.
“We are pleased to deliver another solid quarter of financial
results and strategic progress. Organic revenue growth of 3.4% was
ahead of our expectations, and we delivered Adjusted EBITDA margin
expansion of 60 basis points and improved free cash flow conversion
during the third quarter. We continue to see strong demand for our
core Master Data Management and Risk Solutions in both our
International and North America segments,” said Anthony Jabbour,
Dun & Bradstreet Chief Executive Officer. “We remain focused on
bringing innovation to drive value to our clients across their most
critical use cases, as demonstrated by the renewals, expansions and
new wins across our business. In particular, we are excited about
the recent release of Chat D&B, our generative AI assistant
that produces instantaneous and actionable business insights on
companies and professional contacts.”
- Revenue for the nine months ended September 30, 2024 was
$1,749.8 million, an increase of 3.9% and 3.8% on a constant
currency basis compared to the nine months ended September 30,
2023.
- Organic revenue increased 3.9% on a constant currency basis
compared to the nine months ended September 30, 2023.
- GAAP net loss for the nine months ended September 30, 2024 was
$36.4 million, or loss per share of $0.08, compared to net loss of
$48.7 million, or loss per share of $0.11 for the prior year
period. Adjusted net income was $300.1 million, or adjusted net
earnings per diluted share of $0.69, compared to adjusted net
income of $291.8 million, or adjusted net earnings per diluted
share of $0.68 for the prior year period.
- Adjusted EBITDA for the nine months ended September 30, 2024
was $666.6 million, an increase of 5.5% compared to the nine months
ended September 30, 2023. Adjusted EBITDA margin for the nine
months ended September 30, 2024 was 38.1%.
Segment Results
North America
For the third quarter of 2024, North America revenue was $432.5
million, an increase of $11.1 million or 2.6% and 2.7% on a
constant currency basis compared to the third quarter of 2023.
- Finance and Risk revenue for the third quarter of 2024 was
$237.7 million, an increase of $2.8 million or 1.2% compared to the
third quarter of 2023.
- Sales and Marketing revenue for the third quarter of 2024 was
$194.8 million, an increase of $8.3 million or 4.5% compared to the
third quarter of 2023.
North America adjusted EBITDA for the third quarter of 2024 was
$207.7 million, an increase of 6.2%, with adjusted EBITDA margin of
48.0%.
For the nine months ended September 30, 2024, North America
revenue was $1,223.7 million, an increase of $36.0 million or 3.0%
and 3.1% on a constant currency basis compared to the nine months
ended September 30, 2023.
- Finance and Risk revenue for the nine months ended September
30, 2024 was $661.8 million, an increase of $15.1 million or 2.3%
and 2.4% on a constant currency basis compared to the nine months
ended September 30, 2023.
- Sales and Marketing revenue for the nine months ended September
30, 2024 was $561.9 million, an increase of $20.9 million or 3.9%
compared to the nine months ended September 30, 2023.
North America adjusted EBITDA for the nine months ended
September 30, 2024 was $538.0 million, an increase of 3.5%, with
adjusted EBITDA margin of 44.0%.
International
International revenue for the third quarter of 2024 was $176.6
million, an increase of $9.5 million or 5.7% and 4.7% on a constant
currency basis compared to the third quarter of 2023. Excluding the
impact of the divestiture of a business-to-consumer business in
Finland and the positive impact of foreign exchange of $1.8
million, International organic revenue increased 5.1%.
- Finance and Risk revenue for the third quarter of 2024 was
$121.6 million, an increase of $8.0 million or 7.1% and 6.3% on a
constant currency basis compared to the third quarter of 2023.
- Sales and Marketing revenue for the third quarter of 2024 was
$55.0 million, an increase of $1.5 million or 2.7% and 1.1% on a
constant currency basis compared to the third quarter of 2023.
Excluding the impact of the divestiture and the positive impact of
foreign exchange, organic revenue increased 2.4%.
International adjusted EBITDA for the third quarter of 2024 was
$59.1 million, an increase of 6.5%, with adjusted EBITDA margin of
33.5%.
