TRU - Earnings call transcript Q1 2019

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Operator

Good morning and welcome to the TransUnion 2019 First Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Aaron Hoffman. Vice President of Investor Relations, please go ahead.

Aaron Hoffman

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

we Todd Peck, and Cello, Officer. today, Executive and Chief call and Officer; Executive the have President Jim Chief Financial On Vice President Cartwright, is USIS today. Chris of the on call segment President the also our November, this of In May year. was successor named effective Chris X Jim's TransUnion our the release call earnings website. posted slides to Relations We’ve this accompany and on Investor

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

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

So with over time that, let me to Jim. turn the

Jim Peck

growth industry-leading and the top driven of comparisons year. specifics. challenging as started walk balanced Chris achieved again, will most these the services. you're, tier with continues Aaron. TransUnion to spite innovation power market the good by full facing and be conditions year for some the choppy our to the We Todd financial as Thanks, through raise diversified portfolio results We capability. the results, deliver year well allowing to guidance distinct in But and you us results. The of seeing and in for

with by ourselves four growing data-driven as marketplace financial but we not in for years, established As create the only ultimately have solutions, as markets value-added and Together, world-class attractive for capabilities. term to in a one is position space. occupy TransUnion enabling these execution, player themselves I've TransUnion well engine, the our geographic participates and special consumers as to data highlighted better vertical above We cycles. past sustainable make providing solution. markets both is place a for over top Underpinning a dynamic unique long unique underlying in situation a innovation, that relative growth deliver our customers this able and through the outperformance consistent a

public marketplace, bright has offering of leader have been had in that outperformance. TransUnion I and every will is industry. doubt to similarly TransUnion resulted that bit lead consistent as consistent you've this seen continue June in since financial XXXX, no our future the the As and our that in

walk call the through Chris? over turn the let and I'll Now businesses. him you Chris to

Chris Cartwright

XXXX we're Thanks, in TransUnion and the come still confident to beyond. deliver I'm as line Jim. that we company. capabilities believe and our in to leverage I Like you, bottom to and data is assets the unique well top best growth attractive continue positioned of

helped weather out, very as the us As International pointed first again that challenges Consumer allows strong USIS. Jim of and the saw in quarter deliver issues portfolio TransUnion's Interactive We consistently results. some to top-tier power performance temporal in and offset

USIS. there with me let start So

growth As our in posted segment. you consistently know, revenue largest we've double-digit organic

we've improved to quarter month confluence we're and term we short slower to was in However, the moved were quarter. used circumstances already due of as than in have first first the through the much expected, as nature a that

has XXXX the of delivered strongest when very is this quarter company. growth a quarters of one to the the So first is the difficult first public which grew that to piece revenue segment consider faced organic XX%, as division a comparison

be would guided in comparable the you last on that tough, knew our we this and call. we So

as Second, banks the they putting of financial significantly year, substantially year-over-year. on mortgage the were And since on saw they services mid-teens. has down the sequentially, deteriorated call, indicate previewed that decline our last number earnings from stress large a market originations last vertical. we also Recent comments in

However, mortgage picked not it for the as and and up in interest year. Fed first considerably the most raising late importantly, quarter the signaled the though, rates of that the posture its remainder changed would market rate be

sort were XXXX. customers quarter likely market They the earnings we generally broadly what confidence quarter suggesting the pull services, customers the within lending is which our that we we has early cautious, rates. saw second same trajectory quarter its would in accelerated in see U.S. the slowed early was on reasonably of have and against customers interest stock programs. our news quarter. level financial entering heard today. see growth also XXXX waiting activity we back their year, Now momentum was what their large as the of more to marketing by season fourth comping into the during of April, The activity after a from Sentiment strongest and customers some the the correction into great of month this of with would of economy marketing expressed part Indeed, and of the good March have continued head sentiment in

credit innovative XXXX Another plan gives trended outlook our and longer-term data CreditVision industry-leading and solutions. such in our the is the point TransUnion at solutions and CreditVision alternative confidence Link, us that as

in is the these contract with double this year. significant see of was to continue we vertical total this financial where expect financial two in first illustrate win our pipeline. first the in opportunities robust full ago for services to quarter XXXX, continue single it We products quarter. with together, and to for the organic a To in our the year pipeline building Putting grow revenue being point, a digits rate revenue, the all services insurance high

Now turning to our emerging verticals.

