TRU - Earnings call transcript Q1 2024

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Operator

[Audio Gap] [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the call to Greg Bardi, Vice President, Investor Relations. Please go ahead.

Greg Bardi

Good morning, and thank you for attending today.

Joining me on the call are Chris Cartwright, President and Chief Executive Officer; and Todd Cello, Executive Vice President and Chief Financial Officer.

current release Investor to and morning. Relations be in earnings on this they our X-K found TransUnion Form the website the posted and filed accompany slides call can that We we on this report this morning,

earnings as slides various non-GAAP well measures non-GAAP and contain the as schedules, operating expenses along accompanying about their most measures. to GAAP financial corresponding measures these detailed certain financial information revenue, and reconciliation with and release which Our comparable include more other of the items, disclosures directly

Today's be call website. will be on recorded, and a replay available will our

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

With . over that, to me it let turn Chris.

Christopher Cartwright

welcome Thanks, the my and Greg, let agenda me and for our share have call this morning.

results, update on an including our provide I'll XXXX our our highlights the transformation against quarter First, initiatives. first of progress

EBITDA earnings guidance Todd with first story. growth the year adjusted finally, our significantly guidance. full India will and results, TransUnion our quarter XXXX our discuss quarter, revenue, And and will per I exceeded second first detail diluted Second, quarter share. along adjusted across . In

Todd XXXX later, conditions and in raising we are will a posture still macroeconomic given our strength maintaining market full guidance, year the geopolitical and tepid guidance conservative quarter, uncertainties. describe still the while Given which

our X% currency billion well first prequalification credit score above the to and in due realization of third-party Revenue exceeded Mortgage drove volumes. report history, organic on an constant quarter as the in guidance. X% basis, price plus much time better company's the the outperformance for better-than-expected slightly well $X growing to X% as

of pricing year, for the throughout expectation mortgage We benefit to the growth. increasing expect much persist our

in volume proved we fact, assumption volume backdrop. second remains an expectations the our in the to cushion conservative the half year as uncertain mortgage provide market February. against for And However, mortgage have strong start further despite of

international U.S. with Our organic growth, constant mortgage insurance, as emerging as financial our X% X% of currency emerging such X%. media, key markets up also by grew expectations, services XX% expected. up collections. as X%, and sector excluding Interactive exceeded as and verticals led well public declined Consumer verticals

and fourth and Consumer quarter, growth. but reverted but wage unemployment has lending healthy finances longer stable moderated, supported due financial real remained to with muted Consistent to low in and Inflation higher volumes growth. forecasts. services above remains economic have target U.S. expectations interest the rate the conditions market for

reporting calls, consumer Lending The earnings albeit standards increasing loan continued well these historical face as capital averages. delinquencies, market as deposit resiliency lenders they as rising and growth echoed sentiments subdued during potentially tight still against uncertainty. requirements balance banks remain as within recent

risk Within solutions. remain grow call XXXX. trusted U.S. led we to mid-single delivered in and all another growth digits marketing target quarter, robust markets, on Communications, Neustar in by and good contributed,

basis, while of growth, the India grew double-digit grew XXth led double digits. segment XX% Canada, consecutive Africa, on growth. with quarter a by again Asia and Pacific international Our XX% currency constant

reinforcing in program, key in our Finally, confidence against financial milestones our our delivering we commitments. transformation achieved

me this Let detail. in address more

our centers model leveraging capabilities. operating and As our complementary we discussed comprised efforts capability further last global technology modernizing transformation X our GCCs, optimizing or quarter, our by programs,

the and meet of workforce us notices position streamline these market substantially reductions costs accelerate experiences we local will operating to our program, believe workflows, reduce ultimately to consumers. and In customers completed migration needs initiatives deliver evolving the optimization model in and our innovation, quarter. We better first

roughly GCC we're track acquisition in X,XXX India, employees our Concurrently, We have our and Costa South talent is our now than on GCC network, with in planned Rica Africa hiring. and ever. stronger

manage approach more developing leaders work teams continuously. processes we're shifts transfer, a taking the As GCCs, to tracking and knowledge training change to and improve loop feedback a our rigorous systematically management, to documenting global to increasingly

Neustar's the standardize leveraging our the in we're with cloud we've We're program, global also our on and state-of-the-art years to consolidate platform. customer-centric key to assets need by and solutions in built enablement deliberately a the centralize, technology automate work functions. common completing transformation balancing for modernizing opportunity acquired recent In technology markets to capabilities OneTru, our and

environment. is fraud managing, separate for platform and credit in and a analyzing insights. ingesting, delivering data OneTru the unified single platform and them marketing and prevention OneTru The data governing, and assets and analytic layered becoming risk, the concentrates integrates in

market OneTru data standardize costs From we accelerate save OneTru us innovation, driving to services. speed applications credit enable solutions. perspective, our quality, our will rationalize marketing and across and and global that will believe financial also fraud enrich time We expect better and a ultimately to

will efficiencies on our more to These allow time engineers innovation. focus

rapidly changing standardized Finally, ensure data and adapt usage. will the quickly enable model regulations us operating more to compliant to

and platform XXXX India respective onto the is XXXX products, in Our with our in and and consolidating data and U.S. laws regulations. accordance analytics focus in

made data launched prospect credit-based marketing capabilities integrated We the credit progress meaningful marketing an the our advanced first solution. and acquisition enrichment U.S., with consumer for combines in which We in quarter.

