Q1 2023 Dun & Bradstreet Holdings Inc Earnings Call

May 4, 2023

Question and answer session.

At any time during this call you require immediate assistance. Please press star zero for the operator. This call is being recorded on Thursday may four 2023.

I would now like to turn the conference over to Shawn Anthony VP Corporate F. P. N. A please go ahead.

Thank you good morning, everyone and thank you for joining us for denim Bradstreet's financial results conference call for the first quarter of 2023.

On the call today, we have Dun <unk> Bradstreet, CEO, Anthony Jabbour, and CFO Bryan Hipsher.

Before we begin allow me to provide a disclaimer regarding forward looking statements this call, including the Q&A portion of the call May include forward looking statements related to the expected future results for our company and are therefore forward looking statements.

Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties. The forward looking statements are subject to are described in our earnings release and other SEC filings.

Today's remarks will also include references to non-GAAP financial measures additional information, including a reconciliation between non-GAAP financial information to the GAAP financial information is provided in the press release and supplemental slide presentation.

This conference call will be available for replay via denim Bradstreet's Investor Relations website at Investor <unk> Dnb Dot com.

With that I'll now turn the call over to Anthony.

Thank you Sean good morning, everyone and thank you for joining us for our first quarter 2023 earnings call on.

On today's call I'll start with a brief overview of our first quarter results followed by an update on our operational activities and progress towards our strategic initiatives.

After that I'll pass the call over to Brian for an in depth review of our results and to discuss our expectations for the remainder of 2023. We'll then open up the call for Q&A and I'll finish up with a few closing comments.

With that let's get started.

Our first quarter results demonstrate the continued progress we are making and the strength and resiliency of our business model throughout the world, we exceeded our communicated expectations by delivering three 2% revenue growth on an organic constant currency basis as customers and prospects continue to rely on.

<unk> mission critical solutions to help them navigate this challenging business environment.

Beginning with North America, we grew just over 2%. Despite this being the final quarter that included the impact from three full months of the GSA contract exploration.

Excluding the impact of the GSA North America revenues grew 4% with solid performance in both our finance and risk and sales and marketing solutions.

On the financial risk side.

Our risk solutions drove high teens growth as companies continue to look at ways of driving a more real time, AI driven approach to assessing and monitoring the third party and supply chain exposure.

As we continue to expand the magnitude of our existing data and add new and alternative datasets to further extend our offerings into areas such as fraud, cyber security climate and ESG, we're positioning ourselves to land and expand through a variety of use cases within clients' risk compliance and.

Departments.

For example, we recently expanded our ESG rankings data coverage across public and private companies from 42 million to $74 million and 185 countries.

<unk> the latest sustainability accounting board standards.

This expansion further strengthens dun <unk> bradstreet's position in the ESG space as organizations seek to make sustainable decisions with confidence.

We are also bringing in new real time financial datasets into our data cloud and example of this is payments transaction data that allows us to blend near term transactional behavior with longer term trends, creating a unique perspective on the financial profile of an entity in ways that have never been.

Done before.

These new analytics are enhancing our proprietary data cloud and through the use of our latest artificial intelligence driven algorithms. We are further extending our leadership position in the decisioning of commercial credit and embedding ourselves even more deeply into the most mission critical finance Decisioning workflows.

Finance solutions continue to have strong retention rates and is benefiting from the impact of price increases as we look to optimize our contracting and pricing structures.

Overall, our finance and risk solutions in North America grew two 5%, excluding the GSA impact, which is right in line with our expectations for the start of the year.

Within North American sales and marketing we are seeing continued progress in our financial results from the ongoing transformation and investments in the solution set.

We delivered over 5% organic growth in the quarter, driven by our master data management and digital marketing solutions.

Improvements to solutions like Hoover's, driven retention rates from the seventies to nearly 90% turning them from headwinds to <unk> and are allowing the benefits of our transformation efforts to be realized in our financial results.

As we continue to resolve a shrinking group of legacy underperforming assets in our portfolio. It allows us to show the true strength, we have been building in our sales and marketing suite.

We also continue to innovate new solutions, which further support our now 20% vitality index in North America.

In the first quarter, we launched the Midmarket version of Dnb connect that includes a self guided user interface, which brings most of the benefits of master data management to medium and smaller sized companies with limited tech complexity.

Dnb compliance intelligence engine, which created smart workflow integration to seamlessly onboard and monitor third parties from cradle to grave and we are launching our SMB navigate portal, which builds upon the foundational improvements to our SMB ecosystem such as the website consolidate.

<unk> and shopping card enhancements, we have made over the past few quarters.

We continue to move forward with supporting small business and their efforts to thrive during these tough times.

Whether it be our partnership with <unk>, allowing smbs access to capital and a quick and efficient manner.

Improve the visibility into their commercial credit profile through connectivity and to plan.

Our latest partnership with accelerate tax that helps small business garner tax credits and incentives we are committed to working hard to assist small businesses.

Some big businesses.

On the North American sales front, we saw examples of our momentum in both finance and risk and sales and marketing on.

On the financing risk side, we had a strong quarter of expanded renewals and new solutions Upsells.

One of our largest and most tenured customers and American based multinational technology company signed another multiyear renewal.

This company is a great example of a sophisticated global firm that utilize our dun's and higher key master data management capabilities as a Keystone further finance and risk and sales and marketing solutions throughout their organization.

While other.

Providers attempted to compete based solely on price or differentiated solutions data and analytics clearly one out.

We saw a similar outcome with one of the largest automotive manufacturers in the world like.

Like many auto manufacturers they face the need to invest significant capital until the electronic vehicle market, while simultaneously balancing the financial challenges arising from a global economic downturn.

With a mandate to reduce third party spend their procurement organization explored ways to reduce their spend with us just as they would with the rest of their vendor relationships.

However, due to the criticality and value we deliver they ultimately concluded that these scoping services would have a direct negative impact on their operations and ultimately decided to maintain and expand the relationship.

Through our master data management capabilities powered by the Dun's number we allow companies like them and tens of thousands of others.

During all economic cycles.

Now turning to our international segment, we saw another quarter of solid five 5% organic growth in the quarter.

Our vitality index increased to 28% in the quarter and with all markets growing at or above our internal expectations.

Saw the United Kingdom, and Ireland produced just under 10% growth in the quarter as demand for our model and finance and risk solutions remained elevated.

We also saw continued steady improvement in Europe as the business grew 4% in the quarter with balanced growth across the region.

Asia came in with low single digit performance, which was expected as the market is dealing with some hangover from the lockdown impact in 2022 that affected 2022 sales in 2023 revenues.

As the year progresses and sales pick up we expect to see the revenues flow through an acceleration in those regions to complement the strength in our UK and Europe markets.

Overall the performance is on track and we continue to see the benefits of the disciplined investments in our international markets.

On the sales front the international segment continues to focus on landing and expanding more and more enterprise clients in the regions.

Deutsche Bank, one of the largest financial institutions in Germany added a compliance solution to their portfolio that is allowing them to better understand their third party supply chain risk.

This is just one example of what we saw throughout the quarter in terms of strong demand for these solutions.

The cabinet office of England engaged us for our compliance data blocks Apis public.

