EFX - Earnings call transcript Q4 2019

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Operator

Good day and welcome to the Equifax Fourth Quarter 2019 Earnings Conference Call. Today’s conference is being recorded and at this time, I would like to turn the conference over to John Gamble. Please go ahead, sir.

John Gamble

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

this business number full XXXX factors and of are and including its differ to risks, forth materially During our forward-looking environment. These understand inherent factors help year results we uncertainties in making guidance the will actual certain risk our subsequent call, filings. with statements statements you XXXX business to cause Equifax be involve could other filings that our Form set and expectations. in from including Certain SEC XX-K a

adjusted be Also, performance. adjusted measures certain be adjusted affect EBITDA, for referring certain financial items and comparability non-GAAP operational which to underlying we of our that will EPS will including the Equifax attributable to

costs matters expense, and stock were For upon settlement the foreign XXXX of excludes peso-denominated the fourth vesting the net from awards quarter currency incident, Argentinean accruals with adjusted EPS assets. Equifax effect monetary remeasuring related or of to income to tax associated attributable acquisition-related legal recognized XXXX, losses cybersecurity the amortization

includes processes technology cost systems, projects. to data and consolidate XXXX Adjusted security. data manage our government related as enhance technology Equifax professional global to project substantially designed also to and to infrastructure, non-recurring projects well cost as the well as the and and to investigations, enhance our as our EPS our related outstanding cybersecurity attributable systems includes as fees projects as fees and these principally and incident, legal to litigation replace the This incremental implement to security and to well networks

interest and excluding cybersecurity to for our currency matters back defined to amortization posted in technology Adjusted tables expected incident net depreciation with our expense, EPS, infrastructure of is will also case are income, EBITDA XXXX. the XXXX and and expense, XXXX that accruals to which as XXXX as data legal and interest transform non-GAAP enhance and attributable Equifax net cost are projects to related adjusted These remeasuring These from adding in income occur and detailed incurred assets. tax were measures the release also throughout peso-denominated related reconciliation the XXXX security Argentinean net further losses earnings for monetary is and and our the on are XXXX foreign our website. included cybersecurity incident, income are

to us months has in, also back would joined and greatly who’ll until several I like Jeff thank for from us appreciated and medical is his it rejoining welcome like Trevor Jeff back Burns I stepping the next returns for Mark be Dodge to today. would Jeff leave.

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

Mark Begor

good Thanks, everyone. John and morning

it at this the following been busy week Equifax. week news here you’ve If another was

I into four XXXX Before role Monday, the FBI on results the me of military Department their quarter indictment a fourth cyber-attack minutes announcement Justice in let Equifax. on get their financial few for on just the of officials and Chinese spend

and the regulatory of the XXXX we $XXX settlement the significant comprehensive criminals you facing cyber related identifying attacked positive chapter matters the consumers. closed pleased took million on another announcement of Equifax. in on Continuing We’re event, Monday’s who Equifax the XXXX is we XXXX for event. the in recalled DOJ forward were charge half and to and the most Equifax FBI as successful the that first US legal step

settlement year’s financial the and and last of Settlement. multi-state Massachusetts all to states who fourth resolution not of $XXX derivative litigation. Indiana the and legal in This institutions of million investigations the recorded the did action from additional cybersecurity The related securities join [indiscernible] we by quarter, an class incident. law arising proceedings includes US Attorney remaining shareholder and charge action General XXXX class In suits charge

by also the Consumer from fourth estimate US the the net settlement estimate of with investigations. charge EBITDA the resolve and these net is and is in Consistent are the XXXX proceedings related resolution insurance prior this Action is Class an proceeds EPS. being which Financial matters Litigation. This charge the included Authority The remaining and $XXX legal million adjusted includes adjusted Conduct matters. in review undertaking open of the no XXXX quarter charge UK our The the to incident, for charges charge to Canadian excluded related to cybersecurity

month. allows this Department and by XXXX resolution the provided issues the matters this our entered XXXX. regulatory our a the our January $XXX class consumer action the when transformation fund into to approval of paid and depends Security and resolution the Justice page data event to Monday’s timing case. focus be and that uncertain. The appeals Details consumer team be In US related leading is Technology court XX-K remaining the EFX on resolution will granted for restitution XXXX all the The settlement to we our related of approximately of multi-district final analytics status of cyber growth filed company. technology filed we the to the timing million fully outstanding of that of of of the on appeals legal and and indictment turn Equifax on still later in is the

Let results. our me to quarter fourth now move

We’re reflect event quarter were positive another normal the above step to we’re with a are financial sequential pleased results XXXX. and were to return showed very and improvement, forward in broad strongest more. in Equifax. growth results more The based and Equifax very since guidance performance XXXX strong our fourth These progress our the

up had million USIS’s above X%. an by a basis on the was performance October BXB constant a at constant since XX% their The USIS They end and $XXX two solid guidance. up was strongest and organic USIS up X% currency currency with very our and our at strong EWS second EWS. and in driven growth and XXXX. growth Revenue up half XX% XX% a strongest strong of collectively grew was XX% solutions overall workforce XXXX revenue top since strong business US We up

strong with US from inquiries by Brexit expected, with the our and growth our but X% mortgage continued I growth guidance. in consumer slowdown in unrest the revenue almost pressure inquiries uncertainty with recovery in UK US revenue International market X.X% with back just recently revenue path and under consumer growth most all delivered in quarter, consistent Global business. to XX% Chile. up of growth regions the and their constant up currency the remain in as continued driven the improving with Australia,

we top EBITDA adjusted our grew points share October. guidance, XXX per of The EPS basis a compared provided Adjusted in end of of $X.XX at margin XX.X% XXXX. up was to nicely

cost transformed as were systems seeing increased move in These with guidance our costs we’re duplicate production. depreciation into While October. cloud provided line our and in

me the units. Let now business individual to move

their quarter XXXX with from Mortgage impact solutions versus left much of over quarter revenue up the the quarter which X% in occurred the of fourth X% the fourth was growth as organic mixed mortgage mortgage up in a an revenue on USIS; the quarters was up market basis reseller XX% XX% in was the reported First, on inquiries. negative and consistent XXXX of large just revenue basis. XXXX. mortgage a shift Total prior stronger of the we than

XXXX. up lower USIS trends USIS year. the the positive expectation again, in in the and reflects recovery Our over some non-mortgage organic the lower and discussed slightly quarter non-mortgage than growth our third of positive in was continuation grew continued This only was in We saw and past non-mortgage but very to revenue growth compared last about we’ve USIS quarter than good the and choppiness that accelerating two growth years. organic feel X%

This that by due offset sells segment. our sale and down files in fourth an to We our in and X.X% segment double-digit insurance the well in occurred saw USIS one-time in and up in XXXX verticals basis. did credit quarter mortgage, not segment fraud, revenue reporting reported for agencies. was consumer basis This Direct very data organic on to important is and Online as was principally [ph], which in declines scores London. in to repeat. These growth a ID to all and USIS. direct in X.X% the of USIS auto are was x other growth as credit telco up banking on that consumer

return in the in growth decline We saw in expect backs good quarter, we first and see segment as telco XXXX. of the to to this quarter while growth with we’ve sight a telco to recent expect and move very a success and of line and win XXXX clear into – wins customer

quarter revenue marketing up Financial X.X% to year. compared was in services the last

For full FMS as XXXX. delivered growth compared year revenue X.X% XXXX to

reflects growth quarters discussed past in revenue was the three still that of in in pipeline positive. choppy. FMS growing we quarters They The quarterly delivered over view that which revenue as XXXX four While business. continuing the couple we growth the

