DNB - Earnings call 1 2023 | Dun & Bradstreet Holdings, Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Dun & Bradstreet First Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, May 4, 2023. I would now like to turn the conference over to Sean Anthony, VP, Corporate FP&A. Please go ahead.

Sean Anthony

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

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

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

due subject to differ uncertainties. earnings may materially described filings. projections SEC risks uncertainties from results in other number actual and a the The that Our of forward-looking to our and risks and statements release are are

non-GAAP remarks measures. also references Today's will to financial include

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

now Anthony. turn to the over With that, I'll call

Anthony Jabbour

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

a an closing On the for up started. XXXX. for with discuss We'll I'll comments. start strategic update first of an the brief results, a activities and get quarter to I'll over results I'll then with overview by our our With let's call our that, in-depth pass few review the progress and After of up towards followed initiatives. to operational finish and open our our that, expectations remainder of call for Q&A, Bryan on call, today's

our currency prospects as resiliency of organic the model quarter growth delivering and are a strength Our world. communicated and the basis the contract making business constant to X.X% with by throughout being America. on results an revenue expiration. months progress X% we and business of expectations the X North on demonstrates customers first We exceeded continued grew our environment. Beginning challenging them solutions this GSA despite mission-critical just this quarter impact help from final that full over continued We to navigate included rely the D&B's

grew in & North GSA, & Excluding the performance Marketing revenues of our the Finance America with X% solid impact Risk and solutions. Sales both

& a ways Finance AI-driven assessing third-party high-teens real-time continued drove approach solutions at driving and exposure. of to companies the and Risk our look more monitoring growth to On chain side, supply risk the as

As use we continue risk, datasets the alternative our to compliance our through add to offering ESG, clients' and and ourselves positioning of expand to into and further cases expand expand as within such data existing land magnitude areas cybersecurity, and variety underwriting of new departments. climate we're a fraud, and

we example, reflecting Rankings and data Dun For Bradstreet's recently Board XX Standards. million latest to million Sustainability countries, make expanded as ESG in the seek organizations and position our further space coverage from decisions companies to the & Accounting XX ESG This sustainable expansion public confidence. across strengthens private XXX with

of done We example creating that new in trends, bringing perspective cloud. ways never profile with behavior an the on into us is financial real-time before. allows datasets data to near-term entity are longer-term unique have transaction data of transactional in that a also blend this financial been payments our An

mission-critical the more These deeply enhancing we and And our the algorithms, are finance use further are intelligence-driven data credit the workflows. of position latest leadership our even ourselves proprietary new decisioning embedding cloud. analytics through artificial in extending of our into decisioning most commercial

right of & our the in expectations the our retention North GSA increases to pricing our with benefiting optimize rates of impact, the America and Risk grew from to line excluding impact Overall, which we as Finance continued contracting Solutions structures. start X.X%, for in solutions strong have the is Finance and price year. look is

solution the solutions. Marketing, Master Sales Within ongoing Digital by We set. financial Marketing over from Management in delivered driven progress Data the growth quarter, in results our seeing the in continued & our organic and X% investments are we America transformation North and

like are transformation in allowing to rates headwinds benefits XXs retention from Hoovers our the of Improvements turning and to realized have efforts from solutions driven financial be the to our tailwinds XX%, results. to nearly them

continue we assets to show allows in & suite. a it As have true us our in shrinking portfolio, legacy resolve our to Sales of Marketing group we building the strength underperforming been

the Engine mid-market new We to website grave; with ], SMB past third support which upon cradle Navigate smart that complexity; our D&B launching integration a Connect In also seamlessly index from foundational tech and Master to medium- ] Intelligence which further monitor first Data we and interface, improvements America. XX% the Management limited launched consolidation workflow benefits portal, continue of which parties North builds brings created quarters. made to which in D&B includes our user vitality SMB companies smaller-sized and solutions, as of self-guided have over to ecosystem, Compliance a our now are enhancements the few version shopping quarter, innovate [ we to cart such most we the the of onboard and [

we efficient forward business partnership and into businesses. supporting and thrive through assist to improve to small it times. commercial Plaid; in Accelerate the tough garner the SMBs and our become credits to to committed that connectivity allowing Whether manner; move business profile these continue helps or be with capital big to small working latest incentives, with with access are partnership small during We to visibility a tax our hard quick their businesses Lendio, Tax efforts and credit

