TRU - Earnings call transcript Q3 2018

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Operator

Good morning, and welcome to the TransUnion Third Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note today’s event is being recorded. I would now like to turn the conference over to Mr. Hoffman. Aaron ahead. go Please

Aaron Hoffman

and for everyone us thank morning, joining you today. Good

the Chief release Jim the call Cello, and and Chris Segment. U.S. and accompany call on on slides Investor us well today of iovation. Relations the We've some the Peck, Chris Executive additional Officer, Cartwright, to as to we President IS of Todd provide On our posted and have President President as Officer; Chief Vice TransUnion website. Financial joining color is acquisition our earnings this Executive

also information available earnings revenue, including call Today's schedules Our on Reconciliations measures GAAP be includes which recorded, included release be financial will are most non-GAAP expenses contain of a our items, in more other these their replay detailed non-GAAP will financial comparable to about schedules. and these website. and measures. operating directly certain measures

that based forward-looking and earnings We this differ conference the the Form now during Exchange of will and These in call call results With the me Actual out our made to during those update forward-looking to not to other and any materially let We Form discussed in assumptions factors filings of forward-looking. over way, turn XX-K, statements. because undertake release, that be in this do comments expectations could from Jim. are recent XX-Q with described making most Commission. the and the and reports and time also are and uncertainties. Securities current any in are statements statements risks subject today's statements on duty

James Peck

again we've total Driven another more EBITDA growth IPO markets well our adjusted the execution, report innovation, by markets. than for an growing footprint, We're trends underlying above three pleased Thanks, strong grew our quarter, we double-digits company. revenue, ago. global to of attractive adjusted continuing and Adjusted leading and delivered vertical strong EPS years since Aaron. seen the

with segments adjusted across operating performance in and strong adjusted growth had double-digit our income revenue organic constant also We currency three. all

growth, broad-based for of is feel share how about Even regularly our coming gain. is one we questions the market as this we growth delivered much

Over built number innovation modern we've platform. as financial share a footprint of gained differentiated including five capabilities our That leading significant a and government. through of global we four past verticals industry on trend business the technology across launched or competitors recently from one services and years, in continues our

I business share things expect We year incremental in to contracts important another to about our point want strategic other bit, an to the these new among XXXX. strong and associated make a gears, contribute Switching model.

We growth alliance of portfolio continue we from on stress diversification model I have opportunities. an over our a market single on any vertical. This wide the product, here. to the benefit word uniquely means My portfolio don't of is predicated and array

if you to in For mid-XXs. and is think to segment example, early when growing revenue XXXX the XXXX back interactive our consumer mid-teens

last growth year in you our direct our deliver market business largest again Our to strong and key performance strong this. and scaled been the that partner saw fully Africa X% more our has strength continue decelerate. a top-line consumer slowed third remained we Similarly, of of But given TransUnion's our spite we business declined TransUnion rate indirect in overall told portfolio. international

saw posted again, the results. in third the some business. frontend we We with of a on impact quarter. issues partial second As quarter a and full our impact call, healthcare the customers are last strong we And few experiencing in noted we larger quarter's the on

us events. is portfolio X% to of less level. of now. For The that Africa our the our Regardless of power the the active And about of XXXX. was consumer revenue X% roughly for model to The strong the XXXX size, these of benefit changing capabilities leading that healthcare we story across ability of weather further XX% isolated than help growth margin. context our revenue consider our from leverages data quarter-to-quarter slowdowns us overall moral the in position of this reflects our that to [indiscernible]. is broadly incremental overcame was and without our gives each business industry our business the of performance assets diversified strong good trajectory business year-to-year and realize revenue

relative cycles. certainly diversified out While performance, financial we growth a can sustainable to performance contributes created our more this believe profile also through it that has approach deliver

our done spend time we've years, several four past that growth. the highlighting for some diversified driving I to As want strategies are our key

launching acquisition. the XX% CreditVision utilizes these that the gain we how there next much year-to-date. growth of more industry is innovation. to spend through already future leading alternative a iteration answer In products, driving about quarter the FactorTrust in of U.S., XX% the we XXXX. short for the data grew for allows CreditVision different customer That question, now have addressing lot. XXX% the they regularly, follows and third Outside test is, The range minute quarter outstanding of what This U.S., today we talked for trended of and have Link that growth CreditVision from very the the looks U.S. are for the credit been validation needs market first for it This products and about will been strategy our grew which like In a a together half growth third has successful. price first offer Even though, in models on of feedback incredibly and in CreditVision what month. the we out is to and next want XX% business is full large about is with at Link I begs XX% full points. the production us roll in product customer a up the growth XXXX varying

and will adoption substantial or return. have These space CreditVision [ph] card greater institutions five largest now we of penetration for that the opportunity amount modest For users CreditVision there customers is financial the in in of and there and Link, six confidence credit America. are be

of underwriting. of pipeline the risk application largest in U.S., base is opportunities in data one the Finally, our to trended auto credit scoring models the insurance

Certainly, for better predicted [indiscernible] behaviors individual trended insurance and of and a borrower. As CreditVision losses static scoring is we've provides on future credit information. demonstrated,

