Q1 2024 Dun & Bradstreet Holdings Inc Earnings Call

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Speaker Change: Ladies and gentlemen, this is the operator today's conference is scheduled to begin momentarily until that time your lines will remain on music hold thank you for your patience.

Speaker Change: [music].

Operator: Good morning, ladies and gentlemen, and welcome to the Dun & Bradstreet First Quarter 2024 Earnings Conference Call. At this time, all lines are in a listen-only mode.

Speaker Change: Good morning, ladies and gentlemen, and welcome to the Darling Bradstreet first quarter 'twenty 'twenty four earnings conference call. At this time all lines are in a listen only mode. Following the presentation, we will conduct a question and answer session.

Operator: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, the 2nd of May, 2024. I would now like to turn the conference over to Mr. Sean Anthony, VP, Corporate FP&A. Please go ahead, sir.

Speaker Change: At any time during this call you acquire immediate assistance. Please press star zero for the operator.

Speaker Change: This call is being recorded on Thursday, the second of May 'twenty 'twenty four.

Speaker Change: I would now like to turn the conference over to Mr. Shine Anthony VP corporate <unk>. Please go ahead Sir.

Sean Anthony: Thank you. Good morning, everyone, and thank you for joining us for Dun & Bradstreet's Financial Results Conference call for the first quarter of 2024. On the call today, we have Dun & Bradstreet CEO Anthony Jabbour and CFO Bryan Hipsher. Anthony will begin with an overview of our first quarter results, provide a few strategic updates on what's driving our growth outlook, and then pass it to Bryan for an in-depth financial review. We will then finish up with Q&A and a few closing remarks.

Sean Anthony: Thank you good morning, everyone and thank you for joining us for Dun <unk> Bradstreet financial results conference call for the first quarter of 2024 on the call today, we have Dun <unk> Bradstreet, CEO, Anthony Jabbour, and CFO Bryan Hipsher.

Sean Anthony: Anthony will begin with an overview of our first quarter results provide a few strategic updates on whats driving our growth outlook.

Bryan T. Hipsher: And then pass it to Brian for an in depth financial review.

Anthony M. Jabbour: I will then finish up with Q&A and a few closing remarks.

Sean Anthony: 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. However, our actual results may differ materially from our projections due to a number of risks and uncertainties.

Speaker Change: 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 of our company and are therefore forward looking statements.

Sean Anthony: Our actual results may differ materially from our projections due to a number of risks and uncertainties the.

Sean Anthony: The risk and uncertainty 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 the reconciliation between non-GAAP financial information and GAAP financial information, is provided in the press release and supplemental slide presentation. The conference call will be available for replay via webcast through Dun & Bradstreet's Investor Relations website at investor.dnb.com. With that, I'll now turn the call over to Anthony. Thank you, Sean. Good morning, everyone.

Sean Anthony: Risks and uncertainties of forward looking statements are subject to are described in our earnings release and other SEC filings.

Sean Anthony: 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.

Sean Anthony: The conference call will be available for replay via webcast through Dun and Bradstreet Investor Relations website at Investor <unk> Dnb Dot com.

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

Anthony M. Jabbour: Thank you for joining us for our first quarter earnings call. 2024 is off to a strong start. We delivered an accelerated organic revenue growth rate of 4.3%, 50 basis points of margin expansion, and improved free cash flow conversion of 119%, a 22 percentage points versus the prior year quarter. The business continues to improve as we have shifted to mid-single-digit growth and are moving into our mid-term target of 5-7% organic revenue growth.

Anthony M. Jabbour: Thank you Sean good morning, everyone and thank you for joining us for our first quarter earnings call.

Anthony M. Jabbour: 2024 is off to a strong start we delivered an accelerated organic revenue growth rate of four 3%.

Anthony M. Jabbour: 50 basis points of margin expansion and improve free cash flow conversion of 119%.

Anthony M. Jabbour: 22 percentage points versus the prior year quarter.

Anthony M. Jabbour: The business continues to improve as we have shifted to mid single digit growth and are moving into our midterm target of 5% to 7% organic revenue growth.

Anthony M. Jabbour: With the vast majority of our revenues at or above the high end of our midterm range, we have more conviction now that we can drive towards the higher end of that range over the coming years, as we bring more innovation to strengthen our existing solutions portfolio. It's exciting to see the investments we've made materialize into consistently improving revenue growth, profitability, and free cash flow generation. And the team and I look forward to bringing even more of that to bear in the near future. And with the leverage coming down to 3.7 times and headed towards 3.5 times by the end of the year, our board also authorized a share repurchase program of up to 10 million shares through 2027.

Anthony M. Jabbour: With the vast majority of our revenues at or above the high end of our mid term range, we have more conviction now.

Anthony M. Jabbour: We can drive towards the higher end of that range over the coming years as we bring more innovation to strengthen our existing solutions portfolio.

Anthony M. Jabbour: It's exciting to see the investments we've made materialize into consistently improving revenue growth profitability and free cash flow generation and the team and I look forward to bringing even more of that to bear in the near future.

Anthony M. Jabbour: And with the leverage coming down to three seven times and headed towards three five times by the end of the year.

Anthony M. Jabbour: Our board also authorized a share repurchase program plus the 10 million shares through 2027.

Anthony M. Jabbour: While our capital allocation focus remains on organically growing the business and deleveraging the balance sheet, we also want to give ourselves the flexibility to be opportunistic in light of the significant disconnect we see between our valuation and our financial performance relative to our peers. Our retention rates are rock-solid at 96%, and combined with the improvements we have made in cross-sell, up-sell, new logo acquisition, new solution innovation, and pricing, we are bringing a holistic approach to our improved growth algorithm.

Anthony M. Jabbour: While our capital allocation focus remains on organically growing the business deleveraging the balance sheet. We also wanted to give ourselves the flexibility to be opportunistic in light of the significant disconnect. We see with our valuation against our financial performance relative to our peers.

Anthony M. Jabbour: Our retention rates are rock solid at 96%.

Anthony M. Jabbour: Bind with improvements we have made in cross sell upsell new logo acquisition, new solution innovation and pricing, we are bringing a holistic approach to our improved growth algorithm.

Anthony M. Jabbour: It all begins with the investments we've made in our data supply chain and our ongoing cloud upgrades that have allowed us to significantly improve our data and analytic offerings. Our Vitality Index is now at 32% overall and is a reflection of our clients utilizing our most modern solutions and taking on net new innovations that we are now producing every quarter. With new solutions to sell, our sales force is bringing incremental value propositions to our customers through cross-sell and up-sell efforts, and we expect another one to two points of growth to materialize in 2025 and into 2026 from those efforts.

Anthony M. Jabbour: It all begins with the investments we've made in our data supply chain and our ongoing cloud upgrades that have allowed us to significantly improve our data and analytic offerings.

Anthony M. Jabbour: Our vitality index is now at 32% overall and is a reflection of our clients utilizing our most modern solutions and taking on net new innovation and we are now producing every quarter.

Anthony M. Jabbour: With new solutions to sell our Salesforce is bringing incremental value propositions to our customers through cross sell and upsell efforts and we expect another one to two points of growth to materialize in 2025 and enter 2026 from those efforts.

Anthony M. Jabbour: Increased growth from pricing is also a reflection of the improvements we've made, and while this year is expected to deliver around 2.5% growth from price, we expect to see closer to 3 to 3.5% growth in 2025 and beyond. The first quarter was another strong quarter of execution from both an operational and financial perspective.

Anthony M. Jabbour: Increased growth from pricing is also reflection of the improvements we've made and while this year is expected to deliver around two 5% growth from price, we expect to see closer to 3% to three 5% growth in 2025 and beyond.

Anthony M. Jabbour: The first quarter was another strong quarter of execution from both an operational and financial perspective.

Anthony M. Jabbour: While the overall solution portfolio is performing well, I wanted to take some time to highlight a few areas that are really exciting and we believe will drive the next phase of our growth story. Beginning with our finance and risk solutions, I want to share a deeper view into what we are doing with our third-party supply chain risk management solution. Those solutions are growing to nearly $200 million in annual revenues, and we saw the first quarter grow by nearly 30% on a global basis.

Anthony M. Jabbour: Now while the overall solution portfolio is performing well I wanted to take some time to highlight a few areas that are really exciting and we believe will drive the next phase of our growth story.

Anthony M. Jabbour: Beginning with our finance and risk solutions I want to share a deeper view into what we're doing in our third party supply chain risk management solutions.

Anthony M. Jabbour: Those solutions are growing to nearly $200 million in annual revenues and we saw the first quarter grow nearly 30% on a global basis.

Anthony M. Jabbour: Clients and prospects throughout the world continue to need better data, analytics, and insights into the risk profile of the most critical vendors and third parties. But, the definition of risk continues to expand each and every day.

Anthony M. Jabbour: Clients and prospects throughout the world continue to need better data analytics and insights into the risk profile of the most critical vendors and third parties.

Anthony M. Jabbour: While the definition of risk continues to expand each and every day.

Anthony M. Jabbour: Expectations and regulations around sustainability, social, compliance, financial, cyber, and governance continue to rise, and more and more businesses are coming to us as the one-stop shop to solve their needs. We believe the depth and breadth of our private company data throughout the world puts us at a significant advantage over others, and we will continue to pursue rapid expansion and proliferation of our risk analytics and associated solution sets to our existing clients and prospects.

Anthony M. Jabbour: Expectations from regulations around sustainability, social compliance financial cyber and governance continue to rise and more and more businesses are coming to us as the one stop shop to solve their needs.

Anthony M. Jabbour: We believe the depth and breadth of our private company data throughout the world puts us at a significant advantage to others. We will continue to pursue rapid expansion and proliferation of our risk analytics and associated solution sets to our existing clients and prospects.

Anthony M. Jabbour: With a total addressable market of nearly $10 billion and a relatively low penetration rate among our existing finance solutions customer base of less than 10%, the cross-sell opportunity is significant, let alone the ability to secure new logos in regions of the world that are lower penetrated, such as Sweden, Germany, and others in Central Europe, Latin America, and Asia.

Anthony M. Jabbour: With a total addressable market of nearly $10 billion and our relatively low penetration into our existing finance solutions customer base of less than 10%.

