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Dun & Bradstreet Holdings, Inc. (DNB)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 revenue was $631.9M (+0.2% YoY), GAAP diluted EPS $0.02, adjusted EPS $0.30, and adjusted EBITDA $260.0M with a 41.2% margin; full-year 2024 organic growth was 3.0% and adjusted EBITDA margin expanded 30 bps .
  • North America Finance & Risk declined 5% on deal/delivery timing and partnership exits, while International grew 6% with strong Finance & Risk demand; total organic revenue growth was 0.3% in Q4 .
  • Management attributed a ~$9M Q4 revenue shortfall to strategic process distractions, exited two non-strategic partnerships (-$6M in Q4 and -$14M in 2025 revenue, EBITDA positive), and cited $3M usage and $4M delivery timing delays largely expected to flow into H1’25 .
  • 2025 guidance: revenue $2.44–$2.50B (+2.5%–5.0%), organic +3%–5%, adjusted EBITDA $955–$985M, adjusted EPS $1.01–$1.07; modeling includes ~$200M interest, D&A $160–$170M, tax rate 22%–23%, ~438M diluted shares, capex ~$190–$200M .
  • Near-term stock catalysts: conclusion of strategic review expected in Q1 2025, Q1 guide color toward low end given ongoing process, with sequential acceleration through 2025 per management .

What Went Well and What Went Wrong

What Went Well

  • International delivered 6% revenue growth (+8% Finance & Risk BFX) and 5% adjusted EBITDA growth in Q4; full-year International adjusted EBITDA margin expanded 100 bps to 33.2% .
  • Management completed migrations to modern platforms (Finance Analytics, Risk Analytics, Direct+ API) and contract optimization, positioning for improved growth; “we have successfully migrated tens of thousands of clients in North America” .
  • Debt repricings and swaps lowered term loan spread (SOFR+225 bps) and reduced interest by 50 bps in Q4; net leverage fell to 3.6x with 90% of debt fixed/hedged .
  • AI initiatives accelerated: Chat D&B launched broadly with strong client feedback; management noted ~25 deployments and highlighted explainability/auditability features .

What Went Wrong

  • Q4 organic revenue growth slowed to 0.3%; North America Finance & Risk fell 5% on deal/delivery timing and process-related client hesitancy, shifting ~$9M of expected Q4 revenue into early 2025 .
  • Exiting two partnerships reduced Q4 revenue by $6M and will lower 2025 revenue by ~$14M, though EBITDA impact is positive; sales cycles lengthened amid strategic review distractions .
  • Cloud/data supply chain costs pressured margins; North America adjusted EBITDA fell 7.1% with margins down 270 bps to 46.3% in Q4 .

Financial Results

Quarterly Performance (Q2–Q4 2024)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$576.2 $609.1 $631.9
GAAP Diluted EPS ($USD)-$0.04 $0.01 $0.02
Adjusted EPS ($USD)$0.23 $0.27 $0.30
Adjusted EBITDA ($USD Millions)$217.9 $247.4 $260.0
Adjusted EBITDA Margin (%)37.8% 40.6% 41.2%

Q4 Year-over-Year Comparison

MetricQ4 2023Q4 2024
Revenue ($USD Millions)$630.4 $631.9
GAAP Diluted EPS ($USD)~$0.00 $0.02
Adjusted EPS ($USD)$0.32 $0.30
Adjusted EBITDA ($USD Millions)$260.6 $260.0
Adjusted EBITDA Margin (%)41.3% 41.2%

Segment Breakdown – Q4 2024

SegmentRevenue ($USD Millions)YoY %Adjusted EBITDA ($USD Millions)Margin %
North America$448.6 -1.8% $207.8 46.3%
• Finance & Risk$229.2 -5.1% ——
• Sales & Marketing$219.4 +1.8% ——
International$183.3 +5.6% $58.1 31.7%
• Finance & Risk$126.4 +8.5% ——
• Sales & Marketing$56.9 -0.5% ——

KPIs and Balance Sheet (Year-end 2024)

MetricValue
Cash & Cash Equivalents ($USD Millions)$205.9
Total Debt – Principal ($USD Millions)$3,550.4
Net Leverage (Net Debt/EBITDA)3.6x
Revolving Credit Facility Availability$840.0M
Dividend Declared (Q1 2025)$0.05/share