Sales & momentum in the front, Finance of Risk American sales On North examples we saw and & Marketing. our both

side, quarter solutions new had of & up-sells. a On the and strong renewals we expanded Finance Risk

throughout an of renewal. a solutions marketing firm and our organization. another technology sales finance and This their tenured D-U-N-S company, of company example a global and our Master American-based capabilities largest One is keystone utilize Management great and for that signed hierarchy sophisticated multiyear Data multinational and as customers, most risk and their a

auto data compete based attempted balancing Like other the price, capital need differentiated a manufacturers, While in We market the downturn. faced analytics the many global a invest won clearly arising similar from manufacturers out. solutions, the they financial challenges largest electronic simultaneously saw of with our one while into providers significant economic the to outcome vehicle on and solely to world. automotive

reduce their a third-party procurement would spend, mandate their With they just explored reduce relationships. organization the to ways to of us with spend rest as their with vendor

direct companies we we them like and Management operations the by Master However, ultimately capabilities of due of to economic thousands on criticality services expand Data value that Through during concluded their they tens the and to a and [indiscernible] impact our have ultimately would powered and maintain to decided relationship. descoping the negative others cycles. allow D-U-N-S all Number, deliver,

organic Now turning growth another the to quarter solid in of saw our International X.X% quarter. segment. We

under Our and the quarter the We just vitality Risk Ireland and produce XX% modern United markets all as growth for with above & in in increased to saw quarter growing the Kingdom at solutions demand index remained internal expectations. elevated. our XX% or Finance our

steady continued Europe balanced growth in in grew improvement saw as region. X% business the across the also We the quarter with

XXXX Asia from with XXXX market was affected as sales in revenues. the came and lockdown hangover the expected single-digit with in that performance, impact some is XXXX dealing which low

our revenues see through to up, is see the international benefits the UKI to acceleration investments to Europe on expect continue As disciplined the track. of in progresses performance and Overall, and markets. year we and flow sales strength we the in And regions complement those pick our markets. the in the

to is one the Bank, clients front, landing the of sales in Deutsche portfolio for institutions them we Germany, these strong focus their and the allowing financial the This solutions. to and more and chain one is On supply in continues the throughout International terms quarter third-party added of in what regions. compliance demand just better enterprise segment their solution on expanding that a more risk. understand to of example largest saw

Data said for Blocks to business Office, England the individuals, who of impact entities, need Public they're linkage or with have Office the business APIs. the like view us risk and with also entities Cabinet countries they Cabinet potential how engaged understand doing companies. certain with sector could The to compliance way the doing our

saw show data, and legacy with with expansion another in top and data-driven X a complex our win This improvements largest was a solutions also to driving and go-to-market We provider the bank direct organizations region. in new a most from are strategic continues how win China. takeaway the

execution, to on Along continue initiatives results focus our sales and during we Day against the strategic with we earlier this Investor the ongoing progressing laid out year.

the progress side, have made the start On off we significant year. to technology

stability. most significant migrated we in throughput and This instance, the underway of on to and a to has performance, and application's Sales applications in infrastructure one Cloud resulted infrastructure. side, our & largest culminated that for months Google improvements been migration Marketing complex has transition the near-seamless our For

We hardware efforts progress reliance reducing mainframe by XX%. terms also by made our our significant of modernization in on ongoing

path bringing that the D&B. continued changes mainframe and the X We discipline, a change These have use our sustainable to support down to reflect our the reduced just years. have which clear of many applications next necessary few to commitment over ongoing are X significantly have the we at initiatives examples long-term underway, of execution making to and a and

analytics enhancements we architectural to led are strengthen that reduction foundation, significant in advancements using we capabilities. a are to made well latency. to cutting-edge to And enhancement as data and continuing supply through chain our while expand our efforts cloud also processing migration We extend XX% our as also

terms to incremental linkage now advancements extend in we some in the global the of most we're further drive to create in match In which processes, rates. that our And enhancements and have advanced in business-to-business GPT matching matching, cases, efficiencies lead, world. capabilities and, leveraging our

concepts three contact also employment businesses to new counts the related and We throughout business private globe. new for place have in of discovery discovery, proof

to on now. a dataset, and other calls. acceleration leverage customers innovation Dun to But and artificial the look of with at we unrivaled our advancements power stages business-to-business and and are value you prospects. combined the driving approach, future It's more But at work measured all on intelligence early taking drive at proprietary we every advancements, to these our GPT more through the I'll in know Bradstreet. can and hard day and each meantime, & others update

to Overall, a to year, great start and we're we've with I'm made the off to pleased the date. progress very

helped backdrop. difficult macroeconomic have to efforts more transformational a ongoing offset Our

solid excellent on another financial of capitalized delivered solutions, demand for strong maintained drove results. strong have sales quarter We and our traction, profitability the

turn detail the With XXXX. now financial results for the and discuss first remainder for over quarter in our the Bryan to the call to I'd like to that, outlook of more

Bryan Hipsher

and Anthony, morning, discuss for Today, our you, guidance I our Thank the year. good results on XXXX the update will remainder quarter of provide an and everyone. first

$XXX a or to the of prior compared quarter million X% exchange. and million effect Slide On Net million, first $XX to before or loss an $XX loss for of increase million a basis, of prior the X. for Turning per to a share the first compared revenues GAAP quarter. loss foreign diluted of year net $X was were quarter $X.XX the year X%