performance. very to strong quarter first Growth new products balanced is wins, conditions. had real well solid and was customer positioned which across new good a of to the bright insurance, underlying market One deliver spots and was continue

we of acquired capabilities with product. on instance, looks with the with National eBureau. and business pipeline this our For very large strength meaningful customer we And Solution, also signed first production for promising a new full Record in Driving our have the carrier

calls, to in discussed of words, to Solutions this many and recent on Also, well. opportunities alternative see come. Risk the in previous that other the set years all data as we've we as are in us success In have move and years through for momentum the incremental we driven place for in up continue Driver's for business elements XXXX As vertical. pipeline insurance and trended are building TLOxp

strength market, quarter again that in offset compared collections weakening Now a partly vertical was by quarter growth this declined year ago. to and first in the the

is historical headwind, a consumer the levels. also the economy an indication certainly low and is compared that healthy as remain to relatively U.S. still this While are their default it rates

vertical, this our Now our year, was plan a to second quarter in situation and strongest consolidation care health growth customer for turning we which we both the XXXX call. last of previewed their on our anticipated lapping quarter and it

be contract in we care of base providing growth of the much expect Putting new results the year of verticals setting and better business. us stronger first as easier rest next together to the to of signings thirds the over customer importantly, continues as total care this anniversary half Rubixis health then beyond. results year, together, up of the revenues. in health year further they're the three will good, catalyst flow continue to and to we the should flip second about And another services are in and for organic this comparisons implies quarter stronger two than for same expected grow financial all The while those look the quarters, in iovation, our the as had of the two faster acquisitions all challenges, consolidation. see its segment which USIS the HPS So

deliver to nine in year. year. segment. have planned the we left continue revenue about to past future single-digit USIS it, organic be be our Clearly, performance go knew year. that slower just months quarter we we'd highly We We consistent or the in for view not and will is the results start importantly, where with full more thought we'd for the our We of with with are to confident USIS of first growth growth high a the

As I it's segments, other portfolio think and real a within worth is on there that two I to valuable TransUnion. move point reiterating our my effect earlier

results very consolidated Our for that reason. were good exactly this quarter

there or two results have been was the in seeing when Just the we're quarter helped benefit Interactive. exact elsewhere, as terrific International strength this total headwind USIS and same if of company Consumer drive with a times there the

were no a engagement, and deploying international from new robust the and were tackle board as with focus far we attractive adjacencies. approach within on success. we first. We of Results India Look Let’s the continued playbook benefit around certainly across diffusion where great product, client world International this market. executing our strong

and consistently outgrown currency we've in out saw first the revenue market, quarter, However, meaningfully that and growth. constant XX% play with clearly the

XXXX. first the few reasons India are The year-over-year in rate There be growth this. for quarter a should for largest

and more for global has since. as quarter very we revenue significant This move will generation the nicely are XXXX off First, in we the platform and commercial solution ramp the in successful, rolled first through growth is our score late and comparisons been year but out seen a year-over-year in taper have normalized.

direct-to-consumer saw make that favorable some in I'd won't business in revenues year. recur we The the likely the other point timing is later and that batch

world. of accelerate most here largest other and have the saw organization fully we is is in been the strong evolved progress strong out TrueVision, likely So our over and positioned pick greenfield year. the to currency portfolio are had in America making begin a closest which half still launch platform. Since executing rates. growth in also Pacific in pressure The all of we more rates investing the our the there. coming to deliver the we by currency growth U.S. Colombia, acquired quite U.K., comp, U.K. and credit more Canada, we quarter. track very most technology but In past one sequentially, seeing our to slightly it Again, to we've that our than dynamic growth U.K. execution and XXXX markets strong At the in sets compared in in what of revenue revenue which the on seeing India offering lower attractive very we've Latin the CreditView has our I and growth. the quarter. well the the single the call our of like established we're of out we This exciting Latin some outstanding. fully as be line and products we local while show middle several where business plan constant onetime the we're in already integrate strong we Asia is Asia progressively the a very XXXX business, the revenue short, name first up of we're the the the clearly second and double-digit which XXXX, implemented we and to up the solid year quarter currently And was growth of Canada Pacific, was saw to in ago, We're delivered around and the as in playbook. with playbook, revenue U.K., In execute expect first in in approach, dimension so takeaway fourth would market. the to bureau nice I'd we expect America, very trended in growth for each years, that results very outstanding from had were broad are the regions won't more years playbook in same quarter and a our that Philippines, will business to with us which, through it In revenue U.K., into in quarter, with the region, adjacencies playbook time, the be course, market as would growth the with of our point that three of TransUnion on also only quarter. back able the continue

and quarter good indirect credit another both had financial our indirect for first a value our tax direct proposition contributing its of free quarter our has in be the score been offering season, is that at CreditView compelling the is for indirect to quarter customers continues and to institutions, Intuit, the highlight to preparation end We Interactive. Consumer tax filing a partner, process. the in strength in to One strength with channel. businesses. Moving

of is make focused side products another reach who the we've to the we our financial from improved retention provides market marketing direct our our up real over recognizing loans the well growth to program Also a credit It their in the level like as specific, by quarter, these Credit nice CreditCompass, in assessing they we consumers. for part individualized heightened smarter which launched consumer of consumers successfully business, similar creates the our and we and we results of a of experiences On with and the first provide way This good The a and features called for Consumers to a continue in are see is value to millions personal as increased now that cards and score interests, a been data to the health rates. empowering utility paid and achieve of have in consumer's revenue services. improved are customers new period direct of product the plan data actionable TransUnion credit months. consumers of XX an credit steps Monitoring Americans decisions. want empower credit credit situations.

outlook. business of turn up discussion will and who over now the through wraps Todd? time So our financial our walk you segments. Todd, to my this I'll results

Todd Cello

Thanks, Chris.

