EFX - Earnings call transcript Q4 2018

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Operator

Good day and welcome to the Equifax Fourth Quarter 2018 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Trevor Burns, Investor Relations. Please go ahead sir.

Trevor Burns

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

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

manage excludes of effects case and as incurred to interest reconciliation adjusted recognized these This enhance our vesting For data activities, to assets. projects as quarter from losses outstanding to also as resources peso realignment that XXXX included as or depreciation cost will networking consolidate as and our EPS, the infrastructure, net amortization well income technology tax cost systems designed monetary with back our EPS enhance and cybersecurity Argentinean and other and denominated substantially defined related interest to Equifax measures excludes project net were amortization; income realignment of XXXX, with of with monetary other projects cybersecurity and are fees awards our Argentinean and enhance global expected the fees cost and our the technology data net Adjusted systems, as fourth XXXX includes Adjusted EPS in security and projects. internal denominated cost to posted non-GAAP and to and internal activities litigation the the and has to Equifax attributable tables, income, resources the security. in investigations projects well adjusted EBITDA throughout are transform currency replace as government adding to and to acquisition-related implement which for principally the well foreign currency also technology our attributable security our to processes further foreign expense, website. excluding as related net infrastructure expense, assets. costs of and associated incidents, and from data incremental relating income These to and of in earnings legal detailed XXXX the also stock associated XXXX. These tax to the settlement release Equifax remeasuring peso are upon on our remeasuring the losses incident, are occur expense; professional attributable

business. reasonably to estimable measures website yet our with posting deck we better losses incident today, litigation on are from we possible, addition Form supplemental you future not but at the XX-K this in stage In proceedings. will certain to that cybersecurity later regulatory to be website posted XXXX help information Relations filed disclose associated on and our the that the we investigations understand our non-GAAP Investor the on are financial our now In

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

Mark Begor

minutes to on XXXX results transformation, our on Thanks, with and and Trevor. discuss guidance. Good morning morning, move quarter then technology our everyone. I’ll this to discussion few a start strategy, fourth a

currency. constant $XXX the low the million, Revenue range at few X% quarter. This was but inside that ago, guidance. fourth we end – on at that a given in came had months was the you first at of So in which the up

During about XXX the mortgage points XXXX, experienced quarter, market expected. basis the than weaker as down impacted we quarter market I’m well. Versus to by and or we XX% $X a fourth have mortgage guidance inquiries versus approximately a mortgage were growth revenue weaker-than-expected The million. weaker overall $XXX by under been million about challenging just our declines – X% forecast sorry, market U.S.

with. market revenue impact, growth overall we this about pleased mortgage which was X%, Excluding were

in well of share provided a of and million non-recurring presentation regulatory, $XX impacted for the was EPS $X.XX Australia sequential costs to $X another Relations line in one-time and USIS was includes the breakdown it U.S. the and midpoint for growth excluding October. of $X.XX Investor $X.XX business growth executed in guidance. we than impact due the of quarter of to cost the the above fourth a the last million return EWS growth website, $XXX as excluding market, growth growth XXXX, legal In that of technology the EPS Adjusting international third security, the was million. mortgage adjusted our declining $XX action our these our for were lower includes the Total per rate a of benefit, currency a of with market reported Adjusted XX% chart guidance impact late continues revenue on tax grew This Importantly, a costs for quarter Argentinean as for of million of soft a our and share, revenue mode. $X.XX quarter. detailed each share local we’ve of about almost mortgage support, million strong in October the $XXX quarter. as by incremental X% X% for that market. quarterly and and guidance X% consumer the XXXX. per tax we reduction per to and USIS included

on So now comments in the business fourth a quarter. few more units the

impact market. excluding year, last was importantly, of basis X% mentioned, to I X% on USIS point was mortgage As but compared up USIS down the basis XXX revenue reported a the

is Equifax. we’ve slightly up improvement this mortgage of sign continued overall for up business to and return a was a was the us, mode in positive growth Online about and volume XXXX. with a quarter offset X% Telecom extent first introduced grew Services inside was Overall In quarter. our excluding Marketing new down this growth in IXI critical by market. X% since For XXXX. resellers, mortgage mortgage channel decline This and the shift Online the which and market the row a first double-digits as was the mortgage Marketing given of early Solutions market, this the the down Services segments, or quarter in in second and to expected impact. both partially saw double-digits Mortgage segment is we’ve declines. was seen X%, is lesser Commercial products growth time Credit the Financial in we seen CMS as excluding of a about Utilities up

starting see, substantial in we market, declining a XXXX. see continue we’re to absent the in As of recovery USIS, which mortgage impact can you growth expect to in

of terms to U.S. portfolio the base. we’re customers, across customer of back selling In our our

in of with to and XXXX. on of customers to the XXXX, our half sales in As months discussed being part in with commercial the we mode accelerating the given should mid-XXXX prior a we of with cycle, XX improvements calls, those first customers during so benefits early see start substantial second started half six our progress in

into sure its our investments technology with believe growth assets we coupled a joins where XX.X% platforms. Global complexities pace high will of he customers of real unique down Integrated Solutions data margins technology XXXX XXXX. to understanding on customers Payments Sid the and instrumental were of as business mode, advanced is and HSBC I’m Sid management Sid Vertical to of XXXX with growth EBITDA He about Citibank. recovery, a President product data remain accelerate adjusted Sid highest senior existing our dealing a from joined USIS that Markets. energy ago, the technology leveraging continue with new that traditional President Prior leader products. and served as announcement, dealing and to in fourth from analytics joined the with Payments USIS of Global in Payments Payments, saw and week USIS. leader. his given Sid developing We to held at highly payments brings or customers. strategy on return Global new differentiated Singh the to the you our positions and an at us a focus work how levels was intense depth software-led help and development through but in data Global cautious us Group of transform with and in technology deep quarter differentiated

We have are thrilled our Sid leadership team. joining to

partnership up government mortgage strong drive Ex-mortgage, his me or XX%. efforts. closely transition Services across by impacted by revenue grew ago work announcement, you also also, resulted USIS Paulino closely basis the XXX with USIS has strategy, principally Equifax. M&A Paulino up points. priority growth like with EBITDA business XX%, a strong driven quarter back market, in our Sid growth and services. be EWS in in growth and Sid negatively the to the of basis strong to very As strong I management, up verifier strong Employer Services agreed USIS adjusted the to to with and solutions, also healthcare, Solutions, week of would help growth a X%, the which XXX with and XX.X% The the I-X by in and was was in now on have and very overall very talent by a onboarding will saw Both assist that auto. double-digit and in continues decline transition his revenue a debt to impacted quarter the quarter work been EWS XX%. points. personal growth Workforce very margins Verification of driven expansion an their card strong company. in revenue about had entire to Shifting up with in me quarter into a

experience in prior record on The on we added million, data have past the and the any add Total The his approaching records from a when execute monetized. XX than company, and new your five Work laser-focused think indicated contributors over years. are Number to the and identify team with quarter entire quickly acquire assets. records now expand fourth you its as growth. strategy Number more new know data I I before, team quarter are its continues to the Rudy As to Work a team record

to that We potential consistent clearly Equifax in the Australia first in X% be XXXX which consumer local growth of started expect this third Work currency, the but soften on half delivered with than XXXX. and commercial in second down but ongoing the was about lending in was revenue quarter a economic International markets franchise XXXX. half the in XXXX weak basis X% business attractive conditions X%, the continues growth growth future. weak an in the by slower in for really is of weaker up EWS to This with continue big driven to Number September extremely reported in and Argentina.

