Dun & Bradstreet Q2 2022 Revenue Up 3.7%; 6.3% at Constant Currency

Dun & Bradstreet Holdings, Inc. (NYSE: DNB), a leading global provider of business decisioning data and analytics, has announced unaudited financial results for the second quarter ended June 30, 2022. 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 and Adjusted Revenue for the second quarter of 2022 were both $537.3 million. GAAP Revenue and Adjusted Revenue increased 3.1% and 6.3% on a constant currency basis compared to the second quarter of 2021.
Excluding the impact of acquisitions and divestitures, organic revenue was $536.7 million, an increase of 3.7% on a constant currency basis compared to the second quarter of 2021.
GAAP net loss for the second quarter of 2022 was $1.8 million, or less than $0.01 diluted loss per share, compared to net loss of $51.7 million or diluted loss per share of $0.12 for the prior year quarter. Adjusted net income was $107.3 million, or adjusted diluted earnings per share of $0.25, compared to adjusted net income of $108.0 million, or adjusted diluted earnings per share of $0.25 for the prior year quarter.
Adjusted EBITDA for the second quarter of 2022 was $200.0 million, up 0.8% compared to the second quarter of 2021, and adjusted EBITDA margin for the second quarter of 2022 was 37.2%.

“We are pleased with our solid performance in the second quarter, as we continued our positive momentum by delivering organic constant currency revenue growth of 3.7 percent. Our results reflect the disciplined execution of our strategic initiatives and demonstrate the defensible growth nature of our business despite a challenging macro environment,” said Anthony Jabbour, Dun & Bradstreet Chief Executive Officer. “We continue to drive strong results through our transformation and acceleration efforts, and are pleased to be able to share some of those gains with our shareholders through the initiation of a quarterly dividend. We are encouraged with our progress to date, and remain confident in our ability to deliver on our 2022 goals.”

GAAP Revenue and Adjusted Revenue for the six months ended June 30, 2022 were both $1,073.3 million. GAAP Revenue increased 4.7% and 7.1% on a constant currency basis compared to the six months ended June 30, 2021. Adjusted Revenue increased 4.2% and 6.6% on a constant currency basis compared to the six months ended June 30, 2021.
Excluding the impact of acquisitions and divestitures, organic revenue was $1,065.5 million, an increase of 4.1% on a constant currency basis compared to the six months ended June 30, 2021.
GAAP net loss for the six months ended June 30, 2022 was $33.1 million, or diluted loss per share of $0.08, compared to net loss of $76.7 million or diluted loss per share of $0.18 for the prior year period. Adjusted net income was $209.8 million, or adjusted diluted earnings per share of $0.49, compared to adjusted net income of $205.8 million, or adjusted diluted earnings per share of $0.48 for the prior year period.
Adjusted EBITDA for the six months ended June 30, 2022 was $390.1 million, up 1.6% compared to the six months ended June 30, 2021, and adjusted EBITDA margin for the six months ended June 30, 2022 was 36.3%.

Segment Results

North America

For the second quarter of 2022, North America revenue was $381.3 million, an increase of $24.1 million or 6.7% and 6.9% on a constant currency basis compared to the second quarter of 2021. Excluding the impact of acquisitions which contributed revenue of $14.7 million and the negative impact of foreign exchange of $0.4 million, North America organic revenue increased 2.8%.

Finance and Risk revenue for the second quarter of 2022 was $209.5 million, an increase of $9.8 million or 4.9% and 5.0% on a constant currency basis compared to the second quarter of 2021.
Sales and Marketing revenue for the second quarter of 2022 was $171.8 million, an increase of $14.3 million or 9.1% and 9.2% on a constant currency basis compared to the second quarter of 2021.

North America adjusted EBITDA for the second quarter of 2022 was $161.4 million, a decrease of 3.6%, with adjusted EBITDA margin of 42.3%.

For the six months ended June 30, 2022, North America revenue was $748.6 million, an increase of $52.0 million or 7.5% (both after and before the effect of foreign exchange) compared to the six months ended June 30, 2021. Excluding the impact of acquisitions which contributed revenue of $27.6 million and the negative impact of foreign exchange of $0.5 million, North America organic revenue increased 3.6%.

Finance and Risk revenue for the six months ended June 30, 2022 was $411.7 million, an increase of $21.5 million or 5.5% and 5.6% on a constant currency basis compared to the six months ended June 30, 2021.
Sales and Marketing revenue for the six months ended June 30, 2022 was $336.9 million, an increase of $30.5 million or 10.0% (both after and before the effect of foreign exchange) compared to the six months ended June 30, 2021.

North America adjusted EBITDA for the six months ended June 30, 2022 was $314.7 million, a decrease of 1.2%, with adjusted EBITDA margin of 42.0%.

International

International revenue for the second quarter of 2022 was $156.0 million, a decrease of $7.7 million or 4.7% and an increase of 5.0% on a constant currency basis compared to the second quarter of 2021. Excluding the negative impact of foreign exchange of $15.9 million and the impact of divestitures, organic revenue on a constant currency basis increased 5.7%.

Finance and Risk revenue for the second quarter of 2022 was $101.9 million, a decrease of $2.2 million or 2.1% and an increase of 6.8% on a constant currency basis compared to the second quarter of 2021.
Sales and Marketing revenue for the second quarter of 2022 was $54.1 million, a decrease of $5.5 million or 9.3% and an increase of 1.9% on a constant currency basis compared to the second quarter of 2021.

International adjusted EBITDA for the second quarter of 2022 was $46.5 million, an increase of 9.1%, with adjusted EBITDA margin of 29.8%.

International revenue for the six months ended June 30, 2022 was $324.7 million, a decrease of $8.9 million or 2.7% and an increase of 4.6% on a constant currency basis compared to the six months ended June 30, 2021. Excluding the negative impact of foreign exchange of $24.2 million and the impact of divestitures, organic revenue on a constant currency basis increased 5.1%.

Finance and Risk revenue for the six months ended June 30, 2022 was $210.9 million, a decrease of $0.5 million or 0.3% and an increase of 6.3% on a constant currency basis compared to the six months ended June 30, 2021.
Sales and Marketing revenue for the six months ended June 30, 2022 was $113.8 million, a decrease of $8.4 million or 6.8% and an increase of 1.7% on a constant currency basis compared to the six months ended June 30, 2021.

International adjusted EBITDA for the six months ended June 30, 2022 was $101.6 million, an increase of 7.9%, with adjusted EBITDA margin of 31.3%.

Balance Sheet

As of June 30, 2022, we had cash and cash equivalents of $209.6 million and total principal amount of debt of $3,782.7 million. We had $755 million available on our $850 million revolving credit facility as of June 30, 2022.

Business Outlook

Adjusted Revenues before the impact of foreign exchange are still expected to be in the range of 5% to 7%.
Adjusted Revenues after the impact of foreign exchange are expected to be in the range of $2,225 million to $2,270 million, or 2.5% to 4.5%.
- We now expect foreign exchange to be a 2.5% headwind on revenue compared to our previous expectation of a 0.5% headwind as the U.S. dollar has continued to appreciate against the Euro, Swedish Krona and British Pound.
Adjusted EBITDA is still expected to be in the range of $865 million to $905 million.
- While the impact of foreign exchange on revenues is $60 million for the year, the impact to EBITDA is only $9 million due to the favorable offset in expenses.
Adjusted EPS is now expected to be in the range of $1.10 to $1.17.
- Primarily driven by higher expected interest expense on the variable portion of our debt and the impact of foreign exchange.