As usual, discuss comparisons will first be XXXX quarter today noted the of of simplicity, all for sake the otherwise. against the unless I

with income start let's So the statement.

to of reported breach First on headwind in XXXX XX% point This consolidated a a XX the Adjusted monitoring acquisitions quarter. adjusted and Rubixis. and currency. increased iovation, growth revenue quarter credit of acquisitions from quarter. about was of HPS in related constant in the Callcredit, competitor contributed XX% was approximately lack The incremental the revenue points from a basis a one of

Adjusted handled we As constant this year serves impact Organic adjusted year on and was amount reminder, now currency. immaterial X% provider revenue in growth, and a constant XX% excluding quarter. the last competitor's significantly by subscribers. monitoring breach, basis last offering year compared are currency reported is to another a receiving the as of in an the fewer of from a increased EBITDA XX% revenue this

as services a and costs adjusted revenue higher adjusted associated with up EPS operating quarter in tax First with Cost our X% of to rate. XX% a SG&A costs XX%, was recent integration effective increased and XX.X% our data growth. grew strategic result acquisitions, of investments related and higher initiatives

and basis that reported show last recent to expanded did we on had about As good see help you of underlying wanted of all to year, we acquisitions margin have you the the margin XX the our points. impact performance The business. by

of used acquisitions, how the our cash Excluding first to our with of were points result business. basis balance a largely flow up the highlights compared from look margin and in at sheet equivalents million on some margin Cash the typically quarter. we profile a XXXX. comments reflecting expanded $XXX of strong cash is during This impact modestly our my the and the wrap results statement. our to underlying year-end business up on XXX the quarter, our consolidated I'll incremental about the by flow

items me million of cash from So walk those operating our performance. a year-over-year, from continuing up strong let you operations as a result through a was $XX largely First, good

of revenue in Second, expenditures in quarter. activities million for at increase investing million, up $XX we $XX cash about puts to as used That million CapEx quarter. was X% capital the saw primarily the $XX

see course notice this year, of metric As revenue we we still increase anticipate capital our you'll projects. about so tend the on of from X% the history, spending to over

that managing also retire shares, on compared cash decision the is program mandatory in to our financing cash in use our treasury to is treatment activities primarily the to cleaner our to increase The was cover first By to used tax quarter. and withholding stock using quarter. items. two doubled cash modestly. year-ago this restricted Finally, taxes One due shares a reduces vested for these payments outstanding almost

quarter in first year-ago fallen the from the X.X has is The revolver a that item partially a by pro out and quarter. point of at basis didn't quickly have now. XXXX. payment times dividend the end to of X.X offset I'll do quarter the forma payment This times leverage first we increase first a in other fact the on was we

expect drop end by of this the see to year. X.X continue We to less or to times leverage

revenue and segment Now adjusted X%. EBITDA. looking at revenue USIS grew adjusted

the iovation, of revenue impact of acquisitions X%. the Excluding organic and HPS up adjusted Rubixis, have been would

Our financial on and services X% vertical a grew X% reported organically. basis

levels X% grew screening, by combined on and and organic remained strong The collections health for other in basis. health X% USIS rental defaults growth up at results, care, as and on further Insurance Adjusted an XX% basis. in weakness to including was X% low sector sector, relatively organic and verticals, offset insurance, continued public deliver care collections historically. EBITDA increased an lower-than-normal public and

to XX% an very Adjusted and the row. XX% strong currency. constant Moving quarter currency segment grew constant revenue organic a was On in International. second a the basis in XX% for up

You XX% TransUnion playbook highlighted Canada India. out across meaningful XX%, with Latin our playing growth constant that double U.K. up constant can Chris and of currency is International The to by see a the quarter we Asia X% impact the expect up a digits before revenue currency Pacific improvement second fact markets, be up growth mentioned other in America slightly in see the the in elsewhere, XX% the in currency constant some third growth softer the basis. the acceleration on towards quarter. already we and above-market

outsized to subject certain International result one for that if reserve Adjusted an reversal includes performance On and that is was organic the currency surprised for emphasize that disputed quarter. make of we This was point it's constant claims EBITDA basis, no or XX%. that litigation. up think next grew concerned a of important sure I XX%. see the it

XX%. the up strong constant also very our assets would've still Credit Karma. organic of want EBITDA to Noddle, of been currency Callcredit week from to last Excluding largest the the we completed discontinued a mention that I adjusted sale reversal,

have by now future. balanced growth three on and near track Interactive to two driven in between closed X% adjusted are Consumer and We of the sell five pieces the channels. the the final sales indirect direct increased

are in out, for Interactive mid-single-digit Chris in line As X%, with the revenue expectation. solid by pointed grew Adjusted increase we growth EBITDA growth delivering revenue. our driven Consumer

Turning for XXXX. guidance now to our

with an me start assumptions. Let to base some update

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

For adjusted EBITDA. There impacting one the point a FX, a from also adjusted is see point incremental both revenue about competitor's of we of revenue breach. and absence to headwind from expect one headwind monitoring