Our business XXXX. in and high and continued Revenue in was single-digit high Latin in America digits that growth Paraguay, Mexico, growth Argentina constant the local Uruguay. currency fourth early in double-digit Chile, grew headwinds Argentina and currency in by despite the began growth driven quarter, single Ecuador, in

Our strong the franchises XXXX, NPI from of expansion rolled and rollouts benefiting out and XXXX. Latin both in SaaS which we XXXX Ignite and InterConnect America are in

local business and fourth high quarter. European grew currency digits single Our the in between in mid

debt return operations. see our Shifting Canada. to management European European We growth in growth credit expected, single-digit continue fourth high local our started business And in currency the quarter. to to as we to

Canada currency X% digits between products. revenues local project-based customer slightly mid-single revenue currency below in the our expectation fourth the innovation full in new of and focus of quarter, with timing grew local business year quarters. reflecting broad reflecting Our based, Canada’s growth some in our on

the Our and in currency we to markets seen first lending, in in other and in growth of half began from fourth credit particularly XXXX, low the business quarter, consistent grew with in September single-digits consumer mortgage the see Asia-Pacific plus down weakening local Australia. the consumer XX% around

we’re in in XXXX, weakness customer business. expect improvements to markets up Adjusted Australian innovation see commercial line seeing innovative on I focused nicely the margins in John we move excited as EBITDA we and in local Global Australia we Solutions international continued reflecting new credit Consumer collaborative focus quarter While our continue a XX.X% solutions were and with basis team. our specifically and the and to at XX% Asia-Pacific. Europe the on reported business declined in our be into fourth in International revenue about quarter, are our from fourth Global and currency expectations. in growth was

business after $XX Direct Consumer full to suspension our As quarter U.S. into a and almost began throughout GCS U.S. U.S. we’ve that consumer direct to continued XXXX Consumer in $XX of revenue our team fall declined substantial million fourth year. marketing Direct the advertising and million the limited of through and the cybersecurity saw XXXX, business consumers result the revenue down discussed and Dann in U.S. incident. over to $XXX declines million as XX% was his for XXXX. in the fourth quarter of October

we investment in very historical levels, marketing our expectations, subscriber fourth was that growth XXXX. positive the our quarter enter at were lower than sign with we cost While as saw a consistent

business the ID growth single-digit Watchdog GCS include Our quarter double-digit which in growth for high partner and fourth delivered the year.

as in both margins in continue GCS – Watchdog to and in are ID see ramp XX.X% growth beginning revenue we growth in and the of impact the saw Adjusted as the business, our fourth opportunities declined we expected, our internationally. double-digits to expect grow to went marketplace. to EBITDA the partner as U.S. impact quarter nice We to loss into advertising the and continue

expect XXXX and advertising, XXXX as revenue. leverage see partner our in to and benefit in increase of quarter We fourth the early we margins growing GCS

customer I incident which to great year. XXXX for leadership XXXX our like that throughout of had take by year changes a look many cybersecurity the role, The business to on from on and massive impact back clearly of measure. with challenging on worked minute a including we any team we get uncertainty, the fronts, I’d CEO a entered XXXX, into U.S. a on XXXX, positions, Equifax So before including discussion was deal concerns

Our were heels. when we actions clearly competitors aggressive took on our

we’re multi-year security wide technology on You and of were executing we know addressing range a and legal and a matters, transformation. regulatory

we’ve So path growth growth although of we forward our our to proud longer path steps strong in several looking leadership. accomplishments. key and made mode back, back is expected, very our to taking very in traditional market XXXX than I’m to returning

all focus First, we great data security primary across instilling a including Equifax. and of security a made our team for was culture progress, first

and transformation our more technology a deliver We few speeder leader cost technology the cover to committed be much continuing to launched to and in in This this I’ll data a multiyear – are market. security. investment infrastructure market and program our transformational speeder capabilities market have stronger and to industry that leading in products a savings a detail investment minutes. We take data to is invest security will

towards XXXX, files. We free and business, Alert also refined launching operate plans execution regaining lastly, to strides work in steps these the and a dedication a great in protecting now hard normal and and And and two solid made to our go-forward mode. around customers have partners XXXX externally up We massive work without consumers lock with the we consumers’ market cover empowering returning to new years shortly. not our our Equifax we and and the clearly foundation this could positioned We us I’ll USIS our for globe. accomplished internally credit EFX services that are in like more set XX,XXX made to trust leadership. freeze In have commercial we’re do a goals and calling strategy but for employees the and next of XXXX. detail in growth of Lock

that company continue forward looking joining great to is the Equifax a clear this and sound, and of XXXX turn business. the I direction to I comments that April, about strategy So the believe in and true. believe I’ve learned last state joined XXXX. was I let well few I a of the When to as company as me Since was deal

we as place will XXXX return areas. successful levels and of areas priorities EFX strategy launched our we for past. initiatives a that late XXXX These which framework to in EFX delivered our in must the performance arrived the for these to focus exceed sharpen critical what are up the focus strategic blending we However, and in investments there I of in make are new the future. represented strategy we some when In XXXX, calling our

company, To that data part a a company. deliver technology as analytics First, technology our need of Equifax to embed be is products. technologies market-leading technology we

that transformation and the in about our Number convinced and commitment. analytics more massive our differentiate XX we us past culture discuss – they’re cloud of minute our leading this our a the I’ll in do have to months our We our our new our will in allow the and technology and industrial unique are products We to to speed is data to – still progress by will to which market transformation a more assets, technology in this massive detail. two. will when remain do. ease and leader security, lot combining in remain technology accelerate consumed by Being talk data more products the will I work made to central an more customers.

do FinTech, expand. our our their focus embedding customers street, with to sites, to We me, about on and be the customer leader customers to an need this a are how feet three. customers, strength verticals business We Creating this collaborating and technology operate Number starts and we getting Equifax centricity. embracing has our with one that on on the are a calls adding our renewed our to data closer products new leader, on I as people on and partners, how of important more committed culture Ignite that prior talked DNA is like scientist labs and security. they industry this by to in is going

of area drive to leader All through innovation unique a of artificial visualization jointly drive the customers is in down four. partners and Being leveraging the machine customers, new on. assets data be intelligence, and and edge broadly, market To we our an of on with leader, must leading accelerating delivery new our sources. data prioritize must investment are to we’re unique doubling with growth. to platforms these market application This growth, data analytics of the and future. focused collaborate advanced acquisition which on through we critical in Number efforts is learning a products partners, and

NC like Number will summer critical data invest voice and is where services priority. in and and continue support. last This by Improve acquisition centric value-added M&A data organically experience the TWN partnerships. sets differentiated through data providing to have consumer through new we through digital assets We with consumer and five. our like heavily a Plus consumer

We’re and leveraging in XXXX out rolling assets building is leading Bringing experience. strength customer Number innovative will edge services be in beginning customers, six. of our data global our been will Equifax. collaboration our with we always enhance them to new market products that a

delivery. will delivery it execution of critical with strategic that’s do, was imperatives product Making I shareholders on of again. speed and footprint. all be our is and an leveraging on we and our We for global transformation and started our a our returning refocused advantages. six and driving will These growth to Equifax operate. are market To provide leadership. focused Equifax on customers are it refocusing our meeting the these also on cost us are delivery and across strength and This we to products all in substantial initiatives, profitable and and our of succeed XXXX. mode and growth Say It’s to revenue commitments. technology initiatives market how Shifting to each

complete and business EFX project. technology the investment of and is of entire a technology leadership program is is not Equifax technology focus a the transformation is the This history Equifax. Our led program in team. This XXXX largest

XXXX. in investment and half XXXX, our XXXX second security guidance not the would only of we but provided that During through XXXX, and plan technology continue

we security and technology that will spend global we and also capital XXXX a infrastructure. security our incremental runway. XXXX told billion to to below plan and $XXX you this XXXX, you in incremental do spending spent Including provide during Equifax spend in In to an will expect and XXXX, that XXXX. framework be $X.XX plan we’re our to XXXX, today. In and around early year technology XXXX million going XXXX modernize spending our We $XXX XXXX we We million and between continue invest XXXX. the

convinced underpin We Equifax position. us strategy principles move and XXXX differentiate that There’s are we’re this basic into will Equifax that our three market back executing. leading a technology

focus our services in on public possible. providers instances provided to moving or to we – cloud greatest and cloud cloud cloud transportation. network is native This this public First, virtual security generally technology first a in From the includes on cloud legacy public extent This effort clouds by the the our focused using native. mainframe infrastructure. perspective, server and will the private implement private

easily application Second, mean but this critical three. building strategy. on assembled that is concept, we’re going successfully first In cloud if it’s discipline native to interconnected takes and tremendous standard this are services execute services principles. new or the build execute using or isn’t is This a concept, new, we amount Number a but APIs. components be Again, it to not can of it. technology

focus relentless on rationalization. Our

data company on will As is we build our and our we This decommissioning talent. platforms and applications, great centers, operational cost remain Number to. it’s the we long-term four, security the reached robust we’re legacy most ensure important servers. that committed posture for improvements and future, critical data focused

Koehler. top his last from new us Bryson has team six technology XX% of led talent by upgraded about with You’ve heard talk organizations. leadership and Bryson months me market-leading our in over the technology talk team

plans building right tracks IR timelines executed resource to deck our that posted to In website critical transformation. XXXX XXXX. Relations morning, this by we’ve tracks be are five We’ve Investor expected via execute and We’re underpinned the These this detailed these transformation. major for to diagrams team and the technology tracks. we between our

a Here is summary.

