Anthony Jabbour: Sure. What I’d say overall is, from a Sales and Marketing perspective, a large portion of that is our Master Data Management, which is less impacted by macro conditions. And — so I’m not sure which of the competitors is it. It was probably on the sales acceleration side, where a softer market, and we’ve seen some of that as well on our sales acceleration business where again, larger enterprise clients shrinking their sales force had less seats. And — but again, that business is less than $100 million in annual revenues. So it’s a smaller part of our Sales and Marketing business compared to our Master Data Management. And — so I’m not sure if that answers your question or not.
Ronan Kennedy: Yes. Okay. And then as a follow-up, please. A lot of commentary, obviously, on GenAI and the potential there, in addition to the recently hosted GenAI Day, could you help us quantify or give some context around when and how we should see some benefits of the strategy and the numbers from a revenue and a cost standpoint? And then any further commentary on when we should expect to see benefits from the IBM partnership?
Anthony Jabbour: Sure. I think it’d probably cover them off at the same GenAI in general and IBM, and I’d say it’s always is a case. The hype always comes before the revenue, and we’re all certainly dealing with the hype right now. It’s everywhere that you turn, and it’s very much on everyone’s mind. That being said, we do believe that this is more than hype, and that it is going to materialize. And we’ve been determined to be first and moving very quickly, whether it’s with reaching out to our clients first and having WebExes with live demos, showing them examples of it, leading them, teaching them, obviously, working with many of the industry partners in this space. It’s one that we have a high degree of confidence in that it’s going to be material to our revenues and earnings as well as our clients’ abilities.
And so I’d say if you look at what we’re doing with some of the examples, they’re real. Like I said, there’s a massive amount of opportunity. But it’s difficult at this stage, I’d say, to quantify what the contributions will be other than I’d say we have a team of highly expert and skilled executives who’ve been in the industry for a while. And we all share a high degree of confidence that it will be material. We worked very closely with our clients. They’re, like I said, leaning in with us, looking to us. And we look at the advantage that we have with really the proprietary nature of our data. And think of it, when we all talk about generative AI, it tends to be around ChatGPT and writing an assay for a student. There’s no money in that. It’s money when it gets to businesses.
And when you have to identify those businesses, that’s just space, that’s our absolute sweet spot. And so — and I think the industry really recognizes us being very strong there. So I’m sorry I can’t give you specifics at this stage, other than specifics and the confidence level that we all have here that it’s going to be material.
Operator: The next question comes from George Tong from Goldman Sachs.
George Tong: In the International Sales and Marketing business, organic revenue growth is certainly in the low single digits. It’s a little bit slower than some of the other segments and geographies. Can you talk a little bit about what you’re seeing there? And if the lower growth is structural in nature or whether you see it as really cyclically-driven?
Bryan Hipsher: George, thanks for the question. I think as you’ve seen, overall, our Sales and Marketing businesses continue to perform very well. In International, in particular, we’ve gone through kind of a series of some pretty big product migrations from that side. And so you saw us first focus on the Finance and Risk component, which is the much bigger from a magnitude perspective. As we’re working through the Sales and Marketing, for instance, in the third quarter, there are some legacy solutions, for instance, in the Scandinavian region that were a little bit more, I would say, challenged from that perspective. But that being said, as we’re working through the migrations, we’re working through the upgrades, we’re seeing nice uptake, for instance, in Hoovers.
They’re starting to roll out some MDM solutions in those regions. We actually expect the Sales and Marketing internationally to pick up in the fourth quarter and certainly into 2024. So it’s a little bit of that continued evolution there, but certainly see some good momentum going forward.
George Tong: Got it. That’s helpful. And then you mentioned seeing higher data costs in the quarter and having that impact margin performance. Can you talk a little bit about some of the trends with data costs and how current pricing within D&B is helping to offset that?
Bryan Hipsher: Sure. And George, if we step back and kind of look at the quarter, the first thing I would say is when you ex out the impact of foreign exchange, we actually increased about 40 bps on a quarter-over-quarter basis from an EBITDA margin perspective. The other side, we had really playing in there was because of our incentive-based, performance-based compensation, we had a little bit higher. It was about $3 million higher in the quarter this year versus last, which I think, Anthony, I would agree is a good thing from that perspective. Really, those data costs are just a function of some of the revenue growth on the COGS side. And so nothing out of the ordinary there. Like I said, we frankly expanded margins when you hold currency constant, and then it was a little bit of performance-based incentive comp that was included in the quarter also.
Operator: [Operator Instructions] Our next question comes from Craig Huber of Huber Research Partners.
Craig Huber: You guys have, obviously, done a herculean job in the last four years with all the transformation stuff you guys have put in place. My question to you is, in your two segments, North America and International, can you sort of give me a sense of how much revenue in each segment is left to fix in your mind, sort of ballpark in each segment? That’s my first question.
Anthony Jabbour: Thanks for the question, Craig. What I’d say — I don’t know if I categorize it that way. I’d mentioned in previous calls, when we excluded a couple of businesses, public sector and our credibility business, that the overall growth rate of our company was 5.8%. And I think, right now, if we look at our results today, public sector obviously had improved and turned, and we’re aggressively working on credibility like we shared with the new launches of our new capabilities there. But looking at that headwind, we’d be at around the same 5.8% overall as a company. So it’s really, I’d say, our focus overall as a company is our credibility business. And — yes, so if I was to — maybe to quantify it, I’d say it’s kind of in that range. Bryan, would you add anything?