International revenue for the nine months ended September 30,
2024 was $526.1 million, an increase of $30.2 million or 6.1% and
5.7% on a constant currency basis compared to the nine months ended
September 30, 2023. Excluding the impact of the divestiture of a
business-to-consumer business in Finland and the positive impact of
foreign exchange of $2.0 million, International organic revenue
increased 6.1%.
- Finance and Risk revenue for the nine months ended September
30, 2024 was $358.1 million, an increase of $25.9 million or 7.8%
and 7.4% on a constant currency basis compared to the nine months
ended September 30, 2023.
- Sales and Marketing revenue for the nine months ended September
30, 2024 was $168.0 million, an increase of $4.3 million or 2.6%
and 2.2% on a constant currency basis compared to the nine months
ended September 30, 2023. Excluding the impact of the divestiture
and the positive impact of foreign exchange, organic revenue
increased 3.4%.
International adjusted EBITDA for the nine months ended
September 30, 2024 was $177.2 million, an increase of 10.6%, with
adjusted EBITDA margin of 33.7%.
Balance Sheet
As of September 30, 2024, we had cash and cash equivalents of
$288.7 million and total principal amount of debt of $3,681.1
million. We had $717.0 million available on our $850 million
revolving credit facility as of September 30, 2024.
Stock Repurchase Program
During the nine months ended September 30, 2024, we repurchased
961,360 shares of Dun & Bradstreet common stock for $9.3
million, net of accrued excise tax, at an average price of $9.71
per share. There was no share repurchase activity during the three
months ended September 30, 2024. We currently have over 9 million
shares remaining under our existing buyback authorization.
Business Outlook
- Revenues after the impact of foreign exchange are expected to
be at the low end of our previously communicated range of $2,400
million to $2,440 million, or approximately 3.7% to 5.4%.
- Organic revenue growth is also expected to be at the low end of
our previously communicated range of 4.1% to 5.1%.
- Adjusted EBITDA is expected to continue to be in the range of
$930 million to $950 million.
- Adjusted EPS is expected to continue to be in the range of
$1.00 to $1.04.
The foregoing forward-looking statements reflect Dun &
Bradstreet’s expectations as of today's date and Revenue assumes
constant foreign currency rates. Dun & Bradstreet does not
present a qualitative reconciliation of its forward-looking
non-GAAP financial measures to the most directly comparable GAAP
measure due to the inherent difficulty, without unreasonable
efforts, in forecasting and quantifying with reasonable accuracy
significant items required for this reconciliation. Given the
number of risk factors, uncertainties and assumptions discussed
below, actual results may differ materially. Dun & Bradstreet
does not intend to update its forward-looking statements until its
next quarterly results announcement, other than in publicly
available statements.
Earnings Conference Call and Audio Webcast
Dun & Bradstreet will host a conference call to discuss the
third quarter 2024 financial results on October 31, 2024 at 8:30am
ET. The conference call can be accessed live over the phone by
dialing 1-844-481-2520 (USA), or 1-412-317-0548 (International).
The telephone replay will be available from 11:30am ET on October
31, 2024, through November 14, 2024, by dialing 1-877-344-7529
(USA) or 1-412-317-0088 (International). The replay passcode will
be 6582331.
The call will also be webcast live from Dun & Bradstreet’s
investor relations website at https://investor.dnb.com. Following
the completion of the call, a recorded replay of the webcast will
be available on the website.
About Dun & Bradstreet
Dun & Bradstreet, a leading global provider of business
decisioning data and analytics, enables companies around the world
to improve their business performance. Dun & Bradstreet’s Data
Cloud fuels solutions and delivers insights that empower customers
to accelerate revenue, lower cost, mitigate risk, and transform
their businesses. Since 1841, companies of every size have relied
on Dun & Bradstreet to help them manage risk and reveal
opportunity. For more information on Dun & Bradstreet, please
visit www.dnb.com.