data and management. data systems, ingestion, multiple the purpose-built themselves. replaces data data ingestion, fabric our enrichment current for and The and processes cleansing implement data First, governance, common we will a fabric exchanges and matching

For in Number. Work a example, credit exchange U.S. Acro, the

proven virtual on importantly, themselves. can vast and environment Google’s executing the way, in private is that leading Our more take are the data native – advantage in platform Google we built of By Google’s edge being scale, and a Google tools and cloud its fabric its that speed uses Go tooling. scale Cloud using Google

siloed fabric data Our to access many as sources. integration real-time databases conceptually new fabric deliver across our will This we today. many opposed data that have will data and the single be data repository one seamless unique

available Google As and of first exchange I have TWN we’ll with is out. first the to including running for parallel half data XXXX. place of EWS cloud fabric in Several as IXI, indicated, half XXXX, data the insights NCTUE, rolling and our Cloud our the systems fabric our of our multi-data common well exchange credit in as be migrate other already DataX and ACRO in that Ignite U.S. unemployment in We’ll exchanges with and current U.S. end claims, XXXX. EWS the an by in of will

We decommissioning fabric we existing exchanges will the XXXX. in to early migrated begin data that have

global continue U.S. throughout will XXXX. migration this the We data exchanges to and of fabric our

customer cloud. Second, native the in application cloud we services will rebuild public operate or migrate and applications in our them using standard

with initiation data an market-leading, and InterConnect number analytical in which and third-party customers attributes application of one Fortunately, using analytics years Equifax of a is is services Ignite product, this and for that a offers easily data application which allows of with started logic to the global framework. API set modeling. the their own sparkling launch a a Equifax This ago gateway track decisioning, SaaS continue application, of XXXX, in our that is

to these applications migrate cloud virtual the services. private worked utilizing Over to has native cloud a Equifax past year,

in allow app to making to InterConnect. integrating seamlessly machine customers great attribution and production InterConnect We models including progress those Ignite Ignite, in services are on promote driven by into defined learning also

first to we the implementation InterConnect and private a We’re working be in quarter migrate Deployments this XXXX. marketplace of cloud to will are new forward. and Asia-Pacific America. with and going by XXXX. expected is applications all Europe for XXXX fourth in Latin virtual process the regions of same applications U.S., the This Ignite Canada deployed of Direct quarter, later cloud of part Direct was by build In make to first available completed broadly of of be the and to in Ignite quarter in native the end or followed XXXX. in existing InterConnect completed be Ignite

and an of expect Third, we to in customers and these SaaS Ignite InterConnect majority and systems, will Globally, system. Over customers systems to X,XXX to Equifax on to and XXXX, cloud. over cloud migrate interface customers instances the In USIS, Ignite standard migrate XXXX decisioning Equifax expect decisioning the applications. has we legacy Ignite or InterConnect analytical we operating from vast SaaS migrate end XX% XXXX will customers in the support vast the globe. for data them operate and majority systems of with and on of cloud of services place by the each our are end services using customers systems plans customer global Fourth, the migrate standard consumer the by around region of we Similar XXXX. migrating our consumer and application cloud. and public

started several Fortunately, also years we as attractive this ago. is

Renaissance, the in in customer cloud we environment called, migrated quarter that worldwide. are and in for process virtual and Genesis being system in in consumer U.S. Renaissance will in mid-XXXX. Separately, include sales will data services. cloud We consumer support consumer launch of utilizing Canada digital is to deploying new support a force private the fourth Our launched the

significant in to corporate some these of Last, our expect of systems applications ongoing be We deployment all we’ll and throughout to move business XXXX. public SaaS cloud. support services

will already this a well deliver pace we force email Systems sales part quarter of Financial to management and during technology transformation, urgency our the For on we and operate XXXX. new will and second to cloud sales the gives Google progress hope real as early you making be customers. cloud-based the I between Oracle in moving as moved as of our example, applications our will of and sense collaboration XXXX. Equifax and the Gmail XXXX be to its technology are the measurable EWS

diagrams Investor website. these on I provided Relations are As our earlier, referenced tracks deck on of our

have details presentation technology estimates in new John more to you more of details plan to this Bryson to our around execute his plan, some plan technology the we Equifax provide XXXX portion this Koehler cost our XXXX, During the on leader morning. and will provide

executed analytics being leader with are be technology. our actions of consistent All commitment data these a and in to

make time. We’re refresh. this And investment for more want Equifax. one I convinced not a it to transformational a technology clear is that This

our to we forward fourth the We continue as plan efforts strong monthly and XXXX in changing going way basis quarter complete elements we’ll go XXXX how our we serve operate, we in our forward. are a in market, made technology. on the the way customers We the of and way through we steps multi-year

some our on to goals, As more on structure. last driving make strategic and and resource call our resources we our of with customers did and structural to the decision-making closer discussed we changes optimizing align Equifax, focused further within

and recall, closer you one-time an market completed market-facing headquarters and focused element resources we operate headquarters. these the quarter with to teams of of more in may our connection plan In teams our customers. business $XX costs. fourth unit charge G&A and In our August, – activities, with a a to important we from organization fourth having is million. closer our and quarter, move This took optimize we As of how the decision-making to I away realigned in our

sales our more While savings cost resources reinvest margins, we resources to these DNA actions growth. are expected and plan into more to the to drive improve some of

full our to to and our in key new this expected Equifax closer real to Net steps resources to fourth a customers’ of are further product rate We’re growth. innovation. we’re exceed organization Shifting taking our action to and priority This markets. commercial to move million. more engagement, also a I’m moving from strength. run and and drive remains service locations quarter energized about $XX customers embed the DNA year savings

year, solutions. products as provide the as to strength calls, at in and with for new Solutions Work talked funnel new we product have of rate talked XXXX. the We inning, And NPI Recently, on active well in number consistent potential stages growth have Workforce products Solutions is the they reference Equifax. new with XXXX the pipeline their front us run new and database of being introductions Workforce – an over growth resources I about resources second and critical in two NPI Number. launched the launched runway amount cases identified the new was XX focus in a their we XXXX. real to as technology them product use various last we of and and in innovative grow XXX to a protecting new prior around of

consent matching. workflow with consumer an services and Number is allow matching identity more easily have issue consumers they increasingly for most processes the unique and obtain challenging the of for and Identity Work to is enhanced and our customers’ benefits The allowing become our first use need. has data assets to our customers like improving data a

consumer data, help better new online use lending automated The also and second experience and manner. customers verification FinTech provide a digital our lending a lending using and the frictionless customers in superior streamlined case, by decisions providing

to look risk, online controlling Number Work subprime and decisions, our lending meaningful As lending make customers new expand our for to database our consumers and provides FinTech near to while better customers, and customers. benefiting data both

So and now look take guidance. me shift gears let a XXXX at

currency approximately revenue U.S. reflecting billion, X%. growth. basis including revenue will XXXX $X.XXX revenue between mortgage expected the EPS headwind X% expect to to For impact up basis FX and slightly over to USIS market negatively in XXXX, point from $X.XXX will total XXX billion X% negative market impact about XXXX, the points. decline. revenue adjusted or by our just decline the U.S. to of be XXX in revenue about X% growth mortgage assumes This we be

negatively half very we expect International XXXX will about impacted be up the flat mortgage First will will strong revenue X%. growth comparison services approaching from to Verification grow Services, decline slightly. growth growth from and with growth to a more deliver standpoint. strengthen employer XX%. EWS growth by revenue

economy, in being impacted high-single to weakness revenue Australia return the are digit second to of And the will XXXX. we growth markets continued and half Argentinean lastly, growth by half and be expecting in XXXX. flat lending in First GCS

First in that half to to we on expect of the business. will new efforts inside have growth XXXX revenue the half second and based year-over-year marketing decline in that return of we

reflecting $X.XX and per we improvement to EPS X.XX%. currency between share, X.XX% expect XXXX, constant For be of $X.XX adjusted to down about

XXXX. XX margins second, by units. and increased third, growth revenue interest our market XXXX; three-year slightly higher And one, executed Equifax Workforce, basis tax from progress three impacting rate increased more Wrapping We plans dollars operating Offsetting moved nice as details first and $XX of and corporate drive higher about unit as the the investment investments; principal on our of in factors in of of through million, growth EBITDA business to provide in has XXXX points, XXXX margins see XX% about partners. of growth $X costs for our expect XXXX, and expense expanded half and well trust in XXXX. really factors: We completed related are EBITDA increased to EFX John security our business customers the first up. a will number technology a about our and profit a the with guidance, margin midway XXXX plan. significant principally XXXX, back refinancing reflecting mode customers. to transformation led of regaining phase million at we of strong EFX made

direction, have moving we We in to right do. lot are confident we’re of but a that still the know work we

to market in make and investing technology levels analytics, record security. Equifax We’re at a leader data