the to full also new We key OneTru Credit our platform. follow, Bureau, online capabilities short-term on lending solutions bureau moved our of with applications representing credit first onto FactorTrust

benefit U.S. flow cash by our operating And move over well as OneTru our $XX environments These core the expected of target credit U.S. we actions onto Finally, global as $XXX in XXXX. our process next quarters. we and confidence continue savings internal million an to several million delivering expense began the of XXXX. in to analytics reinforce free

in of global points markets. built growth attractive Now And position India, pandemic XXXX. X We've over the TransUnion one Indian this our in company most every market year XXXX. grown XX% except for decades, more roughly than to contributed X.X year has last in total business the XXXX, the a since leadership

have than people, long-term to aspirational an middle fifth under We the the market. adult enable economy is X/X and age consumer XXX segment These growing is growth with need U.S. by of class. more comprises the and growth XX. sophisticated of And in of the size Indian alone drive opportunity the expanding to this population. fastest economic demographics support expected a million the system credit drop world Xx a largest XXXX. India's in India population double tremendous the GDP to

and a focused founded transformation remains solutions have and economy, become The initiatives. highly its evolving high in for inclusion unique Indian with economy financial government modernizing a credit built promoting market-leading credit, we Civil has on The that XXXX marketing and demand synonymous India's is business. was household Credit TransUnion and fraud digital brand Bureau creates reports.

We insurance in roughly institutions, the institutions, banks, have each our than million companies. year. growing bureau, more serve XXX including X,XXX fintechs We records financial XX% and consumer largest nonbanking

solutions. We directly our consumer through also XXX consumers reach million

India stability in to [Audio and businesses, the small institutions, play such As closely finance. the bureau, with engaged of initiatives and Finance and we Gap] focused micro such as agriculture economy. Ministry areas Reserve credit government Bank We leading an and regulatory the and impactful of managing role Indian financial midsized support the the as credit on

growing India nearly India's XX% to businesses possible our in Our roughly X% GDP trust commerce. attractive make credit strategy in and exemplifies between dynamics themselves and in enterprise growing drive vision consumers global with XXXX. market growth

lending We takes expect with conservative ecosystem volumes the likely stance. a albeit as modestly more strong in growth again rates XXXX, lower

We underlying market. have consistently the outperformed

However, use our business. driven growth that playbook by across the same we

enables We and our focus wallet verticalized our relationships on sales First by trusted force and strong new selling, adviser to expanding role shift. share to core our as clients. is already deepening client empower suite our share to consumer our of penetrating us or engagement upon thematic in lenders. client build credit a solutions emphasizing drive share This to

product is innovation. Second

Increasingly, credit innovation fraud driving to marketplace our consumer to other areas successfully we're from bring open trended banking. market end identity continue such We and as and inclusion, financial like as innovation education in data, markets such tools. and in India, API

capabilities and products the to as marketing to Indian opportunities exploring Neustar solutions such also We're trusted call market. bring

adjacencies of commercial, emerging are version and areas Key India's is fintech or focus markets. Third direct-to-consumer. market

annual Commercial We help U.S. credit to trade this in is in lenders data. well unique Indian as growth to rate. India a NDS. and we the bureau highlights Slide chart We playbook do enabled of the compound the not a businesses bank how tax XX% the X operate creditworthiness credit And assess market-leading commercial on XXXX as From statement, performance. growth on at based XXXX, grew

the and now scratching the only our that right believe, credit market our roughly of can XX% direct-to-consumer the well outside revenue. quality with a Consumer the have recognition, consumer consumer grew faster and We're of to XX% combined outside Indian CAGR and Commercial relationships to CAGR. in given as over credit product fintech XX% of we our plus at brand scale our contribute revenue. breadth We XX% time, and win as of innovation. surface of solutions the credit grew opportunities represent

on priorities. next innovation has the identified which our of of key in economic credit of focuses of sectors, Government growth enabling all generation as penetration India Much underserved

XX solution differentiation of to and small million enables alternative sharper medium India's businesses. which rank to credit India's risk uses Fit midsized Our contribute and assessment XX% data serve for The GDP. and of lenders businesses, better small

agricultural borrowers XX and The Indian Farming and historically and population provides serve manual and And to XX% credit, agricultural digitize least India. microfinance lending the score of livelihood comprehensive report loans encumbersome microfinance in relevant the farm XX% the data the report account lending to satellite CIBIL agricultural of consolidates million other analytics for data process. the begin bank's at is the CIBIL credit portfolios. of and to