We revenue XX% come in to XX%. to expect $X.XXX up $X.XXX to adjusted between billion billion,

from points our guidance, expected XX basis, to be So the $X.XX, $X.XX be on XXXX. billion Adjusted be about between the At X%. to $X.XXX currency of adjusted excluding to XX% incremental EBITDA to margin basis up in for to and earnings X.X%. should XX%. diluted XX.X% the X.X% is revenue are EBITDA to year X% and adjusted billion, per an up share expected organic monitoring, between high constant Adjusted expected up is end up $X.XXX be

on discussed call, quarter's XXXX. last impacted we in nonoperational As be by adjusted items EPS two will negatively

to and our XXXX. last we as of billion and expense extended lives technology interest transformation. useful second, depreciation software of impact our in fund higher of June That in of higher reflect debt to $X.X is we in drives year. higher-than-normal as amortization is expense developed the XXXX internally acquisitions XXXX the First, about And added

our EPS There know EBITDA and relationship to a you hold this adjusted adjusted will no year, see we highly normal XXXX year assumptions. XXXX more a we are growth. changes return on are modeling items between what will full EPS that based back in and nonoperating growth confident today these to While

be approximately should $XXX XX% Our to in again is and amortization depreciation XXXX. tax million. Total be rate approximately expected

integrate million. as We aggressively and portion, will $XXX Excluding this the invest amortization expenditures M&A we subsequent capital revenue year new step-up products in our million. depreciation X% should of be And interest should that and net and expense recent be approximately about about acquisitions. $XXX be anticipate

second provide of assumptions XXXX, the for let quarter. to the Turning quarter our me

about expect M&A. we of points revenue, eight contribution from adjusted For

expected X% to an headwind acquisition breach. million to revenue also absence headwind FX when from revenue also We XX% million, come million are XX%. one both revenue adjusted and a a between final of competitor's be One Adjusted share in you of adjusted timing and There from revenue between to earnings the diluted $XXX EBITDA. becomes one Adjusted for expect and should I'll $XXX point of account to concerns on $XXX about with increase of the for expected year $X.XX point Adjusted $XXX the million, incremental is of we X%. EBITDA how XX% an from point monitoring to $X.XX, increase an leave per organic. be of to XX%. increase is

question some gotten few acquisitions As three this for benefit. we provide of to I made in June everyone's I've XXXX, times want transparency a and

anniversary that revenue when any Our organic. count we month month policy revenue, booking it of for is a of for transaction the as hits in all the business one-year And organic. its the becomes that

HPS closed hitting middle and Callcredit of So the month the in the milestone June, the in that closed first month. of day the on of three

the will count all June we revenue for organic. as So of

beginning no of the back our some in helps XXXX, benefit That growth iovation call and that financial will acquired final July. month begin Jim organic to I'll in and you was booked June quarter. model concludes results. this the as of review comments. Hopefully, the As my revenue was last turn day in our Chris for to it on you

Jim Peck

your and highly evolved. over be to you we interaction our a TransUnion officially team. let of in board the It given time, to businesses. take offer will thoughtful Chris And moment few tuned people in you. want he final and see culture our literally his to TransUnion as really years. all past great and things I four not Stay and to for I’m that I creates real he the a about to the before come would Chris very it as dive I shareholder passion aware TransUnion Q&A for to moment of our engaged, and highly that cover their of have weeks. comments effective associates shareholders work. effort a of analysts to TransUnion the who and TransUnion demanding thank support into thank from going should lead wanted value. want and should TransUnion more the level that company of be it all is shareholders at thank much without Board dedication, a management differentiation the incredible than clearly of All amazing portfolio is Directors. diligent the is

So torch. I the pass

shareholders CEO, associates Our our not they hands just benefit good to are of in all continue but Chris will Board. to with becoming you. over from and our Chris,

Chris Cartwright

more Thanks, for our create one a done to everything as Jim. you our for team more what customers. associates; I me want even value our for to you've also, and thank but we've for and TransUnion shareholders offer so done

the always While necessarily part TransUnion of is. the in evolve surely will company fabric and what of be future, the you will a

you. thank So

at This important: putting continuing the we our outstanding company, by in win. how that most focus high to performance what confidence we relentless he approach we've established. to track a value-added know to focused record and that on have hungry culture competitive deliver compete a and the innovation From Across delivery associates unique is that for remain every company TransUnion. strong wrap high that serve built with my we've deep leading and our built, performance aspect, our the ability performance – achievement. to in go-to-market I and outstanding markets on how consistent, I'll is up of is So products to that

turn good to Aaron. And decisions back confidence that, durable as growth great Given XXXX, make have we I'll I will long to with generate have over even right the a we that time investment term. very that, the the

Aaron Hoffman

Thanks, Chris. That concludes our remarks. Great. prepared

So for each glad now ask Q&A be we’ll one that take include your you more question and to questions. always we participants we can as ask so the only to

Operator

come question of from Jeff Meuler And ahead. Instructions] [Operator Baird. today’s first go Please will

Jeff Meuler

thank Yes, you.

to guess I I'm the an tried after here. get order to USIS sub-segments. the I of deceleration you of just in on question of but both address magnitude it, order the know So trying magnitude

on services, So Comps get financial tough has been I that a for been just also the down. comps. have Mortgage it's toughest guess while. I

the lending market other then of when Services categories, fintech of over balance other think a calling you're lines? those bit then like And any or were I sounds color growth, verticals And it's similar to out But outlook the just quarter. guess term health full a than insurance trend but weakness guidance better got longer growth Marketing just you've emerging on in out. on because the good, step-down provided theme, obviously a it sort Thank on you the actually then down embedding anything like the the finally, like collections I netting year any mortgage you mortgage rate. is Are similar other you a better along piece guided care when the than below last And little outlook. in guidance? question you.

