Earnings call transcript Q1 2023

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Operator

Hello, and welcome to the Equifax Q1 2023 Earnings Conference Call and Webcast. [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. Please go ahead, Trevor.

Trevor Burns

morning. good and Thanks conference today's call. to Welcome I'm Trevor Burns. today John Gamble, me are Mark and Officer; Executive Chief Chief Begor, With Financial Officer.

Today's today Calendar An be & call archive of our at the recorded. is IR recording Events website, tab available in of section later IR the the News being www.investor.equifax.com. will

labeled Events be These reference in of section the certain call XXXX tab our that website. materials XQ & IR at the are call. During making can conference today, materials Presentation the we'll to also found earnings News be

guidance. Also, statements, we its will including second be hope making certain quarter forward-looking and you full-year We and Equifax understand business environment. XXXX

Risk These forth XXXX could statements results from Form the to filings risks, uncertainties a Certain our of materially with our cause may are business and Factors other in SEC, impact set actual XX-K. number factors including differ that expectations. involve our

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

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

Mark Begor

morning. good and Trevor, Thanks,

announced another we as in quarter non-mortgage million February. priorities strategic delivered against constant our XXXX plan revenue XX% we currency Equifax strong with growth Equifax well $XXX executed and spending the

overview a U.S. our Before what and brief provide cover strong seeing I of to in quarter, results the U.S. want we're for consumer. economy the I

and be XX% unprecedented were is half, down the interest XXXX be approaching we We to XXXX, the XX% XXXX reduce XXXX continue an business year, originations impact revenue and the The X% in mortgage we that X% U.S. than navigate to market. year, levels. the expected rate model of inquiries expectation non-mortgage and mortgage has breadth non-mortgage environment in to this to large Mortgage expect the mortgage non-mortgage last second and allowed down impact market combined below them from our Equifax expect In XXXX and growth impacted Equifax to higher year. market a XX% an about to XX% growth and $XXX depth XXXX Equifax X% the deliver and growing businesses total last decline. of growth in million, to mid-point by but over guidance, fast negative dollar more unprecedented offsetting at deliver the total constant severely

consumers subprime loan historically now XXXX some delinquencies. Broadly, increases still the saw they and and significantly in in below pre-pandemic low XXXX. and seeing are with levels, levels broadly we delinquency at We're increases DQs more personal remain in although unemployment and card strong modest to are with levels credit back

subprime are XXXX. in we Auto generally as know, above and loan delinquencies the delinquency you consumers rates XXXX as pre-pandemic above people saw levels as manageable are when well for working. levels And are

seen metric will of marketing increase, we of pockets this DQ continue move year. DQs increases, While we begin watch limited our rest the and tighten as have we the as customers reduce through to originations. Historically, to important

fourth was above to with February increases. slightly Fed given inflation in than moderate expect has levels, better X% down through but year-to-date trends about still saw begun we rate targets, quarter, but hiring Gross the slightly inflation actions at well further we elevated the remains and Fed

customers guidance recall, and a with And FinTech half second our economy expectations in from has as more there of slowing impact credit issues impacting in a both believe tightening in we the assumed been half. you slowdown And certain some second some at capital banks. the

deliver continues broad-based the revenue mortgage and deliver. weather decline to expansion. is an market depth this, economic While unprecedented and we are Equifax's breadth of margin to allowing operating challenging in model and Equifax uncertain business us growth The and environment,

strong another constant up had Equifax dollar revenue X. quarter Slide XX%. to growth with non-mortgage Turning

quarter above X.X% down quarter. an basis expectations on revenue organic an unprecedented X.X% against First constant and of currency the and decline down our in $X.XXX was XX% reported billion mortgage market

February Equifax rollouts. high-end strength Revenue and from and of new was execution product across strong guidance our continued broad-based above the

adjusted approximately adjusted stock-based of EBITDA quarter $XXX expense growth savings grow to quarter XX.X% plan. XX% for Adjusting and the we in our expect of in cost is $XXX EBITDA line from the fourth incurred First totaled revenue which the margins our adjusted with million in the EBITDA would've with margins million expectations. incremental which baseline both compensation to quarter been XX%,

have million a actions second half reminder, in $XX the benefit XXXX carryover the As the from bulk spending reduction of and our year. benefit of we this

per $X.XX $X.XX than guidance was stronger our per expected share of of EPS above or from growth. revenue range February Adjusted share $X.XX

businesses, non-mortgage Equifax expected quarter, All non-mortgage about constant delivered XX% growth is with positive of the stronger represented constant X% total of XX% for revenue momentum BUs the which with framework. strong XX% our long-term growth, X% currency Our currency growth year. to than the inside growth, XX% were in organic which rest revenue solidly the and

the down forecasted our the market Total shopping U.S. inquiries or with we outperformance framework. U.S. expected driven credit new XX% U.S. XX% our was to which solutions stronger in February XX was from Estimated our originations, both than growth quarter mix February. about the were positive total than down in trended in mortgage about outlined down slightly stronger XX% mortgage points mortgage XX better be market MBA weaker mortgage than product. than driven from and by in revenue and consumer by higher workforce better significant The outperformance revenue

XX% technology complete the the over being delivered of Equifax of Cloud, is Cloud. Equifax driving end to XX% progress quarter, substantially Equifax from to North to the new which by the will transformation. expand continue migrations We significant data and America of as we customer Equifax make the At year-end completion the

level and Cloud infrastructure on innovation data delivering enterprise security. faster Our and better capabilities new industry-leading product datasets, with Equifax always delivery, faster new is integrated data quality,

Single years to advantage for Equifax our be a to come. convinced Data and continue competitive will We Equifax to Cloud provide that Fabric

innovation product the delivered Equifax high-level. at Cloud capabilities is by executing the also leveraging a very New

points at levels vitality and in record XXX Our new XX% quarter Index the product basis above goal. Vitality of our is long-term XX%

rate reached add Vista close BVS revenue customary to to the as we And Serviços, market. Boa recall, credit The in in transaction the expect and completed, the Vista $XXX conditions, approval largest will bureau the third in acquisition Boa February, fast other we million of growing and is the Brazilian shareholder second agreement the transaction definitive subject When quarter. in closings to you Brazil. acquire run

transformation as cost will operational of our during closure improvements a reductions broader a over XX,XXX the reduce the employees North capabilities. new contractors and controls. from The delivering our on major aided of total American and XX% both Equifax, As spending across centers plan broad restructuring we acceleration as workforce focus well cloud and February, outlined by data broader XXXX, we're reflecting over operational executing our other in cloud by of benefits

spending we cost with spending. to reduction reductions expense remain about in well share $XXX $XXX meeting committed $X.XX in or are And out million be million the we reduction per Total from these expected XXXX we're and and about these about actions capital in February, laid improvement targets. tracking plans to million to $XX

an will to In run of $XX XXXX, million incremental these by spending million. $XXX actions benefit reduce over the rate

$X.XXX to per share. $X.XX adjusted EPS And billion guidance share $X.XXX billion, we're of and maintaining guidance our $X.XX revenue of XXXX per to full-year

U.S. a assume to and half. continues guidance in economy Our global second weakening the

points are basis Given market to in weaker saw we we XXX U.S. XX% be inquiries than U.S. principally down weaker the market slightly discussed about mortgage February. or mortgage that assuming we in March, now XXXX for

guidance our to in on a the and challenging our strong Given mortgage XXXX continue XXXX slowing our ability we second and and reaffirming quarter, continued market underlying are expected performance broad-based markets spending our outperform to first half. in reductions, economy the plan in execution

which XX% second to We fourth will EBITDA our also on and point is mortgage margins quarter guidance the the more over off John of stepping and continue a full-year for shortly. to important overall XXXX. adjusted expect in detail market provide very quarter, deliver

constant dollar in non-mortgage currency X% delivering Turning quarter, continued up quarter and revenue increasingly Equifax across delivered Cloud In supported businesses. the to in and be units up the of across strong strong currency, NPI growth the continued constant broad-based completion units XX%, will X%. organic by growth. non-mortgage three up business USIS growth X. international first Slide This the revenue and our performance XX% workforce the business revenue constant XX% with non-mortgage we All growth

non-mortgage U.S. hiring constant as dollar year. growth some XX% impacted the XX% constant in XX% EWS' that quarter businesses, and X% strong very Talent activity First last comparison well I-X long-term in our dollar first Solutions off well growth framework within a non-mortgage revenue to revenue as slowdown quarter of despite was

has up additions growth an to with delivered decline. another another XX% Turning revenue with EWS from expected X. large XX% positive X% companies quarter total historically very to market database staffing quarter. quarter and with X sign, is first records, revenue Solutions as down has added very XX%. the which elevated XX% XXX record quarter strong reduce non-mortgage current and season strong records the the of TWN ending record net million in the mortgage million unique had Workforce as holiday This a logistics incremental Slide XXX first up growth lower million was up the retail records, quarter and