TransUnion. loans and focus lending collateral-free remote Reserve $XXX the to Bank by for to that we Investor has on targeted our India this and target. multi-decade the of population. growth well India mandates Day, areas. specific averaged XXXX, income we for India families and refers rural roughly is revenue of Close on to of The $XXX million loans out, are At our Microfinance segment story exceed pace lower typically for a from

conservatively the term. medium We business growth deliver this over plus can continue XX% to believe

several next into build our $X.X billion years. next to is over And goal the India

financial quarter full details and Todd results first XXXX the in will on further quarter year provide second outlook. our Todd? Now

Todd Cello

let welcome Thanks, me my add to everyone. Chris, and

within reporting. this quarter, begin, are our I updated to wanted our I Starting business segment. Before reporting Consumer highlight segment market Interactive our U.S. we

business our have presidents. our we between U.S. run U.S. reporting how and segment. International actions to international we our services, U.S. the Additionally, . These emerging verticals shifted markets financial certain under better revenue align and

our to and recast an provided Relations results posted details for updated quarterly the website. filed have have on XXXX in and X-K XXXX Investor We Tuesday the reporting

appendix Additionally, year of provided U.S. we the in for mix emerging services, vertical have and disclosure Consumer for our Interactive verticals revenue financial incremental fiscal today's presentation, U.S. businesses XXXX.

all in financial we the our Chris key exceeded first mentioned, As guidance quarter, metrics. on

First quarter less a There than X% benefit a consolidated revenue basis, from impact an increased X% and organic and on currency. was constant foreign no currency acquisitions basis. X% from reported on

business XX% constant on a organic mortgage basis, X% XXXX currency quarter first constant Adjusted Our of on reported both excluding and basis. grew increased and an XXXX. currency from the EBITDA

adjusted Our compared flow-through up ago XX.X%, to points growth. year expectations to XX ahead of was margin and on quarter EBITDA revenue basis due our the

per share rate the for XX%. adjusted quarter increase adjusted an was tax diluted $X.XX, The earnings of XX.X%. quarter First was

next onetime of Finally, phase million technology operating $XX in we model million the quarter, charges and the for of $XX related our $XX optimization transformation first transformation. for program, to million took

We of $XX million operating XXXX, onetime incur in expense in-year to roughly expenses of million expect continue to driving $XXX savings.

to incurred million million $XX remaining the expect we to part As in of $XXX XXXX. $XXX our to million be $XX program, expenses million of onetime

X% Looking adjusted U.S. Interactive, first quarter. now markets for year for down ago financial XX which XX.X%. markets basis Consumer at up points performance the compared to includes to the EBITDA was Adjusted margin X% EBITDA up segment revenue, quarter. was and U.S. was

broadly trends levels the the revenue seen Services with consistent in quarter. grew fourth XX% Financial with

revenue X% and fintechs lending Financial others uncertainty. in Excluding muted was as growth, the rates and up market revenue Consumer cautious quarter. remained mortgage, given to returned Activity up remain X%. Services,

lenders customer to across wallet the share now softness and some contributed New offset fintech, short-term of and wins later, and growth. buy pay

Our and business credit was flat. card banking

and remains historical healthy basis, rising is tempered batch issuance While delinquencies. as activity manage a online lenders on

such suite, fraud to customers analytical and position Risk future environment our the enabling Trusted Solutions as with TrueValidate are current for Solutions, relevant We Call products offerings. themselves growth TrueVision navigate and our highly our TrueIQ's

and business growth driven Our grew X% lenders. auto the continued new in from wins auto business auto despite captive headwinds market, by

subprime prices. to interest has as high and as more volume new prime vehicle dealers they face credit interest continue from Consumers, some provided to well and declining, affordability seek Improved higher car particularly and rates still increased inventory near and solutions challenges from used OEMs but customers. acquire noncredit as

seeing marketing Call Trusted Neustar are We the momentum Solutions auto selling space. and strong into

Outperformance expectations, For third-party higher mortgage, of XX% especially X%. in revenue higher-than-expected were products. scores also and related grew credit on volume to than our declines price against slightly realization Volumes prequalification. inquiry

Relative and to much been to has seen the the incremental date, prequalification healthy, have activity prequalification pressure GSE shopping of volume, from program. we extension not

We guidance a pleased around these to continue an view the the for we interest in volumes our growth origination but the uncertainty with programs, are uptake strong year. mortgage rates, newer take of on given mortgage quarter, conservative prequalification