We have wins of number insurers this have with opportunities. robust larger pipeline larger for finalizing about context, than now Putting lot and of good pipeline in we come. a or sales and opportunities our a Link to words, shape are in stage. ago it seen additional very XX% auto for other in a these many was is a and core are CreditVision year offer of In implementation of years the CreditVision

usage of will in UK story And in far these XXXX, growth strong customer Africa, Kong the the Canada India, other the Canada, seen over a from indications the doesn’t desire is we double in countries, XXXX. production have most including to go current with markets, five in Outside in way CreditVision and Penetration market-to-market eight point, to the to In years, very next of the for this U.S., the product. than fact, better Clearly, footprint now long have roughly end adoption varies we early Hong I largest and U.S. would Colombia. in with and XX% our off the expect strong this in three substantial of U.S. markets. of a in even base. Kong in outside ready days Hong to the there CreditVision business high at markets South a levels as we've thus of

same that Given as entry results. an impact share the like may it maturity our size be confident with on UK customers real overall improve it time, become the we for and market, the a At us and of are in CreditVision success markets has large for other to point will position. our scale Canada,

product. on isn’t earlier, our Importantly, one pointed as any I out growth built

initiatives be market we The penetrated, are ensure there that digital growth is long-term. CreditView away from and are we for and market Someday strong that fully many TLOxp, will though haven’t come to CreditVision deliver above to years the market good yet, that news Prama many that. other

acquisition meaningful champion vision [indiscernible]. will One Chris our portfolio their join team I authentication of dimension still critical the and our our I could new the is on walk he to growth ask Transunion. for so that identified market in a suite rate you engine. see device of and Cartwright us relatively believe of of and this of the Chris? The spite nascent our morning, transaction strong recent very areas that strong is iovation. you’ll call growth Chris those products provide and for as particularly in another think I its long-term us size through

Christopher Cartwright

Jim. Thanks, more details share call the this to for on be this acquisition morning pleasure TransUnion. about and great It’s a

is our of so it's into I to customers. important story, the this jump set why Before to valuable acquisition the market context iovation

set fraudsters years, our recent the are aggressive growth challenges. of customers in more a facing in channels online sophisticated With become new and and enormous have

mobile First, the scale. we've where with which majority the vast digital reached device perpetrate that to digital, transactions point for to the easier authenticate transactions supplanted were now transactions and in-person has in majority. migration harder much much fraudsters of This are

challenged expectations even breaches experiences. considerable as to than questions easier or information more amount protection frictionless online answer the identity alone to consumer a data more available for of reported third, to with intelligent for sophisticated increased about to is fast has Second, XXXX U.S. fraud And synthetic have the in identity. so them build personal fraudsters, there it need making for

they and customers additional So, risk for challenging to that a their need fraud and reduce that’s protect for friction. clients products tools driving our and this is what’s themselves significant growth clearly landscape and

than year and the in in is many other As month the more and a global the double-digits by result, growing per markets. large occasion market XX% fraud U.S., a and UK row [ph]

this the assets provides market that prevention six has overview an TU fraud assembled iovation. of of So, with with it’s slide the acquisition context,

So, an IDVision of next as that think you a In can information identity as as increase. growth of or the utilizes troubles and slide to will part our its products. of suite reputational validate is strong the application personal to delivered identity individual years TransUnion simple of an recent we've within process and means terms, valuable account and IDVision fraud of highly to you shows this if in customers opening typically continues the

you can and at the prevention broad device of six, iovation’s and right we powerful a we throughout data slide create fraud as opening this data lifecycle. Now account with account see to online which can side on both utilize the suite, combining so-called offline are

a our take survey data of customers. moment can that now Let’s bring authentication we identity massive the and to amount to

credit On X XX countries million than and regularly. side, consumer across more records updated have billion TransUnion the XXX we histories all

will digital includes XX,XXX than more iovation, interaction websites data globally ICs on XX which years of protects. iovation into of now with applications visibility merry and with from of the billion with the history We X devices that a these that

families. device fraud to allows us a is means history device This devices to this each and identified to Importantly, connect that a unsafe. perpetrate uses that to device if other fraudster as

the one We’re additional unsafe device to the to to back for to marking and families then suspect. record This devices link fraudsters. have industry reporting integrated valuable as that used deep around unique the same able account historical is device access extremely each been

device-based iovation which online machine quickly core is the fraud. suspicious is and consumer The device Iovation us feedback breadth ClearKey, and Iovation learning this multi-factor its which acquisition iovation such iovation this incorporates The brings and suspect at authentication. device information clients massive for a use important login whether to real-time new including during products identify solutions applications account both to interactions a provide authentication. is weight contributory other So, to behavior of new a database whether for or device provide identify across LaunchKey, of which enables its a lighter and is is device on product to data used a use account directed as safe. also history network. authentication behaviors and a into perpetrate

volume and with XX we found the unprecedented put with major and Now, consumers assets, we the to million now significant to we account the online and technology transactions both the and sophisticated instances reviewed X offline about ongoing increase around alone compared through industry iovation, login of an XX data scale in data we provides with and new in addressable applications, and this the of TransUnion most XXXX the market. of in XXX about of current to as perspective is view see fraud. it billion the times characteristics transactions Combined a have so our of

of So, in contributory the strength network. power lies model the this the of

elements the data including being XXX about gather system. we device consumer, transactions, reviews iovation such device As used the browser the device the the version specific as IP from type, operating the by address,

