DNB - Earnings call transcript Q1 2021 | Dun & Bradstreet Holdings, Inc.

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Operator

Good morning, and welcome to Dun & Bradstreet's First Quarter 2021 Conference Call.

As a reminder, today's call is being recorded and your participation implies consent to such recording. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] With that, I would like to turn the call over to Deb McCann, Treasurer and Senior Vice President of Investor Relations.

proceed. may You

Debra McCann

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

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

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

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

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

Anthony Jabbour

morning, Good everyone, thank joining us you Deb. for earnings our you, Thank call. for first quarter and

our new to We solid and adjusted increased increased and with have as in Total our North of business and was have start XX.X% XX% revenues year we the a revenue the and contracts. we COVID-XX off strength headwinds made our made partially was XX% offset revenues long-term results increased by retention final constant start the and the existing relationships, are the integration company price multiyear international enhancements quality us of conversations of Data.com approximately finished financial the of and Overall, deeper we quarter with The both now cross-sell in our pleased as we under Bisnode. of execution in with America. have as adjusted quarter and XX%. about feedback X.X%, for currency EBITDA are opportunities continue Organic underlying more are We the strong first with of products. near-term to resulting objectives. technology to transformation and customer positive allowing data and productive quarter progress significant and

we private. with our XXX our million took adjusted As we cost XX%, the of original delaying program, by annualized basis the $XXX anniversary the margins cost contributed savings. COVID-XX expansion quarter two-year run points of of target savings initiatives, some we savings planned to the by our finished exceeded we rate reached company when over which ultimately Despite cost EBITDA from of

marks this our the a drive assets. we cost of that efficiency, note terms is we in of also out that Meaning, our costs number. of a while continue net and technology cost and formal savings expanding through operational and solutions the just cost invest by technologies, completion to in complexity. amount we reduce our data to a further figure It's took to significant enhancing program, integrating our business, back-office primarily the amount we discussed important significant and While footprint, the savings will business, ongoing geographic to optimizing modernizing of continue improvement

during new of and look rapidly much we foundational solutions. to XXXX, as leverage in is transformation more While ongoing we've enhancements was effectively deploy and heavy and completed the our XXXX made the time lifting innovative that to

with continuing monetize review. highlights After new success finish to innovative we're products and ways, customers, are strategic financial over call I'll continue on quarter our the questions. grow share up of the these pleased approach new more and relationships Our their localize to priorities. key now lastly, priorities the with wallet risk taking the launch domestically, near strategic your by products In space and retailer their renew Bisnode in SMB our towards to our largest for we share new for some XXXX existing from they to while as quarter, with first the that, the before acquisition. clients to strategy. globally, made to XXX%, great strides with integrate third-party Throughout signed our has We're And ongoing turn the we'll expand and online team management expanded an support I us. North multi-year having renewal Bryan in-depth America, with a executing

we chain, continue continues support to client their the to growing their their controls global expand to and around As are enhance supply needs. pleased

a methodologies, third-party the early glad The and customer. The as our multiyear customer there has who with of business. renewed ongoing with data property such on timely strategic Global the the with go-to-market global efforts, business, most our the in for these out account solutions. close accounts. focus of quarter, proper result pleased several are access this a International and strategic one program and business efforts largest acquisition. we firm, ensure a data XXX use opportunity. deal with first their well supply and and for we underwriting quarter. of In leverages wins We first Bisnode, high-quality chain on In corporations, a the to a re-architecting seeing marketing both the solutions traction was the to another demonstrated with to I'm better from signed extend prioritizing by mitigate we renewal new large base risk client as simultaneously core rolled been are risk capture significant also insurance multi-year complex compliance relationship needed extremely current We throughout our to risk to client data monitoring, broaden expanding their large across the client, multinational to global retail key access their casualty and

our is result global identify into Our screening global solution and multiyear requirements. across flexible insurance America. corporate improve end-to-end leading their and To was Asia UK a fully The a help a by in D&B with and is and a XXX, reduced in deal presence third-party to working for them risk. Direct+ risk Global management of with global integration growing CRM to a Generali, provider as asset consistency team ways well provide Europe position underwriting compliant the their as Latin businesses that and with the commercial system, solution and Data of

XXX engineering leading risk Global industrial region Linde, member and of Linde BXB wanted to a in monitoring company and more and Europe gas North, their global checks is of company, a plc Another improve customers data-driven way. credit

Solutions us and We deal. they are new and business multi-year chose Finance D&B Risk bring pleased a both

on is efforts, immense as a the roster our and We innovative the I'm continue mid-sized we we clients partnerships. making business with and small our key as excited XXXX, in to is to the enhance market opening through we After One clients. update with client is progress with of strategic to in see the XXXX. And priority strategy expanding have that I for you market. mentioned this our existing are of pleased have well particularly a SMB SMB and relationships segment marketing worldwide, momentum as remarks, through growing my difficult delivery a been opportunity us in re-emerge. digital mix beginning to

risk, marketplace and a identify a of The set partners business and would existing section offerings well digital in purpose product product along along offers a a sales a businesses The a businesses, we're businesses maturation. gig of start-ups D&B as the our of includes each behind software new business and platform. the those finance, Intelligence benefit COVID-XX, called D&B of product of our and in much in Marketplace dataset D&B the personalized that stage our allows our operate improved dnb.com from small significantly with includes and solutions, formation primary services much rise marketplace. makes the it combined earlier the which Marketplace, to marketing first Data our D&B by from more to quarter was purchase driven creates two as sections, self-service resources manner, for a marketplace set user, our This from easier of driving solutions partners. has the effects As called D&B that launch for recover from with and small solutions and especially small Visitor our section begin of utilization significant This also economy sophisticated curated their seeing small partners. those that to solution