TransUnion revenue. On XX-month mortgage a represented trailing total X% of basis, about

the media, and retail and Telecommunications while screening as emerging tenant turn to e-commerce modestly, expected. employment and in way quarter. grew Let led tech, me collections verticals, for the Insurance, X% growth. which sector grew public in now declined our

detail Select starting slide underwriters as each of are data expected as our delivered as the the as to marketing credit-based hygiene for of Insurance, resume the trends audience supports with Our identity-based improved to progresses. market such year. targeted volume appendix year start expected relative backdrop these products, demand provides marketing and Healthier helpful verticals. activity as progressing we broader rate with of as on sizing growth adequacy solutions. recovery suite increased marketing improves, In well

remains activity Consumer shopping strong.

with significant innovative and insurance penetration TrueVision and like and products well of commercial new history, We cross-selling driving life solutions successful products core of continue as Neustar wins deliver as our across to Sontiq the business market.

sector by in along Public volumes in wins Solutions, digits. Call sector. Public all and collections the Media fraud marketing growth and stabilizing audience market powered and strong and again Media, double grew benefited backdrop. from collections a sector identity with Trusted public were

legacy in it comped trajectory Landline screening employment includes work many project-based as Tech, like which retail up year. and with caller declined was ID. our of in up Tenant recalibration the communication was slightly as line growth of through the also our we as expectation recent our Telco vertical, the modestly and for e-commerce the and against prior expected solutions revenue solutions.

performance in lap half actions. better second of we expect year We the these impact the the of as

Turning Interactive. to Consumer Revenue decreased X%.

wins uneven, but breach are pace of grew wins. Reach can revenues Our largely strength benefiting offerings. accelerating indirect continued channel our from Sontiq we be of on the

we direct through work impact marketing declined the business our Our expected recalibrated as of as strategy.

broadening good this We strategy are in making progress go-to-market on our value proposition and business.

growth currency. For comparisons revenue my International, constant about comments will be all in

segment, For X growing by digits. markets X basis the total XX.X%, points. margin reported up grew EBITDA was Adjusted double XX%, with XXX revenue of our

us as up the year subdued but setting insurance, in credit, market growth each was specifics direct-to-consumer XX%. the and consumer we revenue see some the In stabilized, grew We The into dig for let's U.K. for Now trends. growth we commercial progresses. and strong credit, In remains fintech supported region. across delivered has solid marketing and market to banking by fraud, continue flat. U.K., India, improvement

trended consumer breach growing telco momentum strong drive business new TrueVision our wins. Consumer offerings from recent gains We XX% in macro Indirect environment. financial affordability-oriented a of delivered Canadian strong muted solutions another and continue to benefited and very despite quarter wins. in share insurance, and performance, in services, growth data,

than volumes. healthier better bit was a online Canada anticipated in Growth also due to

wins, quarters Looking to to ahead, we represents in sizable single new digits, which subsequent expect lap high return Canada. performance as market-leading business we growth still in

market half was softer after delivered other Latin Brazil XXXX. a In X%. was few after Latin second countries, In with America, we broad-based growth Colombia America stabilizing up a flat conditions revenue and improvement we in Asia we as further another Philippines Pacific, expect Kong. and growth grew In very driven quarters progresses. quarter XX%, year the by in of Hong the strong declines, and solid

led XX% verticals. by Africa and increased retail insurance Finally, our

a X.Xx. the the leverage $X.X quarter to ended finished of balance Turning quarter cash. with million sheet. the of $XXX roughly We with of and ratio We billion debt

over debt first of to XXXX course presentation. our of the debt expect some not can free cash prepayments appendix our quarter, the the excess You We flow. make did find our but make prepayments with in in profile

the Our executing remains against focus year initiatives. transformation this on

million onetime transformation for to ratio on most out be adjusted We $XXX the be leverage XXXX. expect paid to our to Xx of end cash and our expectation in our of Based million expect expense of XXXX. low generation, $XXX in the EBITDA by range we

deleveraging We cash view Xx continue and as to for the an work target ratio toward prepayment incremental ending our medium use not of debt viewed our of term. an point Xx. We under over attractive do leverage as

remains the Turning unchanged. after to year, approach strong to start our guidance. Even a

throughout continue and growth no to from lending XXXX economic benefit We volumes interest cuts. assume rate with steady muted

to us XXXX. of quarter outlook for our brings That second the

have EBITDA. exchange impact We expect and adjusted revenue foreign an to insignificant on

expect and X% currency to billion $X.XXX basis. or billion We on reported between X% be to and up $X.XXX revenue constant as an organic

Our from on X% revenue our points constant of guidance the includes to mortgage. organic approximately business Meaning expect X% that an of basis. remainder currency to tailwind grow we X

revenue We slightly we be the growth the quarter. second first quarter expect XX% in mortgage lower to in than experienced the

We be million, expect adjusted million $XXX EBITDA to to X% and XX%. up $XXX between

basis of expect margin We to to up or adjusted XX EBITDA points. XXX XX.X% XX.X%

We between $X.XX XX% earnings XX%. $X.XX, up to also our share expect per diluted and to be adjusted

full to Turning the year.