XXXX data over device, device of that that have In for other but not only we of contributory other about In learnings analysts of fraud nodes customers with time The for adverse enhancing devices partners. over the fraud, identified real the million provide models efficacy points gained X about network we is been behavior every gain customers of the data words, who boundaries. within the set then from month. network our our of the products strong used all our geographic us

of can country data without from the one. to The acquire this in and in is be other world that that without to benefit having the having buy from data new we network present anywhere

against identities set and iovation a footprint network about platform more personal becomes. of future we for now market on have So, this suite and and along personal absolutely with seamlessly safely a we enable the of device we no any data digital broad data, clients. online remote source prevent added fraud. of about that creates in become consumer conducts We're of goes we our a archives example, revenue the of our for apps The in a also comprehensive the of authentication in in and has very for a We XX,XXX products able authenticated global put websites kit new to for most and as with use interacts combination high compelling source business to position our TransUnion. in somewhat a a when consumer's of digital customers' we verify country for global TransUnion And positions consumer a if presence the growth Thus, all acquire business to we And digital truth where then the the world. our of the it bigger world. powerful and the together, market any are consumer leading believe and and diversified capabilities to growth identity and other protect.

comments So Jim. Thank that you. wraps up my over and to I'll turn iovation about it back

James Peck

Thanks, Chris. outstanding. That's

our on second turn represent strategy our few ID I'll a capabilities an growth I vertical we business going. I geographic new think in avenue iovation spend to and my basics with to the the on vertical Rather more healthcare so markets. want perspective of on a vertical. to detail a A market. minutes I expanded again on fraud call very the do to I our fast-growing CreditVision, did expanding here. and now like of argue our want last that want quarter, where see attractive I

they performance than the In quarter, was we impact flat stress I mentioned are the the we in up. slowdown value the the quality our leading have these a issues [indiscernible] Frankly, marketplace. of As product In of or cropped vertical. earlier, impact seen to the largely quarter, business. partial had revenue not as organic expected. end front on the as third for saw worse result little to second that these on I'll some related customer a the that again service issues we

to In expect for and way to growth our organic no view the fourth for our year. digit mid-single does the now we of quarter return change the full business. such, industry As this growth in

the to strength high a continue management margin We helping manage to Fundamentally, cycle pressures levels and costs. have customers and long-term in care revenue we rising conviction compensated of are better market. our of increased

the more of revenue the that increase cycle forward. right are business revenue end plus recovery suite and back win going have we confident We products on particularly to will drive the management overtime of

underlying our is of [indiscernible] recent and our of acquisition products. comprehensive both the based end combined HPS back and already suite attractiveness optimism capabilities with best-in-class Our expand on the of market the

like last acquisition earnings international two provided our points. key I UK acquired about you want Now Callcredit. I business. to our details update our on on turning attractive Today, update calls On recently to I'd of markets. to you two

moving First, we quickly capitalize to are opportunities. on revenue

generation partners the XXXX. few CreditVision have expect and mentioned by our the in market we used indirect I for As launch of XXXX our UK platform lead will in first ago, I quarter minutes be CreditView, to in

with actively We Callcredit our working iovation. to of solid suite are also IDVision fraud already build and products

Callcredit from reminder with that are fraud years the to and that product our augment As comes moving competitors continuing manage of success. in gaining and technology has ID third the and and UK a for the business. the Callcredit share about our real and of number revenue already position been a over rapidly one

The of UK currency our going that set second organizational third part [ph] attractive grew expected still in X.X%. of a critical portfolio by made XX cost XXXX. series the the adjusted solidly update our a by to reduction end relates the constant we all first of million the quarter this of activity ownership, revenue business commitments. on quarter, Even with move In

more expect and as the that deploy the fully we performance I good integrate solutions discussed. business We new

Interactive. indirect the growth to had We good partners Moving with direct Consumer business side. in and behind strength our continued the benefit key another of quarter the on

On to the our our breach up and products data the paid retention continue last customers of we signed subscription business, competitor’s year. in direct side of wake growth see in we’ve our strong

In addition, recognizing of consumers products for utility we provide the like credit in features the loans and in our market and paid are value the cards services.

We and our quarter the XXst. went tools site that along a credit unfreeze freeze launched solution consumers of new portfolio time introduced of help September is this TransUnion of take prevent their advantage with part consumers to effect app for law that free and the consumer-facing for solution free. During consumers the freeze mobile breach. we into This in fraud data on My easily and to help quickly credit-free

success to opportunities those to rapidly grow that of internationally Chase, partner We’ve in side, the and I have largest product see the India continue Hong Canada slide. markets, indirect a the as have initial in during first about and We’ve in report accounts Capital new launched the Please lot we like you U.S. platform the Intuit that One, had in our sign market Africa. the mentioned, Express, and Consumer perform we’ll CreditView others past. South to UK many American our Kong And in in continue XXXX. and with our the talked quarter of On emerging on well. Interactive

capital significant that a represents completed cost, massive leveraging together, and growth. Final Taken REIT us strategy true years technology created our operational and get tensions products exist of on avenues several better this technology the the excellence. enabled the security generating innovation focus between differentiation. in ago another natural we allowed more global of to reduced We long-term that our have to source industry, even and innovation, revenue best has architecture and is with platform platform to a marketplace business Even in and cyber systems availability. our address

