EFX - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the Equifax Inc. Q1 2024 Earnings Conference Call. [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 Thanks. conference today's call. to Welcome Trevor I'm Burns. today Officer; Executive me Begor, Chief John Gamble, Mark and Chief With are Financial Officer.

Today's today Calendar an be and call archive of our in the recorded, is IR recording Events website. tab available in of section later IR the the News being will

XQ tab making materials to the the of Presentations materials call, Earnings at IR can These that XXXX Events website. our the labeled During reference also Call. we'll are section News be certain be in Conference and found

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

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

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

Mark Begor

good and Trevor, you, Thank morning.

Turning X. to off XXXX. Slide We're in strong a to start

of slightly our EPS a the X% our of well framework. high share of high adjusted revenue reported February were of guidance. and was of above margins at EBITDA was quarter $X.XXX the And our $X.XX above up First billion end expectations. Adjusted end XX.X%

credit in continued expected, revenue mortgage against in in revenue strong was was that our strength new and XXX better where mortgage than Total products. than were and mortgage the points The basis up XX% X% mortgage stronger XX% revenue inquiries prequal down was USIS, in expected. quarter, U.S. up performance

our EWS expectations. expected, mortgage revenue slightly with XX% down at product and consistent slightly driven lower-than-expected than offset revenue principally inquiries were Credit mix. customer was and by this was down XX% per inquiry by and better

which non-mortgage quarter, revenue X% which Non-mortgage represented organic is total expectation framework. This in below currency businesses, within revenue to growth revenue quarter. our revenue non-mortgage first XX% was the revenue of global constant had X% XX% growth currency about of well in strong our slightly X% was Our X.X% long-term growth, constant growth. the

revenue in weaknesses some XX% management, expected. growth than BU the EWS and and expected, was year. decline non-mortgage in more strong about revenue of government was at and processing weaker good At principally down government ERC rest revenue ERC Employer and very talent. than XX% up auto rate and in $X a and the state was a quarter Verifier offset slightly and debt run for XX% level, stronger than is by growth rapid of This driven in a of the strong should claims. level at driven a we in now a that stay expected by million under delays WOTC by

the by to remainder be expect issue. submissions completed that of we but this accelerates the revenue which the have this of the WOTC timing requirements quarter. in creates required federal will not late validate And year, WOTC the a first WOTC, quarter, to most state begin backlog XXXX. turning our and processing that completed revenue the dampened clients revenue claims, have states process to to a essentially changed states to impacted last For for This as WOTC changes states be the yet in in

forward, growth revenue, we in in up of Offsetting quarter, including declines to low And single-digit ERC, saw mid-single-digit remainder for going expect percentages XXXX. the and the employer revenue. we these I-X be onboarding

EWS up basis XX.X% EWS points operating strong our and expectations total, and at stronger was than X% up XX at adjusted revenue non-mortgage from overall was revenue X%. And strong over margins were performance. leverage In EBITDA EWS

very a against quarterly had XX% strong with revenue decline. USIS market its mortgage quarter X in XX%, years, up growth revenue even highest the

As expected new our I and stronger up referenced than XX% pass-through market earlier, mortgage and solution. and revenue was prequal from pricing

was up weaker was revenue than X% expected. and Non-mortgage

And and banking auto. decline margins in bureau Solutions in up Although third-party saw we declines and and points quarter up EBITDA our in we expectations. adjusted were double-digit to and higher in -- than had XX strong in in lending, Kount, a basis mid-single-digit telco very growth sales mid-single-digit XX.X% the double-digit USIS Consumer growth low about and were

constant XX.X% and delivered by currency revenue Asia-Pacific. lower-than-expected XX% of in margins, constant up strong our growth, offset growth the in was from revenue slightly acquisition, impact growth expectations. excluding International the delivered X% adjusted International of which above Europe Very Latin our America dollar organic and partially both EBITDA expectations. were BVS growth

As AI you this new side the year can innovation. priority added slide, a we to right-hand see from focus of strategic the on driving

leveraging In of in were exceeded models of being NPI this with and with scores the Cloud machine learning. with and our first scores execution data, XX% beyond. XX% mentioned a is ML and our and Equifax in built EFX.AI, focus Equifax goal XX% a using AI and of of capabilities, for new proprietary this Equifax big goal XXXX new our quarter, As last and February, models year year. we built AI and area

a EPS $X.XX billion maintaining with adjusted midpoint of XXXX guidance We're our the revenue at $X.XX share. of and

Our the February. deliver top provided us top our in of the the revenue confidence range end end the the ability strong range, above with of guidance year to EPS gives we at and full first quarter, in

over assumption credit at about constant inquiries is guidance the mortgage the current And We growth on XX% with expect run from rates U.S. with strong non-mortgage levels U.S. full XX%. market down our dollar of based revenue that year continues consistent XXXX.

to low This levels lowest which bottoming of more results lower overview their remains levels at the consumers than positive want what XXXX of I turnover or is unit a in at Broadly, economy than for roles seeing back brief from there's of Employment the remain cover of higher-salaried jobs. pronounced and historic entering and consumer. in provide unemployment, lower-salaried lot were with X Hiring levels U.S. hiring February the for the resilient. customers. and consumer last Employment detail, our years. is year. at mortgage in levels January our and in market, change with outside customers we're and our February. not a broadly in view a U.S. Before I business hourly

above levels. delinquencies for and of levels with XXXX about And historically above levels. card low credit rates consumers, auto card less represent delinquency rates X%, prime prepandemic at are delinquency auto Credit stable which than of above XX% auto the but and subprime continue subprime market, to pre-pandemic levels remain

we've As financial before, it's good consumers which Equifax. for that, to our customers are is have for discussed current good largely when on and our working their they capacity obligations, view keep the

X. expected, difficulty X% to down as mortgage expectations. inquiries Slide credit Workforce EWS revenue our XX% purchases be fairly expected. down have the although inquiries slightly as continue was homebuyers quarter, behavior better were below at continued in to Turning than revenue slightly to strong. was than completing TWN XX% weaker while up USIS Solutions shopping

in which have by rates records, into the price XX% of were X%, inquiries TWN revenue our Relative and February was February. implemented growth guided the increase fulfillment below benefit January to by to the Our the due mortgage EWS, se expected. we about guidance, as outperformed in stronger

events. However, by and these a were offset partially in customer principally product shift

to and result of XXXX, second XX% year the As we second first half the in mortgage the the at we expect look about levels record quarter growth TWN outperformance remainder of outperformance. quarter from slightly improved with up to

the from solution. EWS, last outperformance the we year data of trended XXXX, For as Mortgage at our we 'XX the saw lapped we XX% down about expect which year higher-priced be full XX% significantly late launch XX is of to mortgage

EWS Non-mortgage of over revenue, long-term of the above Services XX% delivered to top strong very framework our the growth revenue XX% represents was growth, XX% also and Verifier which end at expectations. revenue, XX%, Verification of a

and largest with vertical, new expectations pricing. outstanding our for continued and Government Government, of and state benefited revenue contracts, Verification record which both our quarter CMS than stronger SNAP growth. now our revenue expansion is Services growth, contracts, TWN was XX% another had continued

continued redeterminations growth in the in with government expect throughout complete principally quarter. stronger We CMS first growth rates post-COVID XXXX half the as in first

second expected about and flat continue Talent which weaker which as into revenue, we March our February. in the Solutions quarter. consistent we with was January saw which through slow than and was saw the very both more volumes expectations, to down revenue was expect X% quarter,

the lending from growth our fintech debt our in by and strong driven 'XX headwinds by X% auto was in slightly pricing debt was second management record of declines the in This and principally growth lapping in lending revenue card. the consumer pullbacks actions 'XX. first we're we lending as and consecutive management as growth in quarter. quarter revenue the strength saw is quarter revenue businesses, offset and Consumer Auto

discussed Employer to for WOTC As referenced decline was in earlier, I reductions. Services and compared ERC February the revenue about X% XX% we down

up Going of ERC, remainder expect digits employer forward, low we to single be revenue, the excluding XXXX. for

like in execution, continue non-mortgage adjusted strong expanding be cost Workforce good XX.X% margins high-growth to continue and verticals, Solutions products; very TWN our government and new grow records. talent; invest from to to growth, of EBITDA revenue we while

As mix a the Employer a of Solutions are reminder, revenue, W-X first seasonally ACA higher in principally quarter. EWS lower first quarter from and margins from

February. additional details and X in fast-growing Turning our to EWS Slide provided vertical. discussion TAMs on We of expanding our on government

slide, integrity, side million supporting the the win-win benefits Solutions, and of we're digital social service data some to Workforce Americans a needed parties. On for deliver incarceration and accelerate all over federal employment that the income, outlined left we help agencies to program ensure time XX government the with agencies of

