DNB - Earnings call 4 2023 | Dun & Bradstreet Holdings, Inc.

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Operator

Ladies and gentlemen, good morning, and welcome to the Dun & Bradstreet Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Sean Anthony, VP, Corporate FP&A and Investor Relations. Please go ahead, sir.

Sean Anthony

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

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

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

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

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

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

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

Anthony Jabbour

guidance with Bryan Thank look fourth quarter open of our everyone, and finish XXXX a you, fourth discuss Q&A in-depth our to closing in full a followed our up On year of for earnings XXXX with our brief pass over and the brief few us full comments. most today's plans a some overview into to an for view XXXX. year and I'll for for review and for call. call joining XXXX. After up We'll accomplishments call and a Sean. the that, results by expectations of our then thank I'll and back for start you at quarter Good call, our results morning, significant

going quarter $XXX not earnings off adjusted earnings. and both We get that of started. support the X.X%, EBITDA public. able balance beat helped strongest EPS. new of And since had million continued our let's quarter our our to strongest guidance our net index million and that, investment finished XXXX revenue organic enhancements of revenues year, or We but our vitality growth the of With $X.XX with product $XXX We in only in we're XX% of in still and quarter. adjusted innovations

revenue, guidance at were earnings original the EBITDA back high And our and our in the came middle February, to organic end. growth Compared all ranges. of in

of For $X we $XXX or the and revenues full earnings year, EBITDA total net $X,XXX X.X%, of growth organic of EPS. million, adjusted adjusted $XXX delivered of million million of

innovative continue the index up deliver new at full and clients Our throughout the XX.X% world. to finished vitality solutions XX%, as from XXXX year to we for in

whether is proposition in vitality and operate growing And International these of biggest it or with need more XX% resonating and the changing X% quarter, of businesses with are our a the was to growing us vitality Businesses challenges. workflow analytics in efficiently America X.X% XX% effectively North throughout with a in rapidly in index index solve world some their to environments. coming data, to value

seeing most into that had our now we for directly X we areas the themes prioritized are investment. common The right play

sound Management gen Data always foundational is AI. Master a with and been foremost, significantly strategy, First of has importance advent a of increasing and the having data component its

the top are coming XXXX push AI alternative in advantage and our integrating Number, Master full in the we innovation. in these expanded Data investing continues world, business platforms take the most throughout of on a companies largest capitalize growth cloud gen at collaborating to exciting making new, core into world this we and our and Duns position delivery and of by in be our strategy. because of data most capabilities pervasiveness prolific And privileged the to the the Cloud commercial sets, the data are resolution trends. wave with robust and of that believe a the of D-U-N-S entity cloud to We unparalleled Management data

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strides our more in migration plan and in cloud XXXX. continue to even XXXX complete also large We make in to

the organic I approaching across of growth $XXX Overall, the X%, nearly in both operating I'm pleased a month, layer flow EBITDA of the debt of balance the adjusted we our very and very organic free proud enhanced free am refinancing and year. conversion. strengthened sheet acceleration, improving team's With deleveraging medium-term with progress quarter and full expanded secured our million, flow execution are last our making towards through growth profitability, revenue cash of cash the targets company

needs. the new things, with year the by and throughout data exciting our and and In the our growing also And X quarter clients some able created wins quarter. with doing really satisfy delivered urgency, prospects' and and precision renewals innovative analytics engaged these finish with solutions off in we're to we year, the to

with had was America, where structured our to market and supporting the a start multinational their capital targets Beginning quarter predict year, with with private win companies. viable one revenue helping the the retention XX% corporate business their North I in investment. and largest and to we XX% It equity space. the data retention world's cloud merging asset acquisition the first alternative come financial we for Through for signals, want for off to management, in and data, mastering services linkage efforts also and are internal of

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finance is the leader relationship safe, buildings, a case, solutions Controls. sustainable traditional use smart world the Johnson our in pleased announce healthy Johnson we On are with Controls expansion of spaces. more and to creating

of ultimately eliminate able that We solutions. our a and of value expanded global was integrated relationship finance vendors, scale to through the the addition our multiple demonstrating risk solution

aerospace Master look closely forward with set expanded supply work Management management. of was win a example retain-and-expand with great third-party complexities we to chain includes global was agreement help with the another to client global controls. This increasing to of rolling chain solutions we and global and And execute continuing a them company. leading risk them multiyear an Another multiyear supply same trade navigate around agreement, a tenure risk the that off management, and of Data

