In its 2010 earnings report D&B stated that it closed the year with 188 million records on hand. It has now 25 million trade scores and 17 million linked records. It increased financial statement coverage from 75,000 to 500,000, which appears to be a critical need for customers of DNBi. It has in fact exceeded its goal of 175 million which had been announced at its Investor Day in May of 2010.
D&B’s CEO Sara Mathew sees three critical tech-enable trends that create a unique window of opportunity to strengthen D&B’s competitive advantage and provide a foundation for sustainable value creation: “First, the explosion in available data allows D&B to create valuable insights in new and different ways. Second, the concept of co-creation to generate insight has moved MainStreet and is now a viable business model. What started with Wikipedia several years ago is now an integral part of mainstream America as companies leverage communities to extend their reach to all business problems and lower the cost of serving customers. Third, technological advances are allowing companies to efficiently disaggregate products into bite-sized service components, leveraging the cloud infrastructure to access new markets and provide solutions for real-world problems.”
On infrastructure development D&B relocated its Data Center from New Jersey to Acxiom facility in Conway, Arkansas. This allows D&B to take advantage of Acxiom’s grid technology and lower cost platforms. D&B opened a brand new application development center in Ireland and introduced two brand-new products into the market. A third product was launched in late January. D&B appears to be acutely aware of Experian’s competitive moves in launching a web based risk management platform, therefore it is also ramping up the functionalities of DNBi.
Core revenue for the fourth quarter of 2010 was $481.7 million, up 7% from the prior year similar period both before and after the effect of foreign exchange. Deferred revenue was $578.1 million, up 7% from the prior year similar period, continuing the positive trajectory that began in the fourth quarter of 2009.
North America core revenue for the fourth quarter of 2010 was $351.0 million, up 2% from the prior year similar period both before and after the effect of foreign exchange.
International core and total revenue for the fourth quarter of 2010 was $130.7 million, up 24% (acquisition activity contributed approximately 20 percentage points of the total growth) from the prior year similar period before the effect of foreign exchange (up 23% after the effect of foreign exchange) and includes our results from the recent acquisition of Dun & Bradstreet Australia Holdings Limited (“D&B Australia”) that occurred on August 31, 2010.
D&B’s total revenue for the full year 2010 was $1,676.6 million. This result is down 1% as compared to the prior year, both before and after the effect of foreign exchange, which includes the results of both the North American Self Awareness Solutions business that was divested in the third quarter of 2010 and the domestic portion of our Italian operation that was divested during the second quarter of 2009.
Operating income before non-core gains and charges for the full year 2010 was $480.8 million, down 2% from the prior year similar period. On a GAAP basis, operating income for the full year 2010 was $409.1 million, down 12% from the prior year similar period.
Outlook for 2011: Core revenue growth of 5% to 8%, before the effect of foreign exchange; operating income growth of 2% to 6%, before non-core gains and charges; diluted EPS growth of 6% to 10%, before non-core gains and charges; and free cash flow of $240 million to $270 million, which excludes the impact of legacy tax matters but includes the Strategic Technology Investment. Source: D&B Earnings Release