DNB - Earnings call transcript Q4 2020 | Dun & Bradstreet Holdings, Inc.

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Operator

Good morning. My name is Sakao, and I will be your conference operator today. At this time, I would like to welcome everyone to Dun & Bradstreet's Fourth Quarter and Full Year 2020 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator would McCann, to President Treasurer Corporate Relations I over of the to and Deb and FP&A. now that, turn like call Investor With Senior Vice

proceed. You may

Deb McCann

you Good for Bradstreet's everyone, results for year and call fourth conference you. XXXX. ending Thank and December financial joining for XX, Dun morning, us & quarter full the thank

On Bryan Hipsher. CFO Anthony Jabbour; the call and today, we have Dun & Bradstreet's CEO,

the the company call, results disclaimer Before include we regarding a Q&A begin, portion call, This for therefore provide related of allow statements statements. forward-looking including may future forward-looking to and me statements. expected forward-looking to the are our

to actual results earnings release described other a The to and non-GAAP in SEC Our due and uncertainties. will remarks measures. filings. to differ subject may risks references and our forward-looking also are projections of financial that include risks from our number uncertainties Today's materially are statements

information provided Investor supplemental now GAAP This replay call reconciliation at information, the the be available Bradstreet's through financial non-GAAP via and that, With investor.dnb.com. Anthony. release website to turn over press for webcast is financial Dun information, slide call to the will & Additional between Relations conference including I'll presentation. in

Anthony Jabbour

& you data financial are the Good XXXX. XXXX significant take our call. enhancements was an to agreement our successfully our and for billion. with markets milestone allowed The Deb. and to for to In raise the was our strategies. and $X.X near year secured acquire quarter flow, our last us million significantly unsecured to cash down our for execute midst continued plans interest and approximately both our us Bradstreet. are our to for of more our Dun leverage XXXX allowed and technology, the financial Bisnode organically our transform time new a now us increased IPO, to and signed able our of challenging to foundation strategy, proceeds and morning, you, a discuss ultimately public definitive inorganically. long-term we're to fourth significantly us and everyone, of notes. lower have and preferred complete ability today expense. both company environment, I'd growth which pay accelerate for our to Thank July XX% business improved and on some joining laying equity than analytics, to thank net This for we earnings more Returning With IPO is and annual like highlights for from incredible $XXX flexibility a profile major dividend growth and saving entire

on we're The closed a expanded knowledge to in additional Global will of example, the of European territories XX% able clients able X, to streamlined to and more an footprint, solutions strategy, mission-critical now and delivery Dun the with signed our GDP the and provide Bradstreet in Worldwide significantly business be XXX,XXX was more make our home nearly acquisition international to data, companies. October, that acquisition step of XXX The XX more channels. collectively, XXXX, Network critical Bisnode of member For of which Bisnode, up execute growth XXXX. expands & January footprint to with local are local combined Europe

the As and provide clients region with and demands. necessary global to to all their increasing solutions across to expertise of a having engage globe, company, us helps support the knowledge local meet and in sizes

legacy opportunity. excited disparate As products, about month, solutions. we're operating we've the along even the of more with around with been for a combination came Bradstreet business business Dun The a now & some

development global legacy invest in solutions platforms of and and the the solutions. our We localized market-leading will sun-down

Bryan quarters. have momentum coming approximately But, forward in identified that actioned have his provide updating will savings strong financial to we rate incremental in and in overall, to for our XXXX of expect section. we progress XXXX. expectations on run have annualized the our underway including already look details, end $XX million also by We the you

XXXX terms strategic able our for of retention were is when position to We a for and the of communicated what quarter with Total in the company versus the Fourth XXXX. prior our our delivered revenues known did for headwinds, the for at prior sizes multiyear points on year. some and the we on revenues basis back was results retention in business proud challenging accomplish challenging retention our under year full macro X% of in a reinforces and near-XXX% we were impact. full revenue XX%, retention XXXX gross the accounts. by the again both contracts. basis an the fourth financial strategic in mission-critical in normalized X.X% just the account mentioned, customers to I'm look as constant turning to deferred able increase of businesses revenue terms Revenue which purchase once and benefit our for way you with excluding net segment solid and world. X% now largest Adjusting quarter businesses we year the a for to grow up strategic I environment. previously were headwinds XX a certainly full fourth Building we're currency year. of what especially Now, year all navigating year revenues quarter of accounting through despite versus And was environment. their XX.X%, cases quarter up year of difficult X.X% year. our fourth provider the XX% the lower a expansion have

master analytics multiyear digital A great was three adopted of with data, the cross-sell by increased us and one points contracts they to business with strategic the to agreement top also global our These XX.X%. in also multiyear not XX wireless that streams recurring solutions. in to multiyear this as they of additional percentage allow We channel have growth, only example providers marketing, continue built-in revenue the U.S. a solutions. create