While broad-based Dun's marketplace, a for and integrated of the Essentials, number Manager in best of will partners quarters, that available the and are Plaid, drive outcomes we're the Analytics add Email is examples coming one this Credit to continue keeping Credit mindful preferred solutions are not Hoovers D&B few IQ, will that believe in our as but new solutions Connect. D&B of Monitor, SMB Signal, today marketplace the Studio, with we we customers. has partners limited, A that solutions

Direct+ D&B rates. partner integration, with Amazon offerings as such also SAP have Spark, Business KPMG with Ariba Access special and We

increase small of Bank This unified their with opportunities first a overwhelmingly partners positive datasets, reach range the from more offer can data and paid key Business Portal, example has it the something grow expanding digital Data and ability core major millions directly commercial the America. offerings we of existing and us launched to it's a ongoing solutions with mitigate banking continue log Today, feedback data D&B driving their meaningfully to in get our datasets quarter, great solution existing data IHS set resulted of power credit healthcare XX% the from financial engagement purchased XX what them curated broad it this our Advantage to doing the while into make the how which in D-U-N-S ecosystem. easy D&B net we're of been offer users alternative The Customer differentiates A a already Number personalized unlock Within through partner already including portal in inside data. within cross-sales and increased to quarter. a also identify already And risks. platform. D&B, to first our has we're D-U-N-S data sets of allows append insights our providers and And because small from products America we to businesses exciting is access Market. to around the to in User experience the during single we and monthly. platform. to are client's digital match also the score our Marketplace, their subscriptions it's business through of power business data to for that adding the is Number of IQVIA competitively. fleet These XXX of outside new a buy help D&B our first is we're clients Bank reference institution and D&B, have and sign-on, partner the of D&B while became

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or up D&B The there. a a data, MarTech third tech single solution Clients of measurement use sales and D&B the products through in breadth build we sales that marketing a channel existing launching platform use Rev.Up announced purchase customer's critical capabilities and even and activation, and Yesterday, a Rev.Up, workflows providing to automates simplifies specific start integrations. targeting, and can easily of is cases. open or stacks priority that by full architecture integrates the with from new

increase adding demand of collaborated and D&B also experiences class Bombora extend best omnichannel Folloze and intent offerings Rev.Up capabilities and generation. insights by to We the have personalized in the with help to further

solutions unit. China Analytics, and key D&B Finance which We're the international Analytics late an and an in Finance execute. pillar how we newly more the that launching growing partnership leading segment, it Risk great the launches solution We support starting Data markets our on is approach focus XXXX, UK, this both of more worldwide in through accelerate well rolling in the in we're account-based markets. credit In complementary within about to platform. Greater Bisnode providing acquired of our Europe, Blocks of This additional it's recently in XXXX territories. just of also with on through which region as these game-changer our DataVision holistically Rev.Up entered India Analytics, powerful the our is addition, with playbook, along network XX marketing integrated forward we three momentum In products to example we business our are continued of and Rev.Up our continue Risk sets, product we've is clients launches compliance a new describes to risk as partnerships. third-party a platform company integrated the we and serving platform is platform, first the new an a look introducing D&B behind in markets. an solutions integrated and thinking updates progresses. cash And partner how D&B data-driven platform. created in This multiple a MarTech in Leveraging vision across into integration and localized in out Finance as a our quarter, After to

close, the together and off phase we're two leveraging Regarding and of transformation, rate the coming significant first immediately through In D&B. to we start one principally Bisnode million $XX leadership savings a of as same to of continue combination our the efficiencies see the transformation actioned following successful the actions approximately QX, that two to D&B led Overall, past annualized of rationalization. these we completed playbook run years companies. great have synergy we're senior

excited remainder continue with share increasing the strong and terms together. have the on about our along on financial products. make to accelerated internationally Europe corresponding accelerating better Finance many are rollouts and the Bisnode and progress and progress with results we sales laying for the this are for innovative to are new Hoovers, of of With other European built ways, of Several in model new and products localizing and quarter capitalize integrating our more now Risk to business clients, and to half momentum Analytics, throughout several developing working start our with projects, with synergies, the a QX, Data Bisnode discuss streamlined a SMBs I'm Bisnode. solutions sundown turn model. also XXXX. Overall, a our team call fully including for be These, Analytics, into legacy during product robust in we our the making recently Overall, pleased for first implemented Bryan to expect Blocks I'll and really operating growth few. that, D&B to business foundation a The teams about global XXXX XXXX we're slated established the modern consistent we're name XXXX. over wallet domestically and strategic of to remainder support delivering look sustainable the the developed launches operational launched to prior of also outlook product We with of had integrated D&B product second is serving acquisition. the accelerate the to and We plan excited solutions I'm and of them