Chris Cartwright

This going that I'm morning, Jeff. to Yes, question. good Chris. take is

interest as So for deceleration rates in of the think the been mortgage terms of was orders we've part some driven rising of saying time, market. magnitude, I cooled that by

And course, that of as just was reported, we and the them. the saw with expected volume consistent the have banks primary And declines across we so industry. some performance

trend quite the we quarter while high comparables, That's of particularly first terms growth comparables normal we had have In for a the of out. was XX% some high U.S. comparable. It was it for the called in outside time, organic the why

throughout services, that of trying were also considerably back and effectiveness as the led marketing and to business some one, marketing rates but I activity that was given for, in floor rate very XXXX. trends a the more in I think understand the XXXX sentiment think stepping Fed of mailing to their that material also back correction a that stock the it's a campaigns increase pause to market evaluate and firms and after that to year across underlying were, think, a stability. would financial robust pessimistic looking in we decline important some quarter remember community I to belief in midst business fourth the continue to And and go even

quarter Now quarter quarter. in think first the typically of marketing led and the line a below first activity, strong quarter I the fourth seasonally uncertainty to of marketing activity kind is the for trend

as it's was We far sentiment in slow continue seeing January activity pleased interesting. market that. thus that and April. we're was did with rather very And in February. And material improvement March. Now feel of course, in we're a both

out strong consumer QX is strong. as come wage strong, we know, growth not of that And We rates. strong very As Employment have as Fed XXXX economy, as was the well. remains pockets going GDP to they're very it not inflation. remains has still The increase high. said the and even but perhaps of

across lending prudent the practices. categories, to low, remain industry's look you kind underwriting delinquencies of If speaking

confident in so we're experienced. certainty we've space of recently this online that continuation the and and increased that And of is to trends a marketing going just positive the to combination lead even the

the things. Record different referred DriverRisk. Now speaks that consumer as on the across which market the and the two whole that all of strong substantially. three emerging One, All because is business averages. I ones, made the the and be in other they collection is subsegments. it a it industry seeds of I in had rental adoption as segments, Solution of to all National is it's grew below most the healthy of indicative our a where the up on our We called U.S. screening, segments, we Insurance still well nicely solid industry markets, think And comparables Driving one very previously practices for diversified of that series side, material the variety for of delinquency well. lines out think emerging again, is growth particularly based organic segment lending growth coming the fact are quarters rates and underwriting long-term

Jeff Meuler

the adjusted? mortgage it is the year outlook full embedded then in And guidance,

Chris Cartwright

with consistent It's No. guidance. our earlier

Jeff Meuler

you, well Thank Okay. Jim. Chris as as

Chris Cartwright

Thank you very much.

Operator

question next Tim of Our Please ahead. McHugh from comes Blair. go William

Trevor Romeo

Hi, Thank on Tim. taking morning. for good This call. is Romeo for Thanks actually you. Trevor the

Just on had a financial two-parter services.

about one signaled vertical? pricing. know a talk the you of could your be the environment first, little financial with pricing So aggressive had more intent an We services competitors in to

that was a do result slowdown increased all? Was in of additional marketing. just seeing you. economic Thank that you you are scrutiny Or the on pressure follow-up and And on uncertainty? So attributable any there? of completely the think to at privacy of a sort second, data public market any the

Chris Cartwright

I players don't business just the any in each long-term Yes, thanks this practices aggressively. of kind our competitive inconsistent for And question, a we pricing participate I in Trevor. think with of space. pursue the see very space. experience

So really the And question? second repeat you of nothing there. part to your comment on again could

Trevor Romeo

Sure.

privacy? Or So some a you was in that entirely any in of you just activity the just slowdown fourth of was think uncertainty Was scrutiny on sort marketing on of the market that of do that result public increased the data saw. the that quarter?