Next, the Department Small Federal the the and contract I'll of with had our strong government Management able significant or the Agency, we progress a we the made talk Administration. wins channel Defense, we two options about in GSA. the in year Administration XX-month where with further secure were General Business six-month Services quarter, in support the fourth sole-sourced a to And Emergency to

unique rapidly to both be to offerings. through governments domestically As differentiated critical are pleased and and work assist globally grapple a with to look environment, evolving our able we such

of Moving field prior on company technology segment. a online businesses of These customers from year range slightly customer accounts, $XXX,XXX was including the which saw leading impacted the brand to $X reflective and at the more or which of above current world levels management million environment. were the overall by we an adverse to one in hedge year potential spend funds sales our renew

solutions However, of limitations. their they maintained given overall provide the consistent the budget we spend despite criticality with us

have incremental and to the deepening adoption forward We our terms relationships going to begin to continue in more things normalized forward. solutions dialogue of environment as return look of a to

interaction. and digital significant and that later accounts telephonic XXXX Finally, of small reliance e-commerce-centric on mail a our campaigns We execute a medium direct to our area beginning part business that interactions to evolution. shifts more strategy a were went the spent an through

This one XXX with we year. with to and help whose monitor client provide will with platforms bank are screening half provider improve about process. and screen our Software-as-a-Service lens, efforts, the modern further our prior telesales meet continue globally I XXX markets momentum shareholders discuss in were solutions contract over XXXX potential to expand cloud-based my back laundering mail digitization API to digital we compliance in to the verification online a While fraud. available beneficial up Know prior section. Fortune carried top able expanding solution and revenues through we're more From than which progress We the world. international Your XX% They and in their four and versus down those direct around data, excited sales in manage XXXX In new of partially the able are UK, significantly from entity using this and our upon anti-money requirements as expanded declines of will our will our business Customer China's ownership year, we're the banks. order SMB the a operations in secure an offset to be payments

with efforts. internationally. accounting We their sales systems solutions and also Global updating assist A their enterprise continue and will account-based global cleansing multinational and and to efforts marketing sales CRM software and within our marketing assisting using payroll Services, marketing in integrated firm Sage British systems, for be grow to our data market data leader through payment a

of terms direct solutions. expanding higher modern, a our can see our capitalized XXXX, chain; this the is via our client XXX and substantial million that software progress data focused interfaces invested is platforms modernizing enhancing we believe and user transformation scalable solutions is integration supply you In decreased existing made we quality, strong we've innovating in and As global new and outcome of ongoing more enhanced latency. approximately in on and producing development engagement momentum

before. our to curate data an important ingest data sets. discussed as Ascent of we've access alternative ability piece variety we Project As has to existing and our been and data, enhance of our and coverage expand diversify to of continue a technology transformation expand

offering data alternative doing enhance and Dun an enables through with and into analytics the we're Ascent scale environments with the multiple for & of efficiently. We so to are taking now Direct+ allowing automation, our our access on-demand deploy ingested supply customers developers allows data improves cloud of scaling Direct+ in legacy which stability operating accurate continuous solutions our existing our and what to by An us and made significant API. that the sets in Bradstreet infrastructure more focusing can in most our progress chain most results ecosystem. up-to-date production, onto common on complete delivered rapidly quickly costs, modern also providing available Converging integrating and simplifying All set and the ultimately primarily provisioning a freshest, our it our to and further to is data platform come connecting example customers and growth. and existing

Over in focus for creating continue innovations the in all These new and business finally through the to begin new savings reflected This expand which EBITDA our run and of in also to million with $XX global out our from particular data along product annualized quarter. the real we estate to foundation data on be support And next growth. improved curated net the cost we $XXX year investments structure. million invest as achieved Ascent. we back-office rationalization third rolled the we our load was will are XXXX external continue future margins capability we existing sets to of a through rationalization of from reduction and and date our efficiency up footprint as rate our providers is continued migrating

XXXX said I year. As was an incredible

we team great and strategy XXXX for to positioned continue strides make executing in our are Our well beyond. and on

will particularly our will continue small the turning businesses to businesses, XXXX extend area we with help shop, one-stop is channels highlight to opportunities, Now focus I'd work XXXX. e-commerce. transformation provide new our to to on leverage new a and our which digital and we in and we deepen increase from relationships our customers, cross-sell like did small to effort look One reach our revenue as including medium-sized self-service platform to SMB new

improve small multiple of becoming for to a reasons a points digital their including supplier a day or number, to website took established major We entry unified for have our that corridor these for qualified a Dun's single to corporation. expansive host us a site to and of more a thousands clients; to services solutions create provides partner profile largest partnership sales; increase credit gain We registering access but whole looking specifically each opportunity our businesses to and just small small to businesses with a grow small not with products medium current environment to This stickiness our helps for to enterprise clients our designed access business. new business. products, bring business and including coming

with concurrently internationally, launching throughout and in Risk Finance existing on Sales portfolios new and we new the North Marketing our are continue feature for and And to introducing solutions, users be chains, accelerate products offerings. local transformation capabilities to offerings solutions North data largely respective focus America language, tailored XXXX. America year new to supply to local leverage launching we'll platforms was markets continue year. look another technology growth of we will XXXX data These will launch our and we and and market and remarkable through new requirements. but innovative specific with globalizing in existing As poised

more deliver as serve transformation and the of are better new for our our to data integrate scale continue inorganically Bisnode to grow ways analytics Our organically our and and to we look key technology both and clients priorities growth, our clients. for expand digitally, capabilities, to

now to for to And the XXXX. outlook are and We turn discuss over what's for excited financial that, our I'll call come. with results to Bryan