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

were exchange. segments. Revenues X%, foreign First before in company quarter driven our the an X.X%, on revenues were currency by an $XXX increase both for North the basis increased America or up X% total of primarily constant demand International of effect million, organic and

for revenues of $X million company in the headwind the was the the EBITDA the XX%. in year resulted impact organic Higher or margin flat adjusted to prior million quarter First EBITDA EBITDA quarter. exchange, adjusted to by earnings for a quarter. $XXX was from which was offset And foreign total increase

diluted income net $X.XX, increased adjusted prior adjusted share due to earnings year First was interest primarily $XX the down per million or from expense. quarter of

were & revenues Risk, risk growth the and in flat were by expiration Turning segments: America, of In credibility an impact discuss North solutions. $XXX April third-party for increase organic as million, chain solutions In the the or on of supply $XXX and offset million GSA or now in the revenues results America North our of two now revenues currency our and X.X% basis. contract XXXX International. double-digit Slide X. quarter to our I'll were an Finance constant first X%, management for lower in legacy

from of decrease primarily an was and and Master Marketing million, the driven a by $XXX expiration lower Data year quarter the prior In X%. revenues EBITDA primarily caused of Marketing, the by the impact $XXX Management Sales the & bps margin adjusted was our were North due America contract. growth in GSA million adjusted of was from EBITDA margin XX%, This increase revenues first solutions. to XXX Digital

Turning revenues X% exchange. segment, before revenues to $X our Organic constant $XXX increase a decrease of International Risk foreign of & were X. In a X% on million, of and million for or the foreign of Finance Slide effect quarter approximately first an of an or the $X effect and were before X% exchange. revenues increased of basis million, an XXXX first $XXX the increase currency X.X%. quarter million of increase X%

all driven was There Network United due was European and risk was third-party well Worldwide Kingdom management, to chain growth alliances The along and markets Analytics as data markets. from contribution as with our from cross-border solutions. came growth higher from positive by Analytics. API solutions fees. Finance Finance compliance supply And

exchange. Sales the for quarter million, XXXX $X the X% & first revenues of $XX decrease and X% effect were a or of of Marketing million of foreign decrease a before

of our market, increased business-to-consumer revenues due our by X%, primarily data XXXX, organic German the higher business U.K. driven Excluding divestiture second of impact quarter from the the higher revenues to sales. in of

to of business from million by Adjusted U.S. the foreign higher year. million, due to EBITDA $XX an revenue a International offset X%, or an resulting partially increase XX%, strengthening of first growth from dollar. EBITDA was quarter exchange XXX underlying margin prior was compared primarily increase bps the adjusted $X losses

Slide to I'll through our structure. now Turning capital X. walk

million XX, at loans million is notes made that we of X%, which amount principal XXX debt cash and of XXXX; that plus in plus of million $XXX unsecured of of mature million, and $XX at $X,XXX and principal of $XXX matures our XXXX, borrowings The million LIBOR $XXX million. in up XXXX; of XXXX; in under As XXX cash $X,XXX matures term million revolver. total SOFR in a had equivalents $X,XXX of March

billion $XXX fixed for which February swap X.XXX% X.XXX%. SOFR-based term to XXXX $X to at a expires to through through floating floating fix a has billion X.XXX%. million floating at a at effective $X.X loan of term LIBOR-based March fixed The swap February and swap loan The XXXX has XXXX

at and in each have XXXX that XXXX. of XXXX, We X settle cross-currency $XXX also swaps million July

at We XX%. are hedged currently either fixed or

rate million $XXX of our weighted XXXX. as Overall, our million March XX, on average facility was of as available We had credit interest $XXX XXXX. XX, revolving March X.XX%

net ratio leverage secured net and Our X.Xx. senior was leverage the on X.Xx ratio basis was a credit facility

now Turning XXXX. now through I'll outlook X. our to Slide for walk

million increase to currency euro, $X,XXX This total the of an X.X% the range assumption a continue be of of expect to after in to an in to approximately million includes in revenues due effect expected the year, the effect currency foreign of to X.X%. offset $X,XXX the by We or the dollar, related krona. first foreign between British X partially Swedish a quarters of the headwind tailwind variances pound the fourth of and to U.S.

currency in to basis an year. full constant on range X% be Revenues are expected of the the for organic to X.X%

discussed, quarter. take growth note to with the of inorganic the XXXX. impact at points a points the realized basis conclusion organic account previously important to The headwind ranges headwind is net growth that it XXX full contract first the of the end GSA is into in for year XX basis As the of total April existing

the of into contract million in be to of of conclusion The relative $XXX strengthening U.S. to million. expected versus also the range expected account range pound GSA to be the EPS euro the $X.XX Swedish from $X. British $X adjusted EBITDA takes and to impact the is a dollar of comparison EBITDA the Adjusted $XXX negative million the in krona. the the in to of Adjusted range and is flatness

outlook as are our underlying Additional details modeling follows.

