The company reported revenue of $1,213.0 million in the first quarter of 2021, up 27 percent compared to the first quarter of 2020 on a reported basis and 25 percent on a local currency basis.

Net income attributable to Equifax of $201.6 million was up 72 percent in the first quarter of 2021 compared to net income attributable to Equifax of $116.9 million in the first quarter of 2020.  Diluted EPS attributable to Equifax was $1.64 for the first quarter of 2021, up 72 percent compared to $0.95 in the first quarter of 2020.

Workforce Solutions first quarter results: Revenue up 59%

  • Total revenue was $480.9 million in the first quarter of 2021, a 59 percent increase compared to the first quarter of 2020. Operating margin for Workforce Solutions was 55.1 percent in the first quarter of 2021 compared to 44.3 percent in the first quarter of 2020. Adjusted EBITDA margin for Workforce Solutions was 59.3 percent in the first quarter of 2021 compared to 51.5 percent in the first quarter of 2020.
  • Verification Services revenue was $385.2 million, up 75 percent compared to the first quarter of 2020.
  • Employer Services revenue was $95.7 million, up 17 percent compared to the first quarter of 2020.

Equifax a Wide Moat Business With Strong Growth because of Workforce Solutions

“Equifax’s biggest move in recent years has been the buildout of its workforce solutions segment, which now accounts for more than 25% of revenue and more than 40% of its operating income. The employment verification part of this segment is the moatiestGiven the need to persuade businesses to provide this sensitive information, we believe the business benefits from a first-mover advantage that will allow it to establish strong barriers to entry. The Employer Services part of Workforce Solutions, which includes unemployment claims management, provides Equifax with a source of meaningful counter-cyclical revenue.

USIS first quarter results:  Revenue up 19%

  • Total revenue was $409.4 million in the first quarter of 2021, up 19 percent compared to $343.2 million in the first quarter of 2020. Operating margin for USIS was 34.1 percent in the first quarter of 2021 compared to 31.4 percent in the first quarter of 2020. Adjusted EBITDA margin for USIS was 42.9 percent in the first quarter of 2021 compared to 44.7 percent in the first quarter of 2020.
  • Online Information Solutions revenue was $302.0 million, up 19 percent compared to the first quarter of 2020.
  • Mortgage Solutions revenue was $54.1 million, up 27 percent compared to the first quarter of 2020.
  • Financial Marketing Services revenue was $53.3 million, up 12 percent compared to the first quarter of 2020.

International first quarter results: Revenue up 12%

  • Total revenue was $241.3 million in the first quarter of 2021, up 12 percent and up 3 percent compared to the first quarter of 2020 on a reported and local currency basis, respectively. Operating margin for International was 11.5 percent in the first quarter of 2021, compared to 7.1 percent in the first quarter of 2020. Adjusted EBITDA margin for International was 28.2 percent in the first quarter of 2021, compared to 27.9 percent in the first quarter of 2020.
  • Asia Pacific revenue was $86.9 million, up 25 percent and up 7 percent compared to the first quarter of 2020 on a reported and local currency basis, respectively.
  • Europe revenue was $68.7 million, up 3 percent and down 5 percent compared to the first quarter of 2020 on a reported and local currency basis, respectively.
  • Latin America revenue was $41.6 million, down 4 percent and up 1 percent compared to the first quarter of 2020 on a reported and local currency basis, respectively.
  • Canada revenue was $44.1 million, up 20 percent and up 13 percent compared to the first quarter of 2020 on a reported and local currency basis, respectively.

Global Consumer Solutions first quarter results: Revenues down 16%

  • Total revenue was $81.4 million in the first quarter of 2021, down 16 percent and down 17 percent compared to the first quarter of 2020 on a reported and local currency basis, respectively. Operating margin was 17.2 percent in the first quarter of 2021 compared to 13.5 percent in the first quarter of 2020. Adjusted EBITDA margin was 24.6 percent in the first quarter of 2021, compared to 23.1 percent in the first quarter of 2020.

Adjusted EPS and Adjusted EBITDA Margin

  • Adjusted EPS attributable to Equifax was $1.97 in the first quarter of 2021, up 37 percent compared to the first quarter of 2020..  Adjusted EBITDA margin was 35.6 percent in the first quarter of 2021 compared to 33.0 percent in the first quarter of 2020.  These financial measures exclude adjustments as described further in the Non-GAAP Financial Measures section.

Source:  Equifax Earnings Release