Bryan Hipsher

you, morning, everyone. XXXX year I for full Thank and discuss our Anthony, good Today, outlook quarter XXXX. fourth and results will our and

related Turning million, on the of $X to quarter. a compared accounting share GAAP basis of XX% $X.XX lower adjustment to a basis currency revenues the adjustment to currency $XX constant driven as by income the fourth A GAAP to preferred year's pilot. slide redeemed as net the of impact deferred the This purchase $XX for includes On a or IPO, as was provision quarter prior per make-whole XX.X% $XXX fair a compared a a value was million million result loss deferred quarter stock, revenue Net of a diluted also impact of well expense of million million. a or associated the the income which of $XX fourth the basis X. adjustment $XXX the of of of prior lower with approximately increase year an were net on primarily related $XXX net year non-operating prior million revenue for of foreign gain the was million This Series to quarter. the higher

to forma me transaction get results, X, XXXX. privatization, year January predecessor I take-private if combined XXXX to the the to and pro that year full post results, are Before effect that compared the it period successor privatization which prior full to the period it to comparisons had the adjustments forma give include the pro being let clarify occurred on as

on adjusted of within in for a includes, forma the $X.XX of pro net GAAP $XX to net found increase details forma point the pro adjustment several international of loss lag the be million combined were year the income of to $XXX which press the million, adjustment the which to schedules and percentage XXXX revenues. million, year or million Net basis, revenue additional This EBITDA, adjustment loss net compared an due had impact $XXX For million, $X,XXX release. full a was deferred only $XX contained XX% adjustments, a revenues the XXXX. can On share deferred year-over-year XX compared a of impacts lower revenue of and of a growth. year. loss a had purchase full $XXX of an diluted accounting per We million prior reduction

structural These by year-over-year percentage of basis. changes increase communicated. of solution headwinds the within shift impact adjustments, This to increase lower by Data.com includes previously on legacy decision X, driven purchase constant impact revenues Turning for partially year. of the $XX partially to I'll full $X make fourth of of total and Fourth XXXX third half an was headwinds million, XX% net slide in million revenues include, quarter. adjusted $X now the or million, adjusted on wind-down the total the approximately were of partnership we of known impact lower Credibility currency deferred net nine million. offset government The primarily of million, of $XXX from quarter revenues, increase a our the approximately quarter usage million, the $X $XX made revenue royalty XX.X% approximately accounting COVID-XX of a company point the impact revenues these discuss a lower of by second growth. million $X This from results the headwinds offset as for was known

impact, of of of margin XX.X%. primarily pro X.X%. revenues; was adjusted revenues million. This headwinds headwinds second quarter legacy and of by adjusted Fourth COVID-XX These Fourth made for XXXX Data.com income million, is from overall usage the year company includes net adjusted increase impact of partnership million EBITDA total total revenues accounting an by the an cost increase personnel $XX $X including million. total these X% or percentage of adjustments, partially a to million, management initiatives, of the $XX was Network primarily remainder $XXX impact of include $XX compared we costs increase of offset accounting a royalty Excluding fourth earnings impact the year-over-year million, half of decision increase company transitory XX due communicated. But previously Full Worldwide revenues lower $X,XXX purchase million. growth. and increased the impact solution approximately quarter XX%. of known adjustment as eight the within operating underlying of were lower impact make $XX.X revenue revenues currency adjusted the XXXX deferred combined approximately the an Credibility nonrecurring of million point diluted of adjusted grew for an $XX adjusted deferred wind-down percentage of revenues The per headwinds the includes forma. $XX by $XX million, lower of share items on from increase the the $XXX point million, changes Fourth the unique or structural net purchase XXXX's approximately approximately cost. and the expenses, and adjusted impact public EBITDA income $XXX million net was net revenues to lower quarter's was to net improvement quarter lower total million, in lower company for of ongoing driven $X.XX, known company This driven these

deferred an from cost. and accounting, related cost to in net was company adjusted which deferred point diluted of on margin XXXX partially data by driven of our partially was adjusted cost efforts, lower approximately lower basis adjustments cost. processing million, offset for revenues income year XX.X%, year points the with by was Full items data of improvement. margin our lower revenue primarily primarily driven deferred purchase to net by EBITDA personnel driven had corporate Full has of growth, current and the $XX $X.XX year-over-year management, million. the lower the increase adjusted an primarily impact growth technology lower Finance a an personnel, revenue million, year was from adjustment, total period, five million technology increase XX%, net million of in $XXX XXXX ongoing of and on solution. net adjusted travel ongoing share from by points. of EBITDA $XXX XX Full the to compared deferred revenue of the the interest data and percentage expense, a management subscription Risk on adjusted XXX approximately revenues the higher and basis year along The percentage by cost currency Excluding or acquisition $XXX impact X%, offset increased year-over-year grew earnings net per approximately marketing travel of revenue constant acquisition The reflected these unique $XXX costs in adjustment cost transitory impact current in in impact segment, primarily increase primarily primarily with processing resulting related year, and income $XX based along million cost,

to fourth related quarter to earlier, million. results to for discuss all segments, will quarter now America. the X. million North headwinds of North The America Turning mentioned fourth and our the America, $XXX net $XX International. X.X% two revenues North In slide of increased now I

