10-K: Dun & Bradstreet Holdings, Inc. Reports Fiscal Year 2024 Results

Dun & Bradstreet Holdings, Inc. reports a 2.9% increase in revenue for fiscal year 2024, driven by growth in both North America and International segments.

Summary

• Dun & Bradstreet Holdings, Inc. reported a revenue increase of 2.9% for the fiscal year ended December 31, 2024, with total revenue reaching $2,381.7 million.
• Organic revenue growth was 3.0%, excluding the impact of foreign exchange and divestitures.
• The company's global client base stands at approximately 215,000 as of December 31, 2024.
• Adjusted EBITDA increased by 3.9% to $926.6 million, with an adjusted EBITDA margin of 38.9%.
• Net loss attributable to Dun & Bradstreet Holdings, Inc. was $28.6 million, or $0.07 per share.
• The company repurchased 961,360 shares of its common stock for $9.3 million during the year.
• The company has a three-year stock repurchase program authorized by the Board of Directors.
• The company is managing risks associated with climate change and ESG, including risks associated with its own reporting.

Sentiment

Score: 6

Explanation: The document presents a mixed sentiment. While revenue and adjusted EBITDA increased, the company still reported a net loss. The presence of ongoing legal matters and regulatory scrutiny adds to the uncertainty.

Positives

• Revenue increased by 2.9% to $2,381.7 million for fiscal year 2024.
• Organic revenue growth was 3.0%, excluding the impact of foreign exchange and divestitures.
• Adjusted EBITDA increased by 3.9% to $926.6 million.
• The company repurchased 961,360 shares of its common stock for $9.3 million during the year.
• The company's annual revenue retention rate was 96% for 2024.
• The company is expanding its presence in attractive international markets.

Negatives

• Net loss attributable to Dun & Bradstreet Holdings, Inc. was $28.6 million, or $0.07 per share.
• International revenue accounting for approximately 30% of the business in 2024 indicates under-penetration in international markets.
• The company is subject to a 20-year consent order with the U.S. Federal Trade Commission (FTC).
• The company is discussing a potential resolution of alleged violations of the Consent Order with the FTC.

Risks

• The company's ability to implement and execute its strategic plans may not be successful.
• The company faces significant competition for its solutions.
• Data security, integrity, and digital resilience are critically important, and cybersecurity incidents could result in material loss of business.
• The company could lose access to data sources or the ability to transfer data across systems in markets where it operates.
• Unfavorable global economic conditions or geopolitical events could have a material adverse effect on the business.
• The Investor Consortium continues to hold significant ownership stakes in the company's common stock, which can significantly influence its business/affairs and may have conflicts of interest with the company in the future.

Future Outlook

The company expects to continue generating substantial cash from ongoing operating activities and manage its capital structure to meet shortand long-term objectives, including investing in existing businesses and strategic acquisitions.

Industry Context

Dun & Bradstreet operates in the big data and analytics software market, serving various markets including commercial credit data, sales and marketing data, and Governance, Risk and Compliance (GRC). The company is positioned to capitalize on market trends such as the growing recognition of analytics and data-informed business decisioning, growth in data creation and applications, advances in analytical and technological capabilities, heightened compliance requirements, and the growing trend of data consumption through cloud-based delivery platforms.

Comparison to Industry Standards

• Dun & Bradstreet competes with companies like Bureau van Dijk (owned by Moody's Corporation), Experian, and Creditsafe in Europe, and Experian and Equifax in North America for Finance & Risk solutions.
• For Sales & Marketing solutions, competitors include ZoomInfo, 6Sense, and Demandbase.
• The competitive environment varies by region and country, with local players competing in various markets.

Legal Proceedings

• The company is involved in various pending and threatened litigation and regulatory matters related to its operations.
• The company is defending claims in DeBose v. Dun & Bradstreet Holdings, Inc. and Batis v. Dun & Bradstreet Holdings, Inc., both right of publicity class actions.
• The company is discussing a potential resolution of alleged violations of the Consent Order with the FTC.
• National Grid filed litigation against the Company along with various other parties seeking contribution for certain costs, interest and expenses, as well as a permanent injunction.

Related Party Transactions

• Paysafe signed a 63-month lease agreement with D&B for the occupancy of the fourth floor of the headquarters building in Jacksonville, Florida.
• In June 2021, D&B entered into a five-year agreement with Black Knight to receive data license fees and provide certain products and data, as well as professional services.
• In September 2021, D&B entered into a 10-year agreement with Paysafe to provide data license and risk management solution services.

Stakeholder Impact

• Shareholders may be impacted by the stock repurchase program and dividend payments.
• Employees may be impacted by restructuring charges and changes in compensation and benefits.
• Customers may be impacted by the company's ability to develop and deliver innovative solutions.
• The company is committed to empowering the people and communities where they operate.

Next Steps

• The company will continue to execute its multi-year transformation strategy.
• The company will focus on enhancing existing client relationships, winning new clients in targeted markets, and developing innovative solutions.
• The company will selectively pursue strategic acquisitions.
• The company is discussing a potential resolution of alleged violations of the Consent Order with the FTC.

Key Dates

Keywords

financial results, revenue, adjusted EBITDA, data analytics, business decisioning, risk management, sales marketing, Dun Bradstreet, DNB