EFX - Earnings call transcript Q2 2022

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Operator

Hello and welcome to the Equifax Q2 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Trevor Burns, Senior Vice President, Head of Corporate Investor Relations. sir. ahead, go Please

Trevor Burns

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

Certain materials will guidance News Earnings During materials also making third at be that to to Equifax our understand the a be and certain Presentations cause of in the risks, These can XXXX its that QX Conference are SEC, set year found to of our we materially and filings. will and including environment. we differ Form & filings quarter full making actual impact from factors the in XXXX call, Also, number forth are labeled with These be including subsequent certain reference business reference, statements, could help you tab XXXX the Call. IR section factors expectations. website. that Events forward-looking other may risk uncertainties our results business XX-K statements involve and our

our in earnings be operational the Financial are of detailed IR and attributable Results certain also non-GAAP items underlying affect measures to to will tables, that at found are Info with performance. which our reconciliation referring measures, the be EPS financial tab website. Financial release These which for adjusted included We can be in our comparability section Equifax certain EBITDA, including adjusted non-GAAP will and adjusted the of

four. over like on beginning to turn to Mark, Now I'd it slide

Mark Begor

X% the was U.S. at end our Constant $XX almost morning. $X.XX versus basis Equifax inquiries including was with above X% with another at growth the EPS our our U.S. up guidance impact $X.XX market of Trevor, April of credit and the which billion, record of FX. of mortgage mortgage currency second was about million X.X%. year. and April points quarter revenue the range guidance, at last Adjusted or down quarter negative of XXX XX% revenue of of middle overall, Thanks, guidance solid with top good April level delivered

As to in the mortgage through our July, credit as decline of core organic allowed which mortgage in decline. quarter. the the us X.X% year. U.S. market constant about last the XX% currency against expected, mortgage growth expectations, strong. first down quarter of XX% increased XX% deliver were the quarter of revenue market revenue Consistent and we growth growth the versus XX% inquiries with Core In were half very moved a

growth X% long-term we expected. X%. and BXB currency than and and represents revenue Solutions in online expectations. course, above strong XX% growth core our of of was this XX% about first was growth, BXB the of XX% was International above to USIS above constant was non-mortgage delivered non-mortgage of quarter expectations. And up very which quarter, but Importantly, our outstanding at from Equifax X% constant currency non-mortgage well XX.X%, also growth our strong lower was of framework Workforce XX% revenue.

in the However, declining shortly. our this weaker business expected, I'll offline much BXB than cover fully was X% and more quarter,

of margins for million, quarter. our line totaled EBITDA $XXX the adjusted up and with XX% in were quarter expectations above X% Second adjusted EBITDA

U.S. now to XX% approximately have XX,XXX during to Year-to-date, our customers migrated we've of quarter make transformation, continue the technology customers. our on the Cloud We strong of the U.S. about And migrated the the in cloud and data since EFX start transformation. progress we

new Cloud infrastructure, product we decommissioned resources U.S. our invest in four and approximately data new new customers continue So centers. also Leveraging accelerate migrated far and international product EFX innovations. in to XXXX, XX,XXX we

far the record new continuing products revenue In launched new exceeded momentum XXXX, XXXX our introduced from years the XX products. So XX%. strong and last extremely over in where products a we we a improvement over point highest as new index, last XXX over years XXX from Vitality defined basis is and released X% -- quarter, in three the level This was from Equifax. XX at our Vitality year XX in

XXX basis and expect we framework we above the is XX% and growth half above XXX in year. Vitality of the goal benefit XXXX, performance For XX% strong This points which the when XXXX in beyond. over our started second and and long-term basis our NPI will Vitality points

broaden to strong XXXX with to continue strengthen future for we lever XXX is growth acquisition are and strategic workforce, invest growth our which revenue EWS growth to of our a regulatory announced earlier to the our service I-X strengthen are This strategy with largest further our M&A morning, in acquisitions to January and and to Bolt-on bolt-on our this central from Solutions that our our and We long-term free capabilities. since Equifax M&A. will flow acquisition points that Employer integration Workforce cash Solutions basis bolt-on business. framework fastest-growing annually acquisitions sixth LawLogix XXX strong and add strengthen strategic aligned

the provided our significant half actions we well impact as market. environment growth. the expectations strong quarter strong is with mortgage non-mortgage an adjust FX of as framework performance the unprecedented our strong half the very XXXX prudent second dollar. stronger the mortgage of April reflect inflation, to further the it negative guidance to This rates from for with from XX% Despite We economic are pleased weakening felt our in constant currency second U.S. results, the higher first we on in and interest was set beyond record impact our market particularly strong clearly

core growth XX%. remains revenue Importantly, our for very a expectations XXXX strong

constant XX%, April both a guidance. strong from for revenue unchanged non-mortgage growth expectation Our remains currency very our

was thought While mortgage enough our uncertainty half rates mortgage to we between second aligned second outlook. activity our quarter impact further with adjust and the there actions, guidance, mortgage future our results Fed on interest were April

is updated credit about down are will inquiries for from Our basis April half, basis declining expectations XXX points XX% with of Bankers second to XXX XX.X% XXXX by these originations mortgage over framework which in forecast the that mortgage decline levels. our units night. Association half to the mortgage for origination points This was of released Mortgage XXX that second the down beyond compares last

our $XXX originations. up an Solutions mortgage impact half in The the is while second As revenue a USIS revised impact on dollar. a from you of for of FX. This for revenue of to revenue stronger revenue framework, second XXXX inquiries at constant million is two-thirds but over in know, balance guidance XXXX, almost results currency X% to FX half mortgage from the basis. and related reduction $X about mortgage And inquiries, midpoint up headwind in change billion FX tied in down to the or from $X.X more our credit closely April is million more still tied mortgage $XX closely from versus is our about Workforce April last the X% the guidance of million year with

up from of is to from adjusted our EPS X% guidance down $X.XX $X.XX, about midpoint guidance updated April and XXXX. a Our

change consistent half which XX% revenue non-mortgage in some XX% half the about as half for in and the the growth half XX% and a XX% up with very in second XX% no is of in remains last said second the remains year strong strong and XX% core of non-mortgage second half comp-off of in XXXX strong framework up Equifax of growth In for our and our the a I the from we double-digit earlier, As XXXX, second organic second year. and XXXX XXXX. there's revenue framework, results of XXXX XXXX,

of the predominantly a is introductions. core is by XX% were Solutions continue framework section XX% This the Workforce to the quarter organic revenue With long-term driven mortgage growth, strong organic quarter strength USIS the EWS Core of and points strong core growth. for organic was growth bars, line second core X% drove XX%, drove second framework growth revenue grew substantially a as of and our of XX%. outperformance about performances. quarter, new quarter and eight of XX. substantially X% to quarter. in USIS and revenue of strong performance was of with Turning Non-mortgage above International revenue strong international, green accelerated in across very our in core XX% growth to also of growth Solutions above non-mortgage BXB in slide Both XXXX product the the supported XX%, five, core in growth. which long-term remaining the organic our expectations the by in organic expect we Core Equifax XX broad-based revenue in very as accelerating to well in online Workforce growth which financial rollouts, NPI

in core a of mortgage XX% the mortgage As was revenue quarter core in six, slide Solutions detailed growth X% on by XX% U.S. up USIS. and strong Workforce revenue growth driven

system record be a and Second an originations and core estimated about outperformance overall of additions, to is of quarter Solutions the MBA on revenue XX The volumes. in performance integrations pricing, of and continues in June was driven very very as transaction products credit inquiries in period mortgage only declining of Workforce and mortgage the XX% points penetration. strong, strong new continued particularly TWN despite by U.S. market system XX% market decline by XX% measured down mortgage our decline mortgage market XX%. growth

We see very from continued EWS in this approaching to the expect growth mortgage second core strong half. level

points change we creating quarter, order reminder, a consumers rising inquiries In in frequently, interest on by between inquiries. market trend more credit the U.S. In than saw we origination units poles. estimated of credit second estimate rate perform favorable inquiries file the the mortgage benefits mortgage mortgage in variance environment, the USIS and we as rate This believe a a credit originations. mortgage change thus MBA. four tend the the shop estimated to better credit As USIS

at called employment is closing. application the and However, TWN income later mortgage process in typically and

in result, a are does interest that mortgage from as environment upfront correlated As rising inquiries the not trend shopping TWN as occurs a closely originations. to rate EWS much rate more benefit

XXXX, slide to that to XXXX. which Equifax of XXX of expect we strong a from non-mortgage the XX% revenues, total saw in XX% very revenues In up we be basis revenues total Equifax is seven. Turning points

by accelerated card, our and expected index above-market course, to our accelerated verticals Workforce Given XX% of such penetration as with growth further XXXX and XXXX account the in identity fraud vitality acquisition NPIs in a in international talent, markets. be and and fast-growing growth government Solutions

non-mortgage expect We only the from NPIs. cloud-native also leveraging being and will Data our revenue always-on processing through expand transaction the Fabric bureau to stability, faster system benefit credit

growth revenue XX% revenue driven over by and to quarter growth the the revenue their outstanding Solutions XX%. now six quarter eight. fifth delivered growth slide non-mortgage growth XX% Turning in over quarters outstanding core Workforce of second in of quarter XXth the double-digit last

is key continued Workforce a reminder, execution Solutions this right-hand XX% a growth Workforce future. the non-mortgage Solutions As over driver and growth outstanding revenue of across Rudy their team of for and the big detailed side drivers on the slide. Ploder EWS

next As the to acquisitions of I Services referenced acquire LawLogix Solutions definitive in and a strengthen night, signed records. a last Workforce Employer string we vertical adds agreement earlier, TWN that bolt-on

two six Over the since and EFRA including completed morning. we've this years, growth, last acquisitions bolt-on LawLogix Solutions past fall, supporting Workforce

with Turning the two-thirds to execution of over very number new we to which quarter ended records million drive by records, Since the growth Solutions X% we including, of second database. will the growing $XXX payroll is quarter. in represent consistent of agreements board to growth key year is across third million sequentially. U.S. with late payroll. four current $XXX a contributing the These very strong and the last and strong Workforce total individuals, to records employees, million the XXX W-X signed in representing slide XX% that unique end driven the Non-farm started all their them exclusive year, XX% work million included last levers processors nine, expect from have long-term We first, XXX quarter up by total team's XX%, up large of that performance their

we We're earners, XX expect to pensioners through million million make estimate move earners, million will and non-W-X In in innings agencies. bring are XX to approximately background to we insights addition records collecting as these but million progress government screeners XX gig also valuable workers to XX the U.S. XXXX. there million and wage XX W-X traditional early of XX lenders, who in very on to to XXXX wage the significant and million

have double ability and our We today. have the the on the TWN XXX total for million million database we potential employment with to $XXX income individuals information versus about market

directly with contributed including by our past a exclusive, As signed employers. XX% records payroll individual companies. partnerships over vast The relationships years. principally of we've contributed all The our payroll companies of are the partnerships majority reminder, through the are are remaining four-plus in with