Use of Non-GAAP Financial Measures
In addition to reporting GAAP results, we evaluate performance
and report our results on the non-GAAP financial measures discussed
below. We believe that the presentation of these non-GAAP measures
provides useful information to investors and rating agencies
regarding our results, operating trends and performance between
periods. These non-GAAP financial measures include organic revenue,
adjusted earnings before interest, taxes, depreciation and
amortization (‘‘adjusted EBITDA’’), adjusted EBITDA margin,
adjusted net income and adjusted net earnings per diluted share.
Adjusted results are non-GAAP measures that adjust for the impact
due to certain acquisition and divestiture related revenue and
expenses, such as costs for banker fees, legal fees, due diligence,
retention payments and contingent consideration adjustments,
restructuring charges, equity-based compensation, transition costs
and other non-core gains and charges that are not in the normal
course of our business, such as costs associated with early debt
redemptions, gains and losses on sales of businesses, impairment
charges, the effect of significant changes in tax laws and material
tax and legal settlements. We exclude amortization of recognized
intangible assets resulting from the application of purchase
accounting because it is non-cash and not indicative of our ongoing
and underlying operating performance. Intangible assets are
recognized as a result of historical merger and acquisition
transactions. We believe that recognized intangible assets by their
nature are fundamentally different from other depreciating assets
that are replaced on a predictable operating cycle. Unlike other
depreciating assets, such as developed and purchased software
licenses or property and equipment, there is no replacement cost
once these recognized intangible assets expire and the assets are
not replaced. Additionally, our costs to operate, maintain and
extend the life of acquired intangible assets and purchased
intellectual property are reflected in our operating costs as
personnel, data fees, facilities, overhead and similar items.
Management believes it is important for investors to understand
that such intangible assets were recorded as part of purchase
accounting and contribute to revenue generation. Amortization of
recognized intangible assets will recur in future periods until
such assets have been fully amortized. In addition, we isolate the
effects of changes in foreign exchange rates on our revenue growth
because we believe it is useful for investors to be able to compare
revenue from one period to another, both after and before the
effects of foreign exchange rate changes. The change in revenue
performance attributable to foreign currency rates is determined by
converting both our prior and current periods’ foreign currency
revenue by a constant rate. As a result, we monitor our revenue
growth both after and before the effects of foreign exchange rate
changes. We believe that these supplemental non-GAAP financial
measures provide management and other users with additional
meaningful financial information that should be considered when
assessing our ongoing performance and comparability of our
operating results from period to period. Our management regularly
uses our supplemental non-GAAP financial measures internally to
understand, manage and evaluate our business and make operating
decisions. These non-GAAP measures are among the factors management
uses in planning for and forecasting future periods. Non-GAAP
financial measures should be viewed in addition to, and not as an
alternative to our reported results prepared in accordance with
GAAP.
Our non-GAAP or adjusted financial measures reflect adjustments
based on the following items, as well as the related income
tax.
Organic Revenue
We define organic revenue as reported revenue before the effect
of foreign exchange excluding revenue from acquired businesses, if
applicable, for the first twelve months. In addition, organic
revenue excludes current and prior year revenue associated with
divested businesses, if applicable. We believe the organic measure
provides investors and analysts with useful supplemental
information regarding the Company’s underlying revenue trends by
excluding the impact of acquisitions and divestitures.
Adjusted EBITDA and Adjusted EBITDA Margin
We define adjusted EBITDA as net income (loss) attributable to
Dun & Bradstreet Holdings, Inc. excluding the following
items:
- depreciation and amortization;
- interest expense and income;
- income tax benefit or provision;
- other non-operating expenses or income;
- equity in net income of affiliates;
- net income attributable to non-controlling interests;
- equity-based compensation;
- merger, acquisition and divestiture-related operating
costs;
- transition costs primarily consisting of non-recurring expenses
associated with investments to transform our technology and
back-office infrastructure, including investment in the
architecture of our technology platforms and cloud-focused
infrastructure. The transformation efforts require us to dedicate
separate resources in order to develop the new cloud-based
infrastructure in parallel with our current environment. These
costs, as well as other expenses associated with transformational
activities, are incremental and redundant costs that will not recur
after we achieve our objectives and are not representative of our
underlying operating performance. We believe that excluding these
costs from our non-GAAP measures provides a better reflection of
our ongoing cost structure; and
- other adjustments include non-recurring charges such as legal
expense associated with significant legal and regulatory matters
and impairment charges.