we just deliver in unique people and and current And our hit XX almost TWN defined million have benefit that million the individuals cover are now to and TWN or million in the relevant active having a records high database over on the pensioners than records case, database unique as current And more represent reminder, one U.S. individuals on and employees we XXX our dataset. customers. the jobs our XX% of represent with self-employed job TWN database. employment individuals XXX XXXX income in in rates, including records

discussions executing more. referenced through tech with cloud I onboard last we're capabilities our expanding many XXXX pension to quarter, records. self-employment one unique our to records beginning and -- transformation, administrator we're records with major ingest based also As pension from And

a through signed as that individual And contributed records XXXX. agreements during The XX% business companies. will our deliver are processors from payroll with three employer new partnerships with principally contributed by balance remaining about quarter, services relationships. And during payroll of our reminder, directly the we the employers of records are

and of database trended historical or X.X products records and products are XX% incorporated U.S. from million million that of XXX And from current total has current revenue services the coming now historical first about more records. include new records TWN employers. verification quarter with Increasingly, our historical over

in XX% in the quarter, was first revenue line in overall mortgage compared quarter the XX market originations. Mortgage in was decline when results compared but to to with These EWS' points last down which guidance, are February year. very strong our the when the outperformance by outperformed XX% XX%

strong saw NPI adoption In addition driven to XX-month price from solution, positive strong is XX by record growth in the performance mortgage the also new which impact quarter, and our the product. actions of a trended we

including points. During XX% all mortgage and information historical the higher of over quarter, for TWN trended were products at or price inquiries

saw Turning state of We decline very which driven about by that quarter. the revenue, record with X. Verifier with mortgage Verification delivered of Slide revenue million, Verifier revenue of to our I CMS now delivered government is down vertical, the strong growth XX% growth at strong of up revenue, X% new was $XXX XX%, XX% just Services and XX% Workforce revenue driven strong in additions. by line represents and products, million growth Services non-mortgage expectations. Verification in revenue the in about which referenced. level, two-thirds with down continued $XXX revenue non-mortgage the in

this expect growth to the in our throughout year. We government continue vertical strong

the Solutions remained growth despite have volumes X% quarter the the despite XX% outgrew declining over fourth consistent growth, performance product market. hiring the since strong the decline records market our Talent quarter Talent market. digital delivering continued of pricing. strong We screening, the decline the overall solutions of in middle Solutions delivered hiring very continued by a XX and XX% penetration TWN expansion growth driven by and points favorable background percentage of strong new in

high volume hourly educational specific staffing also background market In needs employers new and the these meet new and targeted background to market designed our solutions. of of segments. products screeners to We're segments, launched continued penetration very seeing in we quarter, end

We talent growth expect to to these throughout new XXXX. products continue drive

with volumes FinTech lending Consumer P lower institutions declines loan X% with down in quarter and auto was the due to lenders. financial

WX driven hiring of and by U.S. a businesses from to UC or seen Services Employer X% slowdown volumes. claims. claims the our Act impact in the despite an Employer higher Despite revenue I-X in than not in yet. we've a reminder, Care X% was up and million onboarding negative revenues Affordable in by are quarters decline And jobless due growth offset increase UC in hiring, other first as seasonally $XXX transactions higher Services lower quarter unemployment

solution best-in-class the industry-leading and suite compliance meet I-X enhance work measures several also supports number by PeopleHQ all HQ, brings employees portal security with their of services employers with Solutions Anywhere Cloud reducing month, powered serves journey new Equifax single portal, and in multiple while HQ sizes experience. a ACA including and penalties. have I-X I-X unified EWS launched the help for of Affordable together Act Care services first total including the that PeopleHQ people the PeopleHQ that full a Workforce of EWS cloud leveraging Inspect online Last and the risk native Solutions, verification experience Employer service best-in-class employers capabilities the needs connected and employee the leveraging employer will

will deliver capabilities EWS solutions employer and revenue to that is continued our of direct example market cloud native to new another the record new is growth. drive PeopleHQ leveraging how

growth, of adjusted February line due Solutions and quarter new expected from quarter Services the basis as mortgage volumes revenues. record offsetting and XXX mix well Solutions, negative XX% as effect actions, and from margins our XX.X% above were with in Talent the points higher as product introductions of up EBITDA seasonally macro fourth to and more Workforce Employer than guidance pricing in the first lower

data markets will and and were and quarter The growth and clear the Services that strong in Rudy strong drive strength record the of the continued the TWN businesses revenue employment again uniqueness value income delivered future. margins and team outperforming another quarter. EWS of EWS hiring in their mortgage and and in Employer

revenue million to $XXX Slide our down down XX% and than about mortgage was Turning was stronger much better due to better USIS revenue X.X% and mortgage of X. performance. our and was expectations. expectations non-mortgage than USIS

higher USIS down higher USIS at relative than was Although outperformance at of actions weaker XX%, stronger basis pricing million, we behavior levels Credit rate estimated to revenue a inquiries estimated of outperform principally estimated mortgage were inquiries strong consumer continues XXX also down revenue at originations Revenue XX% inquiry expectation than environment. this XX%. in mortgage originations reflecting XX%. performance our an At points by total interest were shopping credit expected about our quarter. to in at was $XXX relative was mortgage credit driven XX%, strong versus net and the originations,

our organic The up mid-single-digit was million in was X% quarter we growth X%. in stronger of growth that February $XXX of about revenue the the with growth guidance. non-mortgage Total X% than expected

BXB revenue million, growth total non-mortgage growth And revenue very during double-digit online auto, organically. over over and total of growth the organic represented up with and X% fraud, online X% non-mortgage which was BXB $XXX identity strong revenue about of XX% insurance. USIS revenue was up quarter, commercial, had revenue up X%. in X% and of

offset than institutions growth up slightly although was more the at quarter quarter in banking fourth institutions, large FinTechs. with smaller than slower And at pace in financial financial by and with the in -- declines

continued Commercial of and with area first in the data, new performance this commercial continued utility, that telco, credit growth we our as in and an strong and we risk lines segment above including financial, for growth industry delivering XX% complete launched from quarter. their and up should over commercial was we trade is strong data strength increasing cloud the market year. differentiated OneScore later Commercial our transformation see

and in returned business growth and offline to line in portfolio we insights growth and smaller seen from a larger by expectations. wealth of And FinTechs. but marketing up saw yet. our Services have revenue. $XX Marketing FIs quarter, slowed BXB in our offset not risk-based in pre-screen revenue weakness products revenue Financial reviews an growth was significant partially offline million the customers Revenue was X%, lower IXI increase fraud from with with we Pre-screen

and very USIS faster Consumer identity new $XX verticals the good with key the consumer differentiated revenue also and solutions benefits USIS from active transmission, Equifax We're winning with our first dialogues data from direct new in U.S. Solutions in of of of quarter, about on and indirect Cloud momentum in and business with data commercial million marketplace the solutions. stability, Cloud had and auto. channels. in strong performances always customers up Equifax fraud, enabled competitive X% is in

our well data USIS seasonally their margins adjusted drives EBITDA new of enabled they are margins transformation higher offense is XX.X% were costs, pivoting the solutions. to costs. expectations. cloud selling on growth employee down as annual due finalize were which and EBITDA to cloud and and cloud enabled the from quarter sequentially in with mortgage normalization as USIS -- line in negative in as solutions, mix royalties incentive sequential

incurring the cloud accelerating also as incremental to XXXX. migrations Equifax from are USIS we costs is that move customer through new

USIS second benefit of We adjusted our in XX% EBITDA revenue quarter the spending reduction margins about and XXXX expect plan. up sequentially to be growth accelerating the reflecting

our more next Last proven a leading and driving track product Horvath years commitment month announced and Equifax innovation, services teams experience and strong Todd in and than expertise relationship. XX drive and believe brings he growth the transformation, we as Todd technologies operational commercial strong has And services team a year. in and USIS that his record USIS joined enterprise financial of to USIS enterprise financial to experience, valuable customer will energized and to Equifax of to experience to President. excellence I'm management Todd role taking President. cloud proven his the leadership to welcome to as the

in due stronger debt expectations was but management Lisa the decline than was constant Turning the the currency actions. team. from in and X% The our pricing X%, than and business expected. international local $XXX broad-based XX% our was UK. products decline expected execution revenue X% to down in Europe and million quarter, our from organically new We're currency to a International revenue seeing and Slide in up better X. much

As we year, in COVID as collection strong last first government debt XXXX, moratoriums. management large half debt catch-up following placements the the very debt business our discussed their of UK was UK made