adjusted EBITDA. impact We expect exchange revenue from insignificant foreign on and

expect come an X% up X.XXX on constant $X.XXX revenue We organic X.X% to and reported basis. between billion to in as or and billion currency

on is by third-party from mortgage, realization inquiry X%. down credit XXXX, entirely driven assumption unchanged scores reports. at better-than-anticipated specifically is and guidance increased price mortgage Our our

of better slightly half now flat. increase the our up expect still and for prior. down about XX% half revenue to inquiries we year, but from in now However, second the XX%, to be be mortgage the volumes XX% expect first to We

to excluding organic about X% up currency constant mortgage, be growth, expect our to X.X%. We

pleased conservative outperformance our market are first quarter, in We uncertainty. deliberately continue the but given of year, a approach to take with the continued nonmortgage rest the to

business digit or segments, or low we We excluding mid-single up to expect now double mortgage. single-digit our low be For Services mortgage. Financial anticipate U.S. to markets digit growth, single low grow digit, excluding up

to We grow digit single Consumer continue that We low driven to terms currency positive double to expect decline constant expect led up by be and Interactive anticipate International India. single we will in emerging digit. low digit, trends and now low broad-based by verticals

company total the to back Turning outlook.

between $X.XXX result X% expect be being XXX XX% points. EBITDA to billion, XX EBITDA per We to earnings that to to XX%. be XX%. adjusted or basis margin in and XX.X% adjusted to And would billion $X.XX, to up share up diluted $X.XX to $X.XXX Anticipate XX.X% adjusted up

subsequent tax the to year, amortization prior XX.X%. step-up expect portion SOFR. expect about about from control adjusted to interest will acquisitions and $XXX $X change $XXX million. due be full amortization in XXXX approximately is to rate and million, be million million up higher for and to our We be net we Anticipate our the be expense Depreciation approximately $XXX from guidance expected excluding

about capital expect revenue. expenditures of X% to be We

to to in And charges to for in our final transformation the XXXX program. onetime as incur back continue some previously comments. noted, million time Chris related $XXX we now expect I'll to turn

Christopher Cartwright

International U.S. from Thank financial lending you, emerging up driven quarter stable first to morning, key like call expectations growth and exceeded mortgage volumes services. the this outperformance, wrap media the we Todd. in And and verticals momentum, insurance good by

our transformation in environment. program, behind our better reinforcing remain the confident delivering in And and the price strong growth we're quarter current results against against in XXXX realization. milestones We commitment. confidence strong market first focused results achieved raising and low delivering guidance our We mortgage our key financial

Greg. turn it to Let me back

Greg Bardi

we That begin Q&A. Operator, concludes can Instructions] our the prepared remarks. [Operator

Operator

Andrew first Steinerman Today's JPMorgan. with from Instructions] [Operator question comes

Andrew Steinerman

track oil kind of you there? that hear Chris, I us on could current remains in aspirations Neustar risk hoping details and was encouraged and to contributed. more communications, I just give some was trend marketing that the Neustar and on

Christopher Cartwright

Solutions lines. Yes, guide, that and a our very by across very the with each highest and and year had suite is product growth we first solid Call Trusted still driven Directionally, positive sure, our posting of new posted sales Andrew. that's X of continue Yes, consistent growth quarter, rates, be Neustar of principal communication to strong. the full

that's So encouraging. .

is some media that was also and rate clients that the last We vertical strong year good in This that we in had encouraging. media about we our on had -- growth a this audience feel of in of marketing. year. reflects vertical called sales of their the the marketing, consolidated We business particular out couple particularly big quarter which the in platforms,

And the Neustar, risk/frog to will we the year first those and in standout a it second our But collections first solutions. last particularly portion lap this quarter. had quarter, was And year quarter, some sales we've right? from the in of around then in the start communication in acceleration

feel was guide solid from So it and the in year. a perspective, revenue solid, quite for we the

in I as to think keep of really up raised on to We $XX course, note we're good striving achieving We're outperform year And will still also it's you very that and updated of to progress. integration Neustar feel important the progresses. number that. the terms confident savings. about million. We

OneTru, benefit Beyond technology we advantage there's talked their OneTru central platform, platform marketing We've we've work fraud enterprise meet over these taking But of a to of of years, as in and course, about ton addition are began, management past broader our our next-generation and within we've the as done to OneTru to and integrate extended solutions. of TransUnion ton Neustar couple of that, data needs. it currently. that a

sideways second the type innovation and of both hardcore year. when that from of we move organizations. a the this once engineering in third And expect period. to half be product everything a and you do truly work and this quarter we marketing enter a And us solution, broader more you fraud behind as the best in pulled get for integration, you integrated you But perspective together, of and

come, later view, and going difficult see of the So a terms in good emerge best yet to Neustar we're while in that results in this in you're my posting our to product year. environment, has offering

Operator

Alwy Faiza with Deutsche is from Bank. question next The

Faiza Alwy

raise. pricing what mortgage? better driving was will mortgage gives what in had I the guess anticipated level wanted sort the of the and and mentioned guidance what I pre since than behavior. But drove you of about through I you what shopping volumes confidence course the continue outperformance you that year? call of ask the this I know guess to

Christopher Cartwright

a the understanding Yes. the essential to quarter full both question It's And thanks and year for very the question, guide. Faiza.

