EFX - Earnings call transcript Q2 2018

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Operator

Good day and welcome to the Equifax second quarter 2018 earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Trevor Burns. Please go ahead.

Trevor Burns

Thanks and good morning. call. conference today's to Welcome I'm Trevor Investor Relations. Burns, me Gamble, Chief are Begor, Dodge, Mark John Officer; Executive Chief Financial Relations. With Investor today Officer; Jeff and is call being Today's recorded. the be An tab Equifax website later recording of our section will www.equifax.com. archive today the the of in Investor at About Relations in available

factors, to in of attributable making number be XXXX we environment. business and affect we from and adjusted understand including Equifax to uncertainties adjusted subsequent Equifax its set forward-looking business third forth of to SEC, quarter referring could this measures call, results the risk that comparability certain the guidance Also and you During operational will Form and non-GAAP adjusted statements including our underlying factors help filings a involve certain our These to EBITDA, risk financial will EPS be XX-K that for our actual factors including which statements, filings. full items performance. are year be the certain with Certain other in will expectations. and inherent cause materially differ

EBITDA cybersecurity to For and other data as enhance and our as project related acquisition-related is and further back to and items, security to the transform security upon income certain investigations systems positions. expense, cybersecurity incident. projects as adjusted XXXX, as depreciation These but these attributable networks income and adjusted and the outstanding fees to in and income proceedings. case defined substantially security. tables, is release, to projects infrastructure projects. legal disclose on data attributable awards to not throughout manage the data from this incremental and with – as earnings our are later possible, IT the stock implement as replace our These yet effects enhance related we of as will expense, and interest XXXX. will to IT non-GAAP EPS, global to income, adding XXXX Adjusted well adjustments in reconciliation losses well to website. litigation also settlement interest filed measures are are are incidents, posted This are processes as including cost systems, reasonably cost Equifax things, Form cost consolidate our designed IT available expense, infrastructure, our non-recurring the stage are net which the detailed In tax enhance IT well to and amortization, for and future and to projects also to tax for attributable expected estimable the regulatory Adjusted government of uncertain vesting our at professional investigations amortization EPS excluding excludes, net be today, Equifax occur litigation or second the the and related XX-Q recognized quarter principally excludes and to Equifax of among EPS tax fees included one-time also and includes our early

like it to turn to Mark. I'd Now, over

Mark W. Begor

Thanks, Trevor, good morning.

results trust discussed of and basis you expectations customers' and and X% in win continue April. breach. was following $XXX Revenue Looking quarter midpoint the the toward performance security as up EPS revenue we was of at the performance, reported a were solid we on our overall second a basis and local back with expectations XXXX adjusted million consistent currency with

reported By and the negatively and Solutions of currency this consistent with business at will back the well was currency in quarter Adjusted and later the GCS around performed our in and benefit revenue further our fluctuations in our the impacted a our International in was $X.XX USIS X% local with on expectations. revenue growth unit, quarter April, basis call. occur high growth that discuss an a Workforce of some expectations. EPS detail in was the quarter. expectations. As expected which very did not know second you we below end modestly in as for FX John reminder, the of

they very increasing customers now where I'll about to relationships good revenue to we number the However, of continue with talk are more make that. progress new and able pursue further opportunities

first Solutions. morning. on X% of Financial made areas and revenue the including was customer was USIS. Marketing in also slightly also the below and We security the Information extent cover saw very by a down good which Online at data start and decline with our the X% versus looking in USIS IT and BUs transformation this expectations. to critical was our I'll we'll start the Services and support and we below This in quarter last year lesser principally progress

to vast with approaching I in expanded win discussed we critical is being and customers. months, we XXXX back this mode their so majority, trust those USIS in customers differently, As working closely complete are have we deliverable consistently for past we importantly the security customers. trust. views nine mean, over now USIS their to discussions of the commercial quarter, strategic the collaboratively to but a most that able working majority rapidly return or quarter solutions the that and track that progress winning opportunities second business into the for opportunities we back We or XX Or Starting pursue our to and with our the new pursue normal accelerating Equifax. back to of can of the in back solution with first great substantial drive said revenue the are a expanded forward customers customers' new largest status create made with majority substantial

units second our with of a customers all quarter business I significant personally the with number across focus USIS. met Over in particular a the

ready Carolina assets, another North Marketplace. last of Ignite And the as customers with back and data differentiated two are yesterday recently Customers our Direct As these North discussion focused the a step mode normal commercial analytical with by and can customer. forward I or us Friday, few and has recognize driven Every their how grow. work relationship, I we of was solve value more Equifax, strength to with to Cambrian, business normal key its in relationship for USIS customers is positive up returned very to a help week Carolina operations. key of return a more commercial our with to in needs consistently exceptions them met to capabilities on

for Financial pushed second of predictable lost quarter. both believe cycles saw and several to on breach. incident As sales months are customer and expected business have the a was of out expect transactions the handful due data to the ours. the products, an we and this Sales sales second July. be to could integration can unprecedented in the and their Services offline first them our we a that the impact We CMS transactions discussed past, Marketing as closed these online less already bulk of we to like quarter cycle still following Marketing be do initially the Services, Financial the close as including short of as as few In in to June on few are security close in side transactions to much XXXX XX weeks not decline months historically extended the as transactions in cycles particularly for in X in

Financial pipeline in Online Marketing USIS Services. the seeing substantially are we both strengthen and sales Importantly,

Given in third of half and this expect revenue the growth USIS quarter strength second we XXXX.

normal second more the as significant of USIS with time a will and mode activity. return to working continue quarter, with amount to customers in his a commercial I As we my devote team Paulino USIS of

We are on this. intensely focused

more growth a back We are intensely mode me. priority normal to focused a will returning on continue it and to USIS for be

Number Work government, the XXXX. team revenue a know X%, revenue as importantly, very workforce across a up strong and largest talent quarter Services strong We sequential Verifier growth growth since critically had active was broad-based records in had Verification Turning solid also which with healthcare to quarter and Workforce quarter is you solutions, total Solutions, the with XX%. the second record growth revenue and in of double-digit auto. had important. was growth up The very with

workforce there our in valuable as by increasingly So you And great Work The team. our progress data to the customers. Number makes growth know, our

the Services U.S. workforce economy and in stronger from As employment. quarter, our lower we the claims and ATA-related unemployment analytics in businesses, Employer and principally expected, declined

look stabilize and revenue to half. to growth good claims another half, nicely as accelerate we see in strong International principally as local revenue second growth we an and for quarter the be Solutions growth. for in asset Workforce and important continues very we reported had the we currency also strategic second Employer Equifax. However, to believe our Workforce unemployment Services X% Employer growth see Employer engine Services with expect Solutions Services in in return will With growth growth continued overall to Verification businesses. Services

our businesses, grew quarter a XX% European as Our businesses very credit had local Asia and Canada Latin as in American local growing Pacific all currency. X% over currency. well strong in

As in we business last quarter, the declines venture European discussed specifically management our is experiencing government. debt UK our with

deliver however, the As in UK expected value UK the the half revenue to prior first venture we the the in have year. continues constraints greater than quarter, indicated than budget last government, to government resulted lower

performance the improved third growth quarter in to year. overall the fourth the quarter expect return in management We and of in debt UK the to see business

the file U.S. the by hold, Veda. end consumer of in least our supply and in comprehensive lot integration I'm management credit outside success the bureaus they they continuous reporting UK, I acquisition positive During banks that of excited our our half credit the about since International Australia in will a a quarter this teams. with largest announced Australia, decisions. data In future better credit business the way for the of Recently of of the the businesses. of third our data lending with the we've quarter the very spent paving year, and of time Australia, Spain Canada, seen of at

now is bulk We of U.S. expect To U.S. the last half and of security our consumer this The revenue Canada second well under of in the data local and revenue as to Solutions, breach, revenue. future. total XX% as currency direct total just the U.S., direct provide second expected of of result as perspective, revenue represent Australia, just a and of team turning some declined as over the year's our Last, continued GCS represents GCS quarter declines our suspension expected the quarter. over in businesses business International advertising XXXX, from in consumer as in and revenue. X% consumer Consumer XX% following Global UK performance the

channel customer business as growing of is U.S. well our to principally our Karma partners as partner and revenue benefits Our Credit direct represents now GCS the business. and majority LifeLock,

revenue business. Equifax in predominantly for business Our franchise important GCS very is in our a is partner U.S. and

growth This Our offset both in consumer partially benefits. the direct quarter to partner business the we our not second declines and was up as consumer to in quarter. nicely business, again in second the large did direct advertise in in

we our consumer In terms of be substantially and intend U.S. before of believe and and in well consumer We NPI the broader in strengthen as the U.S. U.S., direct our consumer commitment U.S. – you. direct future will in relationship to this and the continue our efforts. with in consumers our UK, talked as about businesses, maintaining Canada support invest with to to to direct-to-consumer our direct to the a important Australia. We partner business, U.S. in