As a result, in that the first we business expect to of half see declines XXXX. in

we placements see the XXXX. In debt government, expect year, the volumes management UK growth expanded of the which as debt higher growth will quarter, management deliver year. from allocation expect debt to and through However, revenue in to we sequential secured consistent business we move our return this do an to we during later budget

the performance strong in from to due good Spain up UK decisioning business very This stronger a and CRA was growth and strong expected. than Our performance principally analytical X% was revenue quarter, consumer we solutions. and

strong XX% revenue of high-single-digit Asia-Pacific delivered quarter. very growth local currency in delivered growth which in Australia the

also a over saw We our very growth up India XX%. strong in business

which very from America a local introductions Argentina, the new quarter consecutive America pricing up XX% double-digit Paraguay, is Latin the expect This and double-digit driven eighth revenue and currency American to strong by actions. team, growth Central in XXXX. very in we growth of strong was continue Uruguay, Latin for strong product

identity lower due Canada. cost better EBITDA Canada above XXXX than plans. local And volumes was up to were our Growth good international in their and mortgage at and our expectations margins offset fraud revenue in X% the against partially was currency revenue adjusted XX.X% expectations. and by consumer growth and execution stronger reduction

to XX. Slide Turning

new XXXX XX%. off record in Vitality momentum delivered a over In the our are launched where our over Equifax product products and XX New the central and products delivered first new Building leveraging Index differentiated of Vitality we quarter, XX% EFX over we introductions Cloud launched XXXX the again. data from growth new XXX strategy. to

first Equifax was by from leveraging of XX% product very Index new in the came performance again strong quarter, non-mortgage new Workforce revenue Cloud. over And in America. Our Latin and Solutions in the quarter products led Vitality

new which deliver million $XXX the at new product XX% This capabilities Index we years three revenue goal. new XXXX to in Vitality Cloud well rollouts, in our long-term Leveraging to Vitality XX%, is Index expect our about drive XXXX. during above from equates Equifax to of products introduced past over

Data new driving Equifax and are central to are New and capabilities margins. Equifax Fabric and Cloud Single differentiated our growth top-line our products leveraging long-term our data, growth framework

in lenders, OneScore, scoring data side model On quarter. potentially credit to to well XX in to on the a the than scorable from million and consumers, about credit on population consumers, we've Leveraging new our Equifax in which Cloud solutions the products data, and expand are the by credit data telecommunications, up with the history financial create of increase right them. XX%. including payTV, and credit million consumers more mainstream will payment to help several traditional differentiated introduced over These testament USIS and consumer can that non-traditional specialty innovation finance banks XX points increase by as for new Teletrack driving XXX highlighted launched Equifax slide, of utility visibility new power as Equifax access DataX opportunities new history of the that payment combines scores the

like to in provide John up strong the off Now, pricing. from second new products, our record to turn growth guidance. XXXX on to building quarter XXXX, John? We're start over detail I'd growth a a more to non-mortgage strong from momentum and

John Gamble

Mark. Thanks,

first I XXXX, a detail more XXXX. discuss on share Before little I'll quarter

quarter principally to was First variable to restructuring our strong quarter cost executing reduction at the our spending $XXX broader expense compensation program. the first expectations, above and $XXX to higher related results corporate related million with due million

depreciation $XX rate with in and amortization, expense of amortization of of $XX excluding we XX.X%. Items below as million, came million, about operating expected a acquisition-related tax interest income and

$XXX quarter the in was in and about spending line expectations. our Capital with million

of X% fabric. spending percent we or CapEx $XXX quarter is third We as thereafter, expected to continue XXXX a migrations and and will customer as significant the reaching revenue data sequentially of expect to fourth then in the progress at decline and Canadian complete Total as remain in similar revenue XXXX in below. level to XXXX we decline be capital spending toward in second XQ to and quarters to capital U.S. million.

first originations quarter quarter weaker down first February. XXX we XX%, points were basis in at for mentioned, the is estimated which Mark about discussed market that by almost As the MBA XX% than mortgage down

in the down XX% somewhat people expectations. today. did process, better February inquiries rates quarter rate XX, closings originations. from a begin XX-year home to Slide the buying X.X% however, As appears fixed high of and to limited home shown The tight inventory lower It than and quarter prices, about were high first continued X.X% but the decline our mortgage credit on attracted

are improvement rest we the TWN planning As look of We're the to XXXX, of that normal mortgage not run markets. in applying credit fundamental market a point seasonal housing for are seeing we or in inquiries does than our April. XXXX, late originations a the assume in basis mortgage XX% rate and current patterns early decline basis and that expecting On decline we March about to for we discussed about versus February. XXXX XXX or greater

As we quarter market an than the normal originations. does originations credit and better expectation XXXX weaker of have that in credit in down despite versus first USIS mortgage greater origination. be move XX% linked still expected TWN inquiries continued to not to the discussed past, the due about overall shopping the inquiries are closely should inquiries the to than

and April, the applying down second the rates to market at quarter, about assumed inquiries be originations early late patterns about to XX%. seasonal March XX% and credit down again we're Looking mortgage in run seeing are

XXXX sequentially we of then mortgage discussed in more XQ versus in mortgage XQ flat XXXX, XQ normal and XXXX. half February would have with XXXX, the originations XQ through XXXX activity As second we declining being about pattern as a move in of

would versus mortgage XQ first would and down and slightly originations that originations February, second overall be these We half the XXXX in half expect be in about the sequential than in weaker the we U.S. with flat year-to-year. patterns XXXX discussed

Turning to Slide XX.

spending in first cost XXXX levels, delivered and the in quarter, data of and in earlier, we measures. plan referenced workforce that XXXX XXXX including additional on Mark spending reduction closure versus revenue will control centers, outperformed reduction, deliver reduction our well against As $XXX million delivery

In than the quarter XX.X%, compensation been about XX%. stronger the EBITDA in adjusted negative fourth were quarter, the impact for stock-based margins adjusted versus slightly timing higher of margins would've adjusted first EBITDA the quarter, expected at

revenue by For XQ, This we in margins is margin range. related both reduction $XXX to our well EBITDA as the savings the of of expansion of at sequential second approaching of the million driven XX.X% growth mid-point acceleration as expect plan. half guidance spending our adjusted XXXX

cost and growth accelerate EPS to of the fourth exceed second exceeding broader expected quarter. EBITDA sequentially per EBITDA the half adjusted adjusted in margins EPS sequentially improve As reductions $X cloud margins and revenue with XX% and share XXXX in and

Equifax and revenue Slide guidance of XX billion XX% moderating provides XQ to compared to $X.XX In be revenue total in we XXXX. to non-mortgage XX%, mortgage second revenue growth quarter billion, currency first offset down the to quarter. partially with $X.XX X% down declines our expect of by between XXXX, constant for about the X%

margins over actions revenue negatively given compensation quarter, from improvement growth expected revenue from of as XXX and margins impact over to points. growth, cost XQ Overall, growth in in BU USIS workforce the in up over adjusted approach basis is as XXXX margin FX just the to basis by sequentially actions. EBITDA XXXX by adjusted XXX XX.X% EBITDA and expected sequentially lower XX% XXXX driven up XQ delivering margins total revenue are be EBITDA are points expected cost equity to expense. well

in compensation as principally first decrease reflected sequentially will meaningfully, equity the XXXX quarter. in expenses XQ Corporate was the

below. the down be revenue Business about second Solutions be negatively decline expected the X%, expected to Workforce described expected market to in is quarter in originations. unit as mortgage performance about impacted growth by XX%

consumer be overcoming U.S. in high-single-digits, weakness hiring in and lending. customer year-over-year will revenue Non-mortgage specific declines up

basis over expect the sequential execution non-mortgage sequentially over be XXX to to growth over are up quarters. driven up to EBITDA actions. of and -- to third fourth and growth reaccelerate We strong by revenue EWS expected be margins expected are points XX%, double-digits cost in XXXX

of mortgage level in expected Non-mortgage we the XX% be partially similar by the about X% approximately quarter. up USIS XX% revenue inquiries. revenue the will X% Equifax in year-to-year. due just revenue in to to decline represent to the mortgage in delivered credit is the decline growth Workforce first quarter, be Solutions under should expected a revenue offset at

EBITDA EBITDA margins in about about expected is strong be cost expected XX%. revenue margins be revenue actions. be and to to are expected on about to sequentially execution X% with constant to XX%, International up currency due up growth

to We $X.XX we growth principally XQ first constant to delivered return in in per XQ Non-mortgage down driven adjusted accelerating do be in share. plus the to XXXX XQ, X% growth of EWS is international. by to $X.XX and We're the XX% currency expect growth in quarter. expecting to in EPS from growth stronger X% as well XX% as

of the provides full-year XXXX XX Slide our specifics guidance.

are originations foreign maintaining negative As and guidance Mark impact mortgage we mentioned, full-year a despite expected of weaker the our more U.S. exchange.