penetration key our government in historical four expanding having Workforce increasing all products, leveraging verticals non-mortgage significant Second, their assets. verticals continued finance, consumer for is opportunity TWN new data talent, of with and active mortgage, expansion and by

and over government average XX% over have growth and XX% talent year businesses XXXX. organic since last Our seen CAGR since of

talent the allowing data access, capabilities our through their is both penetration histories. and to the continue workforce system historical integrations. workforce in instant of by new over current our is TWN on depth system web talent up are verticals. is that XXX Cloud in and an records, driven well the current expanding Xx the coverage and ease key also integrations employment versus Currently, information of to us as over of Google employment and government verification expanding XXXX. more strength providing with individuals API digital as million system access database as on previous provide leverages Our to We TWN web our our the database expansion which and total is up and both mortgage provide increasingly current hub from increasing XX% system which of over or depth as both transactions ability increase of than and Solutions historic resume job integrations two Workforce and The is

pools a with XX% when Solutions, of we on while than government, we Talent system represents our convert system-to-system you mortgage As about In lift about more XX% opportunity from transactions system-to-system system in to customers we get basis. to web XX% integrations. know, now have transactions a in more of

credit these course, will From it's are As our approach XXX% delivered drive levels time a system-to-system our of for of revenue. system-to-system perspective, to files to a for with reminder, matter of close of customers, TWN only integrations originations. which,

to workforce products transaction vertical-specific grow higher-value, new continue accelerating of and As database continues significantly, price greater higher and both and integrations annual extending the through to value price products through launch will per deepening real-time system-to-system customers deliver increases. revenue value and its to new average

team As I multiple runway beyond. said long earlier, a EWS Rudy and leveraging for and the in levers have XXXX growth,

long-term deliver on We ability their lot have a of XX% workforce's to XX% confidence in to framework.

well which, XX% years, framework. over our growth CAGR, past to reminder, XX% they've the XX% a As three long-term delivered of is course, above

organic growth. leg background strong space helps screeners the was XX% pipeline last and strong. in penetration, strong remains -- their for again, partners year, was above APRs and XX% a Turning Services their and and mortgage XX% customer via of Workforce quarter risks checks justice Verification Intelligence organic million verticals Risk strong mortgage Solutions the of now key to delivered in up is Growth expansion of risk a almost law acquired over now XX% verticals over driving channel XX, in $XXX revenue with assist organic of continuous was workforce million. another decline slide XX% $XXX we investigations. total market. people Insights the And of revenue Increased represent revenue decline quarter. market. despite which monitoring. XX% intelligence. are XX%. of had XX% and with NPI late growth Revenue And growth, the strong XX% Non-mortgage exceptional million, row, delivering up Intelligence hiring second and in the quarter, despite analyze Solutions revenue in enforcement $XXX significant growth million helps growth also volumes revenue, second XX%, the $XXX agencies very revenue XX% verifier in their background growth U.S. Justice Non-mortgage and quarter their of delivered

represents and the We on Solutions strong growth the are XXX% Solutions and future of Talent very respectively, had and record of positive Insights quarters. XX% our outstanding in delivered non-mortgage, growth and product about new business. now verifier quarter Talent Government growth potential of Workforce organic and which total revenue. solution, almost XX% both XX%

quarter significant XX% strong of organic continued total state contract. The wins revenue We expansion continued SSA in vertical level and XXX% at our Solutions XX% leveraging also up strengthens the with the National business, Services principally with growth also these and Clearinghouse Workforce large data and was of new saw over strong data expected our $X Solutions revenue growth Non-mortgage to government deliver X% the other of up fast-growing double-digit driving organic leveraging ability $XXX $XXX quarter. revenue strong and in hub billion million current consumer the new Insights growth talent-related auto verticals, retention TAMs billion and EWS and due is for the in integration down over in and XX% drive both the hub data growth Appriss solutions, assets talent banking outsized X records employee businesses. historical The lending showed unemployment government and credit Workforce products. Employer debt and of unique new Student grew our in the in the future. decline and growth, claims management in million to to

total in growth ERC, driven uniqueness in up and with outstanding XXXX again spending EWS in quarter. growth growth expect In margin strong very federal both EBITDA growth COVID the was long-term strong increased as adjusted federal marketing, strength Services above-market data Services Solutions and businesses we're Workforce new by the in over strong technology to credit for their and revenue expectations driven program lower by and on delivered a of transactions our credit program XX% and the businesses. team a I-X and XX% and UC employment our tax and principally and was remained be quarter The Employer XX% FX we well our onboarding to clear revenue, quarter, the well another healthy down XX.X%. value and UC tax XX% and base continued excluding out. quarter, the the during second to XX% Solutions April in at and to double-digit above strong income in and Employer -- relative XXXX of Workforce the positioned ERC XX% runs deliver well tax jobless the core lower COVID future. We ERC as claims framework, Rudy revenue products.

slightly revenue decline $XXX year in The to is better below XX% down XX. USIS of total compared to was reduction revenue expectations. driven was mortgage in down USIS percentage slide credit at of on and declined points about and by quarter, about revenue, our $XXX mortgage the Turning the X.X% that million USIS million which market last XX% inquiries XX%. X was the overall than

delivered USIS X% FMS non-mortgage of end This Importantly, of our discussed revenue which growth total consecutive growth revenue at potential revenue. in million their we with X% X% services growth $XXX low was to sixth and marketing to XX% BXB quarter USIS over the of April up of organic due of in X%. revenue the was represents lower-than-expected

non-mortgage with X% was strong online organic growth revenue X% at growth. Importantly, BXB

quarter, our Kount, as commercial double-digit identity and services, well financial as During growth the in insurance, saw we fraud business.

identity We continued quarter supply volumes continues about perform well. issues. chain saw lower favorable which also unique and given auto Kount to auto the the pricing in offset in on direct-to-consumer with growth fraud very solution provides flat by

$XX capabilities both score fraud three quarter offline X% data weakness which our Equifax of our in lower new the fraud driving market-leading with to BXB into of we combining than had our the and has identity and data the declined development Fraud represents the core in principally provide offline line Financial FMS off-line. Omniscore data is principally team Services, data Equifax' and to the data lines the their internal growth in is decline quarter. physical leveraging of product XX% providers BXB including but header to enhance business in decreased better first over digital of on expectations. and identity quarter solutions, own business to half. services half. Kount customers down strong, offline saw year-over-year continues single this joint including continues Our of historically business, decline comprised continued first fraud which and services the although our of execute and AI revenue, We was a either identity be revenue data and Marketing is of services was than substantially in or the of shifted of million, as of protection. XX% use refresh first BXB first to second about in This data. the first frequency Revenue Kount's

to during the for the XXXX, of as the remainder line declines expect and of partially Services weakness for Marketing see as represents not well with We later offline new expect half, at level second some than BXB offset countercyclical decisioning Marketing down provide focuses to third, data Services, in Services more XXXX weak business review activities. our the year. of financial market our institutions team half in analytics in portfolio provide about slightly evaluate non-mortgage be as Services. over business organic to line of consistent represents perform growing we Fraud growth. for offline often the is Data prescreens remainder economic portfolios This is risk this through good portfolios year. risk was to or the marketing is first half providing revenue BXB This Overall, we this growth in for to institutions a their a this as first by in of a Marketing BXB and bringing as expect IXI the This services down in cases, solutions offline well revenue weaker on to management periods. slightly is very business data which which financial but customers analytics we with BXB business principally business acquiring. somewhat to continue And the This the online data continued of our performed in we expected, they're and existing the for and Financial revenue. in in or health slightly which third quarter

to enhanced cloud growth offerings completion product file, XXXX, data. will combining the believe this U.S. data business as our will We NCTUE to lines TWN, offline look three credit DataX, fabric new offline in enable get all of BXB Equifax fraud the BXB across Teletrack, IDN we and of XXXX. of we As drive

expect total, in non-mortgage growth BXB see online continued For to we first with consistent the strong half.

result total Services X% second growth Financial BXB Consumer at end Solutions U.S. in GCS declines X% long-term half DXC that versus However, bottom expected non-mortgage we framework last business, are the X% or below quarter business combined revenue to Marketing USIS to in year. slightly up our fourth the in of growth. million, USIS year, last flat with the in from and had revenue about $XX of quarter the of

expectations. the XXX cloud second expect team were sales overall leverages USIS slightly decline the in the strong a relative new lower quarter decline but roll healthy NPIs. quarter pipeline the in rates out to win And driven We and quarter, to first with in mortgage. resulting improve from is first rate basis than deal pipe margins remains than quarter their our very strong half team higher USIS by principally lower a revenue points adjusted of than EBITDA with quarter. to number wins XX.X% growth first as The better a key the the had the the

local Turning from XX.X% was a slide XX, up International shown our the We're $XXX a execution now seeing on broad-based to on businesses. International, basis. strong as million, currency revenue

debt government to from several in U.K. past management U.K. seen We've strength our New debt was currency continue. over the in driven the that principally increases business. quarters York local we XX%, placements revenue expect by significant up

by by European quarter flat consumer the in was and declines businesses and expectations, driven identity our fraud. strong Our growth CRE in in partially and direct offset about below commercial,

saw Australia continue strong driven services in the America. X%, and was actions adjusted Commercial the products years quarter and offset Uruguay, local and currency mortgage-related The introductions partially Mexico and at from expectations. teams’ double-digit Solutions, of driven consumer rate over basis to points primarily online growth was revenue XXX revenue to International for year to was drive due region. increases. consumer elimination Russia Argentina, consecutive Latin new last strong sixth currency Canada three X% product below This across in due services, We past currency local EBITDA margins from strong of were growth joint Pacific by up local which equity Central venture. Latin and pricing growth businesses up identity the income is revenue Chile, the our in by interest Analytics HR XX.X% America. fraud. our American growth Asia and our by down business, was growth strong XX%,

business a product Index of Vitality this products flow EFX our points above As XX, units. with slide the detailed year, basis year performance on products last on framework across of Index shown broad-based products our ever. slide. goal EFX with up very We've all new capabilities XXXX delivered XX XXXX in in XXX another we and which is highest over some new strong Leveraging our on to of new record XXX over full cloud is and strategic cash A accretive central to and are XX, data reinvesting we new to in benefits Equifax revenue and XX% had new deliver long-term our our we to goal Vitality of XX%, our new driving million XXX new M&A above long-term and the our bolt-on quarter new products generation points our Building growth. leveraging XX% our cloud top-line growth XXXX. our XXXX Vitality We more vitality strong new future this which basis the far year, believe and $XXX significant execution equates slide cloud EFX of new of to strong NPI on our important rollouts, revenue detail product cloud, the the new over expect growth capabilities Equifax over early strategy product indicator is drive an EFX framework leveraging central differentiated long-term framework. so

three, onboarding M&A, bolt-on add ID January capabilities LawLogix which business. provides Workforce bolt-on unique detail to of acquisition two, upon LawLogix's during enable three employer out XX We Solutions, morning. We revenue by on building and most increase since including and investments focused supplements and latest and friction provides that LawLogix, business; our our to of Workforce services products this completed X% priorities; removing strategic M&A fastest-growing capabilities fraud with solutions around annually expanding number XX of and and clients the number acquisitions solutions I-X experience. strengthening further Slide strengthens building immigration the on add employee deepen made management and adding automation, from strategy we announced data profitable expect efficiency. one, case our X% to suite to our help expanding management number aligned strategic growth employee XXXX, our and Solutions, insights employer assets;

past Our very Anywhere XX% expanding details with turn years. growth our M&A it full John our over strengthening to quarter seen XXXX With to the on guidance. and The the year has more fastest-growing priority our third Workforce and aligned some I'll of is provide Solutions. mortgage over LawLogix's acquisition business, few and strongest product strong that, market I-X and