$X elevated partnership. X.X%. America D&B of of our based higher based driven increase revenues revenues were Excluding increase and X% Sales the revenues by million $X quarter Solutions, solutions, an increased approximately subscription fourth North and increase revenues the transient an compared was primarily of The $X Finance quarter higher changes North of $X $XXX and America these driven underlying and by in an COVID-XX. from lower adjusted adjusted contract million Data.com EBITDA partially Risk lower from legacy million, fourth subscription shift EBITDA revenues, by by X.X% known for America million, a of royalty impact the growth $XXX North million driven by million; government was $X of structural XXXX with from offset QX fourth quarter XX.X%. Direct was margin Credibility was $XXX.X in million were approximately of along partially usage QX, revenues headwinds offset approximately to Marketing API and million revenues.

will year results Turning discuss now America, slide were America. $X,XXX for North now revenues In X. million. to I for North full XXXX

increase $XX the million, $XX million we million $XX and COVID-XX, $XX primarily along legacy due attributable usage solutions to headwinds or by approximately our to of The million These revenues with America, year and full increase within Credibility Credibility of $XX Data.com, was offset were primarily approximately of we revenue partnership the $X.X Excluding partially from due structural changes lower to million million related largely by million, higher legacy X%. net related decrease solution, of our $XXX usage America legacy Marketing Sales were to and revenues revenues to America lower Marketing lower solutions lower North changes to of Sales year North $XX million, increase than royalty revenues subscription-based X% primarily decreased impact made offset D&B Data.com and approximately lower primarily COVID-XX. million. revenues related an $XXX impact primarily the made or revenues API Sales of across less a our solution. approximately attributable net Direct $X million due The across $XX revenues million; our to solutions. full Marketing of driven $X.X in million and of transitory of and partially the underlying Risk within headwinds $XX usage, communicated Finance COVID-XX; to revenues North million our structural of the was to of increased X%. by lower of approximately impact

lower of America addition, $XXX acquired third personnel efforts from Full which for resulting expenses. America operating million, points. of acquisition margin costs XXXX. for increased EBITDA Full revenue year that lower was basis $X.X an to million Lattice, North was by drove adjusted increased quarter management EBITDA year net adjusted cost of ongoing In North XX.X%, the at increase the due to the XX of beginning from primarily

solutions higher revenue Turning from driven Kingdom. an our to for $X or currency Risk million, to quarter United in by and basis Risk Sales the and of million. constant quarter segment, a from fourth $XX market quarter EBITDA X. were primarily increase on Solutions growth $X increased X% Finance in currency to revenues. market Slide million, UK $XX the $XX X% X% in higher Network our million. our due revenues an revenue fourth basis, revenues higher In adjusted International XX% UK of to a primarily Worldwide $XX EBITDA XXXX, quarter were increase revenues sales million, due million and quarter of fourth adjusted primarily due increase constant attributable Marketing X% of approximately X% an The fourth increase $X margin and increased International was million cross-border alliances Worldwide of approximately XX% higher of versus and primarily and of higher in XX%. to constant data API Fourth basis, currency revenue Network to approximately a an on on

In year Turning million were to X% segment, or constant million, currency X. X% a Slide or an on our $X.X increase $XXX revenues full of XXXX International basis.

Kingdom year million COVID-XX, of basis, revenue business, our million currency data million United offset Asian our headwinds, markets constant of increased $X of X% Worldwide solutions transitory Sales $XX the approximately by market, by million $XXX million basis. the of higher million, China $X approximately businesses, $X $X driven $XX approximately of a from grew Network at UK X%, and $X solutions from of the volumes X% Greater $X on million due partially risk of from approximately Network the small in revenues full a a constant X% in million and primarily higher revenue transitory constant International X% $X usage from impact targeted or our Worldwide in million. primarily COVID-XX in or Risk on cross-border increased due decreased $X higher on to sales, million revenues Marketing full sales the UK driven lower $X million million headwinds and Excluding basis. from year Finance of currency International revenues and currency International and of and Worldwide by Network to the

primarily compensation. impact to basis. from revenue primarily to to exchange full prior $X positive revenue net in approximately was was the of million, improved million forma expenses XX.X%. decrease $X Adjusted a million, the primarily increased deferred usage our volume foreign and driven combined primarily of the of approximately million purchase lower our of due the the The lower $XX lower due adjustments royalties EBITDA of Worldwide Asia net million $X.X by improvement Network adjustments from Excluding the market Fourth in product expenses. due to XXXX of quarter year Worldwide alliances compared by impact from $XX Network of year $X decreased of Full X% lower increased impact incremental adjusted EBITDA $XX increases EBITDA to the or for Corporate COVID-XX. International for deferred was solutions due accounting costs including million adjusted personnel revenue net year million XXXX the $XXX with $XXX segment margin to XXXX Adjusted versus net or impact pro of million. for EBITDA due XX% on incentive-based segment and lower million revenue Corporate lower data

upsized of the of of when $X.X equivalents million XXXX with cash revolving full slide line capital X. of our end combined $XXX structure. cash billion. represents due million, XXXX recently which liquidity we to our I'll December credit XX, of $XXX through approximately capacity total Turning At and had walk

