TransUnion Q4 2021 Revenue Up 21%, Full Year Up 17%

TransUnion Announces Strong Fourth Quarter 2021 Results and Continues to Strengthen its Portfolio by Adding Capabilities in High-Growth Markets

Delivered another strong quarter driven by successful execution of our diversified growth initiatives in attractive, resilient markets. Enhancing TransUnion’s portfolio with new capabilities in high-growth credit, fraud, marketing and identity protection markets, supporting our ability to deliver long-term attractive growth.

Building on the completed acquisitions of Neustar and Sontiq as well as the divestiture of our Healthcare business, announced our intent to acquire Verisk Financial Services, including Argus, a provider of consumer spending behavior data and analytics; the transaction is expected to close in the second quarter.
Extinguished $640 million of debt related to our acquisition of Sontiq during the fourth quarter and prepaid $400 million of debt in the first quarter of 2022.
Providing 2022 financial guidance, we expect to deliver 11% – 12% organic revenue growth excluding U.S. mortgage impact in the first quarter and 9% – 11% for the full year.

TransUnion (NYSE: TRU) (the “Company”) has announced financial results for the quarter and year ended December 31, 2021.

Our fourth quarter and full year 2021 results include Neustar within the Emerging Verticals of our U.S. Markets segment, and Sontiq within our Consumer Interactive segment, each since the date of acquisition. Our Healthcare business is now reflected as discontinued operations, net of tax, for all periods presented. For additional details, refer to “Recently Completed Transactions” and “2021 Quarterly and Full Year Financial Information Excluding the Impact of Discontinued Operations” below.

Fourth Quarter 2021 Results

Total revenue for the quarter, was $790 million, an increase of 21 percent (21 percent on a constant currency basis, 12 percent on an organic constant currency basis) compared with the fourth quarter of 2020.

Adjusted EBITDA was $282 million for the quarter, an increase of 14 percent (14 percent on a constant currency basis, 11 percent on an organic constant currency basis) compared with the fourth quarter of 2020. Adjusted EBITDA margin was 35.8 percent, compared with 37.9 percent in the fourth quarter of 2020.

“TransUnion delivered another strong quarter and full year as our strategy continues to deliver broad, innovation-led growth against a healthy market backdrop,” said Chris Cartwright, President and CEO. “Today, we are pleased to announce our intent to acquire Verisk Financial Services, including Argus, a provider of proprietary portfolio performance insights sourced from a consortium of financial institutions. Combined with the acquisitions of Neustar and Sontiq, we continue to strengthen our portfolio by adding to our capabilities in high-growth markets like credit risk, fraud mitigation, marketing and identity protection.”

“As part of this portfolio transformation, we also completed the sale of our Healthcare business in December 2021, and a portion of the proceeds were used to extinguish the debt associated with the purchase of Sontiq in December, as well as to prepay $400 million of debt in January 2022.”

“We expect another good year in 2022, as market conditions remain favorable and we benefit from our significant investments in Global Solutions, Operations and Technology as well as the transformative impact of our recent acquisitions.”

Full Year 2021 Results

Total revenue for the year was $2,960 million, an increase of 17 percent (16 percent on a constant currency basis, 13 percent on an organic constant currency basis) compared with 2020.

Adjusted EBITDA was $1,157 million for the year, an increase of 21 percent (20 percent on a constant currency basis, 20 percent on an organic constant currency basis) compared with 2020. Adjusted EBITDA margin was 39.1 percent, compared with 37.7 percent in 2020.

Recently Announced Transaction

Verisk Financial Services Acquisition

On February 22, 2022, we announced our agreement to acquire Verisk Financial Services, including Argus Information and Advisory Services, Inc., for $515 million in cash, subject to certain customary purchase price adjustments. We intend to fund the acquisition through cash on hand. We expect the acquisition to close in the second quarter of 2022, subject to the satisfaction of customary closing conditions and regulatory approvals. For additional information on this acquisition, refer to our Press Release dated February 22, 2022, which is available on our Investor Relations website at https://newsroom.transunion.com/.

Recently Completed Transactions

On December 1, 2021, the Company completed its previously announced acquisition of Neustar. At the closing of the acquisition, the Company paid total consideration of $3.1 billion in cash, subject to certain customary purchase price adjustments. The results of operations of Neustar are included in the Emerging Verticals of our U.S. Markets segment and in our consolidated statements of income since the date of the acquisition. For additional information on our acquisition of Neustar, refer to our Press Release dated December 1, 2021, which is available on our website at https://newsroom.transunion.com/.

Sontiq Acquisition

On December 1, 2021, the Company completed its previously announced acquisition of Sontiq. At the closing of the acquisition, the Company paid total consideration of $638 million in cash, subject to certain customary purchase price adjustments. The results of operations of Sontiq are included in the Consumer Interactive segment and our consolidated statements of income since the date of the acquisition. For additional information on our acquisition of Sontiq, refer to our Press Release dated December 1, 2021 which is available on our website at https://newsroom.transunion.com/.

Healthcare Business Sale

On December 17, 2021, the Company completed its previously announced divestiture of its Healthcare business, for a total of $1.7 billion, subject to certain customary purchase price adjustments. The results of the Healthcare business are reflected as discontinued operations, net of tax, in our consolidated financial statements and historical periods have been recast to conform to current period presentation. The after-tax net proceeds were approximately $1.4 billion, pending the final net working capital adjustment. Discontinued operations, net of tax, for the fourth quarter and full year 2021 includes a gain on disposal of the Healthcare business of $982 million, net of tax. For additional information about the divestiture of our Healthcare business, refer to our Press Release dated December 17, 2021, which is available on our website at https://newsroom.transunion.com/.