Dun & Bradstreet (DNB) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $576.2 million, up 3.9% year-over-year (4.2% constant currency), with organic revenue growth of 4.3% and strong performance in supply chain risk and master data management solutions.

• Adjusted EBITDA increased 5.7% to $217.9 million, with margin expanding 60 basis points to 37.8%.

• Net loss narrowed to $16.4 million from $19.4 million in Q2 2023; adjusted net income was $99.1 million (adjusted EPS $0.23).

• Initiated a three-year, 10 million share repurchase program, buying 961,360 shares for $9.3 million in Q2, while maintaining a net leverage ratio of 3.7x.

• Management remains focused on organic growth, operational efficiency, deleveraging, and innovation.

Financial highlights

• Q2 2024 GAAP revenue was $576.2 million (+3.9% year-over-year); organic constant currency revenue grew 4.3%.

• Adjusted EBITDA was $217.9 million (37.8% margin), up 5.7% year-over-year; adjusted net income was $99.1 million ($0.23 per share).

• Net loss for the quarter was $16.4 million, improved from $19.4 million in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were $263.2 million; total debt was $3,675.8 million.

• Operating cash flow for the six months was $195.6 million; capital expenditures and software additions totaled $111.5 million.

Outlook and guidance

• Full-year 2024 revenue expected at the low end of $2,400–$2,440 million (3.7%–5.4% growth); organic constant currency revenue growth and adjusted EBITDA also expected at the low end of prior ranges.

• Adjusted EBITDA guidance is $930–$950 million; adjusted EPS guidance maintained at $1.00–$1.04.

• Free cash flow conversion expected to improve as capitalized spend moderates in the second half.

• CapEx expected at $150–$160 million for software and $45 million for property, plant, and equipment in 2024.