Dun & Bradstreet Holdings, Inc. 10-K Analysis & Summary – 2/21/2025

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Dun & Bradstreet Holdings, Inc.

10-K

Annual report

Filing date:

02/21/2025

TLDR:

Dun & Bradstreet reported increased revenue and improved operating income, but still reported a net loss. Key risks include data security, regulatory compliance, and macroeconomic conditions, while opportunities exist in client relationships, innovation, and international expansion.

ELI5:

Dun & Bradstreet, a company that provides data for businesses, made more money than last year, but still lost money overall. They face risks like keeping their data safe and following government rules, but they have opportunities to grow by selling more to their current customers and expanding to other countries.

Accession #:

0001799208-25-000012

Published on

March 16, 2025

Analyst Summary

Total revenue increased by 2.9% to $2,381.7 million.
Operating income increased by 38.9% to $194.8 million.
Net loss attributable to Dun & Bradstreet Holdings, Inc. was $28.6 million.
Adjusted EBITDA increased by 3.9% to $926.6 million.
Gross Profit Margin: 62.2%
Operating Profit Margin: 8.2%
Net Profit Margin: -1.0%
Current Ratio: 0.65
Debt-to-Equity Ratio: 1.07
Asset Turnover: 0.27

Opportunities and Risks

Macroeconomic Conditions: Unfavorable global economic conditions, geopolitical events, and fluctuations in interest rates and inflation could negatively impact the business.
Competition: The company faces significant competition in both Finance & Risk and Sales & Marketing solutions.
Data Security and Integrity: Cybersecurity incidents and data breaches could result in material loss of business and reputational harm.
Regulatory Compliance: The company is subject to an increasing number of governmental regulations, including a 20-year consent order with the FTC.
Reliance on Key Relationships: The company relies on relationships with key clients, business partners, and government contracts.
Intellectual Property: Inability to protect intellectual property or claims of infringement could harm the business.
AI and Machine Learning: Risks associated with the use of AI systems and machine learning models, including bias, discrimination, and regulatory scrutiny.
Enhanced Client Relationships: Significant opportunity to grow through cross-selling to existing clients.
New Client Acquisition: Opportunity to win new clients in targeted markets, particularly in the SMB segment.
Innovative Solutions: Potential to develop differentiated solutions using the company’s Data Cloud and AI capabilities.
International Expansion: Significant growth potential in under-penetrated international markets.
Strategic Acquisitions: Opportunity to expand footprint and strengthen solutions through strategic acquisitions.

Potential Implications

Company Performance

Focus on value creation, enhanced technology and data, solution innovation, and a client-centric go-to-market strategy.
Emphasis on cross-selling to existing clients and winning new clients in targeted markets.
Investment in innovative solutions, including AI and machine learning, to expand its addressable market.
Expansion in international markets as a key growth driver.

Stock Price

Investors should closely monitor the company’s progress in addressing regulatory challenges and managing its debt obligations.

SEC Filing Report: Dun & Bradstreet Holdings, Inc. (10-K)

Executive Summary

This report analyzes Dun & Bradstreet Holdings, Inc.’s 10-K filing for the fiscal year ended December 31, 2024. The company, a leading global provider of business decisioning data and analytics, reported increased revenue and improved operating income compared to the previous year. However, it still reported a net loss. Key areas of focus include the company’s growth strategy, financial performance, and risk factors. The company’s reliance on data security and integrity, and the increasing regulatory environment are key risks. Overall, the company appears to be executing its strategic plan, but faces challenges related to macroeconomic conditions and regulatory compliance. A HOLD rating is recommended, pending further evidence of sustained profitability.

Company Overview

Dun & Bradstreet (D&B) is a global provider of business decisioning data and analytics. The company’s core business revolves around its Data Cloud, containing information on nearly 600 million organizations. D&B offers solutions in Finance & Risk (credit decisioning, supplier risk management) and Sales & Marketing (lead generation, data management). The company operates in North America, Europe, Greater China, and India, with a global presence through its Worldwide Network alliances. Recent developments include debt refinancing, a stock repurchase program, and the purchase of a non-controlling equity interest in its China operations.

Detailed Analysis

Financial Statement Analysis

Revenue

Total revenue increased by 2.9% to $2,381.7 million in 2024. Organic revenue growth, excluding the impact of foreign exchange and divestitures, was also 3.0%.

Segment	2024 Revenue (Millions)	2023 Revenue (Millions)	% Change
North America	$1,672.3	$1,644.5	1.7%
International	$709.4	$669.5	6.0%

North America’s growth was driven by Sales & Marketing solutions, while International’s growth was fueled by Finance & Risk solutions.