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multinational our expanded a Siemens tools integration. conglomerate, sales also in direct We who relationship API with technology our acceleration a through plus Germany, and added Hoovers

excellent past landing of biggest [indiscernible] and expanding share seen as companies and globally. few we with Siemens the over growth strategy continue We best our have the years

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power continue while AI to what and reliable, strengthen I in trusted investments the initiatives. capabilities have want rich, in to gen most said timely data, leverage cloud starts you to to and our be before, position believe data. premier if our AI, commercial of cloud data through And with the we true want it world, we recent the we As

and Coming have sales been building. momentum and about off of performance, the a excited strong are XXXX continuing we operational year we financial,

key turning strategic a innovating in driving vast the continue of focusing into amounts front strategy will clients, relationships delighting our of us partners, investment We disciplined and results. on with opportunities urgency, expanding enhanced with

We the plan supply AI markets and our to Data and Master risk in management enhancements appropriate our value we amount opportunities capital on and strength from extract to new gen and of the capitalize made and existing on chain have of build investments such as third-party solutions. Management, areas

profitability of level another enhanced continued and development, flow year near-term financial accelerated performance proper to [indiscernible] cash expect increased deleveraging back-office and investment gen the solution organic AI of growth, earnings in new through and solutions, improving enhancements upgrades with free We balancing initiatives. while

us in at the on achieving guidance we opportunities set In we And with the medium-term of XXXX. summary, are Day. we track about are Investor forth ahead excited our

that, now outlook financial With discuss the Bryan our over to to results turn I'd to XXXX like for call XXXX. and for

Bryan Hipsher

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

to GAAP to revenues of increase Turning X. Slide foreign On quarter X% year basis, an the of were $XXX increase an quarter million, the of before effect prior X% exchange. and compared a fourth

the income the XX, provision of $XX million $XX the quarter. year $X higher X than months share or December primarily tax for income was a current The less Net prior earnings quarter. to net due fourth million $X.XX million XXXX, diluted was to the for year decrease quarter the compared in to income per year of net for compared prior quarter a a in ended

an prior or before the $X.XX was For full of net foreign to million an share XXXX, million of the the year. a prior full of On exchange. $X per loss X% increase compared X% a of of year loss $XX million, $X,XXX basis, and a effect were compared loss diluted revenues net for year year increase to

revenues were impact up our our exchange. on along company the The the X% constant exchange. effect attributable of total X. Turning organic fourth $XXX increase adjusted of an before in were Revenues to adjusted Fourth for the quarter with X% or in growth million, an X.X%. balanced positive now Slide currency of segments increase results an foreign I'll adjusted to discuss of quarter. increase the foreign basis revenues for was

care Fourth to expenses higher quarter associated more million, we adjusted than employees was in to $XXX use increase for processing offset revenue benefit health of a company by normalized due costs an growth, and as $XX EBITDA partially data million begin more X% years. data prior primarily returned as rate the organic and the to run total their or benefits

of care negative basis basis costs Fourth million I increased quarter point margin net $X.XX earnings quarter, adjusted interest quarter, the of compared XX%, a EBITDA expenses. impact benefits amortization, current was tax or in the offset of fourth a million XXXX. expense XXX adjusted by and prior in Fourth to partially or and $X.XX adjusted and the depreciation was per which decrease quarter higher included points the higher XX quarter nonoperating This to was higher primarily $XXX EBITDA to just attributable share from year health adjusted year higher compared $XXX income mentioned. higher

total or foreign second before revenues negative organic foreign of in Germany business in currency impact underlying exchange of were the the Revenues [indiscernible] X% in of impact an company constant XXXX. Full of attributable were our increase was and X.X%. on [indiscernible] effect business exchange by the the basis divestiture million, consumer of the up quarter growth for a of X% year compared adjusted the the to The to business, partially $X,XXX XXXX.