We’re our me the John. over future turn let ahead. opportunities excited With that, and to about it

John Gamble

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

in can certain and to these release, you order items on Trevor our analysis. mentioned, in the As margin have so we them GAAP We’ve EBITDA adjusted EPS. your provided from calculate items earnings in our details excluded consider results adjusted

quarter, In cover margin, general million. and results Mark corporate items, some our provide $XXX As on overall details, the overall our fourth the additional unit corporate expense was business covered and guidance. I’ll detail the

increased was XQ international, reflects resources, The basis and consumer the both from Lock in adjusted up in XX.X% for EBITDA XQ associated quarter costs up non-recurring nicely with million, unit EBITDA margins cybersecurity internal and with increase million as the margin Adjusted EBITDA costs XXXX. the XQ expense XXX basis general of the grew was from $XX XX the the XXXX, adjusted associated the incident in realignment principally discussed, total Workforce corporate and $XX down to Excluding The reflecting reduced points, increased XXXX. XXXX. cyber items: in margins in launched service Alert, free were points the XQ EBITDA investment adjusted variable to compensation the the decline in margins and margin transformation year-to-year have following and related as as well The increased margins GCS compensation just lower in increases other cost of USIS sequentially. technologies; and three attack; started is the XXXX, I principally saw advertise. and security corporate as business we due cost

our ongoing year-to-date concerning to of recently due the XQ about a as foreign XXXX rate For calculating XQ guidance In issued rate XX.X%. expected achieved Act, The effective the tax about XQ reduction adjusted tax the tax for EPS to be well in indicated in as reflects used XXXX, tax XQ was used effective lower in between XX.X% XX%. XXXX guidance we was benefit share. rate a XXXX. rate catch EPS our up we effective XX% tax rate adjusted the $X.XX October, our Tax The and that benefit the in

adjusted our For be effective in tax and XXXX, XX%. about XQ XXXX we to calendar calculating EPS used year expect rate

was in Our effective adjusted XX.X%. tax XXXX EPS rate for

X% in XXXX. and details impact for Mark XXXX to to all quarter a expected the XXXX, turning is decline mortgage market negative revenue are The guidance: XXXX. better down of in is to expected expected by to and X.X% improve, increase to from be just then perspective are the expect we XQ A and XXXX and increase about about impact down on provided continue X% slightly impacting adjusted by first important guidance negatively be on significant in FX The XXXX, XX%, becoming first $X.XX positive of mortgage on increase under to market EPS XQ about over than and underpinning to the XQ share. XQ XQ XXXX the I’d the to few digits to some and and respectively. X%. half our changes and like just slightly negatively impact just on and total at XXXX in respectively, XQ weak, Equifax one inquiries mid-single revenue provide positive be be approximately in second we getting XQ about X% flat some greatest by U.S. saw will XQ. in expected point. growth Now of in assumptions X% are

fourth growth are and significant, and and X% stay respectively, XQ expected Workforce positively X% the about XXXX, about in XQ half. impact improve QX is USIS, to in The respectively, XQ just by on in then quarter. For in the about weak Australian impacting negatively and over the XQ more in second markets X.X% begin quarter. is fourth credit revenue impact positive and by and X% and negative to X% the about X% through

the and We’re are year. assuming International Argentina’s half growth the in to Australia first economic by year. the continue second XQ with revenue half the in The throughout to begin crisis will about first expected Argentina impact of through abate through in the and X% negatively weak economy then remaining half the weakness

in by we XQ in As million, XQ adjusted expenses million. XXXX, related XQ are quarterly XXXX, we total XXXX timing more as are expected positive market, XXXX impacting reached by over and increase revenue XQ XXXX is gross XQ. of quarterly been by the a conditions, rate and we Argentina to negative profit are constant in mortgage factors and we impacted paid XQ the long-term comp adjusted If impacts half. This profit costs. the the in about In impact currency corporate of additional substantial half about At as by look the results. negatively a to operating million on significantly year U.S. at the principally is primarily and run of The looking technology as than now second have variable period half. increase our and in and reduction expected of X.X% negative Three growth and equity second versus specifically at are are impact and have target ramp these technology of significant are revenue is versus EPS. higher XXXX, of and expenses our average $XX XXXX These the percentage variable full Mark XXXX security this indicated, operating XXXX run revenue the seeing XXXX, $XX X% rate during support Australia revenue. corporate – slightly with actually – guidance XXXX, $XX swing impacts roughly growth. higher year-to-year XQ cost reaching market The incentives XXXX, half comp market below in timing increases factors, for first up impact XXXX, execution Equifax, by respectively points to out positive to also that XXXX. XXXX three transformation. first we revenue

leadership Additionally, did in XXXX, team. a first we not half full executive have of the

first comp equity increases So are of principally in half the XXXX.

the marketing We not believe in XXXX. The expected in to We corporate rate just is discrete total, XXXX slightly of have we our will XXXX through XQ and tax planned million reflects The million. analytics tax the In cost marketing also exit offset quarter XXXX. show by in believe increased completed. relative million growth $XX data XXXX. than first adjusted reduced XXXX as corporate our effective run the actions XXXX as rate XXXX. XXXX in to expenses increases the and our as are benefits partially in performance XXXX levels, quarter result finance, – down in operating we being these the XQ year. investments will do in XXXX is improve staff, in occur of such and be in XXXX is in EPS rate increase U.S. savings in as the and HR. that This $XX we are planned Approximately, at Savings under about cost XQ consumer – will increase received from well as had XXXX relatively was in consumer XX%, stopped and about will XXXX XXXX, the relative move are we spend. Global profit believe XQ million $X million taken down lower be and revenue in down, high actions GCS U.S. $X as year-to-year. increase still $XX each we XXXX, as revenue direct XQ actions to for in performance will

expect $XXX flat the up we revenue $XXX to of of million, growth reflecting just under X%. XXXX, revenue in to XQ currency range For constant million

and FX XXXX, share. X% $X.XX We’re EPS $X.XX impacting revenue to on to factors of impacting share. The a approximately negative XQ expecting and corporate adjusted adjusted adjusted by expenses, by the is on be revenue per negatively cost share. combination EPS actions $XX $X.XX market operating consumer EPS savings are timing about $XX XXXX the global million, profit million, of and $X.XX and impacting about by XQ by a revenue almost

factors in XXXX, incur judgments million in to occur. $XXX to regulatory. expenses, these we as million security not other a actually somewhat are we to These be is include the fourth of As reminder, EPS approximately increased positive is legal $XXX adjusted In XXXX. what in factors, share This diminish does any about and and a year-to-year million in driving expense the well potential outcomes cost as and should and in $XX related non-recurring technology expected they XQ non-recurring or transformation, per as the to quarter. second get quarter the $X.XX decline interest of expect

defined the incremental legal XXXX status and transformation that our year spent non-recurring the In security on you million Mark incremental period. XX-K. I a XXXX. transformation above and spending matters, per calculation, any to security XXXX of in we the to as regulatory $XXX the would expense the and For we spending spending on over and include technology the provided technology total refer capital on perspective

incremental guidance about $XXX was our XXXX million. for spend million, total about XXXX, is For and $XXX the

security not operator, open exclude transformation our Beyond technology XXXX, for adjusted questions. expenses from we we’ll it EPS. up with and will that, non-recurring And

Operator

Instructions] [Operator you. ahead. Thank take our Mihalos from go George Cowen. Please with we’ll first And question

George Mihalos

guys. morning Good Great.

a off good outlook on things to we were higher the is X% which X% just So, kind to of for that what is thinking, kick see. XXXX, than the high-end to little guidance,

with, sort of verticals related marketplace, of hit of what are How kind the that just macro? key mean hit a would you’re seeing shaping given growth I back put you’re sense the changes that mean, of to up the just So suggest would get competitively? you to kind if of is going your you to And end I comfortable you’re historic that, with starting any in things for there. your sort two maybe that the then if X%, rate seeing that out to that? top to How are wanted zero in you target some almost of

Mark Begor

Yes.