Profitability

Operating income improved significantly, increasing by 38.9% to $194.8 million. However, the company still reported a net loss attributable to Dun & Bradstreet Holdings, Inc. of $28.6 million.

Metric	2024	2023	Change
Operating Income (Millions)	$194.8	$140.3	38.9%
Net Loss (Millions)	$28.6	$47.0	N/A (Improvement)
Adjusted EBITDA (Millions)	$926.6	$892.2	3.9%
Adjusted EBITDA Margin	38.9%	38.6%	30 bps

Adjusted EBITDA and Adjusted EBITDA margin also improved, indicating better operational efficiency.

Liquidity and Capital Resources

The company has access to a revolving credit facility and generates cash from operations. Management believes these sources are sufficient to meet short-term needs. However, the company has significant debt obligations.

Key Ratios

Key ratios were not explicitly provided in the extracted text, but could be calculated from the financial statements if available. Important ratios to consider would include debt-to-equity, current ratio, and various profitability ratios (e.g., gross margin, operating margin, net profit margin).

Management’s Discussion and Analysis (MD&A) Insights

Management highlights the company’s transformation strategy, focusing on value creation, enhanced technology and data, solution innovation, and a client-centric go-to-market strategy.
The MD&A emphasizes the company’s focus on cross-selling to existing clients and winning new clients in targeted markets.
The company is investing in innovative solutions, including AI and machine learning, to expand its addressable market.
Expansion in international markets is a key growth driver.

Risk and Opportunity Assessment

Risks

Macroeconomic Conditions: Unfavorable global economic conditions, geopolitical events, and fluctuations in interest rates and inflation could negatively impact the business.
Competition: The company faces significant competition in both Finance & Risk and Sales & Marketing solutions.
Data Security and Integrity: Cybersecurity incidents and data breaches could result in material loss of business and reputational harm.
Regulatory Compliance: The company is subject to an increasing number of governmental regulations, including a 20-year consent order with the FTC.
Reliance on Key Relationships: The company relies on relationships with key clients, business partners, and government contracts.
Intellectual Property: Inability to protect intellectual property or claims of infringement could harm the business.
AI and Machine Learning: Risks associated with the use of AI systems and machine learning models, including bias, discrimination, and regulatory scrutiny.

Opportunities

Enhanced Client Relationships: Significant opportunity to grow through cross-selling to existing clients.
New Client Acquisition: Opportunity to win new clients in targeted markets, particularly in the SMB segment.
Innovative Solutions: Potential to develop differentiated solutions using the company’s Data Cloud and AI capabilities.
International Expansion: Significant growth potential in under-penetrated international markets.
Strategic Acquisitions: Opportunity to expand footprint and strengthen solutions through strategic acquisitions.

Red Flags and Uncommon Metrics

The company is discussing a potential resolution with the FTC regarding alleged violations of the Consent Order.
The company is subject to an Order under Section 6(b) of the FTC Act, which authorizes the FTC to conduct wide-ranging studies that do not have a specific law enforcement purpose, in connection with the FTC’s inquiry into the small business credit reporting industry.

Conclusion and Actionable Insights

Dun & Bradstreet is a well-established company with a strong market position and a clear growth strategy. The company’s financial performance is improving, but it still faces challenges related to profitability and debt management. The increasing regulatory environment and the need to protect data security and integrity are key risks. The company’s focus on innovation and international expansion presents significant opportunities. A HOLD rating is recommended, pending further evidence of sustained profitability and successful execution of its strategic initiatives. Investors should closely monitor the company’s progress in addressing regulatory challenges and managing its debt obligations.

Financial Analysis of Dun & Bradstreet Holdings, Inc. (DNB)

1. Financial Ratio and Metric Analysis

Profitability

Gross Profit Margin:
- Ratio/Metric: ($2,381.7 – $899.7) / $2,381.7 = 62.2%
- Trend: (($2,381.7 – $899.7) / $2,381.7) – (($2,314.0 – $861.8) / $2,314.0)) / (($2,314.0 – $861.8) / $2,314.0) = 1.4%
Operating Profit Margin:
- Ratio/Metric: $194.8 / $2,381.7 = 8.2%
- Trend: ($194.8 / $2,381.7) – ($140.3 / $2,314.0)) / ($140.3 / $2,314.0) = 38.8%
Net Profit Margin:
- Ratio/Metric: -$24.5 / $2,381.7 = -1.0%
- Trend: ((-$24.5 / $2,381.7) – (-$43.7 / $2,314.0)) / (-$43.7 / $2,314.0) = -37.5%
Return on Assets (ROA):
- Ratio/Metric: -$24.5 / $8,755.7 = -0.3%
Return on Equity (ROE):
- Ratio/Metric: -$24.5 / $3,314.4 = -0.7%
Earnings Per Share (EPS) – Basic and Diluted:
- Ratio/Metric: -$28.6 / 432.4 = -$0.07
- Trend: ((-$0.07) – (-$0.11)) / (-$0.11) = -36.4%