$XXX company to adjusted offset due Full negative and data as lower primarily increase growth data by to plan exchange. year and management total revenue health associated for partially foreign Higher fees of impact and an incentive costs, EBITDA EBITDA expenses related costs higher well care was was as of and million, X%. the facilities, the adjusted professional processing

foreign Excluding exchange, EBITDA increased impact X%. the of

million Full million to adjusted $X.XX diluted was EBITDA or of of prior income per basis or compared XX a year $X million points. basis share. care adjusted negative per margin of was of XX Full share which $XX the net a points included XXXX income compensation earnings health to incentive year and decrease XX%, adjusted $XXX of adjusted impact XXXX increased compared $XXX net year, or

currency $XXX discuss Turning now an now and results an increase of America for and were the to on million, America, segments, North In North X% X. I our for revenues constant will Slide fourth also prior X% X approximately year International. organic the from quarter basis. quarter

risk or $XX third-party solutions. a finance and Finance $XXX million of million, revenues in and management due were X% supply Risk, increase In an to net increase chain our across revenue and

Sales $XXX and Management was by primarily Marketing, X%. growth million, million Sales an revenues or For Marketing were solutions. Data Master of increase and driven $XX our

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or This solutions. was driven to increased Marketing X% and Management year $XXX Sales $XX Master growth from primarily our by million Data revenues America North full million.

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X. basis of increase revenues before organic increased million, segment, quarter increased on exchange. X.X%. an foreign a International constant to of X% revenues Turning In currency the to Slide fourth effect X% our $XXX And

an growth Europe solutions growth X% an solutions. compliance attributable higher analytics, effect U.K. increase related our increased the and revenues Risk data of million, revenues our risk in and and was markets, Network higher fees as driven increase third-party including exchange. This were well Worldwide API revenues all from alliances revenues and to by market of finance attributable foreign to analytics before our our to across of XX% latest or as finance Finance $XXX cross-border in increased from growth from

an were and This X% API delivered data an of latest revenues million, increase via was Marketing exchange. $XX higher X% from of to United or European driven solutions. markets the increase and primarily of Kingdom foreign sales higher by effect due before revenues our Sales

increase was year and Adjusted costs. quarter. $X data Fourth million, an quarter was the compared International partially XX%, to adjusted million the an prior EBITDA personnel was of basis margin $XX to EBITDA points XX%. The higher revenue increase offset or growth primarily by business, due of XXX from increase processing driven underlying

X% an year basis In currency the to full now constant or $XXX a X% XXXX increased foreign Slide X.X%. revenues segment, effect exchange. before Turning to organic revenues of And International X. of on our increase increased million

both contributed and revenues and exchange. increased and Network X%, Europe strong Finance effect foreign Risk before and in to alliances United of fees. Kingdom solutions analytics revenues International demand the with Worldwide related cross-border API full of higher $XXX million and from year markets finance the increased for after to All growth data

International year increase X% increased foreign million Sales or full Marketing of an revenues before the exchange. X% effect $XXX of and of

Excluding our divestiture of of Germany the exchange XXXX was X%. to well latest as our delivered of the higher million driven impact Growth primarily Hoovers by foreign higher of million, $X increased U.K. organic and localized business-to-consumer $X.X as new revenues market solutions. via the solutions business sales driven data negative such revenues the API of from in in Europe and by as and impact

XX offset EBITDA partially of margin processing year increase to or due XXXX data points. costs. and The million, underlying from an XX%, $XX basis personnel revenue Adjusted increase was business, related primarily was was Full X%. of improvement EBITDA by adjusted to million higher in costs $XXX International adjusted an the EBITDA growth

$XX a of an $XX health performance-based segment Adjusted additional and of loss the incentive million attributable primarily for to higher costs. corporate EBITDA plan loss million, care was

XX through as and we of we year-end, Turning the $X,XXX end executed. equivalents At to now had Slide taking then million capital walk recently effect of the XXXX, into and $XXX we'll XXXX; million principal of borrowings and of made XXXX; in which forma at loans term XXX that million debt million X. of XX, up and SOFR amount at in matures $XXX basis plus discuss mature transactions I'll our X debt of unsecured total CSA million. structure in The of plus X%, December $X,XXX revolver. $XX notes principal mature our a pro at cash of XXXX; on cash plus in SOFR million of that $X,XXX $XXX under million was