$X has you the middle of of over progress in of government see with X-year a EWS slide, the vertical CAGR XX%. TAM our substantial made the time, the can a in penetrating short period billion And

vertical our to level, sales penetrating makes with enabled differentiated strong easier TWN resources technology state our record cloud-native We data, our expect by and individual capital to our for that federal the EWS product to customers continue significant rollouts progress government growth, additional making solutions government and system-to-system new consume. from integrations incarceration

to of contract experience government the contract SNAP efficiency extension billion in operating year's and and quarter, we business last this examples redetermination helping again and the is application 'XX processes. beyond. and expect in in phases contract, authentication clear strength improve CMS The the growth vertical new their SSA and strong future was EWS government are agencies million $XXX the of from of recovery various the $X.X how EWS own Our consumer

signing and additions Slide EWS payroll X. new strong quarter to of record Turning another processors. had new

are agreements payroll During the one processor signed will the This to processors, XX records adds of database to contribute this added that and coming online TWN of brings set. pipeline the fourth that strong. over to in XXXX. first And large including in the of partnerships new quarter, current new EWS payroll with to X to we the payroll records data the providers for be total TWN number the signed the the half since beginning million X XXXX, continues quarter X

Both screening, accuracy, wins in government, of ability including past few advancements records card, level as well monetization given to decreased security over quarter verticals, EWS' highest the mortgage, of and from talent the has and record of processors range auto the as years. cloud-native data as to deliver time a testament highest talent service technology, capabilities, and AI excellence, are the And client our of a to the these EWS from in participates personal solutions, new operational board payroll broad level in loans. a

additions expect in and revenue these quarter. in generating quarter new come first early to We record begin third online the

holiday current In million database records, growing records over million unique the TWN the quarter. given the are now the quarter, are first about had million on up XXX TWN individuals. churn by database These XX% At EWS historic, about hiring in were last Total X%. the the in season XXX very current strong added the both year. quarter, and typical and results XXX end of X records, current million

of on XXX Americans. million In have to unique U.S. about plenty XX% grow current income-producing terms nonfarm XXX At we Americans. of database of XXX of employment towards payroll and on estimated records coverage, the TAM we coverage XX% active million TWN income-producing million the records, room over the have

revenue. USIS stronger-than-expected Slide on mortgage our shown growth X, was above XX%, to well due to up revenue X% X% stronger framework expectations principally As than and long-term their

than stronger guidance. still were expectations. are earlier, I XX% up substantially our February but was basis XX%, As above mortgage referenced our XXX USIS down points and Mortgage revenue credit inquiries down

We also strength new pricing The drove strong mortgage the product, from environment, with our our outperformance to solution. very strong performance prequal XX%. see of prequal continue the strong in very along mortgage

million, X% and over total had of just $XXX X% was in over weaker up the we revenue USIS the expected. At above just Non-mortgage growth revenue quarter. XX% mortgage revenue was than

Third-party credit in including quarter. bureaus, were sales TransUnion, the to down and digits double Experian

Excluding and February about guidance. the X% was non-mortgage revenue to up impact of third-party our USIS bureau closer revenue,

growth up BXB growth non-mortgage the down growth in mid-single-digit strong a driven bureau by was in Kount was in telco. and and our digits auto X% single banking very online double-digit revenue third-party quarter. below lesser declines declines was than again lending. extent revenue Offsetting growth less low good to and sales and these lower and in Commercial expectations,

down Marketing principally a comp Financial due Marketing IXI was down our year. below a and in expectations. last offline X% was XX% our quarter first to revenue difficult slightly in business, X%, the Services, revenue versus decline BXB

We less expect and revenue in than IXI we grow X% the revenue was full the similar to to had year. levels quarterly at down Prescreen for XXXX. marketing

accounting strong up smaller our to to growth by And offset -- and the customers new our would but weakening partially FIs, business. continue or reviews, from review we economy. declines was in were FIs. portfolio Within levels growth revenue limited see business, not a We if see typically larger in we of expecting see X% a fraud did principally risk

channels. strong revenue were in XX% mortgage stronger very up quarter from very another indirect and XX.X% than USIS direct both our in had quarter, business DXC consumer performances our good Solutions And Consumer EBITDA and growth. expectations higher USIS from margins the

impact now International to due in Turning Latin the guided X% revenue organic and the XX% and above X. America. XX% of revenue we currency, Slide was in excluding constant BVS, and in up Europe currency to up better-than-expected growth to in February constant

very local as debt direct-to-consumer America growth and XX% business. America. CRE, consumer, from Europe quarter currency local Argentina up up excluding was currency U.K. our year, strong the revenue, revenue a driven versus XX% double-digit BXB, management our in in growth in strong was and by as Brazil, Central last CRA, Latin channels, well strong

revenue Brazil a quarter basis $XX reported the was in on million.

implement businesses; platform BVS businesses We progress integration for we expect year-end InterConnect, expect large small- decision summer, our by to the end-to-end as good medium-sized and to make on this and for business Ignite, our market. year-end. implement by of Brazilian advanced and Boa InterConnect enhanced analytics significantly The combination capabilities and Ignite to platform, the to our Vista platforms will bring and our

X% in the USIS, to to quarter. on the as migration NPI track is complete to in we second they quarter, delivered the as And see Cloud Equifax their the accelerating Canada expected. expect cloud. similar Canada And to complete

Asia-Pacific to commercial expectations our volumes revenue due our was revenue Australian down principally in below with business. XX% lower market

the customers. contract market extensions we near-term to We with and conditions large declining expect first of softer half impact several in Asia-Pacific signed due to the have revenue the long-term

to Asia-Pacific were continued expectations margins of above growth revenue half cost adjusted EBITDA to management. and our of growth in the return XX.X% We this strong second to due expect year. International revenue

Turning Slide XX. to

make of We product X% progress innovation, the Index over all XX strong our a continue performances to strong new very broad-based new quarter launching across from with BUs. products up with Vitality in

for NPIs on years. NPIs NPIs includes X, -- XXXX. our reminder, And measure the of out a January X, from January dropped drops VI all out As last on X or

to a capabilities the as Solutions year to we our of drive quarter VI XXXX, Talent of accelerate for quarterly While a expect VI EFX year launched slightly product our rollouts XX% product leveraging our throughout below XXXX EWS full our XX%. VI Cloud long-term new we over lacked is large first goal in

our X% Consistent last Prospecting solutions such the infrastructure USIS cloud Ignite suite and for Services. strong for as leverage products, of new with as year, completion fourth quarter another to able Ignite new and we're quarter innovation of for delivered of to Financial and with including closer VI Ignite our cloud-native

over EWS delivered VI XX%. of

incarceration We prequal introductions I-X products. throughout expect mortgage with accelerate XXXX and on EWS and VI focused data, product new to onboarding

enabled I EFX earlier, our strategic a EFX.AI As priorities our pillar of by Cloud. mentioned is EFXXXXX

the see XXXX quarter, and middle new year's which the accelerating and learning. models, goal XX% In XX%. of can we're and using machine the were we AI using XX% that products of the first which pace and built developing ahead AI our and slide, last scores you of In of are our models new at scores is ML,

and clear are mainstream that as top line EFX for and well NPI AI new credit margins. drive growth financial to visibility a the consumers of increase expand Equifax, which create as can help innovation drive access to and opportunities focus will

I big of EFXXXXX top Before markets. cloud is inhibiting to a I expanding John, Completing want AI on of our line building our long-term technology of resilience growth and as fully innovation, few a and cloud XX% support substantially X basis annual team progress our XXXX execution which to growth turn to our X% capabilities response accelerating also to critical frees customers. new the more it from focus our of of is broadly priorities minutes margin leveraging and that NPI up expansion. points and for analytics Completing fundamental and cloud and the strategic and on spend well products our over strengthening our XX on framework priority, to and time new system as growth

with XX% XX% Equifax And in to Cloud on cloud the end quarter. gaining executing focused the New the cloud with steps revenue the revenue in is momentum towards by of Equifax remaining at reach progress year-end. we're the of completing over the Our our total

New exchange data credit, of to positive. fabric and which legacy from feedback and migrated third the telco mortgage thousands very of this second utilities quarter, will as been Equifax Equifax we've half planned. allow the the principally migrations customers decommission in to USIS Cloud has to in to them their customer expects Cloud systems the year-to-date consumer complete Customer year, that

the migrations progressing planned continues their center quarter. complete progress planned with as consumer goal exchange with significant Europe complete late is completing quarter to to of first And data the the third in of make Spain's their decommissioning for is data the second credit and decommissioning Canada year this in the to their the of consumer third their centers schedule and on exchange to half data to technology legacy U.K. systems migrations, fabric credit data in XXXX. fabric decommissionings migration of quarter. of cloud

America, throughout Latin the cloud Argentina completed we the substantial American make Chile migrations countries the XXXX. on remaining and In progress rest of expect and to Latin

