Third Quarter 2023 Results

  • TransUnion grew revenues by 3 percent, driven by strength in International and Neustar; navigated increasing end-market softness in U.S. Markets and the United Kingdom throughout the quarter
  • Prepaid $75 million in debt in the quarter and anticipate making additional prepayments in the fourth quarter
  • Revising 2023 full-year guidance to account for moderating growth expectations; expecting 2 to 3 percent revenue growth, led by International

Revenue:  Total revenue for the quarter was $969 million, an increase of 3 percent (3 percent on a constant currency basis), compared with the third quarter of 2022.

Earnings:

  • Net income (loss) attributable to TransUnion was $(400) million for the quarter, compared with $79 million for the third quarter of 2022. Diluted earnings (loss) per share was $(2.06), compared with $0.40 in the third quarter of 2022. Net income (loss) attributable to TransUnion margin was (41.3) percent, compared with 8.4 percent in the third quarter of 2022. Our third quarter 2023 net income (loss) attributable to TransUnion, diluted loss per share and net income (loss) attributable to TransUnion margin were impacted by a $495 million non-cash goodwill impairment expense for our United Kingdom reporting unit, as described in “U.K. Goodwill Impairment” below.
  • Adjusted Net Income was $177 million for the quarter, compared with $180 million for the third quarter of 2022. Adjusted Diluted Earnings per Share was $0.91, compared with $0.93 in the third quarter of 2022.
  • Adjusted EBITDA was $356 million for the quarter, an increase of 5 percent (4 percent on a constant currency basis), compared with the third quarter of 2022. Adjusted EBITDA margin was 36.8 percent, compared with 36.3 percent in the third quarter of 2022

“TransUnion executed well against weakening lending and marketing activity over the course of the quarter,” said Chris Cartwright, President and CEO. “Despite these headwinds, U.S. Markets continued to grow, highlighted by high-single digit growth at Neustar. Our International segment again grew double-digits, led by India, Canada and Asia Pacific.”

“We are revising our 2023 full-year guidance to account for slowing volumes in the U.S. and United Kingdom. We expect to deliver a good fourth quarter due to strong bookings and our vertical, product and geographic diversification.”

“We remain focused on delivering innovative solutions to help our customers navigate uncertain market conditions. Additionally, we are proactively managing our cost structure while continuing to invest for long-term revenue growth. Finally, we prepaid $75 million of debt in the quarter for a year-to-date total of $225 million.”

Source:  TransUnion Earnings Release

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