Public sector entities like the cabinet office also have the need to understand who they are doing business with and how the linkage to certain individuals entities or countries could impact the way they view potential risk with doing business with <unk> companies.

We also saw another strategic win with a top four bank in China.

This new data driven win was a direct takeaway from a legacy provider and continues to show how our data solutions and go to market improvements are driving expansion with the largest and most complex organizations in the region.

Along with the ongoing results and sales executions, we continue to focus on progressing against the strategic initiatives, we laid out during our Investor day earlier this year on.

On the technology side, we have made significant progress to start off the year.

For instance on the infrastructure side, we migrated one of our largest and most complex sales and marketing applications to our Google cloud infrastructure.

This migration has been underway for months and culminated in a near seamless transition that has resulted in significant improvements to the applications performance throughput and stability.

We also made significant progress in terms of our ongoing modernization efforts by reducing our reliance on mainframe hardware by 50%.

We have significantly reduced our use of mainframe applications and have a clear path to bringing that down to zero over the next two years.

These are just a few examples of the many ongoing initiatives, we have underway, which reflect our continued discipline commitment and execution to making the changes necessary to support the long term and sustainable change at D&B.

We also made significant enhancements to our data supply chain through architectural enhancement as well as cloud migration efforts that led to a 50% reduction in processing latency.

Now, while we are continuing to strengthen our foundation, we're also using cutting edge advancements to extend and expand our analytics capabilities.

In terms of linkage and matching we have the most advanced business to business capabilities in the world.

And to further extend that lead we're now leveraging GPT to drive enhancements in our global matching processes, which create efficiencies and in some cases incremental advancements in our match rates.

We also have three proof of concepts in place related to new business discovery, new contact discovery and employment counts for private businesses throughout the globe.

It's early stages now, but through taking a measured approach we can leverage the power of our unrivaled proprietary business to business data set combined with GPT and other artificial intelligence advancements.

To drive more and more value to our customers and prospects.

I will look to update you on all of these advancements and the others on future calls, but in the meantime, though we are hard at work at driving innovation and acceleration each and everyday at Dun <unk> Bradstreet.

Overall, we're off to a great start to the year and I'm very pleased with the progress we've made to date our ongoing transformational efforts has helped to offset a more difficult macroeconomic backdrop we.

We have capitalized on the strong demand for our solutions drove strong sales traction maintained excellent profitability and delivered another quarter of solid financial results with that I'd now like to turn the call over to Brian to discuss our financial results for the first quarter in more detail and the outlook for the remainder of 2023.

Thank you Anthony and good morning, everyone. Today, I will discuss our first quarter 2023 results and provide an update on our guidance for the remainder of the year.

Turning to slide one.

On a GAAP basis first quarter revenues were $540 million, an increase of $4 million.

Combined with TPG and other artificial intelligence advancements.

Or 1% compared to the prior year and 3% before the effect of foreign exchange.

To drive more and more value to our customers and prospects.

I will look to update you on all of these advancements and the others on future calls, but in the meantime, we are hard at work at driving innovation and acceleration each and everyday at Dun <unk> Bradstreet.

Net loss for the first quarter was $34 million or diluted loss per share of <unk> <unk>.

Compared to a net loss of $31 million for the prior year quarter.

Turning to slide two.

Overall, we're off to a great start to the year and I'm very pleased with the progress we've made to date, our ongoing transformational efforts have helped to offset a more difficult macroeconomic backdrop, we have capitalized on the strong demand for our solutions drove strong sales traction maintain excellent profitability.

I will now discuss our adjusted results for first quarter.

First quarter revenues for the total company were $540 million, an increase of 1% or 3% before the effect of foreign exchange.

Revenues on an organic constant currency basis were up three 2% driven primarily by increased demand in both our North America and international segments.

<unk> delivered another quarter of solid financial results.

With that I'd now like to turn the call over to Brian to discuss our financial results for the first quarter in more detail and the outlook for the remainder of 2023.

First quarter EBIT.

EBITDA for the total company was $190 million or flat to the prior year quarter and adjusted EBITDA margin was 35%.

Thank you Anthony and good morning, everyone. Today, I will discuss our first quarter 2023 results and provide an update on our guidance for the remainder of the year.

Higher earnings from the increase in organic revenues was offset by the impact of foreign exchange, which resulted in a $4 million headwind to EBITDA for the quarter.

Turning to slide one.

On a GAAP basis first quarter revenues were $540 million, an increase of $4 million or 1% compared to the prior year and 3% before the effect of foreign exchange net.

First quarter adjusted net income was $81 million or adjusted diluted earnings per share of <unk> 19.

Down primarily from the prior year due to increased interest expense.

Net loss for the first quarter was $34 million or diluted loss per share of <unk> 10, compared to a net loss of $31 million for the prior year quarter.

Turning now to slide three.

I will now discuss the results of our two segments North America and in international.

In North America revenues for the first quarter were $375 million, an increase of 2% or two 2% on an organic constant currency basis.

Turning to slide two.

I will now discuss our adjusted results for first quarter.

First quarter revenues for the total company were $540 million, an increase of 1% or 3% before the effect of foreign exchange.

Finance and risk revenues were $201 million or flat as double digit growth in our third party and supply chain risk management solutions were offset by the impact of the GSA contract expiration in April of 2022, and lower revenues in our legacy credibility solutions and.

Revenues on an organic constant currency basis were up three 2% driven primarily by increased demand in both our North America and international segments.

First quarter adjusted EBITDA for the total company was $190 million or flat to the prior year quarter and adjusted EBIT margin was 35%.

In sales and marketing revenues were $174 million, an increase of 5%. This was driven primarily by growth in our master data management and digital marketing solutions.

Higher earnings from the increase in organic revenues was offset by the impact of foreign exchange, which resulted in a $4 million headwind to EBITDA for the quarter.

North America first quarter, adjusted EBITDA was $151 million and adjusted EBITDA margin was 40% a decrease of 150 bps from the prior year due primarily to the margin impact caused by the lower revenues from the exploration of the GSA contract.

First quarter adjusted net income was $81 million for adjusted diluted earnings per share of <unk> 19.

Down primarily from the prior year due to increased interest expense.

Turning to slide four.

International segment first quarter revenues were $166 million.

Turning now to slide three.

A decrease of $3 million or 2% and an increase of 5% before the effect of foreign exchange organic revenues on a constant currency basis increased five 5%.

I will now discuss the results of our two segments North America and in international.

In North America revenues for the first quarter were $375 million, an increase of 2% or two 2% on an organic constant currency basis.

Finance and risk revenues for the first quarter of 2023 or $111 million, an increase of $2 million or approximately 2% and an increase of 7% before the effect of foreign exchange.

There was positive contribution from all markets Europe European growth was driven by finance analytics and API solutions the.

The worldwide network alliances was due to higher cross border data fees and growth from our United Kingdom market came from third party and supply chain risk management, along with compliance solutions as well as finance analytics.

In sales and marketing revenues were $174 million, an increase of 5%. This was driven primarily by growth in our master data management and digital marketing solutions.

Sales and marketing revenues for the first quarter of 2023 or $55 million.

A decrease of $5 million or 8% and a decrease of 1% before the effect of foreign exchange.

