TRU - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the TransUnion Second Quarter 2024 Earnings Conference Call.

[Operator Instructions]

Please note, this event is being recorded. I would now like to turn the conference over to Greg Bardi, VP of Investor Relations. Please go ahead.

Greg Bardi

you today. thank and morning, for attending Good

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

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

a expenses information and include slides will items, available Our website. non-GAAP earnings reconciliation most about schedules, GAAP Today's their replay contain certain revenue, more the of directly to operating financial with measures. as be release well call various detailed and measures other and our which as accompanying on these disclosures be the will measures comparable and non-GAAP financial along corresponding recorded,

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

let that, over turn me Chris. With to it

Christopher Cartwright

quarter product morning: with Todd provide add OneTru our let detail I'll XXXX me our full platforms; and for and this quarter discuss second, quarter share call along welcome second XXXX our will and I'll we're and and year my third Greg, you, Thank finally, guidance. modernizing our financial First, results; highlights second technology results, agenda the how the for our

TransUnion quarter, adjusted guidance second EBITDA and the revenue, adjusted diluted EPS. in across Now exceeded

detail large recent we're strength which will our Todd XXXX remediation and wins, the in the raising later. full quarter year breach guidance, Given

constant posture conservative are said, to strong guidance. earnings We our due X% and geopolitical growth. and currency that organic our expect year a macroeconomic maintaining With to uncertainties. X% grew guidance basis, for we ongoing an above Revenue revenue both X% on

currency constant our organic of also exceeded Our X% excluding expectations. growth, mortgage

lowering slightly up the we trends. income well slowed personal U.S., in remain to but that Inflation expectations and to tick stabilize finances the are cards at quarter the consumers volumes the led lending and and historical but broadly and lower rates Consumer below activity. first growth, to with delinquencies loans. the continued experienced year. interest but rose of have start quarter Consumer for healthy credit in year, some a were U.S. in the start In begun for auto and unemployment market after muted, modest pressures later low real wage waning to spending stable on due have loans Fed the consistent mortgages the for

solutions consumer offering. point the XX% continues Our U.S. we're by tech, Consumer closer and for Neustar X%. Within mortgage. grew by in was strong sustainable Trusted more and Emerging XX%, to Interactive our believe sector, and verticals media. Financial public XX% verticals. solid an to we remains market contribution to with also growth Call strength X% quarter. the U.S. up in progress protection our growth, on another growing across year segment quarters insurance, growth across Consumer and Services plus and mid-single-digit the positive wins expected, stabilizing direct delivered X delivered growth first mid-single-digit led supported return markets, as and grew in XXXX. e-commerce Neustar way, declined of driven than lead in track to retail X% by identity inflection breach Interactive

Latin intend America, with quarter, during $XX of make international XXth basis, year. million consecutive and digits. growth. led of Africa Asia quarter debt prepaid grew and the the XX% India currency a constant the Canada double-digit half Pacific, all in to segment we by second grew prepayments Our And further the growth, XX% double on finally, while in

debt and a strong extend reduce second to completed expense. also technology We in made maturity interest profile our our our modernization quarter. refinancing progress We the with

solutions X technology foundation, aligning yet TransUnion can drive how we accelerate on regions around revenue. we products consolidating that into believe across Slide integrated our next-generation independent illustrates innovation, and cost a to leverage we're reduce By technology suites and solutions. global new platforms powerful our our a

OneDev technology visual to a to you bottom increased developer our the Now the cost for operating in reduce infrastructure up. system. standardizes services orient this and foundation and is engineering infrastructure new from on tools name our productivity. OneDev internal single

modernization the leveraging OneTru integrated our delivery. clear lending single into solutions. as OneTru creates the Factor brands better families. Trust are we've OneTru, it's under layer TruValidate is across solutions our enterprise technology examples the OneDev, value deliver identity end-to-end prevention broad of further and share [ performance and our such dramatically which and core revenue fact, each centralizes off brand common management, I'll is savings. product being and solutions product. benefits marketing integrated resolution, primary some ] technology driver alternative key enablement services and of global and of our within Built suites of product delivered now analytics TruValidate data of TruAudience fraud already These innovation growth, explain suite in platform, suites driver our In a how

creates our developer technology common preventing It supplier Rise create reducing also foundation, saving TransUnion deployment. a way resources applications compliance, lock-in. utilities, standardizes Now of engineering provisioning OneDev success capacity technology security, the plane upon to for managing global costs single cloud-agnostic, innovation. and operating is freeing One creating a software Project and a complexity, across that our builds for OneDev

our In third-party addition costs. software technology OneDev to productivity, rationalize other will improving us help and legacy developer