USIS the the new been won Singh value activity years. and of the Their by XXXX XXXX end of versus up with new Sid XXXX the into fourth four at deal the XXXX increased quarter and in team in XXXX end XXXX. and and new the XX% it’s momentum through commercial to is over accelerating deals past pipeline fourth year almost with continue good XX% coming in highest show deals year quarter dollar won out

were EBITDA royalty resources well quarter XX.X% its believe XXXX to fourth investments and due our well USIS The results basis technology resources. from to mode. investments analytics, expense assets in that coupled traditional primarily higher XXX and increased USIS they’re will data differentiated with cost of new as product down commercial margins at continue adjusted down half. to data that and We fourth development points quarter return as show XXXX our growth

rollout reflects a much growth excluding compared with verticals. into new to mortgage, services government based verticals growth auto, benefit of strong market solution to records driven products, of and growth the by and XX% growth revenue Workforce and up strong continued as and and were broad active talent XX% services year strong revenue services extremely work a well had across Shifting mortgage healthcare, and last as XX% up debt broad which expansion revenue the our the double-digit The new based than strong verification was quarter management, EWS now in very was addition respectively. verification new customers. revenue strong XX% of Verification up they better number expectations. Solutions,

a roughly including US the payroll outstanding gives our grow year the which of XXXX expanding and unique individuals in million job compared did future. us XX the XXXX database and Twin XXX almost to in team at an from the growth and XX% Ploder in has the active the records business to room self-employed their ago. plenty of individuals non-form up database. active These XXX million Rudy Twin million over EWS end

to benefits As these drive Twin our records really you and rates consumers. hit for revenue US customers know our

our the Our system with twin monetize as our to delivering customers the soon database hit to they to applications. as their to integrations our additions system by to allow customers access as database system rates and higher added us system they’re

Employer in well principally strong year prior in ACA incremental Margins business of to our with declines selling lower claims and services higher declined the implementation and quarter margins were our XX%. The some expansion cost. EBITDA the resulted in quarter line the in the and our cost Twin third-party verifier that due the associated adjusted revenue records expectations with to expected royalty compared strong primarily analytics, due workforce business. X% as as unemployment growth to

degree international, and potential. in Workforce business a strong best Solutions currency deliver this on almost in reported UK revenue Shifting they particularly America of the was debt their to growth future majority The up weaker management with in X% Chile and local expectations and versus the basis. expectations. is flat results continue in was was Equifax’s to to our significant now our less clearly than a Latin And business. weakness

of the saw about than Importantly, in revenue Australia. in better the in given Australia, half UK. XXXX of Chile including despite and performance the encouraged trajectory Asia the the continuing international I’m economic we second Pacific growth business posted a expected the headwinds

and versus of quarter and Australian half was X% XXXX. businesses which up quarter Pacific our XXXX for New currency almost the second X.X% local in the is in fourth primarily fourth Asia Zealand

Australia, quarter. just and under half commercial of saw Importantly in we combined in the our online revenue Australian consumer revenue which growth represents X% about

We in growth identity also fraud business a our HR business. our and saw solutions nice and

extent marketing expect which half see of weakness a our to XXXX. continue business to lesser continue, first services at We we but through the in

Lisa ago on Australia Nelson, are her I was in business weeks returning leader to two new team the and our in growth with XXXX. she focused

make for to data of of and end and revenue business second quarter We half by we the to expect to growth XXXX. mortgage local XX% card good and continues had including in from the first strengthen contributors currency Australia Australia. positive of in growth data positive data very return fourth Australian of The credit the the with the quarter progress XX%

new additional We in for data growth this expect the to future. business the lever be a for

businesses Shifting up weaker and now in quarter X% fourth were business. expectations to our local primarily the our debt which European management than in currency our

up Importantly, up XXXX their our local X% and XXXX. European in CRA quarter third represents which batch XX% the up improvement and the quarter. in European from the fourth X% business was online in of Consumer was revenue credit strongest of currency X% and performance in our almost

revenue by the in weak double and strength revenue Fintech Analytics InterConnect [ph] Scores Commercial ID the was services. fraud business in driven and digits in grew quarter. financial Our growth and and Ignite was quarter this and

declined and to business currency business government did the fourth the in management growth X% local positive. with debt was management debt in European our in to return which quarter Spain principally UK Our

business expect overall quarter XXXX the debt However at situation Brexit the remain we of first the through management weak normalizes. as to

Uruguay, NPI Shifting of accelerate quarter our unrest. XXXX of We to Ecuador, grew and despite strong Ignite rollouts saw customer the in and Argentina, And growth to business, a Latin XX% they American the expansion Latin El in Chile of currency the double-digit the SaaS rollouts we’re local benefit XXXX. our due businesses InterConnect in strong Salvador and constant in recent and currency growth from fourth seeing Mexico. XXXX impact as American

Equifax. in EBITDA the fourth margins year the on in focus customer local a full to renovation XXXX and X% cost and Canada both a to year. investments. currency market products. very strong at compared and the quarter the strong was actions improved during points the for and The XXXX continued fourth strong were new XX.X% return well as International we for be up X% Canada to implemented reflecting adjusted up the continues in growth of minority prior margin income from in recovery the of quarter basis the benefit growth as reflects in quarter XXX

combined Global X.X% a increase to fourth in up basis point from constant that revenue, quarter. Solutions of on XX quarter improvement reported now Shifting and the down US an consumer direct X% Double-digit offset and revenue GCS only consumer. under of revenue consumer the in XXXX. just was was substantial currency Consumer half in by the represents in X% quarter, which a across was the our UK Global business total the third Canada’s decline direct basis businesses

expected substantial slightly a US decline greater it than consumer the in the and Although we’ve still US earlier in represents XXXX. we quarter saw a third improvement decline in direct in double-digit the in

channel the increased breach solid Our partners, result of growth X% GCS business in partner our benefits Canadian our as [ph] quarter US with our business. and a

Our time and from partner has GCS close continues logos this team grown nicely new last to their pipeline year.

XXX the third year basis of to and increased XXXX. margins adjusted XXX GCS sequentially prior points quarter EBITDA basis XX.X% compared points of increased the in

growth this and effective the actions an saw benefit has cost the The expected quarter, returning the growth. done around we As team and XXXX. business in revenue taken in of earlier it job excellent GCS turning to fourth

and legacy GCS our President Dann GCS EWS during Bev and thank retired of I’m I is joins team Fargo join, recently all after Bev missed. credit joined and to his XX-year Dann most late the of financial for personally Equifax more over operations. XX tremendous experience Equifax card to excited she Adams where us career. to the XXXX in business and after of growth contributions services. career us and in Wells want be for a from including have his leading Anderson really their responsible my of from GCS to USIS, consumer leadership Taking transformation at lead leaves Dann than leader Bev who for years Equifax. Dann his was business. will

in reached to our quarter, some we transformation. significant our now EFX milestones fourth billion Turning Technology XXXX $X.XX Security transformation. the In and technology

applications US implementation launched the XXXX in on [ph] as three-year As we Google you and our we We fabric new XXXX. significant our to progress cloud-based and of momentum real during migrate Cloud. program the made recall, some to data move data XXXX exchanges a we data into the have and

initial today, and Connect migrations number work Wealth auto, of in IXI and the Exchange of cloud-native complete. Target environments As CTUE, our are

We and completed decommissioning next expect legacy to migrated migration ingestion data in from delivering processes XX months. early the begin over production as to six exchanges March. complete these all to customers of as system With

US By exchange the in property and quarter These US to we be property our of data our exchange our initial and our by exchange, are all meaningful initial completed. of expect completed exchanges, end to in of transformation technology XXXX are milestones x migrations both data have to including ACRO commercial migration second of exchange quarter third or cloud exchanges US migration program. consumer the scheduled XXXX,

platform at will and ability migrations for be as Ignite as data and includes instance. second management by Our that to is data will quarter the fully include EWS InterConnect own capability and the model Ignite in with customer of the ingest Analytics XXXX. integrated first GCP at Attribute end the manage Equifax their our Machine by end available This quarter own of and Learning for well their the easily customers

has we rolling And Ignite now Marketplace. using We out XX second continue XXX our development now machine patent NDT. Ignite US deployed over been with the to make explainable over progress weeks our for ago, patent strong technology models. our platform and Ignite a few Direct rewarded with NDT, in and globally Analytics customers learning customer

the Canadian by to the of the and XXXX, We’re fraud consumer is the and similar EWS by Consumer progress in of also exchange The making UK of and year cloud quarter end GCP and and with end. progress transformation. Australia occur our second Zealand New Risk internationally expected exchange known migration will initial Exchange with