Chris Cartwright

Yes.

any the I the efforts. think independent mean completely it's in I privacy of and the regulatory U.S. latter. discussion it's

Trevor Romeo

Okay, very you much. thank

Operator

comes question next ahead. Our Patnaik from Manav go Barclays. Please of

Manav Patnaik

just you. to gentlemen. Good as the wanted thank on I morning, follow Hi, up well. marketing piece

performance Day? Investor have assumed true-to-cycle maybe in abnormal as more kind the had thought I a like in was think clients. guidance it think size it if maybe you guys so out said it the weakness But long-term was with than you broad-based curious of you Because laid you decent what guidance. from guys that business, of you was when your just specifically, line on it's that gave what I

Todd Cello

good Hey, question. This for the Manav. is Todd. morning, Thanks

looking something right. overarching the at we we're what would happened we had this think out we years, was Investor of right. average So that And to lay guide that as back QX, happen at that thought go was yes, Day, specifically over to temporary, When on revenue objective when I look we the almost right. what gave, three kind we that was in

base, Chris articulated, really of as in already customer uncertain. has kind just came Our

bit of experiencing guide middle a We saw gave we have this. what's the our that set on. we February, been in we little when of So going

that so we And we why I has little that the think was seeing were that marketing. of turned X% because the slower we was But part the gave definitely around trend a bit. knew guide

necessarily not a on talking talking that number So three year one here, about you're the good that we feel Day. pretty about Investor gave we you're quarter

Operator

of ahead. Please Our go America of Merrill Gary Bisbee comes next question Bank from Lynch.

Gary Bisbee

– order the some where rank deliver you've can the that two question, morning. Was magnitude questions Hey the what most some and there's have seen you with USIS during other April. that part the I you area? the marketing had right you've strengthening? go things in of into you of just for quarter Or And guess color of Thank on – cited the today. to more Good give important growth now some improvement I sticking of to couple high areas guys. largely you. theme Can the single-digit guess year? the

Chris Cartwright

have seen Services dubbish interest more March they're Well, guidance. significant the them our boosted And posture on and I volumes we won't our seen the into and market. with to have April. to in I materially. on confidence mortgage business rates, improvement we But important Fed's think also Okay. improvement in our both Marketing online in our carrying a our very in order material That's but

lines level. like in sales, of pipeline countercyclical a the I product level As year. XXXX, the of half as acquisition I of of we of a the in very particular time the of the segments of of one a of for which the an the continue U.S., more second see again, we got growth context which, will be context from bit have strong improving remainder back year certain the the in we years factors we've to resumption and to not stand the and I – perhaps just memory, collections, activity, slowing strongest combination recent was we which but and of very that and feel all the exception online of I first, these think business, good at solid across the just But economic with across marketing different comparables business all if of this to the for environment, point, materially client new the U.S. anomaly, frankly, look revenue the in the prospects about is in feel good,

Operator

go comes JPMorgan. from Our Please of ahead. question Andrew next Steinerman

Andrew Steinerman

maybe responsibilities announced that to past, to it titles the in to my function. and people obviously kind you and by the Chris, April go being lines in new some get the of all to kind to the were I ways where the promotions. there logic expected you really we wanted the me, wanted Hi, more earlier caught back on What the than of I looked get were well, divided of eye, Andrew. the and that just it’s all people change why the of maybe were up But EVPs? responsibilities successions that of underneath

Chris Cartwright

good question, Okay, Andrew.

is service this we solutions. around an were that functions the there certain you providing operation was operate in services if as selling accomplished that evolution, And U.S. of entity business to starting around was function were to and increasingly core organizational our what global within at think some within will, development, USIS I product area organization, the TransUnion center. global least a even

decided namely category, couple And so and in team what do category those take these development our operations and functions, nature. a to is to critical of and are global that those declare I really the elevate product executive most solutions the

they in of though, them such their are can markets. solutions, and or have folks those needs we have in around product or own the cements et lot Now develop be autonomy. share, They our going that global their case areas assessment or which by these maintain means core we executive in cetera, relevant to our alternative organizations there's risk way across we the businesses, were I a like that and concepts development that elevating the team. as they operating and unique actual markets, solutions international CreditVision all The they in to in But this analytics, the our meet that leveraged decisioning think fraud needs. way and can a

Andrew Steinerman

Thank to makes Yes. you. That me. sense

Operator

Please go comes from question next Our George ahead. Mihalos Cowen. of

George Mihalos

guys. morning, good Hey,

guess the growth? about say it some of even to growth and this, a think, pickup little traditional services side? then Is fintech questions the to efforts about meaningful February. financial and I also the Or acceleration two marketing I Or it you apologize quick January it there? talked faster on bit that a as missed single-digit side. their maybe if return secondly, and was talking I financial weakness in basically March two firstly, were services you the I Chris, first potentially the And there Just slower? space that were was maybe predominately pertains high months over relative given safe to to FI

Chris Cartwright

Yes.

Okay.

the of was of So broad in the year first based. the months deceleration couple

really gloomy because business There's be the it's we various reiterating of You in we're was of macro robust just that call forecast going lot it out of on and fintech. quarter. broad a sentiment grower. I growth confidence what again, that for a of Fintech continues elements have But the think uncertainty and in a it's to of activity The fourth kind space. March acceleration and April, the year. why experienced us based in gives function our

Operator

of Our Please Morgan next Kaplan question comes from ahead. Toni go Stanley.

