Equifax Full Year 2022 Revenue Up 4%, Record Revenue of $5.122 Billion

Equifax® (NYSE: EFX) has announced financial results for the quarter and full year ended December 31, 2022.

Full year 2022 revenue grew 4% to $5.122 billion, offsetting the significant 23% mortgage revenue decline
Fourth quarter 2022 revenue of $1.198 billion was down 4% due to a 41% decline in mortgage revenue
Workforce Solutions 4Q non-mortgage revenue growth of 17% with strong growth in Talent and Government
USIS 4Q non-mortgage revenue growth of 10% with strong 19% Online non-mortgage revenue growth
International 4Q constant currency revenue growth of 9%
Strong new product innovation leveraging new EFX Cloud with record 4Q Vitality Index of 14%
Accelerating Cloud cost savings and executing broader restructuring to deliver $200 million of spending reduction in 2023, including $120 million in expense and $80 million in capital spending reductions

“We delivered a strong 2022 with 17% non-mortgage growth in an unprecedented mortgage market decline. Fourth quarter revenue of $1.198 billion was down 4%, given the significant 41% decline in mortgage revenue. Our non-mortgage business, which was over 80% of Equifax in the fourth quarter, delivered very strong constant currency revenue growth of 12%, reflecting broad-based strength across our businesses. Workforce Solutions, our largest and fastest growing business, delivered another exceptional quarter with very strong 17% Non-Mortgage growth. USIS saw very strong Online non-mortgage growth of 19% and International had a strong quarter, finishing with constant dollar revenue growth of 9%,” said Mark W. Begor, CEO of Equifax. “We have strong momentum as we enter a more uncertain 2023 and are continuing to reinvest our outperformance in strategic bolt-on acquisitions that further position Equifax for diversified growth, including our offer to acquire Boa Vista Serviços, the second largest credit bureau in Brazil, which will expand Equifax capabilities in the large and fast-growing Brazilian market and add to our diverse International portfolio.”

“We are confident in the future of the New Equifax as we deliver strong, double-digit non-mortgage growth, finalize our EFX Cloud transformation, leverage our new Cloud capabilities to accelerate new product roll-outs that ‘Only Equifax’ can provide, and invest in new product and data and analytics capabilities to drive future growth in 2023 and beyond. We are issuing our full-year 2023 guidance midpoint expectation of revenue of $5.325 billion, with strong Non-Mortgage growth of approximately 8% and Adjusted EPS of $7.20. This reflects our expectation of a continued 30% decline in the U.S. mortgage market and uncertain 2023 economic environment. To respond to the declining mortgage market and uncertain economy, we are accelerating our data and technology Cloud transformation cost savings and executing broader proactive cost actions to deliver $200 million of spending reduction in 2023, including $120 million in expense and $80 million in capital spending reductions. We are energized about the New Equifax and remain confident in our long-term 8-12% growth framework that will deliver higher margins and free cash flow.”

Financial Results Summary

The Company reported revenue of $1,198.0 million in the fourth quarter of 2022, a 4% decrease on a reported basis and a 2% decrease on a local currency basis from the fourth quarter of 2021.

Fourth quarter 2022 diluted EPS attributable to Equifax was $0.88 per share, down from $0.99 per share in the fourth quarter of 2021.

Net income attributable to Equifax of $108.2 million was down from $122.1 million in the fourth quarter of 2021.

For the full year 2022, revenue was $5,122.2 million, a 4% increase from 2021 on a reported basis and 6% increase on a local currency basis. Diluted EPS attributable to Equifax was $5.65 per share, down from $6.02 per share for the full year 2021. Net income attributable to Equifax was $696.2 million, down from net income of $744.2 million for the full year 2021

Workforce Solutions fourth quarter results

Total revenue was $508.4 million in the fourth quarter of 2022, down 4% from the fourth quarter of 2021. Operating margin for Workforce Solutions was 36.5% in the fourth quarter of 2022 compared to 40.5% in the fourth quarter of 2021. Adjusted EBITDA margin for Workforce Solutions was 46.8% in the fourth quarter of 2022, compared to 48.4% in the fourth quarter of 2021.
- Verification Services revenue was $398.6 million, down 7% when compared to the fourth quarter of 2021.
- Employer Services revenue was $109.8 million, up 5% when compared to the fourth quarter of 2021.

USIS fourth quarter results

Total revenue was $405.9 million in the fourth quarter of 2022, down 6% compared to the fourth quarter of 2021. Operating margin for USIS was 21.4% in the fourth quarter of 2022, compared to 30.5% in the fourth quarter of 2021. Adjusted EBITDA margin for USIS was 35.3% in the fourth quarter of 2022, compared to 39.4% in the fourth quarter of 2021.
- Online Information Solutions revenue was $308.0 million, down 2% when compared to the fourth quarter of 2021.
- Mortgage Solutions revenue was $26.0 million, down 36% when compared to the fourth quarter of 2021.
- Financial Marketing Services revenue was $71.9 million, down 9% when compared to the fourth quarter of 2021.

International fourth quarter results

Total revenue was $283.7 million in the fourth quarter of 2022, down 1% and up 9% from the fourth quarter of 2021 on both a reported and local currency basis, respectively. Operating margin for International was 12.4% in the fourth quarter of 2022, compared to 16.1% in the fourth quarter of 2021. Adjusted EBITDA margin for International was 25.8% in the fourth quarter of 2022, compared to 29.9% in the fourth quarter of 2021.
- Asia Pacific revenue was $84.6 million, down 4% from the fourth quarter of 2021 on a reported basis and up 6% on a local currency basis.
- Europe revenue was $81.5 million, down 10% from the fourth quarter of 2021 on a reported basis and up 3% on a local currency basis.
- Latin America revenue was $53.3 million, up 18% from the fourth quarter of 2021 on a reported basis and up 31% on a local currency basis.
- Canada revenue was $64.3 million, up 1% from the fourth quarter of 2021 on a reported basis and up 7% on a local currency basis.

Adjusted EPS and Adjusted EBITDA Margin

Adjusted EPS attributable to Equifax was $1.52 for the fourth quarter of 2022, down 18% compared to the fourth quarter of 2021. Adjusted EBITDA margin was 31.0% for the fourth quarter of 2022, compared to 32.2% in the fourth quarter of 2021.
Full year adjusted EPS attributable to Equifax was $7.56, down 1% from the prior year period. Full year adjusted EBITDA margin was 33.6% compared to 33.9% in 2021.

Source: Equifax Earnings Release