On August 1, 2024, Dun & Bradstreet Holdings Inc (DNB, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. Dun & Bradstreet Holdings Inc is a provider of business decisioning data and analytics, operating in two segments: North America and International. The company generates maximum revenue from the North American region.
Performance Overview
For Q2 2024, Dun & Bradstreet Holdings Inc reported revenue of $576.2 million, a 3.9% increase from the same quarter last year but slightly below the analyst estimate of $580.72 million. The company's GAAP net loss narrowed to $16.4 million, or $0.04 per share, compared to a net loss of $19.4 million, or $0.04 per share, in Q2 2023. Adjusted net income was $99.1 million, or $0.23 per share, surpassing the analyst estimate of $0.22 per share.
Segment Performance
In North America, revenue for Q2 2024 was $404.6 million, a 3.3% increase from the previous year. The Finance and Risk segment contributed $216.0 million, up 2.6%, while Sales and Marketing revenue was $188.6 million, up 4.2%. North America adjusted EBITDA rose by 2.7% to $178.2 million, with an adjusted EBITDA margin of 44.0%.
Internationally, revenue grew by 5.2% to $171.6 million. The Finance and Risk segment saw an 8.1% increase to $116.5 million, while Sales and Marketing revenue slightly decreased by 0.3% to $55.1 million. International adjusted EBITDA increased by 9.5% to $53.8 million, with an adjusted EBITDA margin of 31.3%.
Financial Achievements and Challenges
Despite the revenue miss, Dun & Bradstreet Holdings Inc achieved a 5.7% increase in adjusted EBITDA to $217.9 million, with an adjusted EBITDA margin of 37.8%. The company also reported a 4.3% organic revenue growth on a constant currency basis. However, the GAAP net loss and the challenges in the Digital Marketing solutions segment due to macroeconomic conditions remain areas of concern.
“We are pleased with our solid performance in the second quarter. We delivered organic revenue growth of 4.3 percent, our fourth consecutive quarter of reported mid-single digit growth, and Adjusted EBITDA margin expansion of 60 basis points,” said Anthony Jabbour, Dun & Bradstreet Chief Executive Officer.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $576.2 million | $554.7 million |
| GAAP Net Loss | $16.4 million | $19.4 million |
| Adjusted Net Income | $99.1 million | $95.1 million |
| Adjusted EBITDA | $217.9 million | $206.2 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Dun & Bradstreet Holdings Inc had cash and cash equivalents of $263.2 million and total debt of $3,675.8 million. The company repurchased 961,360 shares for $9.3 million during the quarter. Cash flow from operating activities was $195.6 million for the first six months of 2024.
Business Outlook
For the full year 2024, Dun & Bradstreet Holdings Inc expects revenues to be at the low end of the previously communicated range of $2,400 million to $2,440 million. Organic revenue growth is also expected to be at the low end of the 4.1% to 5.1% range. Adjusted EBITDA is projected to remain between $930 million and $950 million, with adjusted EPS in the range of $1.00 to $1.04.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Dun & Bradstreet Holdings Inc for further details.