And to expect as their Equifax lastly, planned, to this Australia completing towards progress in Cloud we exchange big the credit year XXXX. migrations make consumer

and driving decisioning And global Second, global is our priority application and AI are and great data innovation AI analytical an footprint. We're our across across both important in deploying embedding Vertex we're progress Equifax available and transaction InterConnect Ignite Ignite and now AI cloud-based leverages making architecture XXXX, strategic EFX.AI proprietary global during these Ignite, EFXXXXX with that Google fabric InterConnect platforms. worldwide. along explainable our InterConnect broadly systems. capabilities

of our identity combines our more unique analytics data with our resolution process And our cloud-based into enables holistic development AI connect their view faster data Ignite consumers. to model which Vertex data Equifax, through one gain for ecosystem, a For on single technology predictive and and clients, can customers Ignite, platform.

for the tied management the of driving have our is customers XX%. our sets account our Xx existing of to expanding through ingestion And faster XXX% into We campaign, in our XXX our -- of Data data the and Fabric. legacy analytics we're This U.S. over cases consumers now clients' access platforms. Single applications population -- scorable population than business greater processing and power by with data

line. our innovation EFX.AI, at Completing and along products will expanding the bottom top differentiated our accelerate of continued drive cloud expansion and with sets, Equifax new will both that data and

data cloud improving off These our and centers broader closure quarter, North also operational actions other In spending from New across million $XXX American our a plan are operating chapter the Cloud restructuring building we're We're the margins cost of our reductions we toward first the reflecting goal. on the cloud against good line. broader start controls to Equifax, our drive of intensity the of and Equifax next as and top pivot Equifax capital capabilities to from new business. the bottom lowering leveraging our entering New

And turn quarter more to to provide to quarter over results our now it second I'd to detail financial like first John and on our provide framework.

quarter growth second on builds guidance new from John? first strong quarter Our and record products, pricing. our performance

John Gamble

Mark. Thanks,

Slide to XX. Turning

quarter which in purchase and mortgage were mortgage purchase have XX%. XX% the TWN inquiries, inquiries We in shopping, TWN a transactions, stronger continue than down occur inquiry earlier completing results credit to were of in volumes down market believe continuation resulting First about process, being difficulty homebuyers inquiries. credit which generally

with both the seasonal our quarter and TWN reflect practice modified and first last from the years, inquiries X credit normal our rates last current X to for our the run to several patterns. Consistent guidance on based over inquiries weeks

inquiries, TWN trends rates that as better credit February. and guidance we Mortgage April run and in somewhat early in saw in period. late March some remain rates we the inquiry over than credit both provided mortgage weakening increased For

and XXX inquiries our the basis XX% in guidance, about 'XX, about Our mortgage better down calendar 'XX credit second respectively. points guidance quarter basis of XX% reflects and February in XXX year be to than points

This reflects guidance about the with we year. XX% quarter. inquiries inquiries TWN in first for down at shopping continuation about levels of in reflects about XX% February down the and TWN mortgage the Our the QX saw in

new mortgage we outperformance As lap expect of discussed start moderate a to we as revenue as February, prequal in in the mortgage XXXX the through move products. to we as growth reminder, USIS we level and

be mortgage the expected XX%. outperformance the USIS USIS to full down on first XX%, XQ be XX% outperformance of to the from in order with mortgage also quarter, expect about We year

saw second We in the first X% we in quarter the mortgage the up revenue expect outperformance to TWN be quarter. from slightly

to about should full XX% framework. of at long-term year low XX% be our and end second indicated, XX% half outperformance XXXX the Mark XX% about with As mortgage

In growth at XX of XQ to guidance. about billion XQ and $X.XX expect the our billion 'XX, revenue currency $X.XX to the provides Slide will Non-mortgage about Mortgage FX be revenue. XXXX total the be over X% Mortgage midpoint. XX%. up quarter is about just about negative be revenue to between is points. should Equifax details X%. XX% revenue X second revenue Equifax constant to strengthen up expected in we with revenue revenue of

in up driven Business decline unit quarter, revenue. to is revenue with and is X% performance mortgage again the And Solutions. second the due EWS as in quarter. up Services be in revenue in expected growth a again will the return about quarter X%, ERC Verifier second Workforce growth be XX% in should Solutions to expected is declines about about be revenue non-mortgage Employer the over to expected to revenue follows. Non-mortgage revenue down about XX.X%. by quarter government in X% Talent to grow

Employer up ERC, Services Excluding revenue slightly. should be

XXXX as Employer headwinds. quarter of return fourth in ERC revenue expect lap to we growth Services the to We

be of Non-mortgage EBITDA the XX%. growth are to from strongly we expected margins be be be continued to should again over year-to-year over in market are up USIS Mortgage despite inquiries. decline mortgage expected saw X% be EBITDA is adjusted up to EWS Adjusted XX%. margins X% this X% revenue XX.X%. to revenue the about revenue over quarter. should expected up about year-to-year up

revenue be are reflecting to be XX.X%, up to in organic revenue expected International BVS. about EBITDA due is in XX% margins expected currency. approaching growth. expected constant constant of to currency XX% to the is over Revenue addition be

in We to expect the revenue $XX Brazil deliver over second million quarter. of

in are Adjusted EPS compensation midpoint about quarter. 'XX flat principally XQ at to EBITDA XQ to about of an XXX basis $X.XX expected share, Equifax's saw be higher adjusted points, expense be at 'XX reflecting about increase to our expected XQ in versus is the the the midpoint. XX% margins first sequentially equity guidance, we 'XX the per of $X.XX

expenditures and with in expectations. quarter the $XXX consistent our were Capital about first million

about to We with quarter. expect year-to-year capital expect continue quarter be at for in the is a first second $XXX to which And we of be levels reduction CapEx the $XXX to year, million expenditures over the consistent million.

flow in from one discussed cash capital is free allocation in reduction leverage priorities February, XXXX we our As of expansion.

As are credit ratio X.Xx. first our levels just about XXXX leverage over required for with these nicely leverage ratings. current BBB, was believe of a goal We by the our within quarter, of end BaaX the the year-end levels of of Xx

we to to dividend begin significant as As to to as and share increases through cash return continue these we shareholders bolt-on flexibility do achieve well to levels, will repurchases have acquisitions.

earlier, These adjusted in cost actions are good As higher of credit shutdown completing XQ the sequentially on which Mark will our and significant will to covered very in legacy systems of significant progress migration and deliver of exchanges we consumer Canadian enable U.S. cloud, XQ. the enable in allow XQ. benefits XQ EBITDA second and half to us which 'XX, margins and EPS making

full guidance, of February. constant year full our currency center growth XX% year long-term overall is the framework. in provided constant about Consistent organic guidance growth February unchanged revenue X.X%, growth the organic is Slide XX expected our to revenue currency X% we guidance, provides with the be XX.X% from XXXX which of our at of specifics to with

grow grow that to and is better stronger Total mortgage about the decline points from than to in grow revenue organic February. expected now February negative guidance. USIS USIS XX% revenue our is solidly framework, to reflecting than below than is more over levels is EWS basis is the XXX revenue slightly in discussed over Non-mortgage should our revenue although the XX% This our long-term growth with over we mortgage expected dollar FX revenue mortgage Total inquiries XX%, within XX growth. in constant about average X%. of points mortgage reduction framework.

slightly guidance. also have adjusted BU We level

reflects This of X% EWS XXXX. in We expect XX transactions. better about about than slightly, underlying deliver Workforce Solutions to revenue revenue mortgage down mortgage points

the revenue The deferral are weaker February decline guidance revenue by driven EWS about earlier. and in due non-mortgage referenced the more decline expected rapid to from ERC grow is expected performance verticals WOTC slight to in XX%. employer of Mark

Excluding is that EWS support pandemic XX%. ERC revenue program about non-mortgage revenue expected completes, in decline the significant growth as

the order high above X%, over revenue inquiries. the growth from expected on expected mortgage end grow target expect in grow than expected to X% points down decline Mortgage to over the of credit XX of about to We the XXXX, Non-mortgage stronger deliver XX% of revenue is revenue our to over guidance. in in February USIS is our XX% long-term growth X% X%. X%

expect identity be services, growth and to by FI. commercial, non-mortgage continue fraud consumer We strong driven will and

first was credit in business expectation, DXC the revenue. in than sell the impacting overall saw substantially. weaker which bureaus, data And our we As the our auto is expected to we and we our down weaker market quarter, auto-based credit than other revenue,

expect to to deliver in with of International of continue revenue XX%. currency XX% over constant currency about growth We constant organic XXXX growth

we As in of by inflation revenue February, seeing about X are overall International the expected growth points. high to in discussed we are benefit levels percentage Argentina

we adjusted the is at will have We centered assumed the offset guidance guidance of more than revenue devaluation XXXX inflation EPS uncertain, in in our midpoint Argentina currency planning. believe Although and our our both that ranges.

average Turning And XX% the XX. historic is below to in levels. on of mortgage Slide its as the inquiry market February, U.S. discussed order we

mortgage to into current At of share of EBITDA revenue gross none reflected margins, move we billion towards norms, per our a billion bottoms mortgage presents over $X our XXXX market moves over that is deliver tailwind P&L. the million of and that our a opportunity to its over the historic and would in revenue $X $X from for guidance. this Equifax, As of annual which will mortgage and expect headwind market recovers $XXX