Excluding the impact of the divestiture of our German business to consumer business in the second quarter of 2022 organic revenues increased 2%, primarily due to higher revenues from our UK market driven by a higher data sales.

Turning to slide four.

In our international segment first quarter revenues were $166 million.

A decrease of $3 million or 2% and an increase of 5% before the effect of foreign exchange organic revenues on a constant currency basis increased five 5%.

International first quarter, adjusted EBITDA was $56 million, an increase of $1 million or 1%, primarily due to revenue growth from the other lines of business, partially offset by higher foreign exchange losses, resulting from a strengthening U S. Dollar adjusted EBITDA margin was 34% an increase of 100.

Finance and risk revenues for the first quarter of 2023 $101 million, an increase of $2 million or approximately 2% and an increase of 7% before the effect of foreign exchange.

There was positive contribution from all markets Europe European growth was driven by finance analytics and API solutions the.

<unk> compared to the prior year.

Turning to slide five I'll now walk through our capital structure.

As of March 31, 2023, we had cash and cash equivalents of $204 million and total principal amount of debt of 3640 $3 million.

The 3640 $3 million in principle is made up of $460 million of unsecured notes at 5%, which mature in 2029.

Sales and marketing revenues for the first quarter of 2023 were $55 million, a decrease of $5 million or 8% and a decrease of 1% before the effect of foreign exchange.

Term loans of 2670 $3 million, a LIBOR plus 325 that matures in 2026 $455 million at Sofar, plus 325 that matures in 2029 and borrowings of $55 million under our revolver.

LIBOR base term loan has a $1 billion floating to fixed swaps effective through March of 2024 0.4 dollars 57%.

International first quarter, adjusted EBITDA was $56 million, an increase of $1 million or 1%, primarily due to revenue growth from the underlying business, partially offset by higher foreign exchange losses, resulting from a strengthening U S. Dollar adjusted EBITDA margin was 34% an increase of 100.

And a $1 5 billion floating to fixed swap, which expires February 2026 at three 695%.

But so far based term loan has a $250 million swap for floating to fixed through February 2025 at 1.6% to 9%. We also have three cross currency swaps at $125 million each that settle in July of 2020 for 2025 and 2026.

Compared to the prior year.

Turning to slide five I'll now walk through our capital structure.

As of March 31, 2023, we had cash and cash equivalents of $204 million in.

In total principal amount of debt of 3640 $3 million.

We are currently either fixed or hedged at 88%.

The 3640 $3 million in principle is made up of $460 million of unsecured notes at 5%, which mature in 2029.

We had $795 million available on our $850 million revolving credit facility as of March 31, 2023.

Overall, our weighted average interest rate was 563% as of March 31st 2023.

Term loans of 2000 and $673 million, a LIBOR plus 325 that matures in 2026 $455 million at Sofar plus $3 25.

Our leverage ratio was four <unk> times on a net basis and the credit facility senior secured net leverage ratio was three five times.

<unk> matures in 2029 and borrowings of $55 million under our revolver.

Turning now to slide six I'll now walk through our outlook for 2023.

The LIBOR base term loan has a $1 billion floating to fixed swaps effective through March of 2024, 0.4 dollars, 57% and a $1 5 billion floating to fixed swaps, which expires February 2026 at three 695%.

We continue to expect total revenues after the effect of foreign currency to be in the range of 2000 $260 million to $2 $300 million.

Or an increase of approximately 1.6 to three 4%.

<unk> base term loan has a $250 million swap for floating to fixed through February 2025 at 162, 9%. We also have three cross currency swaps at $125 million each that settle in July of 2020 for 2025 and 2026.

This includes an assumption of a headwind in the first three quarters of the year, partially offset by a tailwind in the fourth due to the effect of foreign currency related to the expected variances between the U S dollar Euro British pound and Swedish krona.

Revenues on an organic constant currency basis are expected to be in the range of three.

We are currently either fixed or hedged at 88%.

We had $795 million available on our $850 million revolving credit facility as of March 31, 2023.

The four 5% for the full year.

As previously discussed it is important to note that the total and organic growth range is taken into account the conclusion of the existing GSA contract.

Overall, our weighted average interest rate was 563% as of March 31st 2023.

At the end of April 2022, and then the impact organic growth for the full year as a headwind of 30 basis points with a 110 basis points headwind.

Our leverage ratio was four <unk> times on a net basis and the credit facility senior secured net leverage ratio was three five times.

Realized in the first quarter.

Adjusted EBITDA is expected to be in the range of $870 million to $920 million.

Turning now to slide six I'll now walk through our outlook for 2023, we continue to expect total revenues after the effect of foreign currency to be in the range of 2000 $260 million to $2 $300 million.

The adjusted EBITDA range also takes into account the conclusion that the GSA contract and a $5 million negative impact from the strengthening of the euro versus the US dollar in comparison to the relative flatness of the British pound and Swedish krona.

Or an increase of approximately $1 six to three 4%.

Adjusted EPS is expected to be in the range of 92 to one dollar.

Additional modeling details underlying our outlook are as follows.

We continue to expect interest expense to be approximately $240 million depreciation and amortization expense of approximately $100 million.

Revenues on an organic constant currency basis are expected to be in the range of three.

Excluding incremental depreciation and amortization expense, resulting from purchase accounting.

Four 5% for the full year as.

Adjusted effective tax rate of approximately 24%.

As previously discussed it is important to note that the total and organic growth range is taken into account the conclusion of the existing GSA contract at the end of the April 2022.

Weighted average diluted shares outstanding of approximately $433 million and for Capex, we expect approximately $130 million to $150 million of internally developed software and about $30 million of property plant and equipment and purchased software.

Impact to organic growth for the full year is a headwind of 30 basis points with a 110 basis points headwind realized in the first quarter.

Overall as we monitor the macro backdrop it remains consistent with what we anticipated in our original guidance and we expect and we continue to expect the remaining quarters to perform as previously communicated.

Adjusted EBITDA is expected to be in the range of $870 million to $920 million.

In conclusion, we are well positioned to capture the significant growth opportunities in front of us and we expect to continue to accelerate revenue growth in 2023, despite a challenging overall environment and the conclusion of the GSA headwind at the end of April with improving profitability and cash flows. We will also focus on deleveraging.

Adjusted EPS is expected to be in the range of <unk> 92 to one dollar.

Additional modeling details underlying our outlook are as follows.

The balance sheet and focusing our capital allocation strategy on driving increased shareholder returns with.

We continue to expect interest expense to be approximately $240 million depreciation and amortization expense of approximately $100 million excluding.

With that.

We're now happy to open up the call for questions. Operator will you. Please open up the line for Q&A.

Excluding incremental depreciation and amortization expense, resulting from purchase accounting.

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by one on your Touchtone phone you will hear three tolling prompt acknowledging your request and your questions will be pulled in the order. They are received should you wish to decline from the polling process. Please press star followed by two.

Adjusted effective tax rate of approximately 24%.

If you are using a speaker phone please lift the handset before pressing any keys one moment. Please for your first question.

Your first question comes from Seth Weber Wells Fargo Seth. Please go ahead.

Hi, This is Josh filling in for Seth. Thanks for the Great color could you just maybe give us some more information on kind of the generative AI and what youre seeing in terms of GPT just in terms of how we could think about kind of a longer term.