We calculate adjusted EBITDA margin by dividing adjusted EBITDA
by revenue.
Adjusted Net Income
We define adjusted net income as net income (loss) attributable
to Dun & Bradstreet Holdings, Inc. adjusted for the following
items:
- incremental amortization resulting from the application of
purchase accounting. We exclude amortization of recognized
intangible assets resulting from the application of purchase
accounting because it is non-cash and is not indicative of our
ongoing and underlying operating performance. The Company believes
that recognized intangible assets by their nature are fundamentally
different from other depreciating assets that are replaced on a
predictable operating cycle. Unlike other depreciating assets, such
as developed and purchased software licenses or property and
equipment, there is no replacement cost once these recognized
intangible assets expire and the assets are not replaced.
Additionally, the Company’s costs to operate, maintain and extend
the life of acquired intangible assets and purchased intellectual
property are reflected in the Company’s operating costs as
personnel, data fees, facilities, overhead and similar items;
- equity-based compensation;
- merger, acquisition and divestiture-related operating
costs;
- transition costs primarily consisting of non-recurring expenses
associated with investments to transform our technology and
back-office infrastructure, including investment in the
architecture of our technology platforms and cloud-focused
infrastructure. The transformation efforts require us to dedicate
separate resources in order to develop the new cloud-based
infrastructure in parallel with our current environment. These
costs, as well as other expenses associated with transformational
activities, are incremental and redundant costs that will not recur
after we achieve our objectives and are not representative of our
underlying operating performance. We believe that excluding these
costs from our non-GAAP measures provides a better reflection of
our ongoing cost structure;
- merger, acquisition and divestiture-related non-operating
costs;
- debt refinancing and extinguishment costs;
- non-operating pension-related income (expenses) includes
certain costs and income associated with our pension and
postretirement plans, consisting of interest cost, expected return
on plan assets and amortized actuarial gains or losses, prior
service credits and if applicable, plan settlement charges. These
adjustments are non-cash and market-driven, primarily due to the
changes in the value of pension plan assets and liabilities which
are tied to financial market performance and conditions;
- non-cash gain and loss resulting from the modification of our
interest rate swaps;
- other adjustments include non-recurring charges such as legal
expense associated with significant legal and regulatory matters
and impairment charges;
- tax effect of the non-GAAP adjustments; and
- other tax effect adjustments related to the tax impact of
statutory tax rate changes on deferred taxes and other discrete
items.
Adjusted Net Earnings Per Diluted Share
We calculate adjusted net earnings per diluted share by dividing
adjusted net income (loss) by the weighted average number of common
shares outstanding for the period plus the dilutive effect of
common shares potentially issuable in connection with awards
outstanding under our stock incentive plan.