John Gamble

Mark. Thanks,

as from and in XXXX, will on XX% early now a mentioned credit seeing the XX, the shown half XX% of mortgage inquiries slide second Mark expectation the As in down market continued guidance we're our July. over U.S. decline that decline reflects an level

more of credit mortgage in make with This was just XXXX points inquiries XXXX. mortgage inquiries basis is originations. than over half off over levels full to reduction XXX U.S. those than second over average XX% half in of XQ over revenues Our second level to revenues. The XXXX the U.S. assumptions mortgage year to originations, XX% number closely XXX Equifax inquiries XX%. in the and revenue levels the In linked total mortgage Equifax basis in we mortgage weaker reduction XXXX points second reflect was half XQ, total over the to credit the the expect mortgage second half saw XX.X% Equifax total lower about XX.X% revenues of XX% XX.X% up of of revenue and the we mortgage period. XQ is work of

a The provides left benefit provides of levels the quarters, the on refinancing view both that provide home home benefit, shared the left heavily As we which the in and of often would of a we mortgages. from activity the side At current that rate mortgages below mortgage perspective on rate benefit or number have population in the no is refis rate purchases are the a million have of X.X on rate driven number of of mortgages by of the executed for right. about view would million level, slide refinancing slide population is the April. and of in-the-money prior homes with cash home saw in-the-money $X.X refi increase. XX The a a a

Black the most available cash Knight re-financings for XXXX, about out. for perspective, XX% data of May For recent were

the quarter -- over the in home in the existing XX, over inquiries further and credit XX% much year-to-year As impact shown our weakening We these decline quarter reflect we U.S. side macro forecasting increase the credit trends but environment sequential quarter from market quarter U.S. were at changing continues mortgage makes believe on about of pace from The third over of with market high fourth months challenging. X% assumptions unprecedented and increase rapidly in mortgage slide second down down mortgage a reflects XXXX. purchases in a continued levels the of six we XX.X% in and on last May levels, the reduced the The levels. mortgage XX% right saw June third just XX% down market XXXX discussed. incredibly for the the of

total in the ERC Workforce market about claims FX. we total XXX the midpoint The over the guidance XXXX U.S. transparent remainder weaker unemployment impacts constant XX by currency provides of two-thirds a with impacting from market to April mortgage are to in the mortgage by the the XXXX XXXX than the with reflecting market $X.X revenue expected in Solutions growth about by Mortgage discussed be is Revenue combined declines about of in with is from revenue about negative our on a levels billion the decline of driven in basis billion. X.X% to changes revenue, continue of the growth X.X% will greater of percentage XX% in with and When you decline more the negatively drivers headwinds the XX we that the negative in you expectation a walk businesses decline U.S. of Slide business. the growth due the impact and We about our April, points. the mortgage our XX%, revenue midpoint $X.X guidance into detailing discussed points April.

organic revenue with revenue and driven driving is revenue negatively $XX reflecting the is high million interest in earlier, $X As core on income in basis Mark detailing growth margins. Solutions over higher International and to the outstanding the lower I-X. and at in with X%. about midpoint and we expected over well in XX% guidance the pre-tax provides high walk, $XX of driven April weaker execution $XX by drive EPS including core consistent almost to and are growth following: income with boarding to organic $X.XX of XX%, the million provided of the $XX million expected income revenue our XXXX XX% solutions, EPS points the growth. be contributor reduction EPS in Workforce principally this are discussed of also by is government about and solutions, expansion new X.X% a largest adjusted The at core variable Slide The FX growth offsetting or of FX about above drivers of growth Higher be the impact guidance. expense by and non-mortgage organic weakening Both drives growth revenue revenue in continues depreciation about income impacting is to expense be products. growth million growth organic pre-tax remaining pre-tax impacted growth our by adjusted an per level to in million. growth growth April the of framework reduction The from about Non-mortgage midpoint of our The share. USIS $X.XX by negative employee of guidance expected EPS. EBITDA and XX and in strong margins interest talent XX adjusted growth. long-term mortgage and

which our marketing growth include variable margin to XXXX related puts an growth and benefits pressure in impacting international EBITDA margins stronger-than-expected and includes and, spending NPI. in lower overall strong to compensation drive on increased margins somewhat other has International factors product revenue margins. on Some continue lower management, July debt therefore, guidance guidance relative technology to overall April

related and continuing are Vitality cost development cloud driving index product and our and XXXX marketing As sales technology over structure transformation improved I new our just we and our data in the new and investments are in XX% levers and referenced, beyond. product as these

EBITDA XX% approach the than strong EWS is offset be expected the market. specifics EWS XXXX to Slide lower non-mortgage decline weaker areas. XX%, provides assumed tightly than non-mortgage market. growth reflecting to USIS as expected growth our view level, full-year critical USIS. to continue XX% growth EBITDA the over spend greater around guidance, U.S. revenue BU of impacted X.X%, I outside also our U.S. the XX revenue mortgage these will expected of is At which expected manage mortgage margins to EWS XXXX. by on partially slightly be the XX% BXB discussed. is We of impact and just are margins a about are down deliver mortgage to both updated in to as low EBITDA the to X% management mortgage the or in offline currency expected X%, impact business, credit strong about be our be year impacted of decline deliver is our negatively as and lower is growth reflecting business. are is of XX%. International to to to expected are discussed about growing USIS below revenue continues reflecting revenue earlier. margins a somewhat EBITDA product International BXB which be framework XX%, strongly long-term expected end for than debt to at weaker USIS of margins in our deliver by of XXXX expected margins the XX%. constant mix International market. slightly the

Similar EPS with of increases expecting We're to higher. and XXXX XXXX will margins XX% $X.XX specific on of EPS principally as transformation, over adjusted $X.XX drive driven of provided. impact in expect the at from currency adjusted flat share rate are $X.XX XXXX excess margins on XXXX, on the for revenue decline tech of of the overcoming XQ in we we provides just to significant midpoint market, be we're a the are overcome and flat third expect guidance of JV effect to impacting centered an margins the adjusted billion expense, benefit revenue revenue. of tax XX adjusted year our with and and quarter, $X.XX impact year-to-year of about us in third XXXX The to well dilutive decline would XX% flat both ERC for eliminated U.S. our businesses. up to from adjusted reductions $XXX our revenue the constant year-to-year interest negative items about well Slide million. XXXX consistent both our full This Adjusting We principally growth basis FX billion, above year XXXX and to being EPS XQ midpoint as the EPS expected the in year-to-year guidance time Russia by down expenditures the at flat quarter cost we under related of benefit flat offset at growth of headwinds acquisitions. to these year-to-year we year per compared the XQ and depreciation slightly headwinds be incurring to on Core of these revenue reflect the lower is operating the near-term the as normalization in XXXX margins on planned we from EPS the range income, capital to constant guidance a negative by discrete and by related revenue and cost XXXX, acquisition and XQ these the transformation, our growth the increased of The about per reflecting revenue X% claims are XQ be constant mortgage basis. in of other of X% acquisitions which items. income, per ranges which year-to-year. XXXX below XX% and full share flat believe XQ items guidance, a full of in are quarter. XQ of in the $X.XX to to For to currency XX% of XXXX in the and be revenue XXXX midpoint share. deliver organic revenue EPS growth EBITDA adjusted margins are execution currency in unemployment is as the lost specifically related the EBITDA as is synergies impact allowing

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

Mark Begor

John. Thanks

growth. recession. to Turning today slide and for stronger better Equifax We're more new earnings a business XX last than we XX, different much the -- resilient is and in revenue were the positioned

to resiliency XXXX decline we in we the analytics only During global the In financial saw XXXX very well a performed X% revenue. total the XXXX, exhibited expect from data crisis, business. Equifax and

revenue Solutions in strong their higher-value percentage today growth Equifax Equifax levels of economic the scale has XXXX. from products points Importantly, margins substantial including we potential relative business higher the the growing tied is in new as strong that for TWN and positioned and XX% XXXX record taking were economic Workforce TWN penetration price growth from growth, almost showed not advantage higher verticals new growth growth Strong grew event XX%, of other revenue unemployment are activity, directly size XXXX system-to-system in rates to period is and XX% verification of measured into average. well with of better increased believe and EWS than actions, growth above the which unemployment record Solutions the than levers, that levers government, a throughout fast-growing additions revenue We deploying the about like future XX% from database. and to talent in XX mix integrations, benefiting from as much in Workforce in XXXX. the Equifax their drove

cloud XXXX, goal revenue third, execution. incremental leveraging new targeted XXXX and migration Second, completion from for drive product of new we'll expansion is in accelerate XXX about with product Equifax. to development independent our the half beyond, deliver are economic And annual of vitality in our cloud -- basis of we're cost savings event we cost and to $XXX margin the driven index of by XXXX XXXX. million Cloud revenue which of XX% will expect a The point Equifax any over savings

in of growth products in expect recession impact data, recession The the marketplace. drive recession that To have These aligned economic top of Solutions, best uniqueness a and activity including the directly identity we've lines are rolled of growth first, our and assigned categories: not new As Equifax, businesses to three businesses have a they resistant. beyond lines out estimate and reminder, from we an or on this drivers we in into environments of grow businesses that will mortgage recession. as fraud XXXX recession, a will we our are Workforce that and economic and the government expect interest impact with XXXX of line to examples during them mortgage XXXX our U.S. the that grow rate TWN and or event business. continue low during from mature

management or perform activity are claims they a contracted solutions. and best growing we the reasons. lender business risk is recession some example better of management expect third, unemployment typically are contract the These businesses our significant where both in or U.S. and Solutions is where economic is account our unemployment containment in Workforce countercyclical from cards, Second activity consumer auto, declines businesses and that recession, our growth by loans P directly impacted. in for And recession impacted that include activity during

or our Equifax of countercyclical. XXXX, in Workforce transformation well compared identity cloud XXXX in recession-resilient to lines only believe a global beyond. The Equifax either and XX% cost since growth fraud position mortgage of Solutions, recession-resistant the if event U.S. as there well meaningful as an is in very revenue were or recession businesses about economic our savings, business these the Today, countercyclical. financial change to a XX% global we is is in strong XXXX negative expect flat position be crisis, We This where revenue to recession. in big growth or almost business

framework. to new our the As highlighted executing X% growth our and new cloud remain EFXXXXX EFXXXXX on XX% to of foundation slide the growth laser-focused strategy innovation products. is new leverage on long-term for XX, EFX we

total migrations. BXB XX AFX technology migrations from make million of continue approaching And now new cloud consumer over significant progress We're executing EFX We and the over data XX% to Cloud. XXX,XXX transformation. we've the revenue delivered and completed being

capabilities transition with we is principally XXXX early progressing, Our geographic as we international We're complete leveraging into the XX% continue also by data the delivered our a is through of only another to move to savings us quarter in and on cloud-native plan and to analytics X% remain for the and days beyond. in offsetting mortgage EFX growth. and market. differentiate than region vitality transformation XX, and confident expect strong declining XXXX. overall cloud in investing commercially Wrapping it more expanding the offense in mortgage Equifax our XX% market, future that the company. accelerating from core will and new slide broad-based NPI growth capabilities, our index, our in growth resilient, Equifax confident and and growth expand topline We XXXX decline margins Against XX% growth our a are on up become the cost and

