TransUnion Q1 2023 Revenue Up 2%

Exceeded first quarter 2023 financial guidance
Grew revenues by 2 percent driven by strength in International
Drove meaningful progress in Neustar integration, including strong cross-sell wins and data integration milestones
Prepaid $75 million in debt in the quarter and intend to make further prepayments in the second quarter and throughout the year
Maintaining 2023 full-year guidance to account for continued market uncertainty

TransUnion (NYSE: TRU) (the “Company”) has announced financial results for the quarter ended March 31, 2023.

First Quarter 2023 Results

Revenue:

Total revenue for the quarter was $940 million, an increase of 2 percent (4 percent on a constant currency basis and 2 percent on an organic constant currency basis), compared with the first quarter of 2022.

Earnings:

Net income attributable to TransUnion was $53 million for the quarter, compared with $48 million for the first quarter of 2022. Diluted earnings per share was $0.27, compared with $0.25 in the first quarter of 2022. Net income attributable to TransUnion margin was 5.6 percent, compared with 5.2 percent in the first quarter of 2022.
Adjusted Net Income was $155 million for the quarter, compared with $179 million for the first quarter of 2022. Adjusted Diluted Earnings per Share was $0.80, compared with $0.93 in the first quarter of 2022.
Adjusted EBITDA was $322 million for the quarter, a decrease of 4 percent (1 percent on a constant currency basis, flat on an organic constant currency basis) compared with the first quarter of 2022. Adjusted EBITDA margin was 34.3 percent, compared with 36.3 percent in the first quarter of 2022.

“TransUnion exceeded first quarter financial guidance despite an uncertain economic backdrop,” said Chris Cartwright, President and CEO. “Our broad solution suite is resonating with the market, including with our financial services customers as they navigate a dynamic environment. Our International portfolio continues to deliver robust results, particularly in India, Asia Pacific, Africa and Latin America.”

“Our Neustar integration continues to track well with building cross-sell momentum across our U.S. verticals. Our data integration is creating meaningful value across our product suite with improved breadth and depth of identity data.”

“We remain highly confident in our ability to navigate this complex economic backdrop, focusing on customer partnership, acquisition integration, transformation progress and financial discipline. We are maintaining our 2023 full-year guidance to account for continued market challenges.”

First Quarter 2023 Segment Results

U.S. Markets: Revenue was $620 million, an increase of 3 percent (less than 1 percent on an organic basis) compared with the first quarter of 2022.

Financial Services revenue, which includes Argus Information and Advisory Services, Inc. and Commerce Signals, Inc. (collectively “Argus”), was $321 million, an increase of 5 percent (a decrease of 1 percent on an organic basis) compared with the first quarter of 2022.
Emerging Verticals revenue was $300 million, an increase of 1 percent compared with the first quarter of 2022.

Adjusted EBITDA was $200 million, a decrease of 8 percent (6 percent on an organic basis) compared with the first quarter of 2022.

International: Revenue was $197 million, an increase of 3 percent (12 percent on a constant currency basis) compared with the first quarter of 2022.

Canada revenue was $31 million, an increase of 2 percent (9 percent on a constant currency basis) compared with the first quarter of 2022.
Latin America revenue was $29 million, an increase of 5 percent (11 percent on a constant currency basis) compared with the first quarter of 2022.
United Kingdom revenue was $47 million, a decrease of 16 percent (8 percent on a constant currency basis) compared with the first quarter of 2022.
Africa revenue was $15 million, a decrease of 1 percent (an increase of 14 percent on a constant currency basis) compared with the first quarter of 2022.
India revenue was $55 million, an increase of 21 percent (32 percent on a constant currency basis) compared with the first quarter of 2022.
Asia Pacific revenue was $21 million, an increase of 23 percent (25 percent on a constant currency basis) compared with the first quarter of 2022.

Adjusted EBITDA was $86 million, an increase of 5 percent (14 percent on a constant currency basis) compared with the first quarter of 2022.

Consumer Interactive: Revenue was $142 million, a decrease of 5 percent compared with the first quarter of 2022.
Adjusted EBITDA was $70 million, an increase of 2 percent compared with the first quarter of 2022.