of of plant and expense expect equipment approximately We and amortization interest million, $XXX average million rate weighted from million incremental expense we $XXX $XXX be effective accounting; and software. million; and million about approximately expense and XX%; continue purchase $XXX approximately software property, $XX adjusted depreciation to excluding $XXX approximately for developed to expect resulting approximately depreciation of tax internally of of and purchased to diluted million; shares outstanding CapEx, amortization

in we communicated. it And remaining the remains anticipated continue previously expect original -- we macro with as monitor backdrop, as and consistent Overall, we to quarters guidance. we perform what our expect to the

conclusion well growth the overall are increased improving we the focus capture of and April. to opportunities flows, will revenue balance headwind deleveraging front In cash us. capital of strategies And growth the XXXX expect focusing on end to and shareholder returns. the in challenging conclusion, at also accelerate despite the continue we of sheet With on driving environment positioned we in and a GSA significant allocation profitability to

happy up now will we're open to the Q&A? that, With questions. call the up Operator, for please open line you for

Operator

from Instructions] [Operator Your first comes Weber, Fargo. Wells question Seth

Jonathan Rau

information the a of Seth. Number linking kind for potential us This seeing in D-U-N-S think in just kind give could maybe Jon enhanced terms on matching some you as of realization of well generative Could the the filling and terms of of and is kind opportunities? of longer-term we capabilities any more AI what how as in GPT the and just with database just other about you're

Anthony Jabbour

great No, seeing about comments. right a of I on now. efficiencies number leveraging a market a Jon. I basis. noise opening proof also that obviously and about, And our And like matching really of with that it question, there's concepts, the in it's talked with And linking a and as this we're technology. currently a great my lot lot global of shared with doing we're doing there's that in We're

But have asked data years we that's many for before, that data think, for of really people that is we everyone, and a really part lot that I me I many, trended want had important, have. that the we highlight insights we the manufacture and this we've proprietary to have data advantage

speak, our us, so technology proprietary for And to data. our around to really the we the inside GPT firewalls, leverage bring so have the and ability

do not we can have like that And data ChatGPT companies in For the as have. we of public there's out just proprietary vast because a differentiation lake accessing are that the really that that record space databases, there well.

certainly exciting our it. at a an perspective, technology it's time So team and from is

contact actually & I worked business. in segment And our previous the on GPT of version Sales titling our Marketing within

it at. at really been really, area got of we're patents as around for linking that matching. and We've strong you'd while, a imagine. an we've So It's dozens and dozens

Jonathan Rau

sticking the of there partnership runway KYV topic the That's kind kind climate of a KYC, great given much of is supply overall the with of chain well revenues, of on you kind leveraging data color. using just in more chain the of within the the talk system? the And also durability How is maybe and could as as about and risk offering of ICE unique? itself, those the kind more kind

Anthony Jabbour

Yes.

We really see continue continue growth risk in a very and that very for we our our many very quarters to are row. And in in strong business, to It's going and a anticipate we have And broad that topical subject. we forward. space. deep capabilities will

so of the supply we're that constantly insights drive chain. at looking And help risk additional

Analytics I data, dramatically. most there. lower that for talked you our That's sought-after imagine, But analytics business. about create really new more ESG we risk leverage acquire coverage can our out the of one in looking as threshold clients datasets Risk to drive more the that helps can our we're and constantly data, increasing ways

Operator

next comes question Your from Kyle Peterson, Needham.

Kyle Peterson

in volatility? relatively just unabated? in Or banking guys and to April there like of of kind crisis volume that in increased of kind wanted of guys uncertainty. Just of either you seen pressure, know of macro was when seems had it some on kind or has you regional -- in I everything touch kind any Have of response to continued March December, some kind the anytime

Anthony Jabbour

recovering. in the Yes. the Early Kyle, saw Data actual it it was in blip volume that the we a blip. we Master ear, Management saw, December,

see We recovering. continue to it

And where over Our areas growth & segment. was tailwind grew one a Marketing our business organically it was in the that whole Sales X%. of for that

we really So about that. good feel

banks. on, our an terms really crisis it. And banks certainly the going need a have We're larger side area low proud I'd single-digit -- they them to percentage running of that's community hard say team, of our calling I'd that and in bank regional of on in that how on run and say see to And we're we underway. to, low the revenue I'm or space. with very crisis our a certainly very, on what's that's regional exposure

focused segment is a businesses that commercial That's typically and on banking.

and community members think largest ability with to tax unions focus the their reach larger to that reach regional, consumer the bank space you If having banks advantage there, the on consumers tends credit in can commercial. world

assessing of lot Score, and identify underwriting our currently risk insights would of on so information it's the that perspective, our and banks out consumer more about talked improve their a of And taking Plaid that have with concern we giving that there it accounts stage. this regional really more they new versus risk we've a a unique outstanding, Blended we see created with banking integrating analytic business, a help the now. what as level work seeing these into whether our the the and it and help detailed scores we're credit an or right opportunity the at coupled help where at But have

Kyle Peterson

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

on that So the demand of Sales the been pressure from any business in has on the headwinds Germany? business are the in purely divestiture & Or Marketing macro business? there internationally,