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

Mark Begor

model strong long-term constant on reflecting within delivered execution Slide Equifax priorities. the non-mortgage breadth another framework, the Wrapping Thanks, EFXXXXX our and revenue with X% XX. business revenue of John. strong strategic was Equifax growth, to dollar which against X% and our XX% power up well growth quarter

XXXX capital comments, and As the cloud reductions our beginning portions I of America well a my and expansion is as mentioned for big priority complete a benefit result in cloud transformation technology intensity in markets, global at in of data our as key North as is our margin transformation. will which continued to and significant our

XX% as next a so goal year. in with fully X.X% XXXX, move CapEx complete towards exit by is on allowing with exiting we team revenue New revenue the expect to $XXX us XXXX of in in revenue million milestone to focusing our long-term we X% reduction Equifax can Cloud move about to the XXXX As cloud, towards or over And Equifax the under decrease $XXX of further big of growth. CapEx of we million

Aligned way products; consumer the ingest our we is transformation with drive to Data cloud changing scores more higher-performing in and Fabric, care models, products to are strategic investments our develop centers the cleanse priority our completing EFX.AI. AI innovation efficiently. ML operate data; our Single more allow and and in build through and us new

on are EFX.AI. with We offense

and are New Equifax the pivot entering top of we Cloud line. new as next New chapter our leveraging drive our the bottom We capabilities Equifax to to from cloud building

leveraging our that convinced Fabric, are expanded deliver Single flow EFX.AI our future. ML, the and growth, in higher and Data Cloud, We New free cash market-leading in Equifax data will sets differentiated margins businesses, and

margin XX of expansion XXXX, points basis We on long-term strong focused energized of future remain about quarter growth energized first annual the our Equifax. to by and more the with in revenue we XX% performance I'm New the annually. momentum even but executing as begin our X% delivering model,

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

Operator

Instructions] from is Manav [Operator Barclays. from coming Patnaik question first Our

Manav Patnaik

on just than a lot years, you was had because visibility a you there question have actually more, broader that guided. allow still much just of But unlike I you think, that prior were, pieces beat moving by guess. I the mortgage didn't to what the better I guys

but was I you So understand visibility think how can quarter in just other areas? APAC. ERC these Like have much auto, exceptional, just this just curious, you us help obviously

Mark Begor

we I We a you know, do, there's typically good Manav, visibility. still uncertainty. have lot as but of think

well ago, of go days XXXX. forward, using experts, looking were think XX us a we have cuts most mortgage, your know, on the you I lot comment as back in you as rate As multiple that of

weeks As ago, weeks recently people Rates there a X ago, that's June going out. cut. was still X basis I of you be ago, pushed rates went X%. mortgage to up as there And was points as thinking X up went weeks to XX know, think kind

visibility, lot framework prudent call the of it, given quarter, forward. of was first there's put a there's market. uncertainty balanced we I to in thought while mortgage still be we're it in we So around, principally lot a the And would the

things of manage deferral you company. we had or spend first we're As because beat a EWS to in and there's some the know, quarter. things always the ERC the We as change decline forms, WOTC -- in the ER in like managing

we'll economy. to thought through year, mortgage, mortgage. of at of pretty comfortable second it we be macro prudent the take in quarter was are we're it another the held we But with balanced, look and where given And we go as we kind the the and Outside quarter. of

Manav Patnaik

of low know then low EWS, you And about beyond, and going X% had year the just with guys new X% your thinking the point. for XX% that it. to you Was XQ then? Got And I or be kind that expected just be then norm, the outperformance said in the line expectations? mortgage Okay. the is in end the to

Mark Begor

Yes.

a in mortgage in of from over you had, in did new outperformance introductions, the every call last of the would that. very of EWS We've last the Records as XXXX. had we take couple outperformance principally year, couple mortgage we've of I driver price years, So big in some know, EWS Mortgage XX. are also which product up strong years. we Obviously, what

from the to 'XX of So digit to outperformance kind in teens call that's delta high double kind single down low the the XX%, of digits. or it

were that. we So kind focused of on

including which X going of us records. forward As going EWS record talk additions of the processor online about we mortgage, the midyear the come the payroll that's large to add year, to are that the we including heard that's benefit look million signed going kind verticals, balance of all to to you

continue also will benefit businesses rates hit all we the the higher those will and TWN as benefit mortgage. second EWS grow in to of half records, So

John Gamble

quarter, than our really into saw Relative mix, impacted of a lower we driven our pricing that to customers by script. was lower right? quarter first the our and channel X% our had was shift little for mix We levels. a the we customers that some in customer lot expectation outperformance first in said some as It expected, than others, and

is which the Long we've Going records. that of And rest basically think really forward Mark driven to continue. assume of we growth by mix going I term, the level as talking mortgage we're year, general, for of XX%. expecting said excluding about to look the XX%, outperformance pretty much level before for is economy EWS outperformance, XX%, like in that like something said, that we're is the the

long type So about. term, that's the of we're I level think thinking

Operator

coming is question Steinerman JPMorgan. from from next Our Andrew

Andrew Steinerman

go assumption for translate OIS? inquiries John, better XX? that points revenue mortgage credit And to does XXX Slide basis into mortgage XXX for not, point if 'XX, basis on could better the you And back USIS just growth why?

for Solutions going to give you I'm question. year. second Also about trajectory And comment my make the a Mortgage

John Gamble

OIS, into translates look as fairly for yes, at both So total, for translate better specifically OIS both core it to need mortgage well inquiries right? in you mortgage. necessarily at USIS not revenue yes. But as directly, -- So

Andrew Steinerman

just And Solutions' the the could talk other was, year? part trajectory about you Mortgage for

John Gamble

Mortgage items manage right? overall is performance I for when focus kind do. single So for again, one in talked gave line drive report, X up -- mortgage the very think what didn't think it in talking Solutions OIS. we year. it I to mortgage really is understand So we we to total the to mortgage different we So but we about we information split mortgage trying specific one what the call, for just we're -- right? what about on And in total business. tend it's of the in I on total, about expect and trajectory on as We and

Mark Begor

strong. quite mortgage, Overall

John Gamble

up the strong, on year, of XX points. right, over the XX% order full for outperformance Very

So going in strong total. we be think it's to very

Operator

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

Kyle Peterson

could some how of about we But see get Obviously, today? some your of guys impacting the different If the to seeing up like being we in end puts for longer the are for think think year, do how do about some should this auto, wanted of Just at outlook least card and kind thoughts. takes business higher how mortgage and lines? pressure. you you things areas guys

Mark Begor

I rates about missed half it the first the first Is does Equifax? stay for of longer, higher how half, impact if your Kyle. question

Kyle Peterson

Yes.

Mark Begor

Yes. it. Got Yes.

are, expecting where rates stay flat Mortgage, be come expect they think I XXXX in get. in mortgage, this obviously mortgage year, still down. you rates So would market But if XXXX fairly we like be to we're until down. mortgage to

time we a And there's again a Over John or would tailwind frame, call I we're normal right I as think at big year level, longer as in high what rates more to get what believe, XX-plus 'XX, a 'XX down it's whether 'XX, know, outlined now. you mortgage. that

auto. continue. been the we rates. in rates subprime really we But Those of our non-mortgage businesses, end will, some you There's broadly, haven't for would payments, bit rest near-prime. and standpoint, are of a lower in expect of if little impact we're where are that from performing impacted rates consumer the higher For that by to a well and pressuring

at So Equifax, of when point we're kind and term for framework including confident of in company, and to XX% that about the X% the or M&A framework, of X long-term of that's long-term kind long we in think kind a still of our committed rates. current

down pandemic. whatever X levels from have, then the where if I down to they over tailwind And characterize to normal. COVID come back us come whether as come going real some go they're don't of the the believe, any them below to down, a benefit, going we of or to term, But its to XX% X.X of expect we the to rates level, kind we've were long if think as or what mortgage as recovers we're during they market would got

John Gamble

a And just as reminder.

are. effectively, guidance assumes where said script, XXXX, at For the rates, guidance reflects current which right, current So right? rates, as we our stay our is they run rates in current activity,

Kyle Peterson

follow-up. consolidation thoughts to on, your in is I I And a any I of know Got volumes? at space. we've if wanted talent change then pending or now. some of just the in get that's -- helpful. dependent seen just it. outlook least we But on your the is consolidation screening do background know That's right strategy your see and just some on there everything some hiring Or pretty products? there, TWN much Appriss some within

Mark Begor

through navigate going what know million-plus able I all far to belt Most is, super on quite where dependent Obviously, the which strong. think us. it about collar been the as low. We've side. -- as white impact open collar keeping as is Obviously, have are Yes, on they X hiring hiring companies an I volumes now. don't tight volumes economy had volumes. hiring on wouldn't are hiring blue a is right still say it's the jobs There's

a very still there's side. hiring So vibrant from economy the

grow. As as TAM we just a opportunity of lots far there big to see talent, with

to strong continue the we with relationships you We relationships. players, those have X including top expect And all mentioned. the

got a using We've to talent penetrate, in employment verifications. of out space lot very if still to will, new white base. aggressive of for continuing background manual, screeners us meaning are that product There's pipeline the you roll a we're that additions