Kind of a realization of the database that Jon Steinberg with enhanced linking our matching capabilities as well as any other potential opportunities.

With improving profitability and cash flows we will also focus on deleveraging the balance sheet and focusing capital allocation strategies on driving increased shareholder returns.

No. It's a great question John and.

There's obviously a lot of noise about that in the market right now and there's a lot that we're doing with it.

With that.

Currently with our.

Linking and matching on a global basis, and we're seeing efficiencies with that as I shared in my opening comments.

We're also doing a number of proof of concepts like I talked about and really leveraging.

This great technology.

<unk> wanted to really highlight for you.

And I think it's really important to <unk>.

Ask me this before.

The advantage that we have is we have a lot of proprietary data.

Now that we've had for many many years and trended data data, we manufacture insights that we have.

So so.

So for US we have the ability to bring the GBT inside our firewalls, so to speak and really Leverages technology around our proprietary data.

For companies out there that are just accessing public record databases.

Chat GBT can do that as well and there's not really a differentiation in the space that we have because of like the vast proprietary data lake that we have so it's an exciting time certainly from a technology perspective.

Let's see a lot of noise about that in the market right now and and there's a lot that we're doing with it.

And.

Our teams added in.

Actually worked on the previous version of GPT and our contact.

Currently with our you know linking a matching on a global basis, and we're seeing efficiencies with that is I shared my opening comments.

Titling segment within our sales and marketing business. So we've been at it for a while as you would imagine we've got dozens and dozens of <unk>.

Patents around linking in matching and scenario that we are really really strong.

That's great color. Thank you and maybe also just thinking on the topic of kind of leveraging the data itself could you talk more about the supply chain as well as the durability of those revenues given the partnership with ice and kind of using.

That we've had for many many years and trended data data, we manufacture insights that we have and so so for US we have the ability to bring the GBT inside our firewall so to speak and really Leverages technology around a proprietary data.

The <unk> and supply chain within kind of a climate risk offerings unique how much more runway is there kind of in the kind of overall system. Thank you.

Yes, we continue to see really strong growth in our risk business and we have for many quarters in a row and we anticipate that we will continue to going forward.

Chelsea B T can do that as well and there's not really a differentiation in the space that we have because of like the vast proprietary data like that we have so it's an exciting time certainly you know from a technology perspective.

It's a very topical.

Subject.

And our capabilities are very deep and very broad in that space and so.

We're constantly looking at additional.

And you know our our teams added in.

Insights to help drive the risk of supply chain talked about our ESG coverage increasing dramatically.

Titling segment within our sales and marketing business. So we've been at it for awhile as you'd imagine we've got dozens and dozens of Pat and surround linking a matching it's an area that we're really really strong.

That's one of the most sought after datasets and our risk analytics business.

But as you can imagine we're constantly looking to drive more and more ways that we can leverage data acquired data create new analytics that really helps lower the risk threshold for our clients out there.

That's great caller. Thank you and maybe also just thinking on the topic of kind of leveraging the data itself could you talk more about the supply chain as well as the durability of those revenues given the partnership with ice and kind of using.

Great color. Thank you Ken.

Thank you Josh Your next question comes from Kyle Peterson Needham Kyle. Please go ahead.

Great. Thanks, guys.

K Y C K Y V and supply chain within kind of a climate risk offerings are unique how much more one way is there.

And appreciate you taking the questions.

Just wanted to touch on I know in December it seems like you guys had some some kind of volume pressure when there was kind of increased macro uncertainty.

The kind of overall system. Thank you.

Yeah, Uhm, we continue to see really strong growth in our risk business and we have you know from many quarters in a row and we anticipate that we will continue to going forward, it's a very topical sub.

Have you guys seen any of that either anytime in March or in April in response to some of the regional banking kind of crisis and volatility or is everything just kind of continued relatively unabated.

Subject and our capabilities are very deep and very broad in that space and so we're constantly looking at additional.

Yes Kyle.

<unk>.

Okay.

Insights that help drive.

The actual master data management volume that we saw the blip in December it was a blip early near we saw at recovering we continue to see a recovering.

The risk of spots and I talked about R. E S G coverage increasing dramatically.

That's one of the most sought after datasets and a risk analytics business.

Our wholesales and marketing business grew organically over 5% and that was one of the areas where it was a tailwind for our growth.

In that segment, so we feel really good about that.

I would say on our on the regional bank side in terms of whats going on Thats an area that we have very very low exposure to I'd say low single digit percentage of our revenue.

Thank you John you. Your next question comes from Kyle Peterson Needham Kyle. Please go ahead.

<unk>.

In that space.

Certainly.

Calling on them with the crisis, that's underway I mean, I'm really proud of our team.

They see a need or crisis and run to it and we're certainly running.

Hard to the regional bank and larger community banks. That's a segment that typically is focused on commercial.

<unk> isn't banking, if you think the largest banks in the world have an ability to reach consumers and credit unions with their tax advantage can reach.

Tumor members there that regional larger community bank space tends to focus on commercial and so we've created a lot of new analytic insights that would help improve their underwriting and help identify the risk of what they currently have outstanding whether it's our blended score where we're taking our.

The the actual master data management Boeing that we saw the blip in December it was a blip.

Early near we saw it recovering we continue to see a recovering.

Our whole sales and marketing business grew organically over 5% and that was one of the areas where it was a tailwind for our growth.

Credit information on the business coupled with.

Consumer scores and giving a unique perspective.

That segment, so we feel really good about that.

Or or work with Plaid that we talked about of integrating into the banking accounts at a more detailed level and really help assessing.

I'd say on our on the regional bank side in terms of what's going on but that's an area that we have very very low exposure to low single digit percentage of revenue.

The risks that.

These regional banks have out there right now, but we see it more as an opportunity versus.

In that space, where.

We're certainly.

I'm, calling on him with the crisis under way I mean, I'm really proud of our team how.

Our concern at this stage.

Got it that's fair.

Really helpful. And then maybe just a follow up just in the sales and marketing business internationally has there been any macro pressure on demand in that business or are the headwinds purely from the divestiture of the.

I see a need or crisis and run to it and we're certainly running.

The business in Germany.

Well certainly the Divesture in Germany.

Consumer remembers their that regional a larger community bank space tends to focus on commercial and so we've created a lot of new analytic insights that would help improve their underwriting and help identify the risk of what they currently have outstanding whether it's our blended score where we're taking our credit information.

The key is a headwind.

It was in the space that was really commoditized not at the heart of what we do and want to focus on as a company and it's been a really good.

Move for US I think from that perspective, but overall were excited as we create lots of new capabilities and bring them into our international markets.

On the business coupled with.

Passenger rates.

The consumer scores and giving a unique perspective or or work with apply that we talked about integrating into the banking accounts as being at a at a more detailed level and really help assessing you know the the risks that.

Ever been done here ever.

We're excited about the opportunities in front of us.

Makes sense, thanks, guys nice quarter.

Thank you Paul.

Your next question comes from Andrew Jeffrey Truest, Andrew. Please go ahead.

These regional banks have out there right now, but we see it more as an opportunity versus.

Hi, Good morning, guys Excuss stepping on for Andrew.