Anthony M. Jabbour: Cross sell opportunity is significant.

Anthony M. Jabbour: Let alone the ability to secure new logos in regions of the world that are lower penetrated such as Sweden, Germany, and others in Central Europe, Latin America and Asia.

Anthony M. Jabbour: While understanding who you are doing business with is top of mind, another topic that is just as relevant to our clients is managing and mastering first and third-party data in the coming age of generative artificial intelligence. Our Master Data Management, or MDM, solutions in both North America and international grew double digits with total growth of just over 10%. In North America, we continue to see expansion through the addition of complementary datasets, price increases, and utilization of the solution across more and more functional areas within a large corporation.

Anthony M. Jabbour: So while understanding who you're doing business with this top of mind. Another topic that is just as relevant to our clients is managing and mastering first and third party data in the coming age of generative artificial intelligence.

Anthony M. Jabbour: Our master data management or MDM solutions in both North America and international grew double digits with total growth of just over 10%.

Anthony M. Jabbour: In North America, we continue to see expansion through the addition of complementary datasets price increases and the utilization of the solution across more and more functional areas within a large corporation.

Anthony M. Jabbour: Our best-in-class entity resolution and matching process identifies unique business entities, which enable the creation of commonly shared business insights and a master client supplier record. While cross-sell and up-sell is the key driver of growth in North America, for the international side, the introduction of data blocks and D&D Connect has created strong demand from new logos. One of the exciting parts of our earlier acquisition of BizNode was the direct access to key clients in the region. For instance, while the Scandinavian economy is not built on financial institutions, it has a significant manufacturing and industrial production presence.

Anthony M. Jabbour: Our best in class entity resolution and matching process identifies unique business entities, which enable the creation of commonly shared business insights and a master client supplier record.

Anthony M. Jabbour: And while cross sell and upsell is the key driver of growth in North America for the international side. The introduction of data blocks in the E&P connect have created strong demand from new logos.

Anthony M. Jabbour: One of the exciting parts of our earlier acquisition of Biz node with a direct access to key clients in the region.

Anthony M. Jabbour: For instance, while Scandinavian economy is not built on financial institutions and continue into significant manufacturing and industrial production presence.

Anthony M. Jabbour: These types of companies are a perfect fit for our global MDM data and analytics capabilities, not to mention third-party and supply chain risk management, which I mentioned earlier. And what really works for us is when we get into the core of a company's data strategy, embed the DUNS number and our parent-child hierarchy into their master client and our master supplier record. This lays the groundwork for a symbiotic relationship for companies that first master and manage their data in an organized and curated manner, allowing for the offensive and defensive use cases we provide clients to be scalable and sustainable for years to come.

Anthony M. Jabbour: These types of companies are a perfect fit for our global MDM data and analytics capabilities not to mentioned third party supply chain risk management, which I mentioned earlier.

Anthony M. Jabbour: And what really works for us because when we get into the core of our company's data strategy embed the dun's number and our.

Anthony M. Jabbour: Parent child hierarchy into their master client and our Master supplier Records.

Anthony M. Jabbour: This lays the groundwork for symbiotic relationship for companies that first master and manage their data in an organized deteriorated management.

Anthony M. Jabbour: Allowing for the offensive and defensive use cases, we provide clients to be scalable and sustainable for years to come.

Anthony M. Jabbour: The total addressable market for master data management is over $15 billion, and we have less than 10% of our clients using MDM across finance and risk and sales and marketing, which means that the runway for growth through the next 5 to 10 years is a great opportunity. These are two really exciting areas of what we are doing today.

Anthony M. Jabbour: The total addressable market for Master data management is over $15 billion, and we have less than 10% of our clients using MDM across finance and risk and sales and marketing.

Anthony M. Jabbour: Which means that the runway for growth through the next five to 10 years is a great opportunity.

Anthony M. Jabbour: These are two really exciting areas of what we're doing today.

Anthony M. Jabbour: But before I move on to a few key wins in the quarter, I want to provide a quick update on where we are in our Gen-AI progress, as we believe it could be a significant tailwind in the future. It's exciting to see the rapid growth and increased awareness of Gen-AI over the past year, which has led to many organizations coming to us for guidance and support. Our trusted data has been among the broadest and deepest commercial data sets in the world.

Anthony M. Jabbour: Before I move on to a few key wins in the quarter I wanted to provide a quick update on where we are and our gen. AI progress as we believe it could be a significant tailwind in the future.

Anthony M. Jabbour: It's exciting to see the rapid growth and increased awareness of Gen AI over the past year.

Anthony M. Jabbour: Which has led to many organizations coming to us for guidance and support.

Anthony M. Jabbour: Our trusted data had been among the broadest and deepest commercial datasets in the world.

Anthony M. Jabbour: Our data, and more specifically, our MDM solutions, are becoming a foundational element to ensure Gen-AI answers are accurate and relevant. It is also critically important to highlight that our focus on, and commitment to, responsible and trustworthy AI is foundational to all we do, and is embedded in our processes, underpinned by our AI ethics policy. Recognizing customers' concern about hallucinations, we are committed to transparency and showing our work in our Gen AI product.

Anthony M. Jabbour: Our data and more specifically, our MDM solutions are becoming a foundational element to ensure the gen. AI answers are accurate and relevant.

Anthony M. Jabbour: It is also critically important to highlight that our focus on and commitment to responsible and trustworthy AI is foundational to all we do and it's embedded in our processes underpinned by our AI ethics policy.

Anthony M. Jabbour: Recognizing customers concerned about hallucination, we are committed to transparency and showing our work and our gen AI products.

Anthony M. Jabbour: To this end, we've created explainability and traceability features in our AI agents that allow our customers to audit in real time what the tool is doing and to review the raw data that was used to generate a response. What's becoming apparent is that while many LLMs are popping up, there is clearly a limited amount of truly differentiated and reliable data sources. In our d&b.ai labs, we have tested the top large language models, and what is clear is that even the best models built on poor data deliver poor results, with significant amounts of hallucinations and drift.

Anthony M. Jabbour: To this end, we've created explained ability and traceability features and our AI agents, which allows our customers to audit in real time with a tool is doing and to review the raw data that was used for generating a response.

Anthony M. Jabbour: Whats, becoming apparent is that while many llm's are popping up there are clearly a limited amount of truly differentiated and reliable data sources.

Anthony M. Jabbour: And our D&B Dot AI labs, we have tested the top large language models. What is clear is that even the best model built on poor data delivers pool results with significant amounts of hallucinations and drift. However.

Anthony M. Jabbour: However, an average LLM with data like ours produces superior results with accuracy that can be relied upon. So, with our unique third-party risk data and one of the premier models out today, Mask Procurement is the newest Gen AI solution that we are co-developing with IBM that leverages the Dun & Bradstreet data cloud, real-time business intelligence, and analytics, as well as IBM technology. Cash procurement simplifies, accelerates, and reduces the cost of certain essential procurement decisions.

Anthony M. Jabbour: However on average LLM with data like ours produces superior results with the accuracy that can be relied upon.

Anthony M. Jabbour: So with our unique third party risk data and one of the Premier models out today.

Anthony M. Jabbour: Procurement is the newest <unk> AI solution that we are co developing with IBM that leverages. The Dun <unk> Bradstreet data cloud real time business intelligence and analytics as well as IBM technology.

Anthony M. Jabbour: As procurement simplifies and accelerates and reduces the cost of certain central procurement decisions.

Anthony M. Jabbour: It empowers professionals to access new data and insight on current and prospective suppliers, offering a detailed perspective on company relationships to drive savings and efficiencies and improve risk management. The product will deliver answers derived from customer-specific information and Dun & Bradstreet Hldg supplier list data via data block. We are also launching D&D Hoover's conversational list builder. It's an AI capability to generate targeted prospect audience and contact lists in partnership with Google Vertex AI.

Anthony M. Jabbour: It empowers professionals to access new data and insights on current and prospective suppliers offering a detailed perspective on company relationships to drive savings and efficiencies and improved risk management.

Anthony M. Jabbour: The product will deliver answers derived from customer specific information.

Anthony M. Jabbour: Dun and bradstreet supplier risk data biodata blocks.

Anthony M. Jabbour: We are also launching D&B Hoover's conversational builder.

Anthony M. Jabbour: Hey, Jen AI capability to generate targeted prospect audience and contactless in partnership with Google vertex AI.

Anthony M. Jabbour: For this solution, we leverage natural language processing to allow our customers to query our data in a more natural way. Huber's conversational list builder will be the first of many D&B conversations with your data assistant, in which we look to democratize and proliferate the utilization of our data and analytics throughout our portfolio of solutions.

Anthony M. Jabbour: For this solution, we leveraged natural language processing to allow our customers to query our data in a more natural way.

Anthony M. Jabbour: Hoover's conversational list builder will be the first of many D&B talked with your data as systems now.

Anthony M. Jabbour: As we look to democratize and proliferate the utilization of our data and analytics throughout our portfolio of solutions.

Anthony M. Jabbour: In the end, we are very proud of the unique proprietary and linked data that we own. And as we look to Gen-AI shifting from one-off pilots to broader adoption, we are excited about the heightened, elevated importance our data will receive. If I can draw a parallel to Formula One racing, billions have been spent creating a race car to win, and teams want to feed their engines with the highest quality, highest octane fuel to drive maximum performance.

Anthony M. Jabbour: In the end, we are very proud of the unique proprietary and linked data that we own.

Anthony M. Jabbour: And as we look to Jan AI shifting from one off pilots to broader adoption. We are excited about the heightened elevated importance our data will recede.

Anthony M. Jabbour: If I can draw parallel to formula one racing billions have been spent creating a racecar to win the teams want to feed their engines with the highest quality highest octane fuel to drive maximum performance.

Anthony M. Jabbour: And similarly for Gen AI to be successful data is going to be what fuels. These models and we look forward to supporting our clients and prospects in this next phase of their business evolution.

Anthony M. Jabbour: And similarly, for Gen AI to be successful, data is going to be what fuels these models. And we look forward to supporting our clients and prospects in this next phase of business evolution. And now I'll highlight a few client wins in the quarter. Starting with North America, I want to touch on a few examples of how we support our 96% gross retention rates and also how we are utilizing multi-year contracts to create built-in growth through price escalators.