So that's an opportunity for us.

around So for future we remain very optimistic vertical. talent the the

the And are collar tailwind as we'll expanding their rates there's it and you from the point economic white come in side, -- perhaps people in out, some when would call stabilizes side or some down increase activity, when get I hiring, as market businesses. the

XXXX. be monetized. products. jobs took under quarter are things hit And And the I the talent. there. talked that continue additional some records adding the added to do records result to up The in now The going our records. we'll we be are in X January, of to about then delivering higher And we in million price we'll have new again able we're hit course, X rates to that rates in and control, million

talent. So about government. we're We're super optimistic optimistic about

which with too. is lot As performance XX% the in you quarter, of there, -- a the know, we see opportunities

Operator

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

Heather Balsky

customer I about bit us understand if the of little come you're up And of you dive mortgage hasn't EWS in customers with. market the of I in? of kind And about just better. mix it's rest in is you're a customers volume. the more is it of performing? that new for a that can Just versus you're it year. how And guess, the drive wanted to talked shift. a go past. little sort terms back bringing what that And that that shift the is working bit And something, the help curious thinking in Or to a of how could outperformance in the you function

Mark Begor

are the of now specific a market low bit was. volume mortgage much in all that happen above, from activity, but it's down It's quarter is a the levels little of or at completing month. XX% on some customers changes where There how it a really of the

And we that it call see pronounced would I are, when the numbers shifts in that, smaller. more are

is have the one their you to originator their point one perhaps in at mortgage being marketing, do, want more aggressive they that If time on spending. originations

is this As you lot -- of most know, a it's of digitally. done

ebbs So kind there's of the what will it. ebbs and from flows this particularly activity seen, we've flows and of into in on originator put that market a mortgage

what John, don't else I you add? know, would

John Gamble

I really and revenue. remember, our a on large So it points, would several point not of large a of number, isn't outperformance just add, got outperformance number just can to shifts mortgage of is right? a we see

outperformance not on, here is we're movements and small I percentages bit unfortunately, right? what can some inquiries. think, in ended outperformance, right? we And impacted seeing we saw little So with And underperformance that about talking a that's but had that up of you we large revenue some that's had and why had we be -- in yes, by here, really you're what revenue,

improvement level the it records speaking. but we this mortgage The large to covered already, products which real the expect consistent business we as of in through why continued is makes of year, Mark go -- more growth valuable, So overall, right? see relatively in revenue driver the here which is

so good feel going the about the rapidly. adding fact that records products offering So on we're what's because very with we're of we

Heather Balsky

That's And to margins. shifting question, follow-up a as helpful.

up your take did on the inquiry mortgage You side. number

through. how offsetting what EBITDA take -- for outlook year, to the and you give guess So flow-through and inquiries that. I be just in But so on your maintained the curious just there higher the think of terms full might

Mark Begor

Yes.

in a my -- a I Manav's I have visibility parts heard it's first response earlier. lots think There's had lot don't of business. of lot if know I'd question. to Look, the quarter. still we of with the of comments I start you

pointed I was is mortgage out. think less as visible, side the

cuts including it XX thought in the weeks disappeared. the one world be at felt days a in ago, ago, Two rate the June. of all of us half, June thought would least there like one there'd second bunch be --

strong, given with first we pleased EPS what is our saw of outperformance. quarter, So of then very we and being guidance, the were midpoint it's revenue very the at kind which as

to inflation prudent as quarter through have give think We any we'll think quarter to visibility. second we as said, the I year of more characterize so-called we laid We'll But full again in through thought more guide at of last when guidance and you that we the get would it look a it out, the little bit what at in as don't as good and us the I outlook year. months that a we year spike couple visibility up we're is. earlier we in second and an quarter. update you that get set was have expected hold And confident time. I give of what we'll second delivering

John Gamble

Yes.

talked the expecting North businesses bit little go we our through in margins It's as about. that good look to feel Mark we you as have in coming meaningful guidance, about are the about We our America. obvious fact As year, I consumer a in reductions right? against we systems cost executing those, major decommission up. talked

our declines of go revenue. happens, be margin-accretive in It quarter to market especially We that mortgage through as just just to that So fourth a you've percentage tends It's the year. generally also remember, -- we revenue have improving every we the an got for mix of year, as as us. happens right? as

that's So And doesn't EWS margin accretive the high variable go as us of with quite we because very revenue records that in executing below plans. is very it against for expense cost. honestly, addition our obviously draw

to full good on our our deliver numbers. So ability very we feel about year

Operator

today question is from Oppenheimer. next Our from Owen Lau coming

Kwun Sum Lau

go talent. to to want back I

level, below so? Jan and better driver Feb think to but February the the was, the that similar think, understand in volume mentioned and and number confident maybe to volume want or second and trend you quarter to expectation, you that of is makes be March just would weakness in continue. the I I expect what I March Jan you that

Mark Begor

Yes.

attribute talk kind on. of of customers open tight collar the more most we for workers kind collar. versus to are just January, operating environment is are call that know, it, background them. people February, hot, issue. screeners, our softer white when a you Again, blue -- there's overskew jobs which still, meaning collar companies we the operating As looking very than Blue That's not I would to red we

level. the February. are that what and And saw stay try economy, like uptick companies in Most watching we in be the March, a of thought January, back was did in as that continuing to we an see wouldn't that it But kind we and to and we we really to we recovery, April. I current that's off We year operate closer trends see, expect big XXXX. exited going to call just at still

Kwun Sum Lau

then revenue your to migration, us And helpful. cloud growth and from that And to XX% very translate for expansion? of How year, uplift That's you should this your end that into help XX% full the it. that guidance year we margin quantify you can by -- think Got we cloud how can revenue and of how have already? I revenue much the again? baked

Mark Begor

get We'll given haven't Yes, through our certainly do for this we Obviously, guidance. as year. XXXX guidance that in we yet.

second middle benefit year. of the We of then half have our expansion XXXX. year we decommissionings USIS expect in there'll in XXXX. complete those be cloud completions of -- the as that kind the this that's assumptions cloud some the to We we carryover transformations margin into And like built

basis go same And XXXX. frame. the And in year. some a go layering will time some transformations, Those cloud of provide benefits we through international monthly kind start those of of on we into as as kind this

of given us one the is margin share The there's going customers happy side stability the we've a benefit multiple cloud. the to So -- standpoint. to our We're top top think line some I and be with from partner side. the differentiated more layers going a always-on from to we're around is how to line cloud

the uplift cloud. data product coming the in innovation new in from seen differentiated already our You've

their So to their USIS they been businesses cloud, over going And we year last forward. accelerate as constrained and like that new change, by going the migration to cloud expect continue. product the complete efforts would that rollouts have that's

other team half So earlier, we of said competitive going year in is of just we to what the the ability growing focus the towards I And have the XXXX to into second a get optimism comments my cloud. standpoint the from it's as a do and benefit the lot complete the as for big as on we business. prepared of fully

take really can been we've of benefit focus that this into into cloud big on years, X-plus advantage cloud, all increased the It's for growing doing is going differentiated operating our we us data and heavy completed to almost and Getting last milestone and AI the Over a a the the go that's our we to ML, 'XX company half business the as transformation. heavy, second big, so of lift. business, beyond. and

Operator

question is today from Shlomo Rosenbaum next coming from Our Stifel.

Shlomo Rosenbaum

And mortgage about the bit a you prequal talk increase. Mark, product. mentioned little in USIS? then outperformance pricing FICO can new obviously the the There's you

little terms for prequal? about of in of new you like bit then of And a magnitude outperformance, that some parse have could happening how with I the impact the follow-up. FICO we a us? the kind products that think Is Or the should Given it there? overwhelmingly

Mark Begor

pricing outperformance. pass-through The piece a the mortgage Yes. very very, of is big

meaningful on We the prequal to X. have a action. piece, solution, of price is and new down we're the the haven't that's in But that top the shopping used pleased stage, very the broken

continue is should this to example us that as solutions an You new we bring to go market. And expect to forward. of

on us what and look do think continue and well they to to get new year pricing there and I forward that we of as our beyond, 'XX as as see all what FICO we'll into from as 'XX focus decide and we partner have beyond to solutions XXXX. like from to our And will looks 'XX standpoint. next And

Shlomo Rosenbaum

in puts John. expected and be Solutions takes are mentioned maybe to permanent Some surprising what a can then Okay. mortgage surprising because you kind of on parse like the there that for say than kind saw earnings bit stuff Workforce Could the people, hoping we I'd XXXX the would be this more you that the of over in that from despite little better? go sounds is impacts. going just one that's to of inquiries out to X% X% fact delays just just most were market the And And guidance the rather report. more of I'm

John Gamble

Sure.

right? related we for some the And So about, down deferral, lower year, speaking, assets principally ERC to of items a lower point reduction So but principally all is I the so talked it's is It right? that of the certainly full WOCT generally turn is XXXX. the right? for because the think And doesn't year employer, employer. year, in