data is and The for and standardizes workflow central We and our for intelligence more certain it product hub. applications within private our functionality which actionable infrastructure are management, on transforming the OneDev our needed deploying and our to process suites. to OneTru, customization identity raw into operate the innovative where own provides also will analytic products. platform create economics This continue product the allows cloud specialists focus the of data attractive. data foundation Analytics

let our OneTru management credit embed We So our and controls data assets OneTru detail standardizes: fraud that environment. data the noncredit integrates permission marketing in compliance into and me credit unified data. key and risk, to separate processes prevention a strong

data Our reliably identities use proprietary resolve data lines scientists view rapid public identity customers cross-functional to of data our of link online have cases. consumer for of product a graphs to insights. full in access complement consistent and across development helping and our together identity, off-line for OneTru easy

services clients servicing alike. in and identity in feedback internal loop fraud teams a and that risk, across By by marketing services, tools our OneTru participate analytics reinforces capabilities. and and models customers a our standardizes interface consolidates our single for we broad use

intelligence consistent As a customers and delivery as for artificial or learning and new upgrades configurable and its seamless we capabilities such cross-selling. And machine these finally, product delivery service, layer emerge, can OneTru's deploy for to intelligence capabilities of and data technology easier leverages as scale. rapidly our

analytics pace acquisition We're marketing identity continue scale to to we our modernization over innovation rapid products as XX a graph, powers reinforce Now fraud internal environment. and new launching heritage as enterprise products marketing next also suite. We number months and as and refine our I new enhancements a TruAudience well our our already number prevention, OneTru fraud that innovation this TruValidate of labs Neustar and further platform. to plan this including advanced OneTru and want on of the quarter, this of

capabilities world-class market Now upon TransUnion products and the using will taking platform portfolio into broader integrated be the then of Tru brands. suites functional OneTru the built the

it multitude into brand in global clarify breadth families. several Over we've BXB years, they brands These families few range need. the of find offerings. of our what our last of demonstrate our easier for broad global to and organized capabilities customers They product the products make our

We on leverage and terms fraud and credit prevention our the cases of as consumer our and in competency risk fraud product targets. in delivering our the well cost success driving marketing platform and further across use measure continue technology as growth to we'll savings in and strategy identity marketing beyond better to expand core credit, of

tracking to product pace in we market the of the our In time are improving toward our interim, quality, innovation. progress

briefly that FactorTrust. we're and benefits TruValidate seeing the let spotlight with already So me

signals in all consolidating suite, in Our current integrated plus combines a our aggregate and We powered a see XX% range fraud onto TruValidate products. been notable. fraud from of analytics false offerings, predictive to our we compare OneTru increase with Neustar deep a XX% decrease apply TransUnion OneTru The we by where signals single When positives. from analytics of insights. fraud OneTru, along in-market detection, and uplift in has with platform advanced data our identity to extract our we signal along comprehensive the

providing to better This friction for a right while enables experience enhancement consumers. customers themselves, protect

we're for nearing first select positive. of release customers. The Now extremely the initial results our are testing beta end our with

We to first available later this quarter. general expect be the release

performs thousands integrated Our to for share which a call know aspire last opportunity $XXX many first point use solutions with revenues much market. we substantial be year better today. fraud the fraud against addressable mitigation, customers market our than in around customer's million today serves so and we roughly of world suite, suite customers patchwork to a gain see product the represents and We of multibillion-dollar the

space. already migrate over lending the modernizing bureau online capabilities within how FactorTrust, of can XXXX. on-demand the credit analytics. course FactorTrust, substantial Trust also across steps serves The positioning batch, analyses. our OneTru speed short-term believe of Indian OneTru and improving our efficacy core We're and TruVision the OneTru bureaus in modernization is We're of credit lending to processing starting in as the to of XX retrospective our in early Factor from suite hours enhance concept strengthen foundational of speed process of proof bureau in we seeing taking our batch competitive will short-term our the to hour, and faster allowing U.S. to X improvement OneTru which We're XXXX.

across position with and OneTru's analytics the to and batch to deployment, capabilities. deliver look by competitive upgrades delivery how next to for driving Additionally, data see several model over upgrade for continuing more cycle, lines on quarters. innovation near-term modern in followed We upgrades, the frequent platform strengthening product our update OneTru forward wins ongoing model our allows and is future. you seamlessly improved a attributes enhanced layer more opportunity We self-service us

provide financial outlook. And to now to quarter Todd year full I'll results it further our updated details and on our hand Todd? XXXX second

Todd Cello

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

our in second we exceeded on mentioned, half outperformance. roughly revenue $XX of Chris metrics. of As million all the key financial quarter, guidance drove our Mortgage

half in emerging international. of outperformance other The broad-based, and verticals was principally

revenue and an acquisitions currency constant from basis a consolidated X% currency. quarter reported no basis. from immaterial increased and impact was organic Second impact on There foreign

quarter second the an Our business on basis, excluding organic mortgage both XXXX X% and currency of XXXX. grew constant from