Turning January XX, maturities [indiscernible] loan our extended structure. term entire to On on leverage-neutral credit refinanced Slide we layer which a our facilities of in the transaction, XXXX, and capital X. successfully repriced secure

pro XXXX; million in basis, at $X,XXX made up million million is tranche a $XXX in of a which repriced SOFR at term notes forma On principal X%, the single mature plus $X,XXX of loan unsecured of borrowings X subject SOFR maturity to February X under matures was $XX XXXX. plus revolver repriced XX of extended that and leverage-based in XX to also at our The grid. pricing XXXX; and our million revolver

to We effective $XXX March X.XX%, total at XXXX fixed at effective and floating billion $X have rate X.XXX% to billion swaps, to million February a X.XXX%. million at $X,XXX XXXX to of $X.X February interest XXXX

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

either debt or hedged. our is Currently, of XX% fixed

rate weighted our had average on interest XX, December X.X%. available As revolving $XXX was million we facility, and XXXX, credit of $XXX our million

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

take reduce proactively and early throughout with and capital debt. cost our market to of maturities our pleased our efforts of to the opportunities are in We address advantage XXXX favorable XXXX structure's

British be revenues foreign an or includes X. outlook the million to Total tailwind partially Slide the assumption foreign of X.X% currency the $X,XXX the offset This $X,XXX dollar, and pound modest the I'll our are the of of range the through walk effect quarters to after of euro, headwind expected currency a by XXXX. X the for fourth now effect a in Turning U.S. approximately to expected increase to X.X%. an of million krona. variances Swedish related in modest in of quarter to year, due to first between

be organic year. expected the EBITDA EPS million X.X% to to $XXX to the Revenues on is basis $X full range of to an in are to for is in in constant range currency million. be Adjusted $XXX Adjusted X.X% range be of the $X.XX. expected of the expected to

Additional our details are underlying outlook follows. as modeling

million and XX% to the approximately depreciation excluding to expense to be interest amortization expense expense XX%. tax be adjusted range in to resulting million; approximately expect million, $XXX rate We effective from $XXX and depreciation accounting; of purchase amortization $XXX of incremental

CapEx, account Our Europe X%, into throughout minimum effective tax in prior shares software weighted million our and outstanding we million. rate and approximately $XX was takes of million rate diluted of significantly the and expect $XXX introduction approximately of developed property, software. million to XXX for II where $XXX and rate Ireland, equipment the of Pillar internally And average most plant purchased tax approximately

give provide I expect we did While to guidance, want quarterly on we progress. to the some year don't color how

to quarter of high to around be the range. quarter high be below be end first midpoint to to our closer our be range, second to fourth and end the low third around the expect of the the end, We

delivery year. third our to more to throughout the The in due ratable on the revenues lower shifting from some growth of recognition is quarter

We then the growth the quarters. remaining the relative to expect margins move quarter be and flat revenue to first for in

the and flow updating metric around calls. and year-end. net all And organic on with stronger is focused improve to are anticipating earnings, of upcoming objectives. forward expect the on XXXX X.Xx to net of over we the term. free our XXXX against conversion as EBITDA, make towards XX% be flow financial look accelerated AR operational The another team leverage adjusted in XX% percentage a of we delivering by Overall, net cash cash versus our in We financial the also impact we to results in a you securitization the of growth revenues, of progress had free year operating progress target excluding medium and income our

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

Operator

Our Company. Instructions] question [Operator Peterson is Needham of with from the & first line Kyle

Kyle Peterson

organic just logos, bit touch building could cross-sell a new on between maybe But growth would and be to wanted X% X% break down to that pricing, Good that see for the really you here. to I Great. if blocks kind a of bit helpful. upsell, whether little it's range. little

Anthony Jabbour

Kyle, thanks question. Sure. for the

we As cross-selling of from about from said, to see existing we X% coming incrementally logos, new of and solution, pricing clients. our upselling existing of growth solutions

has the And increased, as has risk been side side what side, we more see MDM I'd say chain incrementally the and on management supply the Master Data third-party Management current. and

in my side, focus I a on to more As seeing are and more AI. think it's remarks, And MDM said the of there's on that, prepared the precursor that. clients I

And relationships. mapped side, a, XX privileged say, to have we've the We've position. in I we been -- of on right a a out. similarly market billion I'd doing a in And that out as win and work are lot chain said, mapping supply we have that great