Anthony M. Jabbour: And now I'll highlight a few client wins in the quarter.

Anthony M. Jabbour: Starting with North America, I want to touch on a few examples of how we support our 96% gross retention rates and also how we are utilizing multi year contracts to create built in growth through price escalators.

Anthony M. Jabbour: Two of the top four banks in the United States renewed a piece of their relationship with us through such contracts. Both clients are leveraging our sales and marketing solutions to drive more efficient and effective customer acquisition, market analysis, and to create offers for commercial lines of business and cards. Our clients see us as the provider that best supports their ability to be the first to the opportunity of a newly formed small business while also allowing them to make the most appropriate offer to fit the needs and risk profile of that process.

Anthony M. Jabbour: Those are the top four banks in the United States renewed a piece of their relationship with us through such contracts.

Anthony M. Jabbour: Both clients are leveraging our sales and marketing solutions to drive more efficient and effective customer acquisition market analysis and to create offers for commercial lines of business and card.

Anthony M. Jabbour: Our clients see us as the provided our best supports their ability to be the first to the opportunity of a newly formed small business, while also allowing them to make the most appropriate offer to fit the needs and risk profile of that trust.

Anthony M. Jabbour: Another example of retaining and expanding a large existing client was with the Food and Drug Administration, or FDA. The FDA deals with a large number and types of businesses throughout the world, and the utilization of our best-in-class master data management, supply chain, risk management, import safety, business intelligence, analytics, and data science offerings helps them to create consistency and accuracy as data is exchanged throughout their platform. And our final highlighted win in North America is one of the world's largest insurance and reinsurance firms that entered into another multi-year deal with us.

Anthony M. Jabbour: Another example of retain and expand of our large existing client was with the food and drug administration or FDA.

Anthony M. Jabbour: The FDA deal with a large amount and types of businesses throughout the world and the utilization of our best in class Master data management supply chain risk management important safety business intelligence.

Anthony M. Jabbour: Analytics and data science offerings helps them to create consistency and accuracy as data is exchanged throughout there.

Anthony M. Jabbour: And our final highlighted win in North America is one of the world's largest insurance reinsurance firms that entered into another multi year deal with us they use D&B firmer graphic data to support the master data initiatives.

Anthony M. Jabbour: They used EMB firmographic data to support their master data initiative, finance analytics for global underwriting, as well as Huber's and our global reference solutions for marketing and prospecting. Now moving on to international, we saw a common theme of strong renewals and elevated master data management and third party risk solution sales. To start, we secured a five-year contract with one of the world's leading manufacturers and providers of compressed air products and services, Taser, Compressor, and to fuel their master data capabilities.

Anthony M. Jabbour: Finance analytics for global underwriting as well as Hoover's and our global reference solutions for marketing and prospecting.

Anthony M. Jabbour: And now moving on to international we saw a common theme of strong renewals and elevated master data management and third party risk solution sales.

Anthony M. Jabbour: To start we secured a five year contract with one of the world's leading manufacturers and providers of compressed air products and services changes.

Anthony M. Jabbour: Zero compressor and.

Anthony M. Jabbour: To fuel their master data capabilities.

Bryan T. Hipsher: Similarly, we also secured a three-year contract with one of the leading global logistics service providers, Raines Group, to also support their master data and CRM needs. Additionally, one of the largest European auto manufacturers also renewed and expanded a multi-year deal with Significant Upsell to provide supplier onboarding and monitoring in the proprietary platform with data delivered via data block. And lastly, we captured another enterprise win in Asia with a leading financial institution providing the client with our best-in-class credit decisioning tools.

Anthony M. Jabbour: Similarly, we also secured a three year contract with one of the leading global logistics service providers, bringing US group to also support master data and CRM needs.

Bryan T. Hipsher: One of the largest European auto manufacturers also renewed and expanded the multiyear deal with significant up sell to provide supplier onboarding and monitoring and the proprietary platform with data delivered by a data blocks.

Bryan T. Hipsher: And lastly, we captured another enterprise win in Asia, with a leading financial institution, providing the clients are best in class credit Decisioning tools.

Bryan T. Hipsher: Overall, we're off to a strong start to 2024. We're on track to achieve our full year guidance for all key metrics and are making significant progress in some pretty exciting areas to support our growth for the years to come. With that, I'd now like to turn the call over to Bryan to discuss our financials in more detail and give a quick update on our outlook for the remainder of the year.

Bryan T. Hipsher: Overall, we're off to a strong start to 2024, we are on track to achieve our full year guidance for all key metrics and are making significant progress and some pretty exciting areas to support our growth for the years to come with.

Anthony M. Jabbour: With that I'd now like to turn the call over to Brian to discuss our financials in more detail and give a quick update on our outlook for the remainder of the year.

Bryan T. Hipsher: Thank you, Anthony, and good morning, everyone. Turning to slide one, on a gap basis, first quarter revenues were $565 million, an increase of 4.5% compared to the prior year quarter and an increase of 4.1% before the effect of foreign exchange. The net loss for the first quarter was $23 million, or a diluted loss per share of $0.05, compared to a net loss of $34 million for the prior year quarter. The $11 million decrease in net loss for the three months ended March 31, 2024, compared to the prior year quarter, was primarily due to a higher tax benefit, improved operating results, and a non-cash gain related to the interest rate swap amendment, partially offset by debt extinguishment costs in connection with the term loan amendment.

Bryan: Thank you Anthony and good morning, everyone.

Brian: Turning to slide one on a GAAP basis first quarter revenues were $565 million.

Bryan T. Hipsher: An increase of four 5% compared to the prior year quarter, and an increase of four 1% before the effect of foreign exchange.

Bryan T. Hipsher: Net loss for the first quarter was $23 million.

Bryan T. Hipsher: Or a diluted loss per share of <unk>.

Bryan T. Hipsher: Compared to a net loss of $34 million for the prior year quarter.

Bryan T. Hipsher: The $11 million decrease in net loss for the three months ended March 31, 2024 compared to the prior year quarter was primarily due to a higher tax benefit improved operating results.

Bryan T. Hipsher: And a noncash gain related to the interest rate swap amendment, partially offset by debt extinguishment costs in connection with the term loan amendment.

Bryan T. Hipsher: Turning to slide 2, I'll now discuss our adjusted results for the first quarter. First quarter revenues for the total company were $565 million, an increase of 4.5% compared to the prior year quarter and an increase of 4.1% before the effect of foreign exchange. The increase in revenues was driven by balanced growth in our North America and international segments. International growth was partially offset by the impact of the divestiture of a non-core business-to-consumer marketing business in Finland in the fourth quarter of 2023, and therefore revenues on an organic, constant currency basis were up 4.3%.

Speaker Change: Turning to slide two I will now discuss our adjusted results for the first quarter.

Bryan T. Hipsher: First quarter revenues for the total company were $565 million in.

Bryan T. Hipsher: An increase of four 5% compared to the prior year quarter, and an increase of four 1% before the effect of foreign exchange.

Bryan T. Hipsher: The increase in revenues was driven by balanced growth in our North America and international segments.

Bryan T. Hipsher: International growth was partially offset by the impact of the divestiture of a noncore business to consumer marketing business in Finland in the fourth quarter of 2023, and therefore revenues on an organic constant currency basis were up four 3%.

Bryan T. Hipsher: First quarter adjusted EBITDA for the total company was $201 million, an increase of $11 million, or 6%. This was primarily due to increased organic revenues and lower data acquisition costs, partially offset by associated personnel and cloud infrastructure costs supporting our Gen-AI and other growth initiatives. First quarter adjusted even margin was 36%, an increase of 50 basis points compared to the prior year quarter.

Bryan T. Hipsher: First quarter adjusted EBITDA for the total company was $201 million, an increase of $11 million or.

Bryan T. Hipsher: Four 6%.

Bryan T. Hipsher: This was primarily due to increased organic revenues and lower data acquisition costs, partially offset by associated personnel and cloud infrastructure costs.

Bryan T. Hipsher: Our journey II and other growth growth initiatives.

Bryan T. Hipsher: First quarter adjusted EBITDA margin was 36% an increase of 50 basis points compared to the prior year quarter.

Bryan T. Hipsher: First quarter adjusted net income was $85 million, or adjusted earnings per share of 20 cents, compared to $81 million, or 19 cents per share, in the first quarter of 2023. The increase was primarily attributable to higher adjusted EBITDA and lower tax expense in the current year quarter, partially offset by higher depreciation and amortization expense as our investments in new solutions and significant upgrades have moved into production. Turning now to slide three, I'll now discuss the results for our two segments, North America and the United States.

Bryan T. Hipsher: First quarter, adjusted net income was $85 million or.

Bryan T. Hipsher: Our adjusted earnings per share of <unk> <unk>.

Bryan T. Hipsher: To $81 million or <unk> 19 per share in the first quarter of 2023.

Bryan T. Hipsher: Increase was primarily attributable to higher adjusted EBITDA and lower tax expense in the current year quarter, partially offset by higher depreciation and amortization expense as our investments in new solutions and significant upgrades have moved into production.

Bryan T. Hipsher: Turning now to slide three I will now discuss the results for our two segments North America.

Bryan T. Hipsher: Ashley.

Bryan T. Hipsher: In North America, revenues for the first quarter were $387 million, an increase of 3% from the prior year quarter and 3.2% on a constant currency basis. In finance and risk, revenues were $208 million, an increase of $7 million, or 3%, due to strong growth in our third-party supply chain risk management and finance solution, partially offset by decreased revenues from our credibility solution. For sales and marketing, revenues were $178 million, an increase of $5 million, or 3%.

Bryan T. Hipsher: In North America revenues for the first quarter were $387 million.

Bryan T. Hipsher: An increase of 3% from prior year quarter, and three 2% on a constant currency basis.

Bryan T. Hipsher: And financial risk revenues were $208 million, an increase of $7 million or 3% due to strong growth in our third party supply chain risk management, and finance solutions, partially offset by decreased revenues from our credibility solutions.