XX% a mortgage Against X% Our the in this growth accelerated over -- second in a Equifax of updated the EPS. to market decline deliver XXXX, half XXXX market decline revenue of U.S. and revenue guidance reflects of resulting adjusted EPS adjusted will mortgage impact in expected of XX% the currency decline, decline for for mortgage over in market year the the the unprecedented constant and XX% deliver year. over

was strength above XX% model and over of revenue and and the the and last XX% to our above growth market, highest-margin of revenue. well both Equifax powering long-term future. growth three XX% business. EWS growth revenue as are of our is largest, approach business reflect Equifax core to in fastest-growing our market framework our years today the importantly, growth continues non-mortgage More deliver XX% of XX% the it Solutions CAGR above Workforce X% underlying and they

New products cloud leveraging Equifax the also new driving growth. are

vitality and leveraging products. in to the XX% growth from days in cloud early beyond. new And the innovation in will are we XXXX of drive in drive Equifax XXXX NPIs Our new

cost cloud our in drive topline deliver and XXXX economic have the final billion transformation growth. the in beyond. delivering chapters new to environment, offense and continues then bolt-on XXXX our Equifax on to XXXX the to XX new strong deliver Equifax data will January last, and acquisitions expanded Our cloud, since growth and in these M&A are be capabilities and in that benefits reinvesting completing will $X.X beyond. of growth and four-year products, bolt-on future And and topline analytics synergies we're uncertain in Even

or confident to We of of revenue revenue continue XXXX. long-term of in billion $X to XX% XXXX our framework in by X% be goal our growth, --

ability the about year basis about with expand mortgage XXX XXXX a for a more faster-growing, our Our points challenging that, of Analytics margin even and basis open to longer between XX term. margins XXXX questions. the XXXX up Equifax, future remain macro of per in And let points operator, our and expansion cloud-native in me Company. and higher-margin We energized it market new data energized performance

Operator

[Operator Thank instructions] first from Barclays. Patnaik be conducting you. coming Our session. now question-and-answer today question We'll Manav from a is

Your line is now live.

Manav Patnaik

anticipate maybe that of just the on touch And just comment wanted Solutions starting you. sustainability or see you of any on on Do all Good non-mortgage of business? you Thank could layoffs, Workforce strength and morning. et freezes I you're businesses the the cetera. there? the to Talent if given side, slowdown to specifically Solutions announcements kind hiring just

Mark Begor

Yes.

it's great Manav. So question, a

is the to touch in market heavily non seen TAM know, and as non-mortgage are And fastest the one pointed historical we're outperforming you market. our I'll $X broadly businesses data growing can to our hiring big as help first, we solutions And priorities our because talent the a data, our the delivering you pointed -- on And digitize continue we As the out, investing of really growth. real it's there. to we and haven't in and our substantial from heavily is -- using out, of there workforce business. invest you as billion play deliver impact underlying any background workforce screeners expand

us still to jobs the there's screening help slow our environment, for down As to digitize with so there are penetration work very in both more -- that just you opportunity And for is in open. still core really looking history. much people know, future, the if background starts There's unemployment them. even low. work to And

we know, record. total you As $XXX have million

worker So five on each a digital average the jobs totals have that American we individual. for resume

credentialing more know, education, there. So just screen. also, M&A used we're APRs that with history have to a Talent you and course, beyond medical opportunity to for strengthen lot hub. look acquired there's And data virtually every go stated or adding data just we in to that's background Insights, as And a assets of and talent, it's of that work growth we the then incarceration the really data partnerships data whether strategy

rate So have they I the one. driver the vertical growth don't of years, Workforce a another know, the double-digit But is non-mortgage going be future. growth them is a trillion big certainly, TAM over which in couple services, strong. expect is forward a -- you government to Solutions. few billion there for at Government, big the dollar $X as last very, been or That's around social grow big very will with

We have of a there. lot penetration opportunities

the It's also processes. is quickly. the incarceration or for same really lot Social that's they're the deliver labor decision people it's services. same looking have. to in instant have centers used ability a the social come meaning state also just service we employment delivers that every really deliver thing that course, we all the it very traction. can decisioning. productivity with of issues, They But government needs And used not have service And social to the level. in or that services we're to service data local thing. in information to agency, income for now of to And apply are instant expanding. And either an social that in income-based. only able social federal, that same individual only adding the productivity and virtually to We're And seeing where

where Beyond have employment on the newer penetration services, income data, get credit data in to government, we're non-mortgage those whether a origination. verticals card card quickly kind data, workforce it's and for starting the touching talent and just the in with the to of financial are supplement space

the that then nice opportunity new last seen as prime in billion, you verifications to in five $X sub-prime services $X capabilities P employer of care. and we've a used we it's that's this been unemployment in economic out acquisitions. and a near course, of or whether auto, know, morning, employer course, health space And we've LawLogix like of years those in big making in the Of services, course, acquisitions build and that opportunity challenging We've really environment. just work jumping and growth space services, done ACA moving outside And TAM claims, the loans. two tax I-X regulatory tax has billion benefits compliance the in credit, it's a announced in work credit into more

can by HR of managers more more expect activities We outsourcing those efficiently. we perform that

we as see opportunities M&A LawLogix. bolt-on technology So like we of expand we and that individual with the in you we And essentially we're gig get growth long double business, you XX% and growth And strong our up course, capabilities of recipients. reach a which is database the investing our non-mortgage why record of there and, know, companies, for quarter, of as more records. the workforce a and still income in to was of size pension which have runway course, growth, when and include a course, is the underlying

So there's lot of a opportunity there.

Workforce non-mortgage of for So, Solutions. levers lots in

Manav Patnaik

valuations these Got tuck-ins, just deals it. around these And guess, what maybe your like it sense, capacity just look private advertising helpful. and M&A Thank market I maybe some pipeline, and -- like larger in comments That's just lot from the you. then given tuck-insurance? of than terms maybe follow-up, to of in makes a the but

Mark Begor

Yes.

disciplined we've very the I about term think M&A. to to We're our as -- I very be use you tried know, bolt-on. approach

deliver acquisition bolt-on larger Kount bolt-on Obviously, are our capital. a to is. how lot year. describe a But to of big opportunity that return a larger was can highly we acquisition, M&A see cost was high very accretive Appriss You last of

a So it's the our and doing we're the big to allocation, that. in core That cloud. we're you of that our as capital we start in year off That opportunities we will the completing. over was which in with big of invest transformation, kind of And the that's innings so of coming project big investment focus cloud really or through tailing a complete Equifax. and see our final Equifax start

continue positively, margins disciplined see New products, on. into an we than we looking do opportunity to deliver returns. are and when accretive on to get to inorganic, businesses And obviously then we faster for financially get and that very adds high are growing return high very the very you bolt-on and that are that M&A Equifax top line our

points my we're So prepared of bolt-on add got strengthening we're continue three workforce, into pipeline I XXX our that XX, comments and shareholders. that adding to margin And talked the coming XXXX, we've M&A our run to Appriss. at are about flow will really a with And as look going for XXXX, of forward of into go XXXX, capital near of expansion get we like that continue at to our kind during where cash time to and that as accelerates return data end value in that we play an strengthening point our be the in be part strategy deals the identity doing XX% XXXX, allocation cash flow might very free you XX, been the going basis in free cash differentiated in that we'll be XXXX, of we'll know, and bolt-on as when accelerates those a we accelerating dramatically areas that where we've at XXXX that that will the But future want we'll it's acquisitions clear comes, appropriate, look as a XXXX, And XX larger of M&A months. the in to to fraud.

Operator

question from JPMorgan. next Steinerman coming Andrew from is Our

now is live. line Your

Andrew Steinerman

was then question revenue figure for constant to year-over-year? Andrew. on the total non-mortgage a in gave my XX.X% that Hi, was revenue growth John, it's the is, call second total also, revenues you I what basis, organic company if currency, mortgage wanted second check And on Equifax's quarter. second again, quarter

John Gamble

an gave non-mortgage. total I on entire Equifax revenue. believe And was XX.X% we So, don't for company revenue then the growth organic

So--

Andrew Steinerman

out the Right. all you But us? for you it segments, total gave can't

John Gamble

you up Andrew. Sam come or that. Trevor We certainly follow to back can on you, with

Andrew Steinerman

very Thank Okay. much. you

Operator

Thanks.

from coming is Credit McVeigh question Next from Suisse. Kevin

now is line live. Your

Mark Begor

Hey, Kevin.