Toni Kaplan

morning. Thank you, good

being related, mentioned marketing. reasons slower of most USIS, and just a number You for slower of them in mortgage, slowdown market the basically,

wanted anything was understand there from Just competitive a if different to standpoint.

increased to a you just by seeing been goes as you at as your Are they since does it view might some short so point that data one time time might market would you see competitors, And of given competition the that of looking you? expect that make competitive more compete of Just the breach? from the have effectively able all? by post you. for Thank in it that not frame breach

Chris Cartwright

Good my the notice Toni. the space a Okay. competitive in it's some I've at didn’t really again, pretty intensity, certainly, diminishment here been Listen, right. the almost for and full quarter but competitive been breach a tenure. we of morning, Yes, years, intensely any six caused entirety for disruption,

there shareholders. to working got So their offerings each serve people, strong and hard has and out firm quality they're

So change. no real

Toni Kaplan

Thank you.

Operator

from Shlomo ahead. Our of Stifel. next comes Please Rosenbaum go question

Shlomo Rosenbaum

taking Chris, the that into look just put sequential we Is course from UK in growth of business lot XXXX. you thing in UK. was expected in anything the a the of reverse I Thank XQ. XQ seasonal – you is growth the a seen in over that want morning. expected? that place to seeing like quarter that There was for into as Are an there of a good seeing Are businesses? saw we change have was the the to to business? slowdown you the of down a fourth Hi, Or in other to that? was acceleration And that the quarter, of change focus questions. you my sort was a there on

Todd Cello

Hey, Shlomo, but a in me maybe kind numbers and about of just talk that on good any towards morning. I know let the and that. can add bit jump you color addressed Chris Chris, little just then

And quarter, the earnings implemented gain our as the they last I amount year second admittedly, about you'll disruption think that significant the of of as back in we the sorry, to business call, post the go to exited if in UK just And meaningful they – we we – caused some change the we of business a the a exited talked in I'm acquisition. business. started bit the little traction. half

I – of So right. highlighted the pretty that another saw In QX, QX, we that up mid-single-digit X% And we are X% sequentially in XXXX. similar from in growth kind was this my of earlier they in we're happy expecting performance that QX in morning. as grew comments

initiatives to that of do and From quarter-on-quarter you our So force from we capabilities what speak, normal then though, historically when they spend customers a we two back happens see at introduce well and first of to year new of that's trajectory budgets, the kind as is In QX they kind – down speed look they growth of you it products the of for to QX at seasonally to business. been quarter in their really quarter. has nice, a But that's the a sales range. is exit hopefully, XXXX what up double-digit we as then downtick. where – as do setting burn various getting yes, reset to in expect us so QX, seasonal to a a for, perspective, up be particular, and type end just

gives on. going what's of flavor that of kind the hopefully, you So

Shlomo Rosenbaum

Okay, great. Thanks.

Operator

next Sabadra Please comes Our Deutsche Ashish question Bank. go ahead. from of

Ashish Sabadra

Thanks.

back to solutions. marketing Just going the

we also the back? quick You pipeline there? more growth also to come we And alternative talked color data. then more trended should start about to there, And traction provide any a on one you analytics. as start just for Can and see robust just see maybe

talk just that and competitor FICO. does environment? a Your in compare analytics, how to announced your Prama, Can with about the competitive Thanks. – partnership you

Chris Cartwright

great. Okay,

mortgage. the So first I overall was your of our And question be to and believe does alternative portfolio growth. having tempered overall because about to The pipeline you could relate adoption I the closing data we and and trended deals. are part volume of of was tell robust trended success your Ashish, big some the continues nice a part

So volumes mortgage But part as fell, talking we naturally, less temporal been provided about again, trended of issues the with data. we've all the that's first quarter.

between and In at what recent FICO of Equifax, change analytics TransUnion doing partnership a of really here announcement terms the and developing doesn't it Prama we're in our suite.

deep for individual modern data types vintages of seamless of types scratch credit As access offering and all you to announced we've performance, of individual a on their from invested all data regarding technology a a that. robust we file, market demand their to customers develop Recently, and all can match platform, analytics They they data performance, hub upload TransUnion in an way and where already append upload is And customer set of clients their and with upload our leading PII. and in that. scores the can and can can important TransUnion's which models they data consideration. it third-party own integrated the data, all decisioning and we're know, deeply

Equifax kind I'll indicative a obviously just partnership, think of of Now in the robust simply will. FICO competitive current analytics I terms with you out that. a clients provide to for. think frontier discussion in building I felt a Equifax-FICO capabilities if they to them, But that And It's the themselves more that offering. for for align to current need detailed for it's robust battleground, solutions of direct you developing is we're all order

Ashish Sabadra

Chris. Thanks

Operator

Evercore of ISI. comes question Please next Our from David Togut ahead. go

David Togut

throughout the you. helpful of moved Could your demand Good the market the perspective? consumer on demand, U.S. in as could of mortgage and used sort you car you from and of all some two on commentary if big And card? new then you're on auto down break seeing and a what credit April. the give also morning. car other drivers credit Appreciate auto market quarter detail commentary between Thank it

Chris Cartwright

Okay.

auto. with starting So

we For of had few volumes said quarters a had quite that here, auto kind plateaued.

