EFX - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone. And welcome to the Equifax First Quarter 2020 Earnings Conference Call. Today’s conference is being recorded.

I’d like to now turn the conference to your host, Mr. Jeffrey Dodge. sir. ahead, go Please

Jeffrey Dodge

Financial morning, available and to Presentations section me Webcasts. on Executive at the the Gamble, Begor, Good recorded. in is I’m archive www.equifax.com today An are conference Earnings on Jeff under and Chief of Chief John and Dodge today’s will Officer; Relations Today’s everyone. you. Calls, call today’s being be Welcome recording call. Mark Officer. later Thank Investor call website with our

will making and Presentation. the labeled reference we These materials today, can also under Earnings certain are call found that Earnings the During Release be QX XXXX materials Webcast to be Presentations Calls, section.

this are other economic Certain with conditions Form help our on subsequent a inherent in that materially impact statements During our forward-looking involve future and be Equifax factors, filings. XX-K certain operations of business of COVID-XX, environment. from forth some statements cause you actual uncertainties risks, differ including These we’ll number our to Risk XXXX factors the SEC, and call, to including set and results in also making understand expectations. and its could our the filings business

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

adjusted XXXX, tax vesting losses peso-denominated settlement remeasuring XXXX to a on awards and currency on certain excludes foreign intercompany assets. recognized Equifax foreign to deferred Argentinean cybersecurity quarter a upon certain tax costs legal or acquisition-related attributable tax benefit investments, first stock value a incident, market the allowance monetary fair gains income the loans, EPS adjustments of amortization of related the for with the expense, of of For effects impact valuation net the for associated equity currency settlement assets,

related costs to to Equifax as security. the professional the government and cybersecurity our and technology systems projects technology to further fees XXXX as global are network cost our investigations, these security replace to nonrecurring enhance projects. our fees our and to me, data and systems, as substantially outstanding and enhance to well also well consolidate EPS throughout XXXX designed as XXXX to Adjusted project and incident, as enhance - to to infrastructure, XXXX. and our data data related projects principally litigation processes attributable excuse as implement and technology will our excludes and includes These legal This XXXX and occur that the and infrastructure security well in were incurred manage transform expected projects incremental

posted to net incident, net related tax on and These Adjusted and also, adjustments XXXX EBITDA costs and interest interest for with intercompany in Equifax, expense, and Argentinean adding adjusted are are certain as expense earnings market our are of case equity included gains assets. measures peso-denominated income EPS, tables, back is impact which also non-GAAP reconciliation monetary defined our excluding depreciation as fair on loans and the detailed investments, of to the attributable from amortization, losses income foreign is net currency cybersecurity value remeasuring the release foreign website. income, the currency

it to over Mark. to turn like I’d Now

Mark Begor

morning, Jeff. Thanks, And everyone. good

in the We I COVID and managing unprecedented safe families all your you facing are this during in are times global pandemic. environment. hope unusual

be less the our The seen deeper we’ve impact responders, than fighting volunteers care professionals, are dedicated anything others will is thanking selfless heroic. nothing and pandemic Their pandemic. than by the the around first start to world economic dedication and and sacrifice lifetimes. in and the unfolding like COVID-XX is from We’d who health still frontline clearly

Presentations. section of We we Relations plan which the to Events and presentation, Investor a is through you it if on Investor XXXX website discussion, want up. available today’s on walk posted pull today’s with to quarter the Relations presentation help under To call first our

during at we from on At five this protocol slide home pandemic on execute priorities our four. Equifax, plans, and work critical highlighted as we’re business focused continuity

Number continuing to two, pandemic economic the they service business will customers new – to one, our and their their and safety and as services with employees businesses analytical of families, supporting and level health our and priorities their the and our change. impacts and deliver data number customers need for respond with highest of the they

as transformation. they security credit and of impacts consumers by Number technology, economic three, data our the financial cloud COVID-XX reports providing by executing number on are free supporting education, and challenged four,

Our continuing transformation our levels cloud-based we continues for transformation data our goal be Equifax. for and cloud XXXX, accelerating data of them and had to planned originally of same priority to our cloud-native capabilities rapidly focus our a technology investment and are security make technology technology more and to available Funding executing customers. in at the a with

for XXXX assets XXXX. number data We recession XXXX, new with to in Equifax’s tailored focus in that new the rollouts And continuing unique NPIs is continuing started off from five, product product the and accelerate environment. momentum on

COVID-XX of Like our reporting me, as to team mid-March, ongoing continuity most Board with directly our as interaction well our in keep them our management initiated business plans crisis companies, we plans. to instituting apprised activating which included

our business from exceptions to virtually customer eliminated regulatory We operations from workforce. We support home or essential with have essential working work needs. in for continue global facilities. Only our over customer center and X,XXX travel data employees roles across limited

to our facilities, possible. to roles social our of make sanitizing implemented are For and that our from associates are essential X,XXX working workspaces, sure as other aggressive sites safe cleaning close still distancing we as have and and actions

five mode than and actually our team’s the six for and no-travel and weeks, home going on We weeks, at effectively for at in are levels operated or from believe continuously continuing work environment productivity our better now pre-crisis. customers. is and been We’ve efficiency

data transformation. benefits seeing and from technology tools as cloud-native of are are move our significant to collaboration We tremendous our cloud that part a driving

and levels. work And cloud-based on high beneficial very this to continues are movement past in XX home tools teams their the environment. also proven from over almost highly to our working has Amazon platform be new efficiency development services, security Our at Google months and Cloud exclusively Cloud

this is hope times delivering product our sense a challenging and new for our for future. gives while I cloud that customers executing and the and well investments continuing during these consumers, Equifax you strong

the value data also GE unique I’m crisis we leading pleased in and place COVID-XX to manage global with gives card the team with They challenging battle-tested a personal me business analytics experience. have these a My domain through of customer the on environment. financial are and in experience recession crisis. lens during very XXXX Capital’s deep

the quarter. first to now for Moving results our

to five. slide turn Let’s

our quarter first exceeded revenue the both adjusted pleased with financial performance our We’re our and and the in for quarter. very expectations guidance as significantly EPS

strongest to the the XXXX our momentum months XXXX. over performance and from our during first The growth strong of quarter revenue cyber second X% half the rate organic continued our since event last where jumped of delivered XXXX, X

First Solutions USIS million USIS were and quarter was strong up overall collectively an currency up XX% XX%. an We revenue in on constant XX% and revenue of up very basis. US growth $XXX currency had XX% EWS driven XX% very Workforce up and organic BXB strong businesses, over with strong a up that a outstanding our constant by

consumer was given high revenue back International quarter currency, low their March, at with up were and interest in global by their with with X% year-over-year quarter inquiries to over up around results revenue which weeks consistent were the continued constant lockdown first fourth almost by environment rate the X% third These inquiries growth during dampened levels consecutive reduced historic up quarter market path impacts mortgage revenue of US growth. and COVID-XX million. of two $XX the XX%. last

Adjusted per provided expectations in share end February. and XX% was EPS the top guidance of our of up and above $X.XX well we the

a discussed earnings incurred including calls, rate. share, costs cloud million in the or redundant $XX prior and we about other on we which dampened our As costs of incremental growth D&A, operating systems quarter, $X.XX

quarter and and was cost up revenue XXXX EBITDA of up a given growth strong fourth the strong XX% of with quarter quarter that EWS International. of in were with took Adjusted the XXX XXXX compared the and our USIS, margins growth in of first points we XX.X% margin that first actions with basis XXXX, strong

than to of rapidly incremental coming calls, the amortization our we our to As the increased discussed years more expect investments. due transformation EBITDA on we cloud prior in EPS grow

in and $X.XX movements million by negative more share, were per quarter the revenue FX to $XX than expected and EPS respectively. adjusted

of Our of of revenue navigate through constant XX% positions strong of across the and dollar This positive performance us three over making continued the to past Equifax economic the February growth headwinds. provides are COVID-XX good well the progress momentum our businesses view a quarters. all we

will as as six. discuss the for highlighted we portions the a performance quarter the first Later lockdown are the second performance my I’ll some comments, impact in in business I to their business April shift the financial now four detail of coronavirus slide in our and seeing quarter. on units, impacts of each in of of our implications discussion

first and basis, an up $XXX XX% quarter basis. revenue on in of USIS reported was XX% XXXX versus a the of quarter on million first organic the

XX%. was For the up quarter, online revenue

the online activity associated in in X%, was March decline reflecting with Online revenue non-mortgage volumes the declines organic quarter. up from X% COVID-XX economic pandemic. And the in non-mortgage declined revenue

telco, offset which revenue solid banking, the customer on we in positive major auto, growth Through a nice We back into in up months of saw organic February, telco declines two quarter. second in online In won was X% insurance, primary and non-mortgage going the an share which USIS a across beginning first basis. total X.X% direct-to-consumer, quarter. March, in is a with partially by first was

enter sign very momentum quarter The commercially. XXXX progress in we another in COVID-XX USIS is positive as serve strengthening the of online economic second revenue first of the February half will of well through our This and and positive environment. USIS continued

Mortgage XX% quarter the mortgage the continue this well environment. low solutions rate inquiry in solutions in quarter, a to interest mortgage online. strong perform very than up and mix lower in the growth market solutions Mortgage very from shift to were given

declines Financial USIS' brought revenue to year. lockdowns. in revenue project quarter the Service due March the Marketing last to in down Revenue were by COVID-XX lower-than-expected business X% compared on was

COVID-XX Sid by of from pandemic. of offerings USIS efforts in the adapting performance they and and the February, growth speed Singh both which the needs follows XXXX. at are in in momentum in This selling half their I’m to through product his USIS' change in the and strong the in meet first March very substantial quarter, their second customer team encouraged the

leveraging having Equifax recession in my our to with in we comments, I’ll success COVID-XX through discuss across solutions assets them new Later environment. efforts manage customers the are this data on our unique focusing help

US pipelines remain commercial activity accelerating is new strong. and deal

up was as and win XXXX up compared December XXX the of points XX% March was first in of of market March the first to rate During of quarter And quarter X% the XXXX. end opportunities the from about current our conditions, pipeline number XXXX. basis the from up

are strong new And We to quarter work customers few with in weeks, we the the continuing environment. close growth mortgage current deals environment. interest expect the low the second even with rate in COVID-XX past in

first EBITDA consumer support increase the margins as by driven the and costs points of redundant product systems basis in adjusted as royalty costs. by revenue, USIS were from in quarter development, well increased data of costs, XXXX, up new increased offset XX.X% increased XXX investments the partially analytics,