Forward-Looking Statements
The statements contained in this release that are not purely
historical are forward-looking statements, including statements
regarding expectations, hopes, intentions or strategies regarding
the future. Forward-looking statements are based on Dun &
Bradstreet’s management’s beliefs, as well as assumptions made by,
and information currently available to, them. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and
similar references to future periods, or by the inclusion of
forecasts or projections. Examples of forward-looking statements
include, but are not limited to, statements we make regarding the
outlook for our future business and financial performance. Because
such statements are based on expectations as to future financial
and operating results and are not statements of fact, actual
results may differ materially from those projected. It is not
possible to predict or identify all risk factors. Consequently, the
risks and uncertainties listed below should not be considered a
complete discussion of all of our potential trends, risks and
uncertainties. We undertake no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
The risks and uncertainties that forward-looking statements are
subject to include, but are not limited to: (i) our ability to
implement and execute our strategic plans to transform the
business; (ii) our ability to develop or sell solutions in a timely
manner or maintain client relationships; (iii) competition for our
solutions; (iv) harm to our brand and reputation; (v) unfavorable
global economic conditions including, but not limited to,
volatility in interest rates, foreign currency markets, inflation,
and supply chain disruptions; (vi) risks associated with operating
and expanding internationally; (vii) failure to prevent
cybersecurity incidents or the perception that confidential
information is not secure; (viii) failure in the integrity of our
data or systems; (ix) system failures and personnel disruptions,
which could delay the delivery of our solutions to our clients; (x)
loss of access to data sources or ability to transfer data across
the data sources in markets where we operate; (xi) failure of our
software vendors and network and cloud providers to perform as
expected or if our relationship is terminated; (xii) loss or
diminution of one or more of our key clients, business partners or
government contracts; (xiii) dependence on strategic alliances,
joint ventures and acquisitions to grow our business; (xiv) our
ability to protect our intellectual property adequately or
cost-effectively; (xv) claims for intellectual property
infringement; (xvi) interruptions, delays or outages to
subscription or payment processing platforms; (xvii) risks related
to acquiring and integrating businesses and divestitures of
existing businesses; (xviii) our ability to retain members of the
senior leadership team and attract and retain skilled employees;
(xix) compliance with governmental laws and regulations; (xx) risks
related to registration and other rights held by certain of our
largest shareholders; (xxi) an outbreak of disease, global or
localized health pandemic or epidemic, or the fear of such an
event, including the global economic uncertainty and measures taken
in response; (xxii) increased economic uncertainty related to the
ongoing conflict between Russia and Ukraine, the conflict in the
Middle East, and associated trends in macroeconomic conditions, and
(xxiii) the other factors described under the headings “Risk
Factors,” “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” “Cautionary Note Regarding
Forward-Looking Statements” and other sections of our Annual Report
on Form 10-K filed with the Securities and Exchange Commission
("SEC") on February 22, 2024.
Dun & Bradstreet Holdings,
Inc.
Consolidated Statements of
Operations
(In millions, except per share
data)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Revenue
$
609.1
$
588.5
$
1,749.8
$
1,683.6
Cost of services (exclusive of
depreciation and amortization) (1)
219.5
211.8
663.7
631.8
Selling and administrative expenses
(1)
174.8
176.3
525.6
527.8
Depreciation and amortization
144.8
146.7
430.1
437.1
Restructuring charges
7.8
1.6
14.5
10.4
Operating costs
546.9
536.4
1,633.9
1,607.1
Operating income (loss)
62.2
52.1
115.9
76.5
Interest income
2.1
1.7
4.9
4.2
Interest expense
(61.3
)
(57.0
)
(205.6
)
(168.4
)
Other income (expense) - net
(0.9
)
(3.3
)
0.6
(1.2
)
Non-operating income (expense) - net
(60.1
)
(58.6
)
(200.1
)
(165.4
)
Income (loss) before provision (benefit)
for income taxes and equity in net income of affiliates
2.1
(6.5
)
(84.2
)
(88.9
)
Less: provision (benefit) for income
taxes
(1.8
)
(11.2
)
(48.9
)
(40.5
)
Equity in net income of affiliates
0.3
0.6
1.9
2.1
Net income (loss)
4.2
5.3
(33.4
)
(46.3
)
Less: net (income) loss attributable to
the non-controlling interest
(1.0
)
(0.9
)
(3.0
)
(2.4
)
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
3.2
$
4.4
$
(36.4
)
$
(48.7
)
Basic earnings (loss) per share of
common stock attributable to Dun & Bradstreet Holdings,
Inc.
$
0.01
$
0.01
$
(0.08
)
$
(0.11
)
Diluted earnings (loss) per share of
common stock attributable to Dun & Bradstreet Holdings,
Inc.
$
0.01
$
0.01
$
(0.08
)
$
(0.11
)
Weighted average number of shares
outstanding-basic
432.4
430.8
432.2
430.3
Weighted average number of shares
outstanding-diluted
435.6
432.2
432.2
430.3
(1)
Prior year period results have been recast to reflect the change
in presentation and to conform to the current period presentation.