X just So mapped for automotive if chain anyone I we're of what currently And doing We've is we companies. close work XX% example, that there's in this supply space. big that's have. don't know with to X the entire their of

we've So a hear you lot in been which pretty impressive investing some in areas about, capabilities. these

the on. market of movement. the AI been in one always coming now Master case us that's generative because Data we've And of And focused is to Management, where

Bryan Hipsher

north -- contribution that range traditionally has raising X.X% of And Anthony, if that to range, said, in revenue. to something that in up kind year X% add too, been this I [indiscernible] as could of price a you on as

released would the us how side, is as we've potential win after on solutions in think, the the pipeline new then know [indiscernible] that in an are certainly, I solutions And this for you pool around the the I new our immediately capital a mentioned markets early those the we quarter big impact, first markets the logo I brought and of go fourth building fourth year. of and had logos as quarter to seeing new throughout quarter. capital almost say, we

Kyle Peterson

to us helpful. return really shareholder-friendly That's that improving of And a it. guys to could some cash you order flow I if bit improve know would of But kind here? kind Got conversion some remind maybe then on touched capital more be priorities cash the continues for maybe guys policies. working have and and flow the you what of rank some of as kind of some just

Anthony Jabbour

Yes.

and is obviously, organic driving down. the growth. to really debt and dividend, committed We're first, So the business the Kyle, investing pay in

I'll So space. you, think more the on knows anything The done bar, do space, high have over M&A you on relied last see M&A, in M&A that. about is something for tell have when team conviction we The can very haven't that. the in this to us the bar we year. partnership We'd to extreme

we back of being I need it. for the don't so on where So our and about it lot a also don't growth, said, thoughtful where really accelerated see are some areas growth is, immediate like pulled organic products very in have focusing that where we we increasing We've it.

not where our being it's very ratio. very also, obviously, our focused way So about reduction see, in all leverage being and we thoughtful We're invest additive. you that as continuous

Operator

is with Fargo. question Seth next Weber Wells Our from

Seth Weber

to much drill little cetera? try And is that to on little care just to maybe in EBITDA more to forecast margin if just there the that possible wanted health of bit. for -- to disaggregate XXXX. you pressure programs this out of for and broadly, of processing bit cost new I How a that's labor, et is the in just guide going quarter typical it's on you costs data more just much think of things called how kind fourth inflation, or I like versus or that. and saw continue spending it we a

in give could lack us of help about just expansion to think you any If how to XXXX.

Bryan Hipsher

Yes.

expect our call And of so when the the and midpoint it, growth expansion that roughly from of perspective. at guide, from, it's you XX bps organic what we look

then mindful of AI to gen and and growth our organic continuing data obviously, balancing, invest being continuing think I we're accelerate to in rate.

for If the up XX-ish were benefits, have a quarter, across fourth as the company health and year. compensation, the at especially to said, you down about XXXX. which our In takes, puts look in and incentive target in in in was couple paid we right, million increased XXXX, the even of percent care you $X XXXX those closer

where starting So those rate XXXX into XXXX things to impacted they run certainly are really more.

But outside XX of of talk getting as said, on of more edge there. bps XXX expansion, in again, that, the that of XX margin to towards kind about we bps is when kind I

million know know the on accelerate $XX little and talk that that we're excited can I to AI to trying from bit more Another the opportunities Maybe we're business I we're we're again, mindful just, around, perspective. $X Anthony be million third-party excited because [indiscernible], a about investing our making or is that gen something MDM. side. sure about continuing

a have that's of that, front We us. of in lot

kind [indiscernible] so And the penny trying and of be approach we to that took is year. wise this not

Anthony Jabbour

Yes, Seth.

achieve that AI. we as be biggest possible where add particular, Bryan's when didn't doing us, innovation wave expense on if in is you're to about we're of much another with the growing number would front the million in is probably And our million, $X in to million, we of typical $XX see $XXX opportunity as of margin point, this in lot which regret a Just in small EBITDA. this of generative a relatively moment

guide margins being we're XX that expanding that in to looks We again, continue good again, which, XXXX. like. really We're build very points it. feel We've So growth great 'XX. got what thoughtful a basis about into way, about we'll

balancing and think long-term the results, here. really So opportunities also are to important our that our full short-term things immediate again, but medium- we are these

