Second Quarter 2018 Highlights

Revenue: GAAP revenue of $439.6 million, up 8% year over year both after and before the effect of foreign exchange.   As Adjusted revenue of $394.4 million, down 3% year over year after the effect of foreign exchange (down 4% before the effect of foreign exchange).  Organic revenue decreased 4% year over year. As previously mentioned, timing shifts related to several large contracts impacted growth by 3%.

Operating Income: GAAP operating income of $112.2 million, up 46% year over year.  As Adjusted operating income of $80.4 million, down 11% year over year. The decline in operating income was due to the timing shifts of several large contracts referenced above. Diluted Earnings per Share (“EPS”):

GAAP diluted EPS of $2.50 compared to $1.22 for the second quarter of 2017. As Adjusted diluted EPS of $1.40, flat year over year. GAAP results are based on Accounting Standards Codification ASC 606, Revenue from Contracts with Customers (“ASC 606”) basis for 2018 and on Accounting Standards Codification ASC 605, Revenue Recognition (“ASC 605”) basis for 2017.

Deferred revenue for the Company as of June 30, 2018 was $592.1 million (based on ASC 606 standards). Under ASC 605 standards, deferred revenue as of June 30, 2018 was $645.3 million, flat year over year;

Americas was $571.9 million, flat year over year and Non-Americas was $73.4 million, flat year over year. After adjusting for the effect of foreign exchange and acquisitions and dispositions, total Company deferred revenue (based on ASC 605 standards) was down 1%, Americas was flat and Non-Americas was down 3%, each as compared to June 30, 2017.

Second Quarter 2018 Segment Results

Americas:  GAAP revenue of $367.9 million was up 10% year over year both after and before the effect of foreign exchange;  As Adjusted revenue of $320.9 million was down 5% year over year both after and before the effect of foreign exchange;

GAAP operating income of $126.3 million was up 62% year over year; As Adjusted operating income of $80.7 million was down 12% year over year.

Non-Americas:  GAAP revenue of $71.7 million was down 1% year over year after the effect of foreign exchange (down 4% before the effect of foreign exchange); As Adjusted revenue of $73.5 million was up 3% year over year after the effect of foreign exchange (down 1% before the effect of foreign exchange);

GAAP operating income of $18.4 million was down 9% year over year; As Adjusted operating income of $20.7 million was up 3% year over year. See attached Schedules 4 and 5 for additional detail.

Additional financial information can be found within the Company’s posted financial model, available at http://investor.dnb.com/financial-information/financial-model.

The management did not comment on the Q2 results in the press release and the previously scheduled earnings conference call was cancelled.  Dun & Bradstreet also announced same day that it entered into a definitive agreement to be acquired by an affiliate of CC Capital.

Source:  Dun & Bradstreet Earnings Release