Dun & Bradstreet Holdings, Inc. (NYSE: DNB), a leading global provider of business decisioning data and analytics, today announced unaudited financial results for the fourth quarter and year ended December 31, 2023. A reconciliation of U.S. generally accepted accounting principles (“GAAP”) to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Use of Non-GAAP Financial Measures.”
- Revenue for the fourth quarter of 2023 was $630.4 million, an increase of 6.0% and 5.1% on a constant currency basis compared to the fourth quarter of 2022.
- GAAP net income for the fourth quarter of 2023 was $1.7 million, or diluted earnings per share of less than $0.01, compared to net income of $22.8 million, or diluted earnings per share of $0.05 for the prior year quarter. Adjusted net income was $139.8 million, or adjusted diluted earnings per share of $0.32, compared to adjusted net income of $131.0 million, or adjusted diluted earnings per share of $0.30 for the prior year quarter.
- Adjusted EBITDA for the fourth quarter of 2023 was $260.6 million, an increase of 4.0% compared to the prior year quarter. Adjusted EBITDA margin for the fourth quarter of 2023 was 41.3%.
“We closed 2023 on a high note, delivering organic revenue growth of 5.1% during the fourth quarter with balanced performance across both our North America and International business segments. We engaged our customers with urgency, delivered our data and analytics with precision, and created new and innovative solutions to satisfy prospects growing needs. Companies throughout the world continue to lean on our breadth of solutions and we see robust demand for master data management and third party and supply chain risk solutions,” said Anthony Jabbour, Dun & Bradstreet Chief Executive Officer. “Overall, our strong financial and operating performance in 2023 was another proof point in our ongoing journey to transform and maximize the value of Dun & Bradstreet. With full year organic revenue growth at 4.3%, adjusted EBITDA of $892 million, and adjusted net earnings of $432 million, we continued to accelerate growth while maintaining excellent margins and improving our balance sheet. We are well-positioned to capture the significant growth opportunities in front of us and we expect to continue to accelerate revenue growth in 2024 despite a challenging macro environment. With improving profitability and cash flows, we expect to continue to deleverage the balance sheet and focus capital allocation strategies on driving increased shareholder returns.”
- Revenue for the year ended December 31, 2023 was $2,314.0 million, an increase of 4.0% and 4.2% on a constant currency basis compared to the year ended December 31, 2022.
- Organic revenue increased 4.3% on a constant currency basis compared to the year ended December 31, 2022.
- GAAP net loss for the year ended December 31, 2023 was $47.0 million, or loss per share of $0.11, compared to net loss of $2.3 million, or loss per share of $0.01 for the prior year. Adjusted net income was $431.6 million, or adjusted diluted earnings per share of $1.00, compared to adjusted net income of $439.6 million, or adjusted diluted earnings per share of $1.02 for the prior year.
- Adjusted EBITDA for the year ended December 31, 2023 was $892.2 million, an increase of 3.3% compared to the year ended December 31, 2022. Adjusted EBITDA margin for the year ended December 31, 2023 was 38.6%.
Segment Results
North America
For the fourth quarter of 2023, North America revenue was $456.8 million, an increase of $21.9 million or 5.0% compared to the fourth quarter of 2022.
- Finance and Risk revenue for the fourth quarter of 2023 was $241.4 million, an increase of $10.3 million or 4.4% compared to the fourth quarter of 2022.
- Sales and Marketing revenue for the fourth quarter of 2023 was $215.4 million, an increase of $11.6 million or 5.7% compared to the fourth quarter of 2022.
North America adjusted EBITDA for the fourth quarter of 2023 was $223.7 million, an increase of 4.1%, with adjusted EBITDA margin of 49.0%.
For the year ended December 31, 2023, North America revenue was $1,644.5 million, an increase of $57.4 million or 3.6% and 3.7% on a constant currency basis compared to the year ended December 31, 2022.