levels or revenue more be negative. total similar to down at slightly year-to-year expect down to February X% at mortgage We our guidance

expect down we mortgage impact USIS the do this not We XX% down shopping, are we will of we which as to versus originations originations. higher seeing discussed expect mortgage offset levels revenue, discussed, the in decline we February. As be in XX%

expect In value of the mix improved higher EWS, of an partially to mitigate originations mortgage solutions impact decline. the trended we

our continue adjusted negative in levels we international. our had the For to NPI is non-mortgage deliver reductions to despite our levels we constant in growth centered we execution start NPI, expect strong strong discussed the our at mid-point transformation both better impact cloud constant in slightly full-year given guidance the delivery We up February year, in revenue, and performance currency about spending to the at plan, to of more ranges. stronger the XXXX of believe of X% currency These growth that or at revenue in FX. growth, our of us guidance EPS and allow

in on had than levels, expected XXXX. down our we goals market in of our margins, XXXX deliver XXXX, to The of $X discussed in is different these from to significantly delivering we billion mid-term November in we XX% normal and discussed in goal XX% XXXX. average in discussed revenue EBITDA As in XXXX focused conditions are be mortgage we goal $X remain about billion of revenue to the U.S. February, achieving market first XXXX

Our core organic November XXX than revenue discussed you XXXX. with has in grown of points basis faster over we

volume to a XXXX loss market are still of levels of However, goal. needed mortgage in two-thirds order the upon the the is seeing achieve our recovery in billion we the from $X likely

exceed our of spending the XX% transformation, data focused to on committed revenue EBITDA cloud $X reduction delivering and as market level. which cost and and and as plans and with expense driving are we margins We part technology XXXX growth achieve above the billion our XXXX are needed improvements

and our We you our continue as and mortgage to $X discuss billion markets evolve goal in forward. with will the toward overall progress XXXX

back Mark. turn it would over like I to Now, to

Mark Begor

John. Thanks,

Equifax Wrapping our the non-mortgage quarter with business delivered performance revenue above Equifax strategic dollar delivering execution and XX% against reflecting the market strong priorities. and of EFX and our broad-based XXXX up depth strong breadth Slide XX, on another currency model constant growth,

margins of Workforce delivering growth quarter XX% Solutions business the adjusted our results level, At another had non-mortgage XX%. EBITDA powering unit revenue with strong

records EWS earlier, with three new last with and up XXX mentioned year. million, I records payroll X our TWN processors reaching and versus XX% As current million sequentially -- signed up

XX% a the strong solutions while Cloud new very government quarter the Workforce over talent with EFX Index new leveraging Vitality further delivered penetrating another from growth and and products innovative verticals. high

and total their non-mortgage USIS of growth X% continued by their BXB and momentum total growth Cloud. X% quarter migrations Equifax non-mortgage accelerate BXB of X% they to customer from quarter, online X% as in new with the organic the organic driven fourth

delivered And as growth leveraging India, our XX% strong the growth X% LATAM, NPI well XX Index framework new over International long-term first products and in above European be Equifax businesses. our continues Australia, the our strong up new credit with currency we quarter, Canada, delivered Cloud in XX% local Vitality to quarter.

our our only to year we're completing over this new with transformation progress our executing EFX cloud against being migration revenue of technology significant data made Cloud company. XX% Equifax Cloud analytics data and on become North the the we from and laser-focused delivered native And America

reduction And exit savings while XXXX, capital expand XX% our will with and margins of deliver per in that of over share over we're in for run executing $X against as to million reducing positions will EPS million rate $XXX of our savings economic to we which the that the intensity $XXX plans uncertain environment our XXXX an spending us year, business.

reductions, from our our given top the past years we've deliver over Equifax leveraging capabilities We're performance drive our to line. Cloud for XXXX Equifax and spending new as cloud chapter XXXX we EPS. pivot our and and the our the earlier, outperform mentioned building entering bottom next of as new to four our the on strong guidance to continue the in to revenue quarter, reaffirmed adjusted And underlying plan ability markets our

delivering competitive the expand. We're are energized seeing the we early for transmission positioning The us by the macro four on on cost the We're ago, Cloud. faster data our and benefits of digital outlined of always margins you're Equifax benefits gains. benefits being years and share

Vitality The XX% report of -- results solutions work and delivering differentiated accelerating power data from first leveraging new our unique wide NC data our all encouraging like Fabric data. over last alternative solutions historical mortgage XX% well allowing is last a their long-term in our data, deliver a year above OneScore cloud most early Vitality a in Single our array Data cloud trended quarter. NPIs single of is Workforce and XXXX. to leveraging who data, of environments environment XX% capabilities XX% alternative siloed leveraging leveraging the over our where and credit more Plus data NPI all and of Even our goal with us our year moved all has and Vitality is Solutions completed are to

exciting I'm time Equifax and will the but convinced differentiated XXXX cash strong even and flow energized businesses is We're our and market our for Equifax Fabric above expanded free technology, energized in higher that cloud-based the Equifax and in new about and deliver future. data new Data our new higher about assets performance, margins, growth, This more market-leading Single beyond.

open for me it operator, let up that with And questions.

Operator

be question-and-answer We'll [Operator conducting Certainly. Instructions]. session. now a

from coming first Our is Barclays. today Manav from Patnaik question

live. Your line is now

Manav Patnaik

bank outlook factored morning. actually just non-mortgage you it how that Good sounds a was you're into because to hoping broadly raising I just your the Mark, on a could about credit talk about little the and counter are guidance exposure which hearing is your we constant what trends. currency tightening Thank you. seems like you those basis, regional a bit bit,

hoping help those could parse through. us just you was So

Mark Begor

-- We FinTech. I'll with maybe start Yes.

business. know, you we have As FinTech a

at quarters. a of there for in number than tightening that least we've one is our and seeing space position competitors, been of Our smaller

I think it sheet started really challenges. almost a year ago with the FinTech tightening balance really from their

factored We continue that's originate. if guidance be half second and expect haven't there mid-size we some believe to where impact, banks, you expect into we as seen we to There'll to our much this tightening we outlined, go some the FIs by revenue sheet as But that bulk originations. haven't of you balance might a our larger of slowdown balance imagine, tightening in been the or impacted see impacts sheet from to comes the from them deposits.

Manav Patnaik

it. Got

John Gamble

-- terms is So slightly take What comment were full-year, about international's full-year the you international you're right? given terms XXXX a growth our better, stronger adjustments little actually slightly the did expectation seeing guidance, our performing FX. in basis -- And of in in made up by of in about the we points. for XXX

Manav Patnaik

it. Got

cetera, was Data about then the helpful. Mark, talked transformation you've Single always just That's And your you forth around risks and could ChatGPT and AI so talk with hoping the you just are a lot et your with news all the mentioned obviously, Okay. in media. and about see. opportunities there you and where Fabric, the tech and on but I capabilities you

Mark Begor

deeply in time. analytics a great on It's about AI that and a It's And working data Yes. we've before. one been team our long talked involved Manav. question, for we've

both capabilities. ignite of as Google, brings You've expand the Cloud our using with AI know, which it's our our to internally us capabilities solutions and solution. embedded to heard our about and in talk around Google that with explainable And very you relationship is AI leveraging our that we're on strong customers, us we're patented one NDT, we're

all believe in by Data which we is would the the of think really drive we're data you AI using data AI this uniquely you it going more meaning take forward. as to a capabilities the for And call Single more And as is macro and I manage industry predictability Equifax. positioned really unique to having number Fabric, one, know to out, our big point of a I advantage

cloud second native. being then And

As coming America both customers USIS and and data forward. North complete quarters, to to solutions that's cloud AI solutions our over just the the Solutions more to capabilities going principally more those really to leverage allow going in new we Workforce bring leveraging

Operator

Thank you.

coming Company. is & Needham from Next question from Kyle Peterson

Your line live. is now

Kyle Peterson

to the centers? whether of of Great. banks. volatility of heavier modest with with some guys. follow-up largely be. these was deposits, but of -- in or regional some just concerns Manav's wanted banks Thanks. when see kind Did credit of to guys you you see any volumes happening the the on given unimpacted in March some temporary were money some it peak and in of regional everything question, disruption, exposure the the of kind the crunch to the Good of guys if wanted of in or of some kind shifting on I morning, at

Mark Begor

issues just concerns because ban some in exposure. been for seen you really consumer would concerns we we tightening, know, could have which FinTechs risk mid-size deposit subprime impact deposit And in some unrelated really so impact. to I tightening say It's was though, that sheet been as I around delinquency having. from consumers, in credit mentioned we've we measure of know and certain of there balance those or what or far that April as -- management banks, haven't areas, Well, even one, more see because tightening really broadly of that would in the seen you that characterize no March FinTechs, our number around example the some from in

quite in heard still originate. level and government, USIS guidance, employer business, businesses characterize not customers allowing still of But of what Equifax our my that our in outside to looking kind February, our still reflected consumers services. comments in Solutions, delinquencies And our you and in versus strength and very at businesses are services. second the that's deliver guidance a low that and the identity full-year half about continue being broadly our again of earlier, again, and is some Workforce of fraud Talent Solutions historic about of back and the the are businesses the there's broader second broadly slowdown, we financial that's are manageable of of lot as today, as that you remember, think levels to think we reaffirmation our in half. financial to When and are many is And we think healthy which ability reflected how we in

that's an a have we of course, Equifax. is of element, a quite business part diversity international there's So all large