A concern at this stage.

Just wanted to talk a little bit on the changes in retention you're experiencing in hoover's.

Got it that's really helpful. And then maybe just a follow up with any sales and marketing business internationally.

How can we move that across the portfolio.

Obligations.

And just talk a little bit on the cyclical impact youre seeing on MDI demand.

Discretionary marketing is under pressure.

So the first question is on the improvements that we've made in Hoover's, how we see that across.

The other parts of our business.

Well certainly the divestiture in Germany was the key headwind.

When we look we had talked about hoover's before us as being something in need of improvement and that's what we've been working on.

Headwind that it was in the space that was really commoditize not at the heart of what we do and want to focus on as a company and it's been a really good.

We had shared previously.

Move for US I think from that perspective, but overall, we're excited as we.

Does.

And the range of $90 million to $100 million in revenues and.

Create lots of new capabilities and bring them into our international markets.

And again with the broad transformation that we had underway. This team has been very focused on.

Faster rate than has ever been done here ever we're excited about the opportunities in front of us.

The big rock small rocks tables, and sand as they're filling the proverbial jar.

And as we worked our way to it and really pleased with the progress that we've been making there.

It makes us thanks, Scott nice corner.

Thank you thank.

Thank you and your next question comes from Andrew Jeffrey Truest, Andrew. Please go ahead.

Lots of our businesses, our master data management is very strong it's not need of improvement.

Hi, Good morning, guys Excuss stepping on for Andrew.

Been doing there is really adding more and more capabilities like the ones I mentioned in terms of being able to take that capability more.

Applications, and just talk a little bit on the cyclical impactor sitting on a M D on demand seems.

Mid market down market.

There we can create user interface makes it easier to work with it when we think about our digital marketing very strong. So you see what's going on in the broader market.

Round ads and marketing in this business has been growing very well for us because we are at the front end of.

The other parts of our business.

With our programming programmatic advertising and our digital marketing we're at the front end of really leveraging the great data we have to make the ads very very targeted and so that's an area that I believe will continue to do well.

We look we talked about hoover's before as as being something in need of improvement and that's what we've been working on like we had shared previously it was.

In the range of $90 million to $100 million in revenues and.

We do have like we've talked about some.

And again with the broad transformation that we had underway. This team has been very focus on you know the big rock small rocks pebbles and sand as are filling that proverbial jar.

Portfolio.

$50 million to $75 million scattering of smaller assets that we will look at.

Transforming and if the juice isn't worth the squeeze divesting of.

And and as we worked our way too I'm really pleased with the progress that we've been making their.

I'd like I said as we've gone through the big.

Parts of our transformation, it's really around now getting to the smaller ones and putting attention and addressing them and like I said.

Lots of our businesses you know our master data management is very strong its not need of improvement you know what we've been doing there is really adding more and more capability like the ones I mentioned in terms of being able to take that capability more mid market down market, where we can you know create user interface makes it.

We're excited because we'll either transform them and there'll be tailwind for us for we'll divest them and not have the headwinds.

<unk> us.

Easier to work with it and.

Great I appreciate all the great color.

I think you also talk a little bit on rest of rolled bleach pricing actions there.

Around adds a marketing in this business has been growing very well for us because we're at the front end of you know with our program programmatic advertising and our digital market, where the front end of really leveraging the great data we have to make the ads very very targeted and so that's an area that I believe will.

Can you talk a little bit of how's the enterprise sales cycles do in pipeline.

Thanks.

Yes, Gus I would say across the board.

Leasing is something that we continue to use.

A lever of growth on the international side as you remember when we took over the <unk> acquisition. There were a lot of kind of legacy and disparate applications bag.

And you to do well at <unk>.

We do have like we've talked about you know some portfolio.

<unk> and the team spent a lot of time and effort last year migrating up as we migrate them onto the latest and greatest solutions.

50 to 75 million scatter of smaller assets that will look at.

Transforming and if the juice isn't worth a squeeze the best thing of but like I said as as we've gone through the the big <unk>.

Clearly a better level of customer engagement customer smiles satisfaction and so active that are coming up for renewal. We're applying that same methodology off taken a price increase expanding our multiyear contracts and.

Parts of our transformation, it's really around now getting to the smaller ones and putting attention dressing them and and like I said, we're excited because well either transform them and there'll be tailwinds for us for with the best of them and not have the headwinds.

And really starting to see the benefits from that perspective so.

Similar oxide playbook.

That we ran.

Sure.

Anthonys point earlier, a lot of our migration a lot of underlying.

Affecting us.

<unk> foundational work, we were doing may not have instantaneous impact, but where you see better retention rates you see it in better ability to take price and it's the same thing we're seeing in international right now.

Great I appreciate all the great color.

And then can you also talk a little bit on rest of road pricing actions. There could you talk a little bit of How's the enterprise Bill cycle's due in pipeline.

Great. Thanks for taking my questions guys.

Thanks.

Thanks, guys. Thank you. Your next question comes from Heather Belsky Banc of America Heather. Please go ahead.

Hi, Thank you for taking my question I'm on a train right now so hopefully you can hear me.

I'm just I'd like to touch on the AI question again, I'd love to hear from you.

Why do you think an upstart can't just take AI scrape the web and do what you do.

What are your.

In that regard what is your competitive.

Yes.

Sure Heather.

The real Big differentiator is that we have proprietary data that cannot be scraped and we're not exposing it.

Externally so that it can be scraped. So if anything we are again more upside than downside because we're leveraging this technology ourselves to create more efficiency identify new insights for our clients and owning it and driving it there are other low cost providers out there that really.

Scrape the web based scraped.

Public registries for example.

And scrape, what's publicly available and yet a startup.

Leveraging <unk>.

<unk> could do that and it could compete in that space, but for us the big differentiator we have.

And why we've been so sticky is the proprietary data and that is really the biggest differentiator.

Great. Thank you I appreciate it.

Thank you Heather.

Thank you. Your next question comes from Stephanie more Jefferies. Stephanie. Please go ahead.

Hi, This is <unk> on for Stephanie Thanks for taking my question.

The three 2% organic growth number could you just breakout what the split was between pricing cross sell and new logo wins and how you kind of expect that split.

Play out for the balance of the year.

Yes.

Thanks for the question we've talked about this year for instance, with retention rates holding in the high nineties right. So we've talked about the main then 90, 697% they were very strong and consistent within the first quarter.

So it really starts to bear I think Anthony uses the terminology closing the back door and you heard what we did with Hoovers, while we continue to do with the solution centers are generally strong from that perspective. So.

When we think about price this year at moving from starting to approach roughly 2% right.

Is the expectation right for 2023, and again, that's kind of blending in some of these new pricing initiatives that were dropping in right.

As the renewals come up throughout the year Youll see that 12 month flip over into the price increase and that will continue to contribute more and more throughout the back half.

On the cross sell upsell a lot of the deals that we were doing last year.

In the third quarter fourth quarter et cetera, those are flowing through and so as we build up each and every year, it's really a waterfall from that perspective.

So overall again nice nice driver from price continue.

Continued expansion from a.

Our net revenue perspective, with the cross sell and up sell.

And then it's been really continuing to close that back door and allowing.