XXXX first completed quarter significantly of We’re API to International similar InterConnect onto EWS XXXX. of and International. set XXXX, will vast with USIS, all and of also framework. Ignite seeing to migrate majority the our cloud-based the This customer of migrated US This migration expect our accelerating services US progress a By end customers migrations have in amounts customers through the early in accelerate on pace we by X,XXX which common customers. working of we’re approximately the is with

to As But the accelerating we’ve and our customer’s discussed pleased gives for pace technology environment customer a the deliver our migrations of technology transformation significant of new of transformation that in industry very making customer benefits with cloud-native we’re enthusiasm as hope to most our forecast. you part the this challenging will certainly migrations. leading the cloud-native technology I our customers. progress sense we’re of

We momentum as and are on continued have focused good we into laser move execution XXXX.

and to new our for component key long-term now a remained Shifting strategy EFX a muscle this products, XXXX Equifax. of

an XXXX over gave October. active products from have We the guidance you new and of from products launched we and and up up new we’ve in pipeline XX innovation XX% in XXXX

well growth our products and our strategy. fuel are integral to As know, you and new innovation

USIS times seeing Importantly, XXXX in that we product launches level were back up were are two the and in XXXX. to

It year and and capabilities future. a to data new in our cloud-native also and increasing fabric cloud-based we new applications our strong very team will customers. benefits of product a the growth is key and get in EWS launches. from as XXXX for new lever leverage XXXX capabilities product doubling focus to our had Equifax rollouts the unique Innovation deliver their product

pre-approval insurance developed Synthetic our customers inside Luminate Inflection new dataset launched allow our for one. USIS pre-screen vertical the of product estate XXXX, the several including X.X append jointly commercial take marketing broad fraud with lead score, and personal acquisition and scoring, Verisk. for Score In new in with enhanced of in and including which advantage and new email the ID loans lease specific data real for products to commercial which of identity x suite enhanced And PayNet we in and fraud or payment a in score and products new industry

other the income data appointment be is towards the around mortgage through expanded as loan personal including of and also centers EWS’s stacking data identification their their product product to new offerings part support expanded included a assets of data reports unique asset. to offerings rolled out new property industry. new hog income employment their and addition that augment path data which data well their as EWS to education, talent of for and product loan being

with new at International all also international international year a across had customer of customers. products over in geographies. NPIs our our XX%, strong over Ignite good is XXX with by distribution driven increasing strength installations The launches

prioritized As in new really rollouts innovation you can plan further products even XXXX NPI innovation we beyond. in XXXX we our focus driving invest see, to resources and on in and and and and

increasingly to continue as the important to us we in opportunities an lever cloud be for NPI front new product Equifax the particularly levered from has growth transformation. of

free partnership new platforms reporting picture score, complete rental a a track their profile so announced Equifax. to enable these score initiatives and changes of part recently data for with complete picture including as vantage also users monthly win rent more to of data consumers We report Zingo customers new as credit our credit to rent are platforms These rental of their reporting often consumers We the with education include a believe allow their more financial a and source present data. develop to from can part or partnerships over help for MoCaFi will also All weekly a of three consumers companies payment Esusu, their time. financial history.

our data this month, back XXXX control made looking Wrapping unique and up of progress and in XXXX, at against the our take that interest strategy. capabilities. of potential as We executing market our assets in with we India long-term EFX view business business. tremendous a earlier And to acquisition strategic India the XXX% with we tremendous remaining completed

a return leadership growth as market we’ll convinced We’re and data technology analytics Equifax company. to leading and

announcement acceleration the second almost adjusted well performance. return half in pace first as positions coming well half of our out with growth of DOJ and in momentum at close event and have positive related the of XXXX margins with in particularly of businesses is chapter principal for legal the double the remaining half EPS to the growth indictment as growth turn operational event our Equifax the that This resolution We forward XXXX the of to of second EBITDA and to for year-over-year focus XXXX beyond. Monday’s along allows another US on strong our the very our Equifax. revenue XXXX us issues us towards future fully cyber step

billion production we’re EFX $X.XX Analytical Our XXXX now Ignite well our in cloud-native cloud-native transformation implementing has and as environment accelerating momentum our as exchanges in major infrastructure.

actively our and solutions, onto new and and the about also cash talked InterConnect power based always and on drive speed the [ph] are savings cost cloud-based We API customers all migrating energized [indiscernible] to market, of cloud-native equally learning the products about stability innovation, Ignite new we’re we’ve environment the platform previously.

in We our for line the top and future. and our be drive remain bottom convinced cloud Equifax that transformational investment will

new Yodlee capabilities advancing focus differentiated This beyond. our acquisition on on our in the and in our partnerships and US data data our XXXX FICO, PayNet significant assets focus with continue will in XXXX by already expanding and continued Urjanet. data in We assets adding our through

the in last, security. goal big place leader deliver investments being continue In data for team Equifax. our We have we of of future data on to in an the to security make industry our right in

the team and leadership Over in the talent we my business. last broader two to years brought strong

on Equifax and We’re market to leadership. aligned growth returning all

as move and XXXX business accomplished into we by quarter energized in in the we momentum the all first XXXX. We’re

lot driving a turn will accelerate executing have of work of With future. let and we is over our focus growth John. but products technology our me us, in new innovation the that know still it that, front in cloud around $X.XX to clear transformation We billion while our

John Gamble

I’ll and or non-GAAP on non-recurring our Mark. were below basis, In $X the refer the fees. principally lower investigative be expectations that $XX discussed to one-time cost GAAP in incident for Mark the our continuing cybersecurity a fourth legal and million to referring operations from excluding million as results security to and The but fees. generally accruals of and due transformation and the related Thanks results quarter, $XX million well. to cost we’ll legal financial million represented total includes legal technology $XXX

with of inquiries mortgage were consistent with all in line X.X% quarter October XXXX related revenue in for which just were the inquiries In up fourth expected XXXX US in October. mortgage For what Equifax XXXX, we of up over we had versus is almost what XXXX revenue. over had inquiries. market represented expected XQ, XX% XX%

As a XXXX the provide is estimate for credit we inquiries. reminder, market mortgage

our estimate MBA, multiple including mortgage Freddie. originations and in We base forecast dollars third-party Fannie of on

about of originations forecast current flat Our XXXX. in

slightly meaningfully originations on only Inquiries than believe mix tight X%. we positive and MBA down As XX of more order mortgage versus originations to the principally can basis very points of forecast current the timing be due from inquiry closed lines.

for points was cost million XXXX. XXX EBITDA down adjusted up XXXX $XX was XXXX XXXX. non-recurring $XXX and margin up XX.X% was basis general from XQ, the quarter In quarter from from $X XQ, million expense basis corporate XQ, expense XQ, corporate general the million excluding Adjusted fourth points in XXX

margin overall adjusted positive EBITDA covered mix as margins revenue by growth discussed we in October increase in the and and high in at driven is year-to-year rate USIS highest the comments in XQ, Mark’s XXXX. As as EWS

approximately margins in XQ, for the tax for international rate these our was and offset and in Growth have grows. GCS we provided increases. as the effective used investments and XX% in guidance as well calculating partially October. from strategic EPS USIS leverage adjusted declines XXXX slightly XQ, corporate The EWS below XX.X% cost Margin in XXXX as revenue on