For the three and nine months ended September 30, 2023, we
reclassified $5.3 million and $24.4 million, respectively, from
Selling and administrative expenses to Cost of services (exclusive
of depreciation and amortization). This reclassification has no
impact on total operating costs, operating income, net income
(loss), earnings (loss) per share or segment results. Additionally,
the reclassification has no impact on the unaudited consolidated
balance sheets or unaudited consolidated statement of cash
flows.
Dun & Bradstreet Holdings,
Inc.
Consolidated Balance
Sheets
(In millions, except share
data and per share data)
September 30,
2024
December 31,
2023
Assets
Current assets
Cash and cash equivalents
$
288.7
$
188.1
Accounts receivable, net of allowance of
$25.3 at September 30, 2024 and $20.1 at December 31, 2023
242.4
258.0
Prepaid taxes
52.7
51.8
Other prepaids
92.0
100.1
Other current assets
34.4
58.3
Total current assets
710.2
656.3
Non-current assets
Property, plant and equipment, net of
accumulated depreciation of $52.3 at September 30, 2024 and $45.7
at December 31, 2023
94.1
102.1
Computer software, net of accumulated
amortization of $636.2 at September 30, 2024 and $507.1 at December
31, 2023
704.4
666.3
Goodwill
3,447.5
3,445.8
Other intangibles
3,629.4
3,915.9
Deferred costs
163.4
161.7
Other non-current assets
255.9
187.8
Total non-current assets
8,294.7
8,479.6
Total assets
$
9,004.9
$
9,135.9
Liabilities
Current liabilities
Accounts payable
$
108.9
$
111.7
Accrued payroll
91.9
111.9
Short-term debt
31.0
32.7
Deferred revenue
564.9
590.0
Other accrued and current liabilities
214.3
196.1
Total current liabilities
1,011.0
1,042.4
Long-term pension and postretirement
benefits
127.1
143.9
Long-term debt
3,626.9
3,512.5
Deferred income tax
782.8
887.3
Other non-current liabilities
109.9
118.2
Total liabilities
5,657.7
5,704.3
Commitments and contingencies
Equity
Common Stock, $0.0001 par value per share,
authorized—2,000,000,000 shares; 443,419,716 shares issued and
441,571,436 shares outstanding at September 30, 2024 and
439,735,256 shares issued and 438,848,336 shares outstanding at
December 31, 2023
—
—
Capital surplus
4,401.0
4,429.2
Accumulated deficit
(847.5
)
(811.1
)
Treasury Stock, 1,848,280 shares at
September 30, 2024 and 886,920 shares at December 31, 2023
(9.7
)
(0.3
)
Accumulated other comprehensive loss
(212.0
)
(198.7
)
Total stockholders' equity
3,331.8
3,419.1
Non-controlling interest
15.4
12.5
Total equity
3,347.2
3,431.6
Total liabilities and stockholders'
equity
$
9,004.9
$
9,135.9
Dun & Bradstreet Holdings,
Inc.
Condensed Consolidated
Statements of Cash Flows
(In millions)
Nine months ended September
30,
2024
2023
Cash flows provided by (used in)
operating activities:
Net income (loss)
$
(33.4
)
$
(46.3
)
Reconciliation of net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization
430.1
437.1
Amortization of unrecognized pension loss
(gain)
(1.3
)
(2.1
)
Deferred debt issuance costs amortization
and write-off
41.9
14.0
Equity-based compensation expense
52.4
66.1
Restructuring charge
14.5
10.4
Restructuring payments
(11.3
)
(12.1
)
Changes in deferred income taxes
(97.3
)
(114.3
)
Changes in operating assets and
liabilities:
(Increase) decrease in accounts
receivable
11.5
47.0
(Increase) decrease in prepaid taxes,
other prepaids and other current assets
0.4
(24.4
)
Increase (decrease) in deferred
revenue
(22.3
)
4.6
Increase (decrease) in accounts