us credit X.X XXXX save a As a net gross of ratio leverage basis at on our leverage was The XX December and XX, loan $XX XX, X.X total ratio a net debt basis. times we will was XXX points. principal million was on X.X our senior and annual secured $X,XXX times lower interest. basis repriced This basis times. point approximately On of spread now million term January with facility

organically happy further flexibility progress inorganically. and rates growth credit us improve sheet are with our the deleverage both our making balance are to support allowing to We more we and our

transaction was shares of The newly $XXX facility, $XXX Regarding the and portion placement revolving on from acquisition our cash. of sheet million of of approximately net in with on credit the balance has amount a the approximately of the funded million January cash X, the since and X.X which combination Bisnode, with small common a term loan private closing stock a issued million XXXX of been paid closed and down. incremental cash company

to increase to expected XX% million, an million. be of X. for revenues revenues walk to Adjusted of is to Adjusted full to EBITDA to through range now increase estimates XXXX million. in approximately Turning to the to now XXXX. of $XXX XX.X% Adjusted EBITDA is year slide in of adjusted be Bisnode. $XXX million, adjusted $X.XX. our full compared of an XXXX the include to EPS expected of outlook of $X,XXX expected are $X,XXX $X,XXX impact the the of million I'll to $XXX compared year XX.X% year full be in $X.XX range approximately XX.X% These range million to

certain combination transfers became being now of eliminated. revenues With and internal two are costs the the and entities

of incremental by to Bisnode comparability of elimination off adjusted EBITDA-neutral, the solutions expect We revenues reported the XXXX. the sun-downing includes a to total by to of impact fully that which revenues growth, the that be Subsequent the run Ratos. but prior the year XX-point approximately are legacy application through $XX in have currently estimating will we will $XX have and these full end of on million million revenues elimination, expenses does impact

XX%; average and million; follows; Additional from expense million. shares depreciation of million; rate outlook and effective resulting purchase our approximately approximately million, adjusted of amortization approximately million $XXX incremental $XXX approximately tax $XXX interest of as $XXX CapEx excluding underlying finally are of $XX amortization outstanding expense weighted of details and accounting; modeling depreciation expense to

I Although, to we as with do not to you provide throughout year. some provide quarterly guidance, to the we want progress color how expect

guidance the adjusted low the of the the through we XXXX growth be are $XX.X of as adjustment work in to Data.com we of QX the million and Excluding deferred quarter XXXX, COVID-XX. our end revenue end impact the first in of at wind-down range revenue projecting of

of the end of contractual be to quarter, the our lack second revenues. due with the of guidance and headwinds, fourth range the to transitory As of towards we to range middle expect into growth year new we increases enter accelerating the of ramp-up revenue the our the prior quarter, impact solutions high-end

of we revenue adjustment growth are the half low million projecting XXXX, per XXXX end the first in costs quarter to million first $X.X half. with offset partially second the our the company be in in and annualization are of of approximately excluding QX quarter adjusted per increased EBITDA the EBITDA million For adjusted savings deferred cost $X as $XX.X at in the quarter range of for public

you progress range line to XXXX momentum guidance. below We underlying related the With with second the the for quarters to the we open be our and pleased transformation very of expect our our happy we're third the about high to into please performance range business above end up questions. low be the will the of of the excited XXXX. the Operator, to we of the headed call and and in open we are to Q&A? end and that made now are quarter fourth the Overall,

Operator

question from Your Hamzah Mazari [Operator first of Instructions] comes Jefferies.

Your open. line is

Hamzah Mazari

guess component business? Thank side Hey, of your business. the of guidance? about good the how impact transaction question largely piece transactional My that's of And talk into of your subscription vaccine are first the on successful Could XX%. you rollout whether XXXX baked around about you sort a maybe morning. is I thinking maybe you. is

Bryan Hipsher

the Hamza. Yeah. for Sure, Thanks question.

to we growing I as we nice this right. increase year. it in And the think subscription base the When overall hit expecting in we saw think and contracts. to You and It's drive growth rollout volume multiyear XX%-plus little to from bit what see pressure we of in and QX QX still the COVID starting to XXXX we're QX. similar and saw perspective, a moderate a about continue

As and in about the we QX, XXXX thought no and to it start a considered in those year that longer comps QX, as lap progresses headwind we QX, plan. the and

Hamzah Mazari

infrastructure or to as a to I well. you a And cleaning Could about ramp maybe follow-up to product expect more Got when XXXX you is then you've on talk year? my the moving in the And lot just we multiyear later see it. that begin Thank contracts up business? this you're as you. question Is do event, on it the pricing of see well. know invested pricing. just

So maybe pricing you can into layer Thank the you. that discussion too?

Anthony Jabbour

Hamza, Sure, Anthony. it's

structure a a focused the of service them. creating And provides we're we're for we're exchange obviously customers with said, a that there's offering fair that I value obviously on our As that things of number doing.

built-in So price. multiyear the signed provide contracts tremendous gives from We've increase transformation escalators, well. with a work us which that the perspective, service to across helps all right which areas as business of improving obviously our

of X% to that's to on analysis. over And going your to growth work we're so lot question, some there's get of in great expecting a this heart But year pricing. addition from the detailed of been

work the we're something getting putting with and is about we're excited it. in traction So last we've it at been is where that year that

Hamzah Mazari

you Thank so much. Great.