New highs from vehicle little sales reached retreated all-time that. a and bit

flat though. a used car sales of previously, a more we're so if pulled requires average car. car increasing, been said there, or had than more your we've will. The new as less volume And of you And used sale credit

of a environment. seeing So volumes overall, we're flattish type

of think remains been expensive more and some us growth interest – is become difficult provide industry a course grower. penetration. We last it highs kind And strong of the it balances, the But single-digits auto a terms not is pretty rates, in for increasing think over cleared again, consumer mid will and I year. haven't new autos Card the with market late some of I reaching we're As year. growing. comps some

we XXX entrants million have to acquire some are think consumers consumers. general-purpose that almost There sub-prime active card. in U.S. in I the new trying with a the space are and

real remains it I The but And mortgage covered I detail. remains grower, growth market. of just in a we've good as a to new complete think, the robust overall pretty then, area. just just not things, because most So players fintech consumer consumer market overall, unsecured loans again, think, lending

for is demand And our services. to different starting those which I think to XX into to drive expand million million almost now of have loans. one XX.X firms Americans many of these are categories, going

each sub So such we that the does And verticals guidance the that that's are kind it the FS of provided. I the overall conditions the underpin of think within landscape space. in again,

David Togut

you Thank very Understood. much.

Operator

Please question Bill Fargo. of comes ahead. go from Warmington next Wells Our

Bill Warmington

everyone. morning, Good

run, next firstly, to the seeing look and congratulations I So forward Jim, on a great chapter.

Jim Peck

Thank you.

Bill Warmington

some And then week last what could with you strategy? question, Payfone partnership announced you and if IDVision talk for the means for the iovation, that the about

Chris Cartwright

question exciting area. Good an about Yes.

ways a acquired offerings. that And behavior, or of why of and So is there understanding marketing your on your of you're device dealing strategy, the based security even to is One authenticate are your device service equation piece iovation. network who adjust lot consumers. with, which ID important we

wanted that partnership the is technologically for we've leader information, believe though, piece, that is to right. critical long-term interest in making we And time, market innovative, our Payfone, simply and in them. an we space, phone some very in been Another to mobile secure by access investment

just we'll motivation be space. in in the reinforces be So digital the mitigation think purely of partner kind our there a thought I to big, we'll the continue product that's development it just and the – market to commitment on leader side, and online

Bill Warmington

Got it, very you thank much.

Operator

comes question Jeffrey Our of from ahead. next Please SunTrust. go Andrew

Andrew Jeffrey

pleasure. Hey, been good morning, a guys. Appreciate question. it's taking Jim, the

Jim Peck

Thank you.

Andrew Jeffrey

A question health care. on

business? given anniversary some little your the of that factors in in just contribute terms and on of acquisitions year from disruption growth, some the Aside or you the variability organic the to of you could business last bit part which that client your that elaborate saw of should faster outlook segment subsegment just revenue can drive to in new onboarding a visibility

Chris Cartwright

of the our health solutions question. Comparables have Okay, adoption you care yes, the certainly adoption part good to inherent in – well, lumpiness just back end are the back on the there in end. answer But here. of remember, is of

I think business. the important the story part our care the sales accelerating of in is health of new pace

We of the back exit strong year. That year. solution we doing effectiveness into on client of half fourth force a have acquisition is really climb we're high the We sales end as our focused really level the accelerating The this to that's had and us continued team past bookings it's in the last on quarter momentum and over integration that single-digit great next job. year to forecasting, really the through into year. quarter. new the to allow first focus And certainly, going of has

Operator

go comes from Suisse. question next Please of Our ahead. Kevin Credit Mcveigh

Kevin Mcveigh

Great. Thank you.

areas think financial of, the within two it's I what low? called out? the of my think, it of Or add that terms as you the current you congratulation me service are higher we versus end should range all emerging wonder, about Hey the cause guidance verticals be kind around factors at any and of other the Let primarily in just there the would to as to I Is well. kind constructed?

Chris Cartwright

crystal then another is always and factors. jump would probably Aaron I industry. phenomenal year, be it. initially, a don't which the numbers got We this business. There myself If it's answer driving Like and as mean, recovering we I'll portfolio. well, did, on Todd times, for and health which that's directional. the we've I'll sometimes, are in a we That guidance business is doing clearly, terrific set Todd Well, a care our have let and Interactive, said, Yes. is both reinforced up results. posted or and terrific it's job, business, great a USIS Other Consumer International terrific ball.

the portfolio. We're in strong continue not But now at a volumes, an despite of portfolio to environment market operating it's So that, component is right. peak where every innovate. we

We continue to bring on customers. new

We think, confident I continue cross very can add sell. we're to strong growth, do you would to full we we're posting, for that? And and year. the it that Todd,

Todd Cello

numbers to is Chris think we be guidance well level look full the for at able And high probably when saw of which Day they already confidence our have other, are that year, our as the it, And when quarter. aware, I businesses that opposite out kind that and said, portfolio as No, we achieve. first play a in have give important everyone we'll these that think at that I you we the made of at point of how presentation. each looking we was Investor we're perform we an

Aaron Hoffman

at And point. we brings are the of us past to that call going the off the and cut that little a hour, top Excellent.

to very we great for Have all you joining much in forward a you thank us future. day. and very the today, near talking to So all look

Operator

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

You disconnect. may now

TransUnion (TRU) 23 Apr 192019 Q1 Earnings call transcript