Bryan Hipsher

and Anthony, Today, good results you, quarter morning, our will Thank and year. discuss outlook the for everyone. first the I remainder our of XXXX

change impact loss the to offset $X.XX a income per net an purchase driven quarter. the This prior-year Turning GAAP million on compared primarily a quarter of GAAP partially in of prior-year basis fair to preferred of expense make-whole on was purchase income higher quarter. with X, or in compared in $XX higher prior by a adjustment, due partially by Series value costs This Slide $XX Act. million the the operating was lower to to offset prior ongoing largely net and and dividends diluted adjustment of CARES revenues accounting loss recognized revenue, a million. the net in basis, A first Bisnode deferred improvement impact were was by for the due derivative period, the year share million, the regulatory acquisition, constant currency the Net Preferred related of the for lower connection liability in the of on XX% in basis tax interest This of revenue a $XXX quarter the matters. $XX a increase the lower includes deferred to first Stock benefit year quarter net period prior-year to accounting

Turning to Slide first our X, quarter. the discuss I'll adjusted results for now

adjustment. or Bisnode the company of points total from a impact currency lower net the COVID-XX were by percentage deferred currency for revenues offset up increase constant adjusted on in our X.X%, from X.X XX.X% organic points wind Revenues headwinds North an final accounting by on million, basis. in percentage includes the data.com acquisition the of year-over-year quarter purchase quarter America partially down. basis on the First an $XXX This increase and growth XX.X% and segment, constant of revenue driven International XX were

For please X an growth the organic deck. see earnings reference, for revenue presentation in Slide

business headwinds, grew these the approximately X%. underlying Excluding

impact EBITDA was net million, increase First XX million a percentage accounting $XXX impact This adjustment, due of personnel year-over-year of includes the as expenses quarter of International adjusted improvement total revenues for net well in Bisnode increase $XX remainder the overall. of point lower net deferred the revenue or XX%. the company as and impact on lower an growth. increased is The purchase acquisition the to

was EBITDA First margin quarter XX.X%. adjusted

revenue net adjustment basis the of the points. impact deferred Excluding XXX EBITDA improved Bisnode, of impact and the margin

of quarter's or of net adjusted adjusted diluted from million. $X.XX, earnings First first XXXX share $XX adjusted $XX income million net per quarter income increase was an

quarter North In from America, prior approximate Slide North now $XXX results revenues and our the for of now I'll year. X, discuss an decrease Turning first the million, International. America were to X% segments, two

The and Solutions Government In solutions our to public and both Risk, deal $X elimination offset these transaction. North to to to Bisnode the by COVID-XX see with continue million approximately the from growth was in of need landscape. America with grew strength solutions and enterprises rapidly private known Excluding approximately and evolving we global headwinds, in revenues, $X Risk million attributable revenue of Solutions, Finance continue sector supplier lower X%.

the Marketing, partially Sales And sales customers our digital our intent-enabled from quarter, $X cost double-digit million, another first solid excited X%, EBITDA million due of ongoing growth data margin more by we're as year. basis had and costs America more EBITDA versus $X continue Marketing points quarter and Sales Adjusted in increase resulting North down. lower or leverage was from to data.com primarily For modern North wind adjusted $XXX an also solutions. was see America's while to to management in of operating for prior offset solutions was up XX.X%, growth overall XXX efforts. the and million

by to now the first Marketing net constant and growth in Sales strong or basis, primarily Solutions. our X, in international on revenues Bisnode from of acquisition Turning the increased Slide segment, $XXX XXX% impact quarter driven to our a million XXX% and currency

Excluding impact constant a and increase X%. were revenues of $XXX an revenues Risk Finance basis, on of increase the due million, currency approximately XX% XX% or of Bisnode to the an Bisnode, increased acquisition. international primarily

Greater basis, Risk increase and Solutions Excluding increase Client to X% with grew or the and constant API a of of revenue on offering. acquisition. was our of $XX revenue and primarily attributable Worldwide newly an introduced the XXX% and Bisnode border cross million, Marketing in Sales from XXX% China an sales all higher across markets, impact higher including Network Bisnode, revenues net growth

product solution revenues Excluding to and Worldwide the of new our Network increased in net grew revenue UK our market XX% royalties. impact from Bisnode, due sales

XXX Bisnode million excluding due million cost. First primarily first businesses, by XXX% personnel international margin as impact XX.X% acquisition our net quarter $XX Adjusted revenue net an of across XX.X% $XX international to points versus growth the versus which as partially is was well XXXX, increased or of quarter offset EBITDA increase of prior year. EBITDA higher Bisnode, adjusted or basis

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

As of basis. of was credit a and total March $X,XXX and facility and XX, March on net leverage at leverage X.X. we X.X a principal approximately was finally, ratio our to XX, to gross ratio basis X.X The debt ratio year These was all-in XX-XX. fixed And fixed slots bps. are on XX.X net million on floating billion floating XXXX, executed $X senior three an secured bring debt our rate a swaps

