Executive Summary

Q3 2024 delivered solid top-line and margin execution: revenue $609.1M (+3.5% YoY) and adjusted EBITDA $247.4M with 40.6% margin; organic constant currency revenue growth was 3.4%, slightly above management’s expectations .
International remained the growth engine (+5.7% revenue), while North America grew 2.6% with sequential improvement in Digital Marketing; consolidated margins expanded 60 bps YoY and North America margin reached 48.0% (+160 bps) .
FY24 outlook maintained at the low end for revenue/organic growth; adjusted EBITDA ($930–$950M) and adjusted EPS ($1.00–$1.04) reiterated; modeling updated: interest expense lowered to ~$215M (from ~$220M), D&A raised to $130–$140M .
Strategic catalysts: launch of ChatD&B generative AI assistant and multi-year partnerships (LSEG private markets, Databricks data access), plus inbound strategic/financial interest in the company; dividend declared $0.05 per share for Q4 .

What Went Well and What Went Wrong

What Went Well
- International Finance & Risk continued strong demand (Q3 F&R $121.6M, +7.1%), with growth across API solutions and third-party risk/compliance in Europe; International adjusted EBITDA margin up to 33.5% (+30 bps) .
- North America margin expansion to 48.0% (+160 bps) on revenue growth and lower net personnel costs; overall adjusted EBITDA margin expanded 60 bps YoY to 40.6% .
- AI/partnership momentum: ChatD&B launched with positive client feedback; strategic collaborations with LSEG (private markets) and Databricks (real-time datasets), positioning for capital markets and data distribution expansion .
- Quote: “Organic revenue growth of 3.4% was ahead of our expectations, and we delivered Adjusted EBITDA margin expansion of 60 basis points...” — CEO Anthony Jabbour .
What Went Wrong
- Digital Marketing remained a headwind (though improving sequentially to low single-digit decline), reflecting disciplined client spend and elongated sales cycles; macro caution persisted .
- GAAP profitability remained modest (net income $3.2M; diluted EPS $0.01), with earnings affected by lower tax benefit and swap amortization; adjusted EPS flat YoY at $0.27 .
- Credibility (SMB) still below desired trajectory despite green shoots; management remains open to strategic options while focusing on company-level inbound interest .

Financial Results

Quarterly progression (sequential, oldest → newest)

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$565.0	$576.2	$609.1
GAAP Diluted EPS ($)	$(0.05)	$(0.04)	$0.01
Adjusted EPS ($)	$0.20	$0.23	$0.27
Adjusted EBITDA ($USD Millions)	$201.0	$217.9	$247.4
Adjusted EBITDA Margin (%)	36.0%	37.8%	40.6%

Year-over-year comparison (Q3)

Metric	Q3 2023	Q3 2024
Revenue ($USD Millions)	$588.5	$609.1
Revenue YoY Growth (%)	—	3.5%
Organic Revenue Growth YoY (%)	—	3.4%
Adjusted EBITDA ($USD Millions)	$235.4	$247.4
Adjusted EBITDA Margin (%)	40.0%	40.6%
Adjusted EPS ($)	$0.27	$0.27
GAAP Diluted EPS ($)	$0.01	$0.01

Segment breakdown (Q2 vs Q3)

Segment Metric	Q2 2024	Q3 2024
North America Revenue ($M)	$404.6	$432.5
- Finance & Risk Revenue ($M)	$216.0	$237.7
- Sales & Marketing Revenue ($M)	$188.6	$194.8
North America Adjusted EBITDA ($M)	$178.2	$207.7
North America Adjusted EBITDA Margin (%)	44.0%	48.0%
International Revenue ($M)	$171.6	$176.6
- Finance & Risk Revenue ($M)	$116.5	$121.6
- Sales & Marketing Revenue ($M)	$55.1	$55.0
International Adjusted EBITDA ($M)	$53.8	$59.1
International Adjusted EBITDA Margin (%)	31.3%	33.5%

KPIs and balance sheet (Q3)

KPI	Q3 2024
NA Revenue Retention (%)	97%
International Revenue Retention (%)	93%
NA Vitality Index (%)	32%
International Vitality Index (%)	35%
Cash & Cash Equivalents ($M)	$288.7
Total Principal Debt ($M)	$3,681.1
Revolver Availability ($M)	$717.0
Net Leverage (x)	3.7x
Weighted Avg Diluted Shares (M)	435.6

Estimates comparison (Street consensus via S&P Global)

Metric	Q3 2024 Actual	Q3 2024 Consensus	Beat/Miss
Revenue ($USD Millions)	$609.1	N/A – SPGI consensus unavailable	N/A
Adjusted EPS ($)	$0.27	N/A – SPGI consensus unavailable	N/A

Note: S&P Global consensus estimates were unavailable due to a mapping issue in CIQ for ticker DNB; therefore, estimate-based comparisons could not be retrieved. Values retrieved from company filings/transcripts as cited; no SPGI values available.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue (after FX)	FY 2024	Low end of $2,400–$2,440M	Low end of $2,400–$2,440M	Maintained
Organic Revenue Growth (%)	FY 2024	Low end of 4.1%–5.1%	Low end of 4.1%–5.1%	Maintained
Adjusted EBITDA ($M)	FY 2024	$930–$950	$930–$950	Maintained
Adjusted EPS ($)	FY 2024	$1.00–$1.04	$1.00–$1.04	Maintained
Interest Expense ($M)	FY 2024	~$220	~$215	Lowered
Depreciation & Amortization ($M)	FY 2024	$125–$135 (ex. PA)	$130–$140 (ex. PA)	Raised
Adjusted Effective Tax Rate (%)	FY 2024	~22%–23%	~22%–23%	Maintained
Weighted Avg Diluted Shares (M)	FY 2024	~436	~436	Maintained
Capex (Software; PP&E/Software)	FY 2024	$150–$160; $45	$150–$160; $45	Maintained
Dividend	Q4 2024	—	$0.05 per share declared	New declaration