As the forecasting interest assessment to it program of we there were volume budgeting impact and have and -- new 'XX, because also lot mortgage parts moving which the a given which prequalifications. are early uncertainties, were likely was in forecast, an but rates on complicated market by the GSEs, was

conservative overall on our we dimensions with of all posture, mortgage conservative Consistent were guidance of these guide.

saw but predict, thing quarter is hugely to expectations, better we know. that just and volume absolute what a a as volumes were Now difficult in mortgage than better little all we is the not first

out realization those proportion But of the the credit the of realize prequalifications well the assumptions conservative, price all get on be right? as that as prequalifications portion, about assumptions we price those we the we made turned -- and would to third-party score would those

mortgage So in qualification, and have it's we scores don't pull addition that cost X incur our and enabling X that that and shopping. is think, to additional of some this now credit to reports consumer X really reports is at hypothesis lenders that,

again coming that qualification may place. beyond be as because there So volumes our well in we the from put forecast were some conservative benefit that

we a remainder there of because or have a to booked We of conservative changes. made simply year the we lot been in combination and There's in what a of of it's the the of bit more then quarter actually expectations outperformance first led fluid volume So market. to achieved for all maintained things the mortgage. lot a and those uncertainty, material

of can you the some think I probably get here. Todd, more Now specifics into

helpful. would that think be I

Todd Cello

Absolutely.

thanks prequalification just that to So one includes about question. to the volumes. that's was is just everyone TransUnion for our And start Chris with, speaking volumes overall that want that I in make the Faiza, certain point to clear

have better, number, that Chris So essence, the activity about when we you on had keep saw little that our in that's, in when including better drivers shopping a we that was talking of you So what one the being guided. means to bit see mind keep volume from volumes the that's expectations to what that

if we the morning, there, you'll back what compared from at XX%. this starting that out with guidance revenue So revenue, put by in you to notice we've our February look increased

So year X%. the we are XX% full we're now XX%. to of back volumes instead same to for expecting remain down the the grow But expecting volumes at mortgage to

Now the in be are had XX% half, better. we a assuming decline. we the now And expecting first Back are in bit a we volumes decline. to XX% February, little a assumed

X% in in a Prequalification of pickup the essence, half. a get you is So first part that.

our So keep the February, mind. in And grow half, that that in But if just volumes. that to comparable. back go second you would XX% anticipating we then in was were we purely

If you remember, the second half of XXXX was particularly weak.

our essence, to in second be So done half flat. changed we've is what assumption we've

XX%. is means of has a decline half second that So now what

So the higher. acknowledging what are a creeping with fully reason out perspective the XX-year experiencing in mortgage the XX-year is yield the to call rates are volume important we headwinds that's -- market we that treasury and up from that

in We our are acknowledging forecast. that

this that here just on realization better takeaway scores as well third-party is the as reports. price is So

Operator

comes question Jeff with next Mueller from The Baird.

Jeffrey Meuler

looks So QX guidance good.

if of but parts created of you addressed in more headwinds kind kind this rates business. some various can early incremental concern maybe address just fall, summer, your holistically that You last of mortgage, moved just when higher it

sort last customer So increase? a like just recently, saw changes any headwinds can where maybe back in and with rate the the of you talk parts of you're . just or some higher today, rates about hearing you on of again tone that other behavior business fall including moving recently more

Todd Cello

you question. for Thank the

everyone for that, rates. think not important what's So to guide a in initial I interest February our did response start off lower from in benefit to remember to that anticipate back

stable. get in business, would as financial in of to went remain appear U.S. year to be very thing, to the say ahead ourselves that we proves I services just a want that where headed. our . We very right, good So Trends rates didn't and core into be as essence, conservative. far interest they

the of subdued. earnings bank some from heard the they words You've used call,

captured more no there. I significant of think in of upside that contemplated the these that have trends outlook. There's we a we're seeing. It's continuation our appropriately trends