Bryan Hipsher

piece there, items one due in just that's bridging Seth, more XXXX. And

solution revenue, perspective, about at we and up look from the of was ended it And sale in million We we -- we're expenses. continue the call voice that a the customer too. was finishing $X.X small set of of [indiscernible], portfolio, there that $X.X million that to

from modeling So a something just again, that's perspective.

not something But such to immaterial, them low-margin, I we think those, opportunities businesses consider to but see the these of get out as no-margin just that we portfolio. as want

of true really can you what the results So are provided. kind see

Seth Weber

you're -- on be, Yes. Makes better just the sense. what are have International we with in Can think, of a concerns International and to you in follow-up would the seeing catch outlook you just what then you around I of Europe can And the thought. business us than there mean lately. growing kind for some markets some I continues growth on are XXXX? International how comfortable up just

Anthony Jabbour

of confidence there. we've Yes, Sure. the got that a overall our International franchise lot in built momentum we've and

lot has work localizing tailwind a of taking great markets. us. from been products been the a there's for There creation great It's So D&B the capabilities. of new been

So which -- internationally, is risk that the started U.S. intelligence. added back where one one and And bringing monitoring that's we prepared to it and RACI, in mentioned compliance one I remarks, to the we're my workflow

specifically to Europe that growth But I like we question, said, your XXXX. mid-single-digit overall, see in with

And of very as our so at of caliber, hard proud you I'm look committed. performance, is how -- again, works the and the team everyone and

growing We it, a back it we We there. a it percent. few got neutral decliner. was from Bisnode, acquired With got it to

we'll be mid-single I think digits this year.

by large so in by we're of more the to to Bisnode, like these control now right And having companies. Europe do direct owning client, we able get

are that clients penetrating growth nice of enterprise had We've larger Europe. real based in a

of team have the So really proud in and do focused, we in there. very XXXX. again, confidence They're them I'm

Operator

Securities. is question from Andrew Truist with next Our Jeffrey

Andrew Jeffrey

review. and have MDM lot Bryan, portfolio the a And mentioned driving to you Anthony, definitely and about chain management, and of seems supply growth. lot been that be hearing a

Just high are areas of of comparable the your are generating you some or returns areas? to back, market level, resources perhaps products without solutions if or there of sort growth that step utilizing

and do think or targeted more focused? D&B way guess? How has portfolio maybe getting reviewing will or the holistic would you D&B think overall, portfolio in about And more a I about the a and D&B little

Anthony Jabbour

Yes. mentioned finish just small And we of. ] BXC in did business year focus It's as Europe Bryan divest business going last well. the something Great all we we're [ that the time. a that on Andrew. to question,

that. So looking are are parts. really we're are But us. return also constantly there not business we we're where investing, other at parts at looking the certainly of that But we parts getting would the say, -- we're in I'd because critical it to in those

We'll headwind to a for and get been think has decliner in growth. year or even previous which business, it decline. low a this us We credibility not years. the that of it single-digit will think You

And get which for The in us, us and valuable overall, is our of value a are data are, well to which look of by the I driving from parts for business. other other that our insights help business, growing of products, parts business that really we going we're of area the I'd to right? getting consolidating at going where So drive when a key business, continue number we say, return that line of we're to that's certainly be efficiencies.

shut clients been we've about meantime, there. solution, a success down legacy systems shut year product importance where alone, -- think modern migrating more that. we I had the we've our migrated to lot and of of the in a in to lines we also talked But able the -- last X we've So down

right, most And there's legacy is work migrate we I'd of while Where is completely system shut continue focus, where Andrew, to And the systems security investment, there require the right? review. obviously, I way. a down could like then as low requires to to exist, it really of have perspective, no they portfolio probably that's some still it investment, investment. it level do office but focusing lot And say a they be from that opportunity addition, we said, we're And a obviously, investment. require still in the our of example, attention for

Andrew Jeffrey

from a ingestion limiting about would what talk appreciate data to and a I revenue margin I sort maybe otherwise ingestion path Can that's expansion. other things you the that. or of sort bit my part stronger the talk data of generation? of the to the you're sets one been question structure product new have of data introduction cost from guess that's and Okay. can new is standpoint, or extent little cost And acquiring timeline data about you