Earnings Call Themes & Trends

Topic	Q1 2024 (Prior 2)	Q2 2024 (Prior 1)	Q3 2024 (Current)	Trend
AI/technology initiatives	IBM Ask Procurement; Hoovers conversational list builder; AI ethics/traceability	Hoovers SmartMail; >4,000 clients on GenAI features; ChatD&B early testing	ChatD&B launched; internal 1,000 testers; clients in early adopter program; strong feedback; free initial rollout	Accelerating adoption
Supply chain/third-party risk	Nearly 30% growth; TAM ~$10B; cross-sell runway	>20% growth; strong wins; RACI solution	Continued growth across regions; API and compliance demand	Sustained strength
Macro/sales cycle	Stable but slower since Q4’23; cautious spend	Delayed rate cuts; Digital Marketing cyclical softness	Disciplined client spending; sales cycles lengthened; Fed cut referenced	Cautious, improving visibility
Digital Marketing performance	Mixed; headwinds	Down 14% YoY; volumes depressed	Low single-digit decline; sequential improvement; expected further Q4 improvement	Improving sequentially
Regional trends	International strong; Europe/Asia wins	International F&R +8–9% CC; margin up	International revenue +5.7%; retention 93%; vitality 35%	Consistent growth
Credibility (SMB)	Headwind; plan to stabilize by mid-year	-7% YoY in Q2; money-back guarantee launched	Slight growth in Q3; monitoring; focus on broader company process	Stabilizing
Cloud/capex	Migration progressing; tapering H2	Investments moderating in H2	Capitalized software reduced (annualized ~$15M); target 6–7% of revenue	Capex moderating

Management Commentary

Strategic interest: “We’ve been working with our adviser to evaluate inquiries from both strategic and financial acquirers… conducting in-person meetings… and will continue to be responsive… on behalf of our shareholders.” — CEO Anthony Jabbour .
AI launch: “Chat D&B… patent-pending generative AI assistant… surfaces knowledge across the company’s Data Blocks… users can ask questions… and it has the intelligence to access and analyze the underlying data…” — CEO ; public release announcement .
Partnerships: “Forming a strategic collaboration with LSEG to broaden access to private market information… D-U-N-S Number will now be available to LSEG’s Workspace…” — CEO ; press release details . “Partnered with ICE to launch a new climate risk data offering… one of the broadest climate data offerings available…” — CEO .
Commercial execution: NA revenue retention 97%, vitality 32%; International retention 93%, vitality 35%; wins across banking, insurance, IKEA supplier risk expansion, large UK Hoovers sale .
Capital allocation: Year-end net leverage target ~3.5x; forward-starting interest rate swaps executed; buyback paused in Q3 amid inbound interest .

Q&A Highlights

Digital Marketing: Sequential improvement to low single-digit decline; expected further improvement in Q4; headwinds moderating vs H1 .
Leverage and balance sheet: Net leverage ~3.7x; path to ~3.5x by year-end; swaps extended/matured to manage floating rate exposure .
Strategic options/credibility: Focus on main transaction; credibility improved slightly in Q3; money-back guarantee driving uptake; strategic options remain on the table .
Partnerships economics: LSEG/ICE alliances structured as revenue share on combined solutions; near-term monetization via distribution/usage .
Outlook cadence: Q3 slightly better than expected; Q4 aimed toward higher end of full-year organic growth range (not above) with balanced year math; AR securitization payback of ~$9.6M in quarter .

Estimates Context

S&P Global consensus estimates for DNB (EPS, revenue, EBITDA) were unavailable due to a CIQ mapping issue, preventing retrieval of Wall Street consensus for Q3 2024 and prior quarters. Consequently, beat/miss analysis versus Street estimates could not be provided. Company-reported performance noted above. Values retrieved from company filings/transcripts; no SPGI values available for estimates .

Key Takeaways for Investors

Margin execution stands out: adjusted EBITDA margin expanded to 40.6% and North America margin to 48.0%; continued cost discipline and mix shift support durability .
International F&R strength remains the key growth driver, with API and compliance use cases broadening and WWN royalties contributing; expect sustained mid-single-digit organic growth .
Digital Marketing is improving sequentially; watch Q4 volumes and channel mix (CTV/retail media/social) for confirmation of recovery trajectory .
FY24 guide intact at low end for top line, with adjusted EBITDA/EPS reiterated; modeling tweaks (interest expense lower, D&A higher) balance earnings drivers .
Strategic catalysts: ChatD&B adoption and LSEG/Databricks partnerships can expand addressable markets and distribution; monitor early monetization signals and client usage .
Balance sheet de-risking continues with swaps and deleveraging; net leverage path to ~3.5x supports optionality for buybacks/dividends post any strategic developments .
Trading implications: Near-term, the narrative centers on AI commercialization, International momentum, and Q4 cadence; medium-term, cross-sell into Finance Solutions base and third-party risk TAM underpin 5–7% organic growth aspirations .

Dun & Bradstreet Holdings, Inc. (DNB)·Q3 2024 Earnings Summary