Turning Solutions. strong crossed since months delivered Rudy the history, revenue on milestones. first ended in They XXXX. highest EWS XXXX. for quarter for very his XX the quarter both $X the XX% business up had billion time another to huge the rate now team with a Ploder revenue in first EWS basis EWS their quarter And acquired we March Workforce mark and growth XXst, run the a the of exceptional versus for

compared revenue mortgage. the Verification Services up with by XX% Verification verification in and growth outstanding also continued year, driven strong year-over-year revenue revenue was Services extremely reflects prior growth strong an growth The of talent number know which new continued really system-to-system as mortgage, and verticals you and solutions integration records, active well work other as rollout critical. customers, is with the expansion of in in products

with strong Services solutions strong last key February, revenue and year. growth talent Services respectively, up compared EWS X% and and to double-digit XX% auto, debt Through government, growth non-mortgage Verification revenue across a was verticals, including XX% non-mortgage was growth management. Verification non-mortgage

in was and debt Non-mortgage latter verifier solutions. saw COVID-XX February, for we principally in impact management down revenue the but in run up of growth the the March, reflecting from half XX%, talent the quarter auto, XX% rate

And the active Work million number XX% to unique represents million active non-farm about individuals, payroll. with records XXX closed quarter compared and XXXX. now database of US first up XX March the database half

a Our from under contributing are growing contributors over also quarter. first XXX,XXX to rapidly just in the year XX,XXX companies ago

that rates translates drive immediately. hit almost records into [ph] TWN revenue Growing

record provide and particularly is in differentiated value database there and where The employment asset, unique with contributor uncertainty that can in to quarter most in scale the the expect is number consumers We database TWN around times, growth today’s our US. and to work income continue much second customers currency of in the and XXXX. challenging incremental Equifax’s so

our Employer our insurance XXXX. the saw than businesses, by quarter declines reflected business first of compared management to business. slightly in Analytics Workforce growth I-X XXXX February, offset flat in and over Through better and Services revenues This were and talent unemployment much performance other was our claims management we

US For revenue business March the - in the quarter, or with unemployment substantial up six in daily quarter unemployment very in volumes was during up with last due the of quarter organically two the insurance to filings. Employer to given of claims a management due our very half volume rise increase Services weeks X%, the fold in up X% the March, claims second unemployment substantial

substantial discuss covers continued second and trends unemployment expect will detail more a this claims John in in minutes. April growth the March when in We quarter. in he few

to The year strong technology growth management, proactive revenue revenue increased due an which the strong resulted to than in points XXX and costs growth compared margins costs last redundant offset cost of more adjusted our increase and system XX.X%, royalty transformation. EBITDA strong of from basis the verifier

continues quarter. an expect strong the Workforce discuss challenging business outstanding deliver Solutions to that again even Workforce to later that very strong is growth results times. Solutions will second John in deliver in we

X% in up on X% International strong also revenue revenue was basis. reported with constant down and was a million growth up February, currency X% revenue a Through of currency constant International up $XXX organic X.X%.

The in growth COVID-XX commercial of positions was momentum. February International’s half new momentum the Their first well through the International operate strong continuation a strong quarter second business in the XXXX environment. to

Australian business however, of our stronger and which X% Zealand India currency also primarily and expectations. Through grew includes February million, had currency is now constant our both over quarter was X%, Pacific year-over-year. strong first Pacific, up a New up in Asia business our revenue $XX and X% local in Asia Australia than

Broad and decline in Australia, continues marketing X%, and than a online were and strong slower XX% at very commercial up services XXXX. and but respectively both to in much ID rate

Europe. Shifting now to

Our management currency, economic impacted by And COVID-XX European of and in is business businesses also with constant was pandemic down in X%. half the million down X% the credit year-over-year the activity business our second revenue decline debt the with $XX negatively of business in from March. credit the

currency February X.X%. Through in of growth Europe, we showed strong constant

total UK, UK grew our Our in February. growth vertical, In reseller saw businesses and services Spain through direct and the partners. we X% both credit in through financial

launched digital We and in marketing. also XXXX from new in in vertical growth gaming products and open banking the saw

debt with saw government. European XX% revenue through was we management February placements up as debt the higher over UK

activities the pausing credit early a tax as European to John well collection in businesses the during As activities UK during shortly, as on revenue suspended the in significant UK management will of crisis, government declines we due in expecting our discuss in are customers second collection decline the phases quarter COVID-XX. as the has debt COVID

Shifting now to Latin America.

revenue Latin million in delivered the quarter in in business up $XX first currency. Our and was X% America local of

in growth Uruguay. through February, and currency, low-teens high double-digit up was America Argentina growth Mexico, strong Ecuador single in strong However, by and Latin and Chile growth a local in XX% led in

of new Ignite American Latin markets. Our benefiting rapid from and businesses their and the logos are adding in adoption Interconnect

currency lower $XX like has business markets, the rates. US up in Canada Canada that first of a X% mortgage benefits quarter. million the interest Unlike most our from revenue of was local in international

which revenue and largely in was were declines businesses. consumer the to commercial Through by over just our business and credit, specifically last pandemic. consumer our ID businesses the XX% in mortgage, fraud growth by and in quarter Canadian March the Canada driven Canadian COVID-XX makes during weeks offset of up two X%, up Revenue and commercial our first mortgage of February, due

the team XX.X% compared fourth cost at strong last margins strong XXXX. the year. The International and basis benefit were revenue the adjusted XXX implemented of in the EBITDA reflects growth by of throughout in XXXX up International quarter margins actions growth a and to points

Solutions, to constant was up - and growth. on quarter consecutive third Global the a third now quarter. this revenue in Consumer currency Their their was quarter X% basis in Shifting basis of their the reported

which Global of growth combined about represents UK XX% businesses. the revenue, mid about quarter. and Consumer consumer direct Canada’s was GCS total direct We down year-over-year the in saw digit across revenue, X% single

declined XXXX X% first US XXXX. business represents third XXXX the decline consumer a While the double-digit event since the quarter Consumer direct saw in business of to of cyber in and we substantial from quarter the quarter, the still in improve fourth improvement it the in and US Direct from continued the

Sequentially into and an US, Canada versus as total fourth encouraging quarter, slightly second stable to across the UK, increasing which are sign is subscribers move we quarter.

of in and our businesses X% revenue Our offset of quarter by partner partners, channel declines increased our benefits business, paid a GCS with as growth breach our US model the our free partners. from result model some

was Our growth partners. traditional we as businesses, February a saw our partners up in nice solid well benefits business as our and as through X% business event-based

second in at Revenue at weeks impacted was our last discuss we in space, quarter impacts trends. a by to and declines April few some minutes, of partners he discusses partners, in the expect negatively March John COVID-XX will couple gen lead of particularly partner this affect when the revenue. our

and March. call primarily XX costs GCS driven to year, adjusted late points mix support basis the by XX.X% in EBITDA shifts consumer increased decreased center margins compared prior of COVID-XX

We the quarter. the marketing and in also US spend Canada in increased

in took over to began the cost With cost and actions travel. in to - tight controls reduce dramatically business March our we all our pandemic, the half weakening and from the second coronavirus to tighten that substantial several of units verticals of

hiring except consumer We’ve spending or the related The roles at for across technology company. levels, continue we’ve and reduced and also EFXXXXX data will products transformation frozen also discretionary to support. new directly current

At required. this prepared That said, stage, takeout discretionary we’re event. versus take our XXXX as if our we we’re actions additional cost franchise to this actions looking at plan business $XX economic and, will protect during million necessary, for of take to cost

and Equifax our and investment priorities of we planned These and strategic product spending operational economic continuing both new into our impacts initiatives, because growth strategic mentioned data technology significant from the earlier, will and us I COVID power benefit recovery. at levels cloud As initiatives. are value during the transformation

to are start began seeing lockdown in post COVID-XX. we Starting units our trends impacts COVID-XX the now from the Shifting several slow the mid-March, the spread of seeing to taken actions and Equifax of of in crisis. business revenue globally verticals broad

as on your help wanted of To you a of view we pandemic, impact things. form you potential couple provide this with the to

perspective First, of our our businesses portions which are recession-resilient on today.

XXXX Second, the And compared our of mix business comparison today global then we’re few past the and our transactions over daily performance to crisis in will last, weeks. a cover current revenue or in during John financial our trends in XXXX. seeing

the businesses To recession the Equifax, Equifax have three into or we assigned on of will our on line estimate impact have could categories.

First, with we recession-resistant. grow expect the These through recession that to businesses in activity aligned and have not COVID-XX. directly are drivers them economic

our our low including these that government are best mortgage. expect US interest the rate or continue examples the data, including Workforce business the TWN The of of of lines uniqueness businesses will from we from environments, businesses grow Solutions, to and mortgage

best claims recession, Second, that growing the Workforce United example is Unemployment where Workforce growth Claims and unemployment our business we Solutions and in States. perform and significant in these during the the Management countercyclical businesses better from Solutions, revenue are expect businesses

are activity for are recession-impacted activity auto, businesses. contracted declines economic activity P recession containment by consumer and loans, lender is businesses impacted both include in third, contraction where reasons. cards or risk and our that And These and directly

recession. business a expect negative lines these to revenue We have growth in

the financial in XX% Today, only to countercyclical. is mortgage XXXX about global countercyclical of of in Equifax businesses compared meaningful XX% This the global about and recession. EWS recession-resistant business US XX% positions where Equifax' the US are since growth recession-resistant crisis or COVID-XX our businesses XXXX either of XX% - either about recession-resistant growth This countercyclical or meaningful and or compares were the our for well today.

As well shown on crisis, financial slide the performed very business. would data exhibited you global and seven, during resiliency analytics a expect XXXX from Equifax the

only of with from year, the decline XX% in a interest in low recession. In of at XXXX, the first declines for declines international, at The revenue smaller X% the quarter quarterly largest in largest deepest in saw benefited rates. were we mortgage as with in decline growth from total our XXXX USIS XXXX point we the single in

period a which XXXX, during in insurance grow records pattern throughout and showed number unemployment in and financial Importantly, unemployment growth the in to as US we Workforce from grew growing saw strong of verification both claims similar in XXXX, contributors substantial global hit crisis, and Solutions the the the work revenue XX% and growth continued levels rates we expect drove XXXX.

