Equifax delivered its third consecutive quarter of strong, double digit growth and margin expansion while generating over $1 billion of quarterly revenue for the first time.  Notwithstanding COVID-19 Impact the results are spectacular.

Financial Results Summary:  The company reported revenue of $1,068.3 million in the third quarter of 2020, up 22% compared to the third quarter of 2019 on a reported and local currency basis. Net income attributable to Equifax of $224.2 million was up 177% in the third quarter of 2020 compared to net income attributable to Equifax of $81.1 million in the third quarter of 2019. Third quarter diluted EPS attributable to Equifax was $1.82, up compared to $0.66 in the third quarter of 2019.

USIS third quarter results:  Total revenue was up 22 percent at $386.3 million in the third quarter of 2020, compared to $315.5 million in the third quarter of 2019. Total revenue was up 15 percent compared to adjusted revenue of $335.5 million in the third quarter of  2019, which excludes a one-time charge to revenue related to settlements with commercial customers. Operating margin for USIS was 33.3 percent in the third quarter of 2020 compared to 31.1 percent in the third quarter of 2019. Adjusted EBITDA margin for USIS was 46.0 percent in the third quarter of 2020 compared to 44.4 percent in the third quarter of 2019.

  • Online Information Solutions revenue was $284.7 million, up 22 percent on a reported basis and 15 percent on an adjusted basis, when compared to the third quarter of 2019.
  • Mortgage Solutions revenue was $55.4 million, up 51 percent compared to the third quarter of 2019.
  • Financial Marketing Services revenue was $46.2 million, up 1 percent on a reported basis and down 9 percent on an adjusted basis, when compared to the third quarter of 2019.

Workforce Solutions third quarter results: Total revenue was $376.8 million in the third quarter of 2020, a 57 percent increase compared to the third quarter of 2019. Operating margin for Workforce Solutions was 51.3 percent in the third quarter of 2020 compared to 41.4 percent in the third quarter of 2019. Adjusted EBITDA margin for Workforce Solutions was 57.8 percent in the third quarter of 2020 compared to 48.8 percent in the third quarter of 2019.

  • Verification Services revenue was $301.1 million, up 63 percent compared to the third quarter of 2019.
  • Employer Services revenue was $75.7 million, up 37 percent compared to the third quarter of 2019.

International third quarter results: Total revenue was $218.0 million in the third quarter of 2020, down 5 percent compared to the third quarter of 2019 on a reported and local currency basis. Operating margin for International was 11.6 percent in the third quarter of 2020, compared to 11.3 percent in the third quarter of 2019. Adjusted EBITDA margin for International was 32.3 percent in the third quarter of 2020, compared to 30.9 percent in the third quarter of 2019

  • Asia Pacific revenue was $80.2 million, up 4 percent compared to the third quarter of 2019 and flat on a local currency basis.
  • Europe revenue was $58.7 million, down 9 percent compared to the third quarter of 2019 and down 13 percent on a local currency basis.
  • Latin America revenue was $40.4 million, down 18 percent compared to the third quarter of 2019 and down 6 percent on a local currency basis.
  • Canada revenue was $38.7 million, down 1 percent compared to the third quarter of 2019 and flat on a local currency basis.

Global Consumer Solutions third quarter results: Total revenue was $87.2 million in the third quarter of 2020, down 2 percent compared to the third quarter of 2019 on a reported and local currency basis. Operating margin was 14.4 percent in the third quarter of 2020 compared to 13.4 percent in the third quarter of 2019. Adjusted EBITDA margin was 24.8 percent compared to 24.9 percent in the third quarter of 2019.

Source: Equifax Earnings Report