jump and here, George, think, John will I it. it’s into Mark

business have I at think look the the obviously. pieces you to of

of they strong pretty EWS quarter that understand we’ve record they’re growth been out clear coming think kind and with the fourth of I the that have. you pretty well quite

to drive one a the revenue GCS lot talked of of and in that their kind John go that the is we in improvement about, quarter is confidence that another in latter growth was going there’s into So, it forward. I a going fourth Australia growth know, is XXXX. for business as sequential you International, kind clearly XXXX. drag the as in of a and pressure that part of

more At customers first where we’re marketplace, XXXX, a of out helpful but to we’re box is months all of happen. to question the that half discussions in of the see builds, comparison, of abate our in of to is, the else that – And a see really second year-over-year from a we back your then that why clear forward through been convinced recovery and kind unpredictable. we start into I has got say would to year, is that we continue of They’ve more mortgage from expect but headwind the everything NPI to starts recovery that that a We next normal the – want focusing USIS the that same that comping declines cautious ago we’re helps and decline and we out getting think one probably time, happened with pipeline will standpoint. really of be that’s penalty about I have going there’s that you’re that business started recovery in year-over-year then it. their going signs in comparison, with where mode that recovery continue again we and it into the expect about going be the reflects, USIS positive we’re on. the range of quarters to is year couple last We September where

for with predictability expect John? we try show we mortgage, forward What You place we’re add, primarily look that the ex challenges, that and performance at going pleased to fourth there’s to in USIS and the you range put in USIS. is would continue quarter that some to

John Gamble

Yes.

covered Mark very think I fully. it

to fact be of, other one Just aware right.

in If the even you other growth exclude the a look fourth market, three at we quarter you weak large and GCS, had businesses. mortgage X% with very again

we of Mark we’re X% in businesses. again it level progress you we’re progress, revenues GCS they second the continued the year, that lower half flatten get seeing lots we our holding mortgage continuing as do better in the of driving start of to So see to that given as because said, we’re they’re three subscribers that see show market. end see you next in think get expecting that’s just market, again, to those simply as going the what in because think degradation into a of substantial main to is the kind out lapping and not And we expect to growth, can we’re substantially

So, we our us a forward. broad in are as we those the said, guidance, still do range have factors but driving

George Mihalos

color. the margin just follow-up, a maybe appreciate quick on Really the great. as And front. That’s

and be, about I you’re you kind color of flat tax saying you? around bps. an EBITDA point from perspective somewhat think what expense working the units margins of a you adjusted the commentary of segment some business Any EBITDA a sort It it, give like Thanks. call will looks guys about talked and margins is then against XX clarity. can just on by level, expanding up, given interest to that of

John Gamble

Yes.

is we driven So strong, business in going is being going rich margin. you up. as at nice we very as to very, revenue looking said, know, grow units, expect by really to Mark very EWS have expect and is year, – to verifier be verifier EWS. a the It’s them

better be going be we’re we’re to get you slightly. but expecting declines. we was as across margins going this all to And better, performance, USIS you’re year. see much to GCS, to But up down. be it that see add year. they’re we is expecting may that up, than again advertising, when we are our why think flattish think going saw see we’re margin be are we to start this looking up, It not you performance also range guidance better comfort to We’re said up. We to so international look that some of going at to BU than that’s the that

think into the we that’s positive high So Corporate right, of quarter, first high it’s absolutely expense, the a equity. sign. in and quarter, first because

higher quarter So, other this actually first And because the our historically, is absolute so comp fact the – honestly you’re is the on should an seeing of the as half quarter decline and – expense first through low. is year, in first and that revenue equity benefits variable thing the corporate quarter, much quite you basis us go in sorry. that

costs margins and through year. corporate effect margin actually in the benefits those the down, talking fixed grows, revenue that we about our as go that as So of goes we’re

talking We need think get are talked covered that obviously more sector the net-net, on things to about for I Mark us for we we to information. you be – that we to and The get merge pretty all that kind us, performance those Hey, costs execute that’s we’re the is to think it more of our certainly margin think move to full. – will and them. be cloud, affect the improving risks; successful margins and risk as – but you start about together I through get you there So biggest year. how

George Mihalos

Great.

Operator

And Manav with go we’ll take our next Patnaik Barclays. from Please ahead. question

Manav Patnaik

you help could think just just dynamics what moving be we what of free for broadly should question, how there’s Can about about next years? cash and the two lot us to CapEx pieces. good morning. flow conversion maybe you, should a you talk the My Thank first flow understand John, are, cash free

John Gamble

Yes.

this go to to of terms flat, expecting to two next be we’re years, going CapEx think this it in I CapEx, not right, I’m with for year. So, kind year, sorry of out right. XXXX, – year But

as technology lower are our obviously recovery, but thing even actually going went as XXXX, other in as importantly, we proceeds The debt position substantially that we don’t well improved the consistent about somewhat our net acquisitions XXXX, think the levels and our non-recurring continue a in increased we maintain that is see insurance in transformation, balance and is nice as position some we’re on obviously, through really we the of cash you versus we keep would would XXXX increased year. you overall spending sheet to good technology flow, able to sheet go we CapEx as expect some look XXXX performance at have that to that as see small be operating investments, slightly is to since strong XXXX well. well the dynamic we that we as able balance talking as very XXXX published through the with you’re And the

Manav Patnaik

broader what plan of how quick and a game of avoid I lot I you do have we’ve Mark, I structure what’s many I what’s said seen around before. obviously this change, you least And times, any guess, – going question. you’re at to it’s compared there How Okay. a the hiccups? mean, the broadly plan to there’s this? to, I to guess mean, like lot pretty just transformation, happen, mean

Mark Begor

it’s question. Manav, Yes, a great

brought the and having technology it’s and talented well might and execute organization, done rest on of about our talked imagine people have part, in our about this a have we and me This what before. undertaking that leadership great security it is on and lost we rebuild you team. First, the really you with that it? starts that people of the one to are massive I doing As

Our leader new business technology full months. did mainframe legacy prior to in XX in – a conversion it its cloud

it we’re going happen. a do to to but not done team he there, brought Now, to been in do he’s quickly, that, make knows how that it,

number around the two that’s just point is one. So real rigor number Point execution.

plans. that, We and morning. things the to the other technology middle on of started that are you like the you are try the know a – in last up transformation the flavor ramped in give flavor way, have you detailed this big And year, quarter, to fourth things in really give call starting is delivered the very of We we’re a this benefits try I’ll in marketplace happening I January to this the of stuff to see being meaning, happened and February. rolling.

way, of shape in And really the really cloud think important of them call I I use cadence their delivering these focused best. with talk partnering but different all upgrades. form, real of application the to we’re the because with And we a us. very Google, in is depth providers or is we cloud and of So, cloud, third just quality lot the to that of the really the their partnering of capabilities, highlighted on really

have the they’re So real being they’re time? are looking are people, are cadence in on on they the installed; the budget, how at cost, onto they rigor one. team, next the process, cloud on delivered, of they Okay are projects and regular of they in the a leadership I, John and

I is it really So kind it. people. But with the there’s on it and approach that rigor starts of we’re have that around

Manav Patnaik

great. All That’s right.

John Gamble

top just Manav, would of are make clear. My – those outflows be on on impact matters legal regulatory – those any on of ongoing. include will outcome be was to want that the I just sure your of cash said. the the on or Obviously, commentary to I I me, anything question doesn’t top

Manav Patnaik

Got it.

Operator

question ISI. And we’ll move ahead. David Please our with go on Togut from to next Evercore

David Togut

major to Good you’re your offerings? to Thank most you. and two get going do be service competitors morning. where of XXXX, Once terms versus in differentiated end the product Equifax think you primary of you

Mark Begor

Today, becomes getting be differentiator to this be, we’re it that speed to of – are market. going our data start sure like than believe slower we in and really quickly, a market a costs. than faster Yes, speed ingesting really you believe then then our more your are it going that is with, that element, we’d starts and easier to to products both going other of having customers is be to is access competitors by disadvantage leapfrog new the and and if for to we competitive to

we’re third Moving then that the the to to cloud. it versions have to is cost cloud one, that this and times, talked we’re speed, XX countries when we of siloed going a cloud, so database touched leverage is applications not leg move probably that really it we’ve to then on to it’s going be same also what our And in of it’s and recreate access some is to we’re be these consolidate be differentiated And in could us. having to massive upside. many cost, a revenue Today, to the our the operate across the can application, going in, in legacy market actually multiple are the we you doable. the data each multiple leverage on we to access features to going

that our that going really the single convinced and have We we and array more to have technology. allow bridge that’s have across to wide access us we products that data differentiated easily. When data that fabric, we’re customers of

David Togut

model once look allocation, of transformation end margin XXXX, finish organic like capital revenue growth, growth in does then the expansion, And at what bottom-line growth? terms of this Equifax the Understood. you

Mark Begor

prior do David, get couple we been prepared do crystal has place. put a calls. us to we’re there back of but to that We’ve to Yes, prepared to before that, want we’re that. are in from clear long-term probably been been that, we’ve nailed clear you down to things framework know not be We that a quite do will important about to going that really

framework our on we have that legal a don’t seeing don’t settlement really and today. is – have a framework and regulatory path First we

out. to have put important quantifying laid a before deeply us plan bottom this and really getting we’re do and you got and plan to really framework to one the that’s massive So We on technology on last line. the two is we Number six about made place. financial around; the benefits months in – that’s still real we this long-term some work clarity in top progress for us

in to long-term really something our seeing that’s And by positive they of somewhat but mortgage put XXXX, still seen their seeing to list, but is USIS, kind need framework. USIS then consistency of quarterly of is So us. recovery We’ve in the of our performance inside important that’s and from masked some market, consistency that growth. that that’s U.S. on return that third really been to to-do complete to the have we that headwind

are back there. three we’re in to those ready place, long-term going framework our out when to be So put

David Togut

you. it. Appreciate Thank

Operator

question go And we’ll JPMorgan. Please next take Andrew our from Steinerman with ahead.