Anthony Jabbour

as the and think, was here Well, international lots ever. divestiture I we're us. been into as that than what the to we good We're done And move opportunities that of Germany new heart bring in a was the that has from company. do about commoditized, of on space in we excited rate want it's our is at front perspective. focus overall, ever in it markets certainly, been key really us, create not capabilities a and headwind at a -- them the was the for excited But faster a of really

Operator

Your Jeffrey, comes next Andrew question Truist. from

Gustavo Gala

on It's Gus stepping Andrew. for

It little retention seeing changes talk just the on applications? MDM move a portfolio other you're bit to impact into Hoovers. that want in cyclical you're under demand. little How in pressure. talk we is on the a across the can experiencing on Just bit discretionary seems And marketing

Anthony Jabbour

had had parts and working the need look we about of When in see something we Hoovers on is that made in the across question first we've that's we and million talked been other has in sand as Like our of focused as we rocks, range very on. of being filling Hoovers, that the $XX And small -- the had broad the that with how underway, what transformation shared again, team was proverbial previously, improvement. $XXX been revenues. big in improvements before on they're million pebbles we So jar. business. to the this And rocks, we've it

way been there can Management capabilities strong. like take it. in able progress capability more And as with with worked is mentioned making interface, that need really we've of our down-market, in we our user very to the a work I'm more really it, doing adding that we Lots improvement. to more and of there. not makes we've mid-market, easier pleased the being Data terms ones been it businesses, our is What Master I've of create where to It's

When Digital we think about Marketing, our strong. very

front this leveraging you well been end -- targeted. of very us. of Because front around marketing, we with business digital and the programmatic really the and data has growing at and going advertising ads very, the what's market to have marketing, make our we're at on in So ads broader for the very great end the we're see our

And to an we'll well I believe do that that's at. so area continue

of. and headwinds them. to the ones scattered big million as attention we'll I have said, $XX around And not of said, and them smaller getting gone really it's tailwinds if them because squeeze, the We and we're But now worth or isn't of of the transformation, to we've we'll talked portfolio affecting million divest parts in like divesting they excited $XX transforming, transform our look will we'll either smaller like do the that through at I be have, some putting the for assets us. like we've about, and us juice addressing

Gustavo Gala

And the a Great. like talk Can the there? of can Appreciate talk enterprise on the rest is how also great is little bit bit doing sales world all cycle a pipeline? actions you little pricing in you then color.

Bryan Hipsher

that is across continue as say, of I use would we Gus, pricing board, lever to something growth. Yes. a the

On were and lot and the you legacy a a Bisnode Neeraj of that there we time spent took the of and of as migrating the International them. remember, kind over applications side, disparate year lot when last effort team acquisition,

As better clearly latest on we of you and engagement, level the solutions, to satisfaction. a greatest customer migrate them get customer

expanding to the from And those too. applying coming starting of up perspective, multiyear see for contracts increase, a are and so our the really benefits same that methodology taking price as renewal, we're

I similar, where you So better Anthony's that lot But have say, lot a the may impact. instantaneous playbook ran we it work we would of doing rates. the a point were where, foundational to underlying migration, earlier, not of is retention see

You see And International it the to in better ability seeing in same we're it's thing take price. now. right

Operator

Bank comes Your America. from next question of Heather Balsky,

Heather Balsky

about what why again. can't think hopefully, -- on that to from you regard, I'd is and now, hear you so are hear I'm question I'm train to -- AI, moat? the what do What your upstart an you me. you a can right your AI scrape just just I'd web like touch take love in the do. competitive on

Anthony Jabbour

scraped. exposing it The it real scraped. externally we're Heather. that not we Sure, that cannot have that be data so proprietary can be differentiator And big is

have ourselves So technology to than and it again more anything, create more new we we're leveraging upside if it. this clients because insights efficiency, downside and for identify driving our owning

example, that scrape do for And low-cost other are scrape public that. providers publicly really a could GPT registries, startup what's They There yes, leveraging scrape the web. and out available. there we that sticky been could have And the biggest so differentiator we've data. really But big for and it why is in compete that is proprietary And differentiator. us, the the space.

Operator

Your next question Jefferies. comes Stephanie from Moore,

Hans Hoffman

for Stephanie. on Hans is This

kind wins just and of kind could year? new cross-sell the growth split to logo play out break the what balance organic number, On the split between you for the expect X.X% how out of pricing, that was of and you

Bryan Hipsher

high for XX%, quarter. with for thanks and the in We've rates consistent about the instance, Hans, XXs, question. right? So retention were the about we talked Yes, strong first the this year, within talked They holding XX%. very

really it starts So there.

continue strong we heard door. do uses solution the set I closing really to did is Anthony terminology we the And back that perspective. you what Hoovers, what from the think with with

we more it for So you'll some the about in, the over the the we're expectation, pricing X%, that price roughly -- think starting continue And flip this more contribute to dropping right, blending the initiatives new renewals up as from that's price kind year, to throughout And is will that into back of XX-month increase. And right? in half. again, XXXX. and of moving that approach when see right, year, come throughout these

the of quarter, lot the a quarter, deals et through. are flowing we fourth year up-sell, in cross-sell, the On cetera, that third last those doing were

