As reported in an early post here are further details on D&B’s third Quarter Results:

North America’s third quarter core revenue was up 2% after a flat first half, in line with expectations.  

Risk Management Solutions, representing 59% of North America revenue was down 1%, consistent with last quarter and in line with expectations.  Our flagship risk product DNBi was up 1% in the quarter.   Growth in DNBi was offset by lower product revenue. We continue to see softness in product revenue as customers remain cautious with spending the current economic environment. These results were in line with our expectations, and we continue to expect RMS to be about flat for full year 2011.

Sales and marketing, which represents 31% of North America revenue, grew 4%, up from 1% growth last quarter.  The strong performance was driven by growth in value-added solutions, primarily Optimizer, and offset by continued declines from our traditional products.  Traditional S&MS, as expected, was down 23% in the quarter reflecting the sunset of our legacy Lists and Labels products.  The value added business was up a robust 22% in the quarter due to continued momentum in our flagship Optimizer product.  Optimizer had been a real success for us and has grown in double-digit rate over the last 2 years and is now a $200 million product line.

Optimizer offers a compelling value proposition to D&B’s largest customers.  Optimizer helps very large customers update, correct and maintain their data to ensure that they have the most complete, accurate and actionable view of their customers and prospects.

CRM is an area of focus, and management continues to believe that DaaS will become a $100 million business over the next 3 or so years. D&B expanded its relationship with Salesforce.com to become the exclusive provider of company information for their CRM product.

Salesforce will be selling D&B data to their customers in the first half of 2012 on a revenue sharing basis.  D&B also reached agreements with 3 other major CRM providers to make D&B360 available on their platforms.  Microsoft Dynamics were signed last quarter, and D&B has just announced agreements with Oracle and SAP.  These alliances will ensure our data is pervasive across the largest CRM systems that cover over 60% of the U.S. market.  By selling D&B data on these CRM platforms,  will raise awareness of the D&B brand,  and increases opportunities for D&B’s sales force to cross sell into this new customer base.

Internet Solutions, representing 10% of North America revenue, grew 8% in the third quarter, up from 6% growth in the second quarter.  By re-platforming Hoover’s early last year, and ramping up innovation during the year, revenue has increased every quarter since mid 2010 as customers recognize the improved value proposition.

International revenue for the third quarter increased 28%, up from 24% in the second quarter.  Organic revenue growth improved to 5% after 2 consecutive quarters of flat top line performance.  Europe and Other, representing 49% of total International revenue, grew at a better-than-expected 5% due to the early completion of several customer projects in the U.K. that were previously planned for the fourth quarter.

Asia Pacific, representing 51% of the total International revenue grew 65% during the quarter, driven by the acquisition of D&B Australia. Organically, Asia Pacific was up 6%, which was primarily due to double-digit growth in China, partially offset by continued weakness in Japan.  

Turning to profitability, total company operating income increased 14%, which was ahead of expectations.  North America was up 5% due to the benefit of our financial flexibility actions and improving revenue performance.  International increased by 41%, benefiting primarily from stronger top line growth, as well as the timing of investment activity and the acquisition costs for our D&B Australia which were in the third quarter of last year.

Source:  Seeking Alpha Transcript Q3 2011