XX% increased EBITDA constant reported Adjusted and basis. currency on a

realization Our flow-through quarter $X.XX, our was revenue end at XX.X% up points XX.X%. the compared high adjusted transformation savings. EPS due margin XXX rate year on EBITDA diluted quarter growth for to of to and the tax of basis was Adjusted of expectations ago increase XX%. the cost an was Adjusted and

least Finally, incurred operating expenses driving $XX million and of throughout We $XX the in-year for million million year million in we $XX of onetime to incur quarter, of savings. the the program, expense model related of next for technology first approximately $XX $XX to $XXX transformation transformation. at charges of expect and the onetime second in operating million half our took phase optimization transformation XXXX, million

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

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

Our in revenue sequential savings. realized from segment cost Services U.S. XX%. benefited Financial a market transformation increase grew

was revenue the seen were down the with first consistent Services Trends in Financial quarter. X%. mortgage, Excluding levels

driven comparisons solutions. We wins, mortgage quarter, softer year. continue In activity the including back growth wins Neustar business fourth new third as financial expect ease outperform and of the cross-sell, in ex improving new half the volume with to by services we successful rates and

was banking Activity as and rates bases X%. business improving balance against delinquency down tempered card confidence. lenders mixed deposit and credit stabilizing Our remains consumer

to with TruIQ's lending suite Consumer Call as uptick customers and environment muted, remains our solutions. for themselves marketing growth The Solutions, marketing. online short-term modest such our enabling current with X%. Fintech highly lending soft. in activity declined products are position the space stable future relevant remains but analytical revenue Trusted We and batch navigate a

customer as see expanding new cases. use and We wallet wins continue and to both logo new across short-term fintech well as lending

the in market, new Our wins continued despite Solutions. credit solutions driven auto business grew by X% headwinds auto Trusted innovative and in our Call

to still used challenges remain car higher continue but rates modestly, and prices. sales affordability grow interest the across there from vehicle market New high

throughout We persist year. expect trends similar to the

volume better while For healthy originations significantly supported modestly below historical mortgage, of We inquiry averages. volumes and XX%, prequalification expectations. declines revenue grew good XX% mortgage against than shopping saw remained by our activity, down

strong. and well analytics acceleration improves, On sector, the of anticipated, rate telco year. Emerging shopping driving a suite and offsetting for X% modest tech, the about total demand second employment. trailing e-commerce, our public increasing Insurers XX-month TransUnion tenant data solutions in Consumer credit-based and basis, quarter, are we media, remains of X% declines gradually adequacy mortgage in as progress as Verticals grew expect as to identity-based X% represented grew insurance, led activity half trends and in marketing solutions. by support of the marketing audience our retail Insurance as as market which growth hygiene, revenue. activity

have the suite wins. strength well We driving muted, as as Media retail cross-sell Call tenant grew Sontiq products. modestly, Neustar risk well employment our expect Trusted business e-commerce, credit, particularly as both grew of digit. solutions project of half mid-single dissipated, communications continue solutions. across fraud lap delivered recent marketing overall and Solutions and double new TruVision pipeline and remains growth digit. and favorable and grew we of declines and to our second but growth and year-over-year robust backdrop year the we product our Tech and business a ramp we impact and across telco Collections unemployment digits timing. Public while the with single new The in as as Sector recalibration low in declined Tenant stable history good

Turning to Revenue X%. Interactive. Consumer decreased

Our wins. continued indirect from channel grew, breach benefiting

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

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

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

Now trends. grew the specifics healthy growth XX% credit, dig quarter. grew top In we prior and strongly the by into consumer credit, of market let's supported fraud, each in direct-to-consumer commercial for India, marketing region. on XX% year second We in

the activity. business improving expectations quarter. U.K. market figures Our to growth, returned inflation lower supporting to gradually, in banking U.K. up and and rates, The improving with for X% fintech stabilize continues interest