Shifting an from XX% today. to Equifax has eight. economic now is of to from in over positioned financial it in revenue And in mortgage revenue XXXX XX% grown of of Workforce US percent global crisis. was Equifax growth business Strong XX% has Solutions than revenue Equifax size today increased better event for relative during XX% today. XXXX to slide their the mix

and revenue to XX% increased XX% margin percentage their today of In - significant XXXX. in addition, in from growth has their expansion Equifax Solutions EBITDA only Workforce total

the to last mortgage, Analytics US over revenue over XX% to resistancy impacts. capability businesses has our and improved of - to the invest years, and including XX outsized we significantly execute expansion XX% revenue countercyclical the believe of Equifax during COVID-XX which government-related and today, XX% Workforce continue from Workforce economic in as XXXX less Over growth growth growth has as well businesses, the increased cyclical Solutions' recessions of of the

to the and revenue ‘XX. technology in new have transformation as benefits execution improve speed during the us transformation cost The new challenges The and for accelerate and ‘XX in generation cloud structure, new environment to COVID transformation begin fabric XXXX is data assets address cloud in economic in roll multi-data the growth, cloud our and cloud the well-timed allowed data our future. Our cash to to will products rapidly more investments deliver market margins access customers. with and

recession than positioned the business to of COVID-XX Equifax the Clearly, economic with mortgage with XXXX impacts before, and seen a ever technology leadership. like US Solutions is anything is and weather COVID-XX our unique and the much we’ve better data scale different but stronger much and Workforce

Our invest to financial performance continue cloud strength allows which to transformation new will in and benefit in the products, the future. us us and

discussion future I’ll over items. John, and cover so he the Equifax some and an come the and to transformation, and ‘XX now in progress our technology products as other turn back I’ll the liquidity, our seeing new and cost can update John? on ‘XX. financial the in review recent business our financial trends vision for technology are on we data cloud, of well as savings units,

John Gamble

Mark. Thanks,

well. As to reminder, I as but financial basis, to the refer represented will be results results a generally non-GAAP referring operations a from GAAP will continuing on

related for the first legal XQ compared includes a total $X items the million incident year. of and in costs a transformation prior million $XX and million to In were to the First, principally decrease technology and million, security fees. $XX $XX of ‘XX. non-recurring few cybersecurity quarter, one-time or The cost our

million. quarter, corporate the first $XXX was In general expense

compared to XXXX with from expense reflects up in and we Excluding technology XQ discussed adjusted quarter that XXXX $XX as costs, non-recurring $XX million, was security the ‘XX. for higher increase million February. general equity The compensation costs corporate you the in

the expectations guided XX.X% in with adjusted used was and settlements million, tax financing for our legal line and the payments the of XQ of during XQ was For rate in to $X increase XQ in in million February. effective line calculating from to EPS an million ‘XX, ‘XX. due $XX ‘XX with Interest expense quarter we made the $XXX rate

and strong. liquidity Our balance sheet remains

credit almost As slide billion. bank nine, available cash available March liquidity capacity $XXX million indicated billion including and on facilities NAR at borrowing $X.X $X.X on XX, we of in had our

We have in XXXX. maturities debt no

US of in remaining quarter debt the $XXX we’ll XXXX, first our beginning in and likely In June million pay settlement comprehensive we consumer have of maturities the ‘XX.

beginning we recently modify credit addition, facility worked through to in In covenants ‘XX lenders with our XXXX. XQ our

ratio of this and enhanced new the flexibility with of significant our of amended capabilities our to inside At during Equifax new the our basis in data covenant XXXX cloud leverage our financial March leverage agreement, This us amendment transformation products X.X XX, support on of and recession. times. technology well and and X.X was continued provides investment execution credit

We manage are proactively current our liquidity continue also and to closely balance investments. watching manage protect gives the to these ability will critical trends to sheet. us This and

operating cash of flat with XQ XQ ‘XX million ‘XX. $XX was flow

know, each of as make XQ. you payments first quarter and year flow low the cash our payments we in all As annual interest is in bonus dividends match, or XXX(k)

$XX We the also related made in of legal million ‘XX settlement $XXX cybersecurity in to payments incident to related XXXX XQ the million accrued XQ ‘XX.

down Capital expenditures $XX XXXX. $XX in from million, ‘XX was XQ million

litigation outcomes The at on resolution About paid paid fund this XXXX of when $XX approximately the consumer related the time. US related in uncertain is predominantly XXXX, have the appeals of million $XXX case, timing filed to regulatory of this remaining will million approximately depends the remaining timing to $XXX cybersecurity and restitution be of is payments XQ. million on We incident. which the in

settlement do expect time, regulatory legal not all we XXXX will of to XXXX. XX-Q. be Form of outstanding At XQ the fund this until the our on remainder in provided and the Details issues status early

XX, slide entitled Data to and impacts. Turning Cloud XXXX Transformation Technology

the and will legacy discussed system to time other these operating in production exchange the these the systems into incur production, to legacy and depreciate our to put costs XX generally related a the systems. system to cloud-native from take new cloud-native or systems. as decisioning costs new cloud begin we call, cloud-native a well new systems cloud-native fully generally our as system. It X months as in to is we new running As our - of we February It will transition

time costs new in systems. that the depreciation the cloud-native of the operating as as other of operating the the During incur addition well system, on legacy period, we to new systems, cloud costs and the

of these redundant decommissioning for we systems to transition the substantially XXXX costs year of ‘XX is will XXXX, and As XQ and incur is legacy until system occur late XXXX. additional a not expected transition much

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

of At In depreciation is increased a $XX of per $XX this and additional about costs of $X.XX with of range, the ‘XX, or operating million midpoint costs. incremental million, share. about XQ these total $XX were million redundant million other systems cloud this $XX and

savings As the XXXX, other to of into some of from resulting in the legacy new costs net decommissioning in we XXXX. to half begin cloud to exceed and COGS second point we the a from cloud-native systems benefit the our at move systems, expect operating

infrastructure benefit and XXXX our net will as well to This to through fully grow in COGS as continue we transform and XXXX, customers our to migrating systems. decommission legacy

goods in technology in of transformation. we As our sold, of savings is we technology cost, have and savings excluding cloud generate depreciation said, items. to and A from amortization slide the XX% expect XX, cost significant data and onetime our shown cost plus excluding

transformation run XX% full have technology and been rate million. about COGS XXXX In the $XX of total in technology represent the XXXX, a would of from completion costs about savings COGS on basis

well $XXX items At drive million levels, and we rate levels, EBITDA. of cost in be in generated expense A Again, products million transformation. expense as of complete savings development at growth, run to XXXX when would about is development cost two and XXXX this reduction savings $XX these invest a new margins is to year. per expected XX% as the higher up our to

levels application and believe dramatically decrease should in revenue XX.X% are infrastructure expected We XXXX. we spending the capital our And of from XX% allow be us to than our spending cash capital-efficient cloud-native to spend peers long-term saw reduced in per million footprint enhance year, this at levels revenue. From under X% XXXX’s reduction to or of of will $XXX which flow. is about our a capital elevated more

enhancing profile financial substantially as proxy, us on In full year run using new cash margins. giving and of capabilities, about capability our million in a a and total, to savings pre-tax products while per XXXX spend that rate invest is a our levels further the basis $XXX strengthening

to cost In be new and we that and to rate. innovation expect data growth new single our the and accretive transformation, revenue benefits from addition to will applications cloud the fabric cash cloud-based accelerate products our

expect targeting see of to to and run full ‘XX. expense COGS capital half COGS, of savings savings during We net are ‘XX development second during begin and the reaching rate

not will We some of margin. savings, certainly reinvest we all will follow so the the

and long come have transformation. are and accelerating on way our We cloud XXXX, seeing technology progress a since data

goals. becoming increasingly We we are our achieve will confident

to few a take seeing the let’s over trends weeks. about the talk we the past in markets were few Now minutes

Given unique business the very can trends are far led so our to we of the the perspective COVID-XX month in the is the share nature on impact recession, of provide on seeing the April. best we

forecast We are unable the to COVID-XX economic in markets. of our event

are we XXXX are and ‘XX our XQ more the XXXX on we So removing for guidance not providing guidance economy. visibility until have - sorry,

constant a month of of details revenue and the show basis April continue. if were their far currency to XQ XX during on on through so trends they ‘XX implications XX Slides

reporting available XX% view with we revenue covers trends As are in on which this daily business, US trends, our of which revenue in directional our lesser coverage principally transaction which I The and business we you is have across our estimates. broadly international. reporting online based the turn of into sharing these activities, am would expect, daily about

OCIS about between As and quarter, Mortgage the which about represents shown of XX, Solutions. on in slide our USIS XX% online XX% revenue of first is

in Looking over down XXXX. total versus toward April, XX% trend a at the is little pointed online revenue USIS

mortgage month currently April sum to revenue over about continued file, pointed of single at year-to-year show last decline up XX% of in April, Online the XX%. online has revenue, non-mortgage growth of a strong is tri-merge Online about and versus the year.

expected, position verticals major from declines declines the we occurring performance regained in activity, the a primary As telco insurance in customer. greatest auto, in economic as with banking better are and with

well The first in offline in was down remaining revenue quarter and which in the performed USIS March. Services, relatively is is which batch about X% Financial Marketing revenue,

do quarter we than of perform Our daily blend which offset it have for with online by not marketing meaningful expect of We a over unfolds. reviews FMS. much the FMS ‘XX better is in volume, to assumption will portfolio expect activity, the non-mortgage, to decline is be marketing-related XX% down as which as recession second consistent we a trend

in over quarter about Services. online Equifax first represented XX% revenue the of for which Solutions is of XX% Workforce Verification

below Verification a three but last level growth, the weeks, Over XQ. high at showed saw in Services has increase we the XX%

Services Based is of over to largest extremely the appears XXXX. which the about the XX% increase showing Verification verticals versus over Mortgage, on pointed the three has strong, Services at substantial XXXX. April trends been a weeks and growth movement XX% growth up growth rates, over Verification past be

services Medicare about provisioning and level, services services auto. on trends based and with a our is half contract decline is being in for seen Center Non-mortgage April XX%. services, verification principally related toward the management, remaining verification have Non-mortgage the of the with pointed benefits to state talent banking, at debt about government the Services of the we

and level. reopened benefits the revenue services than commercial for verticals is are verification performing better we activity as more Government applications state at has CMS seeing

talent have management down non-government than loans. in management seen a verticals, is weaker much recession USIS student management, principally and debt levels weighted with base debt customer our with performing The banking as consistent at expected towards traditional been

of the In Employer represents insurance revenue. claims about management unemployment Services, half

process UC one meaningful We unemployment expect quarter growth about we claim revenue in in the the in in six filings US. second as

