TransUnion Q3 2022 Revenues Up 26%

Highlights

Grew total revenues by 26 percent (5 percent organic constant currency revenue growth excluding mortgage), driven by strength in International and U.S. Financial Services.
Delivered strong progress on acquisitions integration, with stronger-than-expected revenue growth and synergy realization as well as a growing sales pipeline.
Now expecting 2022 organic revenue growth excluding mortgage to be approximately 7 percent with strong performance in our B2B businesses; adjusting guidance to reflect greater foreign currency headwinds as well as expected moderating growth in our U.S. Markets business in the fourth quarter.

Third Quarter 2022 Results

Revenue:

Total revenue for the quarter was $938 million, an increase of 26 percent (29 percent on a constant currency basis and 1 percent on an organic constant currency basis), compared with the third quarter of 2021.

Earnings:

Net income attributable to TransUnion was $79 million for the quarter, compared with $114 million for the third quarter of 2021. Diluted earnings per share was $0.41, compared with $0.59 in the third quarter of 2021. Net income attributable to TransUnion margin was 8.4 percent, compared with 15.4 percent in the third quarter of 2021.
Adjusted Net Income was $180 million for the quarter, compared with $176 million for the third quarter of 2021. Adjusted Diluted Earnings per Share for the quarter was $0.93, compared with $0.91 in the third quarter of 2021.
Adjusted EBITDA was $341 million for the quarter, an increase of 13 percent (15 percent on a constant currency basis, a decrease of 4 percent on an organic constant currency basis) compared with the third quarter of 2021. Adjusted EBITDA margin was 36.3 percent, compared with 40.6 percent in the third quarter of 2021.

“TransUnion delivered another solid quarter against a slowing macroeconomic backdrop,” said Chris Cartwright, President and CEO. “Our portfolio transformation continues to pay dividends, as we drove market-leading organic growth in our U.S. Financials Services business, revenue and bookings outperformance in our recent acquisitions, and robust results internationally led by India, Asia Pacific, Latin America and Africa.”

“We continue to expect a healthy 2022 with approximately 7 percent organic revenue growth excluding mortgage, but are adjusting our outlook to reflect greater foreign exchange headwinds as well as moderated growth expectations in the fourth quarter. In U.S. mortgage, we continue to anticipate 30 to 35 percent revenue declines due to expected 40 to 45 percent inquiry declines. We also expect to deliver strong earnings growth, driven by acquisition synergies and cost discipline.”

“While macro uncertainty is leading to some caution in the markets we serve, our customers and the consumer remain healthy. We are better positioned than ever to partner with our customers, delivering best-in-class solutions to navigate this dynamic environment. We continue to believe in our ability to achieve the 2025 long-term financial targets laid out at our March 2022 Investor Day.”

Third Quarter 2022 Segment Results

U.S. Markets:

U.S. Markets revenue was $621 million, an increase of 38 percent (a decrease of 2 percent on an organic basis) compared with the third quarter of 2021.

Financial Services revenue, which includes Argus Information and Advisory Services, Inc. and Commerce Signals, Inc. (collectively “Argus”), was $291 million, an increase of 5 percent (a decrease of 4 percent on an organic basis) compared with the third quarter of 2021.
Emerging Verticals revenue, which includes Neustar, Inc. (“Neustar”), Insurance and all other verticals, was $330 million, an increase of 91 percent (1 percent on an organic basis) compared with the third quarter of 2021.

Adjusted EBITDA was $218 million, an increase of 18 percent (a decrease of 9 percent on an organic basis) compared with the third quarter of 2021.

International:

International revenue was $189 million, an increase of 6 percent (16 percent on a constant currency basis) compared with the third quarter of 2021.

Canada revenue was $32 million, an increase of 6 percent (10 percent on a constant currency basis) compared with the third quarter of 2021.
Latin America revenue was $29 million, an increase of 7 percent (13 percent on a constant currency basis) compared with the third quarter of 2021.
United Kingdom revenue was $49 million, a decrease of 11 percent (an increase of 4 percent on a constant currency basis) compared with the third quarter of 2021.
Africa revenue was $16 million, an increase of 3 percent (18 percent on a constant currency basis) compared with the third quarter of 2021.
India revenue was $44 million, an increase of 29 percent (39 percent on a constant currency basis) compared with the third quarter of 2021.
Asia Pacific revenue was $20 million, an increase of 20 percent (24 percent on a constant currency basis) compared with the third quarter of 2021.

Adjusted EBITDA was $84 million, an increase of 8 percent (18 percent on a constant currency basis) compared with the third quarter of 2021.

Consumer Interactive:

Consumer Interactive revenue, which includes Sontiq, Inc. (“Sontiq”), was $147 million, an increase of 9 percent (a decrease of 9 percent on an organic basis) compared with the third quarter of 2021.

Adjusted EBITDA was $73 million, an increase of 5 percent (a decrease of 6 percent on an organic basis) compared with the third quarter of 2021.