Canada, verticals Additionally, insurance against as as XX% well strong market strong we performance, our drove delivered consumer again our volumes. flattish growing offerings gaming and performance. In

improving In broad-based, we're and of financial but was the rate by momentum. XX% In sales new led in after growth driven wins we deliver America, Asia regions. grew very growth by Latin in fintech anticipate performance. share Colombia gains in Canada benefiting Growth deceleration see to indirect revenue Pacific, our and growth also broad-based market-leading from business batch new we Hong and breach the consumer digits, growth starting accelerated healthy double business growth recent and services to second accelerated In we half strong strength lap wins. as Kong. another to sizable insurance with year, and expect the and some of the quarter XX%, solid improving growth across in Philippines a and retrenchment. Brazil grew period double-digit to win in

increased XX% Africa by our retail broad-based led Finally, growth vertical. with

to a on cash quarter expect debt finished the million the ratio We ended made the second billion leverage quarter $XX debt balance fourth of of accrued in $XXX and sheet. course of expenses end the expect and cash X.Xx. prepayment the make the to of $XXX Turning We sheet. of with of an million that initiatives. majority after out roughly quarter We $X.X through of onetime balance million paid with free year. roughly Remember flow XXXX, transformation quarter further prepayments transformation XXXX this with the from the we with XXXX our the excess over funding

to we Term our well In $X.X entire billion facility. successfully Term Term We to reduce refinancing and A XXXX of interest our from and maturity the our extended $X.X our profile billion revolving into also credit XXXX Loan the completed as XXXX extend our as quarter, XXXX. Loan expense. maturity and credit facility of from Term of refinanced to BX BX BX and term A loan We our Loan the Loan debt revolving portion

removed revolving credit portion Loan Additionally, the successfully and for our Loan credit BX, facility. adjustment spread the Term we A of Term

Since of the our all-in announcing our and our debt cost $X.X SOFR Neustar profile. X.X% of maturity billion on our Net acquisition, transactions effective we rate. average refinancing voluntarily X to have prepaid our is lower while expense roughly executing below at current extend today's rates swaps, interest

presentation. for the range You Xx generation, Based XXXX. in can low expectation on the and appendix our end our X the be profile we leverage cash our on to of of expect ratio debt find EBITDA in slides adjusted by our

We ending ratio and Xx We as cash. leverage view our view target attractive continue point of work do deleveraging of under towards to Xx. an an not as use debt prepayment for

Turning to guidance.

are over remains months our first approach unchanged. year, X of but the with the our We pleased outperformance

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

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

We have EBITDA. on expect foreign than impact exchange on insignificant to adjusted and X.X% impact revenue less a

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

of wins includes that our X for benefit guidance of our a in expect Included guidance in realized basis. breach we remediation ] be from expect points constant the that tailwind mortgage, [ currency to an organic approximately is quarter. X% large business X% recent to X.X% revenue the Our meaning will third roughly we grow remainder on

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

points. XX.X% on drag roughly is impact XXX XX of margin on to XX.X% few or adjusted lower nuances basis third breach points basis XX our quarter quarterly expect the a margins. margin large wins down of We A margin: EBITDA to

impact a when Additionally, XXX points incentive the third last compared basis drag. had low normalizing is accrual little a when reversal we of quarter's of over to compensation compensation variable levels

Excluding those items, benefiting margin savings. from revenue realization our we expansion, expect to and growth deliver of strong transformation the underlying

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

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

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

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

revenue about increase on X%. We mortgage to being expect based XX% mortgage inquiries over down

We in X% expect down inquiries year. to roughly be the second the of half

expect verticals to increase up down from emerging single increase low We expect low be breach low digit due We Consumer an single to single digit. wins. the digit, to now Interactive

expect double digit. continue international We grow to low to

Turning back outlook. to the total company

We up $X.XX, X% billion, to EPS diluted to expect billion XX EBITDA in $X.XXX would $X.XXX XX%. be to or being XX That margin adjusted EBITDA $X.XX adjusted and be up XX%. up anticipate points. to We basis XX% to result XX.X% to XX.X% adjusted between to

adjusted and tax approximately Depreciation be XX.X%. is to to rate We amortization approximately expected expect be million. $XXX our

in amortization change interest year. will million portion, $XXX step-up We be for and expense our subsequent be the million. the expect from control about excluding full net We XXXX $XXX anticipate to acquisitions, about

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

approximately expect to $XXX transformation related continue in onetime XXXX charges incur program. million our to to in We

in quarter. of with to recognized breach EBITDA factors: our in the adjusted services our and roughly Before of we driven in as end adjusted the $XX we guidance $X guided of of up, by the of margin our the I outperformance second expectations second want large breaches half increase million the $X and vary raise is First our the $XX in The what our on revenue year, to exceeded guidance adjusted April. third EBITDA revenue of wrapping in million the majority the profile expect revenue by from X high we by The quarter summarize million; can vast million drivers offered. depending and EBITDA second, wins is contribute

meaningful are print particular of acquisition needs meet breach servicing the play a the Sontiq, services With the in and By large breach role able a These are event. of breaches all end-to-end with The market now the typically we large higher-margin wins of now utilize services, space. our notification, are the build growing our to breach utilize momentum, we wins we small including to margin. lower relevance credibility which to services. in collectively comparison, numerous the continue win

for April year of the the second from prudent as we approach. maintain excluding our expectations the are guidance benefit, Importantly, breach our half unchanged

margin year. expect We continue the back healthy the to underlying half revenue expansion strong growth and of in