XX,XXX an week. past have of XXX,XXX by the Over averaged in per three XXXX claims per versus about weeks, EWS average filings week

saw to under We we expect XQ XX% our million by of UC just business versus in ‘XX. $XX over revenue the well increase

assumptions, acquisition. to businesses bulk and Workforce as the WX these Services. Analytics, to second quarter year-to-year hold limited Services see the new percentage These subscription-based business if principally Management trends in up make second single are declines our of we remainder people in be the well of quarter. as businesses Employer Talent In digit total, due up XX% are to over the and and low businesses customer our expect revenue expected Employer

up of make Our EWS portion trends, of online revenue. ‘XX. low April revenue. be BXB trending to digit up in hold single and and about April they Equifax' up businesses, Overall, US BXB trends is XX% And percent. based XQ, X% on should XQ on little up a XX% our based The throughout Equifax US be USIS of under make online assuming these businesses

from XX% is about of represents online which International of in between - be XX%. about the to on XX revenue operations, This is under $X revenue XX. slide of India about Equifax' four second April the million which quarter. half across Based to XX% revenue down its be our our acquisition regions. Moving trends, Asia Pacific pointed excludes will remainder of recent and

of to trends revenue of a over significant XX%. pointing April decline declines is LATAM's In Canada point also more about to declines, April, XX%. revenue a little seeing

has trends management In Europe, pointing April have and a business XX%. business and of is The decline trend weakening both the to we business. debt the CRA in about at a seen CRA current

about online of an be our will revenue pandemic. the management be our down reflecting during collection European impacted significantly expected one-third is to government's Debt business. debt not tax-related Although business, with XX%, the activities debt the second suspension in management quarter almost business UK of

XX% total, in metrics, International these of down April. basis the in pacing On over is revenue

saw March. GCS and Canada ‘XX GCS slightly XQ in consumer business, UK XX% the on trends about these represents impact very Total second direct, of of half in of GCS versus relatively US, subscriptions averages the the the limited which represents revenue. down revenue with holding are XX% about Equifax stable.

in subscriber US be down, declines Consumer to Versus XQ expected occurred XXXX. reflecting is Direct ‘XX, that

revenue our total, are We in high digit GCS declines percent high pandemic. by In revenue partners in declines so seeing percent single the is are April. rate digit partner single as seeing the overall businesses run in far impacted range in the

and and in certainly to mortgage seeing business, a US business well impact as mitigating GCS this degree are the past over our is impact, resiliency the Solutions model strength the in our we US. lockdowns Although of the COVID-XX meaningful as month, particularly of Workforce

Due to the as of are are going our year guidance we the actions depth second quarter and duration earlier. forecasting to uncertainties the not related we to and COVID-XX, indicated full recession retracting and to the guidance, combat provide

path guidance reinstate from will recession recovery the when more We becomes of COVID-XX clear. the

think Equifax performance, we shown ‘X XX, to performance. framework an total are about on help as providing for you perspective our However, on XQ illustrative second quarter slide

based the extent versus $XX To would ‘XX. revenue X.X% $XX to on April constant at basis the million currency XQ about Equifax revenue I trends, described on to ‘XX a total continued pace X.X% million XQ be down or earlier,

$X.XX of million. or revenue these ‘XX at in to range from to year-to-year, million $X.XX could $XXX XQ to down on FX per X.X% million to $XXX share, XX% EPS to rates, $XX Based revenue current in XQ $XX would in XX.X% million revenue be down be ‘XX XX% Adjusted resulting of levels the XQ ‘XX.

versus walk income the Slide the XX XQ revenue decline explaining a decline the and translation of through adjusted also provides to EPS. in pretax ‘XX

deliver Importantly, at these adjusted million adjusted Equifax still $XXX EPS levels, will in about EBITDA.

path opening much still the our is will economy, and This is earnings. economy activities, the not as guidance. the There to impact revenue and up our any pandemic what customer’s uncertainty therefore to business have on

outcomes. This potential provided view variability not quarter a in of range trends, current reflects

as XQ the think you have modeling to we the provided in you about and to revenue estimate impacts framework as seen Equifax. framework this ‘XX quarter results. are hope your We for offering helpful are We determine and date second the impacts Equifax’s your Equifax view of on possible detail we

Let me turn it Mark. back to

Mark Begor

recent John. trends hope our and revenue the quarter on transparency for second is framework the Thanks, I helpful.

with discussion our up future. Let on me wrap a

XXXX $X.XX EFX in Our and billion technology transformation data investment our new products. cloud continuing and

to first transformation. Turning the cloud

our only full you since has July. it technology update last discussed discussion in transformation, the As months a abbreviated, return my on been two will progress I’ll and be we with today to

and top and strategic topline talked the a from in XXXX the investment. as delivering priority benefits cash continues the John during towards revenue, the be transformation investment cost work we about to that transformation Our completing

in working technology team are not our negative the capabilities. as working seeing versed already the remote environment new from We any impacts transformation progress well on cloud was

IXI track on the of initial the NCTUE, Risk the by US US exchanges large work data and assets. Commercial, auto including to remain We property end data or complete Wealth, third several quarter, Consumer migrations Acro, number, of

transformation conversion is the after Our the environment allow Cloud fourth or the ACRO to DataX integration. leverage DataX decision ACRO quarter us we cloud migrate to in database exchange the the follow to exchange DataX completed for new will to as made

months. validation In the next with migrations customer systems in of April, to completed four identity migration over will initial be addition, expected to be three our eID completed

cloud and suite, US expected identity eID as solution the and a includes the is in third quarter. to in which and a is Luminate cloud-native available service, new to fraud a being new customers developed beginning be Canada Our as

model the and ingest analytics machine for well now for the by with migrations Ignite be capability, the Our easily quarter. of own and available customer GCP at and that management their securely is and second AWS to customers available end track as at on and data includes to attribute platform learning integrated as ability is InterConnect

progress globally, or rolling We and XXX Ignite out customers almost than learning Direct NDT-based customers continue more with make to XX patented and explainable machine using strong now using analytics Marketplace platform Ignite models. our

We are systems, our including our of our API migration our cloud-based the InterConnect progress in customers framework. continuing on to new Ignite

EWS to International working a set USIS, services we of common on is customers. As a all this are reminder, which and migrate

of customers. with As back discussed of February. you X,XXX pace with of International we over is end and migrations slightly almost X,XXX USIS the the quarter, in the US customers ahead This completed had first migrated

XXXX. this over US by XX,XXX pace customer through in accelerate end US completed with majority early significantly to expected year XXXX expect customer and the migrations vast We of migrations

with and Customer products are to access with speed and events part important to and cloud-native we execute their to continue our our technology and offer customers can plans closely transformation we migrations migration new an services. work of the define services increasingly

the We environment, in weeks normal at the of customer continue COVID-XX seeing pace are is migration a the past five which work encouraging.

revenue from the cloud to the deliver Equifax. customer This commercial transformation top on ensure our ‘XX focused priority the transformation and cash and and a for accelerating the we in benefits where possible, and achieve and in ‘XX. and benefits are XXXX execution cost is We roadmap data technology

to now XX. slide Turning

accelerating a our EFX to our key revenue of remains component product is key innovation XXXX generation product strategy New long-term and new growth.

We of up is XXX have XX in for forecast XX active products about new and over XXXX. in which XXXX, launches an from pipeline XXXX with

in in which launches to to new the off strong delivered product we XX quarter start We’re the XX last is a first the XXXX, with year year. from Xx up

cloud-native are leveraging scope including capabilities time market. production products Increasingly, broad of the a our and rapid our acceleration in to systems, new

to of Solutions products, the in licenses, mortgage candidate critical and the income a all quarter, complete mortgage and including to data launched enhanced richer employment provide well access customers, education data expanded of that throughout as cycle access more as several products talent application This an to pull new life Workforce hiring suite credentials view and provide process. income, employment, validation, reports well that identity as as

became this activities as COVID-XX and and environment. March, clear, teams work depth their our operations refocused initiated recession customers differentiated to elements challenging of of all pandemic capabilities the commercial to our customers assets the unique work analytics leverage support Equifax' In data and with quickly partners product and in to data and

work that to the Central number. is effort

essential in differentiated increasingly in dynamics income reductions Our and the furloughs becomes accelerating States. asset income unemployment, and employment from salary environment data with employment and unprecedented this unique United and consumer

meet teams new to existing as generate to capabilities products on new well differentiated focused products, to as Our these how utilize customer these needs. refine

long utilized customers small standing. our and credit has trends consumer changes evaluate Our that to immediately our commercial in credit by as data to been enhance teams analytics across business and overall the trends reporting and consumer reacted lending, as well

to data marketplace data Ignite more monthly is We available help from platform. more This immediately our Equifax make reporting to product analytics real-time moved have and on service a decisions. update added now critical to weekly proprietary customers

secure assets, eight XX XX We for delinquency in well of specific our advanced this needs capability across states States. vantage and stages industry XXX metropolitan score areas loan XX United over bands with territories, different groups, the as products as Ignite analytics visualization includes includes making over across customize available application that over data diverse including customers. This it of also for our three

the analysis requirements and treatment originations In the industry off-line that including income to may employment consumers and the working use utilize data mortgage using specific to and data require or mitigate collections portfolio TWN help to using market, identify help the our customers support. across data again current employment income and enhancing of meet the - more we for are risk and

monthly the given changing or quarterly the discussions differentiated portfolio financial customers condition We consumer. and rapidly with about are data our reviews weekly annual, of in using versus

environment. to help current launched customers a card, credit are Now across the economic consumer deteriorating allowing and product also data, their - credit manage Response auto, predictive a identify environment behavior portfolio while These We’ve and reporting, economic current solutions, models other losses weekly which review incorporates lenders loan highly proactively to in risks. financial premium solution and lines, economic calibrated current income to and credit trends product portfolio lower economic factoring the risk we call employment personal credit [ph] and

and products Suite, segments. and health US We also analytics businesses, the for well detail products, insight loss level launched as of ZIP credit the provide a a market Capital Markets small suite mortgage across loan including as and default of severity to delinquency, and Economic to other codes, consumers vintages