I'll to lower of impact between and Adjusted million. XXXX $X,XXX deferred full-year are adjusted Slide XX.X% million expected is to of an X.X%. the compared the to now to X% our to remain to $X,XXX expected the XX% revenues $XXX XX% in adjusted revenues increase to net approximately $X.XX be an are for on million, X, the $X.XX. constant XX%. of walk range $X,XXX be increase EBITDA an to is expected of of expected million, And increase outlook to XXXX. $XXX through revenues Turning EPS range in Adjusted excluding now full-year to currency range of organic basis the to million in Revenues of

as Additional underlying outlook our modeling follows. details are

purchase Overall, range $XXX and rate around million middle with throughout to including quarter. from the previously up the completed shares of we year million, million we We $XX $XXX as shaping discussed, to end excluding transition effective the revenue of asset accelerating of tax expense the due and continue strong the that, for high we expect we Overall, of Operator, to in XXXX average the And second to approximately $X expenses International. end in look the approximately now to the the to year incremental of EBITDA continuing we're the continue we first of end a $XXX we are below line CapEx, QX timing depreciation low momentum quarter certain up high quarter small the adjusted due range call and see expect acquisition range and as the expense fourth in questions. both start accounting; North expense with of the to discussed, XX%; pleased to With finally, to quarter. open resulting weighted of open from building fourth for interest to anticipate and in be and $XXX previously outstanding our million; adjusted be your will forward please America amortization third we the are the amortization of the you the Q&A? of million; to Depreciation, in of guidance. the above million, finally, be for happy approximately as range growth

Operator

Great. go Manav Thank question comes you. [Operator Please first Instructions] ahead. Your here from from Barclays.

Your is open. now line

Manav Patnaik

just Good you. was products and partnerships also mentioned Thank to you and in earnings could have the a or when on of these hear I start adding put It's us morning. to through releases the cycle wondering whether help timing if lot it's could good and new initiatives revenue walk behind the you growth here? kind see of that call. out just sales really

Anthony Jabbour

in in of we bridge been certainly, more at revenue that that of versus talked come as we've really of upsell effects There number products, launched they'll Thanks. the the terms And overall feel look sooner, a on both momentum we're as one things them already. good are we they slowly Manav. cetera. have them about et cross-sell, newer but obviously seeing and the previously Sure, about is pricing of

some seen front the But to to products having We're about business for XXX% web on process. a sales QX we as corridor and e-commerce the site starting We've through, our capabilities, this our We've prospects QX up our the we're about products, imagine, high. visits seen QX year. already small flow as our XX%, for and from feedback on our of and can last up are call rates you see conversion we've from starting As and clients really clients getting narrow exciting over site and up gross -- advisory we're seen of piloting how e-commerce already last XXX%. the last councils talked and seeing we working our all with digital the well things there. sign-ups happening capabilities, premium simplifying with we launch

this to starting working. of and already we're taking So, see signs traction

Manav Patnaik

can appetite? us anything Got at else and I with mean, just leverage we And Okay. it. you do to your doing delever X.X remind then need wait pipeline meaningful? to times, before on

Bryan Hipsher

transaction, start and X.X then maybe we're thinking why with and is if annualized run from of kick we of bit remember, year. full end did and to by we stock we Bisnode you debt. but right in ended times I'll now the with get as But we a what of comes mix question because some move did leverage Bisnode at about capital immediately, then actually a of it Manav, forward. terms calculation debt Yes, the of the The into then little up EBITDA the we the dealing the rate acquisition allocation Anthony the

of into QX. So, meantime, that the the we'll go that naturally it. was But by delever some mathematics different just back the into high anything Xs doing in without

EBITDA, of You that first of get quarter in but the in essence a debt that all calculation.

from Anthony, allocation cap a So, perspective. maybe

Anthony Jabbour

what We of this the in and talked I'd the we've product What we're invest the excited I'm to got that foremost going flywheel some say Yes. terms of about things in But doing here on morning. lately, obviously, organic first development. innovation. we're is call consistently, product about spinning

So, focus, that's from obviously we where leverage but M&A a perspective. where go to we're so going side more the and on

an have it's towards would I the the to fair that we more more probably stretch. say passion acquisition, that we think,

excitement certainty tremendous confidence, there more with. we got and do great some we've So, asset could that with out of

Bryan Xs. but we said, the going & the naturally to Dun delever like into we're the course end of stretch part more, As Bisnode year of by Bradstreet, high of steady just

Manav Patnaik

you. Thank right. All

Anthony Jabbour

Thanks, Manav.

Operator

line comes the go question from Jefferies. ahead. Your Hamzah of from next Please

now is line open. Your

Hamzah Mazari

question My as number then us, but what growth and well. you X% good in a is your is foreign previous I new And you guidance? hi, is number morning. there Could X% think change a maybe about to organic guide for X just exchange. Yes, QX, guess, around then the rebase talked I organic growth. was

the how a could year if clean of organic in the was may some come what QX? there. then, out is growth there And in your just And lot is of product through being numbers realize guidance? hoping you that build later. just new thrown I rest the does So, number the of I growth --

Bryan Hipsher

we impact the which we deferred back If talked when guidance the Hamzah. X% quarter included X.X%, look to first Bisnode, in Sure, at it's perspective from impact laid total way the you also that of adjustment. it, guidance out the revenue the net the about which and Bisnode we then excludes was, a out of it

consistent X.X%. you the quarter of at why The quite quarter quarter. producing. and from of about that's we're back of have you roughly essence, year in that is last, first that of perspective data.com, so where component when And from of this done and kind out roughly talking in in the that is we out just perspective. where impact what in quarter we've the essence headwinds X% -- reiterating really the the that And is last back That you're core COVID engine first