We million programs our are progress to least throughout at well track XXXX. of transformation on savings deliver the pleased and with $XX on remain

call now I'll Chris for final to back turn comments. the some

Christopher Cartwright

Thanks, Todd.

growth modernization confidence wrap in financial against commitments. We expectations raising technology guidance to quarter and driven in low current by focused exceeded And delivering strong key growth remain reinforcing breach outperformance wins. second recent we're results market quarter in and emerging mortgage broad-based verticals in against our We second milestones the programs up, XXXX our achieved delivering and behind our we results International. And transformation the in our environment. strong our confident and

me it over let to turn Greg. Now back

Greg Bardi

prepared That concludes remarks. our

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

Operator

Instructions] [Operator

And Mueler Baird. will from the first Jeff be question from

Jeffrey Meuler

both going but sounds ask the numbers forward on banking from conditions like I to the want quarter about and bit and are in guess, and consumer lending, stable, worse quarter year-over-year a market I that in got the basis. it your So little card standpoint a

drove what that? So

normalization the starting process. that improvement comp, greater, the the using benefit, from on I DQs what then beyond we you forward, they're see especially going are now benefit to off I at point And hear further given underlying along in but level that do easier comp the guess,

Todd Cello

the for Thanks question. Todd. is This

it think decline what simply is in first see instructive the about of but banking X% you is way first was card just we What year. is What second So it services happened your financial XXXX. lending, mortgage. flat. the about of talk much consumer and we saw X%, is And a to pretty continuation quarter. everything in it look when grow pertains look at look the there more did and the excluding let's a total, half a of that at in we trends know financial to quarter, the that reported and in at on just I -- actually to as question we exiting basis, -- more we

Needless of to stabilization what in a we pleased QX remarks a with we've prepared we characterized down. XXXX, say, saw And our step in in volumes. our we been as

when of remember, at So for the to year, quarter rate your because quarter, where look the easier mortgage. second get the the But was point, saw a that low half ex you September. the step get we're single-digit in XXXX volumes started down the you financial comparisons definitely when third really will in expecting in fourth into we services growth

rate XXXX. full the that saw you the of quarter in of run happen So fourth

how note comparable rightfully the but performing, there on the meaningful in volumes of successful mid-single-digit do grower and logos, and we're been our as win look about the services well is So to it is so, are a new Neustar cross-selling new capabilities. important business, that that is A we've fourth lot focus, to as financial we quarter also expecting. within continue

some at we places the there in important volumes it's just is to that little are had this have the more broader a other bit that So look than success. point because

Christopher Cartwright

are these are you you in we and I naturally, couple out. negative are in I environment. just Yes. conditions, mean, categories view though I muted, we fluctuations points. that a technically, X a going pointed the to mean around but market this within we bit reinforce stable, think so lending as floor, the and would of expects variations some even stable a

overall demonstrating I through we strength, can think that muted. are when that, even model takeaway the diversification grow and is important conditions we are more our the business

kind got ability in depressed, mean, And that of nice still we're fall-through conditions. we've stable delever despite good fact so and to of a the top a market but margin -- kind the stable, growth, line improvement I

sub-prime see holding they're beyond actually against employed consumers you Now well Look, up has to but enjoying think comps. -- And looking the to to banks out, among real The think when start moderating. that do to that distress consumers, And conditions, There just improve. we're and they're it's point where delinquencies growth acquisition forward, bases growth. customer pretty you conditions is are been and activity going going we closer are some when the market tough do increasing wage to I easing. as stabilizing. means marketing steady some because and is deposit within we we're predict, but are of getting lower-income think easing think the

Of through with year, the be forecast reductions any of second course, to Fed if half does this the the would additive in come rate our that at point.

Operator

And question the JPMorgan. Andrew from Steinerman will from be next

Andrew Steinerman

the in how Glad and this Neustar's the Could is marketing track revenue that been on to joint to have still revenues product going give year. that the EBITDA margins have introduced? And you product in joint development lastly, development hear year. for solid some growth within on just traction was quarter products Neustar And is solutions? XX% expecting more fraud color and what's driving around Neustar's