Anthony Jabbour

you. Thank

Bryan Hipsher

Thank you.

Operator

Barclays. question next Patnaik comes Your from Manav of

Your open. line is

Manav Patnaik

Thank you.

XQ wanted In year those And that number I terms company what to are XXXX. also in America. consistent total and that embedded X% for is numbers. seemed like performance, of assumption your think the organic for I core was full and just perhaps, the that organic the in North number confirm

Bryan Hipsher

Sure. Yeah. in of the Lattice lapped We correct. Manav, QX really that's XXXX. acquisition,

so perspective. QX from that numbers organic those QX, And were clean in and

that As about we the perspective. called out growth from we provided we're coming that from rolling points XXXX, of that is was into XX what Bisnode range

each so, And results through we'll quarter, that from flows lay out as their perspective. Bisnode

Manav Patnaik

add did little a million, perhaps down. you that? Okay, number CapEx I a chunk Bisnode the to hoping high, was $XXX got but just it. break And that from could bit perspective, just felt a

Bryan Hipsher

right. That's exactly Yeah.

adds that do million, as rolling around then from $XX Bisnode run making was continuing that analysis work that the continue their the to next to So business going still to have million, offerings along call we're in past. we're clearly, million. And out. Manav. product that $XXX transition be the Bisnode we're core with in it through the we modern $XXX rate included we is roughly The kind new bottoms-up of

Manav Patnaik

you I that And that is do mostly think -- then can Is -- CapEx? there. could How of that? if that just you follow-up Okay. growth maintenance CapEx or

Bryan Hipsher

of is -- CapEx. of Yeah. the this is A vast growth it majority majority

we cloud. what PP&E, so, I there's call to little. of from little perspective, actually maintenance because shift And now, the have very very would a Manav, our And

of existing solutions. to major internally is developed software enhancements that new most predicated either again, net So products on or

Manav Patnaik

you. Thank Okay.

Operator

America. Your next Gary comes of of Bank question from Bisbee

open. line is Your

Gary Bisbee

revenue just Hey, guys. $XX the the in million just is of on acquisition the accounting revenue. adjustment-related is you difference a you couple elimination only mentioned, and to there little here? to financial called business. Can guidance mentioned what of announced on due what's implied number provide there Good morning. in the was deferred Bisnode or also, purchase that? more A or trying the questions impact, to remember write-down that when I'm color a you And Bryan you the that acquisition, this between the you

Bryan Hipsher

that's right. Gary, Yeah.

second revenue with from that starting So write-downs the perspective. are one, there deferred not

on eliminations, D&B expenses revenues between both adjusted we perspective. we know some that of the not coming the the recent there's But, privatization. the from interpretation of When sides about and to show these revenue I and that deferred So that had of are pronouncement, concept Bisnode revenues equation talk and Gary, be with some guidance out Bisnode. of going the differential we a

back data in selling right Worldwide a were they And flowing that coming so, back. sell data them. we to would some would There were they were essence, have and royalty royalty where were us. to arrangements selling we a products They Network partner, through because were then

expense to them, So but that us. would an revenue be to

when end entities, the you we each of is the expense what on you up the so, -- you ledger. ended and eliminate the revenue side up both combine doing two what And

so it reduced that reduced but revenue, expenses. And also

contribution discussed, the didn't EBITDA was of And so It reported we had the change. magnitude just that the revenue.

Gary Bisbee

in the Like built margin? is that us sense profit much how Bisnode what or revenue? you -- what So that a what -- give can margin what XX% for then is

Bryan Hipsher

Yeah.

So if low now in it, the kind you think it's XXs. Gary, about of

Gary Bisbee

then I And follow-up, the could just. Okay. if

XXXX. I take And looks but call from and the think X% business math in deferred underlying like that XX% impact it got weakness, a Manav ago, -- at year FX out know of the write-down this, am the revenue don't I the sort comping I with is doing think sort if to revenue to you probably it X.X% I of right? is benefit that a dollar X.X%

right that's know, you. organic So, is going I there is that the or right, Is more else constant it something like, or currency on to X% there? or -- something? I think am don't maybe Thank

Bryan Hipsher

Yeah.

then as deferred primarily adjustment revenue it's it last it, you there the if the start XX you about point Gary, take -- one is the of So quarter with in points first said. from And you year. in of consideration

you're math, kind the of it's around X.X% coming doing to that out X%, it you're X.X%. as so And call X%, right right, to

Gary Bisbee

you. Thank Okay.

Operator

Huff, Stephens next is line Brett Inc. Your from comes open. question The

Brett Huff

still Thank Hope you. Good everybody. morning, everybody safe.