New innovations in the new installations to shine during what's been driving the growth.

I think we mentioned we had $5 5 million.

Almost $6 million in the first quarter from the GSA that drops to two right in April.

The second quarter, and then we lock that in or kind of moving on from that perspective, So again.

Really good start to the year end.

And look to continue to progress as the year progresses.

Got it.

And then.

Guess what percent of revenues are under long term contracts I know you guys have seen some good improvement there over the years, but just for the quarter. If you could remind us what that rate what that was.

Got it.

Yes, so multiyear contracts that we've talked about are now over.

50%, So I think it's this quarter exactly about 53%.

What we're seeing on us.

Clients wanting to sign up for longer term so.

Yeah.

Our four year contracts have been signing right now or even up significantly I think they were up.

Strong double digits so.

So really it's a great indicator for us that our clients re.

Really see us as a strategic partner wanting to stay with us do more with us over a longer period of time and so again the great thing is over that four year longer period now we have more time to cross sell and upsell of new capabilities and help them versus constantly revisiting the renewal conversation.

All while helping got it pricing escalators.

Yep got it thank you.

Thank you. Your next question comes from Andrew Steinman.

J P. Morgan Andrew Please go ahead.

I apologize your actual your next question is actually from Phase OE Deutsche Bank. Please go ahead.

Yes, hi, Thank you and good morning.

Yeah, so multiyear contracts that we talked about our now over 50.

So I wanted to follow up on a couple of things. One is the divestitures that you sort of alluded to and will you made one divestiture.

50 per cent. So I think it's this quarter exactly about 53 per cent yeah and.

In Germany.

Talk to us more about what we should expect from here.

How are you approaching.

These divestiture decision.

What's the timing of those and maybe dimensionalize.

Maybe what percentage of your business is I don't know if on notice.

Is the rate freeze.

But a bit more color would be helpful. Thanks.

Okay.

Sure.

As Anthony said, we kind of look at all of these things.

Boulders rocks pebbles and sand driving so we're now move through a lot of the boulders and rocks and Theres probably.

And kind of 50 $75 million of these assets that.

Our.

Headwinds for all intensive purposes, and so what we're looking at similar to what we looked at <unk>. Okay.

First and foremost the best outcome for us is to transform Brian. Thank.

Take it from.

Headwind to a tailwind through some investment through some modernization et cetera.

But if we look at something and it's not strategic or is it.

The juice is not worth the squeeze ban that's where our divestiture would come into play.

We're always mindful of in terms of divestiture and certainly.

Sun Downing our shut in orphan application is that we do run a quite leveraged data cloud are very leveraged infrastructure and we want to make sure that the.

Cough and the EBIT impact of the revenue impact is going to be commensurate with what we what we do from the revenue side. So again. These are products that maybe are in the range of $10 million $15 million, the largest being maybe 25 to 30 million.

But it's a very kind of small containers that from that perspective that we're just evaluating in terms of.

Is it worth the investment to an intention to transform.

Or is that something that we could easily offload.

The cash from that perspective, and then use that to deleverage or allocate capital otherwise appropriately.

Great.

Helpful and then as a follow up I wanted to get a sense of what youre seeing from yours small business customers. I know you have large exposure to those types of customers and a pretty big penetration opportunity, but curious how how things are trending with your current customers.

Maybe if at that bucket.

But we will certainly in the small business area.

That's a group.

In a segment that is.

<unk>.

You hear many companies mostly concerned about.

That segment, how they'll perform in.

This macro environment that we're in and we're.

Arguably heading into and for US the majority of our revenues are around enterprise clients versus small.

But what I would say with.

The SMB base.

Say broadly for all of Dun <unk> Bradstreet is theres a headwind that's out there and there's a tailwind that we have with our transformation that we have underway and the forest from our transformation.

Is.

Is helping significantly with the macro forces that are out there and again on a company basis.

You've seen lots of companies struggle in this environment and we continue to grow and accelerate our growth year over year and a lot of it is our transformation. Similarly with small business. That's what's going on there there are headwinds out there with them certainly, but we've launched a lot of new capabilities in this space.

We've talked about some of the partnerships that we had in my prepared remarks for.

<unk> for us.

To help small businesses become stronger.

You you hear many companies mostly concerned about.

We've seen significant growth in our e-commerce side, which is really tailored towards this SMB segment, where we have $2 5 million subscribers.

Dun's manage our credit products.

21% increase over last year.

And over 25% five year CAGR. So theres a lot of good work that we have going on as part of our transformation and how we're focused on that segment and growing it.

To help offset the macro environment. So it's an area obviously that we got.

Close attention to like I said in this macro environment, but again, we've got a lot of conviction and how we can help in that space and thats where were putting a lot of effort.

Great. Thank you so much.

Thank you Faiza.

Your next question comes from Andrew Steinman Jpmorgan, Andrew. Please go ahead.

Hi, Anthony I heard you're encouraging comments earlier on Hoover's I was hoping you could just talk a little bit more about it specifically how quickly as hoover's growing revenues. This year. That's one and my second question is how does Hoover's U S professional contact database coverage compared to its top competitor.

Sure Andrew Thank you.

What I'd say is.

On the Hoover's perspective.

I'll take the first part Brian you could.

Discuss the the revenue growth.

But lots of great improvement in.

In a couple of areas.

One is in terms of our capability.

And we've traded.

Different versions of Hoover to accretive Hoover's essential for example to be a smaller.

Targeted approach to to hit that SMB segment size that we're just talking about is another example, there.

But our.

The quality of our data has improved significantly we've talked on calls about dramatic increases in coverage.

And quality and.

And it's an area that like I said, we're very focused on but also a very focused approach in our go to market. So having dedicated sellers really focusing on that and.

And also tying in our other capabilities that we have such as our credit and risk right. So like we said.

Especially heading into again.

If youre always cognizant of the environment that you're in are heading into.

And this one there will be businesses that will struggle do you want to spend a lot of sales resources selling into a company like that.

That's an area, where we can help obviously.

With our.

Our clients being even more focused with their time that they spend here.

And I would say on the coverage side, that's always a moving target Andrew and how it compares to others in the industry and everyone always talks about that what I'd say is with particular decision makers at companies our coverage is outstanding so.

Targeted approach to to hit the S. N P segment size that we're just talking about is another example, there.

No one compares to us on our business coverage. So identifying if there's a business out there that meets the need of what you are selling and then working down from there to say, Canada will have contacts in this business.

We've got a lot of confidence in our in the quality of.

Our data.

Business coverage key contacts direct dials E mails et cetera and.

And like I said, it's a it's a hard one to compare to get lots of different data points.

But what I feel is the significant improvement that we're seeing clearly is a direct result for the improvements and the strength that we have in our data.

Got it.

Andrew in terms of growth right now that this is a.

As you know quite well solution set that was actually declining for for years and so for us.

Part of the story as it is now turning to I would say low singles growth at this point, but with some really nice momentum as we see the sales buildup.

Our building faster than that that we expect for it continuing to accelerate throughout the year and so again really great progress in another component for us strategically as we came into the organization with like we have some really nice assets in here and if we can just get some of these ones that are underperforming.