XXXX half marketing fourth investment will in in our that with begin of be before consistent the and year-end, marketing expect we second it's in level and which to XXXX. likely U.S. had of We likely the again quarter,

made an Turning progress about is in that on and in technology those second fundamental in we're consumer our quarter making security all this to becoming the talked this leader significant we've and very support, to Equifax lot data the and We investments a to initiatives. good area. commitment industry

and commitments will that through first. also ensuring deliver culture we support through and on transformation, security IT have process customer We these critically a but our puts

in enhanced will strengthening of structure, risk us is the lines customers it will with a defense me and leading to a structure, prior responsible is risk to endure. This clear we're for our government help management utilizing and our Financial and support for was effective Our Synchrony this role three my designed commitment. culture for enterprise office new leader committed fully ensure

building During the out also in second quarter, good leadership the team. we made senior progress very

technology CTO leading product CTO weeks You deep our announcement IT, IT to International very Dhoré, personally is team. to as (sic) outstanding analytics a IT, of saw premise-based Cloud past the will and Bryson transformation And new Jamil addition I and of and transformation CISO Equifax already doing strong has a [CIO] and Channel. security, pleased (XX:XX:XX) prior team, Jamil really consolidating really really Mark our the round want with brings over we to the forward. is from Bryson job out us to will technical Koehler. nine as the Bryson experience that unit. and deep experience. quickly efforts with our Weather cloud his strengthen systems and our with private and the CTO our well and I to out Mark in first I'm Data our data drive thing the of remain few both months. security strong the and (sic) and going head CTO of applicable including Watson to off bringing as Cloud, have Bryson business in build and did IBM's underway. that team Analytics The Prasanna thank and really know leaders transitioning the in experience expertise, security team substantially very for initiatives quarter, our that, strong as Rohrwasser public joins [CIO] ago same consistently cloud (XX:XX:XX) joined Farshchi, interim them strengthened environments leadership an directly backgrounds, who His Mark

stepping announcement saw last business USIS Friday lead to of back also Paulino our in Barros You unit. the

years. and focus from results, well outstanding of well-liked his know results, every boost the his laser to corner focus many, of You Paulino on is Equifax. a and over executive Equifax. Paulino been He's team He's for by at depth an many operating leadership be with driving a the plan prior ensure us will on USIS I will in our customers we Equifax experience mode. our and I expect as do and to internally and across well-known roles that USIS and the growth its a beat business in continues to and Equifax not to path on and closely across and to half. focus up him with miss Paulino the second U.S. team recovery partner dial intensity growth return responsible

in We for right team have the Equifax. at growth place

on And is Our fundamental accelerating transformation Equifax. a security acceleration, when to fully our technology and DNA and a a transformation to critical our very security market infrastructure, in our data data-centric strategy. enhancements margin technology our Cambrian, Global commitments. We're progress support and strong as Gateway technology decisioning and executing transition platforms and and across technology making enhancing to implemented, delivering revenue customer standard and extending teams are with speed to cloud-first leading global Ignite

transformation previously, accelerate progress, we've gross up we total in related which we cybersecurity $XXX our professional levels fee that positively incident project now you non-recurring non-recurring many continue April. spending cost As And the from related invest expect $XX other as talked to plan, as be we and to legal in with security to million, view IT in XXXX, about million times principally we discussed and as about our approximately business. well this we to

of priority analytics start off and Cambrian team. entire and despite as platforms impacted in a remains security. and expansion top resources IT the globally As for new innovation data focus our are Both investments our project and great linking we product technology to XXXX, discussed a on quarter, and our last being continued in management we Ignite

we're have worked XXXX. an As we NPI various making launching pipeline XX We active to protected products resources products track call last the our focused this initiatives. keep of and consistent the over those and products focused of April, funnel talked at we keep on resources with to we record over in in new on XXX tracking diligently we're sure on stages and new in XXXX, our year, launch

of on success in will XXXX delivering XXXX. be years, and XXXX in and based XXXX launched in sales NPI heavily with As products revenue all

through As we with revenue Marketplace along a the XXXX, that nicely of with products number of successes. NPI Ignite seeing pipeline are new the Direct growing and move we're both very enabling adopt faster and placements, with customers platform. delivering growing

Identity expanding Fraud traction machine in customer length talked with one Our Yesterday, to trended my – in when also signed in our we key implement are was new customers and and learning pipeline of growth XXXX, trended also based agreements and Commercial, for on avenue now quarter adoption our discussion M&A part has are which Equifax. I gaining signed database traction products. the remains during products scores at for gaining second Card active A also of data with launched active. an is space. was new Carolina, provider Fraud is and we North major we've my very InstaTouch the the and and about yesterday. – In talked Identity our other InstaTouch, several card and we

our pipeline Workforce America supporting acquisitions Solutions first the in building are completed We XXXX. bolt-on several in of have and Latin half

we credit, to U.S.-based agency for nationwide. telco of installment credit lenders USIS lenders utilities become reporting making rent ago our acquisition XX provider lenders the to consumers saw includes specialty can DataX, which lease the and core to leading own a exchange This You of further in base announced data will markets. days alternative broaden The Equifax Number that data complement loan, decisions. assets and finance Work will own, the databases part of and and assist DataX their in to a credit

verification, a customer those Additional and risk are reporting, account bank DataX part included offerings services credit verification, offerings. of ID

with customers, on Equifax, in gain as on and focusing their and my partners, trust regulators also perspectives spent set with XXX Equifax We are for have very over mentioned for half excited data I I about And as our I've to time Stepping while regaining us. over U.S. just back, confidence of road, days. this new possible customers. the their on meeting as been earlier, rapidly

customers North two of insights I U.S. our last valuable USIS very of I customers better mentioned, half with on and yesterday I'm Their Friday. a spending big are incredibly customers. customer part and was my big focus time As consistent. overall with with in Carolina a

our great supportive strong our They they execute are They have on We and very security that data from plan. value progress security assets. of support also data differentiated must that are we technology, on but clear customers. Equifax's and

bar for the to these on is we us, higher commitments must Given of a areas XXXX, in events the we be will. and leader deliver and our

clear analytical partners and and very data are also strong differentiated. and capabilities have unique, been is customers our Our Equifax that

be win This Resources, very closer is are a mine, of competition Equifax customers. investment, to be team focus forward. the entire our customer and going aggressive, to will will personal both people and focus However, and needs on and the to sharper. move

a New in product and access with commercial and teams through will DNA to Cambrian, includes customers. our This generation with customers teams faster and jointly collaborative Ignite NPI data scientist easier, way making our co-collaborative our more be and accelerated.

Finally, to prioritized to will of customers. products new our be technology transformation speed deliver

are we and lot protect and in security months, do. levels of making still to priority support, We returning also that my and the and the accelerating to have data Workforce and customer to their of manage USIS consumers I nine which to customers to strong very progress a Solutions of competitive since a empower customer personal to work understand Equifax and we've We've to IT growth the individuals security entrusted breach, my in to data and we commitment absolute and want but the ensure sensitive have committed International. growth ensure past leader been made consumer personal data.

path and business incredibly Stepping This back, great excited Very about Equifax. for a I'm great forward Our space. is a clear. the focus is excited!

We data to solutions and our assets unique delivered insights customers. have –

normal in progress of a we are USIS mode real and our feel customers we momentum winning with trust strong and making business. confidence return operations more our as to We back

accelerate time investments capabilities. USIS I with mentioned delivered IT leading to of will the majority to time, USIS As and infrastructure historically. it's in industry the return that continue spend earlier, to the will my same team a big path Paulino growth the At I of our deliver

Our data. bring industry position consumer to us significant in will investments in leading an security protecting

to with to in the delivering Equifax. energized drive and around and Thanks John. hand transformation me that, this let it over we second right for in the place future focused and half, are team have laser the ahead We and

John W. Gamble, Jr.

