Equifax® (NYSE: EFX) has announced financial results for the quarter ended March 31, 2022.

  • Record first quarter 2022 revenue of $1.36 billion, up over 12%; ninth consecutive quarter of double-digit growth
  • Workforce Solutions revenue growth of 33%; twelve consecutive quarters of double-digit revenue growth
  • Strong new product innovation leveraging EFX Cloud
  • Completed acquisitions of Efficient Hire, to enhance differentiated data and strengthen Workforce Solutions; and Data-Crédito, the largest credit bureau in the Dominican Republic
  • Revising Full Year Guidance to reflect expected significant acceleration in decline of U.S. mortgage market from higher rates

“We delivered a very strong First Quarter, with our ninth consecutive quarter of double-digit revenue growth. Our First Quarter revenue of $1.363 billion was the highest quarterly revenue in our history, up 12% despite the 24.5% decline in the U.S. mortgage market. Workforce Solutions, which is approaching half of Equifax total revenue, again powered our results, with total growth of 33% and organic growth of 20%, along with strong 10% local currency growth contributed from International,” said Mark W. Begor, Equifax Chief Executive Officer. “We are continuing to reinvest our strong free cash flow in bolt-on, strategic acquisitions to broaden and strengthen Equifax for diversified growth, including Efficient Hire, which enhances our robust suite of employer services, and Data-Crédito, the largest credit bureau in the Dominican Republic.”

“Despite our very strong First Quarter, we are adjusting our full-year 2022 guidance principally to reflect the impact of the large and rapid increase in U.S. mortgage rates over the last several months, with rates now at a 10-year high. Our revised guidance reflects an expectation that the U.S. mortgage market, as measured by mortgage market credit inquiries, will decline by 37.5% over the remainder of 2022 and exit the year at a run-rate down 40%, which is approaching 25% below the average levels of mortgage market credit inquiries prior to 2020. This rate of decline would result in a full year decline in U.S. mortgage market credit inquiries of 33.5%, 12 percentage points weaker than the 21.5% included in our February guidance. This decline in the U.S. mortgage market would negatively impact our guidance for 2022 revenue growth by over 350 basis points, or $175 million, at the mid-point of our guidance, but given our strong First Quarter, we are expecting higher non-mortgage revenue growth to offset just under half of this impact, by about 150 basis points, or $75 million. The net impact is a $100 million reduction in our guidance for 2022 revenue growth, with a resulting midpoint in our guidance for 2022 revenue of $5.2 billion. This revenue reduction, and the elimination of income from our non-controlling interest in a Russian joint venture, results in a reduction in our guidance for 2022 Adjusted EPS of $0.50 per share, with a resulting midpoint in our 2022 Adjusted EPS guidance of $8.15 per share.”

“Our strong First Quarter results and momentum gives us confidence in the future of Equifax. We are rapidly building a new company – a New Equifax – a resilient, faster growing, higher margin, diversified data, analytics and technology company. We remain confident in our long-term 8-12% growth framework that will deliver higher margins and free cash flow. I remain energized about the future of the New Equifax in 2022 and beyond.”

Financial Results Summary

The company reported revenue of $1,363.2 million in the first quarter of 2022, up 12 percent compared to the first quarter of 2021 on a reported basis and 13 percent on a local currency basis.

Net income attributable to Equifax of $221.8 million was up 10 percent in the first quarter of 2022 compared to net income attributable to Equifax of $201.6 million in the first quarter of 2021.

Diluted EPS attributable to Equifax was $1.80 for the first quarter of 2022, up 10 percent compared to $1.64 in the first quarter of 2021.

Workforce Solutions: Total revenue was $649.0 million in the first quarter of 2022, a 33 percent increase compared to the first quarter of 2021.

USIS first quarter results:  Total revenue was $432.9 million in the first quarter of 2022, down 6 percent compared to $459.4 million in the first quarter of 2021.

International first quarter results:  Total revenue was $281.3 million in the first quarter of 2022, up 6 percent and up 10 percent compared to the first quarter of 2021 on a reported and local currency basis, respectively.

Adjusted EPS and Adjusted EBITDA Margin

  • Adjusted EPS attributable to Equifax was $2.22 in the first quarter of 2022, up 13 percent compared to the first quarter of 2021.
  • Adjusted EBITDA margin was 35.5 percent in the first quarter of 2022 compared to 35.6 percent in the first quarter of 2021.
  • These financial measures exclude adjustments as described further in the Non-GAAP Financial Measures section below.

 

Source: Equifax Q1 2022 Earnings Release