Bryan T. Hipsher: For sales and marketing revenues were $178 million, an increase of $5 million.

Bryan T. Hipsher: 3% sales.

Bryan T. Hipsher: Sales and marketing growth was primarily driven by higher revenues from our master data management solution, partially offset by decreased revenues from our other marketing solutions. North America first quarter adjusted EBITDA was $152 million, an increase of $2 million, or 1%. In North America, EBITDA margin was 39%, a decrease of 90 basis points from the prior year quarter. This was primarily due to revenue growth and lower data acquisition costs, partially offset by higher infrastructure costs as we upgrade off of legacy infrastructure onto a modern cloud platform.

Bryan T. Hipsher: Sales and marketing growth was primarily driven by higher revenues from our master data management solutions, partially offset by decreased revenues for our other marketing solutions.

Bryan T. Hipsher: North America first quarter, adjusted EBITDA was $152 million, an increase of $2 million or 1% and North America EBITDA margin was 39% a decrease of 90 basis points from the prior year quarter.

Bryan T. Hipsher: This was primarily due to revenue growth and lower data acquisition costs, partially offset by higher infrastructure costs. As we upgraded also of legacy infrastructure onto a modern cloud platform.

Bryan T. Hipsher: And while we distribute our solutions around North America and our international markets, our significant investments in product development and technology are contained within our North America segment, as it is the primary innovation engine. Turn to page 5-4.

Bryan T. Hipsher: And while we distribute our solutions around North America, and our international market, our significant investments in product development and technology are contained within our North American segment.

Bryan T. Hipsher: <unk> is.

Bryan T. Hipsher: The primary innovation engine.

Bryan T. Hipsher: Turning to slide four.

Bryan T. Hipsher: In our international segment, first quarter revenue increased 7% to $178 million, or an increase of 6% before the effect of foreign exchange, and an increase of 6.8% on an organic constant currency basis. Finance and risk revenues increased by $120 million, an increase of 8% or an increase of 7% before the effect of foreign exchange. This was attributable to growth across all markets, including higher revenues from the United Kingdom and Europe, primarily attributable to growth in finance analytics, API solutions, and our third-party risk and compliance solutions, along with increased revenues from Greater China driven by growth in finance analytics.

Bryan T. Hipsher: In our international segment first quarter revenues increased 7% to $178 million.

Bryan T. Hipsher: Or an increase of 6% before the effect of foreign exchange and an increase of six 8%.

Bryan T. Hipsher: Panic constant currency basis.

Bryan T. Hipsher: Finance and risk revenues for $120 million, an increase of 8% or an increase of 7% before the impact of foreign exchange.

Bryan T. Hipsher: This was attributable to growth across all markets, including higher revenues from the United Kingdom, and Europe, primarily attributable to growth in finance analytics, API solution, and our third party risk and compliance solutions.

Bryan T. Hipsher: Along with increased revenues from greater China, driven by growth in analytics.

Bryan T. Hipsher: Sales and marketing revenues were $58 million, an increase of 6% or an increase of 5% before the effective foreign exchange. On an organic basis, revenues grew 6%, primarily due to higher revenues from the UK and Europe, driven by new-to-market and localized solutions, such as Hoovers and Direct Plus, as well as higher overall data sales. In the first quarter, International Adjusted EBITDA of $64 million increased $9 million, or 16%, and Adjusted EBITDA Margin was 36%, an increase of 250 basis points compared to the prior year quarter.

Bryan T. Hipsher: Sales and marketing revenues were $58 million.

Bryan T. Hipsher: An increase of 6% already increase of 5% before the effect of foreign exchange.

Bryan T. Hipsher: On an organic basis revenues grew 6%, primarily due to higher revenues from the U K and Europe, driven by new to market and localized solutions, such as Hoover's and derive plus as well as higher overall data sale.

Bryan T. Hipsher: First quarter International adjusted EBITDA of $64 million increased $9 million or 16% and adjusted EBITDA margin was 36% an increase of 250 basis points compared to the prior year quarter.

Bryan T. Hipsher: The increase in adjusted EBITDA was primarily due to revenue growth from the underlying business and foreign exchange gains as certain foreign currencies of our international market strengthened against the U.S. dollar during the current year quarter, partially offset by higher net personnel costs. TURNING FIVE O'CLOCK, Fund 5 contains the details of our capital structure as of the quarter end. At the end of March 31st, 2024, we had cash and cash equivalents of $260 million, a total principal amount of debt of $3,564 million with a weighted average interest rate of 6%.

Bryan T. Hipsher: The increase in adjusted EBITDA was primarily due to revenue growth from the underlying business and foreign exchange gains as certain foreign currencies of our international market strengthened against the US dollar during the current year quarter, partially offset by higher personnel costs.

Bryan T. Hipsher: Turning to slide five.

Bryan T. Hipsher: Slide five contains the details of our capital structure as of quarter end.

Bryan T. Hipsher: At the end of March 31, 2024, we had cash and cash equivalents of $260 million in.

Bryan T. Hipsher: And total principal amount of debt of $3 $564 million with a weighted average interest rate of 6%.

Bryan T. Hipsher: Currently, 90% of our debt is either fixed or hedged, and as of March 31, 2024, we have $850 million available on our $850 million Revolver credit facility. Our leverage ratio... was 3.7 times on a net basis, and the credit facility senior secure net leverage ratio was 3.2 times. We expect to be at around 3.5 times on a net basis by the end of this year, as we continue to migrate down towards our medium-term range of 3 to 3.25 times in 2025. And now, turning to slide six.

Bryan T. Hipsher: Currently 90% of our debt is either fixed or hedged and as of March 31, 2024, we had $850 million available on our $850 million revolver credit facility.

Bryan T. Hipsher: Leverage ratio.

Bryan T. Hipsher: It was three seven times on a net basis and the credit facility senior secured net leverage ratio was three two times.

Bryan T. Hipsher: We expect to be at around three five times on a net basis by the end of this year as we continue to migrate down towards our medium term range of three to three to five times in 2025.

Bryan T. Hipsher: And now turning to slide six.

Bryan T. Hipsher: Our L1 for 2024 remains unchanged. Total revenues after the effect of foreign currency are expected to be in the range of $2,400 million to $2,440 million, or an increase of approximately 3.7% to 5.4%. This concludes an assumption of a modest headwind in the first three quarters of the year, partially offset by a modest tailwind in the fourth quarter due to the effect of foreign currency related to the expected variances between the U.S. dollar, the euro, the British pound, and the Swedish krona.

Bryan T. Hipsher: Our outlook for 'twenty 'twenty four remain unchanged total revenues after the effect of foreign currency are expected to be in the range of 2000 and $400 million in 2000 $440 million or an increase of approximately three 7% to five 4%.

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

Bryan T. Hipsher: Revenues on an organic constant currency basis are expected to be in the range of four 1% to five 1% for the full year.

Bryan T. Hipsher: Adjusted EBITDA is expected to be in the range of $930 million to $950 million.

Bryan T. Hipsher: And adjusted EPS is expected to be in the range of $1 to $1 or so.

Bryan T. Hipsher: Revenues on an organic constant currency basis are expected to be in the range of 4.1% to 5.1% for the full year, adjusted EGAP is expected to be in the range of $930 to $950 million, and adjusted EPS is expected to be in the range of $1 to $1.04. Additional modeling details underlying our outlook are as follows. We expect interest expense to be around $220 million, and depreciation and amortization expense to be in the range of $125 million to $135 million, excluding incremental depreciation and amortization expense resulting from purchase accounting.

Bryan T. Hipsher: Additional modeling details underlying our outlook are as follows we expect interest expense to be around $220 million.

Bryan T. Hipsher: Depreciation and amortization expense to be in the range of 125.

Bryan T. Hipsher: $135 million.

Bryan T. Hipsher: Excluding incremental depreciation and amortization expense, resulting from purchase accounting.

Bryan T. Hipsher: Adjusted effective tax rate of around 22 to 23 percent. Weighted average diluted shares outstanding of approximately 436 million, a slight increase from the original 433 million. And for CAPEX, we expect approximately $150 to $160 million of internally developed software and $45 million of property plant equipment and purchase software. Based on the results we delivered in the first quarter, our expectations for the cadence of the remaining quarters are unchanged, and we continue to anticipate operating free cash flow conversion as a percentage of adjusted net income, excluding the impact of ARS securitization, to improve as expected.

Bryan T. Hipsher: Adjusted effective tax rate of around 22% to 23%.

Bryan T. Hipsher: Weighted average diluted shares outstanding of approximately $436 million, a slight increase from the original $433 million.

Bryan T. Hipsher: And for Capex, we expect approximately $150 million to $160 million of internally developed software and $45 million of property plant equipment and purchased software.

Bryan T. Hipsher: Based on the results we delivered in the first quarter, our expectations for the cadence of the remaining quarters are unchanged and we continue to anticipate operating free cash flow conversion as a percentage of adjusted net income excluding the impact via our securitization to improve that.

Bryan T. Hipsher: Overall, we are on track for 2024 and look forward to discussing our continued progress in the upcoming new quarters. With that, we're now happy to open the call for questions. Operator, will you please open up the line?

Speaker Change: Overall, we are on track for 2024 and look forward to discussing our continued progress in the upcoming quarters with that we're now happy to open the call for questions.

Bryan T. Hipsher: Operator will you please open up the lines.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star followed by 1 on your touchtone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be answered in the order they are received. If you have previously joined the Q&A, please rejoin by pressing star 1. And if you'd like to remove yourself, please press star 2. One moment for your first question. The first question comes from Kyle Peterson with Needham. Please go ahead.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session. If you have a question. Please press star followed by one on your Touchtone phone, you'll hear three ton prompt acknowledging your request and your questions will be pulled in the order. They are received if he had previously joined the Q&A. Please re joined by pressing star one.

Kyle David Peterson: And if you'd like to remove yourself. Please press star Q1 moment for your first question.

Operator: Your first question comes from Kyle Peterson with Needham. Please go ahead.

Kyle David Peterson: Great. Good morning, and thanks for taking the questions. I wanted to start off on the buyback authorization. You know, great to see. How are you guys kind of thinking about attacking that on that front? Do you kind of anticipate it being steady, or do you guys think you'll be a little more optimistic, or opportunistic, sorry, given where the shares are currently trading at?