Thanks, good GAAP continuing referring basis, well. non-GAAP represented be to Mark, results generally to I as will from morning, and refer financial everyone. results on a operations but the will

the items excluded uncertain For to results XXXX, the one-time and incident, non-GAAP our from to costs tax additional related one-time benefits cybersecurity adjustments the positions. for are

item and and outstanding incurred implement principally and the litigation project total, one-time improve one-time related and technology fees non-recurring incremental We million to The non-recurring from cost infrastructure. million. of generally XQ In $XX we million. partially non-recurring you $XXX our insurance gross cybersecurity costs were since million, EPS. and for recoveries were in million related incurred $XX were incident were so of other includes other million will margin costs XXXX, EBITDA provide XXXX, $XX of been adjusted can gross our related and the to investigations to excluded net in $XX XQ adjusted consider other legal $XXX government your the $XX to analysis. incident, it and details for our to to of by on Total project and charge incremental costs in cybersecurity professional The and incurred non-recurring incident cybersecurity have offset this plans million. is and services, resulting the related $XX million security year-to-date data generally technology charge These

against under have the the referenced have partially insurance cybersecurity payments cost to-date million, We million we offsets E&O our which received of of $XX which $XXX policy above.

claims We fully utilize continue to expect to make policy. the to

mortgage sequential in up well and USIS compared saw growth Marketing when growth strong Equifax, was at benefit basis of Services. and USIS of would Mark the currency of X% in reported year-to-year XXXX. very XX.X% the was XQ $XXX from driven last for down heavily the XQ midpoint as both was was XXXX, record the Financial including the currency growth revenue consistent revenue per was security high was in and which over International. The risk over revenue overall negatively Adjusted up revenue slightly of X% the X%. our revenue below expectations. generated indicated in Total and XQ with in due ongoing At decline margin EBITDA to slightly $X.XX X%. in to mortgage X% are X%, from specifically about reported in mortgage currency margin of our Solutions market to mortgage-related expectation but revenue up For time by X%. XXXX, XQ the ongoing as $XXX increased XXXX quart the average X% the Much related and local constant margin growth X% foreign rates by increased down of up expectation in points we for for Sequentially, beginning X% and discussed in ongoing five sequential we XXXX, reflecting Workforce XQ insurance was time quarter our FX an XQ stronger sequential April, XQ basis, of of in increases second to technology local the million the the as sequential call in X%, by and million, well below years a conference in as our our technology, XQ to have was growth we revenue April. decline exchange last XXXX Equifax, USIS the X% growth business The transformation on the at of at about being share office cost from in of directly in revenue end in adjusted reduction margins costs. related EBITDA XXX The second the both EBITDA at costs is XXXX with the from XQ half up XXXX, XXXX the directly and X%. discussed USIS related driven and About of basis cost as the XXXX. year, expectations. XXX year, XQ security units. related is had Cash to was in of points impacted improvement EPS $X.XX down the incurred we Total XX.X% XXXX,

sell share the Our XQ launch growth Bureau mortgage in XQ by X%. business be bureau In increased Solutions, saw and and benefited expect inquiries XXXX. stronger market mortgage of in mortgage which we volumes X overall XXXX decline delivers which to XXXX, the was XQ further that XXXX in of revenue tri digits reports. in versus Solutions down than was Mortgage data the reports portion to XQ USIS market business we tri our Mortgage high-single bureau weaken trended by

revenue of than For expect down an Online the period down we up slightly compared previously the from percent, making are we volumes down XXXX, at the million, to was revenue XXXX, the the of fraud in Core compared customers. when identity declining XX% down in we principally the were but slightly market year all decline less, and reminder Information slightly be mortgage $XXX was the year. period. to to reflecting weakening down XXXX, outset Solutions in Services with when slightly to the $XX X%, less market progress year in the in compared this by compared the ago down to XQ up of Online slightly solutions OIS improvement XQ. the over the X% compared digit than Online X%, OIS to high-single ago expected XQ and driven X%. sequential less growth about between was to when and reductions of core reflects within our government Commercial revenues year the XXXX, in was which was Financial XQ in average X%, share and very network. Marketing XQ increase million was XXXX transition business commercial financial Solutions Again, the portion Sequentially, last line sequential Mortgage This X% X%. strong the of up the of OIS for of in XQ five a a our and years with XXXX XQ weaker mortgage XX%. growth XQ grew

sequential We in Financial slips a earlier, growth mentioned for from year. the we we later but in saw close. Sequentially, XQ Mark last below still transactions period. the expect five and these to XQ was expected transactions that to the above As the XX% rate second several five-year to XXXX, close XXXX XQ good had Services in Marketing years, highest up performance, very average XX% the over

on Marketing As as was principally to new some discussed impact the sell Also, Overall, transactions we have competitors sales impact we have our security Financial we process our have completed share. as previously, Online. ability on selling be lost aggressive. discussed, customers sell to seen resulted batch the has their USIS reviews in certain this into and and well customers, to more Services product in as

basis mortgage, have made in up customers Mark points the technology earlier, was majority very our points XXXX, XXXX. Mortgage year-to-year and Similar security-related are other opportunities by in increased will last The a margin but XQ but specifically actively down progress into end we participate toward revenue USIS increased XXXX. Solutions XXX principally margin from mix and margins following the negative XQ adjusted the now of impacted to factors, XXXX, were costs. XQ basis XXX from including lower of year, in third-party costs, XXXX principally XX.X%, we As efforts for USIS higher we discussed mix, able for new EBITDA believe good of substantial expect principally benefit and sales to sales but customers with

for XXXX revenue USIS the from We to full to slightly up to XXXX expect year. be continue flat

our expect solutions, in and across likely lower is of very to fourth quarter, better up reflecting XXXX, XQ by levels revenue we mortgage $XXX delivered second revenue half EBITDA million when XXXX. lowest driven be quarter. XQ XXXX, in XXXX. the X% to and margins first government, Verification generally strong USIS impacted XXXX, Services than the Solutions items was revenue XXXX half talent XQ the another margins compared growth, than the had quarter XQ growth of healthcare that expectations. auto, double-digit EBITDA the also XX% with the Workforce as For was in will approach

We records in and last about grew was $X both XQ also Services active total again million, down X%, $XX XXXX. or million from was Employer revenue year.

decline unemployment indicated our Workforce earlier, principally As in Analytics. ACA claims business, and related Mark the was

EBITDA principally in explained XXXX, margin more and The down was onboarding. Employer points look due in marketing, growth decline second Verifier. stabilizes we basis However, by increased XXX to to Workforce technology in our unemployment the Services and positive I-X including was adjusted to security investment growth the partially Solutions will growth businesses, and as in the as by increase we offset and related XX.X% claims than we sales and XQ XQ The see from costs mix expected see in employee services believe XXXX. half,

Given the by we throughout continued strong in in XXXX, margins. sequential Workforce continue to we see to driven that mix positive improvement Verification revenue growth expect Services Solutions expect

$XXX Workforce currency margins XQ year, to continue expect be X% XXXX, flat up and adjusted basis. reported revenue XXXX. was the in we International slightly a For full versus to on local million up to Solutions EBITDA

specifically in our in in management Asia debt and revenue Pacific in commercial UK XX% revenue $XX U.S. revenues XXXX, local combined local U.S. in was credit currency. and Europe's We local was local by down dollars venture This up low-double Spain in business. in $XX currency digit and in growth the XQ UK growth business, by million, government. continued up our decline saw X% currency our strong operations. our with driven currency dollars million in offset X% was a

Argentina saw beginning perform peso. inflationary Revenue we fourth XXXX, see mentioned of broad currency well, half the Beginning in Mark a up currency the in quarter, are the million double-digit foreign will under to $XX Argentina inflation third was third and based, Also Argentina, performance in Argentinian quarter, to a business in earlier, the monetary accounting, X% and second be of return debt of in in and exchange dollars GAAP Ecuador more in early exchange May, continued U.S. growth local strong from changes with Argentina expect XQ growth Chile, the in to up Mexico. in and income growth a expecting this XX% country in assets highly be a America's local although significant Equifax currency. we quarter impact year. Latin devaluation revenue in overall improved in In substantial increase will As considered XXXX. economy recognized of statement. the the the was foreign related the quarter, and management

consolidated XX from We in up and reflect on U.S. but expected and based their investment third broad in quarter, basis dollars increased and revenue material XXXX. to was generation. XQ XXXX down XXX our was The strong security margin beginning as sales our million, reflects execution. decline from will XQ from points up XQ XXXX, technology, them International's results adjusted XX% was as up the basis and EBITDA XX.X% year-over-year not GAAP points X% to spend increased in exclude impacts well growth local Canada's in expect and to $XX continues results. these be Canada's in the currency. do

in currency XXXX, to margins Global a and on move We was as we expect of the half to XXXX. X% Solutions local second revenue million Consumer $XX XQ EBITDA reported down through continue basis. increase