XXXX expect effective our XX%. tax We rate to be about

made following in the million million from the XXXX. down, The driven of XQ, by flow $XX settlement was And non-recurring in positive and such Full million $XXX million of the in $XX second more were year announced decline than $XXX restructuring in XQ, for payments quarter, of payments XXXX operating taken payments XXXX $XXX XXXX related cash made consumer items; to was charges were no the XQ, XXXX. Equifax million.

million, from $XXX year-to-date capital incurred the up or $X spending respectively $XX XXXX and million and of XQ million down projects Capital in was XXXX. cost million and $XX

Excluding cash million expectations. or regulatory payments flow litigation to XXXX year settlements free full than better $XXX was actions related our above was of and

point XXXX. data data XXXX Now of take an fabric GCP. turning a important Technology XXXX Equifax transformation let’s exchanges for move accelerate is look at as the to at Security we and our

transitions InterConnect at customers to API to framework our transition identity our and fraud Ignite using and systems customer our new Our AWS.

put these to operating of will other system systems or take to and production exchange generally running fully and new months a to production start a depreciate our cost new from we begin the legacy system. XX into six these the we cloud-native positioning of As It systems incur cloud-native to cloud-native will new transition cloud systems.

period of as time the legacy the the systems. and operating cost that both will well During other the new cloud cost system as incur we of operating

As expected the XQ, not XXXX XXXX year the of substantially decommissioning legacy transition systems a to and and occur late XXXX. is is until

will transition these incur additional of We cost XXXX. much system for

these any depreciation of cloud For transition decommissioning of $X.XX cost $X.XX additional approximately this to legacy XXXX cost two-thirds and share. system cost additional the With per expect one-third system in net increased representing to this about cost. we of be representing range of savings

cost opposed will to decommissioning cloud a XXXX. benefit we the as XXXX, we in systems duplicate P&L into to exceed As net we savings resulting incremental the move from in of expect the the legacy incurring cost to be the

represent plus transition expense savings cost savings data of the and accelerate generate XX% and development expect and innovation in rate. significant we have sold in technology to accretive new cloud-based we of complete to XX% and will under sold growth goods said our COGS is to cost applications XX% of when past, of our total to in our we products portion cost technology goods just portion expect reduction that the this cost spend both to And single and the be in new fabric our capital. As

flat XXXX. expected adjusted be to will Now expect guidance, $X.XX revenue total by of constant for of continue and with Australia employer with and revenue will in between revenue is economic and verification XXXX will Europe. X% strong impact down. revenue almost revenue digits improvement be expected to deliver digits flat negatively market revenue in second $X.XX. to growth billion double-digit by mid-single strengthening about be reflecting services [Indiscernible] billion very the revenue half USIS to mortgage mid-single will X% about EWS to to up growth $X.XX grow due EPS X%. XXXX we services, to International be growth in is US FX the in growth in expected currency XXXX.

revenue and Canada will growth continued businesses. and Direct with XXXX in UK ID Consumer mid-single grow partner in in digits business GCS at Watchdog our our also

We Consumer expect growth return to in XXXX. to late US Direct

share currency growth reflecting to For XXXX, to XXXX. versus flat be approximately adjusted we to expect of $X.XX constant per X.X% $X.XX EPS

eight in As to approximately points XXXX earlier system is represents $X.XX additional [ph]. loss impacting of transition share I in discussed EPS EPS. increased percentage adjusted $X.XX This of and depreciation adjusted per growth

with discussion which growth to add adjusted margins Equifax. system X% clear the power to XXX transition by will basis this As we of is our EBITDA which from are depreciation, transition of picture Equifax. XXXX the adjusted tech such better Due the excluding the adjusted believe will helps EPS substantial in This costs. additional to to more impact earning a approximately expected XXXX of increase to XX% you give we true basis expand the focus includes XX earnings points. post-Equifax XXXX, In margins EBITDA of drag points power XX reflect about on in

EBITDA XXXX. basis XXX to adjusted expand margins in cost between transition this XXX points would Excluding

environments approximately we be and As we cloud legacy In legacy mainframe cloud $XXX and as cost and migrate incur environments. technology new the will in and XXXX regulatory to XXXX, customers does discussed $XXX comprised in judgments duplicate not the in expenses. any include place we to million or and and XXXX legal regulatory and decommission during expenses the expect million than $X potential other occur. expenses outcomes in cost less million of they security This transformation non-recurring non-recurring server of should

There from XQ, longer as XXXX, quarters. we we mortgage impacting of about $XXX these we are inquires stated have previously, and expected third however XQ, EPS. expect non-recurring In fourth well are strong in spending XX% expected inquiries be year-to-year. be XXXX to over market to several to flat the XXXX all US million. decline total to expected no individual are up XX% adjusted the important expected of assumptions exclude each and for inquiries as XXXX is to quarters. as will be expenses Capital XXXX flat, our remain approximately inquiries about XXXX in are in

by in to The and expense principally are million. equity XXXX. costs was versus excluding corporate expected corporate increases expected and XXXX to million Depreciation $XX are is compensation. technology expected increase XXXX to $XX are million. approximately cost depreciation line about the as well as increase corporate security over increase year-over-year $XX cost

security cost The new we higher as legacy XXXX of result we cloud-native partially high transitions the and maintain security in both systems. technology ensure a levels and to system invest of are in the

a at security pace would beginning of will costs Over the in XXXX these we technology $XX corporate to total and half in expect systems late XXXX. in increase legacy more of moderate. decommission we XQ, cost As occur XXXX, rapid million

occur to two-thirds XQ, million incremental XXXX share fund the expected in that does incremental About not to first Interest XXXX. any guidance approximately the per in borrowings or the legal payments consumer known. that associated this is $X.XX not in our increase timing borrowings in payment as expense $XX of still $XXX is of settlements with XXXX and settlement XXXX. remaining reflect XQ, half increase about reflecting will legal the million of Note

expected rate XXXX XXXX is tax be slightly than at Our the rate XX%. higher to tax

and dollar the to seasonal in and for lowest XQ the with revenue pattern highest EPS and being expect normal being terms. continue We our XQ XQ adjusted recorded

expect rates in growth have XQ the rates revenue we’ll of terms and EPS. adjusted However to year-over-year for growth highest

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

EPS FX per in adjusted to tax by adjusted share adjusted X% XXXX expense negatively be $X.XX expecting are impact by to share. per We and XQ, $X.XX impact by XXXX $X.XX in EPS expected is XQ, to XX%. about versus revenue EPS expected per negatively is interest to impacted rate The XXXX. negatively over XQ, Higher be share. $X.XX

operator, for that up open with it please And questions.

Operator

[Operator Instructions] and our first question will come from Andrew Steinerman with JPMorgan.

Andrew Steinerman

to you’re Equifax’s revenue to supposed for like XXXX which be growth in and X% how understand currency just to of is constant flat be as I if X% XXXX so, for [indiscernible] you non-mortgage word part mortgage of XX% business revenue that growth the using team’s kind a in proxy the to know your that rate. expectation inquiries wanted be revenue would high about single-digit

John Gamble

Freddie we on to get The that have of per information year be transaction and credit the and inquiries inquiry. inquiries then is get that exactly and each overall to as use let an then know, forecast and it we simply in do inquiries we sounds, the and we as we with right. I terms forecast for an based to we’re by the credit translate those closed the trying of originations inquiry what MBA you number we estimate Fannie and said, provided loan mortgage mortgage into forecast It’s

So a it obviously in isn’t does the there’s for the reflect a it inquiries revenue necessarily year. because reflect, pricing changes proxy

growth also in we in new higher. new records we products launch drives also that get so our get We mortgage workforce from solutions growth and which

Mark Begor

using the part mortgage records, some our penetration or customers revenue another credit times the mortgage Twin when four two that’s they’re their with our of model. get also in three so We process times, times, reports

John Gamble

Absolutely.