Andrew Steinerman

With the Mark. Hi, kind during Equifax? zero-sum to more just, as offerings Equifax really or kind so growth Equifax’s unique and bureaus your organic you say, situation? other of I acceleration credit do Do see a revenue see you opportunities sales would growth perspective pipeline revenue, of to

Mark Begor

to primary, that’s XXXX. other breach competitors – probably out one aspects and you’re them know, you some of Andrew, business. as a wins about of we’re our would and from mix whatever, We of guys of unique say think in and couple have you zero-sum it’s could the happening before day, We I that characterize and you couple like every the I do last two. When for as was that there’s our That’s where doing quite just and the secondary a that there are you months times compete the to do talked competitive But unique. us to during game. that’s business, hard business our trying we move one had EWS it.

it’s Our growing different. as it’s growing. competitors business at and that, characterize zero-sum like business a a have that really game, I don’t the wouldn’t rate that because

cetera, that have segments. et our and different it’s don’t markets, with said we compete their competitors businesses You

say So, a the I two. would of it’s mix

Andrew Steinerman

Okay. Thank you.

John Gamble

right. international, is place other The

competitors. Our international footprint very different our than

is our different to theirs. So, grow opportunity there than

Andrew Steinerman

very you Thank Okay. much.

Mark Begor

where didn’t add just that Andrew, in think there. the of FinTech I to about meetings have the example, an I with a an we’ve before and historically presence it’s We talked space. Maybe, mix you should two. have That’s we example, the

our that of We taking differentiated, assets were have our FinTech space I But much aggressive TWN changed something the comments talked is that competitors quite also more competitors the don’t commercially. element Our to in earlier there that’s data there. about in is XXXX. my

into have assets just we’re like that example, great speak, we’re new bringing really improve we’re FinTech in decisioning. and there we on as it working XXXX, customer to So also their others, wins hope competitive where helping go a set that’s we but some as we data that

Andrew Steinerman

you. Well said. Thank

Operator

Toni go we’ll our take And from next Please Stanley. question with Morgan Kaplan ahead.

Jeff Goldstein

talked I moved Hi. and guidance This that impact insurance increased XXXX costs a Jeff breach. still share Toni. all? Is IT relates Goldstein the you’ve to a into on expectation and security, that the about baked is previously has for $X.XX know number ongoing from or the that

Mark Begor

Yes.

increased security forward what the we looking increase when talked of is in right, XXXX we’re part first those a we’re we’ve So, to happened, talk about costs quarter, XXXX, because XXXX. what’s we have the cost about in lapping part from of

would in and the we occurred the those So, expect increases costs, in those XXXX. we’re and increase during but big insurance and rise, things we very the XXXX certainly one-time continuing seeing saw to – that those continue increases large are to security see step-up costs

XXXX, type shouldn’t so of the still And see we but will those we costs. incur in same step

Jeff Goldstein

Thanks. it be you we Is then of be And thinking will should the it. back rate XXXX. is X% you’re Equifax beyond better of think about trying to or number more X% Got of sales figure CapEx flat that that to given kind it new sales of understanding, said but run year-over-year, create? a like occurred way XXXX is to before about how the

John Gamble

but point premature, the So, it about we you decline. way maintenance complete; can should I give all exact this is at should numbers decline. is when the it’s think number, say certainly To transfer CapEx certainly the

Mark Begor

And that what not making is investment of financial we’re yet. in think I leading comment about on to Jeff, John future, result we’re basis, a coming that into talk which long-term down our in but kind framework, talk don’t prepared – think the to I the should think that prepared I also, you about we’re but that

Jeff Goldstein

Thanks. it. Got

Operator

from question next Suisse. ahead. Credit Kevin Please with our McVeigh go take we’ll And

Kevin McVeigh

lost – XXXX get was sense your what revenue being talked that sense we kind of XXXX? Great, about box thanks. back that you so Hey, on any a out as we opportunities what of in XXXX, of the with the of into can penalty customers, versus scale

John Gamble

Yes.

and adjourn, of I think growth you USIS’s could in where was it it historical probably with kind incident pre-cybersecurity obviously rate do the significant. quite XXXX was math was

Mark Begor

difference, competitors’ and growth, but quantify would us for our You to a specifically, So, a was growth saw very difficult. there you saw significant that quite be right? our

Kevin McVeigh

the all that then terms from just of wrapped in And timing Okay. a framework, when legal perspective, up? sense of any and gets regulatory

John Gamble

at our into our on to encourage look about We you a stand put and lot in and that. a we some there, expanded detail legal where take matters, that XX-K disclosure I’d detail of regulatory has which on

Kevin McVeigh

you. Thank Okay.

Operator

move on next William ahead. we’ll And from to our with question Please Tim McHugh go Blair.

Tim McHugh

Thanks.

last the follow-up you came did laid just trying – to with how to on different you Just any wanted out pricing the Just discussion the that developing? that the six guess. kind to plan than of is the after in, I that it’s three past? process. understand that technology, that or change How in I months Is meaningfully in plan move forward guess, of

Mark Begor

half about joined And to half that. a remediation of changed us, we roll doing what improvements as talked join plan us is us. team lot helping a you really focus second Dramatically When on Bryson the we and team his and of of the of different. about security XXXX, today. focus XXXX was through his He really XXXX, first half on all our think that the started about out was refine

has to of happening color to every week, meeting going his things are learned the and XXXX experience, And give through. projects. this ownership a very like in there shaped experience, in kind three-year morning over deliberate the got I different in – cloud deliverable the in December again, is on to marketplace, January, of just given there’s really lot We’ve characterize plan specific XX and you months is this focused his the to lessons it’s you before. dramatically place. So, teams’ that would I’ll the drive it and moving doing period, put It’s we’ve XXXX. to around is the transformation going to and we pacing a really in between happen keep stuff detailed give fourth nothing forward, over and there’s real this a next try now not but very planned flavor XXXX, that that He quarter,

Tim McHugh

you new Okay. And growth. I at year-end. think you about I Verification record as know seemed get said, stronger, on talked that business business, And the to

types point it meaningfully two as the as to maybe And really question why that of guess, been record I has factor, aspects they they another secondly, One data? to this is? new in of there. moving finding the terms there needle new strong growth booking... as the sources So, is they use the Are at it different kind are of are is – get cases,

Mark Begor

technology of companies on easier assets, or more X,XXX customers EWS X,XXX them that it mid-market You that’s employees to model. hit business you invested their so to and And they’ve provide commit. they’re to months employees both or heavily that’s nails to their their making the would next for XX connect one, data that in make companies the characterize it head, XX,XXX, easier last have the know, or I meaning in versus kind easily what so of year for

in As we have the quarter five more last pointed we out, in we records added years. than fourth

partnering meeting. I on companies think that of number it’s similar the now are

We’re up. really that ramping

increased And partnership us as payroll on opposed to providers getting more is success in to a strong directly one double you head government focus with So XXXX. that’s hit more on of the that cases, the for it’s nail whether grew growth which source working second side, from use it’s we’re where just number inside digits the data the company. in point that, around And then one. other is record that from partnerships, an that have

just continue tomorrow another to added record you data XXXX, above in morning. this as I know average. this we expect as that asset. monetized another take then continue afternoon, – we it when lastly, meaning, that and mentioned, there, to that the payroll other We use And cases growing record And data

the go monetization is the rates that. rapid just up, grow hit As you very very, as

he’s and it data is focused a in So, segments. out strong Rudy out building help assets, on the very those used industry has we’ve of there, very commercial and lots vertical and team owners data different course, decisioning in can and adding strong focus got got how of how teams a

know Equifax a you – is guys great business. You this

Tim McHugh

Okay. Thank you.