John Gamble

Yes.

from mentioned pre-screen why pre-screening seeing institutions. weaker. Mark As some it right pre-screen, as say was And as that's where did DDM, we're in financial we smaller in seeing and are FinTech really in we well impact

Kyle Peterson

little helpful do XQ like likely it And the price, of seems like on better least business, follow-up see it puts what Talent have Was any a this any Solution there could we've It seems and guys, of hiring But if Solutions of little the was help some some you Talent square Got up it. seen. like color? the on at predominantly that That's to of you than color. side see that seems things. is guess sequential wanted just us really you a the but to takes just wanted seasonality? revenue. from seems XQ I as if pricing? cautious just Is data side a revenue Because the of the bump in

Mark Begor

Yes.

sure. for market I declining. underlying the think going hiring you is less on out point There's

do up companies combination addition. layoffs, generally You tighten and companies doing a of have headcount layoffs when they

seeing through started clearly we're that the and So that fourth continued the in quarter. first quarter

a And the that almost large similar business a huge. a kind we've $X remember, and a got offsetting it's of TAM what's is is but here, TAM $XXX billion Really, we then about -- decline. have business million It's a here.

have So opportunities. a lot we of one penetration number

we are declining, new market's opportunity customers existing or primarily market the have with if more screeners. get customers, add even background share So the to which

in you year first two, we generally as up point every price take out, Number the quarter.

quarter, quarter So about driving rolled that number benefiting that's of in the of business. And that in the first out us really talk is first that is some you also a benefit, penetration. which a in talent the the products new products price We've that results are positive. the and new heard

last would record then be And additions.

us jobs screens have on when more As we higher those new rates, to records, database have and allow our we add are background completed. hit

and strongly to has that levers those all that's in allows frankly verticals that the So model. underlying quite business workforce of vertical, in in markets number their and outperform their them inherent

Operator

you. Thank

Steinerman is question Morgan. Andrew from from JP Next coming

live. is now Your line

Andrew Steinerman

versus guide the the currency growth XXXX X% first on in for XXXX that the terms So Hi constant quarter. basis? John, is revenue organic what's implied non-mortgage of in this was in

John Gamble

Yes.

we So to as an expecting our growth and I are about we as and in quarter right? the strength think gave strengthening nice third quarter. But fourth of talked total organic go we non-mortgage number full-year, for see rest the what don't is we through the

Andrew Steinerman

Okay. EWS? just Could been already bit in about acceleration a you You've about talk little pretty clear the that international momentum.

John Gamble

Sure.

see what very continuing I performance good in to EWS think is government. So

really expect see nice forward of continue the year. to to seeing We new that, through move rest that progress go the They're we also as product. in

So we're expecting to -- NPI acceleration see in good across

Mark Begor

additions. Record

John Gamble

the of we as go as well in quarter. we through first accelerating And to the expect rest through additions in we growth they year, Record the processors as added payroll go three new the records as see year.

as So in I higher the think in help all go of drive rest the performance year. of to will through things we continue non-mortgage EWS us those

Operator

you. Thank

Securities. Next Truist question from Jeffrey from Andrew coming is

now is line Your live.

Andrew Jeffrey

inquiries those of of think just the can have you over because in today EWS good go the the products? you pretty you you trends move is and Appreciate thanks, taking those data data database, refresh follow-up, you how what records percent newer the you kind a trended on sort Can data bit some mentioned Hi, discuss trended price EWS, is differential of intriguing. morning. as question. us Mark, unfulfilled in either don't also little which then of on a And you what or the don't and have time?

Mark Begor

Yes, yes. questions. Two great

record part lot EWS across but around their And On of the they only dataset. the leveraging of historical Equifax, the year last but when unleash really completed EWS, a capabilities able one, was a big I to cloud keep that's valuable. first not today about or or many we have million know, much we you about records. auto over XXX as very understanding mortgage paid you And someone think you so verticals think so other think has how every if is

commission compensated Is an got that annual history won't decreasing? on or a who's with But quarterly the basis, it same? Is having be picked a the if staying a today. employee they're paid snapshot sales what it of increasing? you've Or individual an and is basis pay the that up in

information in And X mortgage leveraging call at very snapshot $XX basic valuable. data and that data valuable trended very, that in that delivers because XX it. buying is that become And mortgage inside seller data. sell very are space. multiples verticals data to early meaning a for $XX. Same customers sells multiples it The of other thing customers. of background screening, more that would the very some a really historical gives predictive for around so of trended in we our And what be are of So XX data our our employment Xx much worth a product will white strong for years' history looking versus we months' to are collar worked fourth just employers for I the think snapshot. to And was it that historical for longer income history. the jobs. we that's maybe in the point worth looking $XX sales last of in for job And are about launched new quarter, the at Other five employers role a in talked employment is obviously a higher certain in history sell are price

a player for that's big So us. growth

that's comments comments records dramatically up talked on Verifier we the and that think ago. historical now the formal of XX% I is number revenue including a earlier, years approaching from And

leveraging that's products And focus going So it our driving the and to cloud and drive it's new on margins. again, forward. workforce revenue capabilities

XXXX lawyer, non-farm doctor, to a also employed or XXX XX million dentist, gig a earlier, employee or or Uber mentioned payroll, XX driver. the a including be XXX individuals there's jobs million to United XXX million, are very as remember, I question going they're Your about in a working a records, And second high on could worker individuals. self-employed self-employed or million States, a paid million be

So employees million that XX to in of there's XX a wide array million.

records. those after going we're So

And to mortgage who's U.S. our financial use pension it's get to whether million benefit defined someone then and income income is a loan. that want income another auto customers and XX going retired in when there's out is receiving the pensioners XX million pension that's product, to or a

XXX about States income the total individuals So against the million. United have in million we XXX producing

are know, our every and rates north have. applicant for our So what already records a we continue unique grow opportunity to because the getting that have the well to is, of for as you XX%. very lever business we're Solutions as But it's we're real hit any customers inquiries -- to Workforce just

And have paper to using around when calling we're they pay manually able not employers. through do to and to it stubs fulfill,

able new add or the our them orders we we the quarter, coming already because as records to to monetize So we're have the database. inquiries instantly during

records So to those of Workforce very to large the that's why into for solutions big so that about focus a focused business. lever up double-digit being Solutions. revenue, we have such double-digit different a records it's translates you And on and a team think when workforce verticals powerful people all add

Operator

Thank you.

Next from Stifel. question Rosenbaum is coming from Shlomo

Your now is line live.

Shlomo Rosenbaum

on was the slide. think very previous Can it one talk then you organic this have out quarters, in might I thank revenue? non-mortgage -- And and you John. Hi, much. the about I for mortgage be the see Hey non Verifier I but didn't a that given follow-up.

John Gamble

So we well growth drive from growth additional so to about quarter. in it a of half EWS that's I about, significant go there's back records, we the again, in in quarter then we're continued and to ago is minute total was very growth new number. us that year XX% past Acquisitions weren't just think I organic acceleration substantial we products, a first of give in the specific not and government really expecting in in the the we benefits talked as above is in XX% And Verifier pricing should that It as to forward allow really had year impact good back what XX% that continued as growth a talked as get, of addition total. what was to drive acquisitions. We didn't as really think the the in in growth. about

Shlomo Rosenbaum

but them Thanks. go when you see were obviously is quarters. seen I exclusive on effort just the the like in ahead those of out the left comment didn't part previous Was payroll this then have and or some company's to were And about to add not the talked records, Okay. just we continue a that processors, exclusive? new that significant

Mark Begor

plan to contracts The forward. going that our and continue we're No. be and these That's work. signing will exclusive are

Operator

you. Thank

Next from Blair. question Andrew William Nicholas is coming from

Your line is live. now

Andrew Nicholas

fraud of doesn't to morning. from my the wanted start, for like business the seem in quarter. Hi, it any there deck good mention identity Thanks taking the and questions. I was

Just wondering first are for there. we what the the year as how -- through how and quarter move your that's trending both expectations in progression

Mark Begor

as We you last good Midigator couple to out. double-digit not continuing at growth. have things know, we United should of businesses States Yes. that. actually and should globally acquired two Talent, It's intended Equifax a still have years and one are we've deliver revenue. added There strong and We've performing we was happening ago and called also, do got it year a those to lot well in very highlighted and not that that

they're USIS strong performance. a that USIS part So -- of

and got an insurance been -- in world, in also telco, But new -- their products team identity focus. to M&A not fraud has out their business bringing identity as new area solutions also around you FI, focus identity and space, expand in know, rolling also. there as e-commerce retail expanding the we're in where only really and we've where both know, capabilities, count solutions and around you the as And that a around large for Equifax is is a priority is new are