index. send we historically, the know you outperform to it As inquiry

we bureaus. is terms the So the for of view it think request you to a the information number market is to times in as will market what to of do give going credit

Andrew Steinerman

you’re your constant to kind revenue to of do X% is so that in headwind, currency assuming single-digit to John, do the was constant growth revenue high currency non-mortgage would the X% part the segment you growth right? XX% second of have revenue

John Gamble

as going in grow continue So now kind that mortgage outperform again of but outperform to to EWS the revenue have non-mortgage you certainly they certainly do inquiry segment, keep that they higher. We’ll the index. records. that we’ll mind indicates versus going our – Right? is It’s guidance to be to generate in example for

just So you that use we differently revenue or credit the the directly perform proxy inquiries than certainly because can’t for circumstances. in do certain

Andrew Steinerman

you. thank Great,

Operator

McVeigh Your next come will from Suisse. with Kevin Credit question

Kevin McVeigh

you EPS or in be back Street the is on right [ph] the EWS degraded mix John, like is inline. if a leverage I the that’s the $X.XX, where model? $X pretty to that’s heard where would than coming that in lot much else it depreciation, Is better through seems that revenue the

John Gamble

Can you question didn’t the time, ask more follow? I I’m one fully sorry.

Kevin McVeigh

relative versus than It kind of to there’s Street that’s heard at $X better versus kind of Street the outperformance that it to so. that’s to revenue is, margin looks or that kind the right? that there’s which I right not $X.XX, adjusted would is if at EPS where mix of or there. is $X.XX $X.XX Street, depreciation $X would the about like thinking $X.XX headwind you was I margin that depreciation Is assuming deflected where guidance and a the the versus am I your of $X.XX – Yes, guidance the be just the outperformance in some solutions imply driving just I’m workforce lot to guess

John Gamble

systems and decommissioned. share $X.XX the both both our duplicate costs running we’re the cloud in because indicated $X.XX increase occurring are we legacy to depreciation legacy it what for systems until was we’re and per those So systems

points XX% year. that growth about and say did yes, that’s XX% eight to the So of we is in

to and how the go in was to in would going significantly see our fourth third earnings third can to that, as see I I specifically significant a going So call beginning depreciation prior increased to the Street quarter specific we pretty we address our much quarter depreciation cloud where pretty also were up, quarter cost in following relative indicate good understanding increases can’t generally XXXX. in that to the we’re thought there XXXX was, I So that. But guidance did think right? we

information before. that think I was broadly out So there

Kevin McVeigh

terms you’ve potential what recover already that the that [indiscernible] the incumbent writing with It’s does open in does helpful. And just insurance some driven maybe not can or outcome indictments cost the of of those you then change incurred? the that

Mark Begor

coverage our as far recovery. I insurance there think advantage taken as of we fully any

we’ve So last the charges year our you and [indiscernible]. of charges expectation we the is, took will we that be The with in are insurance. net shared took fourth Equifax that number quarter the

Kevin McVeigh

Super. Thank you.

Operator

Next question with Barclays. Patnaik come will Manav from

Manav Patnaik

But being I you’ve how talked all at improving Mark, your quarters USIS about progress expectations. few over a the in the the pipeline time of made. product short the in ex-mortgage course the same where the and think of said is the is you year, you’ve been lot

your curios, mortgage for just expectation help was gap that for USIS could and is us what I you XXXX? maybe if bridge So maybe

Mark Begor

that Yes, I a regards be expectations, mid-single how I here, digits. in we’ve we think expect John overall that to that’s to bar With talked about USIS high got operate.

making I think return that that’s great progress. want to you It’s to its Manav, business that rate. we growth historical know

XXXX I now was business ago were and getting to the on recovery. know out so we’re that fourth customers when just into year in negative with quarter, think four was box and or with quarters penalty you call flat of that a their mode this we the

building, see progress making really XXXX. win as far rates We’re great into their their some pipeline is as we and momentum move positive we as

to business improve year to continue just to that it historical rate, expect We of as expect it’s go the growth a return and we its time. to through matter

timing of we far gives just non-mortgage as There’s we’ve every one deals pipelines, pipelines It’s win confidence go the that we’re deeper better variables into rebuilt rates cybersecurity which since us as talked that of seeing as the being that growth. there and XXXX. about. that lot still Virtually incident the quarter a closing

John Gamble

I to Andrew’s sure, question. to make initial want just

sure, right I was make to has terms the than of so mortgage Equifax performed better clear, in revenue. historically Just our index

your revenue on mortgage our analysis market to guidance growth. of doing as implication So terms in our you’re implications its the again of non-mortgage

please take of generally a mortgage look of the index fact You we’ve and revenue own history that terms need growth. significantly at recognize our mortgage to the outperformed in

Manav Patnaik

just John, guidance. two the it. Got clarifications on

India you into of little this that’s of the on in one-third $X.XX year or was just so and said savings that help you the please with lost there how bit that year incurring you [indiscernible], the which prior XXXX? can me other the $X.XX that of to from it and is – whether any So a then I one, M&A can you any just [indiscernible] the baked

John Gamble

we acquisitions thing closed. include guidance have our only The actually is in that

acquisitions So be included. new no there’ll

In cost. – $X.XX in $X.XX the system transition terms per of you’re about share the asking I think to

Manav Patnaik

Yes.

John Gamble

been made $X.XX investing about cloud. And two thirds heavily systems, go into of years, depreciate of they so production We we’ve several over to incremental to as share is the building $X.XX two start production rate, them. systems up is said in obviously, production That it we new per things. depreciation cloud-native the past

we depreciation off said XXXX. systems well to will for versus about cost while related of that, in period costs XXXX as increase our of cloud incremental about, And thirds time it substantial we’re extended migrate to one-third in $X.XX running be duplicate as $X.XX two parallel then is an we because So systems in of the operations legacy in customers.

we’re the So $X.XX share. existing cost, in system cloud per cost system of of that the of the incurring during $X.XX to transition effectively two sets about we and systems as double said, premise the of period would cost that well as cost of the legacy running the transition one-third be period of

cost on that company. two we had I expect and duplicate that of the And systems. positive We into start related the move we actually that sets to shutting as legacy said, move to the the costs specific become cost running the down comment through final to is, cloud where a XXXX for systems will will positive, savings we a made become exceed year, of as

Mark Begor

Mark. add to to just Manav And that,

accelerate those here duplicate for in that’s migrated to John going raised those going you as the as a aren’t forever we’ll talked future second be get we XXXX they’ll a asked in one, basis know that and fully I that lot start, there’ll in our decommission and sometime the about investors will and some have give think around XXXX turn number we’ll being in be you on cloud guidance in system the cost are guidance our know into of transparency the of point and because now some as that. to John positive, to that on numbers and you

element. that So that was

to item down shall the if is there on that accrete temporary number [indiscernible] non-cash years then going for a which way the increased we the in be our a investments its And amortization of amortize element as that’s that’s amortization work of it you thing, will, and will same cloud cost.

cloud know in our our migration. reduce spending as to As is we XXXX complete the intention CapEx you

you, also and give other what’s So about that which guidance so additional guidance side. our be visibility intention the on but is John gave can our the about you to aware Equifax of like think be inside looks what clear

Manav Patnaik

you will John. what XXXX? be in just all [indiscernible] And I deal contribution, because in that know M&A

John Gamble

think quarter X% gave of XXXX. years. It’s we acquisition PayNet second was we relatively the acquisition move over the total closed significant revenue of for that not the a through amount you I of In Right small. and as and largest some revenue number XXXX just it you the if decline indication should the about, so think in and quarter fourth was

Manav Patnaik

you right, All guys. thank

Operator

will question Cowen. from Next with come Georgios Milhalos

Q –Allison Jordan

the George, thanks This I my Workforce follow-up is quarter. about question. on made to the Allison on Solutions taking in for wanted margins for comments

we heard think royalty about decline driven cost. the was call out by to I just I’m segment third-party how else in curious anything is that I going there should year-over-year there and maybe think implementation mix margins forward XXXX?