And so the and without headwinds that as for be quarter, quarter. second we in we fourth move perspective third quarter, will first we adjusting clean the like from into quarter, the did

subscription-based upfront, they of we're Anthony model. products has as As selling question, primarily these are said being sold Manav's back in a to new the

it's a indicator and amortizing so into year. building are the some revenue, then And leading mentioned as the Anthony saying, we're of that rest positive of things, sales up the the that's

range. So, in that organic, X.X% X% again to

Hamzah Mazari

you're over and turn competitors new entrants just competitive any or is, very use verticals second helpful. as the SMB the the a other competitive of new there, sort the tackling? is sense space, around it Got I'll there give changes environment Just that I there? out just than set dynamic also are of a very, specifically, Thank it. certain us your know you competitive for products? guess, cases you. that different And mentioned priority, on you in the I That's going seeing key question

Anthony Jabbour

Hamzah. Sure, say we're losing dynamic perspective, strength a What is, versus I'd competitive from gaining strength.

have our work on like our has much innovation the amount improving the the of we're our technology, bringing, So, team data, momentum clients, the the making the ones done I of on of quality we're very ground here feel the side. that great that and service

so if powerful, side it's midsized announcement. and with on the products, you unique very these America the think of some Bank small with up business of medium coming -- So

account So score. see typically, into FICO you could go consumer your you a and

logging your BofA, what see at business on. if Paydex Now is your you score can

brand ecosystem ability really power brand so the the of it that extend the and & innovations because that gives us Bradstreet our bringing. the with So strong of to we're is Dun that

to feel how for with really a I of aggressors change that innovation, aggressive and feel the thinking help So about how very the good enable comes very we when new our like some product much to we're market, it we're clients. have the capabilities we're being I

actually I'm how positioned So bullish we are on very competitively.

Hamzah Mazari

Thank hear. That's great much. you so to

Anthony Jabbour

Thank you, Hamzah.

Bryan Hipsher

Thanks, Hamzah.

Operator

Your line next go question comes Please ahead. from Kevin of Suisse. Credit the from

now line open. Your is

Kevin McVeigh

kind forward, any consumer recovery this going for guess, in think GSE Great. so stimulus, how businesses I come business sense that of should we was then, to into the puts that's from maybe my to you Hey. relative of as much. thoughts factored didn't terms lot then, thinking it of about to takes Anthony, of get Thanks And guidance? about just how just but and that the of the because to back the a reconcile are and XXXX, particularly context starts reopening as positioning? within how benefit you

Anthony Jabbour

Bryan, you with then... and guidance why don't the start

Bryan Hipsher

Sure.

So, that impact the Kevin, some about really had last year. talked of knew year to the lending started some of small COVID about we second we that of we business components this in things as and of those quarter thought one the was

that I months say, final, quarter. lapping would And the of in so first we're three really this

thinking As headwind, we no but the remainder it not of longer about right about we're a a it's necessarily -- year, tailwind. from a now, think the

start mean, start I his grow, certainly, in market form to and Now that SMB thinking businesses going Anthony and we're we're how remarks. with strategy to as to about about that small of prepared reopen and talked lot businesses a the

Anthony Jabbour

call, Yes. And as GSE, QX, we GSE on nice for the a on specifically, as signed updated terms two with add-on well. the renewal more the with

they that our in team are in many GSE ways. work So government doing with the space all we're And interconnected is the and the agencies. the with really with other government great pleased

Kevin McVeigh

margin of Great. the there, obviously as there better to the follow-up. seems relative Is out whether quick or the but really, investment, just And call investment, well, anything just then strong, the one International trajectory International quarter? just core US terms really each and in growth? of outpacing. in revenue margins in it's a It incremental up like Anything

Bryan Hipsher

Yes.

and So, margins. a very just, increased international, somewhere through of already on North with $XXX flow ended in started mentioned, million like basis. year-over-year EBITDA their core half I growth it, from we had ago. revenue Anthony you are at We're And of EBITDA at contribution years the certainly I which the by $XXX increased think, we you a end saw to two look margins America, where year. about margins and Kevin, this two, talked mean, that around we if million, had that X%, strong up that strong from call perspective. talking

side, to expand So I from contribution continue perspective. grow, see think, from to the that that again, we margins business will continues as

Kevin McVeigh

Awesome. Thank you.

Anthony Jabbour

Thank you.

Operator

Please BMO comes ahead. next the go Capital question from of Your from line Markets. Jeff

Your line is now open.

Jeff Silber

color International. I'm and has Thank any give you had a if impact? seeing rollout have slower? where customers can relative curious to you you between Are more vaccine to if may rollout so I'm in quicker much. we just areas any wondering US coming Thanks. vaccine you had the us

Anthony Jabbour

factor the than talked we bigger changes previously. we've we difference we and had say I'd COVID really would when the headwinds the International about faster in vaccine. What growth. the products International, capability mentioned, implemented than subsided Jeff. faster launched And did sooner in momentum I amount what new for the North of over the of of now. last some like America, It's revenue that launched between And they XX obviously, the relationship predicted year and Sure, it's continuing biggest had us with growth there, that of we impacts market the it had the the America. But between is and rollouts North are a and the grow

