Total revenue was $406 million, an increase of 15 percent (18 percent on a constant currency basis) compared with the first quarter of 2015. Acquisitions accounted for a 1 percent increase in revenue. Net income attributable to TransUnion was $13 million compared with a net loss attributable to TransUnion of $7 million in the first quarter of 2015. Diluted earnings per share were $0.07 compared with $(0.04) in the first quarter of 2015.
Adjusted EBITDA was $141 million, an increase of 23 percent (26 percent on a constant currency basis) compared with the first quarter of 2015. Adjusted Net Income was $58 million, an increase of 96 percent compared with the first quarter of 2015. Adjusted Diluted Earnings per Share were $0.32 compared with $0.20 in the first quarter of 2015.
“TransUnion is off to a strong start in 2016, delivering another quarter of double-digit revenue and Adjusted EBITDA growth with over 200 basis points of margin expansion,” said Jim Peck, TransUnion’s president and chief executive officer. “All three segments exceeded expectations by executing on our strategy, which is generating broad based and balanced growth from our core business, new product growth initiatives, and from our higher growth verticals and markets. This robust performance enabled us to raise our full year guidance for revenue, Adjusted EBITDA and Adjusted EPS. Our pipeline of innovation is focused on driving value for our customers and positions us well for long-term growth.”
Wall Street applauded with Zacks commenting: TU scored a third successive beat with its first-quarter 2016 adjusted earnings (including stock-based compensation) of 30 cents per share, surpassing the Zacks Consensus Estimate of 25 cents by a remarkable 20%. Robust top line growth, coupled with productivity improvement initiatives, drove the company’s profits.
The company’s shares rose 1.6% in after-hours trading, as it delivered stronger-than-expected first quarter results and raised its 2016 guidance as well. Zacks expects TransUnion’s solid growth momentum to accelerate in the near future, as it continues to leverage new product growth initiatives, key strategic investments and productivity initiatives. The company stands to benefit from offerings and growth initiatives like CreditVision and digital marketing, as well as newer initiatives, like Prama.
Source: TransUion Earnings Release