clearly innovation to platform needs. Our response customer greater and facilitates rapid more

availability, recently center leverage to We allowed in continue development strong threat of to systems or availability to everyone enhance to investment. every standard to Center innovation a is we of outcome the world we an cyber aggressively speed. efforts continue environment absolutely The in of that invest invest launched as And, we XXXXs cyber the market-leading simply expect threats. This us up see now tension a the real reliability, invest and we efforts, where in pool our to live and drive are a with essential consistent mapping we’ve industry just just the use innovation in Launching very company uptime. I in and innovation is in increased performance. live a hardened spending would in We the our India. have systems fully stresses innovative every cyber threat appropriately system XX.XX% building to world continued final seen performance develop year is naturally Global in Further the these dynamic against product innovation, part technology finance other our cyber to in solutions. Chennai, talent of and [indiscernible] faces. Innovation our security to that along going about

varying a XX/X run has customers expectation. Our and

needs. platform, even reliability do is of tensions technological noting an meeting these don’t world. we in job natural we to best the are with to managing about excellent still now with standing the system you through talk still. class to even it be concludes technology strategies, has actions these ensure while that easy is strength risk ago simple now system, to operate we over face for in in pressing future tensions. my discussion advantage not I’ll Building our but provide meet away to a significant And delivering and the second, and walk are technology, evolved continue foreseeable we platform. Todd updated our customers. to who our to requirements. industry the guidance. And this These our the Take foresight to we first functioning and a On innovation, lead from the world That A built technology hard do to modern of outstanding time customer’s our financials you appropriately advantage and availability continue proving our the to class are turn that Todd? fully on years we have cyber with

Todd Cello

Thanks, Jim.

quarter. mentioned, strong third a As we Jim had

sake as through comparisons the the share the of in the trends. my our impact some recent third release understand simplicity, will reported the unless and otherwise. that point press today as XXXX For commentary, be noted well discussed In slide I comparisons all basis. you deck, out fully today bridge acquisitions the as also an will of underlying unusual I and of creates size quarter of we’ll business our on help against

Let’s start.

and HPS Organic XX%, the increased quarter. XX% was of Datalink currency. revenue credit related in This currency growth Adjusted also with from growth brings basis eBureau Adjusted currency XX% third to performance Third as year-to-date effective all $X our point reported expect the of Callcredit. adjusted we XX.X%. XX% I’ll all on on adjusted XX.X%. segments We quarter a closed of services, increased reported XX% about realized contributed about rate Adjusted in a XX% three from a incremental constant XX% acquisitions quarter, approximately roughly quarter FactorTrust, adjusted also and includes million was in as increased revenue now one to in across was the XXXX. EBITDA the consolidated to points adjusted and which competitor. detail XX monitoring business rate which for in year that rate deliver full and EPS It XXXX basis constant constant moment. growth tax a strong in from revenue diluted iovation,

We’re some planning benefiting tax being strong offset from successful tax partially is high jurisdictions international in India. growth that our like by

of to Let’s I with to acquisitions. of spend Cost strategic same income a in as reasons discussing higher to result XX% operating minute cost and recent cost XX% higher key some growth. associated increased initiatives of a the items. services statement and SG&A related and data our integration our for mentioned services. costs the revenue Investments many increased

Before I X.X to from the I expect end end continue adjusted credit and facility. quarter a to strong revolving out about let X.X payoff dropped and ratio pro growth section, the finish quarter our position year as forma that times our we the out of result the having to to X.X at point for wrap times times expectations. below me at up our this our of this leverage fall second the us of XXXX EBITDA close as

business. of want recent acquisitions that As last we good on to performance underlying the our the help and margin to show you had see you quarter, impact the did have we

the third the reflecting of first of year, can months you the the almost quarter basis for the business and our excluding acquisitions, the As the about margin typically nine XXX strong business. XXX underlying points of points on our in expanded impact incremental profile margin see, basis by

the our integration As due of practice. a is for cost departure a size the reminder, transaction, from we’re for two the excluding to normal years, Callcredit which

strong adjusted business. revenue performance financials. segment U.S. XX%, at grew the looking driven Now across by IS

digital the macroeconomic impact and excluding services platform, eBureau have of the was part eBureau, like decision well eBureau FactorTrust and Adjusted XX%. acquisitions customers. Excluding Marketing are to and from FinTech increased platform. part XX% innovative HPS would grew services Link and our services ongoing revenue of Online services by including Iovation, primarily of strength Datalink, Datalink, CreditVision this due of data as would strength products grown online this for revenue up Link environment and HPS. them, as TLOxp. CreditVision, And with in and driven iovation, new have CreditVision, up favorable CreditVision demand the XX%. solutions, in FactorTrust, are XX%, XX% been data marketing

up Excluding a that was revenue, Decision little X%. over Services

short-term largest organic to we in which that for the headwinds of increased expect and is Decision part on the USIS As vertical resolve healthcare Jim some XX% up overtime. discussed, we an itself Adjusted see continue Services basis. was income to operating XX%

the in margin than more points. this up adjusted have acquisitions would operating been of Excluding basis impact recent segment, XXX