Anthony Jabbour

it's where start, look, pervasive Number, it's margin an which position. have right? lead certainly got tack Management look I'll a and area Bryan, And we've is I -- from talked Data Yes. Master privileged you that everywhere, -- in on at we as D-U-N-S the could perspective. we the we've a and

that the the in is database around is best the commercial we believe best-in-class. points that. Our proof lot data have of the in we resolution And entity obviously, world and a have

continue additional bringing data So with enhanced drive to idea do the space. that in value how on is we

real of combination have value if in [indiscernible] working in finding and what with from some sources, And with with them data so we think already our we're we clients. alternative

again, capital we the the new space, we data it that is player in fourth this some all markets the through quarter, of and insights a very, alternative win that -- have. with driving So in very data value, most discussed top the of on incremental large really right, the other the having, that we're

a supply we clients be for the momentum builder, on basis. from the a perspective, timeline simplifying I'd important and when and it, great in of the it's when doing ingest driver similarly why us data it to steady that's for is So job, continues really a ingestion available a an And say. really team shrinking chain obviously,

Bryan Hipsher

And I going that Yes. of to support we've is of processing. done good business. a invest and we're continue is pretty what one data, normal in data have the to Andrew, things would job say that we the to That's

some $XX This incentive reset as XXXX. as I up really of compensation payout $X million the the basis. earlier, that a million in XXXX, on benefits were was component then abnormal was roughly year-over-year about said XXXX, to And year the care and health kind we of XX%

increasing home. just, the that been of a had from frankly, to and from lower people coming And more certainly going the I a initially back work overall bit, where usage pandemic think, people the doctor, from little benefits that's their of out

are $XXX run the But see towards those expansion million that that and the on So certainly, another back X rate. million, $XX to more perspective. you from you add things are

Operator

Our the with Steinerman JPMorgan. comes of next question from line Andrew

Andrew Steinerman

bit more Just a little data processing on costs.

you it have processing And call to continue able it's talk you enough value think Or you data an like to purchasing be from to you'll the with I margin be this processing, -- like third-party feel subject not to is but do or a to data also called it is that going realize do about subject? ongoing You third-party purchasing? we're customer feel going -- perspective?

Bryan Hipsher

Yes.

that think data overall instance, right? processing, streams. Andrew, right? our to This going we to So is this revenue I is, have So cloud obviously charges, we're for support charges the have our again, always processing and data

where above over right? so or be, And incrementally necessarily these things are and should it's they not that

structure. You're going to cost embedded have level the overall that of within margin

like when the again, normal, expect. about us processing I in infrastructure. costs we said, our right, in driving allows margin internal typical that terms But think so the supply really And contribution data cloud cost, our data our and that's chain we of would that

health instance, more the of some was compensation of Really, across benefits. as incentive-based piece the some care these I resetting said, and company abnormal for again, of elevated around kind the of in 'XX,

data into continuing lines more the 'XX, and expect normal we're to As But of run organic right, it's fees, that heading processing we'll revenue along us drive again, data growth. through.

the of make being of not investments them And want we're expansion then investments and it's the the our capital the just gen pushing some and of forward we but ranges. expanding AI push around higher margins, mindful just where to investments, is environment where end towards markets, making which in of the some we're

Operator

Manav from is Our Patnaik next Barclays. question with

Manav Patnaik

was I just index. wanted to vitality touch said XX% the on -- was I think it you

quantification how you And to more 'XX going Just guidance? more the how base? that, to hoping around little color that calculate just is some bit a on maybe contribute

Anthony Jabbour

really, vitality products, on And products revenues have. way newer The that what is to do older a that with we index from we older solutions. measure lot trying Sure. is have calculate clients we the of we're our

So the foot at clients are with if time, solution. they an you think have renewal best your older on about or you forward

allow us, index -- will which again renewals us XX% probably the a being always in be will our like high and for is, and it number exceptionally because it be It's with it position one. I it so But So imagine, range, it our said, vitality in is on won't to will clients, high. this of high, strength I I with do cycles. be what think,

architected they're us two, sell will more modern on it's that what's legacy to some add-on of the possible facilitates because our infrastructure the way capability Number it into versus with today platforms -- ones. built

from and why bundles, as et that's perspective upsell can puts they also Manav, can a cross-sell, to great It that us we to it's that us. satisfaction. of a from easily in renewal [indiscernible] and can higher continue buy cetera, results seeing perspective, that position important client from in clients we great We're from We're a easily. plug implement analytics, easily small and lot So our rates. driving operational