XX% Mark as in quarter suspended declined consumer covered, just revenue, more revenue, which have represents As advertising. U.S. direct XX% over the of we now GCS than our

Our which GCS partner-based now revenue offset substantially decline. of the over and of business the this half grew majority represents

the Also, as consumer corporate by quarter, XQ and marketing an In was consumer U.S. offset lower U.S. related indicated, direct expect second expense, million. further lower business. GCS to a decline limited in we The new we direct business the marketing XQ and In the margins quarter. we further XX% relative in our direct a to in and we in flat XQ increase as margins. XXXX. XQ U.S. margin adjusted decline XXXX restart gross in was business resulting sequential reflecting net expense margins. XXXX, in Mark to XXXX, consumer reflecting general to consumers resulting expect consumer our XXXX, move direct sequential As EBITDA in would XQ business into we revenue decline, the EBITDA direct consumer was seek revenue reduction both a fourth U.S. in marketing add EBITDA in intend margin decline to U.S. flat revenue expense with $XX

cost costs non-recurring increased $XX with up reflects the quarter million, this million Excluding associated the at free half the to the of general related was office XQ the ongoing and from year, $XX technology, we Over XXXX. specifically and ongoing risk and for the cybersecurity corporate expense our costs. insurance incident, adjusted the increased security beginning transformation the due the of costs discussed Lock & product, Alert

of the tax tax adjustments resulting $XX benefits income to settlement tax stock a XX.X% from uncertain authorities million effective includes GAAP awards. and with from related tax of GAAP tax years only positions for Our tax $X from prior million effective rate

EPS following the reflects For tax in XQ This adjusted XXXX, used XX.X%. was effective the in XQ factors. rate calculating lower XXXX tax rate

our rate XX.X% up well in to tax tax tax resulted quarter, quarter discrete as this the in the a of is First, items small XX.X%. lower we rate Catching several approximately as believe down from we April. discussed XX%, tax second year-to-date for ongoing effective in effective non-GAAP the rate

about was a points flow $XXX the share. our level. per revenue. $XX million. quarter, discrete rate, For basis recoveries and cash quarter agreement. XQ effective June, achieved Net cash second was XXXX, flow to XX% based XQ is insurance XXXX, ongoing software free tax X% of up Through XXXX and was rate, year a compared million In spending than Capital was items Capital flow year-to-date flow cash prior $X.XXX rate benefit extension Year-to-date, principally we in $XX million, the the capital received cash operating and about million, over now on incurred respectively. year-to-date be in between XX.X% spending In XQ operating $XXX cash and X% X% respectively. renewal large effective was was the was was million up was of $XXX XXXX, spending X% and X% down million, XXXX somewhat million. that $XXX sequentially the XX.X% lower and including XXX expect and of and free with the our tax up benefit licensing in $XXX XQ from to database

of Total end X% billion. to capital $X.XX was XXXX net spending the we of For debt expect all XQ continue XXXX, to of at revenue. be approximately

to leverage was net of In sale leverage and we The notes XXXX was XQ XXXX. repurchase fixed in expect revolver, We end were X.XX of the under billion rate shares a proceeds to used do and gross and program. and XQ We issued paper floating times net now of the notes. $X XQ and prior with XXXX. at not in three X.XX no to have meaningful XQ did times XQ XXXX Our debt borrowings XXXX. year term of maturity commercial repay not the loan five senior

revenue. XXXX, XQ cover XXXX was the impact Before we wanted indicated only period. guidance, versus strengthening June. actual as When and remain guidance, the returning the to very at earlier, negative levels we XQ assume FX through May dollar provided in that to the current the we a substantial occurred of impact slight of will to I entire FX results In

larger. share stronger in the about revenue of is negative and guidance, X% the $X.XX each of EPS XQ their when in all over the XXXX a relative of on of of on FX dollar order per per in impacted the impact negative expectations FX of May XXXX XXXX to guidance for at quarter share. on by However, XXXX, movement $X.XX changes relative order prior all we FX, and impact revenue impact per expectations XQ quarter. by a negatively in to X% to almost XQ of share. is, total, provided of our June course, revenue on X%, $X.XX our per of of impact and and for levels on much The current impact XXXX The revenue for is In and our rates the

for our XQ we $XXX XXXX. million, versus reported turning expect Now rates, current X% growth X% to XXXX, $XXX at between to to guidance of and be reflecting exchange revenue XQ

approximately negatively range, based our XQ XXXX. the midpoint share FX EPS impact Local Adjusted versus expected XQ weaker is almost to XXXX. verses be $X.XX growth and by XQ per is X% $X.XX to is is be exchange, Using $X.XX Foreign rates, current expected exchange X% share. share is XXXX. to per XQ per X%. adjusted than currency expected of XXXX $X.XX guidance to on be about revenue between expected to negative, EPS

$X.XX The following In benefit share a we XQ insurance-related share. increased a for XXXX a $X.XX range, transformation FX security, equity share second using we is of is transformation from recur the incident, is increased quarter EPS and Sequentially, this and Workforce; in business expected operating of share; XXXX in over units Offsetting FX XQ $X.XX our to lower in a over interest rate USIS partially a the in each which increases reduction; of issue share. to the insurance equity expense have this offset which slightly per and midpoint profit discussed, XQ GCS factors: $X.XX and growth third lower security, about remainder in $X.XX are: will XXXX. explaining down third versus is security factors about quarter. the cybersecurity revenue technology cost the per three half employee addition, is lower expense negative principally costs as cybersecurity of down tax lower from the sequentially the over increased and the nice again benefit accruals not share; XQ guidance grants a had versus due about we adjusted over as bonus interest higher XXXX quarter of by technology Negative and to $X.XX and year incident. costs related principally

which to on declined in rates and to to current revenue in EPS based $X.XXX This for negative reflects growth guidance total, our over between percent be market of billion. is for XXXX, to year X% year revenue expected and Our revenue is than growth previous XXXX. Equifax slightly unchanged full are In guidance. be revenue high-single assumes expect total This FX guidance. to XXXX previous the Equifax X% we continue mortgage our from better $X.XXX X%. volumes digit

adjusted be from our guidance. $X expect XXXX. per is EPS $X.XX to share We and continue be in FX negative to to to between EPS April $X.XX share expected per unchanged approximately

of FX guidance. it be in will adjusted to believe likely we lower middle expectations, Given from EPS change our the is more the original our end substantial in we

XQ excluding looking and perspective, historically XQ XXXX, have in years, EPS the our sequentially five at last flat. been For about adjusted

investigations costs and in represents incur fees legal in XXXX costs governmental and approximately and in and of in million million approximately $XX estimate. projects prior from incurred Investments address regulatory gross security of specifically This net represents offset million gross professional litigation in claims to data related of expect cybersecurity being incremental for technology proceeds. We million increase $XXX investments technology incident. by $XX to costs $XXX to the XXXX. results to represent XX% insurance This guidance. excluded a cost regulatory our costs to gross these XQ XQ are of estimates expected levels data fines amounts just or over These litigation of costs. or investigations expect and incurred result the from not In and XXXX, other XQ from security we cybersecurity in and financial include damages, may the resolution related that any exceed to either non-GAAP XXXX of our these These being do estimates the incident. are

relative half strong year provide to first to XXXX, a start very our Our guidance. results full

from with has Before player done he I open Thanks operating Dodge's that will the past tremendous well-earned want we which me the period. professionals turning and it for is over industry, call earnings over thank for up Jeff to And a enjoy the operator, to operator, IR decisions entire a retirement. in last Equifax, was strategic and Equifax also as him this it questions. that over standard job he by critical our the He is and XX-plus are with the team, Equifax in measured years.

Operator

Thank you.

ahead. go now Please next from George our of question will Cowen. We take Mihalos

George Mihalos

also easier USIS to in the gentlemen. USIS bit XQ, the and that in can momentum and the reiteration And be is the it's of growth know John, it XQ from I in about a morning, exactly there. comparison little in contribution hear Great. you DataX segment? going the the Good included steady? to cadence what good USIS be be will a will about And bit guidance relatively is talk maybe XQ.

