Wahid Amin

Wahid Amin asked about the specific contributions to strong pricing and cross-sell/up-sell in the quarter, and the reasons behind the deceleration of organic growth in the Americas.

Answer

CFO Mike Burwell reiterated NIQ's revenue algorithm, with pricing and innovation each contributing roughly 2.5% to growth, highlighting e-commerce, consumer panels, and SMB as strong drivers. COO Tracey Massey attributed the Americas' deceleration to tough year-over-year comps (9% growth in Q3 last year), not client issues, and expects acceleration from the recent U.S. launch of panel on demand and momentum in full-view measurement and Basies AI Screener.

Wahid Amin inquired about the current pricing environment, the nature of client conversations, and whether there are any areas where clients are less receptive to price increases.

Answer

CFO Andrew Wiechmann reported no major changes to the pricing approach, with the contribution from price increases remaining consistent with recent quarters. He noted a slightly higher price contribution in Analytics to monetize new capabilities and in Sustainability due to lower overall sales. The core strategy remains aligning price with the value and enhancements delivered to clients.

Wahid Amin, on for Heather Balsky, asked about the external macro-related issues in Digital Marketing Solutions and what internal actions the team is taking to offset these challenges. He also questioned the cause of the sequential revenue decline in the international Sales and Marketing segment.

Answer

CEO Anthony Jabbour stated that while macro factors are impacting the industry, D&B is benefiting from Google's decision to not deprecate cookies, which will drive traditional volumes. He also highlighted internal efforts, including penetrating new channels like connected TV and social media, and leveraging direct client relationships. Regarding the international segment, both CEO Anthony Jabbour and CFO Bryan Hipsher noted it is a smaller business prone to quarter-to-quarter fluctuations and that a broader view over the full year would show more consistent performance.

Wahid Amin from Bank of America inquired about the drivers for lower data acquisition costs and whether it was a timing issue. He also asked about the spending and timeline for generative AI initiatives and when their benefits would materialize in the P&L.

Answer

CFO Bryan Hipsher explained that the lower data acquisition costs are a result of ongoing efficiency and effectiveness efforts, including the use of AI tools for data collection, and are not a timing issue. CEO Anthony Jabbour added that while the company is actively investing in generative AI within its current guidance, significant revenue impact of 1 to 2 points of growth is not anticipated until 2025 and 2026.