XXX% up constant Hong increased adjusted and on adjusted Moving in reported reported revenue currency. constant organic to Callcredit segment. basis basis, was international, and as as organic this On markets is Kong grew which The revenue X% this by Callcredit reported in segment XX% acquisition Canada and in XX% constant XX%. currency Developed currency. an includes now with along

Canada success to vertical. broad-based continue CreditVision, in strength customers see and CreditView in our continued behind insurance We new

for double-digit strong XX% constant our up currency expectations the deliver basis the in for constant currency well and Emerging in in as in basis double-digit first an was with was line for for X% revenue quarter flat constant organic We in full both as organic expect growth currency. Colombia. down year. and about growth months to nine quarter the as the adjusted an increased reported in currency on Africa constant We growth which continued saw adjusted revenue markets the markets on full revenue year. X% XX% India, adjusted

on XXXX. with up operating heading as with the XX% strength has was currency XX% in progress expect into Direct Adjusted base positive of almost income channels. Africa the the basis, and by expanding attractive an margins revenue We’re the interactive to increased team momentum reported up adjusted for points. direct them Jim pleased driven on growth made was up subscriber deliver quarter setting basis by Consumer double-digits XXX the growing in International organic and constant indirect both XX% that grew a it fourth good mentioned.

realized also driven about incremental represents Our revenue interactive about this for have income segments million grew competitor incremental business from consumer by interactive indirect one-time credit channel $X the the operating Adjusted would adjusted two-thirds a from excluding revenue of X%. which revenue. XX% the in revenue monitoring grown consumer of increase

Turning update XXXX with assumptions. based just now to on guidance me start let for our an

full the of iovation, and points HPS, eBureau, adjusted Callcredit, For Rubixis Datalink, acquisitions XX revenue FactorTrust, should approximately year add growth. including

to reflect clearly strengthening The expect For of FX, EBITDA. spot is and revenue XX we the U.S. forecast a basis basis headwind for points impacting points as headwind dollar of of rates mid-October. see adjusted headwind XX our about and adjusted

continue a approximately the XXXX. million one-time in growth credit $XX XX with basis year-over-year. year competitor to million $X expect from of the about revenue represents for We compared of from monitoring This points incremental full

our of are committed year many one impacted for competitor you free monitoring consumers. for had to As credit aware

these forecast Therefore, and there conservative prudently credit known. approach long including more offer is about how no they until However, a that additional monitoring our are clarity revenue are will services. we in taking details

against We million adjusted This to of in high $XXX end guidance, between the to is expect of be to XX greater At beats XX%. $X offset XX.X% FX guidance our $X.XXX about points expected be end and billion expected come $XXX by Adjusted our EBITDA EBITDA basis high quarter the allowing headwinds. margin XX%. million up is up up $X.XXX million to from being million between the XX XXXX. adjusted revenue to billion reflects third $X in of

the and lower of earlier acquisitions margin impacting initial structure margins. is integration mentioned costs I the acquisition negatively As

from XX% basis we Excluding Adjusted margins adjusted the year $X.XX XX%. impact, more or share headwind from by growth. and FX diluted line the our per in of $X.XX points This and expect flow EBITDA $X.XX debt to are expand for in $X.XX from rates our higher to our between historical would per underlying the guidance unfavorable in share be up with XXXX to more activities than negative earnings XXX anticipates revenue through impact existing this expected incremental interest prior June. financing on

points Core of revenue, of expect Let's to we the contribution from adjusted turn quarter XX fourth XXXX. M&A. about

share $XXX an million and or between XX%. be comments. reform. increase positive points impact expected We revenue XX%. increase per of between to share $X.XX to back Adjusted U.S. an increase of financial and on of million million results. XX% call I'll Adjusted Adjusted also my adjusted point one final of two come That in some from turn and to XX% $X.XX to of be per revenue and $XXX headwind earnings adjusted review concludes $XXX of diluted XX% relates FX for Jim to about an XX%. expected million, $XXX our tax increase $X.XX to to the should of EBITDA. EBITDA the is expect the

James Peck

Todd. Thanks,

portfolio, businesses and very on me I of above outstanding continue the performance. we Let end to where market assets strength attractive diversified deliver our began

are conclusion about in that CreditView moves, to position our ability time, and this into make our technology organic opportunities that, and XXXX. We ourselves a back time confidence have for great to to the we slowdowns XXXX enhance growth I'll we portfolio and up whether morning isolated for We Aaron. or ongoing the Every leadership. better At we with TransUnion and growth. continue trajectory. in whether CreditVision, even With same the M&A portfolio International strong talk further keep turn heading up the our shape that to set long-term through iovation, Callcredit,

Aaron Hoffman

Great. That concludes our prepared remarks.

the can that one that we ask so For question each you only include ask we participants. more Q&A,

we'll to take questions. those glad Now, be

Operator

comes William now Blair. First session. Timothy go begin ahead. the We Please [Operator question-and-answer will McHugh Instructions] question from with

Timothy McHugh

you. Thank

and healthcare to business? front end guess I on you guess just guess I about business, ask permanent? are on of that First, the elaborate they can wanted issues that the in the what aren't I particular confidence

James Peck

Sure Tim, this is Jim.

back end, some payments customers. bought we've the our confidence under spot I of consolidation have heading the we us give just that about still into deals dollars billions XXXX. remain of off, a there's primarily recently denials. in of happening talked set we closed that that first very in confident -- So, our And front end healthcare are In market, some which uncompensated care. And we gets Rubixis, and a of with We of well-rounded the the with lot issues on solutions. the into guess in

a we're is very overall to So, our that point on trying is business. that portfolio bullish guess, And very make we're very, I strong.

things the wanted able have a are go for that We particular to we way quarter may when business. a doesn't we absorb

to we're able that. so, And overcome

itself is silver business on this the hand, next fundamentally year get business the the comps very and other we'll strong. the On lining easier very,

So, we're very bullish on it.