Anthony Jabbour

you Thank too. you, Bret and

Brett Huff

the Two know of from business One me lot lots Hoovers different I I there we're out questions on lines. product. that. the a know in two and information product is competition there's investing

question on on growth just 'XX the So the kind then And then can same and update and of that what US. it's in talk in get SMB XXXX? to if the bureau about overall contributing an here we credit

us in bit kind of in I of could you XXXX? give kind wonder what little but you. about a and talked that, growth we expect You if 'XX Thank

Anthony Jabbour

chime free on And them. start of I'll Bryan, both Sure. in. to feel

contact we great from unmatched. our side, And perspective, great our contact on Hoovers got the data, our richness progress continue firmographic make On really a relationships we've we're in parent-child that a data pleased. to very Obviously, data. are

contact building to of work five high-quality on the time the -- continued many have times as hard that We -- as we contacts very at We've at almost had privatization. out. the side during

excited I'd that and And really, at the the high that the with numbers some active. for work share those. we've and So analysis some hit of done we're color we're the other that high Dun's doing is the had really were probably some rates maybe we most quality

portal I we're differently than marketplace historically, historically. is with space. SMB constantly we that obviously supplier as basis Dun have a had really remarks going But said my it's medium a again to for small tailoring the And think we've more different businesses these us. expectations And a of or than solutions host excited call space. been we're improving therefore our it's about daily And that a by corridor are cetera. putting prepared exciting right? the D&B It's creating just approaching this et the sign whole reasons: all really I product, creating capabilities the having that at the on -- we credit us of to profiles want for together we're Connect in as So us that have in space talked to more coming well SMB number for which has last for be

the with that with capabilities their So the this to salable well. bringing portal excited We're we're product SMB well market just type to partners segment. as it's on as

clients our segment. richness the of for onto have is, that we're benefit our And be we obviously also the deepening who with a enterprise it'd relationships that are side products offering So portal. putting

in So of we're we just about both those have really excited efforts that areas, Brett. the really

Brett Huff

Thank Great. you.

Operator

Your next Silber Capital Jeff question Markets. from of BMO comes

is open. line Your

Jeff Silber

Thank so you much.

moving curious as when I mentioned clients deals mode XX% in contracts think multiyear are And that about now your are of are future your of just then well? you Thanks. you that Are multiyear. most contracts? renewing

Anthony Jabbour

Sure.

Our direction sales been a on shift from go-to-market perspective, a multiyear. really our has

set. not stickier They're their relationship. transform perspective, and continuing dots continue multiyear. obviously that to. programmatically contracts we're would to contracts solution series get internationally. It but which our getting us business a their There's of creates more makes both yes, to we're But connect in XX% going our API that what XXX% push something get effort It terms sense we focused XX% way it if are companies in from don't takes efforts short so for clients as to they business us, space. our well right, a part. the more as in they and sense nature. of connected getting you to of offering a makes as to leverage now on domestically all short-term being Most that our then that the answer of It's we're And is, on

multiyear for also sense So, makes to want it them a contract.

And pursuing reasons, so those that. for all we're

Jeff Silber

And my actually for is Okay. Great. follow-up Bryan.

Looking looks EBITDA at decline to guidance, you're like adjusted XXXX. in margins your it implying

take bit Bisnode that I that been? little this out, And is margin the you lower-margin would seen would earlier do. Thanks. mentioned to have expansion a know year? if much of You business. would how is tough this acquisition a But roughly we have

Bryan Hipsher

that's Jeff, right. exactly Yes,

with the And within And coming right lower-margin we Bisnode around about of this XXX of bps perspective. put plus expansion from us had so, had from sort XX to EBITDA XX-ish, this, talked our But that through. call range perspective, from it the perspective. you margin that

the expanding towards still higher put we've of out range the kind of prior end So, there.

Jeff Silber

Okay. Thanks Great. That’s very helpful. so much.

Operator

next of Sachs. George Goldman Your from comes question Tong

open. is line Your

George Tong

into good Sales sales, a of seeing perhaps drivers and you're and can dive you segment, America with thanks, within little talk organic Hi, retention North If I deeper rates F&R morning. on focus new and for wanted to growth we bit XXXX. about the trends, within then that cross-selling Marketing?

Anthony Jabbour

Sure, Yes. George. there What we're seeing a buildup. is

And capabilities is with retention also an we're traction So new the improvement from seeing market. perspective. all, to organic first we're in a developing rates, continued which that our seeing growth of positive bringing we're

focused as Analytics we drive we've And et last our products, coAction analytics product, on creating launched we're of cetera. talked Connect, very had new that growth. So, a year, risk that Studio, we got innovations new our number will about, D&B our

sell that us obviously the as to and what on are we've can well. one, been as strongest a most those the about, talked clients our larger-client has XXXX, we excited But excited we're traction that. there And compared about so, more of as of I'm that about segment in not And our there segment. probably is, get number the that in going and segment the SMB portal with -- for had got things our that we possibilities do

George Tong

just topline just the talk you helpful. now, initiatives That's top little perhaps the growth. Just you it. a you some and have well the of Sales and to data two one the planned as go-to-market analytics that as data for or a XXXX? just that And have then you Marketing. expect top about most bit as that products contribution talked have and know, I for the follow-up, Got you about can then around

Anthony Jabbour

part of at we've just don't these spend XXX on the covered of enough our Sure. a covered. stream another as going of businesses know, XX kind each businesses time so constant there But of From perspective, work data in about talking a million we things. now transformation. quarter, I

additional is contact sources. going million talked around bring like high-quality said Project we on data Our alternative Ascent we're We've data, that I XX contacts. customer with to onboarded,

beneficial are our positive, as we already side highlight also, XX one and so on as has a I'll development. far relationship them expanding increases and particularly with very fueling have as owners, a our data is the We Analytics Studio new probably other business I'd had And analytics universe and of them of And then clients. in significant building been well. say global them our for our that the on there with working co-collaborating

-- got check which a the said, like great actions in time we're we're meaningful work progress, where going at, space that all that back in every lot on of So gives paying on we is taking we've I we're it's we're us confidence that's off. work where seeing the that the putting

George Tong

Very you. helpful. Thank

Anthony Jabbour

Thank you.