Turning them around or even just to get them to neutral right. It allows the rest of the components are really shine through whether that's third party risk our master data management et cetera, and then the opportunity for Hoover's to continue to grow and expand and really take off over the next few years is certainly better so again really real.

Positive momentum in a lot of great work done by the team.

Okay. Thank you very much.

Thank you Andrew.

Thank you. Your next question comes from Ashish <unk>.

<unk> RBC capital markets.

Please go ahead.

Thanks for taking my question I, just wanted to focus on the North America <unk> business that business grew 5% in fourth quarter, excluding the <unk> solution. So my question. There was a 61, 5% in the first quarter comparable to 5% of our debt some more headwinds on the government solution, which has being on on the F&I business.

And if it's possible to provide that growth profile, Florida, if theyre not excluding the government solution.

Yeah Ashish.

If you look at the two components one the GSA.

Is.

It's about I said five.

<unk> 6 million in the first quarter that in of itself is going to weigh heavier on a percentage basis, because the first quarter for us was our lowest from a magnitude perspective.

The other component is if you remember we're lapping some of the headwinds from the legacy credibility business and so that was another kind of couple of million dollars that was in the quarter also and so on.

The components were really offsetting the growth that we're seeing as Anthony said teens growth in the risk business and then kind of low singles on finance solution side. So when we look at that overall youre talking.

Thanks for taking my question I, just wanted to focus on the North America SNR business business grew five per cent and <unk> solution. So my question. There was 2.5% in the first quarter comparable to five per cent of our some what had been sent the government's solution, which has being on on the F in our business.

Closer to being more about four ish percent range, Brian venue are flat. When you think about the two pieces that were driving that which were mainly the <unk>.

GSA side, but also on a little bit of that.

<unk>, which was impacted by the confirmed order from last April.

Okay.

That's very helpful color and maybe just a quick question on the on the European business on the legacy business. I was just wondering if you can comment on the progress of migrating all the legacy applications to the Dnb and then obviously there was an excellence to the large financial institution win in Germany was that also on the new.

Yeah sure sure. If if you look at the the two components won the the GSA is.

Five and a half $6 million in the first quarter that in of itself is gonna way heavier on a percentage basis, because the first quarter for US was already thought Lois from a magnitude perspective and then the other component is if you remember were laughing some of the headwinds from you know the the legacy credibility business and fell.

Black new applications that you've introduced in the European market.

Sure. Thanks, it's really really proud of the great work our team there is doing.

European markets.

That was another couple of million dollars that was in the quarter also and so those two components were really offsetting the the growth that we received is Anthony side, you know teams growth and the risk business and then kind of low singles on the finance solution five so when we look at that you know overall you're talking.

And.

Lots of migration work underway there they migrated thousands and thousands of clients and you see it in the vitality index right.

It's just.

Almost 28%.

And as you know with vitality index, they don't keep creeping up to get to a 100 eventually because it's now the last four years of new solutions and so having a score that ranges is really exciting and.

Closer to being more about four per cent range Bryan venue or the flat. When you think about the two pieces that were driving that which were mainly the the GSA side, but also a little bit of that credibility, which was impacted by the Confederate what are from us favorable.

And the team there is focusing on.

Larger enterprise clients are growing with the.

That's that's very helpful color and maybe just have a quick question on the on the European business of the legacy does not I was just wondering if you can comment on the progress of migrating all the legacy applications to the D. M V. And then obviously there was a redfin to the large financial institution when in Germany was that all.

The winners and our penetration into the larger <unk> is with our newest offerings that we're bringing to market.

And it just gives us like I said.

Number one.

A more modern solution for us to sell into which helps us with our renewals that helps us.

So on the new <unk>, new applications that you introduce and the European market. Thanks.

It's modular lies so it's easy to sell components within those suites, the finance analytics or risk analytics for example, adding a component to it to.

Sure Yeah. Thanks for <unk>, it really really proud of the great work our team there is doing.

Make it more easy for our clients to buy and digest and integrate and implement the solution.

The European market.

And you know <unk>.

Lots of migration work underway there they migrated thousands and thousands of clients and you see it in the Vitale The index right. It's it's just.

So.

Couldn't be more proud of really a vitality index in North America was over 20% as well so a lot of great work like I said on previous calls also.

Say on some work in some ways, where you do.

You know almost 28% and as.

A lot of effort.

Migrating to a new solution, where there's not an immediate bump in revenue, but you put yourself in a great position to grow and we're seeing obviously lots of green shoots from that growth from having longer relationships with our clients.

As you know if I tell the index it won't keep creeping up to get to 100. Eventually because you know it's now the last four years of new solutions and so having a score that range is is really exciting and and the team there is focusing on larger enterprise clients I growing.

Et cetera.

That's great color. Thank you.

Thank you Ashish. Thank you. Your next question comes from George Tong Goldman Sachs. George Please go ahead.

With the winters and our penetration into <unk> is with our newest offerings that we're bringing to market.

Hi, Thanks. Good morning, you maintained your 2023 organic revenue growth guide of three to four 5%, which is a relatively wide range. You know one quarter of performance under your belt, where in the range do you think you're currently tracking towards given current momentum in the business.

And it just gives us like I said.

Number one.

Yeah.

A more modern solution for us to sell into which helps us with our renewals. It helps US you know it it's modular lie so it's easier to sell components within those sweet.

Finance and lettuce, a risk analytics for example, adding a component to it too.

Hey, George I think.

<unk> talked about.

Really being consistent in terms of our expectations since really.

Make it more easy for our clients to buy indigestion integrate and implement a solution.

<unk> earnings call back in February.

So.

Can be more proud of really vitale. The next in North America was over 20 per cent as well. So a lot of great work like I said I'm previous calls I'll say unsung work in some ways for you to.

We anticipated I think a pretty challenging macro backdrop from my perspective, when we gave the range.

So as you think about the.

Three to four 5% that kind of one 5% spread.

A lot of effort.

Migrating to a new solution, where there's not an immediate bump in revenue, but you put yourself in a great position to grow and we're seeing you know obviously lots of green shoots from that growth from having longer relationships with our clients.

That is something that again had already taken into account largely what we call a macro conditions would be very.

Barry can take away from that.

Okay.

And look forward to continuing to execute against our plans.

Et cetera. So.

That's great. Thank you.

Okay got it related to that prior question can you elaborate on the overall selling environment that youre seeing including the state of client budgets in sales cycles.

Thank you thank.

Thank you. Your next question comes from Georgetown Goldman Sachs. George Please go ahead.

Hi, Thanks, good morning.

<unk> maintained your 2023 organic revenue growth guide of 3% to 4.5%, which is a relatively wide range. You know one quarter of performance under your belt, where in the range do you think you're currently tracking towards given current momentum in the business.

As well as how the selling environment changed over the course of the quarter.

Sure George.

It's interesting overall I'd say, it's pretty common pretty stable, we had talked about lengthening of sales cycles shrinking Q1, we saw its shrinking a little actually and and then later in the quarter lengthening a bit but overall about the same.

Yeah, Hey, Georgia, I think we you know talk about breathe really being consistent in terms of our expectations. You know since you know really bad earnings calling back in February .

No.

It's one where it really wouldn't highlight any of the small nuances and again.