John W. Gamble, Jr.

The expect of is as DataX not question. needless indicated, growth really contribution to those company small third year. type by obviously cadence to for George. periods and growth contribution have the large. from for as terms going say, the we the and as be growth specific small. Thanks in The to quarter, quite isn't of We're Yeah, very Mark but well relatively is the in fourth

George Mihalos

have could about coming of decision kind ones quick to stay Mark, into And and the saw if of sort business, And great. a and as XQ? to to terms advertising talk terms XQ? now GCS the relates that XQ just local to that may, improve of in in that the Europe, in the minus I you of one then spend. just committed bottom back growth positive hit two start currency in upon that turn market direct Okay, if we then it little that we in bit Does

Mark W. Begor

business is I'll to we Sure. and think on GCS dealing Europe that's with important the us, with On can a consumers. GCS, start John start one. this maybe

good that us consumers way that of a with this dealing strategy. had that Equifax have the breach when the It's we meetings We've can think going in the business as and with interactions had bureau we think we've and credit back been investors year. front calls that isn't lot we our to not and are with. of a one working we primary it's value-added the that later nice continue with and others, George, focus, a consistent into we're business prior have on advertising we'll some is prior one to but that's a doing selling side. for our business And a We that start in they products our our

John W. Gamble, Jr.

Yeah.

in you the and of basically management and to I to see business third right, know, we as expect around business the to growth in do quarter fourth we expect management that terms debt in return In debt improvements discussion Europe, some the see is mean, the quarter.

both be that effects for positive – those should very So Europe.

George Mihalos

Thanks, guys.

Operator

Please go question now ahead. Patnaik from take will We of our Manav next Barclays.

Gregory Bardi

year actually if now or you on for in and calling the wanted place, has you're areas thinking on color this lines CISO about in going Hi, the of the how emphasis changed along additional see buckets that And cybersecurity next Greg could investments also versus this in IT focus year. on that investments? Manav. those any to of of the any what's have CTO the I and I the get into is just phasing terms

Mark W. Begor

Yes, good question, Greg.

million do I security IT. is that that that the $XX between we're and we million First, this guidance forecast for The I broadly. $XX think, the bulk John, of gave taking by as spend our did, you to expect up year of

think to or from strategy. it looks but And do fourth of our year, weeks. again to on of make from IBM, for as either quarter, in regards get next or later he's this into significant not How any and XXXX, some some as in fourth the With him spend for to year. new CTO forecast. experience we really deep year. Bryson, result him spend our our cloud joining, don't only it been level ground He's we're of We as to expect going and expect got part well changes three refinements we're to going probably private to a public it. legacy around like around goal sizable I as clear but that's as to any third others is give we what Beyond spend indications next a give our that expect the we've you far to be versus our ready that been we have in what real the quarter visibility – quarter, will to as the investment

he's help also tweaking, there So call we it, think going some to be to you to very He's for positive that. enhance plan. will which our product be a us and want us oriented, may if

in three, the in the, you shaped we'll to have, months -as be will share with that the impact that five bigger his think year. he be ready call gets we that I the, in next later plan it and four,

Gregory Bardi

sense. makes That Okay.

versus I from how you think turn faster a areas and any it about USIS, are there and think you of the about if that some on are about perspective, going think spigot larger customers should vertical having of to talked Maybe terms starting forward? the In we are conversations that slower there. the we

Mark W. Begor

any was would had in fourth I different. guess tough. it's that hard any the really about call quarter we back April, said, think look, be When to verticals we

regards to confidence we May when to continued and quarter very in July. June April, we some plans trust felt and into with to security some First was getting we're into talked some momentum as and wanting back positiveness. giving and customers That there tough understand us our and

teams a security five hand still that risk Equifax They grow. would just it's be where it's – see like, quite we have, everywhere to that, to ongoing I I teams, on data, think I've operations. gotten handful, less data And we've in bring help our meaning can than our got customers From getting our of tried value their around back of some front fingers tensions my less back my the what others is want really, normal we that real message And them more us. mode with getting And it's is their which for than marketing value vast rest the that tried I characterize I small can around a The of differentiated of indicate, majority coming our are perspective, how more that with just back collaboration NPIs just quite is mode normal of we're to back plans. now is them, energized the operations. getting can't, kind of that focus just to to we in I'm in. consistent Paulino that assets valued.

and laser leader, to experienced leader, he's others know, a the he's on I the going know are an call leader, and You aggressive focused. commercial an team he be and he's and

mode month we this on week next will last couple the back we as progress rest see into go be ourselves rest and year growth been have We through months USIS. the of of and normal expect in week year. to year, that to for of by we by month And the for getting really

Gregory Bardi

Thanks right. and Jeff. All to congrats

Operator

Thank you.

from We Blair. Please go William Tim ahead. will next our now McHugh question of take

Tim J. McHugh

you. Thank

about seeing back competitors you would where Or majority months basically aggressive, I not just you're of being further environment the ago. or still that to a three all? the processing? discussions description? is is case, of you And you with you them guess, better. back Have coming intensify six an at still guess. it's know gotten is talked I Or that secondly, to I business, the kind to it have described First, similar seen more I guess, Is the as Online customers. it said disruption what change move to the then a vast fair you

Mark W. Begor

a and since is. We versus kind fall of competitive then. incident competitors. together, Yeah. And competitive was Tim, it's good a Look, competitive dozens XPrinciple it's operate (XX:XX) the space last it They before it's of other space, tie security every and question.

And that so continue you is to and point it think will I out be.

be to lost maintaining nine too. happened and September to That months. incident any in Online question business. going your be certainly more sure, We're I'm of last all them we're characterize to try related batch, they new related the that Online We're part, going about past would it competitors, Our I would aggressive probably advantage on something said aggressive and September them been we in aggressive, really what to environment be wasn't to going you lot getting in of numbers being our of some to competitive us about We've our that the U.S. take our versus that And September. to batch some changes normal versus been business. the the about back and has for and live There's most we really no share and the focused impressive and that. up NPI that laser in clear impacted batch question go some as believe, that, put stuff. of expect so. in that of a of about we And we year us, taking competitors third stuff. and know the our from to We're do of have second the half into in the share getting quarter product our July new

John W. Gamble, Jr.

about of right, NPI with it drives NPI, a Online. And talked we as lot before,

when Online it certainly does revenue, you're absolutely. does, asking So, it impact

batch, both across impacted absolutely. to been fact sell, in we have been said. there's So, impeded our as we that were by the impacts ability the board, Online,

Mark W. Begor

an last team, our night our got from from U.S. moved way there in is And active But – was competitors. Tim, of I our other a – with commercial point obviously, this, And positive about a that one verbal just some competing. one customers world. to business us of we're one want out to that

So the on continue, And winning the see happening, its those put rest we're the put all to effort expect is, we things – year. I time. there going happen on continue I'm of meaning in and the is and leadership that it with it through focus Paulino's kind under out as of go to to news the But, particularly the marketplace. to good

Tim J. McHugh

just sooner? more you is about magnitude, the secondly, of just have would than Okay, what or the, should great. guess, trying the it increase before? said proving And then guess achieve to Are expensive be I technology, you to you're the think trying done that on are spending to get increasing guess, spending? it you I I I we guess, to how

John W. Gamble, Jr.

level process So, necessary initial when we would March, of guidance resources gave it Yeah. we us ramp in at the the I exact trying we ramp the And about pace, to think resources you the to. that at in of were the time, committed clear. that as honestly completely pace right? which that back could to wasn't – the that deliver we for quite changes

go more completion quicker, we what when could extent I pace back So, gave that is, the March, to think go quicker, I we And of initially, I think found what are. little that's would. think, And guidance we you're our in we we we said is to so faster. the since we ramp can effectively, a seeing, able we've been

Tim J. McHugh

great. you. Okay, Thank

Mark W. Begor

Thanks, Tim.