Bryan Hipsher

off, I point, make early think one, head we on want the to into Anthony's is to Yes, vintages from XXXX. falling one as Manav, we know right, you of sure

So number [indiscernible] don't surprised migrate year. that when down this be starts to

perspective. and from think upsell I that us It's obviously you think how helping from it's a right, But a pricing impact does cross-sell us perspective, about right? when guidance, helping

Our right, from continue retention highs rates, to that be industry perspective.

Anthony have. Hoovers, for So invest bring markets, capital materially as on to these things vitality and we that the index procurement us fall only it supporting we things upgrade we as like we that ask forward. and right, are do as mentioned important really not go But solutions was all ultimately into

Manav Patnaik

Got EPS, it. to Relative stuff? to of in And terms anything quick follow-up. mind just and in Bryan, free a flow conversion keep maybe cash for

Bryan Hipsher

Yes.

II last the XX, this of President Ireland Manav, particular, EPS, on late effect year. so Pillar on think So signed I year, December into in

So that pretty basis a from on had impact big that perspective. a obviously year-over-year

roughly to is tax XX%. rate going XX% The from

think cash that going the we flow component, free driving income, of are a couple range of that conversion the in side. $X.XX that about things improvement. probably from adjusted talking into You're When

these convert on that And the wind One, those a as to was the of migrations off while some that that D&A of as we those and 'XX, are to also frame, some component big of of the as come off, those and then X of costs work, so start gap. starting have cloud down going on, to X some has duplicative perspective. from back converge, in helps back-office converge. 'XX always CapEx CapEx come peak down time that its

Operator

of gentlemen, Bank last interest from of the America. time, question take the Balsky with in we and Heather Ladies

Heather Balsky

philosophically think forward. to I a can and I investment earlier appreciate to it back appreciate how gen meaningful now, with and going to AI is opportunity. the wanted it. question I right you about that go regards margin spend

But for innovation you target, the given going in a fast, your balancing the the future? opportunities think margin do where be advancing a of midterm today that lot how and to technology of your additional kind in we with that opportunities on see world you kind of seems operate very potential there's and target about margin

Anthony Jabbour

unusual you, a the the the are terms we confidence say, question. comps, Heather. operationally. the revenues care mean, I'd expanding, well, we incentive how we're of I how benefit very [indiscernible] Thank it. and again, it's looking health and in focused -- margins for at have 'XX right? in engine, No, Look, So that core back producing good it's see we

it of testament of expansion spending would million we spend think that's to in front are to opportunity efficiently in we I pulled $X where look and million -- where a this about where say and the we and front with difference $XX But we margin it's be there's many XXX. of XX%, when us much are I'd the And we how like number with to greater we back XX have having of XXXX guided And there to in a of AI. said, investment investing. market and where the advent typically generative

this space really industry, And here. and data those that analytics and be there's at So I'll XXXX this I doubling advantage foolish investments that do any to at really at that, potential really in of in isn't look understand I'd and down that on industry, not their look look to the something are them take us XXXX, points think, that. as inflection as I given year say, year. given any for

said, it's from is the we said, investment that feel would us worth like being really juice we're the be. making I margin small a precludes good that we I the squeeze. like in that And range But typical relatively that

Operator

and was hand closing the question. I now comments. conference the last for Ladies his over that Anthony gentlemen, Jabbour to

Anthony Jabbour

Ryan. you, Thank

wonderful and thank day. you to years you their efforts the a for for to As Like always, like for to Bradstreet. & & and rest our clients Dun I'd to business partnership Bradstreet interest your grow colleagues of in great Hope your their come have Dun for thank my sustainably exceptional to guidance. our

Operator

has conference & The Dun for you. you your Thank of Thank participation. now concluded. Bradstreet

your You lines. may disconnect now

Dun & Bradstreet (DNB) 15 Feb 242023 Q4 Earnings call transcript