for to ability data Our cloud-native our us product and to the of of the capabilities new our data just front analytic a these technology bring This market quickly assets investments. new cloud moving and data fabric. is beginning by our so in from into accelerated offerings progress is

and beyond. products, prioritize recession-based new to including continue solutions invest second will product during and quarter We the in

business. recognize - we the where we important Equifax markets plays the recognize in role Equifax that do that We around the world

businesses, the that and assisting are efforts. sectors the on in consumers private pandemic, stakeholders and while COVID-XX this in ease and During we other creative with burdens working solutions on consumers public recovery

with national do In negative while accommodations, status the impacts to to by recognizing governments and minimize hardships. actively to that policymakers captures of local the every ratings country consumer ensure payments is caused Equifax lender reporting of and credit credit where business, continued we engaged consumers intentions COVID-XX

in period. and with seeking how US, report conjunction Experian to this to we challenging provide during independently and time guidance on assistance institutions the worked to financial In TransUnion

that term. and to support the standing. recognize Equifax channels the the distress, potential in offering consumers minimize have consumers experience on been short COVID-XX many economic will through is impacted by credit other to their We impact pandemic particularly website and our looking pandemic’s

weekly credit US all year reports be bureaus, TransUnion, customers, credit consumers, Experian Yesterday, we the announced XXXX. US to all through would April free and for that available one making US three Equifax,

and credit to free We We offering regarding are And to how to also educational reports work. scores the encourage consumers we environment. they navigate businesses and credit as policymakers current small are for take with advantage small support ongoing consumers. others reports businesses, Canadian of partnering support,

proud a in steps with and forward look and I’m partner engaging consumers the support businesses the constructive small to we’ve that help challenging and to to many consumers businesses of help taken solutions as during economy time. additional to overall this

Wrapping up, let’s XXXX ‘XX. in turn slide of to on and future Equifax XX the

impacts economic COVID-XX, strong. we of As Equifax of is that we the battle future confident through the remain

financial allows in on us to offense new continue invest cloud products. and Our and our performance transformation

in the our we into challenging in confident perform and look business to our economic ‘XX, our we to and XXXX forward of ability and environment. ‘XX As model, rest investments are this COVID-XX

right analytics operate in place, the data have to team recessionary environment. we in understand First, how leaders seasoned and with and who a

income, utilities credit, consumer assets, including data data differentiated credit to commercial through this us deliver Second, position they products the employment property and demand our analytics will manage our environment. assets, along unique and unique and data unprecedented and customers with assets, as

business term. strong the had powerful COVID-XX that through recession is Third, the Workforce grow we Solutions potential and expect a growth long to in

of Our the and very unique due valuable this TWN employment more the income even unprecedented latency economic in data. scale, environment to accuracy and is data

with rates monetize to will which Solutions and revenue. payroll database hit today, continue of TWN Workforce the drives and in the half has the EWS non-farm database and real US grow scale,

is valuable years global it even financial many the than Xx more TWN At XXX database million the more up records, ago. from than XXXX, making crisis

to as expect growth the to TWN the We continue rates of to record value database hit and continue increase. enhance

the reinforces momentum [Technical give recovery the International second competitive USIS, and million revenue data and our the US $XX and unique confidence TWN future. the our is deliver the Social per margins that of half GCS the of in and path the contract US starting and Difficulty] quarter performance businesses Security over first will of in ‘XX history growth are capabilities to strong of us the $XX and contracts Fourth, five deliver This from year well to recovery down in expected in our that years, Administration of assets XXXX. million

to are new we products. continuing invest Sixth, in

XX and not new know, we the you year, only growth XXXX, the fuel As in increased current in future. but products. delivered our spending our NPIs In NPI

invest We XXX this XXXX in year. expect to products and new continuing are over

a by future. Our and our XXXX NPI capabilities accelerated are cloud being transformation for and the remain top priority

from We future. cloud in NPIs expect will accelerate to investments to our continue expand and our in growth products the transformation new the

investments progress And cloud we’re our on XXXX. cloud in seventh priority the team of and or There strong is clear our the and transformation, last, change focus is our cloud execution for on in a no spending transformation. the making

We are progress XXXX to and continuing transformation in in expect be North with America to complete follow. our continued investments substantially in ‘XX International early and make the

new reduce expense and technology, will $XXX in products delivering John drive always-on ability growth. and the new share, earlier. ‘XX. Equifax and speed market globe that deliver million benefits cloud-native and Our our revenue and and XX%, and data stability enhance applications They our over COGS market our significant our development and will ‘XX They products market to to savings of discussed competitiveness by around accelerate to will

These XXXX which levels, couple million from to we capital last EBITDA period us in ‘XX about through ramp in and while of reduce ‘XX of they XX.X% our margins. This provides allow during spending years. or saw distribution in revenue capital additional in shareholders. to investments XXXX below X% the ‘XX new ‘XX revenue and And $XXX further for expanding and from reduction savings equivalent products spending cash the and the growth, to also of reinvest is and to

with growth well revenues is economic We and believe Equifax to for strong the in ‘XX weather positioned challenges ‘XX.

second working half XXXX. of in Investor our are re-establishing an still long-term framework We Day financial the towards and

unprecedented of Wrapping None event, is up, duration and but challenging well. know times these Equifax depth this us or everyone. economic of operating the are for

well and we’re We’re economic COVID-XX prepared pandemic. impacts weather the positioned the for the to of crisis,

customers are and protecting team, health supporting consumers on worldwide. our safety and our the for delivering We focused of

Equifax of future the that confident strong. remain is We

performance financial Our allows in future. to our us invest continue to

Our business generation we sheet that accelerate margin investments cost in and to allows and and resilient, product invest and seen transformation is a cash and our balance ‘XX. cloud future us improvements, ‘XX new we’ve for and strong model strong - growth, a expansion have

our stakeholders. And and this for bravery all consumers, thank the again, for their dedication. hope and line front customers, health others of of first partners, employees continued We and we on the health responders the shareholders our of care pandemic the professionals, and

as transparent reinstate impact to the economic clarity from be on pandemic you COVID-XX to guidance path and we continue as COVID-XX XXXX We the with our and fallout more will and the We unfolds. recovery. our investors to soon economic the have plan as

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

Operator

Thank go conducted We’ll JPMorgan. you. [Operator The question-and-answer first be electronically. session will with to Steinerman Andrew Instructions]

Andrew Steinerman

Hi. Good morning.

might to slide that this through great That industry-best. deck. disclosure how thank Mark, for to crisis. [Technical segued to you talking you really like I want want went seven, when about EWS over slide I to is financial go you know, First, Difficulty] back do the kind crisis you of

TALX - just years part And obviously, really of to just after later, it I that’s thinking benefit the sort in Equifax my was ecosystem. is, like [ph] XXXX, back decade a And from of a XXXX. a And XXXX benefiting being benefit, feeling lot is initial getting acquired two was now, of standard. remember,

has just again, Verifier, that just now benefit in might thinking, so for decade subject place of in I’m it than And do market been about more feel be now? end it just was you XXXX, because, a like to kind volatility

Mark Begor

is was of was at of Their you’re Equifax a database Solutions the was Andrew. of TALX fraction size it It’s the scale years or today. it it. and the point the only of question. a Workforce And for Yeah, scale into different a Thanks the the business. Xx right, couple

five will cars we’re question where that And of in in in where aren’t of people some in John our seeing income the declines recent no the auto, many you in originations. the data result there in subprime I think There or for weeks perspective. auto, last example. loans pressure as personal buying weeks or a is be used there reductions trends in showed There some pockets April, is employment

in business you we or employment today broader the the employment financial the of look data economic used, from income is COVID-XX where event more the global this believe if and in perspective is at But was and TWN data valuable crisis. and data that it income than

financial high. that crisis, levels global you had were the quite unemployment In

We’re that going had the have to you that salaries. were have again. didn’t consumers reduced But uncertainty around on, furlough, that

going so You scale today. didn’t didn’t reductions the have unemployment of salary the And pace have widespread the waves economy. that the of are the you through

in and this And is of because really someone economic what incomes the cycle much United is our of just from making dramatically. is consumer’s today impact value knowing unprecedented customers changes we’re more in the how that hearing States the value is of they’re if knowing on the important working

product scale than use is system today of You that was much add in system, the to larger mortgage, we it then, connections the back it have. which of the the the

down We have we rate low a increase low and the to the interest future. pandemic, environment that interest today that’s going will environments purchase in during refis. with to stimulus volume, The but expect be drive

rates hit records. payroll. And records. have to situations scaled a business the database and income we meet XX% have our XX% request vary of for non-farm have ability add you data can’t data employment customers because the then add to of capability while as that from XX% is really where our we XX%, we XX%, know, And XX%, only continue to to We’ve you

the hit grows revenue the there. So rates systems database, in of because from the just business grow as impact we that

So to going a in And that’s to we bit position - environment. pandemic continue position think of think it has really Workforce strong strengthen of off, discussion long-winded forward. first COVID a levers has this that a lot Solutions a that we

prior the critical. think assets you And global the believe value understanding that that and pandemic then employment last, income is and data versus recessions, really in helps. that about financial COVID I if we or crisis hope someone’s is

Andrew Steinerman

you. Thank agree. I

Mark Begor

Andrew. Thanks,

Operator

go We'll Andrew with Jeffrey to next SunTrust.

Andrew Jeffrey

for the - questions all Hi, couple detail, the a good of I morning. you, guess. Mark, guys. all Appreciate

business you think how like Could First, we’re Andrew’s that when disruption I of it the is the is response much It at about I level. much think seeing discuss Verifier, of question. you SMB? touched in to seems on

wonder how in capturing on how you much terms much business, up - if I based the that wind employer of So mix?

Mark Begor

Do contributor Andrew? verification or side on you the mean on side, the

Andrew Jeffrey

contributor On the side?