Operator

Please we’ll Rosenbaum with And take ahead. Stifel. question go next from our Shlomo

Shlomo Rosenbaum

ability it Thank Hi. a Hey for when the you of restart a feel where you questions. the – pace conversion right inherent projects you just gap go like do in their had and pipeline was forecast do that sales given your how taking difficulty then you the conversion to stuff like kind John, pipeline on is have terms going implementations? are situation, through my you there projecting an and to you now in of Where that. in whether of

John Gamble

Well, you’re talked think consistently right. to nearly XXXX, not quite it’s as our be it Right, been revenue forecast that expected clearly ability to And historically. was fact choppy, correct. as through you good I the we about our look we’ve as

than other ability fourth to the quarter, better back in we this that we really forecast of and little but were missed the have go for heavily guess, you company, weakness we the quarter performance, out and And we if that we Our on really a impact take in mortgage that to choppy. mortgage last terms the a based of based fairly because what look But think I the market. revenue good quarter I more market, choppy little bit a forecast weakness was – little Australia of we conversion was at feel than – relatively but that, good. did a – our than

feel better performance not So little one the we a quarter, the but accept, given we a trend in quarter make. does fourth also

in lot We we So expected back it’s of conversions in things conversions in XXXX a it to performance, as be and sales as saw batch We the But do are get about we that give should quarter. going be expecting improving. is that and move getting getting are We toward the jobs better Mark through would USIS and the start more comfort, toward we XXXX. caution of end are All think improvement we normal. less to predictability in our get fourth hope on end the choppy talked our choppy of we’re as people we better. pipeline as things us focused that better XXXX way with improving. feeling still

Shlomo Rosenbaum

just index like, Okay, we looked ran in for just then MBA there, market, trying thanks. application the are – to it you of you conservatism quarter-to-date And mortgage the certain sort are where when kind if forecast forward we as carry last a night, inherent of that you putting just are.

much Is you’re mortgage, better stepping something and that You the first could of a quarter the I rest year. guess you back less experience there where would bit? actually have pickup headwind in of given little in much call it your the a just better –

Mark Begor

So, inquiries. we actually use

So, in the you theory, we actual doing we’re we’re what think to. inquiries I trending at which is access don’t have received,

– that’s in probably that’s we we since index So, think all we the inquiries, period. use. And relevant we see

on and use going So mortgage happen a three that inquiries we what in different forward. forward. overall input trend we market, four the period, sources We expect point from that’s basis for to the the third-party going or with then

we difficult is difficult, and market for showing we’ll we’ll not seeing difficult think only it pretty it’s of improvement, We are direct. but – but it’s mortgage certainly it’s that well, So, for seeing, mortgage we We really have to the as get reasonable market of better, benefit people If and everybody, trend the but try would reasonable that build admit whether that, origination stays what weaker, also is gets faster, that impact a I us. right. forecast. the the think mortgage less or if shopping see into obviously, you’re we’re in more forecast the

Shlomo Rosenbaum

All the you I’ve right. summarizes CFO heard just it’s much. comment, first that John, time together. Thank very by I want And saying the to merge guidance all

Mark Begor

know You John don’t well enough then.

Shlomo Rosenbaum

Thank you.

Operator

question next Sachs. our with go from ahead. Tong Goldman take Please we’ll And George

George Tong

morning. Good thanks. Hi,

quarter? DataX the Can fourth growth what the in USIS organic in XQ. You tell in us you acquired earlier was

Mark Begor

than of order was the less So, the DataX impact on of right? a point,

George Tong

business, how guidance? your are costs breach-related and should that the to ongoing back in XXXX. it. go you embedded helpful. indicated XXXX much security That’s like than you costs Got smaller XXXX in Can be to ongoing I’d in the insurance step-up data in into quantify

John Gamble

included to to okay. going increases security. in We is We two try see adjusted So, run we EPS. that give tried didn’t to what’s continued this in and quantify indicate did rate, were we numbers our

a I spend normal we growth quantify is, I rate going specific see now say spend probably security could are and high, didn’t and So, number growth to reached run I what and think right. in security more rates we’re

– to grow So, not companies like we like our but the would, security step-ups XXXX. in spend saw you many us have should expect significant see

In improved of embedded in technology is transformation our other spend securities. terms that our certainly obviously investments

is is So, embedded the from the spend number anyway, a down $XXX from – transformation in year, number. XXXX. around not million of is about that’s but which just in gave we non-recurring spend separately this be XXXX tech That that security slightly – would not that security

George Tong

you. Thank it. Got

Mark Begor

Thanks, George.

Operator

And we’ll Please with Huff take Stephens. from go ahead. our next Brett question

Brett Huff

it’s I you related tech morning, and partake is, one as That’s the substantial I’m tech or talked helpful. thanks transformation, If about, that strategic clients additional client and Good tech I how your to to the guys, that. plan. interact you’ve for guess, through and do you on Two I’m detail the that, refresh a as on go Number and I want questions in thinking. you with I’ll product? consuming and in – That’s this. test take some thought two, know with a technology, does elongate kind question does – number you. it testing a How to does longer of in there put going Is And lot new one. me new am this of get guys then along I it that any off. or number that of that somebody it

have related Appreciate to So thoughts. that? those this you compensated thanks team it. dialed So layers a into couple are for or management down even how

Mark Begor

Brett. question, great Yes,

of not new that from we’re regards, and the platform platforms First you time, part customers hit on this been on moving your the that’s head some been migration, upgrading us. – is process new technology. a our for we’ve We’ve of because in long legacy for constantly a most one doing that’s to challenging that the the

is provide customers, it to value-added then work to going sure for their new services make to to focus our and easy them, going we’re Our them make that cycle. is with to application the in

migration when ready cycles a technology their have they’re to make plan. specific or going they’re a change to know given about You

not we’ll second we are It’s hit us; So, incentives, going new – point. on it we’ve through be for with really important muscle working customers before doing migration question that you a forward. really process your the a around dialoguing. been our and On

to imagine, technology got analogy we’re leadership is but car, transformation. might the and to change you’ve team going grow whatever a right a at time, run on here, that doing incented you same the organization As business, the tires is, an the the

plan forward. is investors security continuing with have put that that, really going the in security leadership around With And as focus XXXX, think in aligned EFX transformation. project this the our in project We put team to around the then our around them So, answer lastly, the we massive aligned. a that have XXXX some metric well XXXX. with that’s the incentives as We yes, incentive important that in is specific we bonus one. that place right in cash we’re think

kind I to there way AIP the companies only is is individuals that and that – a – security you bonus out tied organizations X,XXX of think only it the our XX% in progress and are and bonus it’s the has in plan, that around punitive. we’re know this people of we’ve and got works is the metric there

a meet XXXX, in big we goals, our takeaway the we meaning, was if aligning could there them don’t we XXXX, metric our there but what in So don’t no around meet believer are. did year, goals Other security organization and which in there. people so last be

So, We’ve around financial this then goal added we’ve good align got the EFX this organization and security got the incentive very goals incentives. we’ve and to growth transformation. around XXXX technology

Brett Huff

you. Thank Great.

Operator

go Bill next from Warmington And we’ll take our Fargo. ahead. question Wells Please with

Billi Warmington

everyone. morning, Good

Mark Begor

Hey, Bill.