Timothy McHugh

mergers guess And an quarters the easier. it, or This just I where expect more get get impacting to more I issue say X.X you this or quarters is negatively stay… easier to should client comps and guess just comps growth clarify, those three before that though we

James Peck

statement Tim, based is of the So, here. amount business And back not was that on to of there. the thinking quarter-to-quarter full and end trying closing actually I bullishness primarily we're my year go a about

Timothy McHugh

you. Thank Okay.

Operator

from ahead. next JPMorgan. Andrew question with Steinerman comes Please The go

Andrew Steinerman

Sorry.

it's I that's Todd on selling new data in wanted more favorable online dive and products. Andrew, backdrop benefiting hi, So, to from services. a mentioned

by you're wanted I Specifically, or get from and ODS not how revenue from assuming organic the third asset for to any growth if helped how ID know quarter didn't class is you activity revenues I quarter. product positioned TransUnion fourth hindered credit in the quite the said, bureau. trusted the other

Todd Cello

Okay.

is good thanks question So, the Andrew This Todd. and for morning.

of trends we're dive online let the kind in just data into So, me services. the that seeing

the to blemish is say So, be where would say kind growth little organic growth we're I two are mortgage would I into we're other kind of equity us a look a concerned, of of kind looking looks is when the see values. sometimes of card, downtick pretty we home with bit the a products. at across little There our credit for the those I that your in uptick. with revenue of volumes consumer was seeing as XX% overall, see coming But economy about question higher. are positive, credit kind seeing continuing look would We're mean the minor be rising previous rate end I bit home at markets really in we the as still that the the we card quarters, far would a in lines portfolio, trends we did good of in our but that think just there. came rate lot interest of the otherwise,

continues about be So, to and then us. neutral for auto

in for So, first Fintech, continues advantage in the that leverage the space. us of to kind kind had very space and overall we've as be we that mover of strong

of So, as pretty growth in actually We're expect that proud we kind in able we're seeing we're the to markets kind on whether XX% when of good. we put all of mortgage that all the continue slowdown the to out feel just in particular.

of these simply we've pertains I our committed nothing don't assumed And a is that with is, revenues what one monitoring. we've that. appears guidance that of the of what indefinite Equifax. what the the we're are in on amount question year And know in think to As of part more consumers essence ago continuing they time there your of just terms off credit monitoring because year it we just done getting to from services, they're kind is second that

conservative we’re in in not if and you we So, that assuming every then guidance transparent just included. being there. other will what's fully revenue our And continue very we done tell and does it like be the quarter in on quarter, is have that

Andrew Steinerman

perfect. That's Todd. Thanks,

Operator

Barclays. comes Patnaik question ahead. with next from Manav Please go The Okay.

Manav Patnaik

that. from hoping you and big Again, you you up just guys. I last there elaborate significant was morning, had any Good quarter, there the sort opening about you. Thank XXXX? what new in I setting opportunities are talked about winning that competitors you wins of into business how your XXXX. on Was well comments, think in think the into

James Peck

me other been some certainly with consistent innovation, been and with Link. maybe occurrence a taken say drive take while will kind but more share while where work back not on for we're were step message I revenue Sure. names, share to we RFPs I our recent, specific We based let have. to taking that some out on capabilities, CreditVision, I there we actually that of they Prama think otherwise and can't new a through which even than we've recent based based that might though. CreditVision like alluded get on is things being We've have acknowledging, led

that help it for meaning a revenue. have stated to while of so to XXXX as to takes get should And running. well But good us quarters And these things they're now up IS and relative it bode U.S. us. and you little set

Manav Patnaik

this U.S. a sorry. to that Was clarify, just comment a or is global? And

James Peck

indicate well. it's Yes, winning don't We're and that we're the comment, taking there very portfolio internationally. the mostly also doing U.S. well not across share want but I to business as

Manav Patnaik

right. you. All Thank

Operator

America Okay. The from Merrill Please Bank question Gary with comes go Lynch. Bisbee next of ahead.