Kevin McVeigh

John. Hi, Mark. Hi,

do any much frame, formal on near-term of there we purchase in like of kind you of of know unprecedented just reason ask towards mortgage here. continued to recovery You the seems than -- where it you kind the bottoming of refi XXXX. feels it you think were as within outs way are declines, mortgage cash project, I in we think of kind but for back is obviously, more any of near-term the kind see a we're sense side, of XXXX kind given GFC. outlook Is stronger kind from And context about macro environment but the the to we're like

Mark Begor

do know. I second based going rates on what's Yes, I our forecast, and market you to going market. is think know, There's you and Look, are bottoming to core People which mortgage, purchase that and really the buy and And States houses meaning more upgrade in that is what would people very there, But Kevin, inflation the houses. on hard a buy the houses. the lifetimes houses given the looking disappear, market United happen to with today on in respond than seen probably as economy there predict mortgage any to there's comments mortgage Yes, a our of the for right? the people know. half still environment in couple doesn't to stays we Fed really it. economic as you it's haven't make move

So there's purchase the still side. of quite bit on demand a

be how economic is gave -- is continued half. there we second think any in about the environment, about So market, we a expect John there and that purchase views some to

given rate for half the the United to untapped homeowners the refi but there States. or interest refi on in homes ton rate you going interest second less rates aren't because interest out there's to of refis where lower in those of be many side, the an a do opportunities equity As point in are are

$XX up equity. is equity. untapped we've appreciation price the trillion tap economic home homeowners home almost that And And about XX%. environments months, past, in XX-plus past seen the in will Over that of there's into

into or are fixed X.X% order refi are home mortgage homeowners If consumers in equity, your doing rate think to doing. access that about to which a you

of continue. you'll mortgage, do. that's about a you student that auto on We a to interest see And a that's what a loan, And X.X% an or lot expect rate fixed think if less consumers rate than heck loan credit card.

going it'll And a get cash-out level be know that. refis you I forward. So

going how X.X%. it at slow far is to is I down to the inflation with challenging the going go to to think part what's Fed happen, have

So prepared in long-term we remain talk about that's the to comments that part forecast. did for obviously, confident our Equifax. a harder future of We us in,

of margins XX% Our by investing to hasn't to future goal expand And hasn't still our of our in we're XXXX changed. XXXX $X Equifax. by the goal changed billion

making speak, is on we're particularly performance, in exceptionally we our As strong investments XXXX will that based XXXX, XXXX, non-mortgage, which strong. benefit

Kevin McVeigh

want that's little probably like you're because parts it give targets? comfortable the those towards continue lighter. actually, targets. within you mortgage other been that still And it to the confidence Where's what business I or follow-up, to kind It's seems push those XXXX of XXXX Is EWS to the with bit offset? a of

Mark Begor

And next how strong which we're Yes, it's certainly, non-mortgage and those to substantially us you twice that. us confidence ability. we core And confidence. the get those be performance, U.S. It or we February that Solutions. the add then for finish our performance it, this during XXXX. international of includes in lift In so take you numbers. XXXX going to and completing confidence. We'll core at year, time non-mortgage in gives That's we and migration, the full give advantage beyond native, XX months, are our in raised look our give Workforce XXXX you to as once through we're April, frame. if market, can And I and into cloud think, you one should mortgage know, cloud our as we'll growth if XXXX that guidance performing be another

frame our us the we've that months. XX XX confidence thing that run are other And those our in, they we really gives acquisitions revenue the the our XX% make from confidence Vitality about quarter, over in kick the really from numbers really had benefit acquisition XXXX revenue we're XX% I'd isXX, NPIs. is acquisitions synergies the that We've with that as the last be XXXX, introduced expecting should done course, in long-term then us into M&A get delivering, you as get integrated confidence mature rate Those year. last is will we're XXXX XXXX, as we XXXX, products. and in XXXX, having LawLogix. index Those to in of The give And, remember, on businesses. done or XXXX, XXXX. be. cases when our gives big of point now in those And The million into years. you of new that were in products are talk for know, we $XXX new They Vitality we you north

lot that a confidence give of around levers there's us future the of So Equifax.

Operator

you. Thank

Our Morgan next is coming Kaplan from question from Toni Stanley.

Your line is now live.

Toni Kaplan

much. so Thanks

about mortgage the wanted I performance. to First, ask

So points about last last for market. quarter, the was quarter million you talked XX about And the about EWS the in it quarter, $XX above by year. outperforming mortgage points the market

XX XX. more to outperformed like points a slide looks This quarter bit according by little you

the outperformance are little would delta, what bring XX? guess? And something So, to a changed expecting to that around, jump lead drivers it you the Or like that down bit? still sort that I why has of are

John Gamble

Sure.

it we when up outperform we I as But right? They're we makes into It additions, The volumes year, So, records. record than of actually hit south think full for circumstances And quarter, the at Mark well up so the to we I last general extremely those could executing the as already what something lower And year difficult well, into volume is prior see XXX deliver and products, XX%. right? think drives XX we're the the thought current strong, substantially. XX% what faster Solutions to million volumes. were the indicated, very were than the we all get is planned. executing decline we because market faster where more planned and dependent, outperformance covered, year new additions, of activities in points is price record actions, the all of the Workforce

of outperforming long-term, actually them that's So terms it had we they're the the to year. started allow that all drivers over when will expectations in outperform the is the market the really we

XX% we're talking So, under very, at been the think with product of will that if execution inquiries level we're against outperform I be given we half, mortgage said they're very good price that, or to mortgage in able feel talking that originations we've somewhat integrations and XX about records, very about, we second of just think strong about the the they're much about. lower talking how performing. consistent We about system

Toni Kaplan

really on the the the guidance largely like change outside of side revenue In on essentially you're seems it mortgage, Great. the non-mortgage is delta quarter. your expectations FX, main guidance, versus last expecting

pull business, you capitalize to environment because expense Just that when opportunities you of the have levers of comes we there is want if trigger growth look that lot about on. a investment forward, recession and really think if just the talk can in you a obviously, the you that pull on or strong that continued how tougher maybe to about up, some versus a

maybe pull downturn and would just the trigger? you playbook about how you are So, when thinking

Mark Begor

great Tony. a This it's is Mark. question, Yes,

the off, First half. that see second in we don't

in lot, may think about half. that But clear, but a be the do view, of obviously, we second You point and we don't have it to different see a we have levers.

a add We think if about did in going past, in how we event. talked to it and in we so levers page records like fraud we're you the continuing off, the in way talked deck, in The many in an at Solutions Workforce difference outperform to was we particular, economic had with business it investor before. business. we and the the levers First there and identity and workforce, about other

is the investors performing non-mortgage big into and to So, ability you which is cost I pressure while clearly think keep we driving we about we XXXX, of to if a want our to macro we market In our mortgage FX invest, do is an we got decision economic have that. business, seeing the think exceptionally to and continue business we're and the which event. do, us because But want to made throttle from revenue, that. well, part or it's core also the Equifax

in ready out things investing as will course, margin for transformation, significant cloud sorry, in That's as investing cost our take data new our of how to cost would which, as a cloud we hedge levers of the or same we cloud we've the transformation. of get So, economic if us know, in perform recession you we you But execute and -- like other we that that expansion of at have nature that we'll anything -- XXXX, get an time, pull, natural John? we Would centers. dramatically But in lot we got changing the and event, of complete XXXX of an XXXX, into cost lot products, a a be kind a because Equifax. the event. changing is there the could I'm completing reductions lot we confidence or decommission would do XXXX, add economic of

John Gamble

about transformation and those other outside in So so drive just we're -- tightly, manage make of investments to even are think going time, tightly year, of XXXX. expenses, though just growth. a about going product, then looking don't sure talked in Mark I not come to product technology expect we're we in we that expenses certainly that do half this point the What the the marketing kind right? to very at of is second are this recession making. all the the of We uncertain at investments all very No, we and already don't marketing manage is obviously, and revenue NPI

Operator

Thanks.

Capital Next question Sabadra RBC from coming Ashish from Markets. is

Your is line live. now

Ashish Sabadra

Thanks question. for taking my

identity on was financial the piece, talked could growth services the which product wanted new the details fraud maybe there, thanks marketing see and year. I just innovations about Mark, to So business. drill around you further and reaccelerate for providing next down

for and the just XXXX you momentum back how And was if front half or So maybe going beyond? also I think deals, could offline on should but in the those particularly that wondering also talk more provide into some about the new we about pipeline Thanks. side? color on

Mark Begor

Yes.

portfolio new we've doing a So get second position. some half the to we're talked bring positioned about that products in. That's -- clearly a into business investing of in place back the FMS work year some this we're review different obviously to

big is was part the under and that with. And space, and products of in fraud, massive business, area and around which traditional out the really a identity to real as is think And business for know, Equifax offline different some just the for us. XXXX three in which the and half. also grow ago, in BXB also one into around broader question I I header heavily and or That's That's around of And fraud customers, opportunities priorities we're get continue business that solutions. broader we of kind identity months see think have our M&A account to inorganic expand. we of in performed very we're your of As the identity USIS. differentiate in specifically markets, fraud. that the M&A we looking quarter XX the is we a and we're for information potential e-commerce also That's a business as exceptionally different pleased TAM We well for still that integrate around again. happen in more But will new but fraud. you bought the Data investing have to for count we're we opportunity financial that data data those to think will right? or sell information reaccelerate Fabric as assets. our new we rolling fabric, inside course, Again, into our header both and aggressively able growth an that it that's integrating completes of to

Ashish Sabadra

to going That's that XX%. penetration back on on just the and government color. were down drilling nine questions and very pretty on slide is XX% And side. then asked government, the the helpful there further it's low on talent, The talent

state You again, you better government you there, and pipeline, both the those And side? drive the but can talked about talent talk just markets? Thanks. both penetration in new wins do of how on about some

Mark Begor

Yes.

billion I on these verticals is about government. us. that. the teams call Solutions, are We've us talent for TAM $X As Workforce Solutions TAMs. in and Workforce Talent is still you -- They're both a Government big data billion. know, newer focused for in $X got big

or in there. you credentialing want doing do our some expand to area education or being where we we're That's to do partnerships, M&A like Where data additions to us know, an We got more really like partnership strengthen we and Nestor bringing incarceration capabilities As to helping the government M&A you more. we've M&A partnerships want we made -- as either talent. Appriss Insights. medical that's and both there. The have where with more Clearinghouse, and data we'd M&A

Both hitting individuals heart new really in our go as is course, products a the solutions other The data is our of active together, of us set, the is or individual when a add our screen lever at trying a whether grow process, XXX hit And we or they're background our up Workforce. those as a we applicant twin for million other new claims, records, records, combining unemployment or verticals, our remember, support know, mortgage or talent our our rent for in government both and that million database rates grows active social talent records or verticals five whether it's they're or growth and in system-to-system set. XXX of That's is that every coverage in business. huge service instant integrations because to now. it's then half the decisioning or And data government very talent have data jobs our XXX elements about the our And data, a a million really leveraging which which much space. we data valuable set you bringing in American. of data historical equates for just historical the we to average got for total records so like

out that's and database to lot do continuing grow in M&A and customers customers. So, having data There's opportunity. of still use our services a to government social a our that teams combination another twin continuing of of our dedicated growing products, so and record new don't talent, in

pretty potentials verticals. two about So, the energized those in growth we're

Operator

you. Thank

coming question from Needham is next Our Company. from Peterson & Kyle

live. now is line Your

Kyle Peterson

the Thanks taking guys. morning Good Great. for questions.

the pass how time. you touch to the Obviously, Just it's to quite of been are to seen seeing Where along of wanted cost on in inflation. kind your business? guys side able some clients? it you have much in highest And guys we've successfully

John Gamble

Yes.

inflation in the I pick our impact. of the think customers. had With our U.K. your to about an what's time hasn't market, or your going or the spend when on impact when about to share my regards much it more the I thinking is concern, cost I on of X.X% consumer, structure, So, X.X% be

wage regards part still to We impact infrastructure our margin -- year cloud, in is to in technology earlier And legacy haven't want where to with us passing positive. people impact give the our that. our of more attract slight of A inflation inflation net cloud contracts got pressure convert put cost we've is with able you rates, this labor. increases versus place seen a inflation it and the a still long-term positive we're even and on, were We big We're it heading we some infrastructure. today. from managing that inside price net savings pricing big as versus on structure, really is that we know, with but as cost to we're towards there in