Liquidity

Current Ratio:
- Ratio/Metric: $650.4 / $1,007.2 = 0.65
- Trend: ($650.4 / $1,007.2) – ($656.3 / $1,042.4)) / ($656.3 / $1,042.4) = 2.0%
Quick Ratio (Acid-Test Ratio):
- Ratio/Metric: ($650.4 – $239.6) / $1,007.2 = 0.41
- Trend: (($650.4 – $239.6) / $1,007.2) – (($656.3 – $258.0) / $1,042.4)) / (($656.3 – $258.0) / $1,042.4) = 1.7%
Cash Ratio:
- Ratio/Metric: $205.9 / $1,007.2 = 0.20
- Trend: ($205.9 / $1,007.2) – ($188.1 / $1,042.4)) / ($188.1 / $1,042.4) = 13.0%

Solvency/Leverage

Debt-to-Equity Ratio:
- Ratio/Metric: $3,528.7 / $3,298.5 = 1.07
- Trend: ($3,528.7 / $3,298.5) – ($3,545.2 / $3,419.1)) / ($3,545.2 / $3,419.1) = 2.7%
Debt-to-Assets Ratio:
- Ratio/Metric: $3,528.7 / $8,755.7 = 0.40
- Trend: ($3,528.7 / $8,755.7) – ($3,545.2 / $9,135.9)) / ($3,545.2 / $9,135.9) = 1.1%
Interest Coverage Ratio (Times Interest Earned):
- Ratio/Metric: $194.8 / $263.7 = 0.74
- Trend: ($194.8 / $263.7) – ($140.3 / $221.9)) / ($140.3 / $221.9) = 17.9%

Activity/Efficiency

Asset Turnover:
- Ratio/Metric: $2,381.7 / $8,755.7 = 0.27
- Trend: ($2,381.7 / $8,755.7) – ($2,314.0 / $9,135.9)) / ($2,314.0 / $9,135.9) = 6.0%

Valuation

Price-to-Earnings Ratio (P/E):
- Ratio/Metric: $9.43 / (-$0.07) = -134.71
- Trend: ((-134.71) – (-85.73)) / (-85.73) = -57.1%
Price-to-Book Ratio (P/B):
- Ratio/Metric: $9.43 / ($3,298.5 / 441.55) = 1.26
- Trend: (1.26 – 1.20) / 1.20 = 5.0%
Price-to-Sales Ratio (P/S):
- Ratio/Metric: (441.55 * $9.43) / $2,381.7 = 1.75
- Trend: (1.75 – 1.79) / 1.79 = -2.2%
Enterprise Value to EBITDA (EV/EBITDA):
- Ratio/Metric: (($9.43 * 441.55) + $3,528.7 – $205.9) / $771.7 = 6.4
- Trend: (6.4 – 6.6) / 6.6 = -3.0%

Growth Rates

Revenue Growth:
- Ratio/Metric: ($2,381.7 – $2,314.0) / $2,314.0 = 2.9%
Net Income Growth:
- Ratio/Metric: (-$24.5 – (-$43.7)) / (-$43.7) = -43.9%
EPS Growth:
- Ratio/Metric: (-$0.07 – (-$0.11)) / (-$0.11) = -36.4%

Other Relevant Metrics

Adjusted EBITDA: The company presents Adjusted EBITDA as a non-GAAP metric, which is calculated by adding back items such as depreciation and amortization, interest expense, income taxes, equity-based compensation, restructuring charges, and other adjustments to net income (loss). This metric is used by management to assess the company’s operating performance. Adjusted EBITDA increased from $892.2 million in 2023 to $926.6 million in 2024, a 3.9% increase.
Adjusted Net Income: The company presents Adjusted Net Income as a non-GAAP metric, which is calculated by adding back items such as incremental amortization of intangible assets resulting from the application of purchase accounting, equity-based compensation, restructuring charges, and other adjustments to net income (loss) attributable to Dun & Bradstreet Holdings, Inc. Adjusted Net Income decreased from $431.6 million in 2023 to $429.1 million in 2024, a -0.6% decrease.

2. Commentary

Dun & Bradstreet’s financial performance in 2024 presents a mixed picture. While revenue increased slightly, the company reported a net loss, and key profitability metrics such as net profit margin and ROE were negative. Adjusted EBITDA showed positive growth, indicating improved operational efficiency when excluding certain non-cash and non-recurring items. The company’s liquidity position, as indicated by the current and quick ratios, remains tight.