Dun & Bradstreet Holdings, Inc. (NYSE:DNB) Q2 2023 Earnings Call Transcript

Kyle Peterson: On the AI opportunity, some good color you guys gave in the prepared remarks. But I just wanted to see how you guys are thinking about some of these opportunities in the near to medium term, whether it’s on the revenue side or the efficiency and cost side. I guess, where do you see the biggest near-term applications in terms of having a potential financial impact on the business?

Anthony Jabbour: Well, Kyle, with the launch of D&B.AI Labs, we’ve been working with generative AI previously. And so certain aspects of our data collection, we’ve been bringing in and leveraging some of that already. But our focus right now is with our clients and the commercial aspects for it. And that’s why we want to set up a lab environment where we can both come in to a safe place. You’ll hear us over and over hitting on the responsible part and even choosing the name AiBE of being responsible. Our clients are really excited about the opportunities of generative AI and large language models, and at the same time, cautious and concerned, right, like many are. And so we want to create a safe place where we can collaborate together in a responsible way.

That’s the trusted brand that we have at Dun & Bradstreet and we’re going to be focusing on initially. You’re right, there will be opportunities to drive revenue acceleration as we find ways to help our clients more, and there’ll also be ways for us to be more efficient. And we’ll be focusing on both of them. What we wanted to get out of the gates first was an external focus with our clients to engage them for them to start working with us on these important initiatives, because we just thought that was more important to be out in front of this and really helping leading our clients through it.

Operator: Your next question comes from Heather Balsky from Bank of America. Please go ahead. I’m sorry. It looks like Heather is not anymore here. So next question comes from Stephanie Moore from Jefferies.

Stephanie Moore: I apologize. Can you hear me now?

Bryan Hipsher: Yes, we can hear you now, Stephanie.

Stephanie Moore: I’m sorry. Good morning. I was on mute. I’d have that down by now. But you continue to see nice strength in international markets, particularly in Europe, too, though it doesn’t seem like it in your results. But are you seeing any macro pressures in any of these markets?

Anthony Jabbour: In the International segment specifically?

Stephanie Moore: Yes.

Anthony Jabbour: No, I’d say for the most part, we’ve got a really seasoned team leading our International business. And I’d say, for the most part, we see the opportunities that are in front. We’ve been thoughtful in terms of any of the headwinds. But some of the core again, that’s why I talk often about what are macro forces affecting everything and then what are our Dun & Bradstreet transformational forces affecting because it’s powerful. So if you think of our International business, we’ve launched 100 products in localized and in our international markets, which is really helping offset any headwinds that we’d see. And some of the areas like Master Data Management and third-party risk, they’re really global strong demand from our travels over there as well, meeting with clients internationally.

They’re really red-hot priorities there as well. So I’d say for the most part, that every business has headwinds, tailwinds. In the international space, we’ve got a lot more opportunity, I’d say, than we have downside risk.

Stephanie Moore: Great. No, I really appreciate the color. And then kind of looking at your almost 4% organic growth for the quarter, could you just break out what the split was between pricing, cross-selling, new logos? How you kind of expect that to play out through the balance of the year? Maybe any additional pricing commentary as you think out over the next 12 months. Thank you.