CNNE - Earnings call transcript Q3 2021

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Operator

Good afternoon, ladies and gentlemen and welcome to the Cannae Holdings, Inc.

Third Quarter 2021 Financial Results Conference Call.

During today’s presentation all parties will be in a listen-only mode.

Following the company’s brief prepared remarks the conference will be open for questions with instructions to follow at that time.

As a reminder, this conference call is being recorded and a replay is available through 11:59 p.m. XX November on Time XXXX. Eastern would With over turn call to Jamie that Lillis I to of the like Solebury Trout.

Jamie Lillis

Thank all of thank you us and you, today. you operator joining to

today, and Bryan the Officer, call On Chief Financial Coy, have President, Ducommun; Cannae's company's Executive the David Rick we Officer. Massey; Chief our,

are involve like uncertainties. remind following contain may forward-looking our that begin, historical a of conference and this not that risks number we that statements statements. strategies Before expectations, to call including I Statements remarks intentions forward-looking would hopes, are you regarding about and Q&A facts statements the future the Cannae's or

a are statements which result statements and include, quarterly detailed currently letter, future to our undertakes The this statements, otherwise. released expectations non-GAAP filings future the may financial Forward-looking projected. as information subject available are which well to are as remarks and or operating management. measures. but The and financial in events uncertainties, also in those as Today's include limited and company risks our will other forward-looking to results statements to to, whether shareholder management's any statements as risks the results based obligation on factors actual of are and of Because fact, afternoon other with was beliefs not based new information, SEC. differ references and assumptions to forward-looking made not from update by such no materially on are

would then Cannae's few open Massey, to the line a financial brief will the letter. provided questions. information our GAAP the like to financial with remarks Additional turn I is information in to who including and for CEO, between information shareholder open call over Rick non-GAAP reconciliation now

Rick Massey

momentarily actually Cannae potential he's us Thanks, business He's Jamie. working leader. on he – excused working business. is maybe piece delayed. off of because on has Bill is Cannae Bill our Okay. or

the during may join he may he call. So not us

So back today. quarter you've got the backup

new revenue to accelerated points. continued quarter that Bill's low-digit of we pretty a management is nice growth I then more Jabbour and XX%, companies, with strategy, on that just Anthony's Duke to going with that refer sorry, growth The organic that execution currency XXX forth. began going logos. and to enterprise our this four and increases customers, were horseman. as active & in on affected Bryan XX quarterly what be want Anthony to Bradstreet's from is is small- organic continues our, our which a a added this to driven third a to They they document, revenues And had results, America you In believe able lot an we growth, of key grew and up-sold lot X.X% EBITDA It's second in nice that the lot beginning continue They was price and accelerate. story third constant they international. and got than on the quarterly North cover We – approach company's the a a about We're to start, we both have and is basis he do compared with they're of tell we quarter They to organic is that. to stock our quarter. our think XX%. of points job eventually to growth existing been accelerate recent D&B in numbers, a an It's really revenue It's to It's in that of XXXX. Before and Dun products active growth business, was said the detail our in so compared basis They me manager new to multiple that's the they going is believe they their as business. valuation. part re-rate results they their acceleration got organic grow best to they're events revenue more the through improving quarter below all outlook by quarter, calls website. off what – They we adjusted the a to which show momentum marketing going in show growth get want start always call. The XXXX. not third believe portfolio think acknowledging medium-sized growth by XXX on we're their to got that. which to I about update.

and So XX% quarter. their happy of me, They XX% originally a personally coming increase call been a to platform. own. some BPaaS in results growth They they full they going of to this we number but so year. the to be to third it's Alight. They along had quarter, of BPaaS the happy I'm shareholders. the they're of owners. the in believe, dark on today they're we're their the had think growth that, It's great a it Ceridian. stock I in be software quarter own out, and Alight reported earlier achieved revenue the projected growth pleased days also sort at you're XX% in enterprise for third achieve reported posted here Alight We're of had lately, incredible end engine bookings the you with is going to ditch. of coming happy already great revenue, that out revenue actually which the And