On to shopping gave mortgage, when a was. guidance expected better we be in not back we to did in we slightly saw of first said that What in on indicate February in performance mortgage we -- inquiries, we as we're seeing right, is the had substantial kind XXXX. it quarter

it assuming entire continue for now will we're the year. So

in right, to, that about. terms level the similar of just weaker even expecting we're performance made that inquiries outperformance, are little though of -- talked And a they're we

affecting that's So mortgage overall. revenue

strong, really be expectations outperforming good. is revenue overall. Verifier our incredibly to Non-mortgage continues very Government very, well, right, performing

recover. actually had We of expect of in P&L. to non-mortgage financial services portion fairly the performance kind good talent We the

we So about that. felt relatively good

So overall, non-mortgage Verification in Services good. very is

overall driven in they're real saw a of the offset by little you outperformance the Principally better So right? by which the that inquiries about. first we then customer the weaker is to though Principally driver mix, talked -- the year, for is mix total level by we relative quarter. being Services. the biggest mortgages Employer movement we X% even And maybe have before, gave also in driven

Operator

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

Faiza Alwy

double third-party is exactly weak and the down rest year? about for mentioned in was wanted that the of And it? should that? to we What Yes. quarter. that And ask -- the the credit this to think what's I driving you digits sales in about how bureaus the

Mark Begor

our credit in U.S. We to Yes. monitoring the to a provide reports consumers companies number that sell of credit

we including that provide to own to of sell and TU, have We monitoring. business, others our lots Experian credit

some seen But the driving that are year. That's monitoring solutions. in in first was that marketing market. it's And we X the an really on to. credit particularly other that, what's and actually know just back reports we've competitive we late about the quarter I with bureaus enough more And softness, a credit through what referred that whether element credit passed or they're just cutting in sold less don't

John Gamble

are basically we second it lower And run into those going rate, Yes. rates So to assuming we're right? assume run it's going to quarter, be the seeing so continue at to continue. we're just

Faiza Alwy

XX% then you EWS expect, of quarter, are Understood. we to should just for Okay. think, follow to in Curious I of you how that where the know up we terms government revenues question the up second sort about be still the on And around year. said redetermination. revenues. I think

the you XQ? And left what's just could talent talking for but us So of comment a about basically, think give know I on year. also about should a in you're -- then talent, revenues if recovery in we sense how

John Gamble

Yes.

think back that we that. And was what is talked outperforming is number government government for in seeing So February. we're about the that quoting you're I

very our first strong quarter. feel So we the good about government revenue, in very

Yes, redeterminations by the of March. end are technically completed

strength directly government, to across So -- revenue should through continue the Really in as the both yes, within progress to in FDA that CMS, seeing with we do areas, SNAP, states. but good also good states. really strength and then other strength performance we're decline, expand

had we expected. stronger continue we at grow a So pace to to about government previously good ability feel than our

in talent, expect a our relatively get in we back as that expecting we're just is we to February, what In it about weakness overall continue. seeing to We're feel as mentioned, We're financing the non-mortgage going to get And I and some do March. to to through indicating what year. recovery structure. mean, good go we I nice we saw in growth, back growth right? January we're

feel relatively So there good that, we as well.

all nicely. just in growth X non-mortgage going Services I again, move to seeing and we're right? small, substantial growth talked very the So very, about, performing that large the adding areas tremendous payroll the mortgage, add just those we strength now as of the in to is new overall, and year, like it's through that Verification processors, looks with in records, And like

not obviously Government but because it product to hit directly, to makes financing. adds that the what even only deepens and historical more our customers, able then talent also we're also deliver in rates non-mortgage also file valuable, our

Operator

is Andrew William Next Blair. coming Nicholas question from from

Andrew Nicholas

its ask I timeline for latest score requirements. wanted the about and credit to the FHFAs

put think February. that they out end the I at of

out couple think broadly. you impact your the in business? a with expectations Just are if Equifax your on of terms couple you kind of think months what I wondering a how the to there, since about, to of it, last impact even that quarters now later the timing spoke or later And

Mark Begor

the XB the to we has the this also the score of There's It's support that Yes, early on a on from pushed Sure. inputs in don't Vantage is still I XB, that. period. FICO including inputs a in -- year to next think understand, out to that latest or on a There's coming congressional year. what comment late score. lot add the table to what's addition in

don't our all. in to view And timing, And of to at in XXXX, going framework. our to XXXX. in With hear, see not if be our in that's everything guidance. regards happen we it's and anything expect we not It's

Andrew Nicholas

it. we slide, relative to then to additional and level I XXXX level the to question, wondering purchase. And are to to any XXXX inquiry color from you've between to wanted of you know XXXX there's go average today. relates isn't where mix Slide I'm just if that this as XX. give and Got to second I for the refi talked inquiry just XXXX can about new kind a my it

'XX, in I XXXX don't 'XX, if interest of rates. to longer refinance, wave 'XX obviously, XXXX, of a seem asked those back would time like than we because, of be it subdued for refinancings kind and the And period after potentially would get

refi? is you guess that level number? much is could XXXX more there versus that purchase succinctly, other any how with inquiry So XXXX, of provide I context

John Gamble

Yes.

been at look that that -- That have because average. average and periods, you over of mix like if originations XX% that something saw year. is that million period, obviously, it kind period on the in have XX% historical during -- available. right, something during average It's go purchased, like you you been something that was detail a on if would refi. under X.X So time would was And

Operator

Surinder Thind coming today question next Your is from from Jefferies.

Surinder Thind

question Just a here. bigger-picture

across elevated here. helpful point mortgage? this the longer-term just about is So cards, shopping. some talked color then understand how of to an trends in And relative You to at Is activity cycle incremental maybe as that much benefit rate be auto, about we it in like terms of would think universal historical?

Mark Begor

know, it is some And digital. Yes. that we've as change, in to X ago, phenomena go The probably see. auto, in you suspect just was place back if seen there's harder really the I you mortgage. to it's years level but

Consumers activity X and around virtually like years lot ago, face-to-face a digital. where more of big-ticket now transactions, mortgage, a it's all there was

a easy So it's shop to for around. consumer

So went we behavior seen have continued. into COVID. That as we the increase the in shopping still

rates that's that to look it's think down maybe don't think market it's just kind an to a And in way. there but meaningful increased. you were going at I the elements easily going an have underlying as digitally. if to believe some to look alternatives of that's We 'XX to that that going decrease in back clearly element consumers of go mortgage We shopping of there, the which continue going question, will forward, element be to ability your forward, 'XX,

were they low. During aren't rates And time it's COVID down going going before, go frame, rates where imagine are to hard the to to that that right?

perhaps X% low. time towards the that's used to when they going so end an COVID X% during shopping So X% There from still from maybe rate element rates up at then something, say and were X% forward. towards go a let's were frame what be will rates higher or significantly people of

Surinder Thind

bit realize And provide down, concerning the if conceptually should for just then relative there? I anticipating to marketing be spend were is road? sounded volumes marketing a a a of negative down helpful. can seems sense, like part not than is this the And business, spend, more color large to That's your you be it that Any that but last little that is you down quarter. in potentially

Mark Begor

basis, would what would the minimis. think -- we it operating I I Yes. normally. call we de our -- The customers again, still about sequential way on a are say was of change that kind

would -- most financial consumers cut marketing there's And the economy worried like that's back they're is businesses, they're it. around products, just see or prescreens which marketing So that the about or We or pulling not haven't consumer. to our you digital because where of seen back. where

Operator

Zhu Autonomous coming is Kelsey from question Research. Next from

Kelsey Zhu

be Verifier, mortgage use a to On Fannie bank that on to stack able announced will single last asset assets comment XX-month now data. report validate utilizing lenders month one on and

impact So this on have will view get volume? any just Verifier curious your on whether Mortgage to

Mark Begor

They that hard We There's -- we friction less they're seen there's typically alternatives in the can mortgage used of more it. they don't process. a be various And been have And so. are consumer. -- have that make the work data. think mortgage sure the generally haven't originators picture full and to getting

And data. instant then nature our of is the other element the

grow of the expect to and inquiries TWN and wide and a haven't we that going employment we already don't very mortgage in going to records, We saw data vertical, there, the have we continue records. we're hit from income we forward. to as higher change And we then expect as one a add we're utilization getting rates our our continue. customers, So seen our

Kelsey Zhu

exclusive for were if payroll when I coming renewals us still mostly my wondering providers. you up they a that is was of was And to wrong, under second question around remind and I X-year most your in me it. contracts impression had Got EWS. I'm Correct are term these of lot but XXXX. X- if can with the signed contracts a

if year I renewals So they're year. on next this or just that means wondering up was

Mark Begor

term never partners. of any contracts talked the obvious We've with Yes. are of our confidential Those reasons. about our for

the structured speak. way and they're those it's are and auto-renewals with generally said, structured, And as happening auto-renew. have We we they're they