- Finance and Risk revenue for the year ended December 31, 2023 was $888.1 million, an increase of $21.2 million or 2.4% and 2.5% on a constant currency basis compared to the year ended December 31, 2022. This included a $7.5 million negative impact from the expiration of the GSA contract in April of 2022.
- Sales and Marketing revenue for the year ended December 31, 2023 was $756.4 million, an increase of $36.2 million or 5.0% and 5.1% on a constant currency basis compared to the year ended December 31, 2022.
North America adjusted EBITDA for the year ended December 31, 2023 was $743.3 million, an increase of 3.5%, with adjusted EBITDA margin of 45.2%.
International
International revenue for the fourth quarter of 2023 was $173.6 million, an increase of $13.5 million or 8.4% and 5.3% on a constant currency basis compared to the fourth quarter of 2022.
- Finance and Risk revenue for the fourth quarter of 2023 was $116.4 million, an increase of $10.4 million or 9.8% and 6.7% on a constant currency basis compared to the fourth quarter of 2022.
- Sales and Marketing revenue for the fourth quarter of 2023 was $57.2 million, an increase of $3.1 million or 5.8% and 2.6% on a constant currency basis compared to the fourth quarter of 2022.
International adjusted EBITDA for the fourth quarter of 2023 was $55.2 million, an increase of 12.6%, with adjusted EBITDA margin of 31.8%.
International revenue for the year ended December 31, 2023 was $669.5 million, an increase of $32.0 million or 5.0% and 5.5% on a constant currency basis compared to the year ended December 31, 2022. Excluding the negative impact of foreign exchange of $1.6 million and the impact of the divestiture of the B2C business in Germany, organic revenue on a constant currency basis increased 5.8%.
- Finance and Risk revenue for the year ended December 31, 2023 was $448.6 million, an increase of $29.5 million or 7.0% and 7.2% on a constant currency basis compared to the year ended December 31, 2022.
- Sales and Marketing revenue for the year ended December 31, 2023 was $220.9 million, an increase of $2.5 million or 1.1% and 2.1% on a constant currency basis compared to the year ended December 31, 2022. Excluding the negative impact of the divestiture in 2022, Sales and Marketing organic revenue increased 3.0%.
International adjusted EBITDA for the year ended December 31, 2023 was $215.4 million, an increase of 6.5%, with adjusted EBITDA margin of 32.2%.
Balance Sheet
As of December 31, 2023, we had cash and cash equivalents of $188.1 million and total principal amount of debt of $3,588.6 million. We had $825.0 million available on our $850 million revolving credit facility as of December 31, 2023.
Business Outlook
- Revenues after the impact of foreign exchange are expected to be in the range of $2,400 million to $2,440 million, or ∼3.7% to 5.4%.
- Organic revenue growth is expected to be in the range of 4.1% to 5.1%.
- Adjusted EBITDA is expected to be in the range of $930 million to $950 million.
- Adjusted EPS is expected to be in the range of $1.00 to $1.04.
The foregoing forward-looking statements reflect Dun & Bradstreet’s expectations as of today’s date and Revenue assumes constant foreign currency rates. Dun & Bradstreet does not present a qualitative reconciliation of its forward-looking non-GAAP financial measures to the most directly comparable GAAP measure due to the inherent difficulty, without unreasonable efforts, in forecasting and quantifying with reasonable accuracy significant items required for this reconciliation. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Dun & Bradstreet does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.
Earnings Conference Call and Audio Webcast
Dun & Bradstreet will host a conference call to discuss the fourth quarter and full year 2023 financial results on February 15, 2024 at 8:30am ET. The conference call can be accessed live over the phone by dialing 1-877-407-9716 (USA), or 1-201-493-6779 (International). The conference call replay will be available from 11:30am ET on February 15, 2024, through February 29, 2024, by dialing 1-844-512-2921 (USA) or 1-412-317-6671 (International). The replay passcode will be 13743901.
The call will also be webcast live from Dun & Bradstreet’s investor relations website at https://investor.dnb.com. Following the completion of the call, a recorded replay of the webcast will be available on the website.
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