The company reported revenue of $982.8 million in the second quarter of 2020, up 12 percent compared to the second quarter of 2019 and up 13 percent on a local currency basis.

“Given the difficult situation Equifax delivered its second consecutive quarter of strong, double digit revenue growth and margin expansion, driven by our Workforce Solutions income and employment business which had its strongest results in over 10 years, even with the challenging economic impacts of the coronavirus pandemic in the quarter. ” Comment by Marc Begor, CEO of Equifax.

[BIIA editorial comment: Notwithstanding the impact of the Covid-19 pandemic Equifax’s US based businesses did remarkably well, while its international businesses got hammered.  In its Q1 2020 earnings report the company indicated that there could be a negative impact from the Covid-19 pandemic.  The statement made in April was cautious:  “Today, about 65% of Equifax’ US businesses are either recession-resistant or countercyclical and about 55% of our global business is recession-resistant or countercyclical. This compares in the 2009 global financial crisis where only about 40% of our businesses were either recession-resistant or countercyclical compared to the 55% today. This meaningful growth – the meaningful growth in EWS and US mortgage since 2009 positions Equifax well for the COVID-19 recession.  Equifax business mix is better positioned for an economic event today than it was during the global financial crisis. Strong Workforce Solutions growth has increased their relative size in Equifax from 10% of revenue in 2009 to 27% percent of revenue today. And US mortgage has grown from 12% of Equifax revenue in 2009 to over 20% today.”  –  End of BIIA editorial comment]

USIS second quarter results:  Total revenue was up 10 percent at $365.6 million in the second quarter of 2020, compared to $332.7 million in the second quarter of 2019. Operating margin for USIS was 30.9 percent in the second quarter of 2020 compared to 35.4 percent in the second quarter of 2019. Adjusted EBITDA margin for USIS was 44.1 percent in the second quarter of 2020 compared to 45.6 percent in the second quarter of 2019.

  • Online Information Solutions revenue was $262.9 million, up 7 percent compared to the second quarter of 2019.
  • Mortgage Solutions revenue was $51.2 million, up 44 percent compared to the second quarter of 2019.
  • Financial Marketing Services revenue was $51.5 million, up 1 percent compared to the second quarter of 2019.

Workforce Solutions second quarter results: Total revenue was $352.9 million in the second quarter of 2020, a 53 percent increase compared to the second quarter of 2019. Operating margin for Workforce Solutions was 49.4 percent in the second quarter of 2020 compared to 41.6 percent in the second quarter of 2019. Adjusted EBITDA margin for Workforce Solutions was 56.3 percent in the second quarter of 2020 compared to 49.3 percent in the second quarter of 2019.

  • Verification Services revenue was $251.9 million, up 46 percent compared to the second quarter of 2019.
  • Employer Services revenue was $101.0 million, up 75 percent compared to the second quarter of 2019.

International second quarter results: Total revenue was $180.5 million in the second quarter of 2020, down 21 percent and down 15 percent compared to the second quarter of 2019 on a reported and local currency basis, respectively. Operating margin for International was negative 3.4 percent in the second quarter of 2020, compared to 9.9 percent in the second quarter of 2019. Adjusted EBITDA margin for International was 21.7 percent in the second quarter of 2020, compared to 28.6 percent in the second quarter of 2019.

  • Asia Pacific revenue was $65.2 million, down 14 percent compared to the second quarter of 2019 and down 9 percent on a local currency basis.
  • Europe revenue was $48.0 million, down 27 percent compared to the second quarter of 2019 and down 25 percent on a local currency basis.
  • Latin America revenue was $34.2 million, down 28 percent compared to the second quarter of 2019 and down 14 percent on a local currency basis.
  • Canada revenue was $33.1 million, down 16 percent compared to the second quarter of 2019 and down 13 percent on a local currency basis.

Global Consumer Solutions second quarter results:  Total revenue was $83.8 million in the second quarter of 2020, down 5 percent compared to the second quarter of 2019 on a reported and local currency basis. Operating margin was 9.3 percent in the second quarter of 2020 compared to 14.5 percent in the second quarter of 2019. Adjusted EBITDA margin was 20.8 percent compared to 22.9 percent in the second quarter of 2019.

Source:  Equifax Earnings Release