And end headwind see excited large to America, bigger we And relatively getting towards with obviously, QX. we we're the this impacts the -- So in it's the in Data.com product. and North tied with I Bryan difference think is COVID that drove as lost really said, of over quarter. the a in headwinds

we flywheel with North couple, So the end just with product like America, to new new our SMB launched the the of of that got Rev.Up, shared seeing and exciting a in starting I said, in products some that, faster spin we to last addition space really coupled at launches year. that we

we're the the, So the more, in directly seeing control in I'd we say, we're macro growth feel I'll environment. of than say,

Jeff Silber

might that segue your control pricing. be direct something ability major the to of your to a in Thanks. markets. terms I'm about just wondering under pricing in and And great. raise can is that you Okay, if talk environment both prices

Anthony Jabbour

Yes. Sure.

then implemented auto price. in shouldn't about clients XX% are the where change, was there a having of analysis from place the we, is, if to who when provide. scientific around contracts mentioned, was of last up One a facets the talked we I'm other And not one of at have majority pricing it just -- raising that way. was share or and exchange a in looking for the price. to of fair that of creates are having really after -- we And renewing renewals terms clients with one-year change pricing. the not we value the we the we majority, built-in multiyear any As effected going should I'll a price. along and we escalators And contracts it we having change, sure before, couple saw the our or in What call in the had of we cost you

what talked So having very them strategies not interpreting we they're about growth rushing like this being track coming we're over pricing on the we're into from working. our for this, clients. and being we're of is accepted point be before, headlong, that by about we year said and we've We're thoughtful X that. that And been feel very just to price thoughtful and deliberate. We are

Jeff Silber

Okay, fantastic. Thanks so much.

Anthony Jabbour

Thank you, Jeff.

Operator

the comes question from go of Goldman George next line Please ahead. Your from Sachs.

is line now Your open.

George Tong

would Good growth over and caused the was X.X%. bit In perhaps from year? quarter? the X% the this of XQ quarters over growth organic morning. Tong. In that or each right in you growth then Could words, you should and It's start organic subsequent higher elaborate other a COVID factors headwinds move progressing how quarter, thanks. organic that X.X% are in on envision you back growth the to Hi, growth off into remaining up Data.com at those George organic and step expect XQ the given currency to constant

Bryan Hipsher

Yes.

just X.X, we talked slide presentation, appendix the had the lag on and elimination. investor about in that in there, of was as just we put which change bridge another the So, we George,

similar quarter. they X.X%, it's that place. whether we same to QX ended X.X%, it's when X.X% range being that in so And talked about the we at that But or right the on up had same fourth in

X, backed minus the to of COVID plus along to headwinds, kind with when which step-through So X.X from this X% I the decel I then look quarter, to the And have elaborate, and that too, the and that perspective. We've been that started business again, very it, in of those X.X, Again, third it's plus took engine, talked we succession consistent can since over. perspective. growth when into And back a if with the around a it from up even won't That at X.X. kind off and quarters of had to it, went look now and X.X, core it Anthony X% we've minus we call X. quarters he in the you beyond, hit call noise being and you the X%, of we and said, X.X% about that we known down X%. look at to remove that second quarter, minus producing

that's products that that kind bridging to, of bridging are call gap on, spot versus X.X%, X-ish transitory, single into more it, is end the off tail going bridging accelerating that's growth X% literally at we're kind of Data.com, done. that's on, percent call from that's the it, really, pricing because, of that. the year, the of end COVID that of X at where again, from points X% mid-single by really roughly as low of new so new digits, that of that it's digits the And the

a get clean to start you trajectory. So

year. so direction not what but into just about gives this the that's year heading, confidence we're really And the remainder us of next for

George Tong

That's And then it. a helpful. Got follow-up. just

cost savings margins completing Can here? cost you takeout where and You this see EBITDA from where you for can mentioned at program medium-term opportunity your discuss formally additional point. go

Bryan Hipsher

Yes, George.

So things Anthony COVID flip impact the different, the employees one say, on situation I a countries. side certainly was was if the mentioned at would you of it, the that's been different look of throughout and

ramp the that we're that markets we doing places we Ireland, where that they've seen, that certainly that's we've that ability southern to from we've is term India as see functions from from And that some the back had is been opportunity place a well-being different foremost. with presences in that And the side. it talked an perspective. that One employee we've the sure, there and Certainly, of, area presences safety leveraged Europe. unfortunately, then impact make kind first have and scale second, in from. to of short is would make one, to nice have that do dispersion as say, where of geographic we recruit already in and about and I evolution We

comment efficiencies. the some, then recurring $XXX It the kind function in some completed. I some is, that of target. doing But continue think big operations million. So back work it originally the change at has Anthony's that million from generate, doing perspective. just would shoring to our those post delivery on the continue we'll automate say, of stop, We're been chunky mean right we a that I to ongoing things from years, finance we're step a that of think, to things And office, two functions that $XXX base, doesn't means side had we in the will that's I still whether side, perspective, as we're certainly, on there's

George Tong

Thank you. helpful. Very

Anthony Jabbour

Jeff. Thanks,

Operator

go Instructions] ahead. Tom the Truist Your comes line [Operator next Securities. question of from from Please

open. now is line Your

Tom Blakey

Tom you Can Truist. from Blakey Brian, Anthony Hi, this me? is hear and

Anthony Jabbour

Yes, I thank can, Tom. for joining. you

Tom Blakey

Okay, great.