Andrew Nicholas

relative lower expect the rest mortgage in of And that, in through follow-up, that outperformance looks relative a of quarter. wondering to inquiry the decline least to first kind just read you. you into been at me the of there's Or outperformance year? Thank Thank growth I'm be in the the Great. would could the my I helpful. in for the normal narrowed It to you. wanted EWS. if has narrowing or decline is level XX% to mortgage that if about quarter volumes kind unpack XX% to just then like to anything ask increase of

John Gamble

Yes.

very as I credit early of but the a is originations, closely right? think in much is. Because to is because obviously to tied against data the ties mortgage USIS as more more pulled cycle TWN originations not relevant closely inquiries, really comparison EWS credit is EWS

tied So to it's origination. very an closely

our And consistent the strong expectations. very originations, think we with outperformance XX% relative very was to and

which all the and pricing So growth, referenced, Mark's And the we feel especially performing. record done good already been they've and out rollout as way here we really strong again, good new couple they're an about which performance second beneficial the has XX, first of it's the mortgage quarters, and of trended product, which things through in outstanding is very get in job their last complete into quarter. will quarter rolling

about So good outperformance mortgage. we really their feel against

Mark Begor

a off also comp were tough last from year. They

John Gamble

comp tough last from Very year.

Mark Begor

rolled some strong. we're XXXX from the of late outperformance very strong strong with products We They XXXX it's very and their Very, pleased new outperformance. a in and very were out into had very, that XXXX. think

Andrew Nicholas

Thank sense. you. that month? Didn't account for Thank new Makes you.

Operator

Thank you.

is Next Craig Huber Research. Huber coming question from from

now Your live. line is

Craig Huber

Yes. Good morning. Thank you.

if would, rest is of how First what that business, for in maybe credit question, can auto detail, more outlook U.S. card your you and the in year? you just for give the did your us a the little

John Gamble

that we So right FI. that card indicated auto And indicated, our that or flat, FI right? right? also about of I believe I think was was inside And well, business credit banking we performed

Mark Begor

we also down, the in originations for while. think under I comments And was which the pressure said was flat what from that driving FinTech has to FI a been

Some the smaller growth the larger slowdown, with and but continued FIs. banks limited in

there. a impact of kind was in there So balancing

Craig Huber

here final uses paydown? free flows, expect other of question my your changed. Do debt potential cash than just than anything we different And guys, your thoughts here

Mark Begor

down the it come you our next Craig know, CapEx the take year. we our first to growing complete plan Yes. is margins. year. I company this And down, as We're our and foremost again on still down EBITDA it's and as think focused will cloud, It'll -- expanding

expand free to our flow. going cash that's So

our bit of X which expand. to about continue bolt-on X pipeline strategy. is allocation points growth. points to you Vista X as actually Certainly, revenue capital will to of M&A a Equifax, change, got north of we've part the our in of growth is cash when X And to revenue uses And Boa a margins we think no that flow, our to free add of know, then from

will We been M&A clear a and in plan free excess the flow time, that we've buyback continue XXXX, through our XX% then the margins very for what we right And dividend. in part and our to want as cash expand beyond at future, use And that shareholders in and move towards flow our free CapEx. to return that's to certainly of the future. cash

Craig Huber

Sorry.

John Gamble

complete XXXX back BVS right? year, of integrations, focus obviously think focused the and XXXX, next we leverage on near-term, on on And and over years. as I we've through focus as acquisitions move reducing Very us early we and the you'll the reduction. in other see couple half integrate of done the leverage We're

Craig Huber

year. half auto a the Back second that question for very the much. outlook bit little of you card the and on you on touch credit first just further? for Can Thank Sorry.

John Gamble

Yes.

embedded our we talk half didn't -- give the specific certainly see back in is most U.S. That's is go auto markets. in international really forecasts weakening back FI. our what the U.S. in year of in this the rest and/or guidances a we we'll didn't we true that year. also around generally the as give but in about through this So in half We sorry, of of think segment, expectation markets by did forecast and right? But I the

Operator

Thank you.

from Autonomous Next coming question Research. Zhu from Kelsey is

Your is line now live.

Kelsey Zhu

question. my taking for Thanks

EWS LinkedIn or how I about all. that wondering growth impact So at trajectory you product. was an does pricing introducing verification is think employment

Mark Begor

attributes date title, you probably experience verified don't. payroll company's The continue in get for out of directly There's too. number ability important to records of XX record every scale of over we that We record and the meaning which that we dataset and the got you payroll there birth, from a know our also our solutions vertical. employer and source depth FinTechs includes social, as records the very know job there our get name, is the dataset, of the a fact from as business growing

gross But worked, pay, on of stock then all payroll, kinds et incentive sales the hours cetera. details compensation, pay, net compensation, compensation, deductions,

position. database, current a it pay very our the of period, of fact the that and really gives So scale depth us strong it's every the

know, integrations And all our our we've as you our system workflows, workflows, that hit in system think their then of we of part a I where built they to last, as have customer's verticals database.

do we of like have workforce a other the and you dataset. first. strong Workforce from in So which partnership verification of that. where continued uniqueness source, go Where transaction depth you've data described why with you manual. Solutions, have we're scale not play growth or super is and And like the of FinTechs the is and Yodlee, seen and where there's that's solutions some solutions bank because to we there's typically from another a hit to But available

Kelsey Zhu

Got question consumer second it. Super helpful. on My solutions. is

I growth strong is gain? the more volume market by was wondering, or So there, driven share that

Mark Begor

That's in the performance -- business a direct-to-consumer really to rate new It's that the like our monitoring and new other of want marketplace. and we of new products. use that that solutions better success some capabilities that. where some solutions in rolled It's business leveraging sell credit has Yes. the monitoring a is business solutions having landing cloud consumers just our credit out

And we're as So and leveraged the and and with. a new which struggled growth, having ago, capabilities ago. return years it that pleased out you with products, year performance, those two we've we recall cloud may rolled that had some we're better it performance the to into got pleased

Operator

you. Thank

Next question from coming from Meuler today Baird. is Jeff

now live. Your line is

Jeff Meuler

Thank morning. Yes. Good you.

need seems So I industry I up the look we asked mathematically Verifier you're there's but Talent. like guess But growth one other, revenue about on guess, any the to a minus I guess you've other records offsets to but metric. just lot I I gross me I them or that help that's gotten an on when consider. story. structural hiring factors. And a structural growth plus take public drivers plus other XX, if revenue drivers several company, that the or you. know calling stepped I you different then at can by think had guess situation XX, referenced I the out X, the year-over-year, specific another Thank dollar sequentially, if

John Gamble

not records change the over in of would year, business, record growth. two-year, current in the records we I your important, most is use Remember, what you're very is points quarter the five historical that a leveraging and we're there, growth our think lot walk it's I records years. from thing records in but Jeff, is of One Talent, hitting last the three-year, four-year, right

quite So to you want essence an big in as that what is rates to going jobs. adding, you're far isn't hit add we add that as more impact higher as be as

they've a over new rollouts talked new out products couple number months. XX actually rolled we product products as to New a the XX last of months

year-over-year basis in screeners. kind they're So workforce new forward. to XX And benefiting for just one the is declining customers a quarter; background us of background to then data. out with the think provide as our going in principally are high-level that market hourly couple rolled our a embedded those XX other are going in we in lever growth doing we a X using on the kind X of or growth business penetration. And offset rough we're to screens Remember, math, for that pure is in ones

are others using of still kind the The DPO process. manual

opportunity an business. don't for I that's that's if know the helpful. So

Jeff Meuler

of equity you. thinking years was it QX, still nowhere factors, impacted future XXXX want grants some guess sure off I just Thank seasonally QX. a as in lower the margin make $X but or launching a I'm because catch-up point. and plus seasonality XX% then through EPS a but I'm timing in and as in correctly. helpful. And in it's just is I to is It other one-time pronounced was near that from XXXX there as there

I you. sure Thank have make right. that to want Just

Mark Begor

incentive first in compensation compensation the about talking he's along think the I quarter with impact. equity impact the So

John Gamble

relatively in Because on up each So the -- structure -- being that ends in now no, the currently equity, probably are just expense it's year programs grants being based that taken impact of the given fact the executed so end right? specific up the to first similar, quarter. the is year the the

yes, something have mentioned, did each that's of obviously terms impact but normalize going cash year. equity our going XXXX of an year first you'll XX not compensation, something compensation, in -- forward, first of each to the on see the we and that's Mark we impact XXXX, of see as margins we that incremental fourth should to fourth incentive As from incentive