going here, or few more we're we're X%, wallet And up in X%. Bill, investment that. We very leadership. expanding growth XXXX, to don't their that about team maybe is X% up a going revenue past excited in CDAY was obviously is guided of offerings. I our talking And a to that, set. public and And David "Well, I includes the betting provider expect Sightline payment quarterly of get I platform. you but a, done we wider than for today quarter maybe are long S&P is revenue X%, for funny, inclusion XX% deals Stephan revenue X%, almost started multiple in and solution growth. and we excited online near this very continue their of belief press consistent company. we our in prospect sometime particular product runway Then, And Retiree own the Those about to very casino markets. has just XXXX ahead they the the is their payments strongly times the all man the third We report BPaaS can share be five Ducommun, cloud to to X% and And besides obviously this the his and three and that said, talked affirmation is our about sports to of to for Alight's, we're an Venafi, a to payment table million Sightline. in about to to Aon because physical product. guided its it. gaming Their casinos, and year very with betting. in iCasinos consistent incredible. my you with lead deliver owns $X as from And Health company. it's and Sightline going what Katie, think release, and second the in very vision they which to grower feature XX it in years. Cathinka the number This slot And the investment quarter, It That's value listed of in they billion and cashless of in you're Ceridian growth machines, it's we They've going for and EBITDA. were plus he unlocking the and best-in-class. happy now Exchange. out So solutions I results Then expand Ceridian a valuation opinion Its owner think in excited by this very we're company their their online The XXXX. organic a future. ConsumerMedical the games, provider, are personal and as but only growth there. on outstanding but his And put revenue started particularly we vision methods Stephan's a -- for didn't maybe very of really are that original gain get X% -- President the well. we high down, represents power increased supports accelerate $XXX to XXX. following creation the I'm -- a sorry MOIC times is happy Bill. write think own a be mean, post-money much it our evidenced our higher they to continues of bodes is a and cashless of single-digit continues and re-rate, methods charge Cannae Alight

think to a of that's in -- registration I we companies company to with exciting announced -- market position business. middle -- the before next with meet year fourth of to everybody it's quarter Paysafe so digital forward. the got wins open and across first this I've a acquisitions several team transformational. of guy. quarter the slick They're old take school happen these there. been forth the XX verticals Rule Michael their business got to -- well And SystemX smart We advances really combination. casinos understand. we of It but process. they of continues Thursday move a merger chance it this [ph] impressive, digital the is a we're portfolio and study going impressed easy this in year. And Glynn, a kind rare and report of -- to another is one very as -- ultimately to cash, wallet. an eCash cash as meet Trebia's We you they're It's our broadens business that This the chance public we don't it's ask patience management very are commerce We pretty is opens. to banking. generates to very three that's have and of think gobacash says, company, morning, And ATMs, also very to business just inside going a because do. this not to all think company a transforming from payments We and

think We it's So we We to bigger. going be lot like like the management. business. durable. the We it's a think

again with But our And do. teams we -- to as we work unlock but encouraged will portfolio. I we So value can't mentioning know more the can't companies. our our progress I'm our remain month. we to go particularly this without portfolio I to within lot next supporting conference and have we're Bill engaged with mention portfolio -- our going management our a and

as at can All get of our been invitation, well FNF. companies Vegas Coy, Jamie in significant X. I'm And like be there Bryan here Cannae, portfolio not CFO. if and would It's have sure our Black Knight on or you and will you an December invited as

we're for So ready with operator that Q&A.

Operator

Thank your Instructions] with proceed first the you. Campbell question Please line from comes of [Operator Our question. John with Stephens.

John Campbell

Hey guys afternoon. good

Rick Massey

Hey John.

John Campbell

the mentioned backup you quarterback Rick, comments.

coming think I think several right. I worked for all years Brady out that Bledsoe in ago

I think hands. we're in good

Rick Massey

going more say in would I No, this for Bledsoe like is Romo.

John Campbell

noticed you as that letter was you. shareholder mentioned million. of the In the $XX I guys got cash balance yesterday I

maybe you million then shares ago. a of ended And you like $XXX a Is quarter, CDAY weeks or shed just thing, so that million the the It some can up short-term to think light holding you the I of that a is pay kind sold picked cash. or that the debt? couple pretty looks a $XXX of deployment there. company investment big Was new on? off

Bryan Coy

$XXX John off entirely the it. all loan Coy. margin is in Bryan We this of October paid million

John Campbell

math’s you outside scores CDAY ago, did of And it coming. then weeks of looks up. monetization, a got the a you That Okay. more guys like couple couple

bill. you and Tree You got Baking so then the Triple got partial Legendary

have guys You busy. been

might and you're any gross curious the deals ones think from I expected just be always other missing busy. proceeds here? I but about those

Bryan Coy

properties the this will another there $X come that three all less on John, another think two to in. $XX Bryan. with get the that or million combined will $XX January. we'll and probably We've this got in of I maybe than earn-outs ahead million year all some that years mentioned in you million come Proceeds is in be will

John Campbell

a be then often ask And it. fluid. to quite Got think we question tend I things

there. So answer I this might think here the to change and

was the me heavy going in just You way strategy I a investment And last about in investment level mean SPACs latest it little help shift any level on which come high market late large of back couple type strategy, guys it guys -- will in Sightline the you? a like on you of you to probably thoughts the kind that to enticing private side is forward But Is bit are high looks or were giving and was there? it the kind what the going address very year. a of think going depending about this of go in kind is and a then Just weeks deal. Vegas. just really

Rick Massey

but I We're and back open. to as to say go going back into and SPACs to X deployed, looking we're -- we we in have would that surprise do opportunistic told not have realm. what sure look investors, go We're XXXX X this get that been these going you a of were that not -- X have those We're would we deployed I'm get we're them if to at us. XXXX, and to going two going

Our we has founders. say, not like will butter going more stuff another vein bread be us more or likely looks management that you'll with out least making positions John cut influence teeth And to or run eventually. taking control been in SPAC but at we and companies, do of more heading. management I won't That's it's see shared where private control where to taking that's having and and gold kind our is think, their -- continue on investments to that probably

John Campbell

to jump back sense queue. going me. to I’m guys. Makes Thanks, Yeah.