Christopher Cartwright

upside guide Yes, faster we is the the outlined question the our first, Well, probably address. for the because of those believe that there's as realization year, that and in quickly do the acquisition synergies to technology we the complete as we modernization margin that's on XX% we to margin margins because marketing more quarter and with normalized the retreat marketing third, communication products as products marketing year. to be last our than been to them. cost a plus lower higher now goods about XX has we environment there's for sold months And associated tend of return conditions, also, in fourth complete

are a little conditions. bit Neustar lower more normalized some keeping headwinds So margins mix expect we than in also that have we

and good our of board, the across a and doing find look growth particular, a on getting market product because outsized is we're businesses it's you pretty with to if which got Solutions Now in getting well to to ride more we're pressures Neustar, to marketing going in acceptance, we've in having on having softer environment continue and guidance, communications, a we're we're that. marketing relative we're year year in Call pretty Trusted that's in communication difficult where really a of fraud solutions, the the subcomponent great efficiencies because

integrated OneDev, upon are range marketing one bring innovation going a transformation heritage data, we we the solution of took the services OneTru our planning, in best on built all close the of resolution generation on all many the hygiene, the And the data solution media that's On integrated on the identity, the of integrated earnings of products, this single a data, that next together because TransUnion call a components marketing focus Neustar system. foundation, front, it's in and activation time to to is OneTru measurement of and of very the audience reasons single platform. why combines launching in to and unified audience also the tech this capabilities and of next-generation underlying the in identity and the marketing

late to to growth that And expect we year, material we're acceleration think So see quarter. conditions. third market into rolling going launch we next regardless in of there

innovation world. in the same we've also fraud because kind product the We're milestone excited of achieved

my are solution. earnings. the We the of section highlighted in fraud TruValidate We next-generation launching it

that of positives, geographies needless saves of acquired able various we're of Neustar been You effectively, customers can or common see platform. far but integration also it performs advanced our it, a the the identify bringing the a built dramatically analytics signal more all we which by different reduce labor. of aggregating through false And better. and lot And year fraud against to solutions that and in on have fraud either point consolidation it's

phase. acquisition now we're in the kind So integration moving in kind broad, deeply phase, I'd of say and acquisition the from the innovation of we're Andrew,

Operator

Faiza the Deutsche Alwy next from be And from question Bank. will

Faiza Alwy

in growth half, verticals the year. still you single-digit well the first more growth, low but you're You've X% So wanted done outlook talk beyond to Neustar? for keeping about the highlighted emerging

puts just there So and curious on how back thinking be and we half? some takes should the about

Todd Cello

growth grew important In we did seeing are the in several that remarks, I I'll prepared are through. verticals, take The insurance we've walk vertical we X% in do in good Yes, the about with that speak quarter. pleased far thus pieces we there with the that some X% feel had to question. but moving insurance. that in our are quarter, the growing latest are particular, performance emerging

recovery, about rate we has business, And activity thing we're the seeing that continues industry strong the also some a positive shopping improved. forward as marketing by overall is for consumers. on As which think adequacy

on. we that continue to So expect

where like think came it Within the from. about I almost the segmenting would Emerging growth Verticals,

is of have quarter-to-quarter, insurance rate. in its standout also business because but work sector meaningful but sector, that was the contributor to growth it, growth but double-digit grower, the So a which from in the nevertheless, and so public broad-based, public the the quarter, was a saw uneven can size that growth does some clearly seeing, good we we're be project in

view result from Also, a just media our and retail spoke tech revenue they for e-commerce very these as we which Neustar joint in about TransUnion overall, and grew much the the marketing the X% created, solid than that X we vertical capabilities Verticals has our verticals. Emerging greater reside of and because that

of our rate the that's growth the that, So Verticals. seeing where for overall Offsetting Emerging when our remarks, still and growing, said know And business have vast to the We than tech but expect growth but you they to tenant business return coming this see product e-commerce, the that going majority our we're offering. public lower from. declined, prepared in sector, growth is and have, with business look back retail, collections we as are media dissipated. insurance, we recalibrated declines those we employment at

our to of going in -- but And and communications product vertical our which TCS the keep that then Chris they're I houses finally, about something Neustar declining are a just drag. always slow be is of, many mind, products growth or flattish to talked slow suite, communications legacy part

Thinking these are some of the are growth to that offsets So and then some this for guide half from good see the relative you verticals majority there is there. vast of the about second our the net-net year. just

we we didn't As the change guide. said,

downside we being in for Emerging the So Emerging I to that went the reasons the with for to at and this skews Verticals. look think more that the of upside said, I just each say all that through the the than risk that Verticals

Christopher Cartwright

the I to expectations outset we reinforcing emphasize philosophically feel prudent really the the beat letting hold deliver of important and well of we half conservative quarters that's the this year beats couple years opposed the beat at of that is in like the we're of so positioned think call And year. some the in maintaining And maintaining of raise, we we're as and second against we're more the that's think that the difficulty guidance did an macro And guidance the of and point our and investors on kind gyrations in the same the business, that to posture through, we're in flow we're of call. Yes. future and just the in the analysts to right? to all given the past forecasting but market over