And so from each and a that as build we really it's year, every up perspective. waterfall

a again from growth. overall, expansion it's shine the allowing nice and that's So the continued and up-sell. innovations revenue the back from through then to continuing with close really solutions and a been new that new net the to perspective been cross-sell And price, door driver driving

mentioned quarter And that think of drops $X.X perspective. we second then are I million, the of that first lapped GSA. the in April on -- from the kind we've quarter. in from had right, million the almost we $X and $X That moving million, to

progresses. and So to as again, really good year look continue start the to the to year progress

Hans Hoffman

But under guys what long-term percent years. you improvement have you know helpful. that the if [indiscernible] some there remind That's seen good then it. revenues And I for the was us guess, contracts? are Got over of I what just quarter, could

Bryan Hipsher

Yes.

now talked we are multiyear So contracts about over XX%. that

exactly this XX%. it's So -- I think it's about quarter,

Anthony Jabbour

Hans, term. for seeing, sign clients we're longer to And is wanting Yes. what up

significant. So signing right are now been up contracts that we've even our X-year

strong are double think I digits. they up

more us for strategic really, with time. of us longer our So clients partner, do a who with that period really stay great it's as see over a us want a to indicator us,

over that X-year and help great thing new time we longer capabilities conversation, and having them again, the revisiting versus period have renewal more And the is to up-sell now, cross-sell all so pricing constantly while escalators. the

Operator

Your Bank. from question Andrew next Faiza question JPMorgan. from actually I Alwy, next is comes apologize Steinerman, your Deutsche

Faiza Alwy

a of you we from that to more Germany. sort maybe expect dimensionalize know of what But decisions? One about is couple what bit So divestiture alluded us up phrase. to. your should there. in percentage helpful the of a I of wanted timing Talk be are things. here. more this? How is What's follow -- you made to one know on the maybe the divestitures I notice on business would you approaching is And I if these color right don't divestiture

Bryan Hipsher

sure. Faiza,

all pebbles that look at so boulders $XX million, things sand, rocks, intents and and moved for we're through a these kind And assets purposes. now lot as and of all we boulders, are million of As headwinds, And kind Anthony said, right? of probably these of the around $XX there's rocks.

the looking so for to is headwind best Hoovers through a transform right? some it some And et what we us a outcome and okay, is, first similar to through to Take modernization, looked what cetera. foremost, it, we're at, at investment, tailwind from

said want it's then something the a divestiture and to is off or not certainly we in and into at we always strategic impact But commensurate leveraged where a that's squeeze, look from we would impact will divestiture if very to and do cost come a shutting or we and application leveraged that revenue the And that revenue we run We're mindful worth side. not is what the the juice sundowning with terms data is play. make an be going sure of infrastructure. the the EBITDA do cloud, quite

So we being offload, to it these of transform? from just use $XX appropriately? of $XX is it's from $XX small attention that are terms But in otherwise take kind products very that that worth set capital cash a and investment in Or could it perspective million, allocate something easily deleverage maybe to the then $XX of to or again, million. and the the it kind range is the perspective evaluating of that million, we're maybe contained are that largest million,

Faiza Alwy

helpful. opportunity. wanted sense very things maybe types you're business small a get your those I pretty big a to to That's curious how a what exposure then as customers seeing And follow-up, fit I But that and of large trending know of Great. you have bucket. that from your customers with current are customers, penetration

Anthony Jabbour

perform are the a revenues that's segment clients group many that area, and we're into. around our how macro for And a is arguably -- concerned heading mostly business small environment and in growing that that segment, of enterprise us, companies that versus in majority hear you the in small. certainly they'll we're this Well, about

And all a grow the helping the companies Dun have of with that I'd accelerate macro is say lot with we of is our a significantly what And environment. on broadly underway. I'd with from again, and out And say there. tailwind lots is forces out that our in this But our there's year-over-year. & that And there. we And seen base and SMB there's it for are our of growth we the transformation what transformation. Bradstreet basis, transformation continue that's have headwind force a company struggle to you've

of some headwinds we Similarly, e-commerce business, remarks right? what's really SMB small going We've in seen certainly. There of we've lot businesses talked had towards help side, my on. prepared with are about to launched that which this for is a stronger. with significant in the the But there capabilities new them, that's tailored space. small in our us partnerships We've segment, become out growth

credit D-U-N-S X.X over to XX% We CAGR. subscribers X-year last over a year increase have our XX% products, our million and Manager,

a of part that and good of have as the that there's it environment. segment to how we transformation offset growing So we're macro help and on going work focused on our lot

close again, effort. got like an So of that can putting of area, we're got said, space. But obviously, attention it's macro where lot this lot how to, I that's And a in we've in that in we've a we conviction help environment.

