TransUnion Q3 2020 Revenue Up 2% (constant currency basis)

TransUnion achieved third quarter 2020 results in line with its Upside Case as provided in its scenario-based outlook.
Business performance continues to benefit from re-openings, government stimulus and our successful proactive efforts to support our associates, customers and consumers during the pandemic.
TransUnion are reinstating our guidance, and based on the fourth quarter 2020 guidance, we expect to deliver modest revenue growth for the full year 2020.

Third Quarter 2020 Results Revenue:

Total revenue for the quarter was $696 million, an increase of 1 percent (2 percent on a constant currency basis, 1 percent on an organic constant currency basis) compared with the third quarter of 2019. Earnings:
Net income attributable to TransUnion was $103 million for the quarter, compared with $92 million for the third quarter of 2019. Diluted earnings per share was $0.53, compared with $0.48 for the third quarter of 2019.
Adjusted Net Income was $156 million for the quarter, compared with $146 million for the third quarter of 2019. Adjusted Diluted Earnings per Share for the quarter was $0.81, compared with $0.76 for the third quarter of 2019.
Adjusted EBITDA was $270 million for the quarter, a decrease of 4 percent (3 percent on a constant currency basis, 3 percent on an organic constant currency basis) compared with the third quarter of 2019. Adjusted EBITDA margin was 38.8 percent, compared with 40.7 percent for the third quarter of 2019.

“TransUnion delivered a good quarter, achieving our Upside Case Outlook Scenario, including modest revenue growth at an attractive Adjusted EBITDA margin,” said Chris Cartwright, President and CEO. “We remain acutely focused on the welfare of our associates and communities while also providing outstanding service and solutions for our customers around the world.”

“We continue to invest in Global Operations, Global Solutions and Project Rise to drive further growth and efficiencies in our business. At the same time, we recently made strategic moves to build out our Media vertical through the acquisitions of Signal in the third quarter and Tru Optik early in the fourth quarter.”

“We also maintained a strong balance sheet position with $554 million of cash on hand at the end of the quarter, ensuring that we are well situated to fully operate our business in the current highly fluid macro environment while enabling our ongoing investment strategy,” Cartwright concluded.

2020 Full Year Outlook: GAAP Outlook: For 2020, revenue is expected to be between $2.696 billion and $2.715 billion, an increase of 2 percent compared with 2019. Net income attributable to TransUnion is expected to be between $321 million and $333 million, a decrease of 4 to 8 percent. Diluted earnings per share is expected to be between $1.67 and $1.73, a decrease of 4 to 8 percent.