Operator

our take SunTrust. Jeffrey from go now question ahead. will of Andrew We Please next

Andrew Jeffrey

fill question. and the are growing and to receptivity, technology taking morning, commentary competition, having I relations Mark, improve the it new which there's as reaccelerate right USIS, your offerings, is a to in in NPI? continuing solutions given to Or and point? ramping growth you technology or know current be should expected the consumer guess Hey, Appreciate motion know, meaningfully at selling might your is customer you you been otherwise and potential the I customer, need the – and, new with regard improving recognizing the guys. matter should you there you good think about now just XXX view, the the that right do gaps the to of you about as have of days confident might solutions say aggressiveness in this

Mark W. Begor

a it's question, Andrew. Yeah, great

more my being energized position. our lot that's lot I I and I I frankly to a plus assets I our covered point I – think now be believe, our now differentiated. ground. months spoke more XX our from data time about data even and is where know get role view the customers, that market I and I'm And I this a more hear from into was last customers' days three we maybe was

very So good that's thing. a

being Second NPI technology, products, is, a they DNA resources view our also. real our our cadence, our as asset

real that So and as advantage I that. about a view excited I'm

to we've also to us up our been ability to get market. we've opportunities think I clear speed got some technology that to products allow

are of that the five and some will not, that's making we competitors, doing made data first we're primary into about one next security relationship back with yesterday breach. my there. year even that of there and investments us that that years. They forward. with the Equifax. new believe, as with last things, to we And strong sense the relationships has for paused, over months to great did is customer now. just was we're now it, you years, I this They they or are last in investments is through us were Those XX customers but one roll And with six I the year be the supportive part races. as we're there's a the that, we allow our And commercial it. differentiated, – the there's without very will go been more we went Our And want key customers if

you for and that are when a me week. growth So, gives I'm performing and deliver that went a ago confidence, well. that business And I of and a with about look saw there I to frankly the along night year agreeing him operate, than that up. great and security commercial and discussions was And is our into I'm energized me really back. shareholders. if Paulino about it back you really was gives we really a with and to confidence months of charged mode USIS, gives later, team. our get the been lead team, I going that had step him on to other last and role he it dozens don't to to assets, how we top had, long remind on Many want go that and to some did get you you commercial back data to more And two breach, I our I the and we're energized of that that I've add We'll the list back saw of the business dinner confidence had used obviously, at he's well. his putting very weeks data things with the leadership dozens with market, look with they and infrastructure, pressure and literally that future XX you, he I in. at and team you're with need energy me the

So, a very your to good long one. answer question, is which a

Andrew Jeffrey

I if may And a with just Okay. one. quick follow-up

terms my in specific example Ignite, I edification, changes or that of an the Cambrian's me, of that meat specific of just could a the value function when framework, maybe proposition, guess, guess. for for put little on I bone own technology proposition value think as Cambrian, the, I a a Just vertical or Ignite, about sort just a of example you where

little about we can more So think clearly. a it

Mark W. Begor

customer with to a allowing be ran really give teams analytics, Andrew, how It quicker kind and their to them. Ignite and and to us data having test it I access a specific sticky customers a And of is and us I is just allows data to access incredibly Ignite them But valuable. generality. customer, customer. give know by embedded remember, years, just faster in better data fashion, is access know have makes with them. this from will was I in to I getting makes and Synchrony for so them tool things have analytics work to allows so nine a our might our us easier valuable. our more used. risk their how to I model It And example. team their you data able John just our into co-collaborate perspective. to and with By valuable model data to experiment, a to to more broad

collaboration our the that commercial you step incredibly marketplace that be you another John, an as So that? know, it's in that think we is change valuable integration close with to add, with in going to customers. our Would customers deploying tool just we're actively and

John W. Gamble, Jr.

their add, Direct, data Only customers can contribute very complete we're own Ignite thing also our I'd with their obviously, scientists data...

Mark W. Begor

Correct.

John W. Gamble, Jr.

and users opposed take with within run work. analytics Jeffrey, this to broader you that products can use faster our market right? Ignite So (XX:XX:XX)Technology And those to we're do to NeuroDecisioning allows third-party and (sic) said, our get a like the is use you allow market requiring app, it deliver business understand more technology as exist know would customers relationships of that data we to faster. will more And their where to [NeuroDecision] against app, can the an ...can business to products I look those and us as our making Mark simply, with Marketplace investments customers. a know generate data scientist an

solution So Direct and Cambrian, and we in a very Marketplace think Ignite we be think can we well. great we have

Andrew Jeffrey

you. Thank

Operator

from We Bank next Ridley-Lane Please take of will of go our now ahead. Merrill question Lynch. David America

David E. Ridley-Lane

Sure. Good morning.

just investors, that set level strategic expectations levels, quarter? pre-breach to return like of you on U.S. business, marketing the the with would to spend kind direct expect single-digit of be that it fourth consumer to Heard know, marketing you your So, restart for spending sounds to continue decision the the in help that you'll quarter. per to in million

Mark W. Begor

– in I or consistent performance you it's know, – is been to we business but into actually and this on a we that our stage, not, those walk give characterize about be as in. entry what quarter that what fourth want the their we're I to way still those we our been use view Yes, typically then of as I've at It's I a guidance forecast that think would this talked the as to going would inside and this say we're we you. we've it. don't boundary finalizing going And about we on whether make consistent business We've difficult plans. some we and that, to David, then and that number levels the never decisions but of at do in out measured at look given be is our big competitors, we're XXXX we're to be as a of everything as we'll kind that going as

John W. Gamble, Jr.

since see to Yeah. fourth Mark in as really the just you And said, to expect we're shouldn't large, it quarter, do just anything right. starting

Mark W. Begor

Yeah.

John W. Gamble, Jr.

all at This ramped we've Again, It's investment. trying a business slowly. we're and that something looking large re-entry either. is do really doesn't XXXX here. a have that is in a business not perspective people to large large into we're give in relatively weren't We XXXX small that

David E. Ridley-Lane

And I'll of or Will and take second you understand these, another in you're start XXXX benefits some the costs up could terms work but fully you see in XXXX? the head you but to approach you XXXX? count from don't will savings to the cost be up if question ramped IT XXXX, staffing simplifications potentially, know spending doing move into as down of that security ongoing in be those in from about plans and I costs. on and And half those

Mark W. Begor

some of at new happening worked will bringing just did. hires. level. fully first It's I in And looking CISO to like we but it's of Jamil, talent He's happen. already staffed, couple Bryson staffing our a at staffing that to of speak. a it's think about be is I our Yeah, difficult as question of kind kind know – is goal on half the your full getting forecast

that share question be private those yes, allow revenue with predict Bryson to just our that our using we into expect we're that to that. some and to as of view redundant cloud, finish in to those a be as improve fourth the we we to the that now accelerate I to latter we going with base, time year, you growth cost products and out, speed kind us appropriate as the and to on once both investments too public simplify With clear, through rate to these and between systems you to market. increase And structure of growth, should making are to our we have my regards structure goal point of our and, or clear they has we've them either But efficiencies are the will you. XXXX, our work revenue run deliver out of been quarter the with we'll complete. regards get the get first And goal that is So plans cost those, team to the parts with which think as share ground, do to as year. define significant to these early investments is along to IT our at from

David E. Ridley-Lane

Thank you very much.

Mark W. Begor

Thanks.

Operator

our We of will Tong Sachs. ahead, Goldman go now sir. from take George next question Please

Allison Chou

Workforce from? Chou Allison trends the Hi, good improvement George. the is in in seeing morning. to Could year you speak margin and Solutions to This where of on for post half the back Services breach Employer you're come expect and particularly you

John W. Gamble, Jr.

