TransUnion Announces Strong Second Quarter 2022 Results

  • Delivered 30 percent total revenue growth, and 9 percent organic constant currency revenue growth excluding mortgage, driven by continued strength in International and U.S. Markets.
  • Met earnings expectations due to proactive cost management and acquisition synergy initiatives.
  • Built further momentum with recent acquisitions by growing our sales pipeline and realizing ahead-of-schedule cost reductions.
  • Now expecting 2022 organic revenue growth excluding mortgage to be 9 to 10 percent with strong performance in our B2B businesses; adjusting guidance to reflect greater foreign currency and mortgage headwinds as well as moderation in growth expectations for our U.S. businesses.

Second Quarter 2022 Results

Total revenue for the quarter was $948 million an increase of 30 percent (32 percent on a constant currency basis and 5 percent on an organic constant currency basis), compared with the second quarter of 2021.

  • Net income attributable to TransUnion was $96 million for the quarter, compared with $128 million for the second quarter of 2021. Diluted earnings per share was $0.49, compared with $0.66 in the second quarter of 2021. Net income attributable to TransUnion margin was 10.1%, compared with 17.5% in the second quarter of 2021.
  • Adjusted Net Income was $190 million for the quarter, compared with $170 million for the second quarter of 2021. Adjusted Diluted Earnings per Share for the quarter was $0.98, compared with $0.88 in the second quarter of 2021.
  • Adjusted EBITDA was $350 million for the quarter, an increase of 19 percent (20 percent on a constant currency basis, 4 percent on an organic constant currency basis) compared with the second quarter of 2021. Adjusted EBITDA margin was 36.9 percent, compared with 40.6 percent in the second quarter of 2021.

“TransUnion delivered another solid quarter,” said Chris Cartwright, President and CEO. “We continued to drive market-leading organic growth in key verticals such as Financial Services, Insurance, Public Sector and Media; and robust results internationally led by India, Asia Pacific, Latin America and Africa.”

“We continue to expect a strong year with 9 to 10 percent organic growth excluding mortgage despite adjusting our 2022 outlook to account for greater foreign exchange and mortgage headwinds as well as modestly lower growth in certain parts of our business. In U.S. mortgage, we anticipate 30 to 35 percent revenue declines due to 40 to 45 percent inquiry declines. We expect to deliver strong earnings growth.”

“Additionally, we achieved key milestones in integrating our recent strategic acquisitions. We are increasingly enthusiastic about the power of our combined capabilities and go-to-market strategy to deliver significant value to customers. Our portfolio transformation over the last decade positions us better than ever to deliver relative outperformance in all environments.”

Second Quarter 2022 Segment Results

U.S. Markets:

On April 8, 2022, we completed our acquisition of Verisk Financial Services (“VF”), the financial services business unit of Verisk Analytics, Inc., including its leading core businesses Argus Information and Advisory Services, Inc. and Commerce Signals, Inc. (collectively “Argus”). Our second quarter and year-to-date 2022 results include Argus within the Financial Services vertical of our U.S. Markets segment. The non-core businesses from the acquisition were classified as held for sale and are presented as discontinued operations, net of tax, for the three and six months ended June 30, 2022.

U.S. Markets revenue was $633 million, an increase of 44 percent (5 percent on an organic basis) compared with the second quarter of 2021.

  • Financial Services revenue, which includes Argus, was $301 million, an increase of 11 percent (3 percent on an organic basis) compared with the second quarter of 2021.
  • Emerging Verticals revenue, which includes Neustar, Inc. (“Neustar”), Insurance and all other verticals, was $332 million, an increase of 98 percent (8 percent on an organic basis) compared with the second quarter of 2021.

Adjusted EBITDA was $234 million, an increase of 25 percent (3 percent on an organic basis) compared with the second quarter of 2021.

International:

International revenue was $187 million, an increase of 8 percent (15 percent on a constant currency basis) compared with the second quarter of 2021.

  • Canada revenue was $33 million, a decrease of 3 percent (an increase of 1 percent on a constant currency basis) compared with the second quarter of 2021.
  • Latin America revenue was $29 million, an increase of 13 percent (14 percent on a constant currency basis) compared with the second quarter of 2021.
  • United Kingdom revenue was $50 million, a decrease of 7 percent (an increase of 3 percent on a constant currency basis) compared with the second quarter of 2021.
  • Africa revenue was $16 million, an increase of 3 percent (12 percent on a constant currency basis) compared with the second quarter of 2021.
  • India revenue was $40 million, an increase of 44 percent (51 percent on a constant currency basis) compared with the second quarter of 2021.
  • Asia Pacific revenue was $19 million, an increase of 19 percent (22 percent on a constant currency basis) compared with the second quarter of 2021.

Adjusted EBITDA was $81 million, an increase of 12 percent (19 percent on a constant currency basis) compared with the second quarter of 2021.

Consumer Interactive:

Consumer Interactive revenue, which includes Sontiq, Inc. (“Sontiq”), was $147 million, an increase of 8 percent (a decrease of 9 percent on an organic basis) compared with the second quarter of 2021.

Adjusted EBITDA was $68 million, an increase of 5 percent (a decrease of 6 percent on an organic basis) compared with the second quarter of 2021.

Source:  TransUnion Earnings Release