Financial Model

To Our Investors:

To help you to review and understand our historical financial results, attached is an Excel file containing historical D&B financial information through the most recently reported quarter.

DNB Financial Model

The attached Excel file contains the following information:

  • Quarterly reported GAAP results
  • Quarterly results before non-core gains and charges
  • A reconciliation of reported GAAP results to results before non-core gains and charges
  • Revenue by product line
  • Product line revenue as a percentage of core revenue

Please note that we use certain non-GAAP financial measures in the attached schedules, because we use these measures to evaluate our performance. They are:

  • Total revenue excluding the revenue of divested businesses, which we refer to as "core revenue." Core revenue includes the revenue from acquired businesses from the date of acquisition. We measure and evaluate core revenue because it reflects revenue from our ongoing operations.
  • Core revenue growth excluding the effects of foreign exchange, which we refer to as "revenue growth before the effects of foreign exchange." We isolate the effects of changes in foreign exchange rates on our business because, while we take steps to manage our exposure to foreign currency, we believe that changes in revenue growth due to exchange rate movements are not reflective of our underlying business performance.
  • Results (such as operating income, operating income growth, operating margin, net income, tax rate and diluted earnings per share) exclude Restructuring Charges (whether recurring or non-recurring) and certain other items that we consider do not reflect our underlying business performance. We refer to these restructuring charges and other items as "non-core gains and charges." We measure and evaluate operating income and earnings per share excluding non-core gains and charges because we believe these measures reflect our underlying business performance. These non-core gains and charges are identified in the reconciliation of reported results to results before non-core gains and charges. You should not conclude from our presentation of non-core gains and charges that the events that result in non-core gains and charges will not occur in the future. We believe these measures are useful to you because they reflect how we manage our business. However, these measures are not prepared in accordance with generally accepted accounting principles, or GAAP, and should not be considered in isolation or as a substitute for total revenue, operating income or diluted earnings per share prepared in accordance with GAAP. We discuss our financial results prepared in accordance with GAAP in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section of our annual and quarterly filings with the SEC, which can be accessed through our web site at: D&B SEC Filings

In addition, you should note that because not all companies calculate these financial measures similarly or at all, the presentation of these measures is not likely to be comparable to measures of other companies. We hope you find this information useful. We will update this file quarterly as we report our results.

Thank you for your interest in D&B!