Mark Begor

Yeah. is no Well, there question.

we decade ended months, last small data businesses think we because a an I that’s of companies had and also know not You we’ve in contributing I over the back, but back, with were And lot think intentional adding shared and current getting year businesses. only large primarily we XXX,XXX the us. think And to strategy the - had of XXXX workforce largely look to last really Those XX,XXX some is. where businesses I large contributors. stats you quarter

businesses contributing. clearly we’re small So getting more

impact the the widespread. Where it’s is, of to pandemic be going really

about You furloughing they’re - of there whether reductions. or out and companies, very team large large think executive hospitality, lots or salaried are there hotels and restaurants, companies their salary employees, employees airlines is taking their are that large

a Andrew, it’s impact broad-based hearing the it delinquencies with this understanding was challenge. the And discussed is of in challenging crisis. our a customers than So we’re now pretty event. is is And I from what economic as that forbearances more and financial global

a But happening salary furlough they much at reductions important. the critically changes in Are XX%, making? reduction? really is working? salary reduction How of pace week. are understanding, they Are so on salary And their and down rapid, XX% meaning who's those been reduced? they're last Has

has, asset think and And the in cycle. data assets current about meaning we’re is we if industry pay most data the this you updated the have the industry, every

makes So we of two that incredibly data every because currency. our weeks from data have week valuable contributors, its or which

it that well So that’s environment. why so is economic well doing we to do this in expect and why business

strategy around slow And our to records. down going new adding we're not

have a our increase our payroll to and we work strategy. big do, with data all processors that’s part know, you is of team, they As clearly dedicated companies that’s and contributors, a

You and in million up to that’s continue. growth to going million records the we or uniques the that XX year, saw last XXX had [ph]

the April as and of continue in business forward. second data XXXX lever May June we in and records another going that So to that’s add for half and

have work our While half saving our when other hit and the growth non-farm If for on the if system database, the they we our another lever that, we’re because, rate to close down XX of have for integrations, model, we which you a the to then And know, system, they a as uniques, employment don't path. business go mortgage verification. to they pleased don’t, unique a have that’s is the half. our in file, get the opportunity originator’s million that income go payroll they use on

that cycle they database. any economic day goes in hit our that adding records, we’re as every revenue So new up

Andrew Jeffrey

as That’s just quick about right look your think do Okay. a very any the on back business? think making you half, and not forecast all helpful. projections. then the MBA into know mortgage, you Thanks. is But And you’re I the way follow-up to

Mark Begor

Yeah.

at As our is we modeling, John know that There formulaic and It’s I’ll a think, when do all don’t way forecast doing in the in. forecast look mortgage pretty that we’re our We through as and let you that know, our typical mortgage. guidance. I others translate jump We well. gig. into and forecasts normal not you quite

as John what’s them pointed hard, very is, going think I to for I happen. it’s to where And forecast future think out, even with the

that really really focused this trends – point. we’re So using beyond daily we’re on not at

Andrew Jeffrey

Thank you.

John Gamble

their MBA, divergent extremely between right, Fannie are Freddie now. know, and right you that as And forecasts

Mark them no obviously what said, forecast So those. that rely it’s it trends. now, difficult heavily right great their focused a more made on But to can understanding one economists really talk think. to We the on economy as deal, given we’re

Andrew Jeffrey

Right.

Operator

from Patnaik Manav will next with come Our Barclays. question

Manav Patnaik

salaries I Well, your was across the why the made around board. morning to point bucketed as question first impact crisis just mortgage My gentlemen. COVID a thank resilient you. is furloughed with the bucket. Good curious you recession a wide you just of lower

rate early mean, I probably? I’m on curious ‘XX between of and site the with think refis. just perform how in I you when how of new the or trends the maybe the that will about resilient lines compared understand purchase But ‘XX to

Mark Begor

Okay.

- question. thanks the for I think Manav,

When I can be car? financial activity? their are any homes, they they do think going activity? of go. how company we and is Or I these How to stuck where long can is these are in there that a how economic can going out forecast think are don’t lockdowns to with going buy relaxing to last? this lot Consumers there a

in why this us versus think to versus tried to see we way some XXXX. we point the serves well Equifax that’s global as which forecast a very We the don't financial And out we differences crisis. XXXX crisis, of enter COVID powerful

of to layoffs? Likely, to things, go restaurants? what's what know September. the going package many Is again uncertainties. so and we program going you would ends hotels? the know start hard there going We But be. to to flying Are don’t to going Are think. to tell. people in It’s another happen going they wave to be Those is don’t when next to going there’s stimulus payroll protection

we try help Workforce be with what try really of with of changes on in to the So and XX% to significant our sizable was our versus Equifax part understand a you, up to focused you transparent XXXX EBITDA. Solutions business

of We’ve US you low rates tried and continue that through actions this expect because framework can. give driving cost grow best the to that to mortgage refis to we’ve and taken. we interest which pandemic the we

certainly And XXXX as we have our think better XXXX But we’ll visibility we’re or where of we were around than businesses. today of certainly some provide is we it. positioned think mix soon in because going, as we XXXX the

Manav Patnaik

in you business John, you I business premiums. just unemployment the mentioned on the do And Employer then tied and it. X guys clarify to Got Services think to claims. X

just was Or you claim? I some just curious, around is I paid revenue some there So get nuance? confusion is that? other model each the just simply for there's think

John Gamble

Sure.

when part And where for as then way a run they effect, they business the a subscription, they model number the people subscription in is through the get of sign certain pay as claims So subscription, overages. of works the it’s business subscription. up a

obviously level is anticipated is right, claims. of this occurring, one what’s So no

for it’s then are to a customers seeing revenue subscription pay of then necessarily on employers based they And it’s And the So you’re the with to through their annual through when at level, that their fact in start - - overages grow. But paying consistent it isn’t running subscription. the they as overages. that reason because when through unemployment, start movements run their they start started. effectively that subscription run the

So that’s that’s about. seeing, seeing what growth and that rates you're talking we’re why you’re the

Mark Begor

mode in speak, in certainly meaning, those are claims we we John, and as that massive with have. just the subscription with revenue off, happening we’re unemployment spike those, agreements coming And in

Manav Patnaik

guys. you, Thank it. Got

Operator

to Mihalos go We'll Cowen. next with George

Mark Begor

George. morning, Good

George Mihalos

Good morning, John.

those me if April where Let the number slide XX, you this I put is, trend. about Like out you’re add look for XXXX thanks morning. to I’d at different the a the say, dramatically business, last April? my Were of the USIS give EWS, throughout the where we have start presentation revenue guess like for sense talking and trends us you week month how maybe first versus, of they US can week the trended of month?

Mark Begor

our to level our for work with John, a and maybe you into we of little can were was I’ll and going then activity think, last home, of in. you in of weeks remember, from April, two jump There start the was, got us sure. BCP just there schooling maybe last a I plans, a weeks customers consumers. difference two March the as with and bit between if And March, all and up different

call home, of you of But unemployment work claims shelter mode the think want and As stuff if more place like some normal. in like was that? coming to much April. It there don’t being we I outside got John, normal level was April, into from in in difference

John Gamble

you level changes meaningful see trends any right? why only the it relatively will look to has add to would guess, the And at in And I thing daily. of given right? day we periods. when been is revenue longer over you that's tend in variable, So the look that the we year-over-year, look I

looked there forward. don't little put you we think that USIS quite trending distinct somewhat online trends. was I But it at the were say negative. But you’d that mortgage, a if Probably bit really any in we probably honestly, chart consider

trends, put month. we’re range the - there’s activity in because a than So honestly why the say provided but slide that’s we variability trends I’d other a it’s but guidance we and on in the range, that, not seeing quite XX, are variable what the bit a because on

in little other see some to And seeing Australia. some where of the UK, in trending the we’re place probably only stability right? seeing And is trends countries, a So in seeing let’s we mentioned negatively. a we’re trend it’s say, bit started stability, we some

relatively period, variable wobbling gave. that’s consistent, are overall, the around but averages in the although trends But we been a the they positive. of So somewhat highly are

Mark Begor

Zealand place. starting seeing I business weeks, think as watching, And is Chile, next of will markets interesting relax where some be everyone couple is next that starting. is in is week. think, shelter think have the we what you’re New to I I start a

in You States United economic about of you And know, in are our rates. that think we that I states the weeks. levels place to a indicative does to from that see walk in relaxing will this back some having what as talking that be some shelter of run have coming current the of, activity

John Gamble

we’re business The right, that is to the is just lower. of online make is on, point International, percentage other clear right,

what clarity of done lower. online the entire is but reasonable, we’ve giving the on impact rates level reporting is business think the So the we’re giving you, just less. the on percentages that of we’re We is you, the

George Mihalos

I then Understood. if Understood. color. may. John, that questions, I two numbers And just appreciate

coming perspective lower from EBITDA on think right of slide the amortization? they’re into obviously will consummated. Just be there once $XXX savings depreciation from additional it XX, potential an savings to which million Is also would go that through earnings and

talked cost-cutting at Thank of some assume call? impact, I $XX that giving there know guidance looking slide on million you. it in not XX, then, reasonable be to about offsets to annualized will $XX is Mark you’re And $XXX that but the million that from earlier negative million the

John Gamble

Yeah.

levels, I slide and tried cost provide levels do have, year some data was the mean, XX, available. only dollars at that’s what based that’s right? So of just we we XXXX that to on just that’s since a indicative looking we actual what complete ��

shutting XXXX, in into So we and that start ramp. ramp past, right? see as So, principally very and right? those we’ve XXXX those talked in this the D&A, starting are late ex savings systems will things then about going or decommission, the you’ll things year then and COGS as this So, down,

with expense, development reporting stop in The Sierra year, XXXX. next obviously, we

see the XXXX, because XXXX our higher, this some development we you’ll be in just we an and So Sierra we expense, separated. spending the of had in separate is XXXX, because right, increase spending spending showing development actually will included in - were recording, It’s actually in lower. not which

adjusted it adjusted wasn't So, our in included - in EPS. our

dev we expense, So into you’ll then we as see see to and will principally an increase you complete expense XXXX in as the transformation, dev get decline but the comments. to Mark’s starts

to occur. talked capital, capital when Mark right? transformation, the complete XXXX, As which complete, that’s in that’s once seeing reduction with about you thing completing the US you start Same start

crystal So was these you’ll It’s things over D&A, step-up a have in a in XXXX. D&A, time. phase big we’d ball will this big year. XXXX. reduction indicated unlikely think into I see We a don’t

the an spending now. actually on seeing You see could increase based of somewhat we’re

I don’t thing crystal ball. again, have So - point But at a wouldn’t expect we That’s difficult this to that. a forecast. that

everything benefit we from will second second quarter, we’ve term, talking in about getting you’re the if In that quarter. believe of this near second some quarter, in occur that the terms included now

view gives slide prior which slide, costs seeing the past on And there, And of cost the to incurring incremental we’re and in in transformation the actually about duplicate we’ve that as impact we’re it’s because the talked the on XXXX. XX. a shown transformation we’ve the that

question. So, hopefully, that your covered

Mark Begor

just could add. John, maybe I

towards quarter and going first last forward. in the those on from put year, kind benefits But was the at thought group of of the and what today’s about of the the it to think three we’re in transformation. dollars to we that some end that I quarters kind ‘XX call and of that heading up from the until we expect percentages now cloud the be knows call, we talked ‘XX savings we’ve see of helpful

George Mihalos

Thank you.

