Dun & Bradstreet Holdings, Inc. (NYSE: DNB), a leading global provider of business decisioning data and analytics, today announced unaudited financial results for the first quarter ended March 31, 2021. A reconciliation of U.S. generally accepted accounting principles (“GAAP”) to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Use of Non-GAAP Financial Measures.”

  • GAAP Revenue for the first quarter of 2021 was $504.5 million, an increase of 27.5% as reported and 26.6% on a constant currency basis compared to the first quarter of 2020; which includes the net impact of lower deferred revenue purchase accounting adjustments of $17.2 million.
  • Adjusted Revenue for the first quarter of 2021 was $509.1 million, an increase of 28.6%, or 27.7% on a constant currency basis. Excluding the net impact of the Bisnode acquisition, organic revenue, before the effect of foreign exchange, was $420.4 million, an increase of 5.7% compared to first quarter of 2020, which also included a 4.4 percentage point impact from the net impact of lower deferred revenue purchase accounting adjustments of $17.2 million.
  • Net loss for the first quarter of 2021 was $25.0 million, or diluted loss per share of $0.06, compared to a net income of $41.9 for the prior year quarter, and adjusted net income of $97.8 million, or adjusted diluted earnings per share of $0.23.
  • Adjusted EBITDA for the first quarter of 2021 was $185.6 million, up 37.4% compared to the first quarter of 2020, and adjusted EBITDA margin of 36.5%, an increase of 240 basis points; which includes the net impact of lower deferred revenue purchase accounting adjustments of $17.2 million. Excluding the net impact of the Bisnode acquisition, consolidated adjusted EBITDA margin was 39.1% for the three months ended March 31, 2021, an improvement of 500 basis points compared to the prior year quarter, partially due to the lower net purchase accounting deferred revenue adjustments of $17.2 million which had an impact of 280 basis points on the year over year margin improvement.

“We are off to a strong start as we continue with our transformation and the execution of our near-term and long-term objectives. We finished the first quarter with solid financial results and made significant progress with the integration of Bisnode,” said Anthony Jabbour, Dun & Bradstreet Chief Executive Officer.

Segment Results

North America

For the first quarter of 2021, North America revenue was $339.4 million, a decrease of $2.1 million or 0.6% as reported and 0.7% on a constant currency basis compared to the first quarter of 2020.  North America revenue was negatively impacted by the acquisition of Bisnode with post acquisition sales treated as intercompany revenue. Excluding the positive impact of foreign exchange of $0.4 million and the negative impact of the Bisnode acquisition of $1.3 million, North America organic revenue decreased less than 1%.

  • Finance and Risk revenue for the first quarter of 2021 was $190.5 million, a decrease of $2.3 million or 1.2% as reported and 1.4% on a constant currency basis compared to the first quarter of 2020. Revenues decreased primarily due to lower revenue attributable to the impact of COVID-19, partially offset by new business from our Government solutions and Risk and Compliance solutions.
  • Sales and Marketing revenue for the first quarter of 2021 was $148.9 million, an increase of $0.2 million or less than 1% both as reported and on a constant currency basis compared to the first quarter of 2020. The increase was primarily due to increases in Sales and Marketing solution data sales, partially offset by lower royalty revenues from the Data.com legacy partnership.

North America adjusted EBITDA for the first quarter of 2021 was $151.0 million, an increase of 4.5%, with adjusted EBITDA margin of 44.5%, an increase of 220 basis points both compared to the first quarter of 2020.

International

International revenue for the first quarter of 2021 was $169.9 million, an increase of $98.3 million or 137.3% as reported and 130.9% on a constant currency basis compared to the first quarter of 2020. Excluding the net impact of the Bisnode acquisition, organic revenue before the effect of foreign exchange increased 9%.

  • Finance and Risk revenue for the first quarter of 2021 was $107.4 million, an increase of $48.8 million or 83.2% as reported, and 78.0% on a constant currency basis compared to the first quarter of 2020. Organic revenue before the effect of foreign exchange increased 7%, driven by growth across all markets, including higher revenue due to increased cross border data sales and growth from our Greater China market related to risk and compliance solutions and newly introduced API offerings.
  • Sales and Marketing revenue for the first quarter of 2021 was $62.5 million, an increase of $49.5 million or 381.9% as reported and 369.2% on a constant currency basis compared to the first quarter of 2020. Organic revenue before the effect of foreign exchange increased 18%, attributable to higher revenue from new solution sales in our U.K. market and increased revenue from WWN product royalties.

International adjusted EBITDA increased $27.5 million, or 114.4%, for the three months ended March 31, 2021, compared to the three months ended March 31, 2020. Adjusted EBITDA margin decreased 320 basis points for the three months ended March 31, 2021 compared to the three months ended March 31, 2020. Excluding the net impact of the Bisnode acquisition, adjusted EBITDA margin was 37.8% for the three months ended March 31, 2021, an increase of 430 basis points versus prior year’s margin.

The following is an extract of the Earnings Call Transcript (Source Seeking Alpha) concerning the Bisnode integration: “Regarding the Bisnode transformation, we’re leveraging the same playbook that led to the successful transformation of D&B these past two years and we’re off to a great start coming together as one D&B. In Q1, we completed the first phase of synergy actions immediately following close, principally senior leadership rationalization. Overall, we have actioned approximately $12 million of annualized run rate savings and continue to see significant efficiencies through the combination of our two companies.”

“We also established a new European operating model and expect this to be fully implemented during Q2, delivering a more streamlined and integrated business with corresponding operational synergies, consistent with our business model. We developed a robust product plan for D&B Europe to accelerate sales of our modern global product solutions and support the sundown of legacy Bisnode products. Several product launches are slated for the second half including Finance Analytics, Risk Analytics, D&B Hoovers, and Data Blocks to name a few. The team is also accelerating rollouts of several solutions Bisnode had recently launched prior to the acquisition. Overall, we’re really excited about the progress we’re making and look to capitalize on the strong momentum we have built in our first quarter together.”

“Overall, I’m pleased with our start to 2021 and I’m excited about the progress we continue to make in terms of increasing share of wallet with strategic clients, better serving SMBs and innovative ways, developing new products domestically and localizing them internationally and integrating Bisnode. These, along with many other projects, the teams are working on are laying the foundation for accelerated sustainable growth throughout the remainder of 2021 and into 2022.”

Business Outlook

Dun & Bradstreet is reiterating its previously provided full year 2021 outlook as follows:

  • Adjusted Revenues are expected to be in the range of $2,145 million to $2,175 million.
  • Adjusted EBITDA is expected to be in the range of $840 million to $855 million.
  • Adjusted EPS is expected to be in the range of $1.02 to $1.06.

The foregoing forward-looking statements reflect Dun & Bradstreet’s expectations as of today’s date and Revenue assumes constant foreign currency rates. Dun & Bradstreet does not present a qualitative reconciliation of its forward-looking non-GAAP financial measures to the most directly comparable GAAP measure due to the inherent difficulty, without unreasonable efforts, in forecasting and quantifying with reasonable accuracy significant items required for this reconciliation. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. Dun & Bradstreet does not intend to update its forward-looking statements until its next quarterly results announcement, other than in publicly available statements.: Dun

Source: Dun & Bradstreet Q1 2021 Financial Results