was silence there there. Sorry, some

-- divisions couple a dovetailing around America here. XQ. the just comment this North is there. of off sales and questions could the just sales On at dynamics payment the base. wondering impressed specifics and growth that could order was the what you wondering any that small on in that with peers specifically, there I that internationally service Understanding, marketing. Was organic if of maybe and get more spill course, marketing sales some robust of the over into growing, other and growth especially and maybe marketing of context are in But into

again go-to-market. go, premature really and that would where could I'd where and self-service question Again, the again, all that second just about you. Thank with about I margins ARPU current helpful. large is curious around be. this repackaging kind initiatives, or of talk be be what think exciting frame digital for business you know, as margins? thing ARPU opportunity there. would can it existing could is Any set be same SMB but bit The where ARPU a that's assuming go, data, well, you're

Anthony Jabbour

Sure, thanks those No, questions. for Tom.

the about sales that of that seeing products marketing what I launching market is the new growth. side it's we're International, that's on we're driving the in previously, really number mentioned as and So --

more capability we backward growing domestically And to it's the product see launch same US, as so the well. looking revenue line as to the

be. starting US bring to like these some right see is, rates? SMB, ARPU I'd at we will we'll looking of pleased from at positive in that We're with at what detail. just conversion really this is And fine On right it, is, us. stage pivot, now a excited more from very development. in that. And new our traffic? industry initiative really the what for versus do launches we're we're the and at the at on like amount the broader react the with But stages earlier say, the perspective. we're we'll Rev.Up we see ARPU on product we'll What looking being expect move we signs Can scientific this can we with major direction. do we're we it we're this really, not we'll and now said, of here what little SMB drive that I Can already in This right our drive we're side, bigger, seeing to focused And what a now.

its and and way in ARPU more more focused we specifics, So clients it right make moving market. our we'll getting big on boulder will but and from more get now the reaction it the to as -- we're detailed

Bryan Hipsher

inside perspective, versus a tackle things a contribution our one experience margin in the really Yes. you data more margin. off leveraging powerful the And on, cloud, said we leveraging I'll of digital very, that higher complementing very it's through sales just from approach. It's of have is now

will an perspective. as accretive what very along, from we're company they overall to be so And things as these doing that come

Anthony Jabbour

I'd add It's do it's we're SMB more it's as to only not this additive now thing to Yes. say the done month best seen we of that always the here for that had since we've had sales. terms Maybe month last well. I'll e-commerce. the one we've March And in changing initiative, been of and With what we what couple used of inside sales years.

the that's and market excited and about progressing these they excited and will really resonate with how how how we new think So day-to-day are to innovations clients. they and their about coming

Tom Blakey

Thanks Helpful. guys.

Anthony Jabbour

Thank Tom. you,

Operator

line of go the America. from comes Please question next Bank ahead. of Gary Your from

open. now is line Your

Gary Bisbee

good guys, Hey, morning.

Bryan Hipsher

morning. Good

Anthony Jabbour

Gary. morning, Good

Gary Bisbee

a there the initiatives I things some of all term, of of about product they so you more guess information like that? index, you competitors medium there new Any the be offerings will of growth driving on like color lot vitality can to the launched you mentioned and as they question, think even couple think use there's longer the Is of business? how obviously term revenue on have your products, percent I of on and should the drive they give focus anything as over the interaction us last First more can of APIs how from concept what you innovation, modern in new years. think services side client a interest. contribute

Anthony Jabbour

measuring bridge at seen at to the we're us right now, and what on revenue the that Gary, having candidly. like where of vitality focus I've not And it achieve Yes, that and as for score. to our growth. things way layers something looked well, We've we're are

lot ways of that doing. we're say I'd is a in what so And

we some a that ways and say, and capabilities solving into risk of versions previous or talked about, broader of client it's upgraded finance when and some So just analytics are those. in They integrated and bigger analytics, holistic problem built are opportunity. more

what allocated to vitality score. go what measuring knowing to in So them, we're it initiatives by aren't on we but it have the we focusing and

Gary Bisbee

Okay, growth those fair higher on the sticking medium-term next enough. at targets I guess Is of years said, for largely year-end earlier is key products a say you you delivering -- the really to it and just couple over basically bridge Bryan, well? trend now said second, pricing. you from point sort safe adjusted to as that X% that's of the to the said to

Bryan Hipsher

Yes.

of the that's those us Gary, we've of kind show of and kind in wagon single the think, on we continue I to had upsell cross-sell low and digits. what got the to

been existing it's the be as we if purchased clear product Anthony we're which, continued same acceleration it introduce new international and even that's it's thing growth side, perspective. that being absorbed the mentioned, As in products, being here. from and accelerating, will being it's as The it's riding localized, on taken do

consistency, we've is, expanding, really technology. terms data improvements one in So of lot data groundwork the data of and made quality, fundamental a

and Anthony now so the position, where that are take perspective. mentioned, to as And in we we're price more starting have from

are of that certainly, that's on product side. the layers we today then and in, growth where a above as new that over So and piece that's

doing like I And from things us way Studio, sales and things low and of will more from addressing that perspective, cycle really up rolls then so Connect, are combination marketing really in what side, -- mid API with as after an from the about different and SMB digits going now which perspective, kind take the like forward. the through we ramp with press we continue the those Direct+ and that single sales more Analytics the D&B things Rev.Up, that as side the we're of and the as excited a we Anthony into to are with