Operator

comes question from next JPMorgan. Your Steinerman, Andrew

Andrew Steinerman

little hoping about I a Anthony, earlier was more bit it. encouraging on your Hoovers. could comments just I you talk heard

to does second Specifically, coverage quickly And compared question Hoovers' is is how top this contact U.S. professional competitor? one. That's how database Hoovers revenues its year? my growing

Anthony Jabbour

perspective, I'll say you. Bryan. Hoovers Sure, the -- part, What first take Andrew. the Thank I'd is on

is But a discuss about in couple the just size a SMB hit is created of of targeted One talking that we're example, our areas. for of great revenue smaller in You that could We've improvement Hoovers. Essentials, Hoovers to a to growth. lots we've segment terms created be approach And different versions capability. there. of another example

quality on our our focused credit really also approach very about But that, we tying very on. focusing talked in of the so -- that an and increases I and risk, our coverage a such that our on also improved significantly. capabilities area and go-to-market, data And in said, we're has like calls quality. it's We've But dramatic our sellers focused dedicated having as right? other in have,

you're sales will So here. again, company into That's can with want our struggle. Do businesses of more that with to you're an into, not? there spend that that like we this even in especially resources in we you heading a if like -- spend a of that said, being one, lot always will environment be the focused or selling cognizant or they help, obviously, where heading area time clients into their

side, I'd And the always on it we What and moving the coverage our Andrew, I'd how a at industry everyone and target, say decision-makers about particular talks always outstanding. with in is compare to is that's companies, say that. coverage others

you're and there on one identifying working what meets then business no out contacts that business this a a in from have if So compares to us so to of we down there say business. selling there's need coverage, the

cetera. key I business e-mails, it's confidence of quality data, direct coverage, dials, And one lot in compare. -- the in our of a like et hard a to got contacts, said, We've our

the lots of our that we that data clearly result have we're But different direct points. I data. is this for the significant in improvement You a seeing get is feel strength what improvements and

Bryan Hipsher

a, was well you terms right of that quite actually growth this for in a Andrew, solution know, And declining is years. as now, set

nice for so we now ARR to, accelerate would as this the say, build it's story to and faster point us, up year. see of that, the momentum continue really some sales to that than the it but for turning at I low And is singles part building throughout expect growth the with we

progress. And again, great really so

And as some another for component are we just if get or get to just over we take few right, rest the organization really them the et that continue allows around assets in off we and really to here. third-party of risk And was opportunity it is the through, expand components or really to came ones shine whether us nice the Data had the for and grow these And Master them next that's strategically then some neutral, to certainly even can underperforming, into of to cetera. years turn Hoovers there. Management,

lot team. really, and again, done really positive So of great momentum by work the a

Operator

from Sabadra, next Capital RBC Ashish Your comes Markets. question

Ashish Sabadra

business government business. excluding I just F&R X% in wanted grew to focus on fourth the That quarter, North America the solution.

business? that more the X.X% solution? possible the first is growth which And So comparable some X%? for Or weighing the headwinds the to quarter my government provide are if there F&R government profile the it's in on solution, F&R to question was on there are excluding

Bryan Hipsher

Yes.

Ashish, sure.

is and on two magnitude $X.X million at components, quarter look you GSA the basis from going lapping said, for we're is us the the a of weigh business. perspective. is, some always if component of And because to the other first remember, in credibility about, itself If is That the I the million, heavier the the first headwinds $X a one, you percentage quarter. legacy then in from lowest

quarter another in couple that dollars the was of was a kind that so of also. And million

seeing, then Finance that Solutions offsetting the in growth growth those the teens low two on and really kind of so And the as components risk we business singles were were side. said, Anthony

you're flat closer look GSA So the the were that you being about consent when last percent little think of but overall, right, also was when were to mainly you we the from impacted which in that by more talking the that, April. pieces at were X-ish that side driving credibility, order range, a than bit which the two

Ashish Sabadra

there progress on European applications if the a new in comment legacy the on applications just color. question And business or the you to That's also migrating of D&B. And European can to the market? was Bisnode, Was Germany. on the wondering in maybe reference that win was the introduced you've the financial the legacy a very obviously, then large all that helpful quick I institution just

Anthony Jabbour

index, Ashish. you with vitality to know, Really, eventually almost with And the markets thanks, they clients. team there keep European thousands underway of index, to just migrated the Yes, the you it right? solutions. creeping is and They because don't doing the work migration really X of our thousands as work of XXX% great get see XX%. years And and It's it's in last Sure. up there. lots of new vitality proud

range really that score is exciting. a having so And of

is It there it us enterprise FIs large to clients, market. one, a modularized. just we're focusing growing with team number penetration newest renewals. modern to with the more our helps on the into larger I And our the us like solution offerings said, for which bringing sell us helps And into, is that winners. And our us, it's gives with --

those component digest the to So make easy Analytics, more or it within integrate and the implement suites, it for Analytics it's easy example, solution. clients and our buy for to to a to Risk and adding sell Finance components

well. couldn't our -- So be XX% more really and index in proud of over as vitality America was North

in And of we're you but from yourself obviously, a that in with shoots lots our work, having So put of solution, ways, revenue, calls, of grow. I work where on you a unsung to et bump immediate relationships position there's longer say great green new cetera. lot a in clients, said not do effort an great some I'll lot where from to a seeing, like previous migrating growth