Mark Begor

meaningfully restructurings call, And think also complete we to substantial last be question, I benefit to we cost have carryover lower talking structure because we've the to the that expect the think as is we're is year these out cost But meaning I throughout exit cost happen on your in quite one think the our about. I talked, the outs going year. number

we're fourth cost at not run actions quarter. full of So the in rate those

the And savings we're So year, our so have end then next margins with cloud XXXX benefits as fully the XXXX that. there'll complete -- complete benefit expect in further year. you be at also get we in not that'll help to cloud we additional from this of a

Operator

you. Thank

from Next question Balsky Bank is coming from Heather of America.

live. now is line Your

Heather Balsky

taking year? launches. meaningfully from question. see finalized plans my I'm USIS product ramp Hi, that tech Can to thank product you do releases for a think sales curious; transformation? when update some around your we see these start launches your we've on you've you And seen help around this to benefit us you efforts? now Should those strategy recent launch we'll more your

Mark Begor

Yes, XXX%.

their complete USIS as is cloud Just reminder, they're final a but the with not transformation, in chapters.

year. that So we're this going to complete

new I phone a XXXX addition announcement, big our data utility acceleration credit we customers do which have of in are cloud, seeing are you of of meaningful about And the And talk that. adding our that's cell we of rollouts data. team, USIS lift already the is in meaningful to deal. which may that of talked to ones a morning for from on in scores product our have can by We we're USIS about number -- where our a an new already the didn't you seen only that report, credit we're mortgage consumers February that, -- the provide going this

large that about only on along very talked new million our XX a the this and the that U.S. in which combines for us have data, I mortgage set cell is DataX solution be Equifax OneScore to morning data product solutions very a the utility we going space. that's in So for positive Teletrack our with phone consumers

So that's another to will new file be differentiate USIS in additive solution the marketplace. that the credit and

there. brand new out that's product a that's So

a along in you're business trade a that's customers. delivers very And solution leasing commercial few performance marketplace, also one We longer months, driving PayNet business for business. commercial we're data, data little strong our really the in double-digit solution, bank growth which -- that's a -- with in growth. been our that seeing transaction which bit lifts predictability our our meaningful in launched our lifts And very but new that's commercial combining line and for driven with that

have of to solutions. And the big a already days -- cloud So are we some year. it time, it And out you're in seeing in the in the the early their we USIS complete continue businesses. revenue them of that'll show this think rolling I up you seeing later as

we've have as data competitive from always share to think to as meaning market well Equifax we or The USIS. the that's other from gains going is stability expect lever transmission Cloud or the talked the benefits I be about on,

that that our And with the benefit. there's another because customers So Equifax that's been preferred lever, moving positions again, into USIS we're investment cloud. another in active are dialogues and clear in we've of

their really So kick XXXX those in as XXXX. XXXX, we impacts through show up on revenue should in, but move and

Heather Balsky

housekeeping was helpful. That's $XX a as you. there to And M&A adjustment million a question, related Thank just integration.

transactions? which other curious, to Vista in particular past with or that anything what's that -- Boa is related Just is it including

John Gamble

Yes.

period past XX and between integration we no, difference adjusted the of financials, M&A the our adjusted about months. unadjusted time our -- that's been the related have completed talking transactions to and the for some you're of the EPS, of include outside integration just So over M&A a

Operator

you. Thank

Next Kaplan question from Toni from Morgan Stanley. is coming

Your line is live. now

Toni Kaplan

But the the in to will, savings hoping if going that's spending much. based improvement million of scale on I so bag, expense Thanks ramp expansion is you in margin I I with guess about that how margin how is bulk the in of based about a of business? much $XXX was the talked ask the second just half. from coming you versus know or away the on OpEx. much

John Gamble

it. that. But those in amount, spending we're I'd we're those there's that and to We confident there's on do reductions. spending Well, the and order to a focused through obviously to to second -- from lot expect very execution half, we're in And on well generate reductions that, but of delivering significant doing feel say a April do spending reductions. executing going do

a the second it's the So in of significant improvement amount half.

see some do have across second also strong ramp segment. non-mortgage good We non-mortgage. international we're talked growth revenue expecting about But continued across expecting their see We're we half, performance in in even USIS to around to some performance specifically right? the that in EWS,

expecting are we those improvements So will see margin in which drive enhancement. to help revenue, also

order it's margins. necessary really meaningful plus So both in execution are Both and XX% there's the of to in areas. them deliver both for

Mark Begor

data the Maybe just add cost degree when reductions. when contractors on have to that, your we but centers, high we our I'm visibility of decommission term around that's confidence all I leave in not Those where going and going are have sure control. I'd say real because we're we into know are a use bag, to ones would

a to that So confidence and that that against of us if sense. gives ability the lot makes execute

Toni Kaplan

employment the like So providing you're guess long-term versus playing see see do playing compete the ask to just current maybe maybe you the competitors where moving Terrific. Are and like work guess there? historical can with of competitive a there've in recent been lot I the how employment areas wanted out? a providers a do And follow-up, income the about specific advantage industry space. wise and for few value number, how into new out? there verification employment long-term you more have I

Mark Begor

as XX% players There's is our the real Almost -- a think our United of about continue manually in as biggest us. still us. the on services in so that three dataset you business real done we processors, is there. we scale income payroll or and pay HR directly States. our UC way other we other lost and not or the know, to pay clearly in It's provide to advantage, business grow employer per that add it we grow managers, in are the of The adding double-digit to quarter, Yes. being advantage a W-X competitor, new is employment stubs. we The scale all obviously verifications up to solutions records through records

using. the our also And hard business records Verifier records, historical decades revenue the out, from those a FinTech but broad someone's bank historical verifications have that's in enough enough net trying account net increasingly, is as of super that not information deep generally historical getting XX% get point are that in use or very point, it, you that to it's that only of a you're we get lot that from a pay pay to when with the in what to the has data we're valuable coming

The So the and meaning scale gross the records. us. the having deductions, details, for deal pay depth those is dataset big through all historical a of then all

on focused we're So expanding.

records, continuing capabilities I signed us know, add you the our employer that'll in XX months payroll to quarter think That's add big partners ones lever three new the last come five first online. to think we've we're as a and in to for there. done acquisitions I strengthen with growth

record expanding very on So focused that very, we're have. set clearly we the

Operator

Thank you.

David question Next Togut coming Evercore ISI. is from from

line is now Your live.

David Togut

just XX Thank beyond you've the particularly morning. and about mortgage if strong Good how demand mix your as from new pricing you. at Mark, the actions terms of you give revenue from Could in included XXXX trended much this How EWS data and business price how in you. to a quantify framework follow-up, earnings positive unit a benefited you guidance? both by taking think you you the versus And shift about about EWS broader us price? year could balancing pricing Thank think product?

Mark Begor

you Yes, we of David, price I reasons, our the any think, reasons disclose any parts of and don't business. in actions commercial know for competitive as

I X/X, we've been going we do businesses Equifax we that did generally do year. of year up the take it it and and majority every expect think We year on forward. to that clear and price this next

that's of So a strategy. no our part that question

customers generally solutions more for are price, that. I data about and delivering drives for that think new do, think the you you our but got with initiatives, value more also price, to you to differentiated know impact data and predictability of more pure which and more product our charge when And us allows and about

us. clearly a for of So products growth new are lever

pure Workforce And particular again, bottom real unique. expander product Solutions that say you expander margin meaningfully should of are revenue Solutions also workforce pure is in certainly drives is Record all for and Workforce levers the growth would and our think a multiple Equifax. and and I having of very prices, growth our Certainly, top-line about rest very important. line at

have Our U.S. them. all other income and the or got records the already working in most producing other XXX industry XXX In our of have the ability to data Americans marginal we've case and businesses add to or businesses in there's million. them million

quarter a growth. is lot and being big revenue in double-digit of there's growth So the up a

have is and also most data penetrated. we businesses; that's opportunities. Remember on every big your used every Workforce, penetration transaction highly dataset In customer

to a done mortgage, for Workforce in mortgages around XX% few ago. time, been in they've And employment are close Solutions and income verification. a because even was So long XX of years manually that

basis So XXX that point. we've grown

in So to underlying outperform workforce a beyond levers its in. so of markets competes bunch is the that ability price what makes unique it

we're doing going is balance the forward pure price balance. is we're always on look solutions in what be of very on point you including we it on the around we be going Your right that workforce in We right at use the balanced unique to all around How word. have. delivering try our businesses, to and value

David Togut

Great. of data. on you if growth the second a from And part of trended contribution would just that, increasing

now I USIS units data you think half indicated in of John; were driven. trended

Mark Begor

the loan enabled to verification, them I of really data income They it of that consumer of a picture they're the and they're but approve call afford Equifax which has that cloud in of which originator close of to was and that get individual make is want XX, we an trended is This a XX the about to really trying $X,XXX them They roll mortgage in on that months we what the a array out wide talked businesses. But employment mortgage loans, is the working and them. of allows costs. they're solutions. to consumer workforce more to that more can allow front not where putting think sure And to quickly $X,XXX in spend earlier, new trend. do. a costs one at it's that origination said with all full workforce

