Dun & Bradstreet Reports Q1 2023 Revenue Growth of 2.9% (constant currency)

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, 2023. 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.”

Revenue for the first quarter of 2023 was $540.4 million, an increase of 0.8% and 2.9% on a constant currency basis compared to the first quarter of 2022.

Organic revenue increased 3.2% on a constant currency basis compared to the first quarter of 2022.

GAAP net loss for the first quarter of 2023 was $33.7 million, or loss per share of $0.08, compared to net loss of $31.3 million, or loss per share of $0.07 for the prior year quarter. Adjusted net income was $80.5 million, or adjusted diluted earnings per share of $0.19, compared to adjusted net income of $94.1 million, or adjusted diluted earnings per share of $0.22 for the prior year quarter.

Adjusted EBITDA for the first quarter of 2023 was $190.0 million, flat compared to the first quarter of 2022, and adjusted EBITDA margin for the first quarter of 2023 was 35.2%.

“We are pleased with our strong start to the year, as we delivered organic revenue growth of 3.2 percent during the first quarter,” said Anthony Jabbour, Dun & Bradstreet Chief Executive Officer. “Despite a challenging macro-economic backdrop, our first quarter results demonstrate the continued progress we are making against our strategic priorities and the resiliency of our business model in both North America and internationally. We are encouraged with our progress to date, and we remain confident in our ability to deliver on our fiscal year 2023 goals and drive long-term shareholder value.”

Segment Results

North America

For the first quarter of 2023, North America revenue was $374.7 million, an increase of $7.4 million or 2.0% and 2.2% on a constant currency basis compared to the first quarter of 2022.

Finance and Risk revenue for the first quarter of 2023 was $201.2 million, a decrease of $1.0 million or 0.5% and 0.3% on a constant currency basis compared to the first quarter of 2022. This included a $5.5 million negative impact from the expiration of the GSA contract in April of 2022.

Sales and Marketing revenue for the first quarter of 2023 was $173.5 million, an increase of $8.4 million or 5.1% and 5.2% on a constant currency basis compared to the first quarter of 2022.

North America adjusted EBITDA for the first quarter of 2023 was $150.5 million, a decrease of 1.8%, with adjusted EBITDA margin of 40.2%.

International

International revenue for the first quarter of 2023 was $165.7 million, a decrease of $3.0 million or 1.8% and an increase of 4.6% on a constant currency basis compared to the first quarter of 2022. Excluding the negative impact of foreign exchange of $10.1 million and the impact of the divestiture, organic revenue on a constant currency basis increased 5.5%.

Finance and Risk revenue for the first quarter of 2023 was $110.8 million, an increase of $1.8 million or 1.6% and 7.5% on a constant currency basis compared to the first quarter of 2022.

Sales and Marketing revenue for the first quarter of 2023 was $54.9 million, a decrease of $4.8 million or 8.0% and 0.7% on a constant currency basis compared to the first quarter of 2022. Excluding the negative impact of the divestiture of the B2C business in Germany during the second quarter of 2022, Sales and Marketing revenue increased 1.9%.

International adjusted EBITDA for the first quarter of 2023 was $55.6 million, an increase of 1.0%, with adjusted EBITDA margin of 33.6%.

Balance Sheet

As of March 31, 2023, we had cash and cash equivalents of $204.1 million and total principal amount of debt of $3,643.2 million. We had $795.0 million available on our $850 million revolving credit facility as of March 31, 2023.

Business Outlook