payable
(3.7
)
(9.6
)
Increase (decrease) in accrued payroll
(22.7
)
(21.5
)
Increase (decrease) in other accrued and
current liabilities
(1.8
)
(32.8
)
(Increase) decrease in other long-term
assets
(32.6
)
3.2
Increase (decrease) in long-term
liabilities
(47.7
)
(34.0
)
Net, other non-cash adjustments
10.2
(1.6
)
Net cash provided by (used in)
operating activities
286.9
283.7
Cash flows provided by (used in)
investing activities:
Cash settlements of foreign currency
contracts and net investment hedges
7.6
7.7
Capital expenditures
(3.8
)
(3.7
)
Additions to computer software and other
intangibles
(153.7
)
(126.2
)
Other investing activities, net (1)
(10.5
)
1.9
Net cash provided by (used in)
investing activities
(160.4
)
(120.3
)
Cash flows provided by (used in)
financing activities:
Cash paid for repurchase of treasury
shares
(9.3
)
—
Payments of dividends
(65.8
)
(64.6
)
Proceeds from borrowings on Credit
Facility
404.5
380.3
Proceeds from borrowings on Term Loan
Facility
3,103.6
—
Payments of borrowings on Credit
Facility
(296.5
)
(316.0
)
Payments on Term Loan Facility
(3,119.2
)
(24.5
)
Payment of debt issuance costs
(26.6
)
—
Payment for purchase of non-controlling
interests
—
(95.7
)
Other financing activities, net
(21.9
)
(18.8
)
Net cash provided by (used in)
financing activities
(31.2
)
(139.3
)
Effect of exchange rate changes on cash
and cash equivalents
5.7
(2.4
)
Increase (decrease) in cash, cash
equivalents and restricted cash
101.0
21.7
Cash, Cash Equivalents and Restricted
Cash, Beginning of Period
188.1
208.4
Cash, Cash Equivalents and Restricted
Cash, End of Period
$
289.1
$
230.1
Supplemental Disclosure of Cash Flow
Information:
Reconciliation of cash, cash
equivalents and restricted cash
Cash and cash equivalents in the condensed
consolidated balance sheet
$
288.7
$
230.1
Restricted cash included within other
current assets (2)
0.4
—
Total cash, cash equivalents and
restricted cash reported in the statements of cash flow
$
289.1
$
230.1
Cash Paid for:
Income taxes payments (refunds), net
$
70.1
$
75.5
Interest
$
157.3
$
151.2
(1)
Higher payments for other investing activities for the nine
months ended September 30, 2024 were primarily related to a payment
to acquire a minority interest holding.
(2)
Restricted cash represents funds set aside associated with
customer refunds.
Dun & Bradstreet Holdings,
Inc.
Reconciliation of Net Income
(Loss) to Adjusted EBITDA
(In millions)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
3.2
$
4.4
$
(36.4
)
$
(48.7
)
Depreciation and amortization
144.8
146.7
430.1
437.1
Interest expense - net
59.2
55.3
200.7
164.2
(Benefit) provision for income tax -
net
(1.8
)
(11.2
)
(48.9
)
(40.5
)
EBITDA
205.4
195.2
545.5
512.1
Other income (expense) - net
0.9
3.3
(0.6
)
1.2
Equity in net income of affiliates
(0.3
)
(0.6
)
(1.9
)
(2.1
)
Net income (loss) attributable to
non-controlling interest
1.0
0.9
3.0
2.4
Equity-based compensation
16.3
20.8
52.4
66.1
Restructuring charges
7.8
1.6
14.5
10.4
Merger, acquisition and
divestiture-related operating costs
0.4
1.4
1.4
5.4
Transition costs
14.7
11.7
47.3
31.1
Other adjustments
1.2
1.1
5.0
5.0
Adjusted EBITDA
$
247.4
$
235.4
$
666.6
$
631.6
North America
$
207.7
$
195.6
$
538.0
$
519.6
International
59.1
55.5
177.2
160.2
Corporate and other
(19.4
)
(15.7
)
(48.6
)
(48.2
)
Adjusted EBITDA
$
247.4
$
235.4
$
666.6
$
631.6
Adjusted EBITDA Margin
40.6
%
40.0
%
38.1
%
37.5
%
Dun & Bradstreet Holdings,
Inc.
