Dun & Bradstreet reported revenue of US$ 414.2 million, up 8% year over year, before the effect of foreign exchange (up 6% after the effect of foreign exchange); flat organic growth before the effect of foreign exchange; and GAAP revenue up 6% year over year, before the effect of foreign exchange (up 4% after the effect of foreign exchange).
“We continued to make progress executing on our strategy for growth during the third quarter,” said Bob Carrigan, CEO of Dun & Bradstreet. “The integrations of our recent acquisitions are on track. Also, demand for our newer solutions resulted in our strongest growth in deferred revenue in our Americas segment in several years.”
Deferred revenue for the Company as of September 30, 2015 was $580.9 million, up 13%; Americas was $490.9 million, up 20% and NonAmericas was $90.0 million, down 13%. After adjusting for the effect of foreign exchange and the acquisitions of NetProspex and Dun & Bradstreet Credibility Corp., total Company deferred revenue was up 2% compared to last year, Americas was up 4% and Non-Americas was down 6%. Committed sales through Alliance partners would have added two points of growth to total Company and Americas deferred revenue.
Operating income was $106.0 million, up 1% year over year and GAAP operating income of $85.0 million, down 10% year over year; GAAP results were negatively impacted by acquisition-related expenses such as amortization of intangibles;
Free cash flow for the first nine months of 2015 was $240.1 million, up 4% compared to $231.4 million for the first nine months of 2014; Net cash provided by operating activities for the first nine months of 2015 was $283.5 million, up 7% compared to $265.7 million for the first nine months of 2014. See attached Schedules 3, 4, 5, and 6 for additional detail. Schedule 6 provides a reconciliation to GAAP, as well as the definitions of the non-GAAP financial measures that the Company uses to evaluate the business.
Outlook: Full Year 2015 Guidance Dun & Bradstreet today reaffirmed its financial guidance for the full year 2015:
- As Adjusted revenue growth 6% to 9%, before the effect of foreign exchange;
- As Adjusted operating income of flat to 4%;
- As Adjusted diluted EPS of (3%) to 1%; and
- Free cash flow of $255 million to $285 million, which excludes the impact of legacy tax matters and any potential regulatory fines associated with our China operations.