There's there's these not none cliff a coming. -- like that of like are

X years, adding X years, over If years, years, year, you remember we're X every the X X dialogues partnerships quarter. our last

auto a have those those, they're add you As term on them, to but renewal.

integration, that the And not which is to complex. It's so integration. simple And deliver from much partner, value very not we only a

in can quarter work a then our months million records large the TWN earlier, order those records. those technology to delivered and to us they in to environment of take partner to As going you data in that's heard so going intense be bring X, we X normalized signed add report. very It's be into our X, X

of monetization lot makes growing keep a our And every course, quite a there's relationships that as then, monetization work business, into from So our we goes standpoint, that our integration sticky. grows partners' that quarter. of

a very there's there. strong So relationship

processors, with payroll And our partnership companies. as those income beyond other like employment unemployment you I-X, know, with and WOTC, partners we're doing just of increasingly like in claims may kind services,

So we have multiple relationships.

our maybe said partnerships around confidence got So we've differently, nature of a lot records. the in long-term of TWN

Operator

Our next Baird. from question is today Jeff coming from Meuler

Jeffrey Meuler

customer in and is adoption I headwinds trade-down some effect? that mortgage, Or can... me. there some of If clear there mix TWN but were just losing addressed that XX You to wasn't think kind product you the Is Mortgage said the you headwinds, lapping tailwind? also it and

Mark Begor

got in you the of innovation Mortgage the other second hope certainly Yes, the out XXXX. EWS half coming benefit that in would That's mortgage will We've second or we some it, XX. for got half Jeff.

was on powerful kind past focusing out, as solutions value. always new solution. a add Mortgage point But very that are we're that. So just of XX lapping you And we will

Jeffrey Meuler

records the how us you that. mortgage? of for monitor on TWN can remind Okay. And then just And kind just dynamics nonexclusive share to comment you

Mark Begor

Yes.

through from have our So for still UC, our relationships reminder call, that's records regulatory vertical, where like employer et come the I-X, unemployment, a cetera. of individual just we half delivered as those everybody on services

So you month every individual about those say are we records to grow our our tend reminder of growing we're that a -- And talk as employer But we or I records. our half partner you, business. relationships.

partnerships. got point And HR companies. you to talk as -- out, processors, we software we've they're about tend And payroll or tend you talk to but

number We've way got another for a relationships is there of to platforms relationships. Software us pipeline additional partner. of a and

but one, like pension have a for the which another is processor pension space. We administrators is payroll

know, with you are that strong XX partners million in a benefit we're and pool of that big And assets defined million those have. have have. XX to pensioners that multiyear all we we all of data is those As we chasing relationships nature, of

Operator

from coming Craig from Huber Huber Research next today Our Partners. question is

Craig Huber

what question, is for for I'm in reach. Online First this your U.S. your area, curious there? outlook auto your also and us -- in your And Solutions year you size card Information revenues credit again exposure dollars can

John Gamble

Yes.

and we of all X we So FI the USIS. different largest broken markets of our in have segments. that are haven't down auto

auto but case, values the specifically online But services and haven't for certainly they're within So within our revenue. large we OIS our dollar card. given total

Craig Huber

auto those the about this the please? year, revenues for card of each credit outlook for for there And how and

John Gamble

I it think right? quarter to what we that relates second a for the to about year, that's for And given of specifically about. think did total is we've in view as non-mortgage we the both the talked I the for call, we're going and granularity And USIS. level talk

quarter. our We in guidance indicate ID in averages, to very of performance FI continue commercial, long-term consumer, also expect nice perform U.S. in as segment, we to gave terms see very growth by and the well. no, right, did performance Those to that we very well. at give performance good But don't continued with very we right? very, level. in expect good within nice fraud, on specifics We specifics We above that had first that

Operator

Clinch Simon Partners. is question Redburn Next coming from from

Simon Alistair Clinch

underlying able that redetermination? to please. growth get to the of delivered rate start that the actual much And a with. -- vertical, growth actually the growth quarter, I wanted is that just to can growth from what you this we of to out are government came jump of you the excellent So sense how break

Mark Begor

on inside in the Workforce exceptionally gotten actually know, for talked first that a now Workforce It's is morning. thanks about And the you our we vertical And Solutions question quarter, Solutions And Yes. up really well. of as government. history. this as time we've first business in for bringing that performing largest it's the quarter

million So north the year $XXX north a We billion us is rate a that roughly of XX% slightly for obviously well very business business, TAM. annual at overall Equifax. exited which of -- of that in it's $X powerful run in

like with a of growth it's vertical So opportunity. lots we

both there's Redeterminations comments the that. are in that a I There from in disproportionate that other piece levers wouldn't government. prepared our about I talked inside government. think and think like multiple I John as levers of -- are of we that have about

price remember, in extension September, back with CMS. in You had a billion was we signed may big It over $X increase a it. that

rolling contract. So It's a that's through. X-year

the effect, 'XX. on we in that You can make into the your escalators it lap annual again, goes own that And assumptions as September has impact the fourth in quarter. quarter of and increase had first when price post that

SNAP, a for X benefits. signed contract with TANF over million That's in years. brand-new We contract USDA a September $XXX

about that positive lever then we fourth and in probably So the articulate that's sharing for is you. a about quarter. we've growth. and And to rolling into be the also the P&L quarter we think tried that also for can both the penetration state should very And first strong better pretty how deliberate

not And services as the more opportunity a the of delivered you all know, reminder, health a of social are XX with, different social capitals and the that it's states. usage within Each agency different rent stamps, put really really as probably state food to work all state is entity kind entity. are services a we the at states. our resources drive an solutions. penetration support, level. state lot a more And state have whether Government at primarily at of we've is childcare the support, benefits, But care organizations in we

So a that's big had positive us. for

those bit a maybe winded, of all it's but levers. So long multifaceted,

contracts. are then government when contracts. the escalators our And going all visibility We lot to our multiyear year. with price in into X/X Those as inherent the our roll right? lay as in don't but do through P&L them, of price contracts those Price price, built we as are actions we is in increases enter year we have a with in

John Gamble

you Expect growth second quarter, they quarter pause the strong Again, on government right? the the to with health are redetermination going continue we're So pause in requirement strong continuously. reminder, after as growth despite The that over. in the the second fact is of the was that that the a participants eligible. were redeterminations still a emergency. redetermine programs during happen It's difference

Simon Alistair Clinch

Yes.

from and an the EWS' guess the but more high-level the costs, it. industry through shrinking, origination mortgage. as mortgage of it question, And position on a be I over going to follow-up a here a The question it's to automated, hopefully, reducing becoming Okay. evolution is more also going closing next market takes decade, within time

and wondering but of your EWS have, in business does that stuff. the pulls the And terms impact I'm power how all number also you per pricing might of inquiry in of kind get you that

So is factored your how that long-term framework? into

Mark Begor

Yes.

been X-plus off, years. happening the not it's last speak, the and we It's been first So right it's new. as over points. hit you happening And all

actually and a mortgage As online, are go more more very shopping mortgages that consumers rare for it's office broker's now. into they

So huge that's a been change.

the to And as more you they're being of that et value call the digital results auto is case, cards, want mortgage, not They will cetera. same on then time as well shopping application out, between, second the but instance And in every data valuable. vertical the or consumer or inquiry half fact the as to of shorten focus closing. the point seeing is that it, through

want for over in to closed $X,XXX, And they on time XX-, make they're $X,XXX, be And they because continue to $X,XXX spending is invest that reason XX-day they mortgage mortgage a a frame. is sure could application accurate what very originator need and need to that that data precarious COGS loan. the of instant

change their credit and lot a the change their the their lose change loan. credit. could for job, longer cetera. their employment. can job, And then They They can could no for about qualify on around et take It more consumer

So is why valuable. instant that's very data

to us. to plays the in we shortening time all have instant screening on so data government income of and history, in income. employment, when services around And in for case digitization a Equifax background focus complete the mortgage, on to Those process and employment play social

because of lot a of that. of And in not originators do the number using there's still case an of large mortgage they're element all a manually. solution that verifications of involved if there's also in our There's productivity mortgage, labor their

of Speed, you labor benefit the have -- and productivity. As go both triple: up, double costs accuracy, speed actually

play macros more in mortgage broadly and those to us Equifax. So across

Operator

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

Toni Kaplan

others. year. you the lapping among about a talked implies of second pipeline as go was half workforce. better to this importance to including if drivers a of question a And ERC improvement through mentioned with starts hoping the that's big driver. on just a the a strong I what It talk the little wanted headwind. the maybe number you about could to in records call, ask we also I go you in adding And guidance. regard records, the bit directionally, And

Mark Begor

one important. pleased record with additions. were our Records is that We is certainly

the we you know, year. But last bunch As those year. the a added in X first the in on partnerships of X fourth We half coming quarter. are added

And have of where that. individuals, new we processor on. X when to you XXX you million have then because we a or that the landing XXX is power this business That's expect to large we're records of lot next with million When payroll records. million record the X come is or And records, already them. we we a real about customers add. them now visibility know, that to think And in the monetize add positive day that model getting from these for our our as a million inquiries

