Dun & Bradstreet Holdings Inc (DNB, Financial), a leader in business decisioning data and analytics, disclosed its financial results for the first quarter ended March 31, 2024, in its recent 8-K filing. The company reported a revenue of $564.5 million, a 4.5% increase year-over-year but slightly below the analyst estimate of $565.55 million. Adjusted net income reached $85.0 million, with adjusted diluted earnings per share (EPS) of $0.20, aligning perfectly with analyst expectations.
Company Overview
Dun & Bradstreet Holdings Inc operates primarily through two segments: North America and International. The company offers a range of services including finance and risk management, sales and marketing solutions, and data analytics, predominantly in the United States and Canada. It also has a significant presence in the UK, Europe, Greater China, and India. The majority of its revenue is generated from the North American market.
Financial Performance Insights
The company's GAAP net loss for Q1 2024 was $23.2 million, an improvement from a net loss of $33.7 million in Q1 2023. This loss translated to a diluted EPS of -$0.05. The adjusted EBITDA for the quarter was $201.3 million, up 6.0% from the previous year, with an adjusted EBITDA margin of 35.7%. This margin improvement underscores Dun & Bradstreet's enhanced operational efficiency and ability to convert earnings before interest, taxes, depreciation, and amortization into net income.
Segment Performance
In North America, revenue for Q1 2024 was $386.6 million, marking a 3.2% increase from Q1 2023. The Finance and Risk segment showed a revenue increase of 3.5%, while the Sales and Marketing segment grew by 2.9%. The North America adjusted EBITDA was $152.1 million with an adjusted EBITDA margin of 39.3%. Internationally, revenue was $177.9 million, a 7.4% increase, with the International adjusted EBITDA at $64.3 million and a margin of 36.1%.
Strategic Developments and Future Outlook
CEO Anthony Jabbour expressed satisfaction with the company's performance, highlighting growth driven by strategic initiatives such as cross-selling, upselling, and new solution innovations. The board's approval of a share repurchase program reflects confidence in the company's future financial performance. For the full year 2024, Dun & Bradstreet anticipates revenues between $2,400 million and $2,440 million, with organic revenue growth expected to be between 4.1% and 5.1%. Adjusted EBITDA is projected to be between $930 million and $950 million, with adjusted EPS in the range of $1.00 to $1.04.
Balance Sheet and Cash Flow
As of March 31, 2024, Dun & Bradstreet reported $216.0 million in cash and cash equivalents. The total principal amount of debt stood at $3,563.6 million. The company also reported a robust cash flow from operations amounting to $158.9 million for the quarter.
This financial snapshot provides a clear view of Dun & Bradstreet's current standing and strategic direction, essential for investors considering this stock for their portfolios.
Explore the complete 8-K earnings release (here) from Dun & Bradstreet Holdings Inc for further details.