Operator: Okay.

Kyle David Peterson: Great. Good morning, and thanks for taking the questions I wanted to start off on the buyback authorization.

Kyle David Peterson: Great to see.

Kyle David Peterson: How are you guys kind of thinking.

Kyle David Peterson: About.

Kyle David Peterson: Attacking that on that front that you can anticipate it being steady or do you guys think you'll be a little more optimistic or opportunistic sorry, Kevin.

Kyle David Peterson: Where the shares.

Kyle David Peterson: Currently trading at.

Anthony M. Jabbour: Thank you, Kyle. The plan is really to be, you know, opportunistic with it. You know, our capital allocation strategy really is very focused, obviously, on investing in organic growth, like we talked about in deleveraging the balance sheet, and we're on track to getting our leverage to 3.5 times by the end of the year. But to your point, and obviously ours, we think the stock is very cheap right now. And when I say that, I don't mean it in a classic CEO way, arguing that his company should be worth – or her company should be worth one to two times more in value.

Speaker Change: Yes. Thank you Kyle the plan is really to be opportunistic with it.

Anthony M. Jabbour: As.

Anthony M. Jabbour: Our capital allocation strategy really is very focused obviously on investing on organic growth like we talked about in deleveraging the balance sheet and we're on track to getting our leverage to three five times by the end of the year.

Anthony M. Jabbour: To your point and to.

Anthony M. Jabbour: Obviously ours, we think the stock is very cheap.

Anthony M. Jabbour: Right now and when I say that I don't mean, it in the classic CEO way, arguing.

Anthony M. Jabbour: That is.

Anthony M. Jabbour: As companies should be worth of her companies with one to two turns more value.

Anthony M. Jabbour: We've got a very high-quality peer group led by great CEOs I respect, and their valuations are warranted. But today, based on metrics, we look at organic constant currency revenue growth, EBITDA margin, free cash flow conversion, earnings quality, leverage, cyclicality, and CAPEX as a percent of revenue. It's hard for us to not feel we're very undervalued. And when we compare ourselves against the average credit bureau, our stock would be $30. If we compare ourselves against the lowest-valued one, our stock would be $22. And I'm not even arguing today against the Info Services Group, where our stock would be $50. And that's really why we authorized, you know, this share buyback program.

Anthony M. Jabbour: We've got a very high quality peer group.

Anthony M. Jabbour: Led by Great Ceos, I respect and their valuations are warranted, but today based on metrics. We look at organic constant currency revenue growth EBIT margin free cash flow conversion earnings quality leveraged cyclicality capex as a percent of revenue it's hard for us.

Anthony M. Jabbour: To not feel were very undervalued and when we compare against the average credit Bureau, our stock would be $30 if weaker against the lowest valued one our stock would be $22.

Anthony M. Jabbour: I'm not even arguing today against the info services group, where our stock would be $50 and Thats really why we authorized.

Anthony M. Jabbour: This share buyback program.

Bryan T. Hipsher: That's really helpful, and I appreciate the thoughts there. You know, a quick follow up. I know last quarter you guys talked about some higher expenses. I think it was kind of health care costs and utilization. I guess, looking at the results and the outlook, it looks like things are relatively stable, but I just wanted to see if those trends you guys saw last quarter continued, and if so, I guess, how is that kind of layered into the current expense guide?

Speaker Change: That's really helpful and I appreciate the thoughts there.

Bryan T. Hipsher: A quick follow up I know last quarter, you guys had talked about some higher expenses I think it was kind of health care costs and utilization I guess looking at the results and the outlook.

Bryan T. Hipsher: It looks like things are relatively stable, but just wanted to see is.

Bryan T. Hipsher: Those trends you guys saw last quarter continued in and if so I guess, how is that kind of layered into current expense Scott.

Bryan T. Hipsher: Yeah, Kyle, thanks. If we look at it, really, last year, those were kind of, you know, more one-time in nature, right? So we are kind of getting back to what the normal run rates were, you know, post-pandemic medical costs, had a little bit higher on the bonus incentive side, again coming back from, I think it was in the high 80s to about target last year. And so again, we plan to reach target this year. So, you know, not a headwind from that perspective.

Bryan T. Hipsher: Yes, I think if we look at it really last year those were kind of.

Bryan T. Hipsher: More onetime in nature right. So we had kind of getting back to what the normal run rates for post pandemic off of the medical costs had a little bit higher.

Bryan T. Hipsher: On the bonus incentive side again coming back from I think it was in the high Eighty's to about target last year and so again, we plan to target. This year, so not a headwind from that perspective really the first quarter. We had 50 bps of expansion, we've talked about being a little bit flatter clearly, we're always thinking about how to drive.

Bryan T. Hipsher: Really, in the first quarter, we had 50 bits of expansion, you know; we talked about being a little bit flatter. Clearly, you know, we're always thinking about, you know, how to drive, you know, expense and expense management across the company while, you know, continuing to deliver growth. So, you know, no real changes from that perspective. And we'll continue to look to invest, as Anthony said, to accelerate organic growth. But wherever we can, you know, each and every quarter, we're looking to control expenses as much as possible and see the profitability flow through. Make sense? Thank you, and have a nice quarter.

Bryan T. Hipsher: Expansion and expense management company.

Bryan T. Hipsher: Company, while continuing to deliver the growth.

Bryan T. Hipsher: No no real changes from that perspective, and and we'll continue to look to invest as Anthony said to accelerate the organic growth.

Bryan T. Hipsher: But wherever we can each and every quarter, we're looking to.

Bryan T. Hipsher: Control expenses as much as possible and see the profitability flow through.

Speaker Change: Makes sense, thank you and nice quarter.

Operator: Thank you, Kyle. Your next question comes from Andrew.

Bryan T. Hipsher: Okay.

Operator: Your next question comes from Andrew Sierman with J.P. Morgan. Please go ahead.

Operator: Your next question comes from Andrew.

Andrew William Jeffrey: Chairman with J P. Morgan. Please go ahead.

Andrew William Jeffrey: Hi, it's Andrew.

Andrew William Jeffrey: The question was could you just commented about the overall health of your clients I know your client base is.

Andrew William Jeffrey: His broad and kind of their receptivity to buying your services, meaning.

Andrew William Jeffrey: How is the sales cycle going forward.

Andrew William Jeffrey: Cross selling and new logos.

Anthony M. Jabbour: Yeah, thank you, Andrew. I'd say overall the health of our clients is pretty consistent with where we guided them to in February. So as we looked ahead to the year and anticipated where sales would be, we feel it's pretty consistent. You know, we also do this business optimism report that we send out. And, you know, that certainly was the feedback that we saw, and we reported, you know, globally on identified, you know, confidence in the business and also identified, you know, issues with the supply chain, which has been, you know, one of the tailwinds for us and others in that market.

Andrew William Jeffrey: Yes, Thanks, Andrew I would say overall the health of our clients is.

Anthony M. Jabbour: It's pretty consistent with where we guided to in February so as we look to the year and anticipated where sales would be.

Anthony M. Jabbour: We feel it's pretty consistent and we also do this business optimism report that we send out and that certainly was the feedback that we saw and we reported globally on.

Anthony M. Jabbour: <unk> identified comp.

Anthony M. Jabbour: Confidence in the business also identified obviously issues with supply chain, which has been in a while.

Anthony M. Jabbour: The tailwind for us and others in that market.

Anthony M. Jabbour: From a sales cycle perspective.

Anthony M. Jabbour: But from a sales cycle perspective, pretty consistent, nothing really worth mentioning. And the only one I'd maybe say is a little softer right now would be our sales and marketing, some of the assets in that space, like digital marketing, and digital audience. And again, it's coming off very, you know, tough compares from Q1 of last year, where, you know, that business was very strong double digits. But I think, Andrew, you know, that's the nice balance we have.

Anthony M. Jabbour: Pretty consistent.

Anthony M. Jabbour: Nothing really work.

Anthony M. Jabbour: And why is the only one maybe.

Anthony M. Jabbour: <unk> is a little softer right now would be our sales and marketing some of the assets in that space like digital marketing digital audience and again, it's coming off very tough.

Anthony M. Jabbour: <unk> compares from Q1 of last year, where.

Anthony M. Jabbour: That business was up very strong double digits, but I think Andrew that's been a nice balance we have in our sales and marketing business as Anthony mentioned with 50%, 55% of our revenues coming through the Master data management is really sticky, it's really strong and it continues to really drive the growth in net sales and marketing and then obviously things.

Bryan T. Hipsher: But I think, Andrew, that's the nice balance we have in our sales and marketing business. As Anthony mentioned, with 50-55% of our revenues coming through master data management, it's really sticky, it's really strong, and it continues to really drive growth in that sales and marketing. And then, obviously, as things get a little bit more positive and a little bit more recovering, we expect, you know, the other sales and marketing solutions to pick up from that perspective. Yeah, absolutely.

Bryan T. Hipsher: A little bit more positive and a little bit more recovering we expect that.

Bryan T. Hipsher: Other sales and marketing solutions to pick up from that perspective, yes, absolutely.

Bryan T. Hipsher: Yes.

Speaker Change: Thank you Andrew.

Bryan T. Hipsher: Okay.

Operator: Your next question comes from Wahid Amin with Bank of America. Please go ahead.

Bryan T. Hipsher: Your next question comes from Aman <unk> with Bank of America. Please go ahead.

Wahid Nuhash Amin: Hey, it's Waheed on for Heather Balsky. Just wanted to touch on the cost question again. You called out lower data acquisition costs. What drove that this quarter? And is that more of a timing thing, or is that something we should expect to see throughout the back half of the year? Yeah.

Wahid Nuhash Amin: Hey, it's mohit on for <unk>.

Wahid Nuhash Amin: Just wanted to touch on the cost.

Wahid Nuhash Amin: Cost question again.

Wahid Nuhash Amin: You called out lower data acquisition costs are what drove that this quarter and is that more of a timing thing or is that something we should expect to come through.

Wahid Nuhash Amin: The back half of the year.