Segment Revenue and Adjusted
EBITDA (Unaudited)
(In millions)
Three months ended September
30, 2024
North America
International
Corporate and Other
Total
Revenue
$
432.5
$
176.6
$
—
$
609.1
Total operating costs
253.2
124.3
21.1
398.6
Operating income (loss)
179.3
52.3
(21.1
)
210.5
Depreciation and amortization
28.4
6.8
1.7
36.9
Adjusted EBITDA
$
207.7
$
59.1
$
(19.4
)
$
247.4
Adjusted EBITDA margin
48.0
%
33.5
%
N/A
40.6
%
Nine months ended September
30, 2024
North America
International
Corporate and Other
Total
Revenue
$
1,223.7
$
526.1
$
—
$
1,749.8
Total operating costs
765.8
367.6
53.9
1,187.3
Operating income (loss)
457.9
158.5
(53.9
)
562.5
Depreciation and amortization
80.1
18.7
5.3
104.1
Adjusted EBITDA
$
538.0
$
177.2
$
(48.6
)
$
666.6
Adjusted EBITDA margin
44.0
%
33.7
%
N/A
38.1
%
Three months ended September
30, 2023
North America
International
Corporate and Other
Total
Revenue
$
421.4
$
167.1
$
—
$
588.5
Total operating costs
250.1
116.7
17.3
384.1
Operating income (loss)
171.3
50.4
(17.3
)
204.4
Depreciation and amortization
24.3
5.1
1.6
31.0
Adjusted EBITDA
$
195.6
$
55.5
$
(15.7
)
$
235.4
Adjusted EBITDA margin
46.4
%
33.2
%
N/A
40.0
%
Nine months ended September
30, 2023
North America
International
Corporate and Other
Total
Revenue
$
1,187.7
$
495.9
$
—
$
1,683.6
Total operating costs
734.9
351.0
53.1
1,139.0
Operating income (loss)
452.8
144.9
(53.1
)
544.6
Depreciation and amortization
66.8
15.3
4.9
87.0
Adjusted EBITDA
$
519.6
$
160.2
$
(48.2
)
$
631.6
Adjusted EBITDA margin
43.7
%
32.3
%
N/A
37.5
%
Dun & Bradstreet Holdings,
Inc.
Reconciliation of Net Income
(Loss) to Adjusted Net Income (Loss)
(In millions, except per share
data)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net income (loss) attributable to Dun
& Bradstreet Holdings, Inc.
$
3.2
$
4.4
$
(36.4
)
$
(48.7
)
Incremental amortization of intangible
assets resulting from the application of purchase accounting
107.9
115.7
326.0
350.1
Equity-based compensation
16.3
20.8
52.4
66.1
Restructuring charges
7.8
1.6
14.5
10.4
Merger, acquisition and
divestiture-related operating costs
0.4
1.4
1.4
5.4
Transition costs
14.7
11.7
47.3
31.1
Debt refinancing and extinguishment
costs
—
2.5
37.1
2.5
Non-operating pension-related income
(4.8
)
(4.6
)
(14.8
)
(13.8
)
Non-cash gain from interest rate swap
amendment (1)
4.5
(2.6
)
1.3
(2.6
)
Other adjustments
1.2
2.2
5.0
6.1
Tax effect of non-GAAP adjustments
(34.9
)
(36.9
)
(129.2
)
(116.5
)
Other tax effect adjustments
(0.3
)
—
(4.5
)
1.7
Adjusted net income (loss) attributable to
Dun & Bradstreet Holdings, Inc.
$
116.0
$
116.2
$
300.1
$
291.8
Adjusted net earnings per diluted
share
$
0.27
$
0.27
$
0.69
$
0.68
Weighted average number of shares
outstanding - diluted
435.6
432.2
435.6
431.8
(1)
Amount represents non-cash amortization gain resulted from the
amendment of our interest rate swap derivatives. The amount is
reported within "Interest expense-net" for the three and nine
months ended September 30, 2024 and 2023.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030944456/en/
For more information, please contact: Investor
Contact: 904-648-8006 IR@dnb.com Media Contact: Ginny
Walthour 904-528-1506 Walthourg@dnb.com
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