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Revenue ($USD Billions)FY 2025—$2.44–$2.50 New
Organic Revenue Growth (%)FY 2025—3%–5% New
Adjusted EBITDA ($USD Millions)FY 2025—$955–$985 New
Adjusted EPS ($USD)FY 2025—$1.01–$1.07 New
Adjusted Interest Expense ($USD Millions)FY 2025—~$200 New
D&A (ex-PPA) ($USD Millions)FY 2025—$160–$170 New
Adjusted Effective Tax Rate (%)FY 2025—~22%–23% New
Diluted Shares (Millions)FY 2025—~438 New
Capex – Software ($USD Millions)FY 2025—~$145–$155 New
Capex – PP&E/Software ($USD Millions)FY 2025—~$45 New
FY 2024 Revenue ($USD Billions)FY 2024$2.40–$2.44 at low end Actual $2.382 Met low end
FY 2024 Adjusted EBITDA ($USD Millions)FY 2024$930–$950 Actual $926.6 Slightly below
FY 2024 Adjusted EPS ($USD)FY 2024$1.00–$1.04 Actual $0.98 Slightly below
Quarterly DividendQ1 2025—$0.05/share New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024, Q3 2024)Current Period (Q4 2024)Trend
Strategic Review/ProcessInbound interest noted; evaluation ongoing Outcome expected in Q1; distractions pushed ~$9M deals from Q4 to early 2025 Near-term headwind, resolution pending
Platform Migrations & Contract OptimizationCloud migration progress; modernization; SMB remediation Tens of thousands migrated; point-of-arrival systems (FA/RA, Direct+ API) complete Foundational work done, go-to-market focus
AI/Chat D&B & GenAIEarly adopter rollout; internal pilots; SmartMail/Smart Search ~25 deployments; strong demand; explainability/auditability emphasized Accelerating adoption
Third-Party Risk/Supply Chain & Compliance>20% growth in TPRM; strong demand globally International F&R +8% BFX; robust API/Compliance demand Strong and broad-based
Partnerships/ChannelsLSEG/ICE collaborations; shift toward direct sales Exited two non-strategic partnerships (-$6M Q4; -$14M FY25 rev); EBITDA positive Rationalizing channels
Macro/Sales CyclesDisciplined spend; lengthening cycles; Fed path mattered Continued discipline; strategic-process-related hesitancy; Q1 near low end of range Mixed
Leverage/Interest ManagementNet leverage ~3.5x target; swaps executed Net leverage 3.6x; repricing reduced term loan spread; 90% debt fixed/hedged Improving balance sheet

Management Commentary

  • “We… fell short due to 3 anomalies… pipeline deals… impacting Q4 revenues by $9 million… exit [of] 2 partnerships… impacted revenues in the fourth quarter… by $6 million… timing-related delays in expected usage and deliveries of $3 million and $4 million… expected to flow into the first half of 2025.” — CEO Anthony Jabbour .
  • “We achieved 3% organic revenue growth and expanded our EBITDA margins by 30 basis points… reducing net leverage to 3.6 times.” — CEO Anthony Jabbour .
  • “Fourth quarter adjusted EBITDA… was $260 million… primarily due to… higher cloud infrastructure costs… adjusted net income was $129 million… due to higher tax expenses related to… Pillar 2 and higher depreciation and amortization…” — CFO Bryan Hipsher .
  • “Outcome of the process [is] expected to [conclude] in the first quarter… expect the first quarter to be closer to the low end of our range…” — CFO Bryan Hipsher .
  • “We are delivering a more verticalized go-to-market approach… enabling our generative AI solutions through API and native integrations…” — CEO Anthony Jabbour .

Q&A Highlights

  • Strategic review impact: Clients delayed signing until process outcome; Q1 built toward low end of guidance to reflect timing risks .
  • Partnership exits: Largely complete; revenue headwind of $14M in 2025 but EBITDA positive; rationale included bespoke servicing costs and economics .
  • Demand drivers: Strong demand in TPRM, supply chain, master data; macro uncertainty persists but product pipelines healthy .
  • Revenue mix & ratability: ~75% ratable, ~15% delivery, ~10% usage; migrations shifting more to API/ratable models reducing quarterly choppiness over time .
  • Margin trajectory: Company-level margin expansion targeted (30–50 bps); North America margins pressured by cloud/data investments tied to innovation/data supply chain .

Estimates Context

  • S&P Global consensus for Q4 2024 (Revenue, EPS) was unavailable due to a CIQ mapping issue; comparisons to estimates cannot be provided. Values were unavailable from S&P Global at this time.
  • Near-term estimate implications: Management guided Q1 toward the low end given ongoing process distractions, with midyear stabilization and stronger exit rates; 2025 guide implies organic acceleration and margin expansion vs 2024 actuals, which may prompt revisions to quarterly cadence and full-year models .

Key Takeaways for Investors

  • Expect near-term volatility from strategic review distractions; management anticipates Q1 at low end of the range and sequential improvement through 2025 .
  • International momentum remains robust (F&R +8% BFX in Q4; margin +100 bps full-year), providing diversification amidst North America timing pressures .
  • Channel rationalization and migration to modern platforms should enhance ratability, reduce quarter-to-quarter noise, and support margin gains despite cloud/data cost headwinds .
  • Debt repricing and swap coverage lower interest burden and de-risk the capital structure as net leverage trends toward ~3.25x by year-end 2025 .
  • AI/Chat D&B and vertical go-to-market are emerging growth vectors; early adoption and strong client feedback point to incremental revenue opportunities across F&R and Sales & Marketing .
  • 2025 guide (revenue $2.44–$2.50B, adj. EPS $1.01–$1.07) sets a base for mid-single-digit organic growth and margin expansion; quarterly phasing is important for modeling (Q1 low, Q2–Q3 midpoint, Q4 high end) .
  • Dividend continuity ($0.05/share for Q1 2025) underscores ongoing capital returns while deleveraging progresses .