Bryan T. Hipsher: Yeah, no, thanks for the question. You know, this is one of the pieces, and you'll see it in the queue, and we want to continue to give, you know, even more, I would say, clarity from the perspective of, you know, in our cost of services, there's kind of two big chunks, right? It's data and data acquisition versus, you know, a lot of the investment in the cloud infrastructure that we're, you know, working on and improving and upgrading from that perspective.

Speaker Change: Yeah no. Thanks for the question. This is one of the pieces and Youll see it in the queue and we want to continue to give even more I would say clarity from our perspective.

Bryan T. Hipsher: And our cost of services is kind of two big chunks Friday, the data and data acquisition versus a lot of investment in the cloud infrastructure.

Bryan T. Hipsher: We're working on and improving and upgrading from that perspective. So when we look at that data and data acquisition again, that's why we're always looking to be a little bit more efficient more effective.

Bryan T. Hipsher: So, when we look at that data acquisition, again, that's where, you know, we're always looking to be a little bit more efficient, a little bit more effective. We're constantly, you know, analyzing, you know, the sources and utilizing, I would say, you know, tools, maybe not generative AI, but traditional AI, to make us more efficient, more effective in our collection and curation from that perspective. So, again, not a timing issue throughout this year, but certainly something that, you know, again, we're focused on continuing to optimize and make those processes as much, you know, as efficient as we can.

Bryan T. Hipsher: Constantly analyzing the sources.

Bryan T. Hipsher: And utilizing I would say tools, maybe not generative AI, but traditional AI to make us more efficient more effective in our collection and generation from that perspective.

Bryan T. Hipsher: Again, not a timing issue throughout this year.

Bryan T. Hipsher: But certainly something that again, we're focused on continuing to optimize and make those processes as much as most efficient as we can.

Operator: Got it. And my follow-up question is on sort of your Gen AI initiatives. You talked quite a bit about that.

Speaker Change: Got it and my follow up is on sort of your Gen AI initiatives talked quite a bit about it how should we think about the timing and the amount of spending for G&A I over the next few years.

Speaker Change: And when do you really see the benefits of these efforts in your P&L.

Bryan T. Hipsher: Yeah, it's a great question. You know, there are certainly a lot of initiatives going on in this space. And today, you know, we're in the, I'd say, early stages, and I'd say the market is also in relatively early stages with it. There's a lot of talk. But we don't anticipate a lot of revenue coming in 2024. We see maybe a point or two in 2025 and 2026, you know, as it kind of builds up.

Bryan T. Hipsher: How should we think about the timing and the amount of spending for Gen AI over the next few years? And when do you really think you will see the benefits of these efforts in your P&L? Yeah, it's a great question. You know, there's certainly a lot of initiatives.

Speaker Change: Yes, it's a great question, there's certainly a lot of initiatives going on in this space.

Bryan T. Hipsher: And today, we're I'd say early stages and I would say the market is also in relatively early stages with it there's a lot of talk.

Bryan T. Hipsher: But we don't anticipate a lot of revenue coming into 2024.

Bryan T. Hipsher: We see maybe a point or two and 25% and 26.

Bryan T. Hipsher: Kind of builds up.

Bryan T. Hipsher: But from an investment perspective, you know, it's really what we have in the guidance that we provided at the beginning of the year. So we feel very much in control of that. And we're very pleased with the momentum that we're seeing. And, you know, with the results that our team is delivering for our clients.

Bryan T. Hipsher: <unk>.

Bryan T. Hipsher: From an investment perspective.

Bryan T. Hipsher: It's really what we have.

Bryan T. Hipsher: In the guidance that we provided at the beginning of the year. So we feel very much in control of that and we're very pleased with the momentum that we're seeing.

Bryan T. Hipsher: With the results that our team is delivering for our clients.

Operator: Pardon me, do you have a follow-up?

Speaker Change: Pardon me with you do you have a follow up.

Speaker Change: Thank you.

Operator: Thanks for the great questions.

Speaker Change: Thanks, Craig.

Operator: Your next question comes from Craig Herbert with Herbert Research Partners. Please go ahead.

Operator: Your next question comes from Greg Gilbert with Herbert Research Partners. Please go ahead.

Craig Anthony Huber: Hi there, Craig Huber here. Look, I guess the main question is, I mean, you talk pretty confidently about getting to the top end now of your midterm revenue guidance here, the top end of 5 to 7% over time. Maybe talk a little bit about that, but why your increased confidence there? And obviously, that's the whole key, at least in my mind, I think investors' minds about getting your stock moving here and stuffing everything else. It's almost immaterial versus that. If you can get to the top end of that, everything will fall right in place from your perspective. So just talk about the confidence there, please. Thank you.

Craig Anthony Huber: Hi, there Craig Huber here.

Craig Anthony Huber: I guess the main question is I mean, you talked.

Craig Anthony Huber: Pretty confidently about getting to the top end now of your midterm.

Craig Anthony Huber: Revenue guidance here of top end of 5% to 7% over time, maybe talk a little about that but why you increased confidence there and obviously that's the whole key at least in my mind that I think investors minds at the desk at your stock move inherent stuff everything else's.

Craig Anthony Huber: So it's almost immaterial versus that if you can get the top end of that M&A will fall right in place from your perspective. So just talk at the conference. There. Please thank you.

Anthony M. Jabbour: Sure, Chris. Thanks for the questions. As we look at the revenues across our business, like I said, many of the revenues are already at the top end and we have some businesses where it's at the lower end or some where they're declining like we talked about, for example, their credibility business that we're aggressively working towards and have increasing confidence that we're going to be able to solve for those businesses and put us in a position where we will be at the higher end of our growth guidance in the coming years, it's really confidence in the momentum that we're seeing in the core engine.

Speaker Change: Sure Chris Thanks for the question.

Anthony M. Jabbour: Really as we look.

Anthony M. Jabbour: Sorry.

Anthony M. Jabbour: Alright.

Anthony M. Jabbour: As we.

Anthony M. Jabbour: As we look at the revenues across our business like I said.

Anthony M. Jabbour: Many of the revenue is already at the top end and we have some businesses, where it's at the lower end or somewhere there declining we talked about for example, their credibility business that we are aggressively working towards an increasing confidence that we're going to be able to.

Anthony M. Jabbour: To solve for those businesses and put us in a position where we will be at the higher end of our growth guide.

Anthony M. Jabbour: Guidance.

Anthony M. Jabbour: In the coming years so.

Anthony M. Jabbour: And we've always tried to explain what was going on in the core engine since 2020, right? What were the inherited headwinds that we're growing through, and what were the net new capabilities that we're bringing to market. So number one, I'd say it's that.

Anthony M. Jabbour: It's really.

Anthony M. Jabbour: Sure.

Anthony M. Jabbour: Confidence in the momentum that we're seeing in the core engine and we've always tried to explain what was going on in the core engine.

Anthony M. Jabbour: Since 2020, right what were inherited headwinds at <unk>.

Anthony M. Jabbour: We're growing through and what a net new capabilities that we're bringing to market. So number one I'd say it's that.

Bryan T. Hipsher: And just the real increase that we're seeing in some of our key major businesses, like supply chain risk management, as well as the shift to AI. We're in a great spot, like I said in my prepared remarks, in terms of the quality of our data and the results that it can deliver for clients. We're very optimistic about that and about what we're seeing in our labs and what we're seeing with our clients.

Bryan T. Hipsher: And just the real.

Bryan T. Hipsher: Increase that we're seeing in some of our key major businesses like our supply chain risk management as.

Bryan T. Hipsher: As well as the shift to AI.

Bryan T. Hipsher: We're in a great spot like I said in my prepared remarks in terms of the quality of our data and the results that it can deliver for clients. So we're very optimistic about that and what we're seeing in our labs and what we're seeing with our clients. So I'd say fundamentally those are the main reasons new markets that we're going into the capital markets for example, so.

Bryan T. Hipsher: So I think fundamentally those are the main reasons. New markets that we're going into, the capital markets, for example. So the team is very, very strong, working really well together, you know, hunkered down on delivering results quarter after quarter.

Bryan T. Hipsher: The team is very very strong working really well together.

Bryan T. Hipsher: Hunker down on <unk>.

Bryan T. Hipsher: Delivering results quarter after quarter.

Bryan T. Hipsher: Yeah, Craig, I think that's right. And just to add, you know, we talked about what we're doing already with third-party risk and compliance, and frankly, as much progress as we've made, the addressable market in our relative share is, you know, the addressable market, a very large relative share right now is still, you know, very early on. And the same thing with master data management. So, you know, those are the types of things that give us a lot of confidence in terms of continuing to execute. It's very powerful. So I think, you know, our model is one that's not very cyclical and really set up to continue to compound over the years to come.

Speaker Change: Greg I think that's right and just add on we talked about what we're doing already with third party risk and compliance and frankly as much progress as we have made.

Bryan T. Hipsher: Addressable market and our relative share is addressable market very large relative share right now it's still very early on and the same thing with faster data management. So.

Bryan T. Hipsher: So the types of things that gives us a lot of confidence in terms of continuing to execute I think the other point I'd make is obviously getting towards that higher end of the range is great, but when you look at even the bottom end of the range because of the strong.

Bryan T. Hipsher: Contribution margins that we have in our ability to buy the data once and create multiple use cases multiple industry verticals.

Bryan T. Hipsher: Our scale and our ability to drive ultimately.

Bryan T. Hipsher: EBIT expansion and then earnings expansion at the lower end of the range the middle of the range and certainly at the higher end of the range is very powerful. So I think our model is one that's not very cyclical and really set up to continue to compound over the years to come.

Bryan T. Hipsher: Just a quick follow-up, guys; what percent of your revenues right now do you think are at that roughly 7% level or better?

Speaker Change: Just a quick follow up guys what percent of your revenues right. Now do you think are at that roughly 7% level or better.

Bryan T. Hipsher: Yeah, if we look at it, right, and Anthony had mentioned this before, you know, if you're looking towards, you know, I think we quoted roughly 6% before, Craig, and that was, you know, 90% of the revenues, right. And so, you know, if you're looking, you know, that kind of blend between that six and the seven, I mean, it's in that ballpark. So roughly 90% of revenues are roughly in the 6% or better ballpark.