The records a -- little of to a going And ERC a clearly, in kind kind second it's is is -- WOTC what timing is be. impact. is a piece So there's half of the positive.

as be through the government backlog forms first second get As from didn't in the half. implemented the that fully small to that's we a go quarter, going benefit

around... would you else What add, John,

John Gamble

to think beneficial. back very we which I is moves growth talent think again,

We very strong. is about new upfront the asked for pipeline pipeline You contributors. the think

would, very year, we've about the we talked as would pipeline for is more. continue growing we've strong, feel that to through we closed. contributors, and and the So as What right? and who pipeline we The it's we good expect strengthen it it add about new is also there's of go opportunities

Mark Begor

million think we individuals earlier, the And in TWN, there's our maybe, today data but Toni, about for out this shared you XXX have I million there. XXX set if

go. million XXX about to got we So

for So there's lot and record do with still as quarter, so. we for Equifax momentum a out, pipeline for fourth those for that for pointed a not John records quarter. growth. There's second enthusiasm their runway quarter, to very are active of have a And long monetizing third

John Gamble

in new drive we we deliver. which products very good EWS, as which through again, in that And we'll we the right? some some again, feel seeing trend think you segments about exciting go growth, we've have about, in generally already we should talked non-mortgage should and of year the So the be that Verifier,

Toni Kaplan

you And standpoint. And just sort you've But a consumer in trajectory seen this make what about good worth terms consumer just of that's Great. seen you X either that this Yes. credit about appetite, more just something year, the constructive? persisting. is you've of think months you lender as you from mentioned think when of basically, like first demand changes or that employment watching? obviously any strong Or or the

John Gamble

with in mortgage, we far, I of mortgage market that the we've So seen, what consistent we guided that assuming were think, seeing. terms broader run than market was other rates right? a Obviously,

than think the we in said, moved started. where direction. to but Mark were, the very toward that. I move market we different seen expectations probably Maybe As we've And market quite were in that expectations where not

have than than only think market Other when auto, started different don't look than we've seen we expected. right? we Other seen we've we in and talked year. good, looks weakness that that, that, I the generally weaker speaking, right, FI was think about a that is a than the markets the little where fairly I little

we've we right? speaking, assumed year, with think sales big other that we our are USIS will generally things The continue. started we've we impact weaker And non-mortgage talked that, consistent, bureaus, now on about right? I already So was to than that operating is the and and where thought, feel think we fairly that good,

Operator

is question Citi. next Truslove Our coming Arthur from from

Arthur Truslove

quarter and and very to you much. people origination it's I do if data certainly my that seem been the new for So first explain in I these MBA guess it and seeing question maybe down certainly elsewhere, seen of Mae I question guess in sort I think might not January from of gap was sort forecasts, were Fannie me main the is, have you're volumes terms look in obviously what volumes between looks be saying acquisitions like originations? February you've and or up, that down guess of how mortgage XX%. at what whether they those

John Gamble

Yes.

So what is inquiries. we our quote, right,

So we as And right? mortgage require reminder, quote bureau, actual data credit inquiry pull. tri-bureau a transactions on the a

are third number and are. we which inquiries the every see estimating surveys our They use know And there's are the originations. we we in that mortgage peers number. of what seeing estimate inquiries right? you're about transacting. between of it's give actuals that they to can So as our or the on transaction, try third-party estimation what They're the what groups right, first see difference a We and that don't know parties doing doing actuals and explain don't talking and day inquiries them, year, quarter for and from mortgage right? estimations, So we that we're when based

Arthur Truslove

on following up just But that.

process obviously, So earlier are originations. if in than the -- inquiries

origination printed. losing origination is, referring guess trends third-party the business. question to than whether side participants other So was within better it share you providers was side, what of on forecasting data to to activity are Solutions the like the market? sort there, the manual the And are essentially, more looks I I significantly in you my Because or Workforce

whether understand to trying you... just I'm guess I So

Mark Begor

lag, see at originations, be I data, as how show on mortgage and a that look X-month at, too, couple except the the of And too It see right? to we is doesn't you're a know, we things industry don't reported. think, and That's Maybe found we looking up. historically you it's optimistic. don't

those These quarter, of And are the may like looking expectation what some today. say, which be be?" MBA obviously rate is Fed to cuts think out were that's when Fed's the at February the probably signaling how some do originations done feel are or you surveys. will surveys in participants second of was mortgage going doesn't March others in to back and you're go and of "What where And

that. change in lot a there's So of

to historically a lag X-month strong it. originations, When look inquiry with activity, are our there's we a at alignment again compared which back actual on

our or mortgage you our outperformance So share and market, far grow case a use but has to and doing what see, customers. a -- we proxy as typically, been TWN inquiries of because price mortgage for market USIS trying is the what been, versus into don't we're we've the with how is in it's it the do see penetration done then not decade And the above records how for market, either differing. typically it EWS which we has or meaning, product what that's we from

John Gamble

them And look take you a to as the if And credit, somewhat well we be as inquiries compare moving together. discussed directionally similar. that to TWN they at tend

together mandated, So in look it's how we at one to about think because looking to across at we to for trends and trends they're because judge transactions in case, so So that compare EWS, we can best are that's our them we USIS that's try -- see credit, a see all how businesses. bit things something trending the know when closely moving right? we we little both

Operator

Our next Goldman coming is from from Tong George Sachs. question today

Keen Fai Tong

talk Within the these that and have in your can you're and Solutions impact overall business, competition Workforce you EWS quarter, about had might customer what little the around on bit a sensitivity seeing price growth?

Mark Begor

Yes, X different questions.

on one price. first the Nobody would nobody say price On price likes increase. a sensitivity, likes and I so-called universally

So out to our from our customers take go any always there's our understand data a sensitivity when the value we But up. standpoint, in data. of of of our price and verticals the challenges uniqueness

that So those are conversations through. work we

about use to Equifax. try hard more value for market. a we of customers. at our how big only verticals. is Penetration And into really what we price. on to we got go ROI think price be us, is know, And as to balanced lever you around you to part And product, or Product one our that to is we work do bringing

where We solution. of lots And space manual verticals, in from of particularly Solutions, course, Workforce white our have we're converting big then, price. to in instant

white our whole the in very quarter's chart last in all for have the this is TAM business TAM, we really TAM had government strong solution the Competition driving we businesses income you smaller think delivering and That's Frankly, don't in an impact on verifications. and from and That space X then quarter, focus feel And there. employment a that manual have between much is manual market white see is and We And a in we different think about penetration had or the our biggest a maybe our a X when is TAM and deck. for revenue question. position. and verifications. our we the digital competitor participants EWS employment. We income space.

Keen Fai Tong

mortgage what outlook. fall proportion to helpful. have go for At this to rates back go then levels? based it. to mortgages rates And medium-term pre-COVID what see? below to volumes how of wanted Got point, you That's to would back And mortgage X% much your need on

Mark Begor

to question answer. hard very a That's

The in half, second particular.

my First don't fingertips. have half, at I

We And to help. have reach that. you out or and can Trevor can Sam, they

the I mortgages public It's on very think that. out there's below X%. on of data number there available

driven mortgage When mostly by about down we recovery, dramatically about as come being think refis. purchase. we it The I multifaceted call a activity normal and think has as would purchase actually what

there's there's know, which as is happen. a refis when There's your that And types point. X% you rate rate decrease, of refis X I think

to X% going go X% or be So level to down rate of go to of refis. there's rates rates to some consumers whatever the when

a from meaningfully refis a that characterize There's as or $XX been we in There's equity still because the happen. like refis. number steady would they've homes. Those of pulled cash-out normal pulled rapid And amount of there's back back. happening, rates. been also almost of some untapped have what There's but increase of something consumers' $XX trillion in typically large fairly trillion cash-out

that's sale. are curtailed not off is a the purchase into And There's not the part of up. owned of mortgage rental although -- condo to big for upgrading one a property that's pick holding just consumers going from putting and a from the housing then very starting or stock Consumers But X-bedroom lot an been to business, house it's are X-bedroom home. that more.

then of of be the activity have would expect, forward. increase stabilized reduction at We down, of in rates stimulus some of we this the the kind the is they've and couple stabilization in level of stabilize, for bps but which outside moving last of the rates last combination really weeks, as think takes the But level. XX higher will they -- as Fed

rates you pick would in to call frame, would to we Over 'XX, down be long 'XX time meaning revenue medium return to going your start the the can COVID get more but XXXX where levels likely to activity. to under 'XX, a 'XX, order expect 'XX, to or to during we expect medium that normal we take were boost the down -- term, driving back they and $X.X mortgage it inflation of but Fed control. levels. stimulus term, economic think billion We opportunity to our into historic as that's And not

Operator

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

Trevor Burns

everybody, Thanks, Yes. for today. your time

lot. any can discuss. reach have me to and be and Sam. around questions, tomorrow If today a you out you follow-up We'll Thanks to

Operator

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

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

Equifax (EFX) 18 Apr 242024 Q1 Earnings call transcript