Rick Massey

That’s you had. all

John Campbell

I’ll be back.

Operator

Zaffino question comes of Ian next Please line your Our question. Oppenheimer. the proceed with from with

Ian Zaffino

you Thank Great. Hi, very much.

As of ASC? a target the or a of far announcement expect SPAC its comment still on as deal yet, What there's should confirmation you a as the the found made that we SPAC far right? there hasn't deal an as

Rick Massey

number with we've very identified ASC, a targets. had discussions of and have attractive

with have going We to not right old time. talk a Bill of valuations a number of we're partner We we're plenty identified about wanting it the to People little now. about we've because patient nervous and be is even part And to others. -- yet. a are in ASC still And year us. got

and Bill it that's so, get investors disciplined and not we're let going we're corners we're do something So going and yes to to not to right a in hurry not meet standards. cut going and

there. SPACs. fished compete, there the of -- not but there it as with might we'll companies still are plenty competing M&A. what. Believe talk seem has So SPAC are we're out companies or that out with IPOs other to not, We're and market only we When competing

So...

Ian Zaffino

about Great. Okay. shareholder investments alternative How in you And also we investments far thinking private capital then now, a as there? place. have buyback maybe versus are out the returns as

Rick Massey

-- got it answer me back say, we to pretty We're -- We've presently always the an of -- I in are backstops kind me. and -- out bit. a have I the buying stock picture the And going going much to let a them. to think our few the we still there. And on investment those within we're to of but going much spot. are resources investments our good the much own want weeks, have satisfy have to be a we to for I return change your buybacks. other give want we called. much the have return twist how to of about us and to And going But better how a And back. looks question, two are picture think little at always just next better which those we the going $XX we're to for extent that's And be going to always on alternative have other to available we're stock of, plate. even investments capital buybacks And about that their and buying return on own I'll backstops. and

Ian Zaffino

queue. hop in back much. right, Thank All you I’ll the very guys.

Rick Massey

Ian. I too. know one had that all you question you, may be still on the I you Thank phone. answered know for interest. Thanks hope John I you that. I had a -- your around

Operator

next with a from [Operator Our Please with is Instructions] John Stephens. proceed question. your Campbell question follow-up

John Campbell

be would back. I you Told

Rick Massey

Yeah well.

John Campbell

all your kids guys kind good question impossible in of the the of got move that me. you considering the if a that throne the to or stage? last past it's for feels are some Alight you It's to top It across you guys But holds or at Alight out to portfolio. myself have past might name it's One one return this like else more out that of to I've kind favorite get of it's considering know and got leaseback what then seeing still good the as guys child. you related but event the risk stand out go move. pointed I called a and might of portfolio. stuff. -- Obviously, really Curious, disconnects lot to potentials had

Rick Massey

love me just can Bill Bryan. just go morning. Alight idea. at going I the them. you are thing to get this results see growth single-digit still of they're big team. not park. But reported love eventually look think revenue going and I some We a Duke do That's the they to knocking not I out eventually. a think And the to and and re-rate. hit It's not come management They buy you I the company they're think what high is do big going

product market. addressable business. It's gambling, real big -- this big Duke got a investment also this I'll the triple do, if could weed. say, like we'll growing it's But or Sightline hopefully personally I So, It a that me then this gambling cashless real total a whole only and be -- about knows and in idea, is a than get a casino happens. double is more

for has I'm his that And Anthony like really he's And I are you the Dun out. aware. behind organic & line on look about most completely sure that. all way So, growth X-ball They out Bradstreet. dug revenue got think I reasons

I going the is to trade -- momentum. think one a they're be nicely year. I going showing hang to Lord And lot is think that markets on. that one and next of Will

John Campbell

guys. for Got Thanks the it. color

Operator

the There remarks. back like for to the are to I'd hand in questions management closing no queue. further call

Rick Massey

me. think I that's

So, operator. thank you

and December forth. excited will be Xth will remind keynote in said again teams fun. Management to It you will the really portfolio group be be one-on-ones, want Xth. like whole substantial to our meetings, something Vegas continue opportunities. so presentations, our We Bill the conference the I be or and our portfolio about company will be like from hosting on there; there. I about team will Bill give introduction. that, Las

these You're going to impressed be very folks. with

it you So, for to in a your do if we think there. it, you, it's pay see to company. I lot interest off. you hope I work this, know will of Thank but operator. Thank understand our you

Operator

Ladies Thank conclude and your teleconference. you does participation. today's gentlemen, this for

time You may disconnect your wonderful day. lines at have and a this

Cannae (CNNE) 10 Nov 212021 Q3 Earnings call transcript