Mark Begor

Thanks.

Operator

We’ll Togut with David go ISI. next Evercore to

David Togut

a in point again in basis increases to business increase quarter. rates terms rate pre-breach that Thank morning. you just Good first by where rate Mark, you you feel win you’re in you. the little for bit USIS? in the this elaborate called where do you’re win added segment? of disclosure. the And year-over-year win on at back seeing And point, completely biggest your were you XXX out in a thanks the Can

Mark Begor

Yeah. bumpy there’s It’s years a there’s over into impacted first and can improvement been post you the XXXX. half momentum. great the of the question. steady, event cyber but clearly know, fairly last you got been We’ve And sequential the some the And in couple as USIS see quarter, was second as there. And non-mortgage most online XXXX of significantly. we seen responding

The win been rates have broad-based. pretty

leader a really change got in and we’ve know you Sid a Singh role. think I his strong that year into was of commercially kind oriented

that’s hold. taking some the new organization the in focused restructured marketplace. months, last really energy the So commercial He’s bringing and he’s how into in few they’re

The sell last year, growing rollouts team, which him gives quite his helpful. new more think product I helpful, products stuff to are and is

isn’t a out. segment stands there really, So that

of on them. all We’re focused

gone I we And particular that in up, you close a ago fintech know year than think space. fintech calling we’ve spooled that’s probably XX because a much space are. a our put a a to we We’ve months to competitors people that focus I where couple stronger on of from from think, on are dozen are or today

been the market. that And historically has of more than growing rapidly course, pre-COVID much normal

it space So we was a wanted that in. to play

around focus So that. been real that out driving stands answer except really on anything no just a there’s that good

yet? question competitors look second what know quarter the course, be our States. USIS, no, don’t growth United and of USIS' their than non-mortgage but I is, we expect half their organic higher question, of back And your the I The like, - pre-COVID, are would growth in first numbers

and competitive, by that be a the that’s win still team still they’re the as We in back chasing. rates we're the growth that potential marketplace. rate So believe to has our exhibited having get

had me fact the quarter and And impacts into and first the the when in having our that that from half second I in ‘XX COVID positive. in and marketplace. support about gives is mode the performance going and the the USIS performance have to customers sequential that economic react pandemic growth still the think momentum recovery going confidence they The of they’re

opportunities bundle the other sales we to our using existing some can our to new the with for with - TWN solutions having that the more unique more our data fabric that to or combine couple that you integrated with that sell team go market of those assets can have are ways and value that bring with USIS the then marketplace. single marketplace, credit data like data, USIS And wins the customers the our team to have data and in file in TWN

David Togut

much. Thank you very

John Gamble

I’m through I’d dealing May as very closely effects The we’re every work are the the throw sure that you April, June, and is, evaluating because happening as given pandemic, only so. of thing we our business there now with, funnel in and is to know, the around - customers

David Togut

Understood. Thank you.

Operator

to Meuler go We’ll with Baird. next Jeff

Jeff Meuler

Thank Yeah. you.

the to impacts margin through, guess, more. wanted a the I Just I talk bit and cost-cutting

million Are illustrative any of So what’s of you examples? all annualized? in in the QX $XX reflecting benefit the the

things just QX be it actions? it at is all like does the savings cost higher or impacting like all? from And variable that also Just might is in there? Or Thanks. it increase? the And include like compensation impacted what’s

Mark Begor

the most as saw took soon pandemic hit. as we Like companies, we Yeah. actions

said I comments, place the got or transformation see we’ve a products. new hiring for we for in cloud freeze need in But my excludes we at Equifax. As where that resources

So there’s expect, you some roll through. that, that benefits would from Jeff,

until would benefits. the be of the internal and travel There’s at limited -- commercial one’s some No rest travel around the no there’ll traveling. there’s year there’ll be travel. for We’ll vaccine I Equifax the clarity guess

So in that rolls there.

that that I’ll integral John And work are trimming new let others then the product are transformation we’re our around parties, tightening take back also with can costs discretionary the that around - that and and we are other to advisers, belt the or not rollouts. are question our consultants, framework, that. the doing - our cloud third areas Those John to answer

John Gamble

Sure.

savings that mentioned specifically the Obviously, doesn’t also be future. that since variable occur, on first variable the in would include it so no, And if you compensation was So to quarter strong. was compensation.

it’s removal what with in the right? think we growth any February. Effectively, shared had I in So have Mark spending the you back it plan is, of we that it, in would covered

which our of effectively, have we’re real in then the more we’ll the terms and also then work, in, we reductions some in discretionary as said. then taken progress to in and And spend, flat, come everything employee to T&E. holding reductions Mark we’re reductions expect expense, continuing there, substantial and have in And

new the hiring benefit So see we’ll attrition. of and no

plan But that’s we’ve that’s and what reflects. second what's end XXXX. in the through scenario our longer the term of numbers the that’s done planning today how our quarter And we business as

that, view Beyond you XX. is that on illustrative to no savings in incremental we the there cost slide benefits provided

Mark Begor

you we're our I clearly to in economic running we’re to how and the both that. said, financial we benefits, franchise. the company, challenging to spending savings the John even one what accelerate transformation, we’re to I’ll includes this the we’re a spend We’ve do add strategic said we and protect think Jeff, if investments spending we time, and about way – plan comments maybe that and going when could frankly, continue which more the perspective, And make might XXXX. find cloud From our my in quite comment. I to in accelerate that clearly, strength to got hopefully

And the same with NPI.

deliver products. last and that know, to our we of the the know, related you to order recession products new year, new around the XXXX, our future for Equifax. As opportunities new to but in increased spending more in NPI, you in impacts, If products that find we will spending in we in resulted near increase also do term

meaningful, that franchise on in these Equifax in words, the then cost on are but won’t, discretionary are the ‘XX. the of ‘XX areas my future obviously impact and belt are side, in tightenings And where focused we

Jeff Meuler

with then just of claim to help relative the the the overages recognize I claims initial Okay. you timing better for business. revenue when the can subscription kind do UE understand filed? you factor? But when model And understand me is Like

Mark Begor

pretty they’re their work. That’s of economics quickly. they’re the Well, how if Meaning outside subscription, clock. on the

John Gamble

Yeah. So recognized be It's and the overage bill service, just this claim in right? - the delivered for and period. occurred tactically, has and would we the then be revenue then filed deliver when we it’s the it, can is would when

Mark Begor

mode in a of in weeks. customers with the bunch we’re a clearly couple the like lot last that But whole of of

Jeff Meuler

you, Thank guys. it. Got

Mark Begor

Jeff. Thanks,

Operator

We’ll go with next to Bill Wells Fargo. Warmington

Mark Begor

Hi, Bill.

Bill Warmington

morning Good everyone.

say in Social contract. that So Is the a congratulations start And ask, XXXX wanted to first, just when you start? on I Xst want to Jan Security generating revenue?

Mark Begor

timetable very look to we we I we give to in. have We have data that really a contract, of us, that specific ‘XX back. It’s largest because visibility talking ‘XX, mentioned. be the five ‘XX It’s is and the that wanted contract a a It’s we And as about that power for contract in were and rolling significant you one obviously, that. employment contract and represents history going as for don’t in some Yeah. our income and EWS. year ‘XX, it’s if

to financial year, certainly on in the few or the more quarters our in And either put the we to to next you framework ‘XX as give we or guidance closer plan we’ll that. that later closer get place specifics

Bill Warmington

some of for terms for in be seeing credit as what Okay. of total to of that and could I you auto revenue? doing originations modeling volume if insurance. my percentage And it what if ask going a represents for Equifax was you would our get follow-up, in for could of card, helpful put And numbers you’re terms sense then also a around

Mark Begor

Yeah. kind if that help know to going on don’t John, handy of data. you’re one. that we have me to I have

our than to in it cards when I smaller P that and space. They’re in we larger probably the than we’re that loans, comes think United States competitors you are. know much

homes, consumers globally can’t And loans a in P they the financing then their and impacts get it. on because right? and they sense, we’ve go out of it’s and car common buy cards, If seen the clearly a largest car can’t dealership auto, can’t use just to

in there’s in spaces. So John, you those clearly every in to that would add market any been impacts way?

John Gamble

say, of – I non-mortgage gave business. think everybody but, we total, quite detail I No. broken for it down no, I’d line by in just we haven’t good on

of back So to we’re granularity think a I level hold that’s going on.

We’re where are. we okay

Mark Begor

back that uncertainty maybe you of which is we They’re prescreens might have customers are the their raising imagine, volume. pulled originations. consumer, what because or on seeing risk deal the with I - just around impacts think the we scores as

Capital’s have And Until the back I GE took. it’s around are which as kind businesses, is be business, card in to cards, credit P now we of loan, Synchrony, you the I clarity whether going may consumer you some conservative running mentioned in recall actions was comments, that in my more your those and XXXX you’re those auto or originations. on

the the credit and that management because book in side my the countercyclical flip experience, spent that I money that of which on to is rapidly. increase as so decrease we’re is manage business line in, beauty in existing order On changing you have the mentioned, is more actions the of the is, and consumer we portfolio side is

on in And we increased Solutions we less around discussions and seeing and our some from Workforce penetration or historically that area share. of one activity see where we’re employment traction is data those real income some had market spaces

Bill Warmington

Got it. you Thank much. very

Operator

We’ll go next William to Blair. with Andrew Nicholas

Andrew Nicholas

morning. good Hi,

updates. think prioritize the data Do this new to coming about enhancements product recessionary the could of for the frequent demand persist a seem talked level You of frequency out to you’ve quite bit which many rolled out more you address environment, of crisis?

that demand lasting relatedly have to customer on that maybe the then think behavior you you've a changes And impact are could other seen more there any side?

