Equifax Inc. (NYSE: EFX) has announced financial results for the quarter ended June 30, 2021.
- Highest ever quarterly revenue of $1.2 billion, up 26%; sixth consecutive quarter of double-digit revenue growth and EPS growth
- Broad-based revenue growth with Workforce Solutions up 40%, USIS up 11%, and International up 39% in reported currency and 25% in local currency
- Continued progress on EFX Cloud data and technology transformation
- Delivered 46 new products leveraging EFX Cloud
- Executing EFX2023 strategic framework leveraging EFX Cloud for innovation, new products and growth
- Increasing full-year revenue and EPS guidance
“We continued our strong financial performance with our sixth consecutive quarter of strong double-digit revenue growth and EPS growth, building on our strong first quarter and 2020 results. Our record $1.235 billion revenue and 26% overall revenue growth was powered by broad-based growth from Workforce Solutions, USIS, and International. Workforce Solutions continues to drive our results, with revenue growth of 40% in the quarter despite a decline in the mortgage market from last year’s elevated levels,” said Mark W. Begor, Equifax Chief Executive Officer.
“We are continuing to execute on our EFX2023 growth strategy, leveraging the EFX Cloud to drive innovation, new product roll-outs and growth, while expanding our differentiated data sets and decisioning power to bring new and unique solutions to our customers that only Equifax can deliver. Our strong outperformance, balance sheet, and cash generation is allowing us to reinvest in the EFX Cloud and bolt-on acquisitions to enhance our capabilities. We are confident in our outlook for 2021 and are again raising our full-year financial guidance, reflecting this to a range of $4,760 million to $4,800 million, and our Adjusted EPS guidance to a range of $7.25 to $7.45.”
The company reported revenue of $1,234.8 million in the second quarter of 2021, up 26 percent compared to the second quarter of 2020 on a reported basis and 23 percent on a local currency basis.
Net income attributable to Equifax of $215.1 million was up 115 percent in the second quarter of 2021 compared to net income attributable to Equifax of $100.2 million in the second quarter of 2020.
Diluted EPS attributable to Equifax was $1.74 for the second quarter of 2021, up 113 percent compared to $0.82 in the second quarter of 2020.
Forecast for 2021
Non-GAAP Financial Measures
This earnings release presents adjusted EPS attributable to Equifax which is diluted EPS attributable to Equifax adjusted (to the extent noted above for different periods) for acquisition-related amortization expense, costs related to the 2017 cybersecurity incident (these costs are comprised of legal fees for 2021, and legal fees and incremental costs to transformation our information technology infrastructure and data security for 2020), fair value adjustment of equity investments, foreign currency impact of certain intercompany loans, acquisition-related costs other than acquisition amortization, income tax effect of stock awards recognized upon vesting or settlement, Argentina highly inflationary foreign currency adjustment and income tax effects of Q1 2020 gain on fair market value adjustment of equity investment. All adjustments are net of tax, with a reconciling item with the aggregated tax impact of the adjustments. This earnings release also presents adjusted EBITDA and adjusted EBITDA margin which is defined as consolidated net income attributable to Equifax plus net interest expense, income taxes, depreciation and amortization, and also excludes certain one-time items. These are important financial measures for Equifax but are not financial measures as defined by GAAP.
These non-GAAP financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as an alternative measure of net income or EPS as determined in accordance with GAAP.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures and related notes are presented in the Q&A. This information can also be found under “Investor Relations/Financial Information/Non-GAAP Financial Measures” on our website at www.equifax.com.
Source: Equifax Earnings Release
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