Yes.

of So kind tax that's I business I ACA side the a we year I our UC there. our lot of terms bit A the mean, well as principally weakness of around unemployment, the again, the the driven think of well and this right. going obviously in unemployment in as chronicled on ACA on what's claims, just, about you're services first in it's by is being business. think seeing in half insurance what script, in talked

to manage deliver board business expecting provide services as that expecting go what somewhat and business. them some I the to think services, and through help we're to that In our it's improvement, our some us growth to services and By we improvement. of half. employees we we're of business growth bit I the those stabilizing to customers we're starting of a employee go employee allow employees, are we the So, I-X bit our is this as see think see of see in see to little expecting our there rest businesses we're back some a believe we little their year through to onboarding that should in and

should the Margins year. down business, believe we we're sub-segment. margins in we Workforce growth bit the that of we So expect see a saw we total the half. margins by see to – don't as little Solution first give through you the and in this go to be in some starting behind us business, Again, declines rest

said the the is substantial specifically security sales, investments related because well doing made, we that that and to as marketing as business think to very, decision very I more we well. add

margins seeing margin as It's you're the go that see continues as a what and think I see from of flatten growth somewhat far, as Verifier at So the is increase right variable you levels and business the business employers so through that high we're And now. and growth you'll grows. we escalates expecting very seen therefore year. gross out, you've we're

Allison Chou

XXXX you mid-XXs you in Great. areas that you can you've the NPI any with businesses on which and terms competitive product And give of of level changes to from to and XXXX? maybe going in seen forward, whether ramp and customers, color generation and expect focus NPI most more collaboration expect benefit meaningfully there,

Mark W. Begor

with on Allison, and and north that had, our meaning we the IT at like we've good around with of we're pace Equifax. up resources products its both that, focus at NPI we've see done a that it bureau core still the And really course working big job U.S. with working call of credit at tend USIS we've you to in pace and is NPI the the processes our pleased our talk we about I and the today or and think around the talked Yes, data engine travel protect worked don't for actually I Equifax. priority a there. I still getting consistent talked we see that attractive trends a sure of years, lot or any been we've in Equifax competitive This make quite of engine for regards that, us. impacts feels a and ramping globally. we've a strong muscle has our different kind NPI think NPI we're really and that calls don't hard about for to to security It's as prior investments, and kind is I'm of on

forward. one levers will going focused of – of our of people it be our have lot and on been We growth it. It's has one a it

So it's clearly priority. a

Allison Chou

right, All great.

John W. Gamble, Jr.

look at at strong you – has very been If too. International NPI

at work to continue it. very they and on historically, well So performed International's NPI.

Allison Chou

Great, Okay. thanks, guys.

Operator

of next from Brett now question our will take Huff We Stephens.

Brett Huff

taking thanks for the morning and question, Good guys.

Mark W. Begor

Hey, Brett.

Brett Huff

been And It's Two to with questions Jeff, good you. me. congratulations you. from working

current be. mentioned mention, ongoing overall the EBITDA math take that for the multiply margin do ballpark of will it the said be? a reasonably half if this, things you Is ongoing investment And what you and sure year-over-year that less. if we that us that know – continue? we just like you the declines the company parsing the just out times I good investments On XXXX trying the of addition the decline from you what I that. versus that John, due that and ongoing will that in is I I'm security revenue, does the or and of to on about ongoing to right the not margin cost think magnitude make that half kind more will, I'm base expect you're about be that base think, should question. think are, asking excluding to to But may an to what was I'm one-timers way give

John W. Gamble, Jr.

investments that free we product guidance maybe see in you'd in a – the for Well, Alert we insurance, pace number, number. share technology, it on that getting did & about of and year, not indicated that And for at of from exactly. we're but security, back another $X.XX we're it's Lock pace initially right? full type way, on kind When much pretty – for right? type there'll But of March, be

those So of I the looking types about at this should we're you look like what that's as way ongoing think costs think year.

Brett Huff

you does processes new terms sounds of It getting growth for to two closer to to particularly helpful. the want into moving the on reaccelerating reasons. rank it's you a versus of Wondering, to do customer. in your things? second getting Okay, bit the that you there's of how has variety working or to acceleration some mentioned business, closer competitors about question, think talked those of all the customers to around closer or put the better a about customers NPI? little in And a getting on terms you focus and in NPI relative the also been growth your USIS reaccelerate, your money like How

Mark W. Begor

been has Well, for are they Brett, NPI, muscle a time. perspective, both from of Equifax important. a strong long my The

So, processes that's think rigorous organized. collaborate We place place. it's and I with customers. We've very well got in in

it So resources we sure doesn't we're and IT to that, we manage, trying try that to so thing one's our down manage the transformation. slow we're year make working to dedicated this doing and security when keep what is the

The that's customer is obviously closer really – an that's to really happening. one quite it's So, And the that driving. one I'm logical. initiative

engage more to If products. in discussions, to closer your them to going able show customers, to to you're you're be able commercial going you're be new

DNA. help And a really That's want team You're grow. going to how be probably able I it's my twofold. I to data to our One, show to close customers. as leader. them them be lead new to analytics business it's

I turned And my and operations data call of months I'm that that's And There there And the and that really teams. analytics September, data customers. of in time has that it's a three our field breach by the half it's with with teams and with externally, leading spending, quite landed, mode it natural, been key part the in of our go being I've to NPI my ramping of would together. the up. want to business natural. I'm to lot And the inside kind putting I just be focus been it. it And ago from be. priority, I I where say on of. and would want regards security a wasn't last of I'm a which think Equifax close is with more just organization was customers chair, emphasis client call it inward, work I when to way. somewhat always what following done

Brett Huff

what something of similar, think between a do have group, one the data? what Okay. analytics in base about is the analytics, question Cambrian, the of in? you analytics That's all the looking data the is it way kind they offer? and in of Or see us Is and product. offer a simple or that it then maybe there you outside differentiation just flexible to most from How on that is smaller Ignite – customers and kind your

John W. Gamble, Jr.

technology I outside we about data differentiated it's think we've terms think helps differentiation Number, think think assets an differentiate we is offer. assets terms the think bear that in talked So data Yeah, we now Work outstanding in as credit it's we terms NCTUE, really think modern. We we have obviously bring in of incredibly I to mentioned, The is DataX, platform, we Mark have So what that we very the believe consistently. bring assets, of what data right? of It's right? beyond we The in we what and flexible.

happy [NeuroDecision] learning extremely where activity to learning NeuroDecisioning (sic) it. It's a remember the and right? we're other patent actually through codes. machine critical with (XX:XX:XX), do pending can that So that's And we also machine thing is we can reason determine

the to codes. that can so can because we machine in that determine production algorithms customers use learning And use can and we determine reason they sell to algorithm

are of all reasons give are Those things, with what our theirs. I'm sure like extremely those think, product a strong. the us that's we reasons they have like So, competitors ours.

Brett Huff

Great. time, guys. the That's helpful. really Appreciate

Operator

you. Thank

We ahead. will from now Steinerman take Please our Andrew of question JPMorgan. next go

Andrew Charles Steinerman

any more I any you growth us the easier staying growth the color USIS? Are quarter obviously. on revenue able your mode Is I around and give said the know Mark. give into in that in fourth there returning specific you to confidence you see third quarter? organic to USIS to activity, me for returning dynamic Hi, and more on normal the could growth more of commercial comp.

Mark W. Begor

or clear Paulino, the I'm the I'll be to from I've It's going four the Yeah. that is laser. maybe a time there. priority. – team said – like attractive. we our that five crystal this will our ways call think It's been one addition lot in of of is team start quite different and focus spending biggest is on,

there. then resources giving it's And – really I'm focus are my team the perspectives. of the perspectives So, and and kind

night. where said, with gives when last and activity, dinner And and had that last we week commercial We confidence. I with the with I'm through week growth you we're then last discussion back a them pipelines we dialog, customers going I'm had ready team get building last out into me – As When with I see when detailed pipelines. of to customers, yesterday, a and they Friday, earlier mode. meeting them, the when a hear are just have

their it and your grow. and want want challenges needs. You Work they're meaning them, access DataX. Equifax They with been They unique access They growth got own they of growth we've They to Number. think They've business customer the for for want about use we're of data. levers to doing our to to they've because them. one want got use partner, an want growth The Ignite, to

deals building, we revenue, the but the already we're to in be next as – happen converting mode through I've those to the the that's go the as quarter not year. And got growth of mode. feels going that tomorrow building to is wind be going into positive. we – week, back lot rest of the something a behind and that going we're in team. some on to I still as to in which a It's like confidence think sails, So, time. take there's that's with going or pipeline the kind our of we're It It's getting to third focused go and

Andrew Charles Steinerman

you. Okay. Thank

Mark W. Begor

Andrew. Thanks,

Operator

Thank you.

next our Baird. from take will of go Meuler We ahead. now Please question Jeff

Jeffrey P. Meuler

Yeah, growthy auto anything thanks. on and accelerating. a product you well. I growth Verifier but not any on Jeff congrats else as calling the hear the market growth of the to records I new good really and driving to big growth leg the market you're going good overly is any mortgage first on that's refinement, Verifier, question like just a down, rate And with sort thank and guess the from it relative me end go-to-market other market? is to you growth, really

John W. Gamble, Jr.

are the they overall, to of on Look, for an have period they continuing time. extended execute strategies

the expanded makes even that obviously allow we're referenced, now started markets But talked products base attractive you record extend, information nice a application revenue each NPI. more done of specific get to us at record need the makes Work structured growing that As of to allow information, as to also that where selling also markets just their then into individual current entire about to provide lower us for in don't information more the job may it's record, on process. we valuable that they them that as – markets be to They've new they the growth but valuable the If, the attractive. So, verticals. and Number a they've continue the it drive example, drives more a focused offering not and to historical current the we've right? the decisioning They're in products subset to case, price as themselves. be of end can records – they use but

So, they've and just selling. broadened more what have we can been sell effective in

they've a So nice done job.