Gary Bisbee

it put you to wanted there guess fraud really How to morning. big the Or or fraud Hey through. is about iovation bit your it should together. iovation an with guy, that I good a comments and and growing together of of And went that, business ask I the big think fraud sale to rounds sort part as how suite out an is ancillary us as Thank of products can the potentially we this overall? the directionally this you. that give or is fast more how there. fraud sense any opportunity business you that’s just for bigger opportunity

Christopher Cartwright

The product Cartwright. both which also our take good about confirm at our in data have archives repositories the for but Iovation am I the knowledge morning. consumers public exciting a that done years TransUnion, us. we here we is two This that identity. to from Chris Iovation. question I obviously have mean what opportunity our traditionally you fraud is credit going and is to complementary on really And it’s with Yes, highly

authentication analytical which And an device Iovation. all to which and developed being integrated now together bit We we at is We in that product of core synthetic service, determine models market with call verification quite and leading authentication have the that. of acquired IDs things also IDVision we stitched actually IDVision this suite, that’s have like used, we and there’s more. passcode various one-time a digital

from suite, really which across just in the and around capabilities there the robust we’re suite. U.S. and been TransUnion exciting, pipeline, cross-selling Vision integrated countries sales really have markets a portfolio the already ID the is into the international in lot already both So, a world, we our it’s is built in of getting

think from So, this it’s as we've leader solutions. we cements various this growth position globally I market fraud our a and to state will our accelerate know think in clear DRA further going I attractive been and getting

Gary Bisbee

of within TransUnion? the it any And to senses scale

Todd Cello

of size are U.S. that in significant disclosed yet, our given business. haven’t the fraud our but we it, haven’t relatively Gary, products We IS

assets So, now it’s that able think drive the forward going basis, growth the together for to a by on about just this TransUnion. go putting to that our be

Gary Bisbee

thanks Great, guys.

Operator

Jeff Baird. comes Meuler Please go ahead. from question The with next

Jeff Meuler

weak the through Maybe Yes, in up thank market you your earlier of I and that’s good lately. get questions. think stocks talking different seems you. take just of on market the portfolio vertical, the kind concerned have bit housing a of a that generally a little market, the power some be been have healthcare about, about the but auto to softness and helping

of just and I long you negatively when and refresher the to September how your a way your within you see that can some indicators. a to sign So, to like data just seeing market you impact maybe you give past and the little as visibility into Are in change? customer as you base, October in seeing roughly if leading into your at on just inflections Thank the you. guess look would that us

James Peck

am stated. I we already restate to Jim. what its So, have just going

can more I know think really and space detail that’s are go because all sales of to We way lending then all growth, and poised have offset positive, was grow remains we to and in some a question, [ph] going answer are really mean you’re inflect look a how lead if back slowdown that things market and the softness you rate, is that, relative trying recent other I mortgage anticipate. here, remains when if drive Fintech point, things into of when bad, that, the obviously time. know an we to but enough publications, rest of remains really sales auto like like strong, depends at to planned don’t from Hillock positive, consumer of we got seen we’re Card have but that the to and so your transitioned recovered. I new we would refi don’t slowdown and to not before seeing And get a somewhat. quickly we out have our kind of for we we we had and necessarily that you and to but that to grow grow the seeing think so that don’t continue

working, generally So, market big recover rest we that’s aren't around, we depends it which the quickly of the market, find simply more question but the we a of than seeing but that parts much that. on

so, would And thinking. not I into your factor that

Jeff Meuler

you. thank Okay,

Operator

George The next from go Cowen. Mihalos question Please comes ahead. with

George Mihalos

Great, thanks. Good morning, guys.

just meaningful box? the scoring about -- IS half that can with that in healthcare the Just on the start thinking of come wanted are from more get widening going point in revenues in can that fourth beneficiaries in Jim like, maybe to to broadly, the tick the of credit And sorts to to back to XXXX? the up FICO terms changes trajectory U.S. business Does the the we some back then of on go the that be be a back. how quarter accelerate of starts bureaus meaningful and

James Peck

Yes, sure.

view to view, that would prepare that very XXXX I about by is way it I the we closed we we good in benefits does will that use do though, business to and the service. some the take healthcare, pay customers regarding deals we’ve work know I The feel feel way mean our -- works it So, XXXX. very

about good our So, to rather I going that about. it’s this try and about the at would quarter, I overall guys talked can very quarter feel I say, not you this good feel start but XXXX. I we’ve say, in and to into point very business fourth

using to phone. and of seems lot cases of cases. going in that our kind and to the those it We create I more scores, we data are on be have is that some scores. answer let on different him more I'm generally based or FICO, will since Regarding the our migrating, say a Chris in own world

scores different whether lending thing, use other So, diversification our mortgage generally or that’s it’s the kind vehicles. customers a of the of good of kinds in

Christopher Cartwright

scores is the used bit, or set choose, to our innovation the if variety of beyond such payments, scores that alternative clubbing a were based few expanded really alternative thing industry appetite and for on credit That both few other ago lend introduction that programs, whether and TransUnion, complete to comments I quite growth. that to also positive and which trade TransUnion it lines but as combination of in the in developing Yes information, demand you we’ve were years back rental information call the scores. credit it’s started great you now a traditional the a a of data years an is sources data, whatever of pull historic becoming a there deposit But real think broad just of amplify alternative Jim’s data you term quite with provided had a now information. the this continuity a standard for is

then partner cement through credit acquired year acquired which of Some have space in we of the space. leader And FactorTrust, in for the unsecured LTC was firstly and access position because heavy last to from the acquisitions we’ve short credit trade years direct to lines alternative to made loans. a captured long-time us wanted and dollar were market various this we that a lending score types term online small our

a the these announcements continuation price with define and them real from I the is positive more well with and for I just worthiness benefit industry think precisely to So, and of broader a it’s that risk. using credit positioned our segment market I Jim TransUnion agree of data set customers think consumer trends. that really a the trend of seeing recent to is help a in calculate market, which

George Mihalos

for the Thanks color.