Mark Begor

Yeah.

predict what's we’ve What's this the back? look like? States the so I think and anything how to action? there’s to to of is there going second wave plans uncertainties because happen it’s like really in about to never the going here tough protection payroll come to going the consumer unemployment be many seen United after stimulus Is a going

helpful. is is be at going and seen much to how all it. sectors in really Clearly, in the you the so and going travel long will one, stimulus that depth things be of there when have just unemployment unprecedented about to massive. this cycle layered those amounts this you put we’ve impacts be is impact which think But from how So many

your it XXXX, just data, to refreshing much refreshing Whether this in because to expect many more this event economic of this will portfolio event, do I frequency on economic be frequency hard environment. uncertainties the more predict, so than it in there’s your post persist was the in

working uniquely I employment we think - and would we salaries for do to is to that the be their and database economic had ability the this that in but different environment We so is today, scale going [ph]. in didn’t the comments repay XXXX have valuable of mentioned is people’s than in Equifax is The who’s one. data, not, my second say thing that and who’ I be much volatility last going debt income to and earlier I

think And and your workflows we’re opportunistically it’s in more to that TWN work I data of the becoming then our And work or income to does point, really trying result that. on employment possible. going number forward?

verify to in When credit most and all three every - that’s part really they you United think have files and the and income about mortgage, States most all mortgage pulls the for employment. originated

workflow, very integrated we of in have only still more I for have to payroll. have say that We we We’re opportunities we non-farm but half system only, have - only the system integration. don’t -

whatever a the there that of have way. So verified that, something to is, in originations or is percentage XX% be the like another

So we’ll grow in to be that able space. going

like in for like result pre-pandemic in And now. like We period extended we’re sectors. in really an and Workforce and spaces other we’ve cards, of could P don't auto, of to working spooling up share this market been same penetration increase loans some have on other its which the that some those Solutions

Andrew Nicholas

And helpful. then Great. quick That’s one. one

Verification Employer this As growing Solutions mix us stabilizes year faster a with a Services business refresh the potentially the business, you bit Employer Services of on margin businesses? profile could the Workforce

gain a the next might over of Employer expansion for to quarters? trends business Thanks. stronger impact appreciation Services handful trying Just how margin

Mark Begor

could maybe take you one. John, that

John Gamble

Yes.

we that of like given because What have somewhat that, might that larger are differences. right, the somewhat haven't margin Employer some Services Services we specific a pay below online lower, royalty that said is USIS Verification bit have than they looks and payments okay? is what portions quite So USIS,

actually a breakdown. But we given specific haven't

on can split of we probably I detail and close. total think the then BU, pretty you the given Although gave get margin for revenue

Mark Begor

incremental I think is John, claim margins volume on quite to say unemployment this safe the it’s high. that incremental

John Gamble

is. It is high, it’s quite relatively It yeah. the is. It high. size verification, but of Not

Andrew Nicholas

you. Thank

Operator

question with America. from Gary next will of Our Bank Bisbee come

Gary Bisbee

morning. two guess, Good guys. I Hi, question. part

business, about on couple on do lost last the jobs sorry, Solutions of I'm million the how record? weeks Workforce your - in First, Employer the think XX services we

that How talked revenue? - would active the How jobs. to lose take does down flow records, go their as to but does it you about continuing people records grow that through

Mark Begor

that clearly unemployment Well, process don’ pick We there which is data impact will We claims be some process. do the that up claims. we on valuable there. all

quite John? So there some be minimal. impact, could I it’s think but

John Gamble

Yeah.

has is payroll So we mean, employment that right, dynamic the extent would have is referring yes, the I decline. records to, the that what files given number think we done which that's layoff much get then, effectively, is occurring, a so lower, that you’re employer I as work that a to

year that, year-on-year, certainly, number of offsetting a subscribers the but a is through last end sorry, in kind was records. as right, of this through increase first we continuing I the been really, of in also the quarter last and What’s quarter very about substantial starting mean, increase large talked quarter there - September in

looking records unemployment is you’re become from absolutely what large once increasing very increases year-on-year in some So and unemployed. at individuals offset

And from the I think new also that a benefiting I to we work us team just referenced and the what continued relatively is rapid add that's dynamic have benefit at then contributors is pace. doing year-over-year the the

go to those employee as add our also So dynamics we’ll have see record year, terms lower then as through new have base. which play of the two you our impact contributors how which is see effect, - that our ability bases to the contributors out - we that in negative this and

additions six be that to net far, we’ve seen continues a positive. because But the plus to of contributors five in large so over the past months new seven

on what we’ll year, you go keep looks the we it As like. up-to-date through

Mark Begor

or were the and consumer’s to them they our Solutions that, months record may we they’re nine know, if pull as whether you our file, through originator consumer there’s working to to sell flavors process you maybe, et that working - sell cetera, We if the Workforce probably pull upon know in. a in hits file, various charge ago, it, then months a that that product six they they And ago, XX we months the for ago, just today in or dependent integration of system John, add TWN mortgage data. the going system

year – on another inactive active sell. and for working is records, we months months also use cases is or revenue ago today applications there’s meaning source where or so-called ago customer us was We a or ago our or not someone six that two database

we're ways including the So there’s records. the data, able multiple sell active that to

Gary Bisbee

Okay. follow-up. volumes seen a about tighter consumer impact number to a potentially and We’ve bank Great. of there quick lending beginning out reports just underwriting broadly. And refinancing more standards then

you - the mortgage that incorporated that’s seeing the you that in Have you. implied by are strength in that data? April trend data? Thank Is at all

Mark Begor

Solutions. Workforce with in think it’s that see in because us file - mortgage in USIS is and to for both hard fairly strong, the that’s credit and then verification mortgage I the

trends obviously, USIS, down I year. first think, as and volume quarter John pointed out, are in is, non-mortgage our last versus

with like those and meaning shelter buy cards, P traffic, in or primarily to can, reflect credit place, from it of Or foot to just going people going a not it’s reducing activity be loans car. of much you auto and It’s Part originations. a economic you And it’s is can't going and things in as combination. but happening. them are be to

which what of you And where in then you was the Capital's did I tighten where figure as consumer when up some originations, be. I some of be, it is that going I that's business, know GE and XXXX, - to, to out is you lenders, I’ve going talked running to so described

to cut-offs the States we’ve in only other book in your still But originations. raise but United sure the you’re not markets markets, you’re or while ways clearly around protecting in declines you some score seen globe. make those different So doing

Operator

go We’ll Huff Stephens Incorporated. Brett with to next

Brett Huff

you’re now. exit ‘XX, of if I'm my from minus I online right. and me. of in model, well. one about at back in minus rate the thanks bottomed quarters guys. seeing about you questions remembering I and out said for USIS think you XX% you’re hope And guys couple I’m morning, the XX% A I in the data, Good doing all looking think

What’s today? kind contrast if wondering those those what’s more different the two just and compare of two, right. I’m those between and I’ve between why numbers, got similar

Mark Begor

In there retail similar auto I’m that. activity. nothing sharp at operation, is XXXX. there’s There down is little every about This wasn’t being different. a shelter time. shut a just it, so there dealers, for Well, on but the different, months wasn’t dramatically name That’s and XXXX you in place economic

to you as starting some earlier, that. going me a point That relaxation things to here what mentioned is allow I really so as go and is restaurants stores we or in And consumers two until that’s Georgia, like go to they’re back like performed to we what to I just week one normal dramatically want we’re to are open call get in and can't to in see meaning states economic and compare to activity, to allowed and stores how would on. different

to different Even just vacation? to off and how be drives a going economic going from an of on XXXX because with new consumers plane economic my view Are they buying going a are is cards. put going car? standpoint, activity credit than on operate. that it's this to they that, to go dramatically Are That

than been our unemployment never the obviously The at the waves and in were they salary changes in consumer and of different now which waves is furloughs of can XXXX, or that operate. reductions. very are seen, we’ve just never how lifetimes, scale, operating It’s

that’s So dramatically just different.

a Solutions the through share we COVID of to the the we business like is we powered businesses categorize how crisis of was in our powering the is, and currently try through and to it with what the Workforce how looked why XXXX crisis. thought we view resiliency business like you XXXX give really our about was but you Now that our - important of not specific percentages,

continue. to that expect We

in same It’s goes forward. being reinvest business interest the The thing. to is United in margin with use can as good mortgage the that a that States mortgage. US we low over-indexed generating us rates, to business With

think, is the our in I until the we which there think being now, serves we’ve similarities, I is into So in well larger differences economic of scale deeper recession. was as this COVID get more seen versus ever the difference us but recession-resistant this businesses around dramatically XXXX, economic worst event

Brett Huff

Okay…

John Gamble

right sure we said I said numbers, online, the we just over comparing clarity, non-mortgage XX% all. make Total wanted you’re down for just to just is that’s Sorry, down online. XX%.

Brett Huff

you. helpful. kind credit or used, tally, cases online Do kind less use the having if question the pulled that second is, Got will. Thank kind That’s any daily the files have you are being into the you impacted? John, then mentioned of more of And data insight you are that’s you. what being or being of

that? And Or stuff. offers type portfolio of sort versus difference originating of on data doing opaque Any of management between too I’m still? sort is versus the credit thinking offers kind marketing, maybe that credit hints in the

John Gamble

management So and all, not us, for most, marketing portfolio would batched. be

in of that’s reliable we it subject as for visibility that the be where FMS. end periods less isn’t that business tends have place batch and an think, would you trends. as now, happen because a to really to So And would I mentioned call,

So seeing will they based we’ve but made And trends. are about on the there, we're online. trends on assumptions what far happen less they based in are

there Within type. so specific online, by in I is a deeper But detail use within do think we that. some much, type know And case of no, right. general than terms industry not lender, a industry within

or some if new But it. for even mortgage we example, know purchase we’ll a tell for someone it's or not HELOC don’t file, pulls to versus or a a So who in don’t for know refi if cases if certainly hold or it’s difficult - it's necessarily [ph]. we

Brett Huff

Great. guys. Thanks, Understood.

John Gamble

Thanks.

Operator

the go to turn Please I Jeffrey would like Dodge. to call over And ahead. now

Jeffrey Dodge

time. everybody. I than material bit Thanks, And normal, for everybody’s on but our again, operator, today. website. longer that a call call. call the is will will you know went refer our appreciate conclude we the with conclude little to that, our That Okay. I

Operator

Thank all conclude does That today’s participation. your you conference. for

You may now disconnect.+

Equifax (EFX) 21 Apr 202020 Q1 Earnings call transcript