Jeffrey P. Meuler

Okay, great.

Mark W. Begor

still go are lot then and the lot we a of year and how because opportunities, through the us, as here. rest just growth as of There is into at innings, of this in a future. workforce in more out, exciting view about for you, a creativity can deliver potential use a justice view been my (XX:XX:XX). from say, be Jeff, we perspective, penetration Number the bring verticals, pointed for as we spaces, how cases it. is the give we and here. around business. government of This kind John business there's early as This we're that with The least new early We verification. innings engine it since And dialoguing probably auto, And as I don't Work can more very I really I've enough new used, a good of in

Jeffrey P. Meuler

outcomes that tertiary, us getting security, the you're customers give factor, sensitivity go you one is ongoing And if the Is that of where it comfortable the less? the of customers from you. with any working headwind? or et the data of those a risk through with them Like risk still second, conversations revenue would Okay. more? to any kind or consolidated sizing can primary then, Is to zone from secondary X% it thank Just – your potential in cetera?

Mark W. Begor

hard it's Yeah, to size.

it's few. off, very First

with that they characterized couple on hand. want is, I'd and a them than described there We're our basis. The We growing you, The right them something are couple. we're mode the happening work we're in we're dialog vast, them but really behind making, and see sure, biweekly, of day like, progress and I vast, showing to now. see just open that's discussions discussions a five more efforts. it the vast couple customers, position on data of weekly going anticipate And on progress our They to our majority is is with us. on our We my working the the kind on. more with understand we're changing a kind that. as, to I with less us transparent plans. our what be to of think aren't happening that every to of want you them work don't and normal not dialoguing trying with security move fingers customers of They got in. spending NPI We're people them. them what meaning happening, believe bringing that's make we plans. security I'm They

that is are products, sets, out customer agreements place to quite of executing normal the in discussions into testing putting our confidence data dialogs us roll products, testing where So, are. and majority new vast that's we're And their the in strong.

John W. Gamble, Jr.

but number customers even be in And that The with any this diverse have that generally you revenue, would geography. is customers base no is we – are X% really extremely large up very know have that don't of near small, our customer moving we and and right.

Mark W. Begor

point. Good Yeah.

Jeffrey P. Meuler

you. Okay, thank

Operator

you. Thank

now Wells Bill ahead. our Please Fargo. take question from go will next of We Warmington

William A. Warmington

morning, everyone. Good

Mark W. Begor

Bill. Bill. Hey,

William A. Warmington

setting and longest first, roll record Jeff So congratulations new a to shout drum pre-retirement. the on for out Dodge

Mark W. Begor

done! Well

William A. Warmington

and the do like sequential in revenue return is historical sounds and we that see you in to can the we'll it levels? see trends, USIS, think margins momentum So to and when the improving start

Mark W. Begor

Do margins to is margin return will that John? you levels? question, question take to Bill's want when historical

John W. Gamble, Jr.

Yeah.

haven't long-term So, a really right. done Bill, we model,

make model about we'll here, there. mean determination think move that's as is we're as be I so if I and when talk to the just a vindicated ready So but forward we'll we question again, not the – basically to we're long-term

So...

Mark W. Begor

think, we've to clarity more and call around that. the We're of I some last do and goal the We spend some have to USIS conversations, year. clarity discussions more the trying technology some in Bill, that legal in want is end our clear before also do clarity around other IT. been our and and the And, then our investment security more around data and trajectory in to

William A. Warmington

is second the And have a smaller – DataX final since then the question, know guys my that's the I acquisition deal. The done breach September. it that first but and last you acquisition,

a that in guys back market? the So are one-off M&A you is or

Mark W. Begor

actually don't Is We and in we've then in Yeah, a three mentioned America Latin couple if I and one know did four. is I one DataX, that... number Bill. comments, done this my as Workforce in or

John W. Gamble, Jr.

done I five. or we've Yeah. think four

Mark W. Begor

thing four tried want these that so Bill, was bolt-ons turned have we've that in team got meaning been about be And turned Okay, on comments, done to the other But my you never five. or the I machine our is off. out way, there. tuck-ins. it And M&A is clear to and we If characterize

meetings going for more of looking have meet I'm guy. something our going and on can bolt-on for with type that clear business. the I've these me, do to M&A, the where we're it. be marketplace. that's works to prior monthly that in to team we been on DataX all works that team discussions a I And acquisitions the the We bolt-on we're time, in

in is us an believe, platform was a near or we another attractive either gave And is That foresee those. capabilities very where I for a Australia same Looking real have to future, turn great for at for for position of really importantly acquisition don't to example assets or that in time, going out, and look us. Veda acquisitions a I a our us. product data but we priority can the be

those at, we're know, that are things too. You looking

on. So the M&A machine is

William A. Warmington

Well, very right. All you thank much.

Mark W. Begor

Thanks, Bill.

Operator

Thank you.

from go Shlomo Stifel. We take will ahead. next now Please of question Rosenbaum our

Shlomo H. Rosenbaum

here. position Hi, know terms this of ability model certain back amount with the a terms is thank the days, of more me that a growth. you after a I anything term ask more through term the yet, being terms industry? over dive from you XXX just historically, to clients that I generate here mean you in the – got, I looking leadership longer or anything that Equifax your you, you're within over of you with says growth changes company haven't that first you've position with you a to leadership had is operated but seeing that in that a longer leader of of time in that for within get taking you're can't deep way that out terms there anything seeing the or come you're in cycle, or after there squeezing there assets data either at? of to breach the are anticipating Equifax in want position else have, the of Is

Mark W. Begor

Yeah. It's question. a great

are prior I there of post bringing looking I perhaps like attractive for United think forward. those here the They're if intact. meaning going lot performed step Those I just a you at look And breach. And Workforce for extremely breach. markets Equifax, innings, I look the we're opportunities Canada, as would our look the well a and to Australia. UK other mentioned Solutions States. and at as to the in well earlier back franchises characterize that And is Workforce really being early and at couple Workforce of Workforce International strong businesses performing they and Equifax at

back a take and and talked change assets. as that in and took real We've differentiated customer you and to new to quarter those no ability XX change of in a products bring our security obviously today. times that. it's no on year, multiple quite So, we in months my go confidence well – expectation marketplace last USIS, performing second the ago there's our was There's literally breach, that to about this trust USIS but we dent call, result on

our model, to to you been to to I has has leading when pointed investments investments to deliver to long-term that's table data infrastructure And reliable our positive that moving get into private when we prior in the information but but don't When going careful are going more us. and our We're us to there, public are and out that's partner I'm about to stakes. we in positive Now, want we're differentiation move going be be because today, we security, of get customers, a in to market cloud, going quicker, think the future. data to making industry we the deliver the forward. data a to an in a have positive a to have versions either technology investments in question, be products it be our when you we're go five running efficiencies or of something our one, kind

So, more going spend money to on we're security.

years. to strong when to for a the out. and the customers, the technology has our when very the this be the very us, XXXX, we're the it add you great think making, a do a in energized attractive be I'm Equifax you a to that XXXX, performed But expect into about I many, I for space, to to future is future think about very this our business competitor partner space. many and well extremely combine John underlying in our pointed I business that for future, business that out investment in is get same

Shlomo H. Rosenbaum

to XX very pleasure much give Jeff you want also I out Hey, last great. Dodge. Thank shout working the to over him years. been It's that. a with And to a

Mark W. Begor

they're the outs. shout Jeff, keeping I'm racking up but track,

Operator

any question-and-answer would this remarks. you. additional like Trevor or concludes to to back today's the At for Burns Thank conference I closing time, turn That session.

Trevor Burns

for give questions available Anybody call. any out. be much. their be everybody, and Thank Thanks, very we'll No. another I'll Jeff after has the follow-up and shout you time consistent today,

Mark W. Begor

everybody. Thanks,

Operator

conference. for gentlemen, today's your and Thank you concludes this Ladies participation.

now disconnect. You may

Equifax (EFX) 26 Jul 182018 Q2 Earnings call transcript