Billi Warmington

a on A pipeline. we would wanted question that in pipeline to was just ask, mentioned describe had that it how was believe I heavily talked, the when terms high. it and second Last pipeline. first two-year the I stages although you weighted of those you today. time revenue reaching towards

Mark Begor

one don’t did. Yes, saying continued through high, remember build there’s I fourth Bill. pipeline two-year probably us of but that and year or question quarter. I of a no But the did the in last year

our continuing in referring that’s talked what execution John active kind know to USIS not address have in the the believe I think back commercial quarter. the to about normal dialogs. quarter. is on We having deals in you’re I and discussions, first discussions, like security anymore we’ll fourth our which just we’re We feel customers. really with your this, I in we’re comments, of

when we we’re to doing, what in about from security are technology, want Although, edge learn amounts us our we’re you’re cutting stuff putting and continue to the investing customers in.

lot the customers. closure pipelines to to the in see still incident. you’re rate sharing which time, doing strong; those pipelines we’re on and see that we relationship, had first is a new you on working our that that we away a versus over we September best with which actually close. and months our we goes be pipeline But been year. there, deal XXXX to how this before our XXXX But in quite know, and those last as in reflected builds the and hard calls that are And prior call that this with is be when the in we’ve the predict it partnership clear progressing XX, practice as run USIS kind went predicting XXXX pipeline to continue of hard same the we continued that for as give XX the through caution to So again we rate tried going guidance of positively, when to building try deals quarter, cybersecurity build September continued on at

John that’s still to So USIS not to really close one mentioned our are how the minutes back we’re as us. inside yields come to few our for that forecast ability ago going that’s normal and a to

Billi Warmington

a work as then question the And follow-up on numbers.

the You total the then the a higher as rate do much What result growth see nearing are improving strong actually match as XX how you records records? there a opportunity of million. and very highlighted

Mark Begor

Yes.

just this call I first with and a on use see the we your use internally it I and opportunity. Rudy question, of with term the of others before On you lot half of team know, And is decade, record a own the growth his in one really you those. EWS of the for perspective, EWS. my inning as second growth. a their From business you in and

parts growth As talked know latter and our we’ve XX and accelerating number the how you what investments, know, about we got something from In is, we the grow fourth was of there’s records that record payroll of to – around year our through growth technology partnerships a opportunity million, XXX lot the or non-farm right the I have. quarter don’t million

to growth So, we expect going to top-end forward. about it’s hard the energized we’re on record But say. and opportunity continue the that, with

the of The question your second know that is? John, on match don’t rate, half what I

John Gamble

that given application, serve the by customers are honestly, quite And customer an you be to way we different give difficult so and by me average. for

grows, and Mark goes say significant database our as to it’s right, the respond needless said, us. Just ability as up to to benefit a

Mark Begor

this call, the that of mentioned when today rates ticket that means of I that or this great That’s record of lot thing had the tomorrow. monetized on in up. it’s and of a times use beauty is cases, business government we you’ve again, couple And it’s kind your a and hit mortgage revenue your got business goes or about whether the go up,

an workforce. quite it’s So, exciting

Billi Warmington

Got much. it. Thank you very

Operator

question Gary Merrill Bisbee our America of from Bank Lynch. And Please take go next we’ll ahead. with

Gary Bisbee

Hi, Yes. good morning.

XXXX should XXXX? reasonable it see innovation it XXXX, majority you. we the two the to completed benefits said quicker investment that say of cost initiatives, begin On deliver the the safe during won’t the ability the part customers of internal you accrue think I that, Thank Equifax beyond of And of be the and the guess, you by But back changes benefits end that to as really to to and or the in would you both years some costs on next this to is XXXX. happens beyond side? add vast any really if stuff the your think

John Gamble

as as major years, – to expect We go We That some benefits we’re time fabric benefits XXXX. yes, make we lot to the data question, a XXXX, couple we in do to your the speed into in let going response we but lot expect of see see ways. of specific into progress forward, market, us absolutely move need we the And pass. to changes of operationally, to next we’re said see move right. going to different to in of a terms

you something right. So, off, we happen to until benefits Financial turn don’t benefits. expect certainly do see

doesn’t does. on give benefit, but you something Turning financial it turning off

it XXXX. off benefit, so starting turning that’s more the the in lot So financial part, a

Mark Begor

some Gary, quarter. try that installed we spice to the things morning color in give when are we happening, try the actually were some as quarter, I out happening to also them know in you things this fourth think are first with – things

going benefits. from The end switch So be to way to at to provide XXXX. that’s beyond going all not a switched the through benefits It’s going timeframe going that of This investments. this and are to significant is accrue on the XXXX. these is happen

Gary Bisbee

the And Great. then follow-up.

XXXX sounds outlook and sort An is stuff what you of like But bunch I of on. to more a that loaded the Thank year your both deliverability discussed aggressive provided. As us and much realize I help commentary of appreciate QX sounds that of QX talking you’re the awful as about? back around of market confidence the can it lot you. the on like mortgage. and you ramp gets goes gauge just better a a lot you it all comps

John Gamble

We tried Gary some color. to give you

trying the in we’re out versus comp the start meaning, I headwinds this, that the second to that the mortgage you on we think year, cost we ramp into had comps half. of that part on significant we give rate to the color quarter too, last but the got judge the as some first be get to on the on

provided, time, EWS Argentina, are time, then you businesses, were and our and that. international particular, of for visibility uncertainties because a of Australia think to we we factor So, a last the is to on that understood. element in inside you think kind But to on, headwinds the lay today we been there of us mortgage we same USIS, wanted the USIS, for think to out around in then clarity hard we’ve at there’s make headwinds we be revenue less box the when a lot and there last have about And got EPS, and those good gave big same proven for lesser top range you we the case those six U.S. At but been And the that try the in it of we intentional try a here sure degree past. number – of forecast some than that reasonable. is put in to we to we for about have a the what there know XX in range of that out we a a months. that has United is predictable States, of

Gary Bisbee

you. helpful. Thank That’s

Operator

go from And question go from Deutsche last question we’ll for Meuler Baird. next ahead. Please take with Sabadra And on we’ll Bank. move ahead. Please our to from Jeff our Ashish today

Nick Nikitas

is This Nick Thanks Nikitas me squeezing in. guys. for on Hey, for Jeff.

So really still just months. over the just to and how talk impacting XX go-to-market the it about tech like talked that’s will transformation XX timelines, for just like fairly you sounds it the And on. versions sounds about helpful remain next opportunity? Mark, given you to understandably, Can an application. there’s multiple But a coming detail back it going intensive lot

dynamic is point somewhat to and we in that there? business that’s improvement a material headwinds or of still new starting on past a peak kind see So you’re governor are the of

Mark Begor

teams. would up to there. see forward Yes. our should resources lot grow. From a don’t focused got and I perspective, We’ve technology more jump tech and the be We John and Nick, impacting our It’s a transformation to ramped really going you dedicated ability we going in. positive

are are the on on So, it. this teams working that it is focused, working

Our there do commercial should teams selling. they are just what doing every day, out

we investment in with anyway. someone, going we’re you infrastructure, if be And to to this doing going it think their you’re the an for but customers. they’ll with the their use of when about, of other growth inside who in get migrations counterparts on and team is, having our technology with don’t to Now, to our when impeding we role technology talk of have team, ready our make see element a impact I customers, customers, working partnering kind this is our customers,

becomes with doing what next this XXXX of going the week, them very analytics, doing be complete easily about and we transformation. this them technology, we’re They’re for on week more what So, a commercial in the ability when positive easier data, about doing about it elements to an EFX customers. dialog we’re for becomes kind this long-term data quite to partnership access the on of our the because we’re partner things discussion positive

John Gamble

And create right, we that that fact add we mean, the that as and on said in – I complexity. thing more past, mind you additional activity, when focus right, in this keep we just have is to the the does it much

we’re your team way significant have on able focused it’s impede we’re making So, it through transformation processes in work very your on, absolutely have our it going complexity to a stay to for they that that at that impact and this will to as much create a we to but resource focused more to it pace just do Mark challenge also said, you’re sure something does try and doesn’t adding because the when through. deliver, – it

Nick Nikitas

mortgage. a Okay. on sense. quick just one That the And makes

think, I incremental? just was you guess Can outlined slightly end forecast you what in about to I reseller the if some will Mark, talk and end-market guys you the that mentioned be market. shift it incorporated it’s or

Mark Begor

– ways just business, our go-to-market mortgage. two That’s Yes. used in in in we different

year. combine about take a who sell are and/or through first our We – we channel expect combination probably would report, of report where into XXXX, to see move see the out our core we business have report reports, does we in continued just somebody, shifts. seen solutions, to competitors And sell in we’re so, simply away in channel we sell as and with talking we the half. or to the we that core the – mortgage and that actually us shifts going have it And get reseller. tri-merge probably mortgage we mortgage our – we We our shifts from as

Nick Nikitas

that’s in forecast of of included the of… Okay. all kind But end market

Mark Begor

it number deliver, the It doesn’t we change changes It is of inquiries. is, absolutely, just that what yes. because

Nick Nikitas

Okay, Thanks. great.

Operator

no there questions are at time. this further And

Mark Begor

very you Thank Great. much.

John Gamble

Thanks everybody.

Trevor Burns

Thanks everybody.

Operator

does And We this today’s conclude presentation. thank you participation. your for

now may disconnect. You

Equifax (EFX) 21 Feb 192018 Q4 Earnings call transcript