Dun & Bradstreet Holdings Inc (DNB) Reports Growth Amidst Challenges in 2023
Revenue Growth: Full-year revenue increased by 4.0% to $2,314.0 million in 2023.
Adjusted EBITDA: Adjusted EBITDA rose by 3.3% to $892.2 million for the year.
Net Income/Loss: GAAP net loss for the year was $47.0 million, while adjusted net income was $431.6 million.
Earnings Per Share: Adjusted diluted earnings per share (EPS) for the year stood at $1.00.
Balance Sheet: Cash and cash equivalents totaled $188.1 million, with a total debt principal of $3,588.6 million as of December 31, 2023.
Segment Performance: Both North America and International segments reported revenue growth for the fourth quarter and full year.
Business Outlook: Dun & Bradstreet anticipates continued revenue growth and improved profitability in 2024.
On February 15, 2024, Dun & Bradstreet Holdings Inc (NYSE:DNB), a leading global provider of business decisioning data and analytics, released its 8-K filing, detailing its financial results for the fourth quarter and full year ended December 31, 2023. The company operates in two segments: North America and International, with a strong presence in data, analytics, and business insights. Despite a challenging macro environment, the company reported a 4.0% increase in full-year revenue and a 3.3% rise in adjusted EBITDA.
Financial Highlights and Challenges
Dun & Bradstreet's revenue for the fourth quarter of 2023 was $630.4 million, marking a 6.0% increase from the same period in the previous year. However, the GAAP net income for the quarter was a modest $1.7 million, a significant decrease from the $22.8 million reported in the fourth quarter of 2022. The adjusted net income for the quarter was healthier at $139.8 million. For the full year, the company experienced a GAAP net loss of $47.0 million, compared to a net loss of $2.3 million in the previous year. The adjusted net income for the year was $431.6 million, with an adjusted diluted EPS of $1.00.
Segment Performance and Balance Sheet Strength
The North America segment reported a revenue of $456.8 million for the fourth quarter, a 5.0% increase year-over-year. The International segment also saw growth, with fourth-quarter revenue reaching $173.6 million, an 8.4% increase from the previous year. As of December 31, 2023, Dun & Bradstreet had cash and cash equivalents of $188.1 million and a total principal amount of debt of $3,588.6 million. The company had $825.0 million available on its $850 million revolving credit facility.
Outlook and Management Commentary
CEO Anthony Jabbour expressed confidence in the company's ability to navigate a challenging macro environment, stating:
"We closed 2023 on a high note, delivering organic revenue growth of 5.1% during the fourth quarter with balanced performance across both our North America and International business segments... We are well-positioned to capture the significant growth opportunities in front of us and we expect to continue to accelerate revenue growth in 2024 despite a challenging macro environment."
The company's business outlook for 2024 anticipates revenue in the range of $2,400 million to $2,440 million, with organic revenue growth expected to be between 4.1% and 5.1%. Adjusted EBITDA is projected to be between $930 million and $950 million, with adjusted EPS in the range of $1.00 to $1.04.
Conclusion
Dun & Bradstreet's 2023 performance demonstrates resilience and growth potential, with a strong balance sheet and strategic focus on capturing growth opportunities. The company's commitment to improving profitability and cash flows while continuing to deleverage its balance sheet bodes well for its future financial health and ability to deliver increased shareholder returns.
For more detailed information, investors and stakeholders are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Dun & Bradstreet Holdings Inc for further details.
This article first appeared on GuruFocus.