Operator

comes Goldman Tong, Sachs. Your from George question next

Keen Fai Tong

your a relatively growth range. guide of to which is maintained organic You X.X%, X% wide XXXX revenue

given current now you towards, momentum tracking of X You quarter think under your belt. the business? performance in Where have currently in range the do you're

Bryan Hipsher

a I our call back had February. gave of we we being perspective range. think, anticipated, expectations when We I the in the terms backdrop earnings from really really think talked about consistent in pretty George, since macro that challenging

again as thought the we X% account of that taken kind what X.X%, be. largely you so spread, had that the would was And already that something into conditions macro think to about X.X%

look continuing execute to to our that and plans. So perspective against very from consistent forward

Keen Fai Tong

how overall the environment changed as over on Related it. that the cycles that the selling to elaborate state prior of budgets and the seeing, including Okay, can environment as you got well the client you're course of selling quarter? question, sales

Anthony Jabbour

Sure, say common, cycle, We the then George. quarter, of it same. little actually saw but overall, QX, we Overall, a the about about shrinking. a lengthening later in it's pretty interesting. In stable. lengthening It's talked pretty I'd had shrinking and bit, sales

So it's nuances. small one the we really any of wouldn't highlight

force again, feel that different. we transformation the have is And I very

imperfect force there down. that there's for had out So of and a running them We been perfectly, right? running us, an we hadn't it macro been perfectly, that And it slows have hits all company the terms making offset out force focused a on helps there we And in of us the headwinds the perfect. that cycles. see our of sales are that budgets lot from and it to transformation, we're that companies

can But having help helps from a more our solutions, that growth our perspective, contracts having structure new in capabilities that clients.

As budget." I that shared any as And cut said, had more or clients my to in they taking prepared hurt them didn't us, with than need our descoping and remarks, have the if away I "Hey, we services work came would of through do they it it.

focused it'd team And I otherwise, in every do challenged. value our can we're than well it's be environment, more positive adding mission-critical where And clients so our is just we've that We're that's great got them, our ever And really macro partnering more growth, on I've clients just we asked think, servicing some stay clients. to resulting really better? serviced better be capability. our day what not with capabilities where we've help the to

Operator

comes next Kevin Your McVeigh, Suisse. from question Credit

Kevin McVeigh

to that, stimulus Great. activity terms are from you'd at for surface that's you that demand of client out? incremental starting in taking shot in the terms another Maybe Bryan, call infrastructure seeing anything of maybe

Bryan Hipsher

Yes.

demand seeing right, longer-term the are flying a time it's just So large into be, we're really and the what data it things right, well, Management, strong -- think third-party that this taking supply & a for risk went European about, Risk that what Finance mean, continued the the highway miles thought XXX actually Data exposure "Okay, what's really when think chain we side, I Master product, is, things your down right? understanding Kevin, entity that on to I start risk on focus strategy?" So sometimes would seeing is that

especially of you just empty the if advancements that the right, advancements those A of we of But all AI, these in proper that into like thing these cetera, a lot it, kind is as data, in data in look, proper proprietary they're shelves. a great. move are Because et technology, forward, critical right? lot don't have feed

get And to Finance strong Sales businesses definitely and on terms in have & so Risk we're savvy wanting us, Marketing the side. of analytics smart for strong wanting and seeing both & tools, have to MDM

The what time they more and Sales an -- to that, returns. period, have necessarily have I they & higher to the it that during have of advantageous strategy focused, Kevin, is Marketing kind we're seeing pray, be side, where call right, is not they spray guess,

digital upfront we're datasets means So feed into from that things our these audiences, online advertising and quite other our an strong that from perspective, perspective. like

the in growth talked that single-digit about that solutions. see you in And we high those

our balancing, leading one Anthony yes, would that kind So to to progress that's those of and these continue macro our able overall, And with it's transformation. I as what's accelerate to of be ongoing challenges we're things think say, 'XX. some us growth of in

Kevin McVeigh

coming time, like together It at it's right for seems the sure.

Operator

turn now There call over are closing no for the Anthony further questions at time. this Jabbour I would to like remarks. to

Anthony Jabbour

Thank you.

day. Bradstreet, and clients the like As helping Bradstreet guidance. and have for stronger exceptional And for efforts wonderful & always, & thank for your a your I'd colleagues Dun Dun our and rest you in interest every partnership Thank their to us great my stronger of I'd to and like thank be day.

Operator

please thank conference gentlemen, ask you and today. call your for lines. participating, Thank this and you your you. concludes for Ladies We that disconnect

Dun & Bradstreet (DNB) 4 May 232023 Q1 Earnings call transcript