TransUnion diversified in as portfolio. and reminder, has And reminders. in both important Some a XXXX, years. a obviously, XXXX grew very X% we

what that's that's aspire that's for but business, not shows plan at we the the clearly, not intentional. balance it all and for, Now what we of and

interest with may further. and maybe go or also, currently rates that -- won't up we believe they peaked that So have much perhaps

years were Well, interest rates for going So drives much does it what our they higher increasing go. to didn't how our in that that exist know certainty XXXX, that is does into mean? customers were when XXXX previous what didn't the X it customers in

there's some there. definitely So certainty

Also, that to In International single-digit to high out growth business. February that guidance, we momentum. the it's call in -- called February just from continues for have our business our important strong the level, International increased digits for this double even based International. We've though in maintaining we're that seeing we're At in low just on strong that, increased total. momentum company we've to

dependent to the at You the rate those that movements. it's beginning less out what about back businesses And we back flip portfolio interest I of there gets of the diversified to verticals, power are to the the on call have. U.S. important markets, that many this said emerging

no a portfolio point is but of matter seeing we're dramatic, our I things to say, these one make customers TransUnion the on across presents Nothing has would I starting to there. better. last improving solutions what robust environment them. businesses, of all the get And And then are macro help would this trends cutting

Christopher Cartwright

quarter first if of The The look, a with experienced year. of challenge we is, right? quarter, of Services the the consistent reinforce the couple down and that points. stress material bank particularly volumes can And Financial I are third on in U.S. in the quarter last September fourth to as positives Jeff, in rates origination led year, last a increased a step combination real in of you know, of volumes, Yes.

we 'XX. Well, to going improve be declines of not that to appears as therefore, any And we're in is because our did flattening. growth half second the material absorbing

Operator

Manav with from is Patnaik question next The Barclays.

Manav Patnaik

X big was categories that. on or wondering guess, -- disclosure of there. some Thank verticals, you emerging market follow up emerging on for just I your in in those I appendix. In the the to just the if

just we you 'XX? and grew If what in us think should you in with could 'XX how factored much help about for how they

Christopher Cartwright

Yes. insurance, to per higher And in we in look, faster may Starting some recall with to that in we've grow segment 'XX the we're experienced single-digit verticals I'm 'XX, we to 'XX return the color growth Look, enjoyed insurance me call I and earlier let Todd 'XX. growth on the but not high consistently. said emerging from than overall, growth in that I rates I 'XX, expected more specific think quick an -- expecting emerging provide focused. don't but

it's seen terms So returning We've in some marketing healing a insurers former to improvement of process levels. in marketing.

also we've the some particularly really wins, course, Of driver in had risk. nice

is So insurance solid.

of media, we that growth solid year. mentioned, we a wins because of last had achieved that's we and customer in As some realization the

there, And model of our area, technology us lapping the a blend. Call sector, is increased of slightly, finally, rise, Solutions growth products communications considerably is growth grow that project some Public of the of e-commerce, combination revenue. compensation Trusted collections. Trusted these all delinquencies some getting Solutions more are collections products heritage low as declining always like driver some for And helping fraud We're and mid-single-digit are to estate, getting major it's flat there. is but in either suite. but course, real of a Manav, business a It's type across nice segments. the in enhanced right, our In we're we're And Call growth. growth the part by

on our difficult through working way are still comps tenant then screening. And some employment we and

the the you certain of take data because second We're the those on the that requirements last lap take out the of that to of consent going certain we'll CFPB industry. But we As with CFPB not emerging. year. the drag by is right enhanced comp products, that to did and had negative that half now, meet year, on it's the imposed the we've signed know, a for order

Manav. hopefully, So helps that

Operator

The next Kelsey question Autonomous. from comes Zhu with

Kelsey Zhu

we and growth for you're targeting XXXX? how should if in Argus right I Sontiq kind and about was expect talk the can a also where we profiles the bit look of like margin and now XXXX wondering for little

Christopher Cartwright

Yes.

on Well, U.S. vertical So we've within And card next-generation I their on been has and let's into and hygiene credit integrated platform, see, Sontiq, and enhancement. also the Argus think, time is but spent of quick of banking data markets. completely lot the lot a news then Argus, Argus. a

some pipeline. this credit new our to and more of be foundation we've built consumers we've continue added how very on getting and some We're to deeper, card a nice are So sales that I information. pleased overall using conversions, authoritative view their actually

driver in Sontiq has is growing breach. Sontiq well. very been key The

reported breach it by growth we entirely almost the some in really strong consumer, know, fueled quarter, in but you was fourth revenues. As

expect kind this, to we've going we're our that growth. that good now I continue get of to to ability So matured sell

for Sontiq, quarter quarter lumpy But again, an product we a we solid more so this the Sontiq but growth as right? bit of we first extrapolation is in experienced in from and forecasted that forecasted not what fourth type from the year, episodic year. And very the a line,

Operator

is with from Kaplan Stanley. Morgan question next The Toni

Toni Kaplan

to was about hoping ask I technology.

on but metrics looking just of and are should related? today, expense and anything be You . sort and that at AI with you talked any transformation, about update the tech efficiencies any cloud, regard we where to

Christopher Cartwright

Yes.