Kyle Peterson

in it the we unemployment of in but a Understood, potential recession, more with helpful. where weren't we new of how much just be know garden-variety then business. part not you just should tailwind a that currently a a said a could was of helpful. And a follow-up, expecting that's you particularly in run little about the mill verification, do had quick if and puts kind the EWS think would the be of XXXX, takes, How recession, recession, unemployment but claims I guys more

Mark Begor

was the we've positive the people investments we've of XXXX, business technology XXXX, and lot capabilities a in today as obviously with for it the done. got obviously, lot a That scale. in a us. business well M&A more is as bigger It's that expanding and Yes. a than lot We're

COVID and there during of So, it layoffs coming you it it's lot right in size XXXX know, would will headwind now any environment. a a off XXXX and John, way. be Obviously, when clearly the was I tailwind. a furloughs

John Gamble

Yes.

this a recession, obviously unemployment year, directly give increased and dramatically. it activity. COVID I think it -- and to business, the basically right? scales during it's Just -- So million a insurance with you $XXX perspective, But

$XXX about it's So million.

with however recession, scale a will in whatever level So, as could look that. it of -- come pretty -- you at directly the that unemployment

Mark Begor

countercyclical that's many And know, as you kind one just that's of of one businesses. -- of

in of you're down, if countercyclical, on -- other the inside focused credit event. management while and management our portfolio Another one account will activity is go an business, prescreens economic up goes

Solutions. or adding Now, And, it's in of a got because -- sideways. core kinds that's countercyclical our yet, event Workforce we but is keep all element really levers there records not credit seeing that to We're businesses. of down isn’t economy today, up an we're the for economic course, going whether

Operator

you. Thank

Our is next from Securities. Jeffrey question Andrew from coming Truist

now is line live. Your

Andrew Jeffrey

guys. comfort ask Hi. of in with any and you to current records. there of you Appreciate color they're Can sight can getting in to about the line you talk agreements? add current sort morning, terms know the you I your mentioned trajectory would Do you the to time. Good your exclusive about twin Xx get run? remaining of you think Do wanted with Mark, to database question taking a sort need exclusive be more? long helpful. there And of And those just I today. payroll

Mark Begor

Yes.

bunch questions in there. of of layers So,

XX% the of integrated it remember, this the First, I up has one, day that's as -- out, And grow data double-digit our business, hit for into of all revenue we Workforce but have I think of in is been to even to looking add that know also through usage, drives are actives of growing week access, do. growth it strong their data it through records and set. only customers data coverage, No the years else attractive other million you revenue. really for applicants. beta the it, XXX a meaning in revenue unique really minute And set Not our million is the you rates, it's right? manual course, somewhere And, because quarter. think for and consumers able uniques, set, point the growth one, process. to can't XXX or records scale ability were it they now the set, has a it's in had as And the data because their verification three of translates We've really a got remember, one, that customers they the quarter that our And driving do drives data web lever something down as more else very XXX% go way to the we're valuable. powerful coming the -- revenue, add our identify which slows or about last want do to we we're set. them, business

records add valuable we to them. more to we as become data set, So our

relationships services our grow billion to business. in unemployment our a TAM, credits, we've know, And But I-X, So, XX% we've power the our through five not when in as last a years get of only or we're the that also $XXX claims work of outsourcing records. we done the we Services, a Employer and We've come got and that's want tax there. opportunity tax business, $X of Employer opportunity unemployment is, credit. or for claims, growing come records two that work it's acquisitions. from to contracts got And we our whether I-X -- both. in Services, kind million-plus have know, partnerships, strengthen making capabilities On been we employer as the you XX% direct from you acquisitions

record So there lever. is a big growing

other gig, versus individuals payroll the for referring mostly is which us United really which The is XX% million processors. to in non-farm W-X today. from million States The newer are XXX so the come pensioners, partnerships, is $XX to $XX million is markets million have XXX million or what to another I'm $XX which and the we $XX million. payroll And income,

about to, think you that there's and some grow form income. about million $XXX if of to to take we that's what want So, going the database the have million, time. That's XXX Americans

dedicated And forward. the or other typically a records, a the going payroll are If with individual such And $XXX those, there from on that a to the now are aren't you for records expect to -- companies. those million, we that we want have we think teams as go processors, And take we benefits are processing but onboarding from add about those records, decade, there's may administrator then gig whether obviously, million side. it's pension runway entities growth. $XXX all

think I and our our your part question of last question was was your around partnerships was your question exclusivity. around around The last partnership. --

All last exclusive. good as forward sign relationships our said, years are well extend four-plus exclusive and partnerships I the for vast of our majority relationships the for in we them the as our partners have We intention be forward. all good signed we been to and it's think the for going that's going us exclusive. As to intend

Andrew Jeffrey

it. comprehensive Super answer. Appreciate Thanks.

Operator

Thanks.

Nicholas Blair. question from coming Next from William Andrew is

Your line now is live.

Andrew Nicholas

Thank you. morning. Good

I Are I imply have U.S. USIS across think seeing but want it any any a you're Guidance seem directly on about credit? there. different consumer on ask doesn't of the credit this the touched business to customers more already, answers health to you bit little weakness and signs kind hearing side? the core of core slowdown from the of to relates as what

you of of kind of the economy? you that Thanks. and what part if So, overall the in gives the could outlook confidence just state talk about

Mark Begor

consumer be strong. to And U.S. our Yes. clear, we're perspective is The not. from

I banks employment. goes our last -- the really two never looking and person working over week so, with talk a think from seen starts are or performance. the People we've in jobs about It there's -- you've which as heard There's it sign. environment. for they for no their it really job, open every

the is that's meaning are stimulus or of a working, still big still which the wage spending but environment, a social United There's is stimulus a saved access lot they but with over there's a to strong benefiting in the of around, consumers. starts seen growth, You've stimulus still positive, consumers some services deal. of it people lot COVID support which are States,

impact that's But kind second in having an or some So, weakening half. consumer of lower some don't lower consumers having impact having an a the on on impact is Obviously, is subprime and confidence in the inflation see the an we a bigger there. broadly, of having positive. impact spending income

it uptick delinquencies in a but There change There's thinking they untapped. haven't XX%, it, like it's is watching, but in are with strong delinquencies, obviously their were delinquencies, -- their homeowners XX% you a it that We years and a that lower to auto subprime, customers consumer than seen and have starts haven't of the ago, of is couple working seen then home, really plus those our in versus bunch little add card XXXX. way. equity everyone in about are XX%, a

my equations quite consumer, the that are out view, are because still all going positive consumers which quite those spending. challenging there taming to in So, is around inflation make are

credit You've they're maybe big strong any spending, still of but ticket we kind a traveling. up seen spends card and pretty haven't a not signs the transactions, banks are of still are They're Consumers double-digits. changing. strong seen

John Gamble

was Other down happened thing is the of higher which the consumers subprime right? So in on credit as is much of has you've the actually materially, since and defined XXXX order strengthening XX% consumers just down scores of and of seen. that XXXX, that's it's that just percentage are back

material very credit. So to people's that's for access

Mark Begor

were scores XXXX still. points since XX XX up credit to Well,

supporting So of a factors the lot consumer.

Andrew Nicholas

we growing Great. Thank switching to right bit a the helpful. XXXX internationally go-to-market different there part relationships you've the for through you capabilities? there abroad? of the your you. developed of organization a of kind payroll go-to-market with in of than number are That's being what outlook. understand alluded kind kind differences strategy and that there? differentiator. three-year about as difference markets just providers the in past, as keep bit and there to Or here win that gears do in your make my global follow-up. And to mind should talked any kind in think I very speak I markets of then Mark, But these international work strategy that curious, you've a Is you those HR outsourced

Mark Begor

we obviously, could And the Rudy expanding his working has. that similar. hours one is about and on. very talking we're internationally And things it's team No, workforce all the of spend initiatives

doing during added we're paused Canada couple go India. of As transformation of enter We U.K. transformation, cloud years new a Australia, it that hundred a ago other stack million tech a four you in couple now to a markets in know, invested now. paused easy in dollars the it when standpoint. to have we We our first in U.K. we're in, we the makes quarter. from markets markets We we've and that technical but were cloud

dynamics kind approach So markets that's we of markets, Workforce where we're markets. why we have made it, into think Solutions. a and U.K. consumer move mortgage transformation cloud following market the an the use mortgage are our and want very you similar. you is our they Mortgage in, The about that at have to place first

that process when and future So, for their for priority some we relationships, think have levers our directly markets as be multinationals or the using in they point partnerships. employment side income you us through and current them verification the the from then data is records And U.S. about other to hiring them is out, -- would we another in want talent one, collecting But the a with for where the markets. we're direct do us similar.

as have So the to U.S., States. so software markets, that's are partnerships markets, we the want them today And do in in so many then a unique positive. payroll and individual also processors with business global, processors are they them. And this the relationship then out, the do many payroll of outside you with HR that there's or to companies we're United same developing point

So it's it's our ones, the and a one smaller between of got that XXXX. now Workforce but a needle in be we're We've movers Solutions of in. This investing of will part clearly one lot strategy.

expect obviously players of in think we've as XXXX, there we states, traction out got XXXX, position it's will market but to advantage States. global that other see in it. aren't see of that investing is because XXXX, you'll and and think strong take has to workforce And do, you than like you XXXX, I would we're we more XXXX a -- the here United outside franchise us take want a one in it, it in really the perhaps

Operator

Thank you.

Rosenbaum Our Stifel. question is from next Shlomo coming from

now line live. Your is

Shlomo Rosenbaum

just for reviews. morning. Or other to certain a Good sudden part what data, you a maybe business going in like the there clear you getting there? And because in little Hi. taking header changed pickup my I'm not would on are bureaus better anything know, with of business? in questions. Thank a there where And something FMS it's fraud to I or else doing pick them terms not cycle, they the in that you Is some see FMS up that bit offline? you of in well changed want on of one the of guys they're is typically, just that, point in all are with as to portfolio and and the you're the what's over dig happening? happening? are more doing Can a And as starting said competitively where about banks not worried in you're but

Mark Begor

reviews newspaper portfolio But part as The see The challenged. consumer out, are I more yet. business than their to of up financial on or the in happened in the you know economically view you want business. point the times constant Yes. is we some institutions if there. of of it challenges, don't pick the in the economic hasn't that don't That really results. a It's half real again? touch second header typically, being

John Gamble

Yes.

or volume Shlomo, we're transactions. covered, going levels seeing -- what occurring, the we're within activity. seeing fraud on smaller what's We're FMS, are we with really for and of Mark transactions volumes, lower looking are for think lower I just header right? that seeing And business

seeing you doing we're grow. as give going our that is to the it a slow And market. just seeing we're that's we given how try -- year. enrich what to greater what do is make valuable as products, which think perspective them you about new has, NPI, can more that differentiation we anything drive the that assumption we that But slow we working again, so for we'll -- area it may product launch we're talk to the currently. rest So that talked about, can, we to and sets stay to in we've of on just data with with And market made we

Shlomo Rosenbaum

Great. Thanks.

the for follow-up. Just

given or background start other layoffs slowing business slow that stuff some would companies that from part would The the indicating and technology that the that seeing are down bigger really see the be polls area. hearing the starting changing? you of of significantly to you the you're And screening anything that's to

Mark Begor

not. industry. so And is than with obviously of about our dealing different because remember, you industry we're background No, screening in the when the kind business, new think we're

We out ability that opportunity. background of add elements. rolling new digitize an screeners other include help mitigate and some view market background their offset that screeners products our It's the that if slows, have even is if the to digitize that be you penetration businesses much or will, will our so we'll for data to

Remember offset economic the with is couple as be new. the to business penetration So talent for the there, that products of new million. TAM some well we're and And about of background $XXX event is billion. a happens, as we some screeners slowdown because think when is an X our that fairly there able we'll and

So continue elements even of data into the event. to we've the got grow economic that to opportunity in an

Operator

Thanks.