Mark Begor

that Allison pressure some on put margins. quarter there the sales was some which in mentioned that also fourth and cost I Yes, additional business

going XXXX that expanding and also think margins that’s John I a high that, margins don’t expect in change margins we forward. we growth but inherent to expect see any in said business expand that in we their that business

John Gamble

well us as cost. as two obviously items are to affected Right? third-party just were cost the sure quarter different expense. royalty And clear; make the the costs actually sales implementation So are you separate from those that increased in

Q –Allison Jordan

mentioned follow-up, from impact being curious solid I expect great. should helpful. just super the And that one Okay, heard progress this Australia. any made That’s data we you. in in positive Mark I’m Thank then you of XXXX? quick

Mark Begor

will we’ve usable it positive that there lot we marketplace The information from it take XXXX. the good we and in working have to which news positive the turning the now for as data obviously through a team a takes element into will be is, it that contributors the so been all to credit it. lag go in, to can other comes we we data expect get get hope that Equifax to first time be, into bureaus year. the accretive then we and a where markets in that as Yes, of We’ve seen the data

Q –Allison Jordan

very thanks much. Great,

Operator

will Mazari with Next Hamzah from come Jefferies. question

Q –Hamzah Mazari

they’re could to just, sense? give us just long is sales you your to is sort if question first a versus talk how currently maybe much My new growth and of today cycle how pre-breach, just on today about contributing products

John Gamble

on really that So reselling can depends a that sold transacted so and we’ve within a sales something be initiated period. the cycle it that it’s if batch product something sometimes effectively product, it’s historically

For implementing a a really can over period new be depends online the the customer for implementation the year service and service. it on

terms In and years. prior contribution of XXXX NPI product in versus new contribution

on product the is of we period that new the XXXX so that a is to we have see of which in lower XXXX from level XXXX very certainly level we fact go generation then and acceleration but into the period good we revenue down we new – into saw I so to think XXXX. certainly of seeing we signs new clear revenue didn’t generated what product because think XXXX that and recover as beneficial was start level we’re as generation, same launches over move and will we try historically XXXX the what XXXX, products the in Obviously forward we’re XXXX. very of seeing be of product was we

Mark Begor

add to just comments, my heard that. You on

there Equifax’s with New time money area all products. I’m impact by cybersecurity innovations to investing some an our future and our rolling mediation to that new products that number is that fabric priority. on real pleased new cloud having And forward focus you performance and in or positive and our efforts in the more are our to to of transformation else around obviously top priority us the is central out, we We on allow going believe everything going products continue. in XXXX one products to strategy. our to highest this and is going in have really security accelerate incident having that on it’s us emphasis to saw is the of following pressures and the we’re make will continue a even had single And in resources, going in XXXX this the of cloud and data line the a and years it that because invest

Q –Hamzah Mazari

how similar Any Very cycle much turn directly sense Could rough linked the helpful, there? question. know it your is any versus influence of is just services you you of company? a of I’ll credit to portfolio of portfolio us over. to follow-up give percentage of of a of data how just much sort comments sort the sense qualitatively

John Gamble

if and and cycle, think be we published, I business it, best take you is for can units published think show so at based best to that published by think the best a to thing the of quarter you how one can for earnings there’ll is, I source impacted take we suggest today. the revenue it’s by – the segment Equifax judge obviously look I each on the probably the last you. In you place we for sell market where and we look and credit that’s the a that

Mark Begor

and the managing should by you it, on focus credit to the be a industry the of back I book originations cycle think is may during and new aware know down other our through you that but shift lines. customers obviously business come thing our expenditures our credit

cyclicality other to an is the businesses. element element been there’s our different then to So versus economic last cycle at Equifax mix of quite and it’s the today it counter

think last of cycle. cycle continue of then Solutions that’s we the about data credit is were Solutions monetizable and lever additional add and new has ability are in size We’re obviously credit element [ph] to cycle so if different ourselves, a Workforce how our a in we records another to economic the larger that there’s internationally Workforce and very scale that in business second, than

in We’re very credit in we were a different than positive the last cycle. way

Q –Hamzah Mazari

you. thank Great,

Operator

with America Bank of next from Bisbee will Your come question Gary

Q –Gary Bisbee

it a outsized quarter I growth was and to quarter was marketing more normalized slightly financial hoping clearly from in three number. dig Part growth little and I to last ex-mortgage understand a guess USIS slowing more it trend the positive. an organic to bit maybe of

give and of it end understand you. a out maybe, that we to helpful? think just that you part how little and into you that QX This called be color quarter market this the the will of us that any a weaker. other about Thank cadence to couple were of Can

John Gamble

our then that specifically the organic and growth into and the talked Direct [ph] impacted do we the is quarter fourth we recur which was was that business obviously the talked in think and directly we of beyond with also had we where because DXC we the and second down, didn’t script part growth telco down Mark’s was nice transactions a occurred in that in XXXX to of competitors that sale our yes path we think I our quarter as was that get XXXX. about period. reason in see one-time, but very And it we

move to overall, level XXXX think nice expecting and see into non-mortgage improvement our of we’re beyond. organic, in I we growth So as

the are trend. see do good, continuing straight So but we happy the and are is very like with the it, very growth sales up, right do said improvement so doesn’t We level pipeline and trend that of we like that we the that would metrics always chopping trend, performance. outstanding it do we be mean is the of

see So we’re overall in to and XXXX improvement to in to certainly relative expecting where we relative the think XXXX total that nice I ended year.

Q –Gary Bisbee

and then Thanks the follow-up.

Just preferred still like less with in historically three-year that guys XXXX is sort below are of a NPI. improvement is in mature – terms that? XXXX it growth, and in part development build pipeline to you talked pipeline as lot the on had where revenues, the you And a and about of to you product you to NPI was mid-XXXX but the absolute back

product to that those that lot to a stuff some of you process might had as it’s trying in in products Getting think back XXXX churning, a normalized fit of three-year Is the the if challenges. want expect get particularly one were really the should New we USIS? you in fact basis. the way you business launches

Mark Begor

of hit the challenges a we’ve event. lot You’ve had the cyber that following

zero of pipeline event and cyber First place through of before in the virtually was to the that and for XXXX. – the had the went bulk day a balance XXXX happened pipeline we

and quite I and actually were back growth XXXX getting real more XXXX grew freeze protocols XXXX able or of XXXX for start about into John it’s and our you investments mode through our know Security where when we comfortable as I on above and much security As that moved we we believe a it know, to commercial customers pipeline been finished building and were has don’t and seen pre-XXXX was rapidly we’ve in that. into

to in the revenue. a about taking real a three got cadence different years there’s business got also wouldn’t to commercial think that who’s leader pulling to forward. him, get full a intensity around product new We’ve real a I

maybe three-year times which go meaning the unpredictability you their process there’s deals the through is that talked many months, the maturity IT that about that we’ve risk team cycle implementation these got contracting point don’t some deals, but then lead to team a want think you’ve team old old, then to could go I one-year they team customer in layering. operations it products a in have six have customer. there, marketing pipeline with you course, the know that sometimes and a or the element then you before in in the really to include or your product likes upon that different mature team mode you have a we in sourcing their dependent a test less and of old two-year each and their

XX-month build is kind three-year have today two versus a we historical take of kind sometimes Our time. more pipeline of and that it in call of that deals there amount of

I activity we’ve going get layering think we of that us the in the in quarter pipeline, USIS a of building the the the the we’re which us some rates pipelines pipeline of in fact better commercial better create that about enthusiasm the half first forward but in half XXXX. gives second So got the tells win choppiness of that seeing year, as out first that the continued progress into

John Gamble

saw one that’s prior in new we his XXXX. Mark script referenced deals higher specifically and than to

So good. the we think is momentum

Q –Gary Bisbee

Thank you.