Operator

from will next question from our be Kaplan Toni Stanley. Morgan And

Toni Kaplan

was a this to little I down. really wanted bit, nail it touched just but think on

that you your mentioned sort of guidance You change didn't expectation.

implies backing XQ your So organic a growth in out appreciate a I the of that. breach definitely But organic wins, growth. deceleration bit guide

what And would call to there specific be be conservatism, you but show numbers just to really so maybe conservative? able good to out it headwinds about or implied and it's the just slowdown talk from, wanting just maybe really, and be are is

Todd Cello

quarter, the Chris TransUnion Toni, mortgage. because let's important just an kind for the it's and I'm of look reinforces that point, excluding total, you you that asked just point X%. it the our grew when do made the question really at In -- we glad performance, this in and first in

X% the and about breach, a do and the we've and saying math then quarter. fourth can you nature, third the the X% that the now going the the be to quarter, we're breach growth grew the we quarter, rate had X.X% be in because high implied wins for is at end, about excluding at Second onetime we'd

we've just core down step feel situation be put, continues previously, expectations But from services, Chris a stable. raising just we're as a just financial to clearly we it the in now simply where said, business because answered prudent So what to get in not I right thing seen. the it's

yet that happen. uptick haven't seen We

think result, as us. what's things for with we second going out year to So still half we a put stick for the because best that is remain uncertain back the do for of numbers to February the us

guided is half that X% the to able X%, that team you just again, be and the any rate fortunate type towards year. leave to or lending of QX were a to is a can we working marketing reinforcing second And and Fed what guide second outperform to unchanged. from recovery in QX. is do of you assumption that. half I'll So of cut. recovery, that, We no And with benefit I that And tell the

Operator

the from will question And Zhu next be Kelsey from Autonomous.

Kelsey Zhu

bit us on wins I So the think revenues, if that. in little on you can you I give breach quarter. more breach mentioned large details a was wondering

I think and to can generally hard forecast breach lumpy. revenues are be

sustainable view? in growth the level your what's So of

And more landscape be then a highlights on little could there, that great growth Experian strong because that you the that, would top us if tell of also bit competitive there. about there's

Christopher Cartwright

breach Well, a follow major market. and to have to you're going Kelsey. breaches. news only growing Yes, And is for see companies weeks, few large you and the a sustaining

of our feel effectively flow, And the of the acquisition needs of Neustar set player skew -- are that that with going have through We've sustainable investments small win to and we've physical of services is digital. made, capabilities or such have to and a we're the revenues. brand that a of the needs as significant With compete sorry, now. like level the of broad I'm higher the Sontiq, the we reach service got in alike, breach more we've breach in got large kind deal and acquisition and we the emerged range we share and comprehensive

deals are Now that said, you correct. are episodic. These

to call we And the higher-than-usual the level third this have breach may of in quarter. why taken big big sometimes one we've really the that's you're out have going not Sometimes, in ones, wins quarter. pains to

it's also to breach margins. dramatically these be quite wins important not that come enterprise right? not total, high as different, with margins They our attractive I in as understand may they're think but

So in conclude the I what third look would quarter at the hate typical for business. we're that's margin of reporting the and to breach an analyst that,

that's Third it mail, paying lot we're and expenses. of on year financial What next about performance going to we're doing the just doesn't for the particular is revenue these is [ higher postage. continue the just to associated the digital the And services timing tail physical really include a against arrival of the broad through quarter X these with related notification of wins. ] or revenue breaches,

we it's forward. think on breaches at to look attractive they to basis, we're better we the deal-by-deal much a going them So are compete margin, growing, positioned and fast for

Operator

from question Barclays. Manav be next the from will And Patnaik

Manav Patnaik

they offerings showed. I aligned like leadership to grouped product into suppose, that the those? you is or just Or It being that interconnected these separated ask is offerings how by into is Or wanted suites X segmentation you've it that these But you the of just things each wondering more all the brands, sounds I that. provide X on rather? internally, by are are? really product

Christopher Cartwright

love I the Manav, question. Yes,

organization. that you those the product leadership our the we also our that products and product Certainly, parallel wants align solutions we about have organization, have that got product within we to families cases we've needs on see. countries our that and leadership verticals. talk within the specific relevant defined those global most model. But And management teams let's are for and So vertical focus a countries and operating the have directly use

consumer were you I you could if our cetera. lead, here, our introduce to So fraud et lead, our marketing lead,

And like the global go-to-market countries in so the category they overseeing with have verticals. consumer particular large that company a going a category manager. the folks have specific But interfacing the then packaged software is much lead goods leader company product or going software or to of to it a a that's that's a are

Operator

Bank from of question Heather from next be the will America. Balsky And

Heather Balsky

on question I wanted to ask Interactive outside Consumer the a breach.