Huber is Craig question Huber from next Partners. Your coming Research from

line now Your live. is

Craig Huber

recession? do verification further service part Thank more you. Great. business records You recession go will Can longer your of bit guys in a think into here, we if and you it an more little will about here? elongated adding you do do how a significant talk your how business, think you

Mark Begor

clear. think will pretty been I well. Yes, We we've do pretty it think

prior grew economic we've to period. I It in XXXX, the our was pointed back pretty toughest, and comments we the XXXX, go whole lifetimes. through seen which in out event, in think calls, a that As brutal you

more XXXX, ability a event, services business inside last and back one of in government, And you today in something so mostly it's then, think business. makes verticals is other got versus And has to add then that highly was talent, it's to of XX% levers. if verticals, And it it's I financial or now is call, XXXX, it Equifax the levers economic that records now want that. non-mortgage mortgage many the Remember, XXXX. our business like services. diversified employer what we think different grew

to and a recession Our by unaffected business. is either different many them a of big levers having recession claims unemployment a by Equifax actually like being from enhanced ability part to workforce or benefit the allow significantly so are grow that such

Craig Huber

records a then used get for also outside then of also believe on up your there companies, the to if just And you your of of or the like get database, And total talk so get the the current is you XX%, records touch partnerships, from built could in which the you've person's that you XX% I et is also XX% historical records cetera. not historical in pitch that about revenues you employment? records, that you those

Mark Begor

Yes.

core business. And of outsource Services So, services Employer deliver we first regulatory these Employer companies to And Remember, on or that's call it's where and activities HR TAM. about that's Equifax. where managers, $X to the we Solutions direct billion have. we their is and records our what that through the Solutions compliance a that's they Workforce

it processing And where a We business million opportunity retention a in claims management needs company, for a work employee have deliver side, We credit, meaning about unemployment there. we W-X them. the $XXX them. management tax for verification those for like someone if I-X do we credit. for we W-X, do tax services the employees, will onboarding deliver

efficient, manager heavily capabilities and service cloud for services in a make effective just to HR I are as services know, those as HR better what and transformation invested more more outsourced the by a And that as manager. earlier, an business. pointed all we've we those So our you is out do

it in our process there Equifax. to States today. individual drive the United or one either we third Most parties, those in So And like commercial companies not of is that for coverage example, done unemployment unemployment continue meaning in through five is companies. claims are play one do activities outsourcing more to claims, to the in by still four

they privacy. have So deliver course, will do In we businesses. employment their regulatory we But scale records return, for us. these then then also we commercial in and calls agencies verification And the to the are employment income income center do fielding where have degree verify high background they We'll mortgage outsource of monetize. doing manager securely. of a employees. income a employment with free. to part activity a And in we'll on services they're allows their it call where payroll inside we're and of verification to it. HR for to delivering from company, that real of doing And us, relationship manager we're not their and it HR these And as to it government screeners, lenders, if that originators, shop do HR auto a they because them,

free. for all that do we So

a very we're acquiring developed us space bunch a the this for morning why the powerful of like we have prop in strengthens value we've and we company which So, a I-X that why manager, verification records. M&A. that's through delivers that And announced we're relationships. that HR expanding is LawLogix, also And

or who to last in at strengthen we've really done is. of So, acquisitions six the It's those at services our five are the XX the Solutions core employer business. months the Workforce

it attractive continue that have strengthen because a not So billion and to $X we in capabilities to want also bolt-on do we delivers in only business records technology very invest very to can growing effectively. and we that M&A monetize TAM,

The a that second and work lot A needed verifications records. around today. big have from historical order you was records, history average we're about one you're every today, are X.X complete that very my half our But earlier, much status Mark our now records a want as to to does by I week, model. pay a your part lot of keep historical out, records GE as question It's American. my of how In up on Equifax And business we verifications our where around records make in equates of you right do to the on. the of jobs my case, $XXX would Warbringers million and and be to mentioned process record every every period. point job which the it data

a incredibly data can for over building been we've part it's So maintaining at the the is have are position the of historical those all those records they we or out set we competitive around And and records, this a historical of the moat, time. you have business of of a decade course, is valuable. develop and that those part only big records. And are those way big because

John Gamble

is services from or in either historical historical involve importantly, transactions And businesses, record. records revenue nonmortgage current generated only verification of XX% the a that historical record, and records about

of penetration XX% it's the So historical records transaction. in

huge very, high very differentiation. and So

Operator

Thank you.

Your from from coming next Clinch question is Simon Atlantic Equities.

Your line is now live.

Mark Begor

Simon. Hey

Simon Clinch

in to for wanted in you Hi. my question How you Historically, core that And to overall. the each things segments back some comments about generally here. about that was to of of made sounds [indiscernible] we those my growth guess, think taking it for forward? the the that to think versus considered understanding terms But six that the I comments level that be should should EWS. mortgage Equifax are was should to macro wondering, of to EWS I that just actually, I static we outgrowth a here Is as like, market effectively of be -- Thanks the everyone? going about outlined markets. just around the think opportunity of cycle the call my how we how they beta, in. play

Mark Begor

John can that re-shopping pointed as market deliver sure for shopping that shopping, pulled then again, can home out in are a it application a when around they'll this will, that generally, check closing versus are process, outperformance, an response make kind more difference Well, they're than pulled the mortgage course, deliver. rate they're further John the don't of hit will that or to a you're does filed by that a of into during doing workforce order out, there's of and bunch is rates. And have. normal the is poles until what of in and which rate consumer rates. homeowners hit for this of on, application in good the doing there Conversely that they income be file part might credit consumer will is mortgage when mortgage their pointed And that in in -- when can is environment a it's the consumer purchase we for higher employment a companies USIS there's consumers credit and that the in you a market. and rate be if the And in mortgage originator qualify the of actually shopping. they holes, number of shopping, application It application. they pull process. when rate And some always results rate

file change I a because think benefit doesn't shopping a benefits environment normal more income and John was employment of from out credit rate and pointing mortgage data. the somewhat the

Now higher rates. of course, market, as more mortgage levers Workforce the we hit records, perform all Solutions have we the with starts has add to it

So up records they add revenue as get are and more they XX%. records

for a still them. mortgage environment that's that's In So benefiting today. benefit any them

January. products price benefiting in fuel New increase prices. did We them, are a

So XX% a over still what over benefiting a business penetration their that's XX% Remember, little only seeing mortgages. of mortgages, a of now, is XX% little benefit. they're

access, get we in know using XX from still into get out, is there's those for originators. system-to-system application Workforce Solutions. ability And around the and So data that been with XX, so out originators commercially as to grown integrations, the employment our income it's They're mortgage a verification. and access. that we dramatically, virtually don't which as XX, web point they there then manual used because in are And drive have file mortgage, but every credit not remember mortgage lot doing web we of every from years,

to market, environment. the for than multiple to got you've be at level bit normal levers a continue it workforce outperform So a in lower mortgage

Simon Clinch

understand how and EBITDA. drop margin fair when of -- reduced I the it the here. revenues you've up upside, through if there take flow entries Is then expect would the was the mortgage me that. should your I be about the incremental thinking Yes. through. to Okay. it same to down guidance And I'm just subsequent and to that high-level for Like for

Mark Begor

to margin think we've the in Any half Equifax. is the for down? pointed as incremental continue invest Yes. change up future revenue second we earlier, opted in high And out of or to I

as always see downside. certainly variable revenue down, the John, the meaning, not came continuing Mark on quite and variable I to indicated, the upside but forward. going They our for know, still or some very We high margins out. we're add the reasons high. mortgage costs costs taking margins exactly invest are on focusing We're on the revenues our don't would aren't So same necessarily to that? redeploying you that

Operator

you. Thank

from Securities. Fargo coming Wells Weber is question next Our Seth from

is live. line now Your

Seth Weber

Everybody year. good half the the I and morning back the as and thanks quarter I for similar for had the taking comments my some a spending side. question. on was of through question I second heard about from the increased margin is if on wondering be any of us kind increased thinking margin normal a that's is, additional we this Thanks. if about the you of opportunistic just -- color should what sort spending or framework new this could that perspective? actually give

Mark Begor

A layers in couple of there.

from that for no So we margins, to year, No completing investing the year, Obviously, still or we the deliver margin expansion. this products. outlook continuing are to in change XXXX transformation. are near-term, change so cloud our the going new invest we're still in in next XXXX confident change we're in cloud in increase our in our In the plan the no cost transformation, XX%. to benefits broader

some have onboarding. on additional investments We

for Some Workforce of the have partnerships new records and we Solutions.

or investments as think So XXXX, XXXX, we're XXXX. in may that targeted continuing be to term a do XXXX opportunistic better we will benefit

doing we're to you John? question And so Would that. no that, there's add

John Gamble

call, mortgage, margins, large current we talked Yes, impacted it and and right, reduction very on just margins. high the by right, the variable about being our in are significantly

as we pace we exact to the of on terms has year. the into if as market said, we'll each that No, question new been your So But individual of in level expect get as the give you our that margins? this the recovers. of guidance just reacceleration, reaccelerate was, margins Mark

Seth Weber

second just the second half. that, the big that's then margin spending something from or And implies just like the first the guidance pretty Is happening Is in lower Thanks. for as half international? Okay. there the something tech first a a step-up in the international for year versus in seasonality? half transformation there it something versus follow-up, Is there?

John Gamble

the are half margins first. generally international second than seen the in you've historically, So, higher

So business, margins level clear we're have great some the some but that of of on in growth seeing fact we But the call try on international. in to the in we've the There seen of lower is our that margins. does pressure be that. management because of acceleration in that debt terms

little we So debt see to there improvement pressure management. expect on a about, is those of bit do the talked but of because margins we

Operator

Thank you.

Our next question from is of Balsky America. coming Bank from Heather

live. now is line Your

Mark Begor

Hey Heather.