Speaker Change: Yes, if we look at it right and I think Anthony had mentioned this before if you are looking towards I think recorded roughly the 6% before Craig.

Bryan T. Hipsher: And that was 90% of the revenues right and so if youre lucky.

Bryan T. Hipsher: That kind of a blend between that 6% to seven.

Bryan T. Hipsher: It's in that ballpark.

Bryan T. Hipsher: So roughly 90% of the revenues are roughly in the 6% or better ballpark.

Operator: That's right. Okay, thank you. Thank you, Craig. Your next question comes from Ashish Sabadra with RBC Capital Markets.

Speaker Change: That's right.

Speaker Change: Okay. Thank you.

Ashish Sabadra: Thank you Craig.

Operator: Your next question comes from Ashish Sabadra with RBC Capital Markets. Please go ahead.

Operator: Your next question comes from Ashok <unk> with RBC capital markets. Please go ahead.

Ashish Sabadra: Thanks for taking my question just wanted to follow up on a few comments around.

Ashish Sabadra: The shares being significantly undervalued and 90% of revenues being 6% plus I was wondering if and thanks for that.

Ashish Sabadra: As I share repurchase.

Ashish Sabadra: Optimization, but if the stock continues to remain undervalued today.

Ashish Sabadra: Strategic portfolio rationalization or other strategic Optionality that the company may consider.

Anthony M. Jabbour: Yeah, thank you, Ashish, for the question. You know, we talk often about how client-focused we are every day, right? Driving multi-year contracts, improving our satisfaction, earning the right to increased prices, etc. But make no mistake about it.

Ashish Sabadra: Yes, Thank you Ashish for the question.

Ashish Sabadra: We talk often about how client focus we are everyday right driving multiyear contracts, improving our satisfaction, earning the right to increase price et cetera, but make no mistake about it we're shareholder focus we're all aligned with our shareholders.

Operator: We're shareholder focused. We're all aligned with our shareholders. Excuse me, and we're open to anything that we think makes sense for our shareholders. So in that regard, what we're doing, what we control every day, is we come in, and we deliver quarter after quarter and believe the next quarter, the one after, the one after that will be the inflection point for people to see the proof points and for investors to come more strongly into the stock.

Operator: Excuse me.

Operator: And.

Operator: And we're open to anything that we think makes sense for our shareholders.

Operator: So in that regard what we're doing what we control every day as we come in and we deliver quarter after quarter and believe.

Operator: The next quarter. The one after the one after that will be the inflection point for people to see the proof points and for investors to come more strongly into the stock.

Operator: But the entire team is shareholder focused. At a personal level, I am very much shareholder focused as well. Since our IPO, I've used all my compensation from salary and bonuses to buy back shares in this company. And so there's a great alignment that we all have, our whole leadership team with our shareholders.

Speaker Change: Got it.

Operator: The entire team is shareholder focus at a personal level I am very much shareholder focused as well.

Operator: Since our IPO I've used all my compensation from salary and bonuses to buy back shares in this company and so there's great alignment that we all have a whole leadership team with our shareholders.

Speaker Change: That's very helpful color. Thank you.

Speaker Change: Thank you <unk>.

Operator: Okay.

Operator: Ladies and gentlemen, as a reminder, if you do have any questions, please press star 1. Your next question comes from George Tong with Goldman Sachs. Please go ahead.

Operator: Ladies and gentlemen, as a reminder, if you do have any questions. Please press star one.

Operator: Your next question comes from George Tong with Goldman Sachs. Please go ahead.

Keen Fai Tong: Hi, thanks. Good morning. Within international business, finance and risk continues to grow very nicely. Can you talk about the drivers of the strong growth there and perhaps explain the difference in growth trends between international finance and risk and North American finance and risk?

Keen Fai Tong: Alright, thanks, good morning.

Keen Fai Tong: Within the international business financing risks continues to grow very nicely can you talk about the drivers of the strong growth in <unk>.

Keen Fai Tong: <unk> explained the difference in growth trends between international finance and risk and North American finance and risk.

Anthony M. Jabbour: Sure, George, thanks for the question. Yeah, a lot of it was driven internationally by our third party and supply chain risk management solutions growing nearly, you know, 40%. And when we look at our sales and marketing business, there's a nice bounce back after the weaker comps we had last Q1, 23. So that's kind of stabilized as we've got more momentum throughout Europe and in particular in the Scandinavian region. That's the reason

Speaker Change: Sure George Thanks for the question.

Keen Fai Tong: A lot of it was driven.

Anthony M. Jabbour: In internationally by our.

Anthony M. Jabbour: Third party and supply chain risk management solutions growing nearly 40%.

Anthony M. Jabbour: And when we look at our sales and marketing business. There was a nice bounce back after weaker comps we had last Q1 'twenty three.

Anthony M. Jabbour: Is that kind of stabilize and as we've got more momentum throughout Europe and in particular, the Scandinavian region.

Anthony M. Jabbour: And Thats the reason I'd say.

Bryan T. Hipsher: I'd say from a North American side and an international one, there's a timing aspect to our business as well. And there are some timing delays in North America, some timing accelerations internationally. So nothing worth, I'd say, being concerned about. We've got confidence in the underlying businesses in both regions.

Anthony M. Jabbour: From a <unk>.

Bryan T. Hipsher: North American side and international.

Bryan T. Hipsher: There's a timing aspect to our business as well in there.

Bryan T. Hipsher: Some timing delays in North America sometime acceleration internationally, so nothing worth I'd say being concerned about we've got confidence.

Bryan T. Hipsher: And the underlying businesses in both regions.

Bryan T. Hipsher: And George, one of the pieces I think in there too that's unique to North America, to Anthony's point, you have this really big finance solutions business, very sticky, very deep, driving nice pricing from that perspective. Third-party risk and compliance, both internationally, as Anthony said, and domestically in North America are growing really strongly. The credibility business is unique, I would say, to North America.

Bryan T. Hipsher: And George one of the pieces I think in there too thats unique to North America to Anthonys point, Yes, there is really.

Bryan T. Hipsher: A really big finance solutions business, very sticky very deep driving nice pricing from that perspective third party risk and compliance both internationally and domestically in North America growing really strongly.

Bryan T. Hipsher: The credibility business is unique I would say to North America and Thats, one piece that does sit in that finance and risk business charge, but again as we think about it in.

Bryan T. Hipsher: And that's one piece that does sit in that finance and risk business, George. But again, you know, as we think about it, you know, in improving its, you know, trajectory as we head through, you know, the first half of this year, the second half, you know, that's going to be something that obviously just allows the North America F&R business to shine through a little bit more in terms of what it's doing in the core finance solutions and the core third-party risk and compliance.

Bryan T. Hipsher: And improving.

Bryan T. Hipsher: Trajectory as we head through the first half of this year the second half.

Bryan T. Hipsher: It's going to be something that obviously it just allows the north America ethanol business to shine through a little bit more in terms of what it's doing in the core finance solutions in the core third party risk and compliance.

Bryan T. Hipsher: That's helpful. And related to that, on the credibility side in North America, finance, and risk, how would you expect the improvement to play out over the next couple quarters in terms of benefit or lift to overall organic revenue? Well, currently, in the quarter, you know, credibility was.

George: Okay, that's helpful and related to that on the credibility side in North America financing risks how would you expect the improvement to play out over the next couple of quarters in terms of.

Bryan T. Hipsher: Benefit or lift to overall organic revenue growth.

Bryan T. Hipsher: Well, currently, in the quarter, you know, credibility was a 60 basis points headwind for us, and what we see is that it should be a headwind in Q2 as well, and midway through the year, we see it pivoting to the low single digits.

Bryan T. Hipsher: We're currently in the quarter credibility was 60 basis points headwind for us and.

Bryan T. Hipsher: And what we see is.

Bryan T. Hipsher: It should be a headwind in Q2, as well and midway through the year, we see a pivoting to the low single digits.

Speaker Change: Got it thank you.

Speaker Change: Thank you George.

Operator: Your next question is a follow-up from Craig Huber with Huber Research Partners. Please go ahead.

Bryan T. Hipsher: Your next question is a follow up from Craig Huber with Huber Research partners. Please go ahead.

Craig Anthony Huber: On the cost side of things, I think I heard you say I talked about the cloud platform migration and how part of the technology movement there was hurting your margins in the first quarter. Just update us please on the timing of the cloud migration in North America and separately in international. Also, when do you think this will actually be accretive to your margins and stuff for both regions? Thank you.

Craig Anthony Huber: Thank you on the cost side of things I think I heard you say, let's talk about the cloud.

Craig Anthony Huber: Platform migration in to that part of the technology movement. There was hurting our margins in the first quarter just update US. Please on the timing of the cloud migration in North American and separately in international when also when do you think this will be actually accretive to your tier two or margins and stuff for both regions. Thank you.

Bryan T. Hipsher: Yeah, Craig, I think it's interesting because, you know, on the, you know, overall investment side, we made a really big step, and Anthony mentioned it, you know, I think earlier in some of his remarks, but we had migrated off of a kind of a data center that was really legacy. And frankly, you know, some of the move on to, you know, the cloud drives, you know, the innovation side, the throughput, you know, our ability to scale and expand from that perspective.

Speaker Change: Craig I think it's interesting because.

Bryan T. Hipsher: On the overall investment side, we made a really big step and Anthony mentioned.

Bryan T. Hipsher: I think earlier in some of his remarks spot we have migrated off of.

Bryan T. Hipsher: Kind of a data center that was really legacy.

Bryan T. Hipsher: And frankly, some of the move onto the cloud it drives the innovation side, the throughput our ability to scale and expand from that perspective, So I think youll see a kind of a mix and obviously, where the expenses start to stabilize as we head into later 'twenty and into 'twenty five but then.

Bryan T. Hipsher: I think you'll see a kind of mix and, obviously, where the expenses start to stabilize as we head into later 24 and into 25. But then also, you're seeing just the pure benefits of operating on an even more modern infrastructure stack, and especially as we're cranking the wheel on innovation, you know, those are all, you know, significant progresses. But when I think about the investment cycle, you know, we really started in the last part of last year, the second half.

