The is the fourth, and final, blog on Dun & Bradstreet’s upcoming IPO. Dun & Bradstreet (NYSE Ticker: DNB) will be offering 65.75 million shares at an IPO price between $19 and $21. The offering would raise just over $1.3 billion and value the firm at $8 billion. [Top of Coverage]
North American revenue increased by $12.1 million or 4% (both after and before the effect of foreign exchange) in Q1 2020 vs. Q1 2019. North American Finance and Risk rose $10.7 million (6%) year-over-year. Finance Solutions were up $13 roughly million, while Compliance fell approximately $2 million.
North American Sales & Marketing grew revenue by $1.4 million (up 1%) in Q1. However, $4.9 million of S&MS revenue was attributed to Lattice, which was acquired by Dun & Bradstreet in July 2019. North American Advanced Marketing Solutions revenue rose $4 million due to increased demand, but D&B Hoovers and the Data.com legacy partnership with Salesforce posted declining revenue. The Data.com service is being phased out, so the $4 million in quarterly revenue drop was anticipated. However, the drop of $3 million in quarterly revenue at D&B Hoovers, attributed to lower sales, was surprising.
International revenue fell by $0.2 million in Q1. International Finance & Risk revenue increased $2.3 million, or 4% (both after and before the effect of foreign exchange) for the three months ended March 31, 2020. International Sales & Marketing revenue declined $2.3 million, primarily driven by lower product royalties from their WWN alliance.
Annual revenue dropped $139.8 million (8%), but the drop was due to purchase accounting deferred revenue adjustments (9%) due to the take-private transaction and Lattice acquisition. There also was a one month lag in international revenue reporting due to the take-private transaction resulting in an additional 1.5% drop in revenue.
2019 North American revenue rose by $44.1 million (3%) with increases in both product lines. The Finance & Risk division increased revenue by $16 million, or 2%. The Risk & Compliance products grew revenue by $11 million, and the D&B Credibility products contributed an additional $4 million.
2019 North American Sales & Marketing revenue grew $28.1 million (4%), with $17 million in increased revenue from Master Data solutions and $12 million from Lattice, which was acquired at the beginning of Q3.
2019 International revenue fell $3.1 million after the impact of foreign currency but was up 2% before foreign currency impacts of $9.5 million. “Excluding the impact of foreign exchange, growth of $6.4 million was primarily due to increased revenue in our U.K. market driven by higher demand and usage related to our Finance & Risk solutions, including Risk & Compliance products.”
2019 International revenue was negatively impacted by $1.8 million, mostly in the UK, “as a result of transferring legacy Avention contracts to our WWN alliances pursuant to preexisting agreements governing partner exclusivity in certain territories.”
The filing also provided some color into their 2018 performance vs. 2017 as a private company:
“The increase in Sales & Marketing Solutions reflects increased revenue from new business in our Master Data offerings of approximately $7 million as well as our Audience Solutions products (Visitor Intelligence and Programmatic) of approximately $5 million and Analytics products of approximately $5 million. The aforementioned increases were partially offset by lower royalty revenue from our Data.com legacy partnership of approximately $7 million and decreased revenue in D&B Hoovers of approximately $5 million.”
Dun & Bradstreet S-1 Filing