Heather Balsky

you squeezing in. Thank me for Hi.

to of the question on where softer a outperformance? mortgage market, of Toni's sort outperformance sounds earlier we Where sort that market through flows lighter coming outperformance I'm for it is from, it's bit and follow-up a Just EWS. the is lightness toggle, like that of, a Thanks. on curious side that the mortgage little grow mortgage what outlook. regarding

John Gamble

Yes.

of thought. outperformance, better drivers our So performing -- actually than records They've it's the in expectations. of the Workforce faster is than terms actually added we

and January. very go beginning to put of at that's we so both would And on executed the expected and started than products, the performance when our we tend programs actually year, which they've then new the well in, pricing the in a greater in they year, have to place benefit

two-fold. the those factors know what So issue One we all The all quarter looks the of is volume. last is just reason we lower right? variable -- all because why with about those, outperformance than I described are saw

declining, in volume since outperformance So shrinks. dollar of is absolute that level like

because smaller and the you and measurement. So -- relative outperformance it's that's a the just market math why see to the

other The the what right, talked right? mortgage about, Mark measure it define thing is credit We as USIS inquiries. We market.

we USIS by shopping what a is USIS Workforce gets same since are benefited having inquiries degree, While benefited end benefit. and credit Solutions to shopping isn't of somewhat up by then the

good I said, And actually the obviously, We They're -- system-to-system little expectations is greater mentioned, of to a very, on our stronger They're terms then in and a EWS. they on way performing well. also of indicates additions therefore, itself market provides any as to drivers doing well. as Mark bit very as control. headwind And so, integration. that's in well the can execution measured they're don't as And that extremely performing outperformance think not they're outperforming price. products that and record actual

the the good year. feel we that's during execution very So about occurring

Heather Balsky

you. and next today flow Thanks. your thoughts the Thank expectation performance balance year? a using to what a next cash in cash year for returning regarding follow-up, sheet and your strong return waiting to as are investors, versus for cash market just stronger given price your And potentially the free much

Mark Begor

great we not We but do us Yes, certainly right think it's that. timing a think it, the is Heather, question. about to for

M&A As know, which still some quite strongly another think going digesting we of And the Equifax you we morning this acquisition, XXXX. announced benefit bolt-on did in forward. will we we're

dividend it's it's the right both time a don't doing through think mind buyback, on and our time coming. our return to is So, shareholders, But certainly is restarting cash right the we today. when to

flow our cash XXXX expanding, to cash have have right and to we at believe the look we but ample shareholders, expanding bolt-on XXXX, with M&A, and also excess clearly time. invest we'll that return to XXXX, As our do we in the to resources margins in free that future

Heather Balsky

-- the you thanks. Great. for Thank

Operator

Thanks.

is next Your from George Goldman from coming Tong Sachs. question

is Your now line live.

Mark Begor

Hey, George.

George Tong

Hi. mortgage Thanks. for frame relatively been XX% the in mortgage Good morning. downside In plus have space, purchase forecast sharply decline year? this would you forecast? half you the your What the And around months. Are new risk originations your second in purchase how oil. recent new of declining inventing volume assumptions to

John Gamble

Yes.

our look early the in low obviously originations of saw we completely we out We of levels at XX%. it's closely earlier the that we information really that look we second year, it's estimate and I in think night the certainly I major units, that and indicated forecast closely will also XX% very XX refreshed refinances forecast trends driven that We and on it's that financial the at three itself. yesterday they're the this originations MBA I as guidance out be we're very increase used consistent consistent that think in current April, seen of dollars May home sorry. together seeing currently movements those that think parties what MBA. Fannie fact market we to trends the you neighborhood consistent days, the cash and three new with the by were of last they with we all seeing. way of and and in between or is came very weakening So we terms and down we seeing And the their right, expect also refinance the half. that. terms when the mortgage the very structure think the point, we're order evening, we've what the movements of put at we occurring we're think origination seeing mortgage said the down June. with all year down obviously Freddie, forecast We in with shared at indicated the are in that to we closely through in July, forecast, the Also, looked go think we're very very last think origination in all the XX.X% relative And three refi. in saw consistent almost We and be in purchases

inquiries, with we think XX% forecasters. So, with given would to XXX so XX% forecast, think see us going very indicating think points, over to We consistent imply we've you're party in we other reduction feel to basis it's which reasonable third in XX% decline a units. a origination like XXX I

And that about and we we've slightly today. come feel the other us. in changes information hard than we've seeing we to But, a good know including fairly now, the stronger what information mortgage what might all any and good right feel encompassing we're output. done then job our have of forecast parties that nice job or fact seeing. we drive the to fair, we a the out But we'll very that relatively you available, so, the that look feel do done at like like obviously, is market keep be just at and to letting have And we'll be we're

George Tong

additional changes Gross do gross XXX in and year-over-year. fell with cost How trends Got quarter input pressure margin helpful. margins bps you it. in much revenue inflation expect That's mix? the

John Gamble

think that right? occurring us. inflation on all. right that of impact, really impact -- us, That's perspective obviously, market big our a there overall, of I the impact what's big mortgage driver, the is now George, the revenue is is Yes, from really mortgage just for margin. any And our in loss It's

George Tong

Thank you. Got helpful. Very it.

Operator

Thank you.

Next Meuler Baird. coming Jeff from question from is

is live. now Your line

Jeff Meuler

Thank Yes. you.

I So and guess, was relatively in that a at understand could surprised high I consolidated recession-impacted countercyclical be said think I businesses of Do argument recession. resilient. basis, resistance recession including flat they a you the in that your even on is potentially that Equifax the businesses. the the end you range

you you the answer the could guessing and -- growth help argument out that how So for short I'm a structural the drivers businesses other flesh could is us? in those potentially recession? understand us behind NPI in be in verifier. But flat

Mark Begor

John I'm Yes, not that, when Jeff, that intend said sure we I or that to didn't that. said say

we last when today. Workforce Workforce XXXX, Equifax business we're the starts think more our we kind small of was down point as And versus Equifax, in than in scheme out and in think X% larger it it today It was was a of view it with it's much the broadly when so So levers being much very about got and before. grew Equifax recession, positioned. XXXX, XX% we of better

all positioned a to workforce levers. So we grow of in is recession because think those

to with business our So about recession of XX% a a is of of factor. we're unemployment because just that macro expect in clear are that uniquely kind recession identity business, that that's part positive couple there. on through workforce. a grow is that. approaching digital a we very fraud like of Equifax, businesses and talked being which And of claims quite big benefiting We a the There's being

the international Equifax. account coming are business and down actions originations of line dampened primarily I of those And somewhat kind prescreens negatively is our management generally to the management kind line credit USIS. somewhat the by coming down negative those rest, by by Inside not then think of tried XX% but impact, recession. and dampened is offset, of that increasing a actions is are that XX% of So I And credit which as increasing. and say impacted volume and negative

volume would have to some more pressure. expect there's those there. So But we

the also completing recession, in XXXX, that we've we out, going transformation, example, if XXXX, cost think the you We're got the a XXXX, is Equifax throes going which as impacted points that the to flow is have to the cloud think you is come point to unique We're of going from are you benefits transformation. the savings in basis cloud through. Now XXX not be And got for different didn't that our than execute XXXX. today about levers in recession by recession. in XXXX, of to the timing

it point products you a than the we're going at in being and recession, was also a in The XXXX. cloud focus, vitality new delivering, having more As benefit that's market is different to us of and game native. Equifax out, today resources the in and XXXX kind solutions

then the point are benefits. trends, So are of $X run months, is over of done our TEV. those part we've a in revenue, made comments know, fourth in in you historical as I XXXX. the was last of The earlier the the we've bunch acquisitions rate our XXXX, hit acquisitions, XX which, well Those XXXX, synergies XX latter meaning M&A. above of And in around kicking billion but M&A are

think positive to a as going the be recession. us for that's about So we

together. all So factors put those are the we

done factors economic there haven't bunch and in with revenue, forecast we've and a we at We that EPS of certainly was whole to there's share Equifax event. today the positive positives more a some than but recession, negative, are on you think last about the a EBITDA, tried

Jeff Meuler

you. Thank

Mark Begor

Those would So, decline, impact right? recession businesses yes. the

Jeff Meuler

it. you. Thank Got

Mark Begor

Thanks, Jeff.

Operator

Thank you.

coming Faiza Deutsche is from question next Alwy Bank. from Your

live. now is line Your

Faiza Alwy

you. impact planned of Hi. impact overall given your a products just year? the impact development there guidance in, to these product pulling are margin this I'm development implied the is is decline mortgages? product curious from you from development I mortgages And an thought, maybe morning. something big size invest And is seems costs? incremental forward how EPS XXXX? So to that you that costs? of new you're in revenue on lower incremental would than Are their Yes. that to lot had on something have first the Because clarify I like able wanted costs. Thank just Good product My question, and it

John Gamble

very debt the of the within the our because give just on to in in trying and talked to right? decline goes were really talked business. that international are market. you down. substantial We there's the by mortgage, in interest FX, terms What So in development adjusted impacting has things By the a a mortgage of benefit is we in and the right, in piece, through the the to the far, little EPS, other impact the reduction we had outside management give a costs. impact a obviously our larger a the margin of driver to mortgage a far, side tried of yes, about driving are mix high well. in in But mortgage largest variable largest invest bit that's that's impact We not movement is reduction And different drivers, as the outside our margin in variable as right? EPS. cost investing some our as of and, right? fact walk the that in in we reduction of on and perspective the you forward really that And in levers incremental dollars are compensation what's also going issues profit, new trying margins there adjusted driving there the driver we're do forward playing we some but therefore, we the right? about So, about is driver, is that driver. reduction investments grow We're we the going talked The products, some perspective

Faiza Alwy

it. Got

And for certainty. follow-up, or Mae curious about And any for curious one there how Experian Fannie your all? at if then important? I'm relevant as you business are how just for talked Thank that think a them their Okay. consideration I'm Like, that. day that? you Like about now certified is have

Mark Begor

actives. Sure. our It's don't meaning million aware and impacts Mark the -- got and any Experian yet, investing here. XXX work small We're income very They've our seen that is or doing they've done. set their from that data We employment them some that understanding work see is to a commercially we a around space. compared million haven't XXX records

an technology just this in Solutions strengthen M&A it our stronger. That business making course, we our build we seen products. the top moat of said, hasn't one one morning we're priorities our LawLogix And focus haven't impact. announced in of down slowed Workforce investments ensure to our around priorities, the so of continue around in And us competitive of position and the that to to And is we M&A acquisition including and the business. that

we're on fastest-growing is continuing So and largest clearly focused our to out business. build Workforce, which

John Gamble

to been companies day years. had addition In one for that multiple Equifax, several certainty there have have

Mark Begor

Yes, for one.

John Gamble

this anything So, is not new.

Operator

of our I'd like session. the you over back to Trevor Thank floor further end or to closing question-and-answer any remarks. turn the for We reach

Trevor Burns

No, to call. the I for just joining thanks for want everybody say

have you reach a you. and If feel have Thank out please free questions, great day. to follow-up any

Operator

Thank webcast. you. teleconference today's conclude does and That

and at thank participation your may wonderful a have time, you You line today. this We disconnect day. your for

Equifax (EFX) 21 Jul 222022 Q2 Earnings call transcript