Gary Bisbee

Is small know one But away so it's stronger. revenue that confidence prospects US went of the the so it is it it mean, brings look businesses? are business coming more I to Obviously, at of or growth is follow-up. surveys, investing businesses Is if the Obviously, more that business that making for robust. picture What's lending, the is really banks transactional back? -- just need business economy spending lever in what be $XX projected your this we back? guidance. that I What prospects are some NFIB of year? back? overseas. come the you. see million mixed for know up. loans? US COVID that not look can Thank to I for GDP in maybe just that's back looking what And coming picking a the then lot just a is And because I

Bryan Hipsher

Yes. That's right, Gary.

think by and more is the more business business if when the is suppliers clearly, strategics SMB impacted, like which business that's So pick traction, in side, marketplace and the more that. SMB and is about going Walmart, that's like you government the about to usage customer to think the cetera, loans customers more more to more and being want formation, lending more not it, more impacted the up When volume PPP about drive the talk more that's larger from et -- lending businesses on where portal. to be programs SMB businesses back the side, and to the starting are active, you you more things the

normal start behind I of banks perspective. of more up things so products. kind more, do quote-unquote, open and of our and the kick types Those up of things that to and us say, more would start get usage from are And that as lending those to kind

Gary Bisbee

you. Thank

Anthony Jabbour

Gary. Thanks,

Operator

ahead. Please Your Deutsche Bank. question comes from line next the [ph] Sameer go from of

Your line is now open.

Unidentified Analyst

Hi, my question. you Thank good taking morning. for

a wanted on, wallet, share wallet you get to of the more increasing. I Something color mentioned the of is bit share

sense the some a it that, and could go? high is, to in enterprise where of on Just wanted get the color to Just number please? especially get how customers

Bryan Hipsher

with the we to it, the Global call, customers used majority When the somewhere Fortune contact the XXX. those strategic actually the globally, Sure. XXX did continue heard clearly transaction, another talk providers. we're we the about of our maybe, we to instance, of XX of top perspective. is from brought that last our banks going I with north you and China in then Greater into XXX, which one as start us Global make to and start When direct we progress expand, there. four call that with look of, in was of XX% certainly to XX% of being that's for And on Bisnode

that that. the I about. we know, when additional from on so that's And would color perspective, have share about base Anthony, kind if talk of we expanding any don't talk you

Anthony Jabbour

Yes. them say When more you our stronger strong. strength, And relative we I'd is the our the very client, we're larger and with the just at them. the position with do can look

help grow So and alongside more ways in them obviously we want them. to

it it's you holistic. with And the if of or starting thoughtful look more that accounts. it at Rev.Up experience, a launched, It's in It's calling how the new so Rev.Up account-based enterprise -- ABX terms broader, product enables. we we're and it's

or so, to integrate tools of using in Rev.Up. first tools, for their some integrate larger towards already the Rev.Up like et cetera, it's are our sales environment into or clients phase into marketing automation to Our enterprise more geared clients but us

it's Look, the serve our early pleasantly well. help. amount have capabilities general have and boards can of we've with looking we ways creating against we're clients we're we and of really at all what of the we our and that analytics can really we surprised more And have and information that advisory but have. collaboration the just trusted more such analytics those running can we clients, as more it, ESG capabilities So got data days, doing just and where early where way as stages really relationships. we're the It's we with

you the ways in roster. these products we're stay the said, compliant, lot collaborating there's what help with lab. we're them. business help about with got launching, as that improve client a a more at lot which like internally that looking to we We've so clients. where There's with talking We're their we're can is do. more, We've grow imagine, we're wants collaborating what doing phenomenal spinning this leader collaborating margin, revenue, experts them but And constantly flywheel I them got them is, every we're help, really can And with. a help

and we our ways drive at increase looking can new we're capabilities So those share in accounts. of wallet

Unidentified Analyst

Thanks.

was of it public the is had or data, most I the technology it Is question hosted your to cloud? you're along in working on-prem public an second The idea. is get are with? more Just lines. Who cloud partners

Anthony Jabbour

feel this now in provider predominantly combination What about than architecture stage. and it -- I'd -- cloud to we it's but another, which at be. want XX% public/private, the zone we're But one so virtualization, don't QX, we want more to cloud we within an strike we that where obviously say, reached and more share of

to to are virtualization side the and get So aggressively spot. cloud on we much lower this we worked

plus percent, we where we're a of now putting a ultimately few minus things. can to X% where Now other in position be, but want or us we it's some do

in our cloud to of of of because more data other physical centers data Able work to we're So the one close ones shift public ones. the moving addition workload. the our to centers, our

real benefits you're is, obviously, starting So question. the I why see the we're which cloud, asking from know to

Sameer. So, color looking hopefully, you're that gives the for, you

Unidentified Analyst

much. so you Thank it. Got

Anthony Jabbour

Thank you.

Operator

will now there no questions. Jabbour further Anthony call the And over to closing turn comments. are back for I

Anthony Jabbour

Thank you.

Dun and and have for for you thank like Thank for and & our wonderful strong I relationships call for to I'd on trust. clients today, joining Bradstreet colleagues our your always, the a us As of day. their my you efforts Take rest hope exceptional care.

Operator

participating. And this conference concludes today's Thank you for call.

You may now disconnect.

Dun & Bradstreet (DNB) 5 May 212021 Q1 Earnings call transcript