We took the painted I think a pretty challenging macro backdrop from that perspective, when we gave the range and so you know as you think about that about 3% to 4.5% that kind of wanted to have a sense Friday.

Yeah.

I feel of the transformation for us that we have is very different so of all the companies out there that have been running.

Perfectly.

As a macro force that hits them and it slows it down and for US we hadn't been running perfectly right. We had an imperfect company that were focused on making perfect and.

That is that was something that again had already taken into account largely what we thought the macro conditions would be so very can check that for that <unk>.

<unk>.

The force that we see from our transformation it helps us to offset.

And look forward to continuing to execute against our plants.

A lot of the headwinds that are out there in terms of budgets and sales cycles, but having.

Okay got it uhm related to that question can you elaborate on the overall selling environment that you're seeing including the state of client budgets and sales cycles as well as how the selling environment changed over the course of the quarter.

More solutions, having structure in our contracts that helps from a growth perspective.

New capabilities that can help our clients as a <unk>.

Shared in our prepared remarks, we've.

We've had clients that came and said hey, I need to cut my budget.

As a work through it with us scoping or taken away any of the services would hurt them more than.

Sure Georgia.

It's interesting overall I'd say, it's pretty common pretty stable you know, we we had talked about lengthening of sales cycle shrinking chew on we saw it shrinking a little actually and and then later in the quarter lacking a bit but over all about the same so.

If they didn't do it and so we've just got some really great mission critical.

Capabilities that were really.

Partnering well with our clients, we're servicing our clients better than we've ever service from adding more value capability.

So, it's one where it really wouldn't highlighting the small nuances and again.

That's where.

I've asked our team just to stay focused on is not the macro environment. What can we do every day to help our clients be better and it's resulting in.

You know I I feel the transformation force that we have is very different so of all the companies out there that had been running perfectly.

Positive growth, where I think.

There is a macro for set his thumb and it slows it down and for US we hadn't been running perfectly right. We had an imperfect company that will focused on making perfect and.

Otherwise it would be more challenged.

Very helpful. Thank you. Thank you. Thank you Tori instructions. Thank you. Your next question comes from Kevin Mcveigh Credit Suisse. Kevin. Please go ahead.

The the the force that we see from our transformation. It helps us to offset a lot of the headwinds that are out there in terms of budgets and sales cycles, but having more solutions having structure in our contracts that helps.

Great. Thanks, so much hey.

And can you maybe take another shot at that.

Brian are you seeing anything in terms of incremental demand from the infrastructure stimulus starting to surface in terms of maybe client activity that you'd call out.

Growth perspective, new capabilities that can help our clients as.

As a shared and are prepared remarks.

Yeah, So Kevin I think.

We've had clients that came said hey, I need to cut my budget and as a work through it with US you know the sculping or taken away any of the services would hurt them more then.

Well, what we're seeing is just a continued focus on the things that we thought it would be right on the financing side I mean that large European entity went into our supply chain and third party risk product right seeing strong brand for for Master data management right really understanding.

If they didn't do it and so we just got some really great mission critical Cape.

Capabilities that were really pardon.

Partnering well with our clients were servicing our clients better than we've ever service, some adding more value capability.

And what the risk exposure is really taking this time, but sometimes when things are flying 100 miles down the highway about actually starting to think about okay. What's your longer term data strategy because that is a critical thing as we move forward a lot of these advancements in technology a lot of these advancements in AI et cetera.

That's where.

You know I've asked our team just to stay focused on there is not the macro environment. What can we do every day to help our clients be better and and it's resulting in.

Positive growth, where I think.

Otherwise it'd be more challenged.

They are all great, but right. If you don't have the proper data right and the proper proprietary data, especially away.

Very helpful. Thank you.

Thank you to our instruction. Thank you. Your next question comes from Kevin Mcvey Credit Suisse. Kevin. Please go ahead.

<unk> into it and those are those are just kind of empty shelves and so for us we're <unk>.

Great. Thanks, so much hate maybe.

Definitely seen businesses.

May be taking the other side of that.

Savi and smart in terms of wanting to have strong MDM towards wanting to have strong analytics on both the financial risks and sales and marketing side sales and marketing side, Kevin what we're seeing is that that kind of I guess, they called spray and pray right.

O'brien are you seeing anything in terms of incremental demand from the infrastructure stimulus did did starting to surface in terms of maybe client activity that you call out.

Yeah, So Kevin I think.

Not necessarily.

Well, what we're seeing if it was just a continued focus on the things that we thought it wouldn't be riots on the finance side I mean.

Advantageous.

<unk> strategy during a time period, where.

Large European entity went into a supply chain and third party product right Saint strong brand for for Master data management right really understanding.

They have to be more focused to have to have higher returns so things like our audiences our datasets upfront that feed into these online.

What their risk exposure is really taking this time cause sometimes when things are flying 100 miles down the highway that.

Other digital means from an advertising perspective.

We are quite strong from that perspective, and you see that in the high single digit growth that we talked about and those solutions. So I think overall.

<unk> you know starting to think about okay. What's your longer term data strategy because like that is a critical thing as we move forward right a.

It's one of those things that we're kind of balancing as Anthony would say some of these macro challenges with our ongoing transformation and that's what's leading us to continue to be able to progress and accelerate our growth in 2003.

A lot of these advancements in technology, a lotta these advancements in AI et cetera, they're all great Alright, if you don't have the proper data right in the proper proprietary data, especially the feed into it. Those are those are just kind of empty shells and so for us we're definitely seen businesses get savvy and smart and.

Okay. It seems like it's coming together at the right time for sure.

Yes.

Okay.

Alright. Thank you there are no further questions at this time I would now like to turn the call over to Anthony Jabbour for closing remarks.

Turns out wanting to have strong M. B M till I was wanting to have drawn analytics on both the finance a risk in sales and marketing five.

Thank you as always I'd like to thank my Dun <unk> bradstreet colleagues for their exceptional efforts and helping us be stronger and stronger every day and I'd like to thank our great clients for their partnership and guidance. Thank you for your interest in Dun <unk> Bradstreet and have a wonderful rest of your day.

Sales and marketing side, Kevin what we're saying is that you know that kind of you know I guess they call. It spray and pray right is not necessarily you know a advantageous you know strategy. During the time period, where you know they have to be more focus I have to have higher returns so things like.

Thank you ladies and gentlemen. This concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.

Our audiences are datasets upfront that feed into these online.

And other digital means for a minute of advertising perspective, we're quite strong from that perspective, and you see that in the high single digit growth that we talked about and no solutions. So yeah. I think overall you know it's it's one of those things that were kind of balancing is Anthony would say some of these macro challenges with our ongoing transformation.

<unk> and that's what's waiting us to continue to be able to progress and accelerate our growth in 2003.

It seems like it's coming together at the right time for sure.

[laughter].

Alright. Thank you there are no further questions at this time I would now like to turn the call over to Anthony Debor for closing remarks.

Thank you as always I'd like to thank Mike Dunn, and Bradstreet colleagues for their exceptional efforts and helping us be stronger and stronger every day and I'd like to thank our great climbed to the partnership and guidance. Thank you for your interest in Dunn and Bradstreet and have a wonderful rest of your day.

Thank you ladies and gentlemen. This concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.

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