So deal, all at data. snapshot trended price higher sell those than of a solutions big and is a points the trended

Operator

you. Thank

is question Next from Wells Seth from Weber coming Fargo.

now is live. live Your

Seth Weber

comes you first strength down question. anything out it new little Thanks I guys. there reason call versus your looks ask international And know because from the you'd in the morning, to the margin quarter. is and of introducing -- mix products? talked why a I Is second about taking good quarter. either ask that bunch the is Hey, for about like quarter I wanted margin regional in I there a guide the sequentially the a bit or

And what's international starting ramp margin. to it's call out trying maybe understand going so there. to you'd Thanks. your expenses are or migration I'm on cloud just If on anything

Mark Begor

Sure.

the good first we very see better a Pacific. regions where of Not were very had in revenue obviously you'd want be They it by term, good in driven we than lot really expected better normally margins performance to expected. them to Asia and all and expect in quarter we really stronger but than So for revenue was strong revenue performance performance, the than long example, right? good

slightly in then There's to is margin is So I in go revenue. the second continue of international. what that move generally just stronger related year, quarter, and performance that's across than There from It's the incremental the we But see they certainly indicate expense we expecting in some margin expected. second quarter, we weaker had we as rest performance quarter. did along performance them better the speaking, really we're second described first the some improving to the -- transformation. as the gave regions, think the and think as with in margin in of and all I you expense migration through there performance move movements as to through to

Seth Weber

then apologize of kind I what are expecting -- guidance half year back give just I your you. that's kind And of embedded of if the of Thank rate you framework but kind the Okay. -- you this, for interest what just did in your missed guys

Mark Begor

to but If I'd different Yes. that, I we said in a to no, I do expect probably, it be able didn't. higher be We think inflation, Feds was job just we the expect we our of that. put slowdown that's guidance in sticking and the with and February we still to back we're higher in that the second why be half and it telegraphed

Operator

you. Thank

from Next question George Sachs. from Goldman Tong coming is

live. now is line Your

George Tong

the business EWS Good outlook? achieve change going Hi, What most and to EWS morning. change within trends does full-year you XQ thanks. non-mortgage non-EWS, do XQ did to to your where volume volume from how need see growth in

Mark Begor

breaking if a speaker. you're cell on know George, up. phone don't I a you're or

about and non-mortgage again? questions your Can I around didn't you but try believe think growth, it. hear rest the of it's I EWS I

George Tong

need going EWS change non-mortgage how to Yes. Basically basically growth your see to trying trends XQ where we and saw outlook. to most to the achieve XQ those full-year evolve in non-mortgage EWS

Mark Begor

Yes.

think drivers the XXXX. non-mortgage in what EWS it's I that of So around in

First, on pricing They in is and basis, early growth that's action a through year. to of to going obviously kind lever so growth going benefit did the verticals, all positive. record the year be a the

north quite XX% New with been seen have their product Vitality. rollouts active you've of

level at good of in would very talent And to is for of but strong you growth, performing think the we be going then given the if strong we We've expect Solutions. business well What be for growth service particular stronger delivery we pretty ago add, think our you Government to verticals, to the growing going than where framework years that Insights, state underlying success expect a meaning in that social the Workforce couple long-term down, we're that's go a had data talent the and into we of some XXXX outperform we've guidance business using market to have driver I very market. to meaning specific Appriss bought John? non-mortgage. be for

John Gamble

No, I think you covered it well, right?

Mark Begor

Does that George? help, Yes.

George Tong

Okay. outperformed in And Got thinking a then your your full-year about by you that's there? helpful. bit mortgage helpful. XX Yes, you on mortgage, XQ Yes. inquiries inquiries. guidance talk the about but you for points, guidance That's mortgage it. Can little your maintained

John Gamble

Yes.

we're took inquiries we rates. they but our better not mortgage is what at a And current certainly do look -- were So better. points we we XX quite quarter, run first take in the

assuming So as March late sorry, we April, the seeing, took year early we -- were took run normal them volumes look April just of a at look we a level We against change we normalize at then and late those. a and inquiry in us we're for the seasonality think based mortgage And come no meaningful year. Morgan market at XX%. for in what to is We'd dynamics. about the in that, showed -- we down on overall come going it

that's how to that market. a look, and try the So take we how we measure that's

it's going said, hard forecast what's rates to broadly. Mark interest or As really happen to

use a think seasonal and patterns try that and down what leads then experience about our seeing current normal March on based XX% year. the in So And to early we to late April, we're to for full-year. we determine

Operator

you. Thank

Faiza from coming Alwy from is question Next Bank. Deutsche

live. now is line Your

Faiza Alwy

Yes. morning. Hi, good

question So revenue. first, just a housekeeping mortgage on

that Just a just that how know to origination, X%. inquiries bit I you revenues clarify thinking revenue seasonal down be overall about this expectation. mortgage you're that that want clarify are tweaked to expecting patterns but want still you've around to little

John Gamble

on originations but weaker And the right? that expecting be USIS than we're seeing said they'll we more it's the originations that mix. that that a seeing inquiry as portion impact X% just lower and in that. the of increasingly And USIS Yes. mortgage weaker, So volume impact by trended That's are do EWS weaker or driven question a to fact what fact despite specifically slightly at products. or negative least of for more better by and able to the partially we're originations down we offset big maybe of principally impact said. -- offset and not really around not change negative XX We last mortgage a it's originations the

down negative. X% got maybe So to that's we more or how slightly

Faiza Alwy

is in know, lenders to talked expect and you're from about now been we curious score around couple the hearing Understood. as which next how what there's credit regarding year? play then this models, quarters I'm that implemented And change ago you the XXXX. XQ FHFA being you out

Mark Begor

hearing not much. We're Yes.

we've that to There's implement what credit. meaning the The the to if reports they I or about access industry provide make regulators as credit the this. when how to is As more sense? still many announced was think it figure going does of said implement three trying times merits with change and out actually and discussions that still

that's dialogue still that's a So happening.

two, not implementation, it'll pull so-called the Even quarter pull to impact it'll be, three three to the today. with mortgage take some first files. can still It's credit time whatever mandatory originators But to implemented. pull it's be mandatory

Now it'll mandatory going forward. pull to two or be more

the database. be So our think And can't utility something versus you utility I file proactively really of we've our aligned new of cell our of know, timing phone file elements that as cell competitors. has rolled the do the then but our delayed. that's with value phone this, great, implementation in data to not will was likely also scale out credit It's the drive it they going the because mortgage

we're our forward. to being going more position So trying as file in valuable

you two to have and the is scores just files credit credit allow And three the FICO last FICO revenue drive there's us think are the versus predictability competitors, between two approvals. that then enough maybe will they to scores to as and -- is to scores Vantage. between a thinking guy from there be what good scores, also a is increase one. know point, two And and like drive I it's credit the there the differences to access one our go two going -- to score also one mandated And for score us being and that's is credit going

Faiza Alwy

about Yes. know thinking can our you flow, factors as ask on we of -- and own other can give be you give Understood. of If model but cash quick may question mentioned I us you cash. cash a just guide that but I some us the you to CapEx, sort we don't should flows? John

John Gamble

and so. you also last right? tend obviously, match, Well, you like compensation So pay the And cash tends our to first year. right, every did like move the improvements our tends quarter, of in on the covered our our to capital we quarter, you through to capital Generally this the year, that look saw flow you XXX(k) that year we're you've earnings through the make year, be benefit we in the programs the year. we focus a rest flow speaking, move year, working continue our in and something right? we capital make as at see as year, working Obviously, capital you then fact to working is this quarter impact to cash accelerate as like expecting negative seen And more much we did to of on. spending, because continue programs out like first negative this first you

Mark Begor

goal talked EBITDA we've used the come lot And expect next on margin step again then that'll from now the to go XX%. flow year. off or of cash our we that -- you XX% we you're the given haven't And guidance, also but to our for end modeling to year with if more And from XX% lot stepping for be actual XX% think flow words free year. the is call into and about down back XX% I at allocation. CapEx as generating earlier and the of exiting a that to about EBITDA we how point a guide we exit there's we but generated capital year year longer-term, to XXXX, cash XX% whether of that we've the know obviously don't XXXX the the course margins,

X% think focused new products investment will the will going come mentioned more long-term revenue we've John which being of As down transformation. before forward in and the company, I about given guidance versus our I on earlier, CapEx be cloud CapEx of

We from bolt-on X% add also in our have long-term framework of X% to to M&A. revenue

utilization. the our you return cash flow. quite So shareholders buyback intend be of and we that'll meaningful get time. But as excess be a dividend be cash to there'll XXXX to right to through free and XXXX, at free out element That'll that

Operator

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

Trevor Burns

any Yes. Thank if Thanks for questions. everybody's please And follow-up time today. you.

Operator

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

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

Equifax (EFX) 20 Apr 232023 Q1 Earnings call transcript