Operator

with The Please comes Evercore from next go question David ISI. Toga ahead.

David Toga

on of Callcredit’s do comment and comes percentage any UK you if what next what domestic expect from International Could morning. of demand revenue from Brexit you versus year? impact in Good you. Thank March

James Peck

Internationally, but United it’s and question first all the I part don’t of like have is primarily depth, see the in comes primarily so Yes, itself. the asked second products, revenue some then we’ll the think your fraud based on think it, this we’ve analyzed to would just is almost Callcredit half we is about Kingdom at I any of that there talked that the all. business on you And you - look, Brexit, impact it’s

David Toga

you Thank very much.

Operator

ahead. from comes Please question SunTrust. next Jeffrey go The with Andrew

Andrew Jeffrey

the taking long-term for offering the Hi. CreditVision CreditVision and market FactorTrust. Should cycle and get and Jim words integration see particularly go you it talk with trust way opportunity you Can on with 'XX. the to much products the the a integrated Link sales a appreciate of this growth very solution? color reacceleration as other of we you question. bit factor you little do Thank think same ramp into IEC newer Good in about that morning. in those you'll as Link in perhaps the sales

James Peck

Sure, every so we have and lives Chris here. And he breathe that day.

we don't why answer So, him have that?

Christopher Cartwright

And And do file that or again, for lines. consumers evaluating is no there good is a called on Yes, for left really both and for what alternative which calculated we Jim really we're Link access than runway in trade less CreditVision about no trade sources four products center data our more CreditVision, file to like lines file question. lot Look, have is said, or more. even of thick we consumers that. leverage to of and excited

for results years, had look the of our at couple sales past you of both If we solutions. robust

So that's already our incorporated in in forward. revenues our run-rates go recognized

to and and lead innovate, the We materially a CreditVision Link already market space. Link score But Link for good up refine selling future. of where continue elements the going to we're we're this CreditVision, stuff I we to think do to and lot And our analytic both for a that's continue already, that want techniques. data I particularly CreditVision as clear continue the lot be pipeline of to help with to going that incorporate more us improvements to release

Operator

question ahead. go Warmington with Okay. Bill from The next comes Wells Fargo. Please

Bill Warmington

everyone. morning, Good

of wanted you whether that. for clarification of FICO that the was guys question of also finding alternative in is you just scores. or a And addition ultra-score to Are part terms FICO be to the yesterday. finding score? FICO ask use a the in - in of to of I that scores So, there use And increased on a alternative are the going that then you announced you're place score

Christopher Cartwright

the But then this data the point in answered the been industry new based And market making core was providers has score again, a Chris I'll where beyond scores credit and to we there traditional continuing is bring this with range within earlier, precision table. one estimation. a had lot of first to I credit. continuing it's improving on answer the to innovation around comments of of are refined Okay,

competitively of announcement the Experian are announcement similar We up if industry, years what as and the across ultra-score. you the there for is alliances FICO not But we score. you to Because that together focus are have data that point recent to years partner the own, directly that, part had our competitor try X refined for of out now. over competitors we look the the and to that a create pull been breadth have in and a and they focus of of need data is that more really we

you the products. traction such I data very create score. of group in evaluate that an just our we it on today. We an that And the But the partnerships partnered at competitor of where have our in necessary haven't ongoing material and just order want variety pull best a That's to work FICO risk be also the industry sources hard several whole potential of and don't to clear part alternative our sourcing analytics lift market. do with competitive ago data. to current Lexus, in dynamics has innovation. see we to example needed probably data to to in believe another it I I'll Nexus the years together point

should it's the So, and to innovation and expect ultimately continue to products consumers. for which leave better customers is our better you going for that is going and

James Peck

simple gives this this comfortable I'll alternative been us we just us. very time add, pipeline our a confident our we've as like competitive also But with on maybe heading leader and we're response confidence and a into and is focusing lot [ph] to in point, in our and And of this some XXXX. scores. market data closes a feel position for we're Chris's very reiterate

Bill Warmington

you Thank very much

Operator

Rosenbaum Shlomo from comes ahead. question Please with go next The Stifel. Okay.

Shlomo Rosenbaum

stuff me your going legislative directly to operations. is, all that Thank squeezing end. question Hi. given that want in, that a legislative at in some of just do win, or the they reporting like look the you of much legislation of you been anything could a potential Have that guys a kind take ask house and to the be of thought with about can you risk? potential looking them, clearly champion a floated the for terms you credit on things Actually, us? just season not is how that at we're business in Democrats recognized the they're quick very And just for the But that the just have potential that. in I has share

James Peck

So, I of that with, position connected stay -- guess they're our to and sides or work well guess the about. our as We view we and don't try we I legislation to thinking both want house as other than close the obviously it. I build help best mean stay to to we to on there any work the consumer. what happen the legislation have possible conjecture provide might for them

Shlomo Rosenbaum

you of at night keep So, up this a not thing. is type

James Peck

No.

Shlomo Rosenbaum

Thank much. very you

Aaron Hoffman

Thank morning. Have your to the call. hour end the the top day. That for you us this the wonderful everyone time to brings of of a

Operator

concluded. today's now has attending Thank conference The you for presentation.

disconnect. may You now

TransUnion (TRU) 23 Oct 182018 Q3 Earnings call transcript