Bryan T. Hipsher: So you are seeing just a pure benefits of operating on an even more modern infrastructure stack.

Bryan T. Hipsher: And especially as we're cranking the wheel on innovation those are all significant.

Bryan T. Hipsher: Progress was but when I think about the investment cycle. We've really started in the last part of last year. The second half and we saw that that will kind of run through at least the first half of this year and then start to taper off as we head into the second half of 2004, and certainly down into 'twenty five.

Bryan T. Hipsher: And we said that, you know, that would kind of run through at least the first half of this year and then start to taper off as we head into the second half of 24, and certainly, you know, down into 25.

Bryan T. Hipsher: And Craig, if the other part of your question was, you know, looking at the margins between the two, it's worth noting that in North America, it carries the innovation expense within it. So where we're, you know, investing heavily around generative AI, you'll see those expenses burden the North American business line and international distribution of those capabilities. Great, thank you.

Speaker Change: And Craig its still part of your question was looking at the margins between the two co worth noting in North America. It carries.

Bryan T. Hipsher: The innovation expense within it so where we are investing heavily around generative AI youll see those expenses burden in the North American.

Bryan T. Hipsher: Business line and in international.

Bryan T. Hipsher: Asphalt distributed.

Bryan T. Hipsher: Distributing those capabilities.

Operator: Great, thank you very much.

Speaker Change: Great. Thank you very much.

Speaker Change: Thanks, Craig.

Operator: Your next question comes from "Surrender Side" with Jeffreys. Please go ahead.

Operator: Your next question comes from Surinder <unk> with Jefferies. Please go ahead.

Anthony M. Jabbour: Thank you. I was hoping that you could provide a bit more color on the partnership with IBM and the build-out of a procurement solution. Just how does something like that work in terms of the arrangement, the IP, and a revenue share model?

Operator: Okay.

Surrender Side: Thank you.

Surrender Side: I was hoping that you can provide a bit more color on the partnership with IBM and the build out of our procurement solution.

Operator: Any color there would help.

Anthony M. Jabbour: How does something like that work in terms of the arrangement the IP.

Operator: On a revenue share model.

Operator: Any color there would help.

Anthony M. Jabbour: Well, sure, you know, I'll be careful, obviously, not to share any confidential contractual information that we have with it. But I'd say at a high level, with their Watson X capability and with our capabilities internally with our data and our analytics capabilities, you know, we plan to go to market with them. And ask procurement is the first generative AI solution that we're coming out with. As you look at IBM, you know, different from Google, for example, where we have a partnership as well. The whole generative AI marketplace is enormous.

Speaker Change: Well sure.

Operator: Careful obviously not too.

Anthony M. Jabbour: Here in a minute.

Anthony M. Jabbour: Confidence will contractual information that we have with it.

Anthony M. Jabbour: But I would say at a high level.

Anthony M. Jabbour: With their Watson ex capability.

Anthony M. Jabbour: Our capabilities internally with our data and our analytics capabilities.

Anthony M. Jabbour: We plan to go to market with them.

Anthony M. Jabbour: And.

Anthony M. Jabbour: And as procurement is the the first.

Anthony M. Jabbour: Generally they are solution that where we're coming out with.

Anthony M. Jabbour: As you look at IBM <unk>.

Anthony M. Jabbour: Different from Google for example, where we have a partnership as well.

Anthony M. Jabbour: The whole generative AI marketplace is enormous and you look at where.

Anthony M. Jabbour: And you look at the strengths that each of them has. So, you know, with Google, it might be in the SMB space, as an example, whereas IBM, I think we'd all agree, they're very strong on the enterprise side. So, and they have large practices around SAP, Salesforce, etc. And so, with that partnership, and with the collaboration that we have together with them, you know, we want to go to market in any enterprise space, and you know, helping those clients that we both share benefit from this technology and from the data that we provide.

Anthony M. Jabbour: Strengths at each of them have.

Anthony M. Jabbour: With Google it might be with the SMB space as an example, whereas IBM I think we'd all agree.

Anthony M. Jabbour: They are very strong on the enterprise side.

Anthony M. Jabbour: And they have large practices around <unk>, SAP, salesforce et cetera, and so.

Anthony M. Jabbour: So with that partnership and with the collaboration that we have together with them, we want to go to market.

Anthony M. Jabbour: In the enterprise space and helping those clients that we both share benefit from this technology and from the data that we provide.

Anthony M. Jabbour: Okay.

Operator: Thank you. And then, as a follow-up, just related to an earlier question on the call, roughly the 10% of revenues that aren't growing, strategically, how are you thinking about them? Not necessarily from a divestiture perspective, but just is there an incremental investment that you're maybe thinking of? How patient are you willing to be to, you know, allow things to kind of stand the way they are? Just any color there of how we should think about that? Yeah, no, it's a great question. If I, you know,

Anthony M. Jabbour: Thank you and then.

Operator: As a follow up.

Operator: Just related to an earlier question on the call.

Operator: Roughly the 10% of revenues that aren't growing.

Operator: Strategically how are you thinking about not necessarily from a divestiture perspective, but just is there incremental investment that you're maybe thinking of how patients are you willing to be too.

Operator: Allow things to kind of stand the way. They are just any color there of how we should think about that.

Anthony M. Jabbour: Yeah, no, it's a great question. If I focus on, you know, credibility as an example, you know, that's one where we've retooled our customer value proposition and our Salesforce. And, you know, as we are, the crux of the business is, you know, small businesses reaching out trying to improve their credit score. And what we're working on with them is if they provide us with a lot more information, so access to their bank account or credit card statements, taxes, etc. If they give us permission to pull their consumer credit, so we can blend their consumer score with their business score.

Speaker Change: Yes, no it's a great question.

Anthony M. Jabbour: Focus on credibility as an example.

Anthony M. Jabbour: It's one where we've retooled, our our customer value proposition and our sales force.

Anthony M. Jabbour: And as we are the crux of the businesses.

Anthony M. Jabbour: <unk> business is reaching out trying to improve their credit score.

Anthony M. Jabbour: And what we're working on with them as if they provide us a lot more information so access to.

Anthony M. Jabbour: The bank account or credit card statements.

Anthony M. Jabbour: The taxes et cetera, they give us permission to pull their consumer credit Bureau, where we can blender consumer score with the business score and all of those what we've seen in our lives is that we're getting roughly 20% increase.

Anthony M. Jabbour: In all of these, what we've seen in our labs is that we're getting roughly a 20% increase by getting this extra data and being able to leverage it. So that's an example where, you know, we're going to market with a revised value proposition and working on how much of that can we guarantee to make a value proposition simpler and more effective for that space. But beyond that, we're also looking, these are clients whose businesses are clearly on the border, right?

Anthony M. Jabbour: By getting this extra data and being able to leverage it. So so that's an example, where we're going to market with the <unk>.

Anthony M. Jabbour: <unk> provides value proposition and working on how much of that can we guarantee to make it a value prop simpler and more effective for that space, but beyond that we're also looking these are clients who.

Anthony M. Jabbour: Their businesses are clearly on the border right and so how can we help them grow those businesses. So we've taken some of our capabilities in sales acceleration like Hoover's for example, and we created a.

Anthony M. Jabbour: And so how can we help them grow those businesses? So we've taken some of our capabilities and sales acceleration, like Hoover's, for example, and we created a, I'll say a simpler version of it where these small businesses can install it, use it in a different way than what one of our largest enterprise clients might be using Hoover's for, as an example.

Anthony M. Jabbour: I will say have a simpler version of it were.

Anthony M. Jabbour: The small businesses.

Anthony M. Jabbour: Install it use it.

Anthony M. Jabbour: In a different view than what one of our largest enterprise clients might be using <unk> four as an example, so we've taken and we call it Hoover's essentials and cross selling that into the base as well. So there's a lot that we think we can do in this space. We've got a really strong refined go to market team.

Anthony M. Jabbour: So we've taken, we call it Hoover's Essentials, and we cross-sell that into the base as well. So there's a lot that we think we can do in this space. We've got a really strong, refined go-to-market team that we're seeing nice improvements with as well, so that would be an example of how we're attacking that space. And as part of a bigger transformation, like I said, we're always focused on filling the jar, the boulders, rocks, pebbles, and sand. And clearly, at $2.4 billion in revenue, this is roughly $125 million. We're now getting to that. And I've got confidence in our team that we will turn it around. Thank you. Surrender!

Anthony M. Jabbour: We're seeing nice improvements with as well so that would be an example of how we're attacking that space and as part of a bigger transformation.

Anthony M. Jabbour: We're always focused on.

Anthony M. Jabbour: Filling the jar, the boulders rocks pebbles in sand and clearly at a $2 4 billion in revenue, having this as a $125 million.

Anthony M. Jabbour: Roughly.

Anthony M. Jabbour: We're now getting to that and I've got confidence in our team that we will turn it around.

Speaker Change: Thank you.

Speaker Change: Thank you Sundar.

Operator: Ladies and gentlemen, as a reminder, if you do have any questions, please press star 1. There seem to be no further questions at this time. I'd now like to turn the call back to Mr. Jabbour for his closing remarks. Thank you.

Speaker Change: Ladies and gentlemen, as a reminder, if you do have any questions. Please press star one.

Anthony M. Jabbour: There seem to be no further questions at this time I would now like to turn the call back to Mr. Jabbour for closing remarks.

Anthony M. Jabbour: Thank you. As always, I'd like to thank my Dun & Bradstreet colleagues for their exceptional efforts to sustainably grow our business for the years to come, and to our great clients for their partnership and guidance. Thank you for your interest in Dun & Bradstreet. I hope you have a wonderful rest of your day.

Jabbour: Thank you as always I'd like to thank my Dun <unk> Bradstreet colleagues for their exceptional efforts to sustainably grow our business for the years to come into our great clients for their partnership and guidance. Thank you for your interest in <unk> Hope you have a wonderful rest of your day.

Operator: Ladies and gentlemen, this concludes your conference call for today. We do thank you for participating and ask that you please disconnect your lines. Have a great rest of your day.

Speaker Change: Ladies and gentlemen, this concludes your conference call for today, we do thank you for participating and ask that you. Please disconnect. Your lines have a great rest of your day.