Operator

question Kevin next of Suite. comes Credit from Your McVeigh

Your line is open.

Kevin McVeigh

of we else around on Just Hey, wonder so XX retention was or that, the going what client understand just again, anything Thank that. what with force? it good and you data, sales us Can satisfaction on very, more curated much. basis forward points Great. just improvement. kind can you I changes drove very in expect or the that, congrats help number.

Anthony Jabbour

certainly, quality AI talked business, in going we've all with transforming and nobody data lowering a said, more that more I'd we've, our to see. I business that and improved talked improving client uptime, this say, every has Thank about like cost. latency, of runs by transformed it all technology, things the a and would leveraging We right is perfectly. has of our and look to you our the across improvements is translate improved mean, it Yes, our improved of about doing retention. Kevin. we're previous part our terms the you'd that client services part it in in large things our the you calls, I improvements, of And constantly a on operationally obviously

things But we're that our We've it. bringing back products, there Kevin. with are at business? is excited I got to partner we're we've our these data really measure And the tracked think a to they and really them the contribute to help these I confidence of with? seeing coming to who out right? launches and the our and process all their the progress looking in can rigid making. into things data, data can clients different getting types on led we improvements transform of think to and all in want that because terms so about that And look retention, of I for, quality, as build Who that amounts us, new continue everyone that a continuing from everything, we're see

Kevin McVeigh

the to ton just a impact Is be about what relative makes would Bryan or then I was sense. I revenue that? That and any core quantify there And way some talked then business within of the you it's Bisnode. that Anthony, know lower-margin maybe overall. sunsetting on don't would to imagine probably margin what

Anthony Jabbour

of post-synergy it be especially acquisition, to our sense perspective the we honestly Yes. are It that growth clearly we I'll and you -- start is and wasn't would Bryan. getting margins. from do are impact it business can the look the But had acquisition, distraction things were there that revenue the our would some strategic. pass to all in Yes, a are a parts from in that to when you sunset. they interested I'll there as high-quality revenue, that and going we wasn't but made at revenue imagine,

looking we're years impact more Bryan And move and of But modern to... from want you them sunsetting margin so to probably a the do couple next solutions. to

Bryan Hipsher

you imagine, elimination going to of thinking these And solutions. about come can the of of million, my in call in million being the synergy products, $XX be when we'd be winding Dun right? legacy two down overall the as the remarks, years. to & the some mentioned from it solutions, that Kevin some as next Bradstreet Anthony $XX by about said is we over essence replaced That Yes, number about legacy prepared of going so is we're

our Marketing And Sales overall of along our products, lot to products. opportunity be with Finance a right, portfolio, so, Risk and under and consolidated has the

to we'll certainly, look expecting. be to synergies, factor $XX to in million so, And a contributing we're that that

Kevin McVeigh

all. you, Thank

Operator

of Your next JPMorgan. Steinerman Andrew question comes from

Your open. line is

Andrew Steinerman

Bryan. Thank you. Good morning,

heard You of if would it at said range, low-end I revenue be the cadence that first correctly. full quarter the revenue year

residual to will from So, that organic and much sure, revenue the make be quarter? could COVID, drags constant first X% just including, will you're wanted if also quarter that first Credibility. how just I in And Data.com be, saying mention, about those currency the drags you

Bryan Hipsher

Andrew. Sure,

said, So, if look this you grew, X.X%, we it, call of at constant currency AFX. we out backing kind as about Bisnode X.X%, quarter right,

not that would And that, than quarter high so, or Data.com would but and first the little down, pattern? look From two that roll impacts in QX. a QX, we expect we that more to similar bit be, then, the in better last expect the to COVID are are portion in the as of and impact right, quarter so, first QX to as remaining similar really the

those, million million apiece. So, each $X $X of call

Andrew Steinerman

Thank you.

Operator

back now constraint, call remarks. to like over to, Due would for the turn time Anthony to Jabbour, I closing

Anthony Jabbour

-- Bradstreet. the maximizing on continue a focused great a And we have value. pleased we're we'll We've summary, In made to transform you. Dun company. continue progress be to with Thank shareholder & to

like interest, efforts, I'd Dun joining you & the their us thank Bradstreet, for strong to on for Thank and today. their clients for in Dun always, your relationships & Bradstreet exceptional partnerships. and and our As for call my colleagues,

Operator

This conference call. concludes today's

disconnect. You may now

Dun & Bradstreet (DNB) 8 Feb 212020 Q4 Earnings call transcript