as public of have, within data of that the functionality is survey we let have all OneTru. or our or OneTru. management marketing landscape they you've on data of credit about on that converging mitigation platform, me talked set common really fraud a or whether which because the efforts technology different next-generation or boxes the check And foundational into multiple assets that So be think converged that records

can credit that. have, you And and provided is marketing, cetera, certainly right? analytics that identity of different part et better suites all data feeding be of some ingestion, it that I that Now public fraud, understand records, into basic schematics, resolution, think product we've so we the

machine quality of But assurance, learning speed in learning, we're ingestion machine service underpinning a the OneTru, of or intelligence the enhanced a resolution using as data, analytics our certainly, artificial to launching suite. even identity the variants governance, the

give we've native comprehensive leverage cloud designed all going because type of our you will architected, to agnostic also our technology from of fabric a one-to-many think entirely it platform, it's that of is go of within to the a to be or course, the stored that's And us now will. OneTru So umbrella as the repository, an cloud applications central effort been common all not a it's steering cloud cloud cloud. in And the data if toward.

previously. The in and can majority explained, we've the requirements of we've effectively a the certain performance will and So internal economics that because clouds, talked we there's our about more make as them right? private handle sense, division are but there, loads that there cost

more So flavor. hopefully, some you that gives

Operator

The Balsky next from with comes of question Bank Heather America.

Heather Balsky

with other kind I wanted come you on I'm the know about insurance, business it's the to about call to regards and ask the of in But aspects curious was state, I terms the seems in with of up already on terms marketing. you for of the you've pretty shopping. what's seeing going that data been like guys out, quarter. what leaving It good insurers of put it

Just broader how and think for the you environment a of year? the about that for rest insurance

Christopher Cartwright

for rate meant in of at by tough have of the a progress individual often or increases very to prices from insurance until policy that Yes. severity economics. reduction regions, absorbed led could marketing just has challenging and There's that's to on kind to the from higher volumes. insurers disasters. and couple states right back of turn And variety years that's There's as number been what different events consumers. and getting of probably more for There's profitable is in And priced a dynamics a lot insurance flooding P&C reduced we the environment. look, carriers order space. the underwriting natural materially And frequency that past higher-risk costs in worth . And skyrocketed, of underwritten also whether is we're be this refreshing through or get increase kind of a of been the replacement wildfires seeing know, basic an of that it's in all been insurers. pulling

are so if And in marketing. will. an healed, you is we space the still, seeing fully But increase not

And to but on I expect take think more 'XX we that's balance probably time, was. stronger do insurance in than year, another 'XX going to be

You all some mentioned right, shopping Upon renewal, you're experience probably personal and and we have this get activity, that something is consumers shock. also sticker with.

the reasons about. been increases model. some talked and helps that for all And more shopping have material that business I lead shopping price again, does the And our to

motor The other risk thing to of growth state is bit of continued for the solutions an and increasing environment our that's insurers looking helping of reports. combat improved ways are vehicle marketing driver as prices a

Operator

Deutsche Today's last question Sabadra Ashish from comes with Bank.

Ashish Sabadra

also international market, talk and I and very India moderate. encouraging. thanks baked in for but just if the strong to providing just growth, about kind of that's in conservatism The was first implies wondering puts very drill wanted I the those does can on strong the general, any guidance momentum into the details that's quarter. guidance. around down takes you

Christopher Cartwright

that across not but extrapolate our say across those Well, pleased were tried reflect enterprise. to in quarter, from really first year. Yes. careful the I total take the would does approach we similar to forecast international full a results prudent we've with we're the Obviously,

a many, customers for to penetrated well, customer is has Canada, a South a to and to entirety won lot able call again, has the growth. and in across now, of with the standout We're has real outside be many a addition of out a executed solutions Africa of privilege India participate is further broadly. been and in has range TransUnion India posting Africa And doing years team huge base great in. that for

Asia the in bullish has also exciting And we Philippines. had very to results things seeing We're Brazil. developing is Pacific a in the doing rebound. LatAm there. great We're hope our for well, franchise and expect potential better and produce about

years. And a interest Inflation been hard time there in been toward the in That these lot. money economy lenders of a which rates particularly tough and were we the have overweighted had slog. through very short-term has and look, couple high. been has more U.K. have probably U.K., And a past fintech,

kind have. horn it's if gambling intended and the anybody around robust know of into gaming market been if the out that's is leave apologies. well going mainstream banking which I Hopefully, quite to as of in I I developed. start growth well went shine is diversifications enjoying the U.K., flattening here, I of didn't as core some that the we've out, Now through kind to the as in

year. Look, international is good this continue expect we rolling well to really post . to and results

Greg Bardi

That Thanks. day. for of a Thank brings call. of you today, today's and have the time Great. to end the us great rest your

Operator

now concluded. your participation. Thank conference The you for has

may You lines. now disconnect your

TransUnion (TRU) 25 Apr 242024 Q1 Earnings call transcript