Dun & Bradstreet (DNB) Q4 2023 earnings summary

Executive summary

• FY23 revenue was $2,314.0 million, up 4.0% reported; organic revenue grew 4.3%. Q4 revenue was $630.4 million, up 6.0% reported and 5.1% in constant currency.

• FY23 adjusted EBITDA rose 3.3% to $892.2 million; adjusted net income was $431.6 million, while GAAP net loss was $47.0 million.

• Management expects revenue growth to accelerate in 2024 and prioritizes continued deleveraging and increased shareholder returns.

Financial highlights

• Q4 GAAP net income was $1.7 million, or diluted EPS below $0.01, versus $22.8 million and $0.05 in Q4'22.

• Q4 adjusted EBITDA increased 4.0% to $260.6 million; adjusted net income was $139.8 million and adjusted diluted EPS was $0.32, versus $131.0 million and $0.30 in Q4'22.

• FY23 GAAP net loss was $47.0 million versus $2.3 million in FY22; GAAP diluted loss per share was $0.11.

• FY23 adjusted net income was $431.6 million and adjusted diluted EPS was $1.00, versus $439.6 million and $1.02 in FY22.

• FY23 revenue was $2,314.0 million versus $2,224.6 million in FY22; adjusted EBITDA margin was 38.6% versus 38.8%.

Outlook and guidance

• FY24 revenue guidance is $2,400–$2,440 million, or ~3.7%–5.4% assuming constant FX rates; organic revenue growth guidance is 4.1%–5.1%.

• FY24 adjusted EBITDA guidance is $930–$950 million; adjusted diluted EPS guidance is $1.00–$1.04.

• Guidance assumes adjusted interest expense of ~$220 million, an adjusted effective tax rate of 22%–23%, and ~433 million diluted shares.

• FY24 capex guidance is $150–$160 million for internally developed software and $45 million for property, plant and equipment and purchased software.

• Management expects improving profitability and cash flows to support further deleveraging despite a challenging macro environment.