what accelerating. business you're and that curious if nearing inflection you an about that, what confidence talk about gives talked in can little I'm You seeing the more in bit a business. you

Christopher Cartwright

Good Heather. Yes. question,

a rate one have business talked that the And consumer is the in transunion.com of portions now direct-to-consumer about the And lot of we we decline X consumer. quarter. most in So subscription has that what and the challenged been a we're slowed and properties. second slowing through and other is seeing recent that calls the

point the mid-double-digit then And what's players indirect pressure an piece in success drag business getting the the more in most of the helping really and freemium of a really low further our year. of there of players multiyear reach of larger and subscription And results we're from fourth of piece slow compounding third just will competition from share the for the of out in growth kind out and and Sontiq. kind to that that stabilization, the we're it expect that reduce for kind or the by revenue is We segment. where seeing mix on we're been this getting the that, quarter of declines single-digit equilibrium earnings has this really

part year, it success also year, So in XX% by was of in really positioning strong for subscription this driven we're in year, last growth. ourselves Sontiq great identity but a another grew breach, sales. And underlying year

the we're back a make return consistent we growth, that stepping to going revenue consumer consistent to the pursue monetization to that happen. and believe each going options to bit, firmly we're of total Now business compounding, still to in

both supporting but So enabling properties, we're remediation. to marketplace players also offering our terms do continue our web front. directly to improve in to the of We're on in through breach and going in we're well build to other to identity going going the to so upon consumers, offers capabilities the and do subscription momentum

Operator

from Shlomo be will question next the from Rosenbaum And Stifel.

Shlomo Rosenbaum

on to want one to one and then other -- I just jump to item. thing clarification Just

the kind because indirect breach heading was know of in current if that Consumer it some XX says XQ? talked to that's any I activity Did bottom there quarter led Interactive, XQ. XQ into unusual just the the 'XX, breach. any activity in about in Slide -- growth for the of by want of pop is Just unusual of you on

transformation where what to the timing of get about is, more And your line, costs, of optimism project? then I'm terms Chris, in talking important talking out about you and you ahead? expect success? the guys it, you the I'm the in Are project just question of tracking not stand the the about

Christopher Cartwright

and breach for questions unusual in ability our there look, to nothing second your factor. only, was breach it's activity And thing big these I won new the quarter, guess, we I really win unusual thanks Well, the the and Okay. we're of but there. the getting or both not quarter, mean jobs, of benefit and is them, the compete a that in third several of

Todd Cello

he's responding. what asking have it that's the slide, he's So on about. we That's Well, what right?

indirect, have So the is did in characterizing represents well. players, -- aggregators business premium that doing is remember, do but and it as also we indirect offer channel, where Shlomo, -- just breach, we're we the coming growth the channel our all in with our from

that breach just is was there point the driver So the the of growth.

Christopher Cartwright

Right. In indirect? the

Todd Cello

indirect in Right, the channel, correct.

Christopher Cartwright

The own. opposed as to people's breaches our

we question moving technology in then like about but the your to on this transformation, are quarter, feel I again great -- So making which we progress. spotlighted

Certainly, are achieve We the a tent was those to the but pace to see OneTru in the and little because in you're the we're outlined later, quarter the to at of last technology benefits. bit well deal pole tracking will going good call largely from come And by that technology-specific ones transformation a then longer savings XXXX year, we that enabled that the activities. in savings that. definitely of third are

we been and integration But what I Argus plus but savings early million that in includes The focused the hand. data and achieving really platforms. the to those flexibly products the after guts earlier, we're product very and that on upstream families. which all be all best-in-class days the just guided information product Sontiq, certainly, management, now suites confident well that, OneTru, and underlying acquisitions in and is what focused identity these something the on our in are analytics $XX acquisitions the we said ability both in leveraging are delivering for Neustar reengineering the to it think intelligence we've deliver X of integrated products, we for families, our about

suite, can lot, we up which infrastructure and a this to free out going that course, simplify the TransUnion, a of across reside lot utility products underlying is of engineering the all now And cycles. which take layer, cost standardize across on

Operator

today Blair. Nicholas final our be from gentlemen, Ladies and William from will Andrew question

Unknown Analyst

outage. you and if any of And touch a up disruptions saw was auto any if This the out to disruptions, for the July impacting quarter to Rash on from expecting is sales to Andrew. want CDK I on Tom auto kind are in you there third quarter volumes? and delay ask

Todd Cello

something As impact. of with pleased small as And was again, into of If far second X%. it auto, go were would we flagged we remarks, little bit situation. you. have grew saw performance. as a to year, that our forward from half We it We for significance, we you impact kind of prepared of the the back the look

that we So managed. it's feel

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

Operator

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

disconnect. You now may

TransUnion (TRU) 25 Jul 242024 Q2 Earnings call transcript