Operator

Next Morgan with from Stanley. question come Toni will Kaplan

Q –Toni Kaplan

terms and the execution any done you you come do? what two-third you Mark, would lot tech through and earlier color how lot much left mentioned already you’ve the can some mentioned left some been the in is to In an about helpful? color of I have items be a risk or color still guess on give the that way other that my of just that just what interview you’re us a done transformation of in you there day terms on is question and is, to difficult have to

Mark Begor

that term Yes, you of tech the use for you a I first the a not talked know, these on. a are that, a about But meaning bunch do faint of work of lot off comments to risk. lot transformations as kind earlier heart Toni to my and there’s think and

We’re before. timeframe. but around when three years it done the and a transformation call like that this it, at whatever done – achieving I’ve milestones this And them into them kind of obviously I tech I’ve think scale, before we’re about not

databases sure XXXX. fabric. making cloud have in single you out get can all, does in a we we’re [ph] our into work. think, the the to big make Meaning, and databases That’s of data did place, from technology to I you that of move know applications First from we a siloed legacy going

We’ve hundred ones US. I our XX exchanges have here we some the close we ones started into moving But big to around big and know and – is, don’t probably fabric we what but new it’s the moving know number as the in are exchanges globe couple a have Google that you working. Cloud

customers have it. accessing We

is that’s work technology So that think risk kind and will we’re one, the I of number hurdle. over

extremely The customers got the to customers. that from been positive. very your clear second we’ve is is, you And you feedback with migrate

given none, very if If capabilities, technology, going deliver possible the industry with to it’s second it’s about security. security that’s the a is that do to with do not focus want today you you and latest you’re in that latency in the to always data it, speed customer to has deliver company think business a going on on

our it, just and XXXX, that. and Every team. all in was card IT into is earlier wild complexity XXXX customers my make an have their fit getting schedule. about into own sure So XXXX do to I we of has for want the customers we one talked got one to comments there They priorities their

to order we in of heard we’re that element different forecasting as we also and thousands and off time so So there customers there’s takes we’re and progress I talked just customers mainframe transformation. of in really decommission moving but you looking that’s centers that each about real we have it to comment are from But savings or move of get different data environments, those server scheduling our the earlier. course need the that for our all or the rolling. Meaning technology

technology it’s’ execution we be to we’re feel the our to around migrations, and and that around there. good around work you’ve heard progress done and there’s making me element So customer real really about transparency still the but very

Q –Toni Kaplan

the guess Thanks. Great could around start repurchases? final with like share and you then, thoughts the almost legal behind new settlement allocation payment. pending capital any we I when seeing notably

Mark Begor

know pulled want towards I we that We’ve in you which to as in leading we you think framework that our financial XXXX. me you place. back been clear with were put

We’re the three and capital framework include sure put we had clarity make finalization that the in issues. model. to will before clarity closer to in getting on place areas We’ve about the One We’ve we of announcement our allocation that US consistent. that real was, talked very we wanted of back which today’s settlements been timeframe. with legal

We’re at that item. with that stage first

our further Number year ago number every some completing is, in with in week I’d timetable, get Really than tech a clarity were to along even and we we already that our transformation. in USIS closer that one two three say was day confidence We our and fourth and execution, the confidence quarter about the and about we’re USIS. that. having talked and way

a long answer, looking we’re for just that XXXX. place the way sure it’s in framework that we put our back expectation winded So pacing, are that to in

Q –Toni Kaplan

Thank you.

Operator

will Warmington Next Wells with Fargo. from question come Bill

Q –Bill Warmington

hat the It’s I one situations, back to, Dodge. of they out, of pulled thought Jeff was tip think. I A just when those, me I in

the strong some color I So new just stats one on is, to my quarter. fourth get some the you was hoping question in new gave deals there.

additional are going to same the into mentioned but customers. the wins new some [ph] for sales are back, how customers, some many to new are many just how many share win telco You win how gains,

Mark Begor

Bill hard that split, probably the it tell above. just of it’s it’s would to you all

is competitive those, we’ve work got First a on, so handful hard off, that new in one, we takeaway your but and it’s wins of bucket. as all that’s

of fuel a we their are the it’s got grow products talked New about really Scores some butter, in rollout really Ignite customers new whether the InstaTouch that Those products and on are place. for or our in solving or helping fraud. market us, that originations, we bread

we and of had share then gains, positive a handful that’s So a too. those

mine. for forward of new it’s real that is gains new we tech that’s bringing your of question expanding Equifax marketplace. to have think hope and our priority one products going go XXXX give funding around talking then the in look where for broadly new around new It’s fuel us into course of be products. real in focus investing as fuel your you’re to transformation It’s in more you the fuel that’s aggressive really we and new to going comments, I think new XXXX directed. get growth I leverage, USIS penetration and beyond in to products, a But growth and sense for customers, a existing products share either I is the customers, really our about verticals, big a in. is with are

Q –Bill Warmington

that’s the for an Verisk? follow-up how the on partnership, you Score to maybe with going together put FICO question, the get And and Inflection see that in just wanted you if update on been comments some

Mark Begor

be and globe, that’s market that announced customer so got in United March we products with rolling an first and last FICO we’re here we AML some pleased know, in partnership, so. and we’re in out in a going in to FICO in system we the inside wins with FICO there data there with handful the our integrated with on decisioning the the think of including we’re KYC first I quarter opportunities Yes, got around the a States with were POC’s, customer marketplace handful you our other we’ve performance piped the some of

between and that around leverage capabilities our respective a we’ll the growth how collaboration FICO great Equifax can there’s forward So forward. we and marketplace going in look to

is that’s customers another to capabilities solutions the what I like is really partners We’ve to far, new, FICO leverage new market in Verisk to marketplace. it’s we strong response just had to good another it’s the to collaborating Verisk example like so do respective marketplace do our just example. really and from with I and Score and think bring asset or like

that is marketplace. So newly much the launched in

Q –Bill Warmington

Got very you it. Thank much.

Operator

with Meuler Baird. question come Jeff from Next will

Q –Jeff Meuler

XXXX. It is guidance CapEx like for given the sounds continue to the in going depreciation to that build XXXX,

what you once can and basis there’s ongoing So an EFX you’re on sense as and spillover of give is us development some of through into know XXXX I XX% go revenue XXXX, some CapEx I CapEx. percentage OpEx because a savings think are to both

one less would of that So the EBITDA can per get so be we to CapEx. questions,

of on gross the figure within to when the XXXX two, trying substantial that? a Do get you there of just reinvestment, get the that tax step in understand of be you’ll XX% and the up majority COGS. on part savings on then And plus could out timing I basis

Mark Begor

me response my quite financial you into framework tactfully so you’re to give that. leading us best Jeff, a let

and XXXX going fund to down the XXXX We’ve – we’ve been and are normal continue the you the meaning rate XXXX think EFX going very XXXX CapEx, the the incremental good guidance, But in XXXX, versus about more we’ll had think incremental with can I you and we’ve one, ready what number think expect in incremental it transformation. financial future. our questions XXXX, to or rate allocation XXXX to that I very the shown dollars for been come this other XXXX clear in capital that XXXX we’ve that’s that spend what but so clear forward a really had give we’ve we’re in the and like looks in on of side. first framework cloud you not

also in of framework something And savings future, clear with place. savings then rate we’ve meaning will part to CapEx, set be we the been see single full standardized will as get with to the will a we of where we come run development future tax in we you expect act that the so to when financial [ph] you be products, benefit see pointed that a a put post-XXXX new - the in out, expect that

we accelerate savings, to within that in On have expect numbers been our year from decommission clear going tried expectation of to real for as view we ready to sharing is, legacy into that we’ve you we’re we XXXX, we’ve guidance give will on and see both structure savings forward. That give XX% for technology, that, XX% some the also around the as guidance our feathering savings of to from continue through that continue XXXX run but we not cost well cloud. cost by environments operating operating cost inside our and legacy of our is rate from to what to technology going duplicate as the that that cost will

investment. to can Equifax top new we’re new that you driving with from ability from are our future along with investments benefits what like part rollout products we – accretion you So looks those three two as the this expect to big think know, in more technology as the some line of benefits the tech about

Q –Jeff Meuler

that [indiscernible] on and data color meaningful hub many Okay sources data [indiscernible] just just specs? or data income how like EWS how concept this is new then, additional any the beyond

Mark Begor

Jeff. Yes, it’s element another

us it’s think customers lot as better go to they their a a to out, data a we’ve get data, decisions that of sets sets. of other to get been we other and data more and think has on We either and unique only those growth clear to go EWS. data think for position acquisitions data that to with building is our in really add income us for and provide lever data partnering verticals to or set our another that have it making very know very I EWS you results employment customers lot and the for that place

with of that customers. view with best being rest theme in about part around do both is our assets the of and in and community it like above – It’s bring in others the think way while leveraging unique the inning the data It’s with and you core the that performing Solutions can more Workforce it We front that clearly investment value Equifax. internally team it, I business. in opportunities as but in things our in with what to business order its market also second its other position to capabilities its the

Q –Jeff Meuler

back, Mark. Thanks JD. Welcome

Operator

Our next question will William come from Andrew with Nicholas Blair.

Q –Andrew Nicholas

set competitive You ownership little about then a think faster decision in there? ECIS to in Can to bit in touched today increase briefly color positioning business your that India, XXX% the you on about And any market. more ECIS’s talk your stake you be is India would obviously your on how opportunity which helpful.

Mark Begor

been own It’s of makes we of owning like for market had business in time. and to the the strategically we’ve to easier our a a control whole know easier and then destiny. you We as lot. opportunity kind the operate, it business long XXX% We

that. So forward we’re very on pleased to move

a market to want a we be I grow. want we to it’s market it’s that think in,

build got ago solutions one and an of just started is couple and some market. big We traction example, it. and may want that’s play we’re it’s You know we that a on a that we a to workforce that years think market doing a in India that’s

Q –Andrew Nicholas

then, revenue organic guidance. and on back Great growth just

be to Just drive Thanks. changes bottom mortgage you that way, you would can volumes? to asking what guide, consider another just walk factors you and us the through off primary outside so to of top inquiry that the any and

Mark Begor

want see I’ll is Their still it’s event accelerates Yes, great to not to clear momentum, don’t before when. which Obviously that far not a thoughts. USIS positive. you if was I go convinced. too that’s we’re it’s in the recovery a give where matter a back we real few and this. if, only I’ve been very cyber it

on For and some positive think that’s so a where term we but as what a think still gave you one. the little I year guidance to we’re still International, it’s a and do in, there, know, we to near long-term us, be, expect very the battling of going I while uncertainty Brexit it’s over headwinds. that’s economic economy resolved. headwind. to implementation bit There’s some so

wildfires there issues down, be to tends impact Latin recent are some have settled America have but down and temporary course momentum. The we’ve economic to and always there seems positive Australia, it challenges some there, seen saying there. of could

they in got we continue that perform in some continue perform, to a lot factor year positive extremely our and bedrock of So they that’s another confidence that’s to momentum, last well has perform of very, Workforce XXXX. I of then performing inside Equifax think there well that great and the very quite real in to kind is obviously, expectations significantly Solutions we’ve above is expect them

John Gamble

Just wanted clear. to be

and a guidance or total mortgage inquiry provided mortgage guidance say just revenue overall for to didn’t have for We mind mortgage started, in to inquiry provided has in that’s non-mortgage and should going historically our substantial, revenue we we So we performed judgment inquiry the the mortgage we did [indiscernible] market, keep again make So but you’re some repeat yourself. overall that better to market guidance. where flat so right? give than people guidance revenue cases

Q –Andrew Nicholas

Understood. Thank you.

Operator

Next from Sachs. Goldman with Tong come question George will

Unidentified Participant

George. on Brian for

growth potential you long-term know So target guidance I customer X% your believe [indiscernible]? below long-term which comes haven’t To financial your prior reinstated conversation. targets what was looking at yet, XXXX on you know I to but revenue I do X%. degree based

Mark Begor

clearly XXXX, we’re we’re gave framework financial place getting that. on want to similar close question long-term long-term things really put We and back see We towards that earlier is in ready XXXX. the to our not that Brian guidance for a Again, working about to guidance. we talked we’re in although

think leave that. I I’ll at just So it

Unidentified Participant

baked that? Okay into and your for are guidance. revenue level of increases What then, price

John Gamble

price there specific in didn’t increase Generally some We speaking price right. level increases, are give on the market. of information

they think reports for about general, those, if price to tend credit However overtime. you in down go in

So we part haven’t given specific of price this increase guidance as process.

Unidentified Participant

Okay, great. Thanks.

John Gamble

have we And time operator, more. for one

Operator

question Stifel. will with from Right final and Shlomo come Rosenbaum our

Shlomo Rosenbaum

it there’s wondering could terms though little mortgage that mortgage of positivity track of up, little is lot if The are as I just meets the just the to bit Where terms used that was we not just it a out sales sales give rubber us excluding growth bit you’re was now actual the you so down. we revenue? just and a doing the road coming the It’s more, the organic of bit little and in wondering, business straight clarity, into a organic excluding give number can was company a growth things I in of providing was and momentum.

John Gamble

I are year – just each in gave each it of first quarter X% this at giving the was non-mortgage think quarters that quarter quarter up it terms indicated and slightly, actually think last we gave that we under organic, growth. was We two number right of We well. last I as

so that and you So trying the also we’re just view what of a have trying market give did, separately to we’re to some indication give can perspective.

quite is let I of the kind performance good of think actually you piece. So terms is information depth to the disaggregate of in by USIS how performing

Shlomo Rosenbaum

about you’re the whole talking whole for So numbers for this the – the are I’m company? so company, referring

John Gamble

That’s USIS. for

Shlomo Rosenbaum

growth by if would look the be it Okay together mortgage and minus company just if X% implied whole I just inquires. as I and that in took X.X%

Mark Begor

Shlomo, do as mortgage percentage what of the company total give right. mortgage revenue is, we

So I a think information is from as mortgage how company entire and we good for what that that it’s you can get changing also revenue provide. the view and

Shlomo Rosenbaum

revenue – to do going the I’m can – the If it’s it. it used So look just me trying or up calculation, up the mortgage I down. I question? choppy. down, I I organically non-mortgage just a to it, let see know just at is or if do it’s way the

John Gamble

think for like. kind is analytics we information to But you and isn’t disclose, specifically through, I we whatever what you that do of available right. disclose the I you So do walk

Shlomo Rosenbaum

and drove the Okay margins what then strong international? EBITDA in

John Gamble

through Mark that Yes, walked in discussion. his

quarter they as we a take that actions we signification cost reduction back growth, entire at of XXXX fourth did got XXXX some through So period. and look to very

some and had cost some from minority income got structure from So the lot investment. of got their a that they from they and growth, in they leverage benefit to nicely fourth as return quarter also better

drove things EBITDA three margin. those So higher

Shlomo Rosenbaum

can there, kind be we is [indiscernible] should where are look of the we establishing that of at the kind level? this way takeouts So from cost ramps ramping them that

John Gamble

take The executed. significant plan majority of that they the have cost been I actions to think

cost So from, that basic yes, starting of this within ended kind the XXXX. is we’re base we XQ,

Shlomo Rosenbaum

much. Okay, great. very you Thank

John Gamble

again we’ll participating and soon. everybody to to talk like we’d thank Okay, you for

Operator

conclude does Thank call that And you today. for our participation. your for

may now You